Tuesday, May 03, 2005

Wanting to invest in real estate

-But the market is so hyped about appreciation that you almost always have to make bargain purchases or -significant upgrades to achieve positive cash flow with normal leverage.
-You should only buy real estate when there is positive cash flow.
-Time out of your life: about 3.6 hours per unit per month.
-I found Kiyosaki highly motivational, but I did not leave those books with a feeling that I knew exactly what to do.
-Statement of fact that not everyone can get rich in real estate
-You may fail at real estate. You may lose many many dollars. But if you still do not heed my warnings and want to go balls to the wall in real estate, here are some nuts and bolts books to help you along the long, stressfull, labor-intensive investment career.(But you still may not succeed, by the way.)
-Buying real estate is a very serious decision and you should know what you are doing.
-Why don't you try finding a successful investor within your area and have them give you advice.
-Reed does not believe that real estate can have positive cashflow (*the Australia RE market is like California (high prices compared to rents) and yet I still find CF+ properties (this is before tax, and after All expenses).
-Quote: almost all normal rental properties have negative cash flow.
-Quote: the guru who told you that real estate investment was a way to pick up extra cash lied to you. He told you that because it was what you wanted to hear, not because it was true. In fact, owning rental property almost inavriably has the exact opposite effect on your cash flow. It takes your current annual cash flow and confiscates part of it to feed the rental property.
-Quote: In order for a single-family rental house to have positive cash flow, the tenant must pay more to rent the house than he would have to pay to own the same house. That is obviously a stupid thing to do. And that’s why you almost never see it.
-Quote: So how do you achieve positive cash flow ethically in the real world? You need to buy in the rare market where high cap rates are the norm. Such markets are usually severely depressed like Anchorage or Oklahoma City in the late 80’s. The reason tenants are willing to pay more to rent than they would have to pay to own in such markets is that they believe property values are falling or level, in which case not owning is a good idea in spite of the high rent. Even then, the positive-cash-flow situation is typically a brief window that lasts only six months to a year.

Source: http://realestatecoursereviews.com/review/index2.php?item_id=22
http://www.RealEstateCourseReviews.com
http://www.johntreed.com/

Here I am with the initial feeling that I should so something and then when I do the research - it looks like a bad idea. I dont want to put my heart and soul into something that I am not interested in. The thought that crossed my mind this morning is that I should try and believe in things more - but I now feel the exact opposite. I want to believe in so many things, that I am blinded by indecision. I just need to do what I want to do.

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