All Forum Posts by: Luke Williams

In my opinion, I would say that having a real estate (agent/broker) license is the equivalent to a series 7 for RE. You are held to a higher standard and can actually be held liable for giving advice to a client on what to do. Having said that, I don't necessarily disagree with your advice. I follow Raging Bull stock service/newsletter and they short the IWM all the time and make buckets. I just don't think it gives much context for people. That's why I'm hesitant to give specific advice like that on a site like Bigger Pockets. If someone followed your advice and then the IWM went straight up for a month...your advice would be pretty bad. You're basically telling people to time the market, but you don't give any time frame. I guess that's the issue I saw. But it's cool, not trying to be negative or a jerk here. Everyone is entitled to his/her own opinion. Good chatting and happy investing!

-L

Interesting how many experts on Seattle there are here who don't live in Seattle, or other markets they are commenting on, for that matter. One of the issues that no one talks about is wages, which in South Lake Union (downtown Seattle) is currently supporting rents at $4,500+ for millennials who work at Amazon. Personally, I'd rather live on the water in Newport Beach for those prices. Here you have a tech economy, just like in San Francisco/Silicon Valley. It keeps prices high and the metro area is spreading out further and further. There are still deals (that cash flow) to be had in Pierce, Thurston, Mason, Cowlitz, and Clark Counties, but they aren't easily commutable to Seattle, at least not 40-60 hours per week. If you're a remote/virtual employee, then yes. That is how a lot of people here are making side incomes from real estate, in addition to their tech job. So, it really depends upon whether you're going to be a full time investor and/or if you have to work a corporate office job (in Seattle) on top of your investing.

Congrats! Keep it up and make sure you own your retirement and that your retirement doesn't own you. Thanks for sharing your story.

You must have a Series 7 or something to be issuing out that kind of investing advice. Be careful with that. Small caps trade violently both up and down. It could work, but your timing would be critically important with a trade like that, as you know. Pick the wrong day, week, month, year, and you're upside down in a hurry.

Some kind of error occurred and caused this to post 3X. Sorry about that.

:)

Here is something to think about...most predictors of the 2008 RE crash (Harry Dent, etc.) were calling for that many years prior to it actually happening. I think it's relatively easy to see that a price top is not too far off in the distance. The challenge is back in 2008, there were still people that believe real estate never goes down. I used to hear that all the time back then. People don't say that any more. Why does it matter? Because consumer sentiment is really what drives the residential (retail) market. It all comes down to monthly payment and affordability. What do rents cost in your area? Can I buy in your town cheaper than I can rent? Do I need to live in your town in order to earn my high-tech wage and maintain my lifestyle? I think a lot of investors believe that they control the price of the market. The price is set by what residential buyers are willing to pay, not investors. So as long as the interest rates keep prices affordable for the masses and rents are just as high or higher, people will opt to buy vs. rent. When that becomes untrue, then you'll see a price top and even a drop potentially. The difference with this next correction and the prior one is that people/investors with cash are ready and waiting for the next drop, so the bounce could happen quick. If you could sell me a $50K home after the crash in Phoenix that is worth $150K right now, I'd buy 4 of them with cash immediately. So would many other people. So I don't know how big of a drop we'll see when it does happen or how long it will last, but I believe those with cash will have some buying opportunities.

Yes, I second everything the posters above said. Additionally, I would personally also want to know how many investor deals the agent has personally done. It can be a bit different representing someone as an agent vs. representing yourself as an investor. If the agent has many investor clients, how do you know you're getting called on the best properties first? Just a thought. It would definitely cross my mind and be a concern. Happy investing!

-Luke