Comments on: Is Real Estate Really A Good Investment? http://truthfullending.com/is-real-estate-a-good-investment/ Anything and everything Tue, 17 Jan 2012 15:36:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ardo http://truthfullending.com/is-real-estate-a-good-investment/#comment-1743 ardo Sat, 26 Feb 2011 00:29:26 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1743 Real Estate is a lucrative investment in any market if you know the right strategies to use for the times. Of course you cannot base this soley on the national market. Locale is the biggest factor. Skip, like you said, buy&hold investments are probably the best Real Estate is a lucrative investment in any market if you know the right strategies to use for the times. Of course you cannot base this soley on the national market. Locale is the biggest factor.
Skip, like you said, buy&hold investments are probably the best

]]> By: MJA http://truthfullending.com/is-real-estate-a-good-investment/#comment-1670 MJA Thu, 18 Nov 2010 15:58:16 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1670 "Its a very good long term investment.. but good mutual funds are also a good investment. History has proven these facts..." -Wayne Bienek I have news for you pal... history has proven nothing! Why don't you take a look at the survivorship bias that plagues mutual fund, S&P 500, and hedge fund returns. The only thing history proves is that investors can lose more money than they ever imagine possible in just about any investment, and they may not live long enough to ever recoup their losses. The idea that any investment is safe and superior "in the long run" is complete and utter nonsense... A myth perpetuated by those that stand to gain the most from foolish and naive investors. “Its a very good long term investment.. but good mutual funds are also a good investment.

History has proven these facts…” -Wayne Bienek

I have news for you pal… history has proven nothing! Why don’t you take a look at the survivorship bias that plagues mutual fund, S&P 500, and hedge fund returns. The only thing history proves is that investors can lose more money than they ever imagine possible in just about any investment, and they may not live long enough to ever recoup their losses. The idea that any investment is safe and superior “in the long run” is complete and utter nonsense… A myth perpetuated by those that stand to gain the most from foolish and naive investors.

]]> By: Tim Birdman http://truthfullending.com/is-real-estate-a-good-investment/#comment-1627 Tim Birdman Fri, 09 Jul 2010 16:24:05 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1627 Real Estate is NOT a risky investment as long as the potential business puts forth the research and time into understanding the markets. Also the ones who fail are the fast, get rich quick, non educated bums. They fail and blame the market for failing them instead of themselves. Your article is a great key to basic educational understanding of real estate. Next is to look at today's market and find that unmet need that a lot of people have, and giving them the solution to it. Real Estate can be financially had by any and all who do it right. Real Estate is NOT a risky investment as long as the potential business puts forth the research and time into understanding the markets. Also the ones who fail are the fast, get rich quick, non educated bums. They fail and blame the market for failing them instead of themselves. Your article is a great key to basic educational understanding of real estate. Next is to look at today’s market and find that unmet need that a lot of people have, and giving them the solution to it. Real Estate can be financially had by any and all who do it right.

]]> By: ryan http://truthfullending.com/is-real-estate-a-good-investment/#comment-1587 ryan Sun, 14 Mar 2010 04:38:06 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1587 i personaly think real estate is a great investment but dont forget to not put all your eggs in one basket. diversify is the key i personaly think real estate is a great investment but dont forget to not put all your eggs in one basket. diversify is the key

]]> By: Pat Rex http://truthfullending.com/is-real-estate-a-good-investment/#comment-1524 Pat Rex Sat, 14 Nov 2009 12:28:25 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1524 No one is arguing that real estate can be a good investment. In order to determine if it's the BEST investment you should be making you have to look at how much money (equity) you have tied up, and how much you COULD be making in an alternative investment. What is your oppurtunity cost? If you have $100K tied up in equity you have to look at your precentage of return on real estate vs. what you could earn in a mutual fund (for example). If your equity goes up on the property, you technically should raise your rent (or somehow lower your expenses) in order to match what would be an increased return in an alternative investment. It's a hard one concept to wrap your head around but this is the only way to think about it if your goal is to make the maximum amount of money on your available funds. Of course you must consider safety and liquidity as well. No one is arguing that real estate can be a good investment. In order to determine if it’s the BEST investment you should be making you have to look at how much money (equity) you have tied up, and how much you COULD be making in an alternative investment. What is your oppurtunity cost? If you have $100K tied up in equity you have to look at your precentage of return on real estate vs. what you could earn in a mutual fund (for example). If your equity goes up on the property, you technically should raise your rent (or somehow lower your expenses) in order to match what would be an increased return in an alternative investment. It’s a hard one concept to wrap your head around but this is the only way to think about it if your goal is to make the maximum amount of money on your available funds. Of course you must consider safety and liquidity as well.

]]> By: John http://truthfullending.com/is-real-estate-a-good-investment/#comment-1515 John Wed, 14 Oct 2009 02:02:38 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1515 @RJ: That's true, leverage is a powerful thing, which incidentally increases risk. That said, you can buy stocks on margin. Now, whether or not the risk is equal in both cases is a different topic altogether. @RJ: That’s true, leverage is a powerful thing, which incidentally increases risk. That said, you can buy stocks on margin. Now, whether or not the risk is equal in both cases is a different topic altogether.

