Truth is there is an Economic life cycle which the length of can vary by 2-4 years up or down standard deviation with a mean of about 8 years historically. There is little any specific president, congress or the federal reserve can do about it.Do you want us to call this Obama's recession?
But if you wait until the Recession hits the price of just about everything goes down and your purchasing power with said pile of money increases substantially.
When prices are high and you're young and building wealth, better to Rent and live cheaply as you can take it until the next crash inevitably happens.
Last edited by Millennial_Messiah; 08-05-2019 at 06:03 PM.
The price of RE, houses in particular, will go down at some point soon following the start of a recession regardless of interest rates. It doesn't matter if the interest rate is zero if prospective buyers can't qualify for a home loan because they lost their job or their investment savings, and they sure as don't have the cash to buy it straight up. If nothing else, the first thing that goes down sharply is the price of fixer-uppers ("ugly" and "gutted" houses) because less people have the means to be in that market, and/or aren't willing to take on that risk in a buyer's market.
You're right, but I just got sick of renting in holes. Saw a nice house, put an offer below asking and got it. Will probably regret it if real estate values go to , but at least I got a relatively low rate and a fixed mortgage (unlike friends who got ARMs and crap back in 05-07).
Yeah anyone who bought a house from 04-07 had it the worst and is still struggling more than the average middle aged American these days. The problem is the fixed mortgage doesn't go down when the RE prices go down, you have to pay what you bought it for not current market value, so you end up with a major unrealized capital loss.
True hence the suckage. But I just hope it doesn't go down like a rock in my area, as I'm in a good job market
This is why I'm making the move to real estate. I've lost a couple hundred in less than a year on stocks and have no control. Atleast in RE if I lose it's because I ed up.
Maricopa county? If so I have 8 acres of land I need to sell there before the recession
But RE is a lot more time consuming. In my experience you have to take calls at whatever time of day especially early in the morning. If you're at work you might have to drop everything to meet at the local Starbucks with a random notary sent by a le company. Or you have to go to a specific bank (example, Chase, even if you don't bank there) to deposit funds in your property mgmt company's account. You'll probably get scammed out of some money the first couple times you get into RE. It's annoying.
Nah, but I do own there as well. From 2011
I expected a correction last Monday or Tuesday, tbh.
what area do you live? not to be nosey just interested for curious sake
In your heart
It is more time consuming but I don't think it's that extreme, bro.
Yes, it is. I have 3 years of experience. I lost big money on my first one. Don't think it can't or won't happen to you. It's an experienced man's game.It is more time consuming but I don't think it's that extreme, bro.
On a flip? Or what do you do?
Listened to the wrong guy regarding ARV and on top of that, the construction guy he recommended me started building a mancave out of half of the garage.
Also, protip... never finish an attic or a basement unless it's a HUGE dollar flip (over $400K ARV)... because generally, it costs more to renovate that than added value. And never build a pool on a property you plan on flipping.
Seems like an amateur mistake, imo. Should've ran your own comps.
I probably won't flip though. Atleast not right away. Where are you getting the capital for those type of flips?
If you don't have cash on hand, use hard money. Typically your responsibility is only 10% up front of the entire investor cost (purchase price + rehab costs). They won't give you any cash; they usually withhold the rehab costs until you get a licensed property management company to e-sign a contract with them (then they will wire them the funds instantly prior to rehabbing), or if you have some type of handyman license yourself and you want to DIY then there is usually an option to directly e-sign with them.Seems like an amateur mistake, imo. Should've ran your own comps.
I probably won't flip though. Atleast not right away. Where are you getting the capital for those type of flips?
Yeah, but 10% of 300k is still 30k. That's still a lot of money, imo.
He probably has his daddy fronting him every step of the way
Andy is a pathological liar. He has never been involved in RE tbh
What do you mean that you have no control?
Too dependent on the market and the companies. I like that in RE you can create your own system to analyze properties, and if you invest for cash flow and not appreciation you are less dependent on the market. Your return on investment is higher in RE too (if you know what you're doing).
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