My father has been in the real estate business for quite a long time now and I must admit he really took a lot of risk in putting much of his money on lands. I admire his passion and dedication in selling these properties though. Right now, there's this one property that seems so hard to sell but he still has high hopes. I guess that's one thing we need in investing, the right amount of courage to take big risks.
Real estate is one of the most safest investments we can have, but at the same time it can take it's time to sell it and to make cash fast, although I though think that is the goal of people buying real estate.
I think a lot of people all over the world, not just in America fall into that trap. When you look at housing, there looks like there's a lot of money to be made, and I'm sure there probably is, but you also have to know what your doing. A lot of people bought property when they was cheap, but now the prices have risen and they want to sell, they've found that people can't afford to buy them now. Only two options you'll have, is keep hold if the property, or...sell at a reduced price so theoretically, you'll not be making as much, if anything, has what you wanted.
I would be very interested to learn what some of these liquid assets are. How is a rental property for instance classified as opposed to a property that just sits with no perpetual income? Surely real estate that has cash flow is more valuable than a summer home or something of the like.
Not necessarily. Some real estate investors buy land, build a house and sell it. They also can be buy houses and wait for prices to go up [since theoretically, the value house appreciates all the time (though not by much)] then sell it when they know they'll make a decent profit from it. Unfortunately though only very wealthy investors can afford the luxury of waiting.
That is the long term investment so to speak, invest in a home that needs to be recovered or built from the scratch, those cases require more capital, but certainly can give a lot of money.
