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BlogsMy Real Estate ExperienceFirst Post

Posted about 13 years ago

First Post

As a relatively new investor I think this blog will be a good tool to reflect on my experiences and share them with others. Perhaps I can facilitate discussion that engages anyone who wants to read it. 


I am grateful that my wife and I have had short term success - but now we can see the pitfalls that are out there too. I am eager to grow our rental base - and I see how that motivation can lead to shortsightedness. As capital becomes depleted the risk for over leveraging is heightened. However, the benefits are great if the investment pays off. The way I see it we are in the final stage of the "bottom" - if it hasn't passed us already. So my questions becomes - is it better to take a break and recapitalize (and buy in a higher priced market with less upside) or take a chance and hope it pays off (with less capital to support us)? 

Comments (5)

  1. Thanks Al. Patience is the name of the game - the catch 22 is that we are nearing the end of a once in a lifetime real estate market. However - common sense holds true. If we don't stick to the fundamentals and take the right steps to be successful then it doesn't matter how may opportunities are out there.

    Patrick Capriola, about 13 years ago


  2. Hey Patrick Capriola, Mr. Carey gave you some excellent advise to your wise question. I concur. Nothing like patience and building your capacity to find great deals. Once you have the knowledge to own a profitable portfolio, the money will follow. Thanks for sharing your journey.

    Al Williamson, about 13 years ago


  3. I'll add that you may actually find it easier to get better deals when you are not looking. When you are "looking " for a deal, there is an internal motivation or pressure to get a deal done. You sometimes bid a little higher becuase you don't want a good deal to slip by. When you are not actively looking you have no fear of putting in a truly silly offer becuase you don't care is you offend the seller and loose the deal - you weren't looking for a deal anyway. The best deals usually go to those that are willing to wait for only the best deals.

    Ned Carey, about 13 years ago


  4. Thanks for the response Ned. Your advice is right in line with what our accountant told us a couple of weeks ago (he is also a real estate investor). We are going to keep our eyes open and look for something that truly is a deal.

    Patrick Capriola, about 13 years ago


  5. I say take a break and recapitalize. However you don't need to take a total break from real estate. You can wholesale some deals to build cash. Wholesaling will force you to find great deals. This is a skill that will pay off when you are ready to add to the rental portfolio. Another option is creative and better deals. If you can find a true home run deal it may not strain your reserves as much as you expect. Alternatively you may find something with owner financing or find a financial partner that allows you to get into another deal without much cash contributed from you. Good luck- Ned

    Ned Carey, about 13 years ago