If Real Estate is Such a Bad Investment Why Are We Talking?

Reblogger Lisa Hill
Real Estate Agent with Florida Property Experts
                                      Lisa Hill's Daytona Beach Area, Real Estate Blog

If Real Estate is Such a Bad Investment then Why Are We Talking? That's the question posed by AR blogger J. Philip Faranda in New York. Now since I sell real estate in the area of Daytona Beach Florida, obviously I'm not going to New York. You'll have to call J. Philip for that ;-)  But since he did such a great job of blogging about the topic of real estate investing, I decided to share his post with you. Here's a small snippet...

"I get a call or show an investment property to someone who seems more interested in telling me what a bad investment real estate is than gather facts about the property they contacted me about. It would be like calling a stock broker and preaching to him about the volatility of the market or the moral ramifications of selling short. Why waste each other's time?"

Wow! So true. I think many REALTORS® get frustrated by the lay persons who don't grasp the big picture. Real estate is hyper local. But REALTORS still have to be informed of what's going on everywhere! And herein lies the point.

To buy or sell a home in Daytona Beach, Port Orange, or anywhere in the area of East Volusia County, FLorida, make a Smart Choice and contact Lisa Hill today!

www.DaytonaBeachRealEstateSales.com

Read J. Philip's entire post below my logos!

Lisa Hill-Daytona Beach and Port Orange Realtor

 

 

Lisa Hill-Daytona Beach and Port Orange Realtor

 

 

 

Original content by J. Philip Faranda License # 49FA1074963

Let me first say that I cut my teeth working for a broker who was a big investor and I still to this day work with investor clientèle. I am an investor myself.

However, I do not recruit real estate investors as I do those buying a home, and if you ever heard what I say to neophyte investors seeking my advice you might think I don't want to make a sale. You know what? I probably don't. The risks are significant, the headaches are considerable, and the stakes are high. Consider this: If you invest $40,000 in the stock market and the investment tanks, you are out $40,000. Bad enough. Pretty high "tuition in life." However, if you sink $40,000 into an investment property and it tanks, you can also be stuck with a $200,000 liability headache that dwarfs your initial investment with tenants, a lender, neighbors and the code officer on your tail until men land on Mars. 

There is not one blog post I have authored out of hundreds where I encourage newbies to become investors. It's not part of my acumen. There are no do-overs in real estate. Mistakes are life-alteringly expensive, and I have seen too many new investors get hurt or ruined to tread there lightly. So if I am working with an investor, you can bet they are either experienced or very, very forewarned.  

SO: all that said, I do find it more than a little ironic when I get a call or show an investment property to someone who seems more interested in telling me what a bad investment real estate is than gather facts about the property they contacted me about. It would be like calling a stock broker and preaching to him about the volatility of the market or the moral ramifications of selling short. Why waste each other's time? I have more respect for the losers who send anonymous emails knocking a place or leave wise ass voice mails than a slob who spends my time and gasoline. 

Real investors have little to no energy on Alan Greenspan, the European monetary crisis, TV cashflow infomercials, or other coffee talk when they evaluate property, and they also understand that they aren't going to live there.  Therefore, old kitchens, sloped driveways and other primary residence type concerns have less weight. And they value my time as much as they value their own. 

The almost universal common thread I see in smart real estate investing is that the investor loves the numbers more than the property. It is never highly leveraged, and either bought right, purchased with a strong down-payment, or both. The numbers have to work. Unless the would-be investor is cognizant of these rather rudimentary fundamentals, blabbing about what a crummy investment real estate is or how out of date a kitchen they'll never use happens to be, they are wasting everyone's time.

 

 

  • We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
  • J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
  • I am one of New York's premier short sale REALTORS
  • J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
  • Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
  • I am hiring agents

J Philip Real Estate
All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Florida Volusia County
Groups:
Realtors®
Tags:
realtor
real estate investing
investors
real estate investment
sell real estate
lisa hill
buy home in daytona beach
buy home in port orange

Spam prevention
Show All Comments
Rainmaker
1,542,752
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Very true. Amazing how many people call you up and then talk about the negativity of the market. Real investors vs speculators - the speculators have been run out mostly.

Jun 01, 2010 12:44 AM #1
Rainmaker
595,547
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Gary- It reminded me of a specific incidence I encountered a few years ago. I need to blog it. It was amazing how deluded this woman was.

Jun 02, 2010 10:22 AM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
595,547

Lisa Hill

Daytona Beach Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information