Rent or Cash Out?

As are losses in equities

 

I think someone should've told my neighbor.

 

All true.

But the most important fact about real estate and investing is you can use somebody else's money.

If you don't know what this means, and I've not got the time to explain it now, I'm writing a report, take a real estate class. It's the first answer to the first question in Real Estate 101.

 

If you're getting into real estate now you have to look hard to find something because of the already high real estate prices. It's harder to find something to cash flow. If you want to hold onto that piece of real estate for a long time and not "flip" it, as long as you break even you are doing well.

 

Tell him now. It's never too late to learn for next time.

 

Might I recommend putting a sign in his yard?

 

Tell that to all the doods I know doing it on a daily basis every day, making a killing. Of course you have to do a little homework, but if you have cash or can get some, there's deals to be made everywhere. It's all cyclical everywhere, you just have to be able to recognize where the cycle's at.

Also "flipping" is buying today, low, and selling it toworrow (or very very quickly), most notibly when you buy it, already having a buyer lined up at a higher price than you have to pay.

 

True, but I was in the lending business up til about a month ago. Every Tom Dick and Harry thinks they are going to make a mint in real estate. Only a few actually are smart enough to pull it off. Those people actually get their best properties from others that bought and couldn't manage it properly. It's always easy if you have a lot of money. Just like with most everything else.

The flipping part is what gets people in trouble. They purchase, and then don't realize what it takes to remodel, etc to get that extra cash when they sell. Plus, banks don't like to loan to "flippers" so that goes back to having the money to begin with. Some make money, but most get in over their heads.

 

True, very.

It does take money to make money. And if you got money, it's easier to get more. If you ain't got any, it's almost impossible, which is kinda ironic.

But, in Sads case, I think he'd be prudent to keep his paid-for 'investment', and use it for what its worth. But that's only my opinion and you get what you pay for.

 

I just talked to the lady and let her know we'd consider selling it as is for around tax value. She seemed pretty positive about it and we're going to meet next Sunday. They've got some special circumstances that make this particular place desireable. The lady who I talked to and her husband own the lot 2 lots down from mine and are about to build on it. Meanwhile, her son in law is getting moved back to the states from Iraq because one of their 2 kids had cancer and needs chemo, so they want to live close to the parents so they can help out. It would be nice for everyone involved if this works out somehow. Except the hot chick. She'd be fucked.