Real Estate Agent with Remax Grand Central

As I sat finishing my lunch and watching the closing bell on Wall Street and the Dow falling nearly 390 points, I wondered how long American investors would be willing to leave their future in the hands of others. I listen to one highly educated consultant after another contradict each other as to the future, and most simply seem to be salesmen. Many of the more conservative folks that I know have characteristically kept their money in government insured instruments. Although few of these folks have any doubt as to the safety of these investments they are frustrated by the fact that they are earning little to nothing. The more savvy have come to realize that with inflation and the devaluation of the U.S. dollar, even their insured cash portfolios have deteriorated and some simply need more retirement income to live on.
Many of my clients have taken the money out of their cash portfolios and purchased small rental homes. These appear to have bottomed out in our area and the healthy rental market we are experiencing is producing a return of 4%-8% cash on cash on rental units of $300,000.00 or less, which are plentiful in this market. Most investors are comfortable with home ownership and most find it rather easy to manage a single family dwelling. The biggest reason however that most are expressing is the fact that they are fed up with the leadership on Wall Street and in Washington and don’t want to leave their future in the hands of those who are in charge today. The economy is not going to turn around quickly, but the right real estate investment today will provide a fat return. 

Comments (1)

Damion Alexander
Westbridge Realty - Woodland Hills, CA
Real Estate Sales and Service

With prices as low as they are and interest just as low, real estate does seem to be one of the best investments today.

Sep 26, 2011 03:02 PM