In the 1970's, I spent a few summers with my grandfather when he needed help working his cranberry bog on Cape Cod. One hot summer day, I noticed he kept looking at the homes being built on a side of Scargo Hill just above Scargo Lake. I wondered what he was looking at and asked.
He replied with a dissatisfied, "I Sold too soon."
Being 16 at the time, I did NOT understand.
He continued, saying, "I used to own that land. But, I sold too soon. I should have waited for the developers."
Then, in the 1980's, I moved to Los Angeles and worked in TV and Film production. I remember that the must have investment during this time were the upstart computer companies. They were all the rage. I watched as several of those companies did mange to survive and thrive and grow into the biggest companies in the world. But I also noticed that dozens -- maybe as many as hundreds of these start ups fell into bankruptcy, losing their investors millions of dollars.
During this time, I had bought several residential properties that I would "fix up" and then would in turn 'flip' the property at a profit making an okay amount of money. Then, I'd do it again.
Then, when I moved to Las Vegas in the 1990's, internet companies were all the rage. Again, I watched as several of those companies did manage to grow and become computer internet search industry leaders. Then, again, there were dozens -- maybe as many as hundreds of these start ups that fell into bankruptcy losing their investors millions of dollars.
But, during the early 2000's, tech stocks still came and went with little fanfare. There was a war against terrorism and the housing market was growing rapidly. And, Las Vegas real estate caught on fire.
However, I stayed away from the Las Vegas real estate growing market because I felt that something was wrong. Call it a gut feeling. But, when several of my fellow RE Brokers were excited about the 100% financing on "stated income" loans that Wall Street couldn't get enough of as can't lose propositions, I felt I had made the wrong decision to stay out.
But soon the market changed. Buyers were no longer qualified to acquire the over priced properties. And, as time ticked into the future, these very same brokers that were buying real estate; trying to lease up, fix, and flip them at a higher than normal return were going broke.
You see, I felt that it was impossible for a normal 3% ROI in real estate -- that we had for 40 to 50 years -- to suddenly blossomed to 20% ROI in the course of a few years. Of course, some of these investors did make money. But most -- dozens that I can think of out of the maybe tens of thousands that tried to ride this false economic wave -- went flat broke in 2008 when the stock market collapsed. Some of these RE Brokers are no longer in the business.
The rest of us survivors, who were more cautious with our investing, are still here working diligently.
Sure, tech stocks can make you a lot of money. But, as I learned from my grandfather, real estate is where the smart money is. And, the real wealthy real estate investors are buying up net leased properties right here in Las Vegas because they know that investing in real estate has a certain element to it known as equity that will out last any stock -- especially since stocks are more vulnