Showing Up Late To The Party Part 4
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
Californians tend to swing from a pendulum of needing everything to be dirt cheap, and wanting properties to appreciate California-style. The challenge here is no one can know exactly what things will be worth ten, twenty, thirty years from now — and most investors won't be able to keep their properties for that long anyway because they don't cashflow.
To all would-be investors sitting on the fence: decide whether you want to have a financially-free future to look forward to, and explore whether it makes sense for you to include out-of-state real estate as part of that future. And please, do your homework! Internet search engines are your friend — use them — these days it's more convenient to find information on various places than ever before in history. Take advantage of that, as well as talking to other investors about their experiences in other places.
There's a lot of money out there and a lot of investors cleaning up who "got there first" — why shouldn't that be YOU?
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
Californians tend to swing from a pendulum of needing everything to be dirt cheap, and wanting properties to appreciate California-style. The challenge here is no one can know exactly what things will be worth ten, twenty, thirty years from now — and most investors won't be able to keep their properties for that long anyway because they don't cashflow.
To all would-be investors sitting on the fence: decide whether you want to have a financially-free future to look forward to, and explore whether it makes sense for you to include out-of-state real estate as part of that future. And please, do your homework! Internet search engines are your friend — use them — these days it's more convenient to find information on various places than ever before in history. Take advantage of that, as well as talking to other investors about their experiences in other places.
There's a lot of money out there and a lot of investors cleaning up who "got there first" — why shouldn't that be YOU?
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
Californians tend to swing from a pendulum of needing everything to be dirt cheap, and wanting properties to appreciate California-style. The challenge here is no one can know exactly what things will be worth ten, twenty, thirty years from now — and most investors won't be able to keep their properties for that long anyway because they don't cashflow.
To all would-be investors sitting on the fence: decide whether you want to have a financially-free future to look forward to, and explore whether it makes sense for you to include out-of-state real estate as part of that future. And please, do your homework! Internet search engines are your friend — use them — these days it's more convenient to find information on various places than ever before in history. Take advantage of that, as well as talking to other investors about their experiences in other places.
There's a lot of money out there and a lot of investors cleaning up who "got there first" — why shouldn't that be YOU?
A big mistake investors can make is to have an arbitrary number at which they will not rise above, no matter what the value. Poor people base their decisions mostly on what things cost; the wealthy, on how much things make. That is not to say that the price doesn't matter — of course it does. But it's not all that matters. For instance: the neighborhood in which I grew up in consists of houses that are now worth anywhere from $950k to $2,500,000k. In the early 70's, they were selling in the $30,000s. If one bought a house here for $30k or $35k back in that era and sat on it ever since, would it really matter now, that they might have "overpaid" by a few grand? Appreciation has a way of smoothing things over. If positive cash flow was being produced all that time, then real estate actually paid the owner to get rich. Nice, huh? And even if hadn't appreciated a tenth of what it actually has, the benefits of ownership over time have LONG since paid for the property.
Californians tend to swing from a pendulum of needing everything to be dirt cheap, and wanting properties to appreciate California-style. The challenge here is no one can know exactly what things will be worth ten, twenty, thirty years from now — and most investors won't be able to keep their properties for that long anyway because they don't cashflow.
To all would-be investors sitting on the fence: decide whether you want to have a financially-free future to look forward to, and explore whether it makes sense for you to include out-of-state real estate as part of that future. And please, do your homework! Internet search engines are your friend — use them — these days it's more convenient to find information on various places than ever before in history. Take advantage of that, as well as talking to other investors about their experiences in other places.
There's a lot of money out there and a lot of investors cleaning up who "got there first" — why shouldn't that be YOU?
posted by zzzzzzzzzzz at
3:03 AM
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