Here ya go, @hanera, if you didn’t already see this
Thanks. Actually my next target city is Las Vegas. Not tech dependent, mainly tourism
Really? Highly volatile, no? Talk about your boom and bust towns…
I just don’t get buying sfhs in faraway places…Want diversity, buy REITs…But sfhs are high maintenance with high management fees relative to multi family. …
Vegas is a crap shoot at best…Austin is boom bust too…My Trump wannabe partner bought RTC properties there in the 80s for 10 cents on the dollar, has sold all of them…Even if you buy right, Texas is a mistake long term…No barriers to entry, houses depreciate long term…Always somebody building new close by. .Same in Utah…
My fellow investors own a 9000 sf house near Park city. .Got it as a settlement in a lawsuit…Valued 5 years ago at $5.5m…Now is stale goods…worth $3.5m
Hmmm, I must have missed that episode. I thought all properties went up!!!
When shopping for a REIT it’s important to know the composition and quality of its holdings. Equity REITs acquire commercial property – apartment buildings, shopping centers, warehouses, even timberland – and generate their income from tenant rent. You’re looking for outfits that operate top-notch space with quality, long-term tenants. If the REIT owns a strip center with a vape shop, a place that will sell your stuff on eBay, and the Pretty Kitty Pet Emporium, skip it.
Mortgage REITs earn their living by trafficking in real estate mortgages and mortgage-backed securities. REITs typically focus on a specific category such as residential (apartment buildings, hotels, manufactured housing), retail (malls and shopping centers), or healthcare (hospitals, assisted living centers, medical offices). Investors need to consider the current state and future outlook for a REIT’s chosen sector when evaluating the trust. Many residential-focused REIT’s limit their investments to specific markets, usually large cities, thus the prospects for those local economies should be factored into an investment decision.
The caliber and experience of a REIT’s management team is also critical. Real estate is a savage business. Success requires careful selection of asset properties, effective tenant recruitment, and highly efficient execution of every management function from marketing to maintenance. It’s a jungle out there, so stick with established trusts that have a track record of maintaining a decent payout across multiple market gyrations.
Keep an eye on the REIT’s debt, too. Trusts that use a significant amount of borrowed capital will be more vulnerable when interest rates rise. Mortgage REITs tend to be more leveraged than Equity trusts.
My position: Don’t want to own any commercial buildings or mortgages. That leave… no REIT
Now is 2017
In the 80s, SV is still mostly an orchard despite Apple, Cisco, Intel, HP etc, can buy a decent 3/2 SFH for less than $100k that are selling for over $2 mil now.
Investing is about the future, the past is nearly irrelevant.
I see why so many don’t like stocks, is all about the future… the past? didn’t exist
Contrary to your philosophy, is better to buy where there are new development going on. New development pushes up price of land! make the place more desirable because humans are social beings who like to crowd together. Residential development encourages the development of amenities which pushes up the price of land, yes!
Those properties he sold didn’t appreciate like BA properties. …i have knowledge thru grandfather of real estate history back to the 1930s…I use my past experience and knowledge to invest and share on here…Those who ignore history are bound to repeat its failures…Texas and other low barrier to entry states are bad for long term investors. .Sell your Texas properties. .The short term gains wont last…I am selling a Sugarland Tx land deal currently for a loss…
Historically, we all know that. The emphasis is in the past, and investing is about the future. Look like you still didn’t get it. I see you don’t get tech businesses too.
So why buy in Tx for long term…Develop then sell, buy distressed property then sell…Long term hold…fugetaboutit
Land is limitless in Tx…therefore has no value…Land appreciates, structures depreciate
I said many things… one of them is investing is about leveraging others, do as little work as possible…
Austin is not Texas, told you like… times… give up
Utah Vegas Texas. …all the same…Builders in those areas are happy to make 10% profit on new construction. .Will build till the banks pull out. …Building fools.
A friend builds shopping centers in Austin. 7 caps…started out building spec homes…lost his ass…Enjoy your investments in areas you know nothing about…Naivete breeds a pollyana since of security. .Go thru a few cycles, learn an area, then report back…Let us know how Vegas turns out…a wasteland for investors…
Hope you don’t keep repeating the same thing to me again and again. I have to tell you the same reason again and again. I gave a few more reasons why Austin… sigh… why people read and forget… so hard to remember things?
Investing is about the future… don’t expect future to be like the past… future is unpredictable… the past can be a burden on your shoulder that you may want to put down… learning from experience is not the same as not doing the same thing because of past failure, is about understanding what are likely to succeed and what are likely to fail which doesn’t mean doing almost the same thing will fail… doing roughly similar thing with modification at different time may succeed… judgement call… enter the cave once and got burn, and dare not re-enter, is not necessarily a good approach… 10% to developer, 6% to realtors, 20% profit possible?
Ok, why Vegas (going forward)? I mean, we have seen this town boom and bust and at the end of the day this is a casino town no? Yes, small improvements like even the Raiders maybe coming might transition Sin City to Anytown, USA but what else? Don’t tell me Elon is thinking flying cars production there…
No problem us old guys never lisren anyway…I am sticking to investments 30 min from my house
You gotta get out of that steaming jacuzzi that is overlooking the Lake now and then @Elt1…
Going to visit there to find out what so good about it
What if buy during the bust, assuming bust boom bust boom will continue. Bad idea if no boom which would deviate from past pattern, no? So should evaluate whether the pattern would continue, right? Nobody say buy now, which is in boom phase.
Edit: Certain neighborhoods are notoriously bad too. Would be going there to investigate the “good” neighborhoods.
Ok, I love Vegas as much as anyone else but unless something has been announced/projected/estimated that would dramatically change Sin City I don’t know about taking a chance on it. As they say, it is your dime. I suppose if you bought in like a friend of mine did at dead bottom (some 4-5 bd home for under 300k) to be used as a man cave a few times a year might be ok for some short term gain and fun…
My experienced realtor told me exactly like this “Do not buy remote places where you depend on someone else ! Buy any property well within your driving distance. In case of any issue, you will be able to jump in and take care”
I always follow this, no exception no matter how good outside place are. There are plenty of local opportunities available here and it is well within our means.
Change in sentiment too?