Will real estate be here in 3 years - Posted by Asaf

Posted by greenr on March 20, 2005 at 24:16:28:

well said, ski

Will real estate be here in 3 years - Posted by Asaf

Posted by Asaf on March 19, 2005 at 15:34:37:

Hello,

My name is Asaf and I currently live in Israel, studying for my degree in Law & Economics (first year).
My wife is an American Citizen, also studying for a degree (Fashion Design).
The plan is to move to the USA after getting the degree.
I know I want to be on the real estate business, I read lots of books and went throught all the websites.
It really seems like its relatively “easy” for someone intelligent to succeed in the real estate business.

Now, my dilemma is:
The interest rate in the USA is only going up, real estate prices rising everywhere, and lots of people are getting into real estate after reading the Rich Dad books…
Am I losing my chance here?
What do you think - should I just give up the degree so I won`t miss my chance?

Thanks in advance for any insights and advice,

Asaf

Re: Will real estate be here in 3 years - Posted by Redline

Posted by Redline on March 19, 2005 at 22:39:55:

“It really seems like its relatively “easy” for someone intelligent to succeed in the real estate business.”

Real Estate is a great business, but I think if you ask around and talk to people that are really IN this business you’ll find most of them will tell you … this business ISN’T EASY. Hell it’s not digging dithces, but it’s not easy either. And it has NOTHING to do with how smart you are. That’s fact.

Good luck,
RL

PS: Markets up, markets down - who cares? There’s always opportunity.

Where will you be in three years? - Posted by DaveD (WI)

Posted by DaveD (WI) on March 19, 2005 at 20:57:07:

Asaf, you are worried about interest rates going up over three years? What are rates in yoru neighborhood? Let’s get a little perspective.

My first purchase was back in '79, where I was “fortunate” to obtain a 11 7/8% loan. Usury at the time was 12% I thought I paid too much for the house. Our friends thought we were nuts. BTW, the prime rate peaked at 22% within the year after.

My second buy was during the “recession” of 1984 1/2 where long term rates were at 16 3/4 and we “gambled” at taking a one year ARM at 14 1/2 because we were sure rates would go down. We were right. We “locked in” one year later long term at 9 1/2. I thought we paid too much for the house. Our family thought we were crazy.

At the end of the day, it didn’t matter how much we paid, what rate we paid at, we still came out ahead long term. “Rates” don’t scare me because I figured out what to do no matter if rates were going up, down or sideways. I laugh at my friends who freak at the stock market when interest rates “spike” up a half point.

John Behle wrote a great thread a few posts down

http://www.creonline.com/wwwboard/messages/68376.html

about being an investor. Pay attention to what he said. Don’t worry about the chatter going on around you. I still own those “over-priced” houses, and you know what? Nobody cares what I paid or the circumstances I bought them under. They only care about what they are worth today, and what they are earning. I think I did “good 'nuff” to quote Lonnie.

Re: Will real estate be here in 3 years - Posted by Killer Joe

Posted by Killer Joe on March 19, 2005 at 16:23:25:

Asaf,

Don’t be in a hurry to do any thing rash. Everybody that enters the market in three years will have the same chance as everyone in the market today.

Try to put this in perspective. It is not what’s happening in the market that will determine your success or failure, it’s what’s happening between your ears that is the critical factor.

Here’s some more food for thought. If you take the three years you are talking about, and use that time to devour every piece of information you can regarding REI, you will be light years ahead of 99/100 newbie investors entering the market at that time. Will this help you achieve your goals. You bet, everybody has to go thru the learning curve.

Now suppose in three years when you’re ready that the market is substancially down at that point. Is that a good time to enter the market? All the rest of us will be going like crazy buying up all those good deals from the people that entered the market today and had no staying power.

Additionally, if your drive is at a level that you feel comfortable investing from afar, nothing says you can’t jump in when a bonified opportunity comes your way. The best way to recognize a good opportunity is to be educated to a level where you do not have to rely on other peoples judgement about any given deal. You know what makes a good deal, you know the steps needed to complete the deal, so you take action.

Something else to think about, REI is a job, it’s a lifestyle (self employment), and it has a higher risk than working for the man. No bennies, 401Ks, health ins, etc. But the paydays for those who are good at this craft far outway the negatives, but you have to possess the right mindset to pull it off.

Your comment about being reletively “easy” is as true with this craft as it is for an accomplished musician to play their instrument. If you wanted to play piano, you could take piano lessons and in no time you could be playing piano for hours every day. Could you make money playing piano when you first start out? That depends on your talent. Some people can, others can’t, same in this biz.

Either way, a sound education is the foundation for success in REI and L&E. My bet is that the degree you are pursuing will help you immensely in RE, so I would say stay your course until you’re comfortable jumping in, you can do both if you have the determination.

Just my thoughts, all the best.

Hey, I resemble that remark! - Posted by Wayne-NC

Posted by Wayne-NC on March 20, 2005 at 07:22:30:

“And it has NOTHING to do with how smart you are.” Maybe I was just lucky, because that is the other alternative. Actually, I am interested in you adding to your comment.

Re: Will real estate be here in 3 years - Posted by Turk from CLT

Posted by Turk from CLT on March 19, 2005 at 18:16:42:

Shalom Asaf,
What Killer Joe wrote just saved you thousands of Dollars and took many years off your learning curve.

The number of people who are entering to the RE arena thanks to Mr Kiyosaki is unimaginable. Average life span of a RE investor is 9 months.

It’ll take some time to sort thru the ton of “Gurus” out there simply playing the numbers game to market crappy information to the newcomers.

Real Estate Investing will be here as long as there are people with financial dificulties. After all Real Estate Investing has nothing to do with houses, it’s all about finance.

I’d start by reading whatever else Killer Joe has posted. Infact I am going to that right now.

All the best
Turk

Re: Hey, I resemble that remark! - Posted by Redline

Posted by Redline on March 20, 2005 at 22:11:53:

Well yes luck is nice, and sack is helpful. It’s good if you’re smart but alot of smart people are stupid … if you know what I mean.

RL

Re: Will real estate be here in 3 years - Posted by ski

Posted by ski on March 19, 2005 at 19:38:26:

ed u kat shun read this site evry day