“INVESTORS” who haven’t learned their lessons?

[carlsbadworker]

[quote=Bob]
Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.
The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.
[/quote]

Rental property is a business. So the most important question is the return on equity. The purchasing price is NOT you only cost. You have to factor in other various costs associated with the business. And the return is NOT only the rental income, you have to have price appreciation. No one will invest in real estate if it doesn’t come with price appreciation. Just like no one will rush into rental car business if it is barely cashflow positive.
But there’re all kinds of ways to make money in any business, you can choose yours. I happen to agree with peterb on this. But I do want to point out there’re totally different logics at play with primary residence v.s. rental property.

[sdrealtor]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

Peter
You have clearly identified yourself as having a speculator mindset not an investor mindest. A real estate investor buys for cash flow. A speculator is concerned about it going up in value quickly. Time for an attitude adjustment dude……

[sdrealtor]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

Peter
You have clearly identified yourself as having a speculator mindset not an investor mindest. A real estate investor buys for cash flow. A speculator is concerned about it going up in value quickly. Time for an attitude adjustment dude……

[sdrealtor]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

Peter
You have clearly identified yourself as having a speculator mindset not an investor mindest. A real estate investor buys for cash flow. A speculator is concerned about it going up in value quickly. Time for an attitude adjustment dude……

[sdrealtor]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

Peter
You have clearly identified yourself as having a speculator mindset not an investor mindest. A real estate investor buys for cash flow. A speculator is concerned about it going up in value quickly. Time for an attitude adjustment dude……

[sdrealtor]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

Peter
You have clearly identified yourself as having a speculator mindset not an investor mindest. A real estate investor buys for cash flow. A speculator is concerned about it going up in value quickly. Time for an attitude adjustment dude……

[sdduuuude]

Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.

[sdduuuude]

Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.

[sdduuuude]

Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.

[sdduuuude]

Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.

[sdduuuude]

Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.

[equalizer]

[quote=sdduuuude]Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.[/quote]
Very well said! I’m likely misunderstanding what you mean but I’ll say that transactional costs are so high that only realtors, brokers, etc will make out unless one sells in hot markets and buys in soft markets. Know someone in CV who bought 6 months ago all cash (from selling homes at 2005 peak and renting) and now is selling (was a panic buy) for what will be 50-75K loss.

[equalizer]

[quote=sdduuuude]Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.[/quote]
Very well said! I’m likely misunderstanding what you mean but I’ll say that transactional costs are so high that only realtors, brokers, etc will make out unless one sells in hot markets and buys in soft markets. Know someone in CV who bought 6 months ago all cash (from selling homes at 2005 peak and renting) and now is selling (was a panic buy) for what will be 50-75K loss.

[equalizer]

[quote=sdduuuude]Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.[/quote]
Very well said! I’m likely misunderstanding what you mean but I’ll say that transactional costs are so high that only realtors, brokers, etc will make out unless one sells in hot markets and buys in soft markets. Know someone in CV who bought 6 months ago all cash (from selling homes at 2005 peak and renting) and now is selling (was a panic buy) for what will be 50-75K loss.

[equalizer]

[quote=sdduuuude]Chris – I think this group is well ahead of the curve on local Real Estate, but fairly worthless when it comes to the bond/stock/commodities markets in which you are most adept so I can understand your comments.

I agree it is annoying when people bag on investors who are successful pulling off deals in a complicated market. Kudos to them, and thanks to SDR for pointing it out.

I’m with you on the “corrections always overcorrect” comments.

There is a bit of the herd mentality in the “prices can only go down” camp but I think for the most part we are ahead of the curve on local real estate … if a group can collectively be such.

I’d also like to see less “this can’t be happening” and “just wait until the shadow inventory hits the market” and more explanantion of why this market is looking healthier in such a bleak-looking economic environment.

I’d also like to say that someone who rents instead of buying a 500K house they can’t afford may not be smarter than a seasoned stock/bond trader, but at least they didn’t buy a 500K house they couldn’t afford, and at least they had the foresight to see that it may soon be a $350K house. I’d call that ahead of the game. Even more ahead of the game are people who could afford the 500K house in 2004 and rented anyway – and there are lots of those around here, too.

I guess we won’t know if we are ahead of the SD RE curve for another couple of years. For now I’ll take my RE cues from this group, and my non-RE investment cues from – well, anywhere else, frankly.

Personally, I see this Spring as the equivalent of a bear-market rally. It’s a little stronger than anyone expected and if you get in and out, there’s money to be made buying from those expecting the big crash and selling to those who think this is the bottom.

It’s a market where you have to move fast or get the hell out of the way of those who are moving fast.[/quote]
Very well said! I’m likely misunderstanding what you mean but I’ll say that transactional costs are so high that only realtors, brokers, etc will make out unless one sells in hot markets and buys in soft markets. Know someone in CV who bought 6 months ago all cash (from selling homes at 2005 peak and renting) and now is selling (was a panic buy) for what will be 50-75K loss.

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