Calculated RISK...or do they really mean common sense?

Let's go to the Real Estate "common sense" corner...what's really going on and what you really should consider. Solutions to getting into great real estate deals now. How does risk free real estate sound?

People trying to ride the wave of real estate can either jump in or be paralyzed by what they hear so let's get some facts on the table. Keep in mind, since there is no ceiling in real estate it means there is no bottom. Is real estate too risky? It can be if you don't know what you are doing. Consider house prices in California, stated in "the people history"; 1950 prices were around $14,500, 1960 prices around $18,500, 1970's around $26,600. What about now?

Look at what Zach Fox from the North Country Times in Calculated RISK Finance & Economics states in another Deal of the Week: Riding the waves in Oceanside (California). He states, "The featured 2 BR 2 BA condo sold for just under $100 thousand new in 1990. It went into foreclosure during the early '90s California housing bust, and was resold in 1995 for $33,000.

By 2000 the condo was above the original selling price. And then "rode the bubble" to an outrageous price. The condo went through foreclosure last year and sold in February for less than the original price in 1990! Adjust that return for inflation ..."

What does all this mean? If you knew how to read the market, understood what the current conditions were saying during the 1990's, would you have seen this wave coming?

History shows clearly the prices have gradually increased over each 10 year period. What I have come to learn is most people avoid the real estate arena because; they are scared to jump in, big time fear holds them back , they don't have the time to really know what or how to make a smart buying or selling decision, especially a lack of knowledge being so afraid to be "taken", rightfully so!
www.MoneyMama.biz

Common sense tells us we still have 3 basic needs which never go away.... food, water and shelter (www.MoneyMama.biz). We are still bringing babies into this world, our bodies require water and we still need a place to live. I invite you to get educated (www.MoneyMama.biz) and learn how simple, easy and smart it is to invest in real estate now. Learn what it takes to remove the fear of being "taken", understand buyer beware statements. Experience the opportunities of applying knowledge to make smart buying and selling decisions. Know how to benefit from real estate no matter what time you have available.

Knowledge alone is not power. Knowledge applied is power. Learn how to take charge of your financial situation today. If you are a first time home buyer, learn how to buy a property at wholesale. That means if the market goes down you are still in a position to have purchased at a great price. If the market goes up, you are sitting pretty. If you own multiple properties, buy more. Learn when and how to make smart buying and selling decision either in a good market, flat market or down market. Would that not give you the upper hand in today's economy? If you feel you are a seasoned investor, don't discount getting educated even if you believe you already know it all. Remember you don't know what you don't know.

Tired or Retired?

Interesting conversation today I had with my son. I was looking at articles about retirement and got into the Social Security stuff. Retirement is a HUGE deal for me, I’m one of those that never knew how to build for retirement, thinking I had a back up with Social Security but also knew I didn’t want to work till I was 70 to get my full SS payout. I also learned from my Mom’s wealthy friends it’s good to supplement if possible.
I looked up the Depression. I honestly can say I didn’t realize it went on for so long, twelve years? It began in 1929 and officially ended in 1941. Crazy stuff!!! My greatest memory of the depression. Hope was lost during this horrible time. The survival skills learned were more how to stretch the dollar vs learning how the dollar works and grows.
Now we are 3 yrs into our current recession. How much hope has been lost? I believe this recession has hit us like a sunburn. Playing out in the sun all day then come nightfall your skin starts feeling a bit tight but still unaware of a sunburn. Come morning you look hot pink and can hardly move :) It truely has caught most of us unawares! Now we begin the search for something to sooth our current situation.
I’m not getting into this to be depressive but to IMPRESS upon you how most of us feel like we are swimming up stream. I have talked with so many people, those who have earned 6 figures and now out of a job. Their lifestyle took them out of the game. They are downsizing not because they really wanted to but to survive they have to. My neighbor, $750,000 home, beautiful. Paid cash for toys and more toys and thought life is good so he took out a 2nd mortgage to start investing .... no education just a belief he knew what he was doing. His wife stayed home with the kids. They traveled and was living the “dream” However, He has lost it all. Investments did not sell, borrowed money from family members, home is currently in foreclosure. Now renting and living paycheck to paycheck with his wife back to work.
It’s time we define our dreams and have a burning desire to achieve them!!!!
Start with putting together your dream board. Don’t just put pictures of things you want, get your picture along side that item...car, house etc. The most important part of a dream board is to dream. Dreaming is not where you want to live day by day, let it be your path. Dream big, now put those dreams up on the shelf. Those dream are not the here and now but allows the law of abundance to kick in understanding where it’s directed to go. Now get to work, a burning desire is a must. My dream board says “Open the doors, I’ll do the work”. Awesome!!! Now you know where you are going and you will recognize it when you get there!!!

Create yourself a great day!
Jody