Comments on: Real Estate Pigs Getting Slaughtered

By: Matt

Matt — Thu, 15 Jun 2006 06:27:47 +0000

If an investment is cash-flow-negative, it’s not a question of “timing”, though.

At least with stocks, the worst thing that can happen is that you lose 100% of the money you invest in a stock, but no more. With real estate, it can keep chomping away at your net worth until you’re bankrupt. Taking care to pick only RE investments you can handle isn’t a matter or timing.

By: frugal

frugal — Wed, 14 Jun 2006 22:07:54 +0000

Extremely well said, Brian. Can’t agree with you more. It’s so easy to say something that is seemingly correct. If the timing is off, then you’re wrong, period.

By: jim

jim — Wed, 14 Jun 2006 19:34:35 +0000

I walked around the construction area in Locust Point up near the bridge, they’re nice places but they’re not particular big and they stare right at that traincar depot. I never can understand the love of living in the city, especially a non-exceptional city like Baltimore, that would lead someone to buy a $615k townhome with a gorgeous view of traincars with hazardous writte on the side.

By: Miller

Miller — Wed, 14 Jun 2006 19:31:12 +0000

I am definitely seeing this in Baltimore City. There are hundreds of units just waiting to get in on the market… right after it cooled off. There are some great new townhomes in an area called Locust Point that people bought for 615k a year ago. Those same units (unlived in) are going for 490k on Craigs list. Rental prices for those places range from 3k a month to 2k a month (I would assume because the buying prices have varied so much). What happens when the 3k a month place doesn’t rent out for months because renters can get the same place for 2k?? Well, the aligators get their meat. =)

But in the end I agree with the previous comment: hindsight is 20/20…

By: LAMoneyGuy

LAMoneyGuy — Wed, 14 Jun 2006 17:07:59 +0000

I’ve been a critic of Kiyosaki, but he did write an article a year ago proclaiming a housing bubble. It may have been obvious to many, but many in the financial and RE community did not agree. Prices were still showing quite a bit of strength.

By: 2¢ Worth

2¢ Worth — Wed, 14 Jun 2006 16:28:31 +0000

In the stock market, there’s an old saying – the bulls make money, the bears make money, the pigs go broke.

In real estate, especially as investment – don’t bite off more than you can chew. And if you chews (pun intended) an alligator knowing that it has negative cash flow, don’t expect sympathy when it bites you instead!

By: Brian

Brian — Wed, 14 Jun 2006 15:43:30 +0000

Hindsight is 20/20 and is Robert’s strongest talent…