| Search by tag or site | Login to my blog ? Start my own blog |
 |
Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
SOME TIME TESTED INVESTMENT RULES FOR REAL ESTATE, IN ANY MARKET.
visit: http://millionairenowbook.blogspot.com/ for more information.
We dont stop investing in real estate just because the market is weak; any more that we would forget about investing in other asset classes when they experience weakness. So, if you decide to invest in property, experienced or Novice, here are some rules that I have developed and used over the past 20 years of investing and brokering:
1. There are periods of time (in the 7 year cycle which ended in January) where I have invested and other periods where I have pulled back. From 1988-1990 we bought three properties in San Francisco. From 1991-1992 we bought three properties in Scottsdale. From 1994-1995 we bought three properties in Berkeley. From 2000-2001 we bought 3 properties in Scottsdale. In 2005 we bought two commercial properties, two lots, a divorce house, and a foreclosed condo. We sold the condo 30 days later. We have done nothing since April 2005. Be aware of where we are in the cycle.
2. I look at about 100 listings per week, to review 5, to maybe select one to write an offer on, knowing that after I perform all of the due diligence I will probably wind up with nothing. Buying right going in means everything. And, I know in advance that the listing package is filled with lies and misrepresentations.
3. Beware that after a big run up in prices the past five years, foreclosures that everyone is waiting for will still be overvalued and present few good buying opportunities.
4. I have never searched for and acquired trophy properties for me or for my buyers. I leave that to the REITs and pension funds who are not investing their own money. These properties offer little upside from the chance to change into a better, higher use potential.
5. I never buy with 100% cash or 100% leverage. If I put down 20% (or 25-30% for commercial) I will probably get the most favorable financing (cheapest money) at the time of the purchase. If I put down 100% cash, my cash on cash return and internal rate of return may not be very attractive. And, I want to know these numbers before I buy.
6. Do not be afraid of negative cash-flow. Gurus think I'm wrong here. But, it doesn't prevent people from making money later.
7. Hire a trusted contractor who come recommended.
8. Keep transaction costs low by negotiating and shopping.
Getting the right loan going in is very important, so read: WEEKLY MORTGAGE RATES then, How Toxic is Your Mortgage?
Is it a housing bubble or a credit bubble? Or neither? Only the working truth here.
Of course, real estate includes Commerical as well. Read: With America's housing market clearly cooling, will commercial real estate start to swoon?
- Are Financials Suddenly Cheap? Part Ii
- Are Financials Suddenly Cheap?
- Top 10 Sectors & Stocks By Relative Strength (weekly Update)
- Short-Term Sell Signals Given
- "Who Is Next?" By Dick Bove
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
U.S. stock futures rebound on Citigroup results"S&a [read more]
<< My Home | TheMoneyBlogs Home