investing in the real estate market

Discussion in 'Trading' started by ADX_trader, Nov 21, 2003.

  1. Any trader who also invest in the real estate market? Can you use TA in it? How do you analyse the market prices?

    Is R/E must be a long term investment? I know there were many short term speculation in the Japan and Hong Kong property markets but they all gone now. Is it possible in Eurpoe and the USA?

    Is there any forum for R/E investment?
  2. What vehicle are you going to use? REIT, Homebuilder, Home Depot?

    Are do you want to buy land and develop a home? Or invest money privately with a builder?
  3. The RE market is extremely tuff to invest in now. I just recently bought a shopping center, but I spent two years looking for it. The problem is the CAP rates are so low; especially with net leases. When investors came out of the stock market, many of them went into RE; that drove up the prices, and they have remained there.

    Another thing to keep in mind is the interest rates. When they go down, RE prices go up, and vice versa. My opinion is that you have to be really careful if you choose to invest in RE now. When the interest rates go back up, you will not be able to sell the property without a loss if you pay too much for it and have a low CAP rate.

    Unless you have time and access to screen alot of different properties and know the immediate market, I would look to invest somewhere else. Most of the good properties are bought up by REITS and other big players before it ever gets on the market; and any other properties worth having are snapped up by shrewd investors when they first hit the market.

    Just my opinion.
  4. I sell commercial real estate and our clients are doing very well right now. Anyone wanna buy a four star hotel in Chicago?

  5. From what I've seen, brokers are doing better than their clients.
  6. ===
    [1]Find an area your personality likes;

    saved newspaper ads for years for general guide.

    [2]Sold a piece of property myself;
    but prefer experienced broker,lawyer & library-may take 2 or more years. Another edge, gave my broker Christmas , other gifts also.

    [3]Sure glad the female lawyer -judge we always used always wrote into the contract could never be sued for an deficiency balance. If financed, loss limited to payments.

    Also some got in trouble because lender got bought out.

    Love learning- Solomon, trader king:cool:
  7. CalTrader

    CalTrader Guest

    Pretty much agree with this: there are still a few select deals around but the quality of the deals in our markets are marginal at best. Based upon demographics and the current interest rate situation a continuing real estate investment strategy will need to take advantage of cyclical market characteristics to succeed.
  8. This book may be of help...

    The guy who wrote it has 30 years experience buying, holding, and selling single family homes and apartments in the San Diego, California area. He has made a fortune and lost his a** at different times before getting a handle on things.

    For the last ten years he has ended up coming up with a chart combining data from unemployment, interest rates, forclosures, and a couple of others that elude me...into an indicator that tells him when to stay and when to bail on his holdings. I believe his indicator told him to get out of the market in late 1989, and back in around 1995, so he has done very well of late.

    His personal experiences, pain, and conclusions are an interesting read.
  9. If someone is seriously interested in investing in real estate and is a qualified buyer, PM me. We have some really good deals available. I can't disclose anything on a public forum but lets say you could've made a few million last month by getting the right deal. This wasn't on a very expensive property either...we're talking less than $12 mil.

  10. PhilipS


    I agree with comments by all. As recently as last year I was an investment real estate broker (NYC) and the pitch professional brokers give their clients at the most rarefied levels is that now is the time to 'sell into strength' while you still can. All serious, multi-generational real estate families are refining their portfolios in preparation for a tumble in valuations. The best buildings in this city trade for 5 and 6 caps--double digits do not exist at title transfer for retail-type investors. Put another way, I am looking often and diligently for short entry points into REITs with maximum exposure to the waifish caps in Manhattan.

    Buy the upcoming dip.
    #10     Nov 21, 2003