Buy Buy Buy
Who is in a better position to know the market than we are, the Real Estate agents. Come on, it is like insider trading on the stock market except for us it's legal. We know the market and I for one intend to put my years of hard knocks education to my advantage for once. My goal is to buy two or more properties a year till the market goes up, then I will sell sell sell.
What got me started on this post was talking to Broker Bud last week and hearing the story of how in the 80s Real Estate went down (in the toilet as he put it) He said you couldn't sell enough houses to make a living, if your life depended on it. But he knew the market, although prices just kept coming down and while he would hear all the doom sayers and media spreading the bad news. He even heard someone say the world was coming to an end at some point in all the mess and that gas prices would go over a $1.50 a gallon.
So he decided instead of worrying, since there were a lot of folks, even the smart ones doing that. He thought what the heck, he had nothing to lose, you know since the world was coming to an end and all. So he started buying and turning those buys into rentals. He even forgot about selling as in his career, he just bought and bought ( you know with the world coming to an end and all). He did creative owner financing, buy downs, heck if you had a house to sell and couldn't sell it he would buy it and even let you rent it back if you liked.
Anyway after ten years, along about 1994 he had bought 47 homes and all but six were positive cash flows and he made enough off the others to cover any losses. So he started selling five a year while still buying two. Along about 2004, five hurricanes hit Florida all in one year and Broker Bud had about sixty five homes to sell all at the high prices that everyone thought he ad paid in the 80s. Can you guess what happened next?
Broker Bud after retiring in 06, just came out of retirement and when I ask why? he just laughed and Lets buy some Real Estate.
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