all you 20 somethings---TIME TO BUY!!!!!! 22 posts by 8 users

Posted: 07/24/2009 at 04:33PM

http://www.msnbc.msn.com/id/32051101/ns/business-real_estate/

This is courtesy of Marcus and Millichap. Good article. Three years ago, you there was a difference on the median price home to buy compared to renting the same median price home of $777 per month. In the last 3 years, the amount has dropped to $221. That is really significant. With the lower rates to buy and the higher rents to pay due to less inventory, it only makes sense to buy. Add in the tax benefits from owning and possible appreciation over time, and every young poster on here should try to do it. Read the article and get excited. Is there anyone on here tonight? BUY BUY BUY!!!! Rich.

Posted: 07/25/2009 at 06:20PM

Thanks for the article Rich .... so many people get caught up in all the doom & gloom in the media and miss golden opportunities right in front of them!

Posted: 07/26/2009 at 01:11AM

Valerie- Thanks for the vote and reply.

Ted- I just presented the article and agree with you about the doom and gloom.

Dan- I'm not sure you read the article. It is explaining how it is silly to rent when the difference between the monthly outgo is so small between renting and owning your own.
I titled the post "all you 20..... I was trying to communicate with thr folks that WERE renting currently. TIME TO BUY!!!
However, I'd also differ with you on investing now. Do you really have a problem finding renters in your area? There have been job losses everywhere, but that doesn't reduce the # of people that live there- unless they moved. In my previous area of s. TX, we were approaching 9% unemployed, yet the rental market is stronger than EVER. NO BUILDER is building, and that reduces overall inventory. Many families have been foreclosed on, and that creates more folks that HAVE to rent. Banks are holding the foreclosures and WON'T rent them. That also reduces inventory. It creates the perfect storm for rentals. My occupancy is near 100%.
I'm finding the same thing in FL where I now live. Amazing demand for rentals. Same situation. Simple econ 101. When demand is high and inventory is low, price (or rent in this case) goes up.
I haven't heard of areas where the rentals are hard to rent, unless you're talking Flint, MI type areas. I would expect every investor to do his homework on the area hes' buying in before jumping in. You seem to be trying to "time" the market on when to buy. That never seems to work well. BUY BUY BUY, I'll repeat.
You're correct on good deals available in all markets, and research is needed as well as holding capital. I just disagree with the doomsayers. They are always late to the party and will be this time also, imo. If you choose to wait to buy, so be it. I would continue to suggest the opposite. BUY BUY BUY. Rich

Posted: 07/26/2009 at 08:11AM

Hey Rich,

No, I didn't read the article... only replied to your post.

Again, I agree that now (or anytime) is a great time to buy when approached correctly. That's always been my philosophy.

My caution is addressed to those folks who are looking to build a SFH rental portfolio right now that might not have the capital or experience to cover the contengency factor.

About the builder issue... although res building is now virtually non-existent in most areas, a large number of those caught with inventories at the start of the downturn found themselves slashing prices in an attempt to sell.

In the large number of cases where that didn't work (due to many other sellers doing the same thing, etc) it resulted in a larger than usual number of rentals saturating the market. Sure, foreclosures add to that number... both with pros and cons.

As far as it being a matter of Simple Econ 101, I disagree.... there are a few other factors involved besides basic supply & demand. ;-)

Posted: 07/26/2009 at 05:40PM

Im 22 and just started in January with investing and now have 3 rentals. I also just purchased my first home which whenever I move out down the road will also turn into one of my rentals also...win win situation for me...

Posted: 07/27/2009 at 02:33AM

Eric,
With the need to buy your own home, now would be a great time, imo. Take your time, don't make an EMOTIONAL decision, and make lots of offers on all kinds of seller situations. You'll find a great deal and it will only make you want more. Good luck. Rich.

Posted: 07/28/2009 at 09:02AM

I can only tell you what i did, 2 years ago. I was in a not so great area and determined to move to So. Texas. I bought or built 63 homes and sold many of them. My goal was to make one million dollars from scratch in one year and then write another book. I was pretty close to on schedule and then the maximum 4 loans came out and I didn't make it. I had 8 deals in excrow, and lost 7 of them. If those would've closed I'd have made three quarters of a mil, but fell short of that.
2 weeks ago, I left So. Texas to move to swfl, to buy properties. So , I guess I would suggest either buying in a locale you like or re-locate to one you feel good about. That is what I've done 4 times in my career now and ALL have worked out well. Good luck. Rich.

Posted: 07/28/2009 at 01:48PM

Robert,
I'm always available. I prefer to chat thru BP, unless it is of a personal nature. That way, others can benefit from our conversation and also others can enter in, which always gives you differing viewpoints. Let er rip. Rich.

Posted: 07/30/2009 at 01:23PM

Robert- Come on down !! I'd love to help you and there are others in the area. PM me about my book. I don't sell it, only give it away for free. I think FL is great. Maybe we could do something together. I'll have some funds in next 60 days. Maybe HMLS or owner finance. Rich.

Posted: 07/30/2009 at 04:03PM

Rich - If your financing properties in Cape Coral and Ft Myers under market value, I am interested!

Chris