Real Estate Meet Up – Last Night (October 17, 2017)

I attended a real estate meet up last night… Say what!?! Yup, that’s right, on a whim I decided to join a good buddy of mine and attend a workshop out in Fremont. I’ll admit, being in a classroom environment (after avoiding it for so long) felt kind of weird at first, and as the room started to get filled with more and more people, things just became more and more uncomfortable for me…

In case anyone is new to this blog and wondering, many moons ago I used to be a big proponent of real estate… In fact, I used to believe that it was my preferred vehicle to get to and sustain early FI… However, in the middle of 2015, my thoughts started to change greatly… When I looked around me all I saw were the following:

  • Overpriced assets.
  • Low returns.
  • Insane FOMO.

And after last night, well, I guess you could say that not much has changed for me on the real estate front… things are even worse off now than they were in 2015 (much worse). Although I haven’t followed the real estate market pretty much at all since 2015, by the looks of the faces in the classroom, shit, interest is still through the roof… and I’m guessing the Fear Of Missing Out (FOMO) is at unprecedented highs right now…

Way too many eager and greedy people…

Thanks, but no thanks…

Actually, if anything, by attending last night’s real estate session, I’m now convinced more than ever that it’s a fabulous time to be involved in precious metals, mining stocks, and commodities…

Go where the people ain’t…

Seriously, I have no idea why anyone would feel hellbent on getting in on real estate right now?

You’re fighting for scraps at this late stage of the game… and I’m trying to be a picky guy… If I can’t get Class A properties in the best locations that cash flow all day and night long, forget it…

I’d rather wait in NO LINES and buy up all the discounted miners that I can, hand over fist…

So yeah, you can say real estate still has me feeling pretty jaded… I’ve got absolutely no love for that asset class right now…

But markets are cyclical and market cycles repeat throughout time and history; we forget that, and quite frankly, I think most people don’t give a rat’s ass because buying at the top of the market ALWAYS feels so freekin good…

 

Until the music stops…

 

Sorry if I sound like I’m in a bad mood… The thought of real estate right now just leaves a very bitter/sour/nasty taste in my mouth…

 

Fight On!

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Financial SamuraiFI FighterMidwestern LandlordJoeMike Recent comment authors
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Financial Samurai
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Interesting feedback that the desire for real estate is even higher now than 20% lower ago.

What is the reason why you’re bitter? You profited from real estate quite handsomely.

I just sold my rental house this summer. I just didn’t want to be a landlord anymore with the new baby. I figure the timing was OK as well, at least way better than when I tried for sale in 2012!

Sam

Mike
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Mike

Thanks for this! I have been waffling back and forth on starting to pick up some Memphis rental houses (in the better areas), on the basis that its what Jason Hartman calls a “linear” market, and to slowly ease in as prices hopefully drop but get some of the tax benefits now.. I think I’m a good contrarian indicator of my own because every time I get really focused on real estate research (markets, strategies, general mechanics) it is when mining stocks are going to crap and I’m doing it to distract myself.. Thats just when I should be focusing on buying more mining stocks! 🙂

At the same time I can’t have all my money in junior resource sector stocks, I tell myself.. which is how I rationalize real estate to myself. Plus I have 0 real estate holdings except for my house in the Austin suburbs that I bought recently.. thats probably more than enough. 🙂 Curious what you have besides cash and mining stocks? I have been thinking about funds that buy Life Settlements (http://cashflowninja.com/kevin-nichols/) , I participated in an Oil & Gas drilling partnership that should make money even at $20 oil and the intangible drilling costs are able to offset some W-2 income. I am considering conservation easement trusts to get rid of even more taxes.. and I am awfully tempted to buy into a syndication that owns mobile home parks. Any thoughts on these things? Thanks love your stuff!

Joe
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Joe

Have you tried attending a precious metals or mining stocks meet-up?

Midwestern Landlord
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Midwestern Landlord

Absolutely, buying class A properties right now in the hot markets does not make much sense from a risk reward standpoint. However, it does not take away all of the benefits of buying real estate when the market pricing is right (which you did). Have you thought about selling your real estate holdings? It seems like a great time to do so.

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