CNBC's Real Estate program - Posted by Doug (ON)

Posted by Ronald * Starr on August 19, 2001 at 20:33:57:

Dave T------

You’ve got a promising future ahead of you as either a headline writer or an advertising copywriter. Why don’t give up this real estate stuff for your true calling?

“Dave T proves toplessness is topic of interest to all. Makes fortune with full disclosure with relish.”

You haven’t convinced me, however. I don’t mind a little puffing. But I don’t like the heading on that piece.

Good InvestingRon Starr***

CNBC’s Real Estate program - Posted by Doug (ON)

Posted by Doug (ON) on August 18, 2001 at 09:25:59:

For everyone who missed CNBC’s RE investing report last night, here’s the address to the article:


Re: CNBC’s Real Estate program - Posted by Ronald * Starr

Posted by Ronald * Starr on August 18, 2001 at 20:17:44:

Doug (ON)----

Thanks for the reference. I read it over.

Well, that kills the speculation that we could learn something that would help us make money with real estate. What a misleading heading.

There were no ways there to invest in real estate. They mention four ways to invest in stocks related to real estate: REITS, Mortgage-holding institutions: companies that own huge portfolios of mortgages such as Washtington Mutual Bank, and such institutions as FNMA, and they don’t even mention it by name,and stocks of new home builders. They may be ok investments, but they are investments in stocks, not in real estate.

Then they recommend owning your own home. Since 68% or 69% of Americans already own their own homes, what kind of screwy advice is this? Most of those who do not own homes probably don’t want to or can not afford to do so, so how is this recommendation supposed to help them? In fact, for the people who could afford to invest and use the information provided, probably 90% already own their own homes.

And I don’t recommend that people should necessarily own the home where they live. Economically, it is usually cheaper to rent in an up-scale neighborhood than it is to own. Emotionally, some people would prefer to own anyway, even it is not the best approach financially. Instead of sinking money in an expensive owner-occupied home, invest in lower-cost rental properties. The returns will be greater than owning a high-cost home, if done properly.

A misleading heading. A truly disappointing source of “investment advice.” Worthless, in my opinion.

Good Investing and Good Ignoring the Media NonsenseRon Starr**

Re: CNBC’s Real Estate program - Posted by Dave T

Posted by Dave T on August 18, 2001 at 23:23:18:

The CNBC Article was titled “The List: 5 ways to invest in real estate”

I also read the article. While I did not find any information about investing in real estate in the creative ways discussed on this board, the article DID live up to its heading. It actually did discuss five ways to invest in real estate – though only one (owning your own home) required you to buy property.

Investing in the home builders, the mortgage companies, real estate backed securities, and the real estate holding companies IS investing in the real estate market.

The article was just presenting another way of thinking about the box.

Amen! - Posted by Doug (ON)

Posted by Doug (ON) on August 18, 2001 at 20:32:22:


I guess CNBC isn’t in the business of recommending real estate, just switching it on for a few minutes will tell you what area of investing they focus on.

“New home starts was up this month 50% and existing home sales continued setting records…in other news, AOL just moved up 1 penny, congratulations all you smart investors who are holding that one! Bob will be on in 30 minutes to tell you more about this amazing tech recovery, stay tuned.”

Not to say there isn’t money to be made in stocks, of course there is. But for all of us who are serious about making our primary wealth-base from RE, obviously articles and programs like this one, run on a stock watching channel, aren’t the best way to learn things.

Thanks for your comments,

Re: CNBC’s Real Estate program - Posted by Ronald * Starr

Posted by Ronald * Starr on August 18, 2001 at 23:42:11:

Dave T-------

I prefer honesty in headlines or article names. I feel this is not honest. I’d prefer something like “How in invest in stocks related to real estate” or “How to invest in real estate-related stocks” or something like that.

What if is was about owing stock in automobile manufacturers? How would you feel about “How to make money with cars”? Would you feel that is honest? I would not.

Good InvestingRon Starr******

Re: Amen! - Posted by Ronald * Starr

Posted by Ronald * Starr on August 18, 2001 at 23:08:43:


Yeah. And there was another post on a Forbes magazine article and the coming real estate bust. I’ve printed it, not read it yet. But I’ve found them in the past to be a poor source of information about real estate.

It seems that most stock folk just don’t understand real estate investing. They rarely understand the value of leverage, one the great things about real estate.

Well, I guess we’ll just have to wait for the “great idas in real estate investing” from the mass market media. Like maybe two thousand years.

Good InvestingRon Starr****

Re: CNBC’s Real Estate program - Posted by Dave T

Posted by Dave T on August 19, 2001 at 02:54:25:

It’s just marketing. The teaser to get you to read the story is the headline. I don’t think the headline was dishonest. The story showed four ways to profit from real estate without having to own property.

What if the story had been a health article extolling the lower calories of an open face sandwich. Now unless you were specifically interested in foods that reduce your caloric intake, you probably would not even glance at the article if the headline read:

Open Face Sandwich Saves Calories

But what if the headline read: Going Topless Cuts Calories

Effective marketing, don’t you think?