Economics of Realestate - Posted by Leon Blocksom

Posted by Matthew Chan on April 27, 1999 at 01:32:31:

While I am not yet an expert, I have heard many people who succeeded say the best time to buy is when the market and economy is at its worst. Because inevitably things will turn for the better. At that point, the people who bought at dirt, cheap prices become wealthier.

Having learned this concept, I am willing to take a chance and “live on the edge” and hope the economy slows and the stock & RE markets crash. That way I can get in on ground floor while the masses panic & flee the market. :wink: Isn’t that terrible of me to wish a bad economy? :slight_smile:

With my limited wisdom, I would say that now is a good time to position yourself when that time comes. Start saving up, get those expenses down, and eliminate consumer/credit card debt.

Economics of Realestate - Posted by Leon Blocksom

Posted by Leon Blocksom on April 27, 1999 at 24:49:13:

Hello and thank you for reading my question. I sold realestate for a living if you could call it that years ago when I was too young to know what I was doing. I’m still only 35 but it seems like a long time. I am feeling the urge to go for it again but on the other side this time. I would like to invest this time. I know none of you have a crystal ball but maybe you can tell me about the past as history will probably repeat itself.

The baby boomers are coming of age, we seem to be headed towards a period of deflation or stagflation, interest rates are low, the economy has been great for years. Is this a good time to invest in rental properties (maybe 10) that would be held for probably ten years. I would like to get some positive cash flow and invest it. I would also like to buy some fixers and eventually do this full time.

Before I do anything though I would like to know if you think this is a wise decision. I have the desire and ability but is the timing right? How does the economy effect realestate investors? How has it effected you? What are the good times and what are the bad times. I’m just looking for some Realestate Econ 101. Thanks and hope you have a nice day.

Re: Economics of Realestate - Posted by Bud Branstetter

Posted by Bud Branstetter on April 27, 1999 at 10:37:12:

I am not a advocate of acquiring rental property until you have satisfied the monthly cash flow needs. A good return on income property is 15-16%. Any day you can beat that return by l/o, flips, rehabs, lonnie deals etc. What you may have to do is unlearn the old mentality and learn how to do the buying/selling “creatively.”

The timing is always right because there are always motivated sellers. There may be more in poor economic time and that is the time to become illiquid by buying what you can. With the affordability of mortgages for home buyers why isn’t this the time to get those renters to buy.