Is It Too Late for Real Estate?
Diane Kennedy is the author of the Rich Dad book, "Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax", has a website dedicated to the ever changing tax laws and how to take advantage of them. She is bullish on real estate as an investment. Here are excerpts from her latest newsletter:I've been investing in real estate for 24 years. I've seen the ups and downs of the market and I've made some bad investments, but most of them have turned out great – as long as I was prepared to stay through the bad times.
There's been a lot of talk lately about the downturn in real estate. Have real estate values gone down where you live? In today's email, I'm going to cover three possible strategies to survive a real estate downturn.
- Don't sell
How serious is the problem really? Has the home you live in, the property you are renting out or the property you bought as a fix and flip gone down in value? Well, if you weren't planning to sell right away, why would it matter? Hang on until the market comes back. Historically, in the bigger picture, most real estate markets have ALWAYS come back...
- Run Your Investments Like a Business.
I'm going to talk about some strategies that are worst case only. Remember that real estate is nothing more than a product. If you're good at a business and know how to thoroughly research a product and its market, you can sell toasters or you can sell a house. It's all the same. Of course, not too many people rent toasters and toasters don't appreciate and that's why real estate is such an easy business for so many people to jump into. That's also why there are so many catastrophic failures. It's too easy to make money in real estate, if the market is going hot, even if the investor does everything wrong. They have forgotten (or never knew) the fundamentals of business...
- Keep Your Eyes On the Real Goal
No matter what type of business or investments you have, you need to have fundamental skills. That's what Strategy #2 was all about...
- Diane Kennedy
* Go to her website and sign up for the FREE newsletter!
posted by SFResidence.com @ 7:10 AM
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