I've enclosed a question I received from an entrepreneur recently.
I thought you might like my take.
Question: Marc, what's your take on making money with real estate in the current economy?
M.F. Apple Valley MN
Answer Marc Charles:
In 2004, I mentioned more than a dozen times in my newsletter, blog, speeches and conferences real estate would end badly.
conference organizers did not want me back....even though I was the
most popular speaker at two of the conferences (according to an attendee
The reason the organizers did not want me back
is because I kept talking about a "depression" and real estate collapse
(in most areas of the US).
Anyway, that was yesterday....what have you done for me today!
We've all seen the real estate fiasco...and some people have been devastated by it.
the real estate boom (ans BUST) was predictable. If you had eyes to
see, you would have known the boom was not going to last.
I saw a cashier from a local convenience store drive into her triple
car garage, which was attached to a $400,000 home, I knew the boom was
toast. This was in 2005. The boom lasted another three years, and then
Almost everyone I knew, 90%+, was bullish on
real estate from 2004-2008. The reason everyone was bullish is because
in most cases they were making money.
But then the market collapsed....and is still collapsing.
people never realize, or refuse to realize, they're involved in
hysteria. But all it takes is simple, common, horse sense. You can also
seek wise counsel from someone who's already lived through hysteria or
"madness of the crowd". In many cases wise counsel will be twice your
I've made money on real estate. But I've also
avoided major losses. I did not lose one thin dime in real estate from
2004-2009. I was also not underwater with mortgages.
Anyway..enough with the long winded response!
can make money on real estate in a Depression. The key is buying at
super deep discounts, not being over-anxious about doing deals (or
fearful), and paying cash whenever possible.
The problem with most foreclosure properties is finding a clear title, and a property with no liens. But that's another topic.
The days of Fix and Flip are over for now! This market may not recover for 10 years...if ever.
But you can still find incredible deals, offer even less, wait for your terms, and rent the property.
Drop me a note if you'd to know about specific markets I'm considering.
I hope that helps!