]]> By: RJ http://truthfullending.com/is-real-estate-a-good-investment/#comment-1514 RJ Tue, 13 Oct 2009 22:50:58 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1514 What the author also fail to mention about the difference between the S&P beating real estate in terms of % increase is that in real estate you can use tremendous leverage to increase wealth. i.e. you invest $10,000 in an S&P index since 1980 and get 1000% or $200,000 vs investing $10,ooo in real estate to purchase a home worth $100,000 x 247% or $247,000 Leverage works and it is one of the huge keys to building real estate wealth! What the author also fail to mention about the difference between the S&P beating real estate in terms of % increase is that in real estate you can use tremendous leverage to increase wealth. i.e.
you invest $10,000 in an S&P index since 1980 and get 1000% or $200,000
vs
investing $10,ooo in real estate to purchase a home worth $100,000 x 247% or $247,000

Leverage works and it is one of the huge keys to building real estate wealth!

]]> By: Peter http://truthfullending.com/is-real-estate-a-good-investment/#comment-1378 Peter Sun, 05 Apr 2009 19:43:20 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1378 Building on what has already been said, the author based this only on the value of the home as the investment. I own 3 condos and while their prices are down to where I bought them, I still make 300-400/month of each one. I also enjoy a favorable tax return/write-off. At the rate I am going I will have no payments on these 3 properties within 15 years and have a nice stream of income (~3-5k/month). In addition, I don't take care of the properties..I pay someone to do that as well. It is annoying when financial "experts" shoot down true real estate investing, when they are really just mentioning owning a home. I guess when your a hammer (financial advisor), everything looks like a nail (investing through them exclusively is the best way to make money). Building on what has already been said, the author based this only on the value of the home as the investment. I own 3 condos and while their prices are down to where I bought them, I still make 300-400/month of each one. I also enjoy a favorable tax return/write-off. At the rate I am going I will have no payments on these 3 properties within 15 years and have a nice stream of income (~3-5k/month). In addition, I don’t take care of the properties..I pay someone to do that as well. It is annoying when financial “experts” shoot down true real estate investing, when they are really just mentioning owning a home. I guess when your a hammer (financial advisor), everything looks like a nail (investing through them exclusively is the best way to make money).

]]> By: Lorina Krisak http://truthfullending.com/is-real-estate-a-good-investment/#comment-1337 Lorina Krisak Sat, 24 Jan 2009 14:39:00 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1337 Real Estate is a lucrative investment in any market if you know the right strategies to use for the times. Of course you cannot base this soley on the national market. Local is the biggest factor. Skip, like you said, buy&hold investments are probably the best strategy at this time (with OPM, of course :-). This is probably one of the best times in history to make money in Real Estate. I know I am taking advantage of it! Too bad most will read articles like this and figure the best thing to do is stay away. Real Estate is a lucrative investment in any market if you know the right strategies to use for the times. Of course you cannot base this soley on the national market. Local is the biggest factor.
Skip, like you said, buy&hold investments are probably the best strategy at this time (with OPM, of course :-) .
This is probably one of the best times in history to make money in Real Estate. I know I am taking advantage of it! Too bad most will read articles like this and figure the best thing to do is stay away.

]]> By: October Real Estate Blog Carnival | 3 Minutes http://truthfullending.com/is-real-estate-a-good-investment/#comment-1317 October Real Estate Blog Carnival | 3 Minutes Mon, 24 Nov 2008 09:03:43 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-1317 [...] Lending asks if Real Estate really is a good investment.. and discusses analyzing investments based on 3 main criteria: liquidity, safety, and rate of [...] [...] Lending asks if Real Estate really is a good investment.. and discusses analyzing investments based on 3 main criteria: liquidity, safety, and rate of [...]

]]> By: John http://truthfullending.com/is-real-estate-a-good-investment/#comment-871 John Thu, 08 Nov 2007 01:27:22 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-871 Skip, you make a very good point. And as long as you use it in that way (net positive cash flow) it's a fantastic investment. Thanks for stopping by. Skip, you make a very good point. And as long as you use it in that way (net positive cash flow) it’s a fantastic investment. Thanks for stopping by.

]]> By: Skip http://truthfullending.com/is-real-estate-a-good-investment/#comment-870 Skip Wed, 07 Nov 2007 21:00:59 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-870 All of that may be true but it's what is NOT mentioned that is really important...like the fact that you purchase a $200,000 asset for $10,000 to $20,000 and then rent it out and literally have someone else buy the asset for you as you use the rent to make the payments...OPM (Other People's Money) anyone. I'd like to see their chart with this data included. All of that may be true but it’s what is NOT mentioned that is really important…like the fact that you purchase a $200,000 asset for $10,000 to $20,000 and then rent it out and literally have someone else buy the asset for you as you use the rent to make the payments…OPM (Other People’s Money) anyone. I’d like to see their chart with this data included.

]]> By: Marty Dobos http://truthfullending.com/is-real-estate-a-good-investment/#comment-869 Marty Dobos Wed, 07 Nov 2007 16:45:26 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-869 Real Estate investing can be risky but in the long run it can be profitable. Real Estate investing can be risky but in the long run it can be profitable.

]]> By: Wayne Bienek, Real Estate Web Designer http://truthfullending.com/is-real-estate-a-good-investment/#comment-868 Wayne Bienek, Real Estate Web Designer Wed, 07 Nov 2007 00:37:18 +0000 http://truthfullending.com/is-real-estate-a-good-investment/#comment-868 Its a very good long term investment.. but good mutual funds are also a good investment. History has proven these facts. With real estate though, you can put your 'hands' on your investment.. Wayne Bienek http://www.webcontentsolutions.com Its a very good long term investment.. but good mutual funds are also a good investment.

History has proven these facts. With real estate though, you can put your ‘hands’ on your investment..

Wayne Bienek
http://www.webcontentsolutions.com

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