Comments on: Can Real Estate ever ‘Bust’? http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Real Estate Taxi http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-341268 Real Estate Taxi Wed, 01 Jul 2009 15:00:09 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-341268 Investing in real estate is definitely a smart business move. There will always be a need for real estate, you just need to be smart about the areas you invest in. Walt Investing in real estate is definitely a smart business move. There will always be a need for real estate, you just need to be smart about the areas you invest in.

Walt

]]> By: 1031exchangetotics http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-114847 1031exchangetotics Mon, 26 Mar 2007 09:22:30 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-114847 A leading 1031 exchange and TIC service provider with expertise in 1031 exchange rules and finding 1031 replacement properties. We provide guidance on Tenant in Common investments and 1031 Property exchanges. A leading 1031 exchange and TIC service provider with expertise in 1031 exchange rules and finding 1031 replacement properties. We provide guidance on Tenant in Common investments and 1031 Property exchanges.

]]> By: 1031exchangetotics http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-21611 1031exchangetotics Thu, 12 Oct 2006 13:29:00 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-21611 A leading 1031 tenants in common (TIC) exchange services that helps to learn exchange rules and to find 1031 replacement properties. Also a guide for useful information on Tenants in Common and Property exchanges. A leading 1031 tenants in common (TIC) exchange services that helps to learn exchange rules and to find 1031 replacement properties. Also a guide for useful information on Tenants in Common and Property exchanges.

]]> By: Janice http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-4183 Janice Tue, 04 Apr 2006 17:34:09 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-4183 For those who are losing faith in real estate as a great investment, just broaden your view and see where in the nation the market is better for your investment purposes. No one says that the only market is in your back yard. Where one market is slow, another is booming. For those who are losing faith in real estate as a great investment, just broaden your view and see where in the nation the market is better for your investment purposes. No one says that the only market is in your back yard. Where one market is slow, another is booming.

]]> By: Eileen http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3714 Eileen Thu, 30 Mar 2006 16:33:27 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3714 Good luck with those. They're time consuming, expensive and not much profit. We've got about two dozen under our belts and the ones we made profit on had something else going for them besides just a remodel. As I said before, hard to make a profit merely on the rehab, remodel flip. Good luck with those. They’re time consuming, expensive and not much profit. We’ve got about two dozen under our belts and the ones we made profit on had something else going for them besides just a remodel. As I said before, hard to make a profit merely on the rehab, remodel flip.

]]> By: ARDELL http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3661 ARDELL Wed, 29 Mar 2006 03:49:19 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3661 We haven't done anything for ourselves at this point, as we try to find a client who can profit, when we see a good property. But we are thinking of doing 3 flip projects to have three complete "how to" examples" for clients. I think anything with a view is always worth having. My partner, Kim Harris, is the "area expert" of our team, and the one who deals more with investor clients. He says Des Moines, Seward Park, West side of Newcastle, parts of Matthews Beach, Richmond Beach and North Beach. Des Moines being his top pick. Eastside, between Redmond and Sammamish just off of the plateau. We haven’t done anything for ourselves at this point, as we try to find a client who can profit, when we see a good property. But we are thinking of doing 3 flip projects to have three complete “how to” examples” for clients.

I think anything with a view is always worth having.

My partner, Kim Harris, is the “area expert” of our team, and the one who deals more with investor clients. He says Des Moines, Seward Park, West side of Newcastle, parts of Matthews Beach, Richmond Beach and North Beach. Des Moines being his top pick. Eastside, between Redmond and Sammamish just off of the plateau.

]]> By: Eileen http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3660 Eileen Wed, 29 Mar 2006 03:23:00 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3660 How about White Center and Burien. They're up and coming and much better value than West Seattle and Capital Hill. We've bought in the Central District, the Lid, etc. You've got to hunt and look for other ways to make a profit than remodel. Saw two houses on one lot today. Splitting them apart is another way to go. I still say real estate is a great investment vehicle if bought right. I use 1031, but like Osman, I have a big bunch of real estate in my Roth IRA. Love it as I never have to pay taxes on the gain.Getting ready to feature 401K self directed investments on my web page. NO UBIT tax on those, Osman. How about White Center and Burien. They’re up and coming and much better value than West Seattle and Capital Hill. We’ve bought in the Central District, the Lid, etc. You’ve got to hunt and look for other ways to make a profit than remodel. Saw two houses on one lot today. Splitting them apart is another way to go.

I still say real estate is a great investment vehicle if bought right. I use 1031, but like Osman, I have a big bunch of real estate in my Roth IRA. Love it as I never have to pay taxes on the gain.Getting ready to feature 401K self directed investments on my web page.
NO UBIT tax on those, Osman.

]]> By: ARDELL http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3653 ARDELL Wed, 29 Mar 2006 00:58:59 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3653 Personally, I think the areas that may/will be annexed to City of Kirkland are good investor markets. Buy an ugly as sin condo, the ugliest beat up one you can find in Juanita or fixer in Finn Hill. They haven't appreciated as much as Downtown or Houghton, are still good values relatively speaking, and bet on the fact that they will be annexed. Check with City of Kirkland regarding the border streets of the proposed annexation. Fix them, remodel them, rent them or flip them or hold them until they are annexed. Anyway you slice it, I think some of them are good values, but some are not good construction, so be careful out there to pick the good ones! My $.02 Personally, I think the areas that may/will be annexed to City of Kirkland are good investor markets. Buy an ugly as sin condo, the ugliest beat up one you can find in Juanita or fixer in Finn Hill. They haven’t appreciated as much as Downtown or Houghton, are still good values relatively speaking, and bet on the fact that they will be annexed. Check with City of Kirkland regarding the border streets of the proposed annexation.

Fix them, remodel them, rent them or flip them or hold them until they are annexed. Anyway you slice it, I think some of them are good values, but some are not good construction, so be careful out there to pick the good ones!

My $.02

]]> By: Grier Smith http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3652 Grier Smith Wed, 29 Mar 2006 00:32:18 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3652 Tim- Your question… “Should underwriting guidelines be tighter?” In my opinion, if mortgage brokers follow the rules of the guidelines that are in place, and take the time to understand borrowers’ objectives, then the loan guidelines are appropriate. The key phrase is FOLLOW THE RULES! Mortgage Brokers who overstate income on “Stated” loan programs are NOT following the rules. Mortgage Brokers who lead borrowers into “Option ARMs” that will give borrowers a false sense of security with low initial payments are unethical, and NOT following the rules. I just don’t have the disposition to play loose with the rules, and I’ve found that in the long run, it makes for happier borrowers, happier agents, and a better night's sleep. :) Tim-

Your question… “Should underwriting guidelines be tighter?” In my opinion, if mortgage brokers follow the rules of the guidelines that are in place, and take the time to understand borrowers’ objectives, then the loan guidelines are appropriate.

The key phrase is FOLLOW THE RULES! Mortgage Brokers who overstate income on “Stated” loan programs are NOT following the rules. Mortgage Brokers who lead borrowers into “Option ARMs” that will give borrowers a false sense of security with low initial payments are unethical, and NOT following the rules.

I just don’t have the disposition to play loose with the rules, and I’ve found that in the long run, it makes for happier borrowers, happier agents, and a better night’s sleep. :)

]]> By: osman http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3651 osman Tue, 28 Mar 2006 23:54:16 +0000 http://raincityguide.com/2006/03/27/can-real-estate-ever-bust/#comment-3651 Ardell - the short 1031 exchange window is why Dallice (my partner) recently posted about <a href="http://boulderrealty.blogspot.com/2006/03/ira-to-purchase-real-estate-yes-even.html" rel="nofollow">using your IRA as a vehicle for real estate investing</a>. Has more flexibility when it comes to time, but certain other limitations. Investors should consider the IRA alternative. Eric - don't forget factors that puts real estate ahead of the stock market for most investors. (1) you can live in real estate ( gotta live someplace), (2) more/cheaper financial leverage, (3) interest deductions, (4) capital gains exceptions for primary residences (5) in the case of single stocks (vs index funds) - much lower volatility. Your home isn't going to drop 30% in value overnight because the company missed it's quarterly earnings by $0.03. It's certainly arguable (in bubblicious markets) that now isn't the best time to be buying real estate. Hey, people have been saying that for years. But even if certain markets are cooling, not every area will get caught in the downdraft of the bubble. As I've said (ad nauseum?), the Boulder/Denver region didn't experience <a href="http://boulderrealty.blogspot.com/2006/02/house-price-index.html" rel="nofollow">the bubble (01-05)</a> and we aren't likely to experience a bursting bubble (save psychological impacts). -Osman Ardell – the short 1031 exchange window is why Dallice (my partner) recently posted about using your IRA as a vehicle for real estate investing. Has more flexibility when it comes to time, but certain other limitations. Investors should consider the IRA alternative.

Eric – don’t forget factors that puts real estate ahead of the stock market for most investors. (1) you can live in real estate ( gotta live someplace), (2) more/cheaper financial leverage, (3) interest deductions, (4) capital gains exceptions for primary residences (5) in the case of single stocks (vs index funds) – much lower volatility. Your home isn’t going to drop 30% in value overnight because the company missed it’s quarterly earnings by $0.03.

It’s certainly arguable (in bubblicious markets) that now isn’t the best time to be buying real estate. Hey, people have been saying that for years. But even if certain markets are cooling, not every area will get caught in the downdraft of the bubble.

As I’ve said (ad nauseum?), the Boulder/Denver region didn’t experience the bubble (01-05) and we aren’t likely to experience a bursting bubble (save psychological impacts). -Osman

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