Comments on: Oh, Those Scary Unknowns in Real Estate Investing

By: Mike Farmer

Mike Farmer — Fri, 27 Jun 2008 22:24:48 +0000

Thanks for the comments, Colin and Jason

By: Jason

Jason — Fri, 27 Jun 2008 18:05:29 +0000

Investing in real estate is a dual edged sword right now. The economy is a bit shaky, but real estate prices are at an all-time low for the past 7 years. At least in the US, where there have been foreclosures galore.

I recently saw a feature about this on Larry King with Trump and a bunch of other panelists, all were pretty much saying that if you had cash or good credit…now is the time to buy.

Personally I’d rather invest passively in an REIT or Mortgage Investment Corporation. Less risky in my opinion.

By: colin

colin — Fri, 27 Jun 2008 17:50:12 +0000

Solid advice. Any investor knows that he risks losses but anticipates that he’ll have more wins overall.

By: Mike Farmer

Mike Farmer — Thu, 26 Jun 2008 20:44:52 +0000

Good advice, Marco.

By: Marco

Marco — Thu, 26 Jun 2008 17:44:07 +0000

So true, real estate can b e risky, the art and professional way to approach investing is to conduct as much due diligence as possible.

This should not only include the state of the market you are investing in and predictions for the future but also the industry in general, as well as the history of the property and if it’s a buy to let the tenants. Also if it is off plan property as a lot of investment property is nowadays you must look at the experience and history of the builder and property developer. I.e. have they completed successful real estate projects in the past on time and within budget?

In short, do as much research as possible and consult professional help from advisers other investors and of course legal advice. Never sign a contract to purchase with out knowing all the facts first.

By: Mike Farmer

Mike Farmer — Wed, 25 Jun 2008 17:25:44 +0000

Thanks redfish Mark — That’s funny about the cds being a risk — people just don’t know how to look at things sometimes.

By: Mike Farmer

Mike Farmer — Wed, 25 Jun 2008 12:53:54 +0000

Thanks Keirs and Pete.

yes, Peira, it pays to check when using a real estate company. Track records and results are important.

Pete, yes, focus can remove a lot of the anxiety, allowing the investor to make make better decsions.

By: Pete Doty

Pete Doty — Wed, 25 Jun 2008 12:36:16 +0000

The post is spot on.
I have found most investors when they walk in “just want to make money” and they do not realize that it can take any number of paths to get there. Speculating and holding. Fix and Flip. Purchase to Rent. Purchase to fix and rent increasing GRM. And How can we do this with an IRA or a 401k? I am sure there are others.
With all these possibilities, isn’t it hard to get folks to focus on a single objective instead of the multiple options available. If you can get them focused allot of their un-sureness disappears.

By: Keira Carter

Keira Carter — Wed, 25 Jun 2008 11:13:57 +0000

The word risk is what the investment other name is. You cannot avoid it that is the nature of investing. But there are lots of good real estate sources that you can rely on. Ofcourse you will not invest in a real estate company or agency without knowing first their background.