HELLO EVERYONE,
WITH TODAY’S ECONOMIC CRISIS IS THE REI BUSINESS STILL DOING GOOD. DOES ANYONE STILL RECOMMEND REI AS BEING A GOOD IDEA?
In my area, the demand for rentals is higher than anytime in the past 5 years! It’s a good time to be in the rental business. This is an unprecedented opportunity to buy property at a huge discount and many people will become rich because of the opportunities that exist right now. On the other hand, this is a period of unprecedented risk and you MUST buy at a huge discount and ensure that you have both equity and cash flow. Every deal needs to be a GREAT deal and it is important that you don’t over-extend yourself financially.
Mike
Buying at a huge discount is even more important during hard economic times. This would allow you to dramatically reduce the rent if you need to in order to make money. Many People are losing their jobs. In my area, many are “shacking up” with others to save money. There’s more demand for rentals than SFH’s but the amount of renters hasn’t jumped that much. I think when the economy improves, there will be more renters. People will be back to work but the lending standards should remain tight enough to keep EVERYONE AND ANYONE from buying a home… as it should be.
I don’t think this is a serious question. I also don’t appreciate the yelling. If you have to ask if right now is a good time to invest in RE, then you probably don’t have the intellect to maintain those properties to keep them turning a profit. I don’t mean that as an insult, but if you can’t sit down and analyze the pros and cons of owning RE right now, then I don’t think you’ll be able to properly analyze problems that you’re going to have when owning RE. Anyone can own RE, but it takes an entrepreneur to stay in business.
RE- Cris,I don’t necessarily think that the CAPS always mean yelling. I took it as just a question. Nothing more. But this site is comprised of people with various RE experience/ expertise. Some of the questions are not as obvious to some as they are to others. If these remedial questions bother you, perhaps you need to ignore them or develop a tougher skin. One of the great things about this site is that there are many people willing to share their expertise with those who need advice. So please be nice :biggrin
I understand what all caps represent, and it was more of an annoyance than me taking it as yelling. Also, I think I have a thick skin, but that’s my own opinion. I don’t believe in sugar coating a lot of things. If someone asks a question that warrants a somewhat crass reply, I’ll give it to them if I know they can benefit from it. Would you want this person buying up RE just because it was cheap, not knowing what they were getting into? Well, I know some wouldn’t mind because it’s these kinds of people that end up selling for pennies on the dollar because they didn’t know what they were getting into. I’m not trying to be rude, but blunt. I think if anything we need more people to be blunt, not nice, when the situation warrants it.
You were blunt but didn’t answer the question. You instead took the opprtunity to criticize the question and PUNKIN’s experience/expertise level. I don’t see how your response was helpful. It would be different if you bluntly made suggestions on how PUNKIN could increase his/her knowledge in this area. But you didn’t.
If you plan to be a hands on property manager and understand all that it entails then YES I feel now may be a good time to start…Keep in mind Mike’s words,you must buy at a deep discount and understand what the real overhead expenses are in the landlording business…Its not a big money business until you have a significant amount of units…