I am sooo confused !!! - Posted by Martin

Real Estate Investing
1

Posted by phil fernandez on April 20, 1999 at 04:40:41:

Martin,

Just my opinion but I’d stay away from the stock market. It’s awfully pricey right now and due for a major correction. If I had a chunk of money right now I’d search for some privately held mortgages in first position that I could buy at a steep discount. Or I’d use the money for a downpayment to buy a mobile home park.

2

I am sooo confused !!! - Posted by Martin

Posted by Martin on April 19, 1999 at 20:22:23:

help! Need advice.

Situation: I have 2 homes which are rented out. One of which I lived in in 2 of the last 5 years. Both could sell for just over 100k and the payoffs are roughly 80k and 77k. I would like to sell both and invest any monies in the stock market. Or should I invest elsewhere. At the present I am not overly interested in buying another home. What are my choices and what do you think is the best option??? All responses/suggestions (from mild to wild) are GREATLY appreciated.

Martin

3

Re: Confused ? Me too. - Posted by Bill Gatten

Posted by Bill Gatten on April 20, 1999 at 20:10:12:

Two choices as I see it –

  1. Buy real estate (the mobile home park sounds like an excellent idea), or

  2. Buy some stock. How 'bout Eastman Kodak. Their reticence in acknowledging the existence of the digital Camera and ten years of declining earnings, due to Fuji’s having taken over the film market, and their refusal to invest in Real Estate, makes them a sure fire “sleeper.” (If they thought Polaroid was a major pain in the axx, that would just go away some day, wait until they find out that the digital camera is not just a Toys R Us phenomena).

But, of course, we have the Y2K Bug, which will be wiping out mankind, as we know it in a few months… flattening everything… except for Real Estate. Who cares who’s left to buy it (I knew you were going to ask that question)… OK, then, how about caves and abandoned mine shafts.

Seriously, you idea is good, but put your money into real estate first? then gamble later

Bill

4

Re: I am sooo confused !!! - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 20, 1999 at 06:34:48:

Let’s see here…

  1. The stock market is at an all time high.
  2. Price to earnings ratios on most stocks far exceed any other time in recorded history.
  3. Everyone and their uncle have already bought into the stock market.

And you want to sell your real estate to invest in the stock market?

You don’t say it in your post, but I have a feeling that you are tired of dealing with tenant problems, right? First, offer to sell the homes to the tenants under a lease purchase. Since the tenants are buying the homes, they will take better care of them, and you can get them to take care of the maintenance. If the tenants do not want to buy, perhaps you can sell them to another investor. Go to your local real estate investors club and see if anyone is interested. One other option is to evict the tenants, then sell the homes on the open market. If you offer flexible terms, you should have no trouble selling them at full market price.

In my opinion, you should definitely stay out of the stock market !!!