Posted by Rich-CA on August 04, 2007 at 10:02:03:
I agree completely. I am a buy and hold investor and found that on my side of the market the correlary to easy money was lower rents and longer vacancies. Now that the money and housing markets are correcting themselves - with people who had no business getting a loan getting foreclosed - the rents are rising and the vacancies are falling.
Being from CA and investing in other states, the term “California Investor” that I heard was one of more money than brains. That will now correct itself.
Investment by definition requires a plan and a goal. The “prices always go up” crowd, now for some reason silent on the boards, were and are speculators. And many lost the roll of the dice. A lot of people I know who got into “investing in RE” were refugees of dot com busts and stock market corrections. No plan at all, just the gleam in the eye for fast dollars.