Ok, I’d really like your opinion on this one. I’m doing a short study for my Investor List and I would like your opinion in regards to this $700 billion dollar bailout plan. As the market worsens, more and more investors are giving up on real estate investing and looking for alternative solutions to making/saving money. This was true even before this Wall Street/AIG/WAMU crisis came about.
So now, I’m wondering if more will give up Real Estate Investing because of the current/“forseeable” condition of the market, given the new issues that have occured. (Wall Street/AIG/WAMU, etc…)
If you will give up on Real Estate Investing…Then Why?
If you won’t give up on Real Estate Investing…Then Why Not?
Please answer freely, as I’m sure this will be very interesting to see the reaction of those currently investing in real estate and even those who are just getting started.
I myself will continue to invest in real esate because there are too many strategies and creative approaches you can take, even in this market!
But the true reason for this topic is…What Do You Think?
We live in the midwest. Most of the banks in my small town are family owned. Nothing much is changing. Houses are being bought. Houses are being sold. Good adj. rate loans w/caps are easy to get with good rates–they are just kept “in house”.
We just won’t buy and “flip”. . .we think long term. right or wrong–I don’t know. works for us. Half of our properties are now paid off. Small loans on most of the others.
Does what is happening bother me? sure. . .more for the small businesses in our area. Their unsecured lines of credit with out-of-area suppliers are drying up. . . it’s going to trickle down and affect the job market and then affect vacancies and then affect my bottom line. . .
Personally, I’m salivating here! I want badly to get involved in the real estate game now, and I’m taking steps to do so. I was always told to look for disaster areas. That’s where you will make your money. Right now, the disaster area is the whole country. People are selling for very cheap. There are a lot of foreclosures, and even more motivated sellers! So, as crazy as it may sound to others, but why not take advantage of this situation. The main strategy in business is to buy low and sell high. Selling high won’t happen right away, however, buying low is certainly very possible. America will bounce back. We always have. This is why history is very important. It shows us that this is not a disaster but an opportunity. The glass is more than full for real estate investors right now. I imagine that for some, their cup runneth over!
One way or the other we are all always invested in one market or another, You can own cash…At which point you are in the business of hoping that your cash will hold value, you can own stocks, or bonds, or have your money in an IRA, or in a 401k, precious metals, etc…
At the end of the day, if you want to own assets which are truly tangible, and will always have real value you should own real estate. Not only do you own a home, but you own the land that the house sits on…Think about that…If the economic system collapses I willl take land, over metal or paper any day…