Wednesday, April 26, 2006

It's hotter than Tamales and I don't like it

I am now looking at two homes for my clients in Seattle Real Estate price ranges of 380k-$500k, and they both will have mulitple offers. Isn't the real estate market suppose to have a crash, and bust? Well I thought so, with the new home sales numbers for February coming in well below expectations. Now today we had a 13.4% jump in new home sales. A report came out, and the stock market jumped, and I along with other real estate experts am just baffled:-)

So what to do now, do we buy, do we sell, do we hold? Never sell real estate unless you have to is what I was told. They were probably right, do you remember them, they are always right. In Seattle we have a lot of high-tech people and they always know! Do you have those same smart people in Minneapolis, Portland, San Francisco, Cabo San Lucas?

Any way, what really is the smart thing to do with real estate investments, purchases, and sales. Invest smart, buy smart, sell smart. Sounds too easy, well it isn't. Don't get carried away, but buy a lot of real estate properties, maintain good credit, and always be on the look out for a deal. And, always maintain a substanial liquid position, so that over leverage never sneaks up on you.

So the market is hot, the market is cold, it is what it is, and will always will be. That is the real estate game in Seattle or where ever you live.

I made 80k in a LEAP option play back in 1999. And, trust me that was a lot of money to me than, and it is now. I asked a professional investment expert at Salomon Smith Barney. The guy had been in the stocks and bond business for over 20 years. And, he gave me some super smart advice, which I used to minize my risk. Here is what he said:

The bears will make money in a Bear market. The bull's will make money in Bull market, and Pigs get slaughtered. So be smart, and be cautious, don't be a pig!

Sent from my BlackBerry wireless handheld.


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