It Looks Like A Recession Because It Is One?

[The Big Daddy C-Master]

[WarMachineRhodey]

Peter schiff is peddling fiction. He should stop doing that. /s

[The Big Daddy C-Master]

Jan 21, 2016 10:34:55 GMT -5 WarMachineRhodey said:

Peter schiff is peddling fiction. He should stop doing that. /s

Yea the economy is great!

[WarMachineRhodey]

www.bizjournals.com/houston/news/2015/11/11/houston-home-sales-decline-by-double-digits-amid.html

Even with this decline i have seen some new subdivisions pop up so im not sure if those homes were already sold or if the home builders already had a contract to build the houses but they will just sit till someone purchases them.

There is so much shit going on right now its hard to keep up with it all

[The Big Daddy C-Master]

Housing is often confusing because you have so many different areas. Even within the same state and county. Homes could be booming in one area but dead in another area. I know many people see their homes are going up and think the economy is brilliant.

[magicattack]

Stay away from housing unless you understand the market you are in.

[The Big Daddy C-Master]

Jan 21, 2016 13:55:10 GMT -5 magicattack said:

Stay away from housing unless you understand the market you are in.

Well that and people think they can "afford" it when in reality it's just easy loans for most people at an artificially low rate.

[magicattack]

Jan 21, 2016 14:11:56 GMT -5 The Big Daddy C-Master said:

Jan 21, 2016 13:55:10 GMT -5 magicattack said:

Stay away from housing unless you understand the market you are in.

Well that and people think they can "afford" it when in reality it's just easy loans for most people at an artificially low rate.

Again- if someone doesn't understand the market that they are in, then stay away from trying to make investments in real estate. Low interest rates are a tool to invest with, not a reason to invest.

I don't know how else to explain it without going into mind blowing detail. Plus it's boring, if people aren't into actually making money they won't read it anyways.

[The Big Daddy C-Master]

Jan 21, 2016 14:26:34 GMT -5 magicattack said:

Jan 21, 2016 14:11:56 GMT -5 The Big Daddy C-Master said:

Well that and people think they can "afford" it when in reality it's just easy loans for most people at an artificially low rate.

Again- if someone doesn't understand the market that they are in, then stay away from trying to make investments in real estate. Low interest rates are a tool to invest with, not a reason to invest.

I don't know how else to explain it without going into mind blowing detail. Plus it's boring, if people aren't into actually making money they won't read it anyways.

Absolutely, you shouldn't invest in something you don't understand. What I'm saying is that low interest rates and easy loans encourage people to "invest" money they normally would never would have.

Feel free to go into detail if you wish.. This is the section for it after all so it won't be off topic.

Low interest rates are great for borrowers, they're just bad for savers. Low interest rates and inflation transfer wealth from savers to borrowers.

[magicattack]

If someone has a question, I would be more than willing to answer. But I don't know if people are interested in flipping or renting. Commercial or residential.

[The Big Daddy C-Master]

Jan 22, 2016 14:20:37 GMT -5 magicattack said:

If someone has a question, I would be more than willing to answer. But I don't know if people are interested in flipping or renting. Commercial or residential.

Did you do commercial real estate? Which did you prefer?

[magicattack]

I only did 1 commercial deal. I basically played the part of middle man.

Most of my investments were flips.

My grandfather owned and rented his properties.

Flips make quick money but you have to move them quick, whereas rental is a nice steady income.

I have my eye on 2 properties, but the problem is getting them for a price that I like.

I would probably move towards rental now. It's easier to find a tenant than a buyer.

[The Big Daddy C-Master]

Jan 22, 2016 15:21:08 GMT -5 magicattack said:

I only did 1 commercial deal. I basically played the part of middle man.

Most of my investments were flips.

My grandfather owned and rented his properties.

Flips make quick money but you have to move them quick, whereas rental is a nice steady income.

I have my eye on 2 properties, but the problem is getting them for a price that I like.

I would probably move towards rental now. It's easier to find a tenant than a buyer.

Well many people also keep a house and sit on it because of the tax benefits. My family likes to do it but I try to tell them to be careful. Have some renters and flippers but some target markets that take much longer to sale (upscale areas).

Commercial tends to have a different term. What some people do is they get a group of people who pool and invest in commercial properties together, sometimes even in other countries.

Some like rentals and some don't because they don't like tenants. I haven't heard too many bad stories from my family members but they've gotten solid at screening them. Some say they want to go to bad areas because you can charge high rent in some of them but then you have more headaches.

[magicattack]

The good thing about rentals in bad areas is section 8 housing.

There is an elderly woman that has rentals in a few different locations. She has one multifamily unit with 3 very long-term section 8 tenants. She said the money is there like clockwork.

Better than having to hunt down deadbeat tenants.

[The Big Daddy C-Master]

Jan 22, 2016 22:56:12 GMT -5 magicattack said:

The good thing about rentals in bad areas is section 8 housing.

There is an elderly woman that has rentals in a few different locations. She has one multifamily unit with 3 very long-term section 8 tenants. She said the money is there like clockwork.

Better than having to hunt down deadbeat tenants.

Not to mention government subsidized stuff is usually really good for people who are able to partake in it. No need to chase down deadbeats and the pay is often quite higher in many cases. Knew someone who was doing work on government properties and said he was making 3-4x as much as he would on a private piece of land. Not surprised at all really.

Chasing down deadbeats is annoying. I have everything automatically charged for clients, or charged once depending on what is being down and what business. Don't have time for that.