Can you make money in this market?

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Submitted by Multiplepropert... on December 3, 2007 - 7:52pm

So it is generally held that the most effective business people can make money in any market. i.e. Walt Disney got rich during the depression on peoples limited discretionary dollars. Who would have thought that people would spend money in theaters watching cartoons when work was scarce, but they did.

Thus, my question is: Other then the obvious foreclosure market, which is risky, is there a way to make money in real estate right now?

‹ Housing Auction in Oxnard-Auctioneer sells 40 new homes in an hour I don't think anyone expected this interest freeze bail out. ›
Absolutely. They key is to
Submitted by Jumby on December 3, 2007 - 8:35pm.

Absolutely. They key is to invest in an emerging market where the current Gross Rent Multiplier makes sense.

I have good friend that is a real estate broker and he is doing very well with real estate investors in the MS GO Zone.

It's one of the few places in the country that actually NEEDS housing right now, Gross Rent Multiplier of 8.3 and 50% Bonus Depreciation in the 1st year on that's on a brand new house with a 5 year warranty.

email me at justdoitstewart @ yahoo.com and I'll give you his materials and contact info.

Yeah, I have a friend doing
Submitted by Multiplepropert... on December 3, 2007 - 10:14pm.

Yeah, I have a friend doing the same thing in the GO Zone (Gulf Opportunity). At the moment he is working with new student housing that are cash flowing. I am just not a fan of owning somewhere I can't be in a few hours drive. I was thinking more of California.

My advice is forget real
Submitted by stockstradr on December 3, 2007 - 10:32pm.

My advice is forget real estate and focus on the following, because I'm currently making a killing in these areas:

1) Short the market, buy puts on the indexes, buy 2X leveraged inverse bear funds

2) Short oil sector, short oil (this is a short-term recession play. Long-term oil is obviously going straight up in price)

3) Buy gold

4) Dump the dollar and buy European currencies, and if you have the option obviously buy the Yuan.

5) If you must play real estate, do what I did: buy overseas properties in Asia. I specifically bought China mainland properties when I dumped my USA properties in mid 2004. I've made a killing on those China properties.

6) For CA region, I think we are not at the bottom yet. There are only some bargains available in select areas (high desert, and down in riverside , temecula). Even those areas have farther to fall.

There are some moments in life where I make predictions, place my bets and then every single one of those come in and I'm hitting on all cylinders on various investments. That's the feeling right now.

Multipleproperties, you're
Submitted by patientlywaiting on December 3, 2007 - 11:25pm.

Multipleproperties, you're positive about real estate, aren't you? If you believe we've hit bottom, buy all that you can now.

You'll soon be rich and we'll still be "bitter renters." Put your money where your mouth is and prove us wrong!

You, of all people, shouldn't be asking such a question from a bunch of poo heads. You already said you knew better.

I am not going to proclaim
Submitted by babbleon on December 4, 2007 - 10:17am.

I am not going to proclaim to be a wise investor. My strategy is to get sound advice from those who are.

I'll put it this way...every person who informed me of the real estate bubble years before it popped has now recommended buying gold, and lots of it. These people are good at studying historical trends and knowing where to invest before the herds get there and when to sell once the herds are in for the 'easy money'.

Buy an ETF like GLD. If you like to invest in your own wisdom, buy a book called 'America's Bubble Economy'.

It depends on what you mean
Submitted by Russell on December 4, 2007 - 10:42am.

It depends on what you mean by make money. IF you are really a buy and hold investor you might follow the lead of a friend of mine who has recently picked up places in bakersfield and Indio. It's small tiem but my friend ahs made a nice portfolio of rentals over the last 20 years.You owe me because I am going to get snickered off the blog for that.

He purchased a duplex in Bakersfield and added a bedroom and bath to one unit and is now several hundred cash positive,less opportunity cost. I throw the opportunity cost in because it seems like everyone else here demands it. Since it is a very long term investment, with most the rewards, historically coming in the latter years,I don't worry about an opportunity cost if it cash flows well.

Recently he bought a 3-2 in Indio for 175k 20% down. He can rent it for $1500. You can do the math. He thinks he can flip it but isn't counting on it. I have my doubts on the flip but I know he can handle the rental.

There is one property in San Diego county that I would pitch to anyone interested in a splittable rural lot.Because I would buy it if I didn't have other plans,well, and if I could handle the cash flow to develope it. I think it is necessary to think long term and gamble on rational market theories to make the connection to the profitability potential. Give me a buyer's brokers contract and I will show it to you.Actually it just went off the market but give me the contract and I'll contact the owners who would probably still sell if you want it. I want to make sure you have straitened up your act before I am too nice to you. You wouldn't want me to represent us piggs as some kind of a doormat would you?

Why short oil? Are you
Submitted by kewp on December 4, 2007 - 10:48am.

Why short oil? Are you assuming the recession will be global?