FOMO

Just before the Great Recession managed to dash homeowner dreams and investor real estate businesses, most of the different methods promoted common profit goals.

Which Type of Real Estate Investment is Right For You?
And, as a business model you could evaluate different types of real estate investments

An excerpt from Book Five in “The Knowledge Path Series” dedicated to helping you find the place of your dreams in the Sierra Mountain resorts.

Part One in a 5-Part Series: Is An Investment in Real Estate Right for You?

Part Two: Real Estate Investment Types

Part Three: Building Your Rental Real Estate Business

Housing markets.

Real Estate opportunities.

What Do You Really Need to Know?

Are we experiencing the fear of missing out (FOMO) again?

Are we experiencing the past all over again?

But with a new generation?

Remember the absolute real estate feeding frenzy before the melt down?

  • Rich Dads,
  • Trump University,
  • Wealth Management Expos.
Real Money Was In The Training Programs

We sat in the audiences and listened to their high pressure pitches to buy their training programs in downtown LA.

We encountered no shortage of

  • books,
  • tapes,
  • seminars pitching ways of making money with
  • OPM – Other People’s Money.

Timing?

The worst case materialized when thousands jumped in and over-extended themselves just as the bubble burst.

They got caught holding the bag.

Risk of Foreclosure

In a game of real estate musical chairs, the economy pulled the chair out from under them.

  • What were they thinking?
  • Obviously, not expecting a reverse cycle?
  • But, looking back now and projecting ahead, do the methods work?
  • Can you still find opportunities with the degree of risk you can afford?
  • What should you know?

So far we focused on moving to resort communities that bring out the best in you.

  • Should you just buy a second-home, but keep your primary residence and rent out your vacation home?
  • If you do move, are there any other ways to make money in real estate that make sense for you?

Just before the Great Recession managed to dash homeowner dreams and investor real estate businesses, most of the different methods promoted common profit goals.

Each recommended real estate deals that only …

  • generated a positive monthly income,
  • appreciation growth, with
  • zero or near zero down payments
  • securing a mortgage, and
  • cash in your hand on each deal.

Your job, then is to research and then visit communities that fit your criteria with fewer tradeoffs.

And, as a business model you could evaluate different types of real estate investments —

  • multifamily residential properties,
  • industrial and commercial units,
  • shopping centers and strip malls,
  • raw land or self-storage warehouses.

Steps:

(22) Selectively evaluate the best quality-of-life communities to live in and weigh the tradeoffs of risk and rewards for accruing real estate appreciation along a progression of rural and small towns that meet what your pocket books can afford.

(34) On your visits look for any newer developments that may trigger changes in neighborhood patterns. New construction in or around the neighborhood? Major regional economic adjustments? Transition from households with children to ones that are empty nests? Rezoning, and dramatically rising/falling land values?

 

Leave a Reply

Your email address will not be published. Required fields are marked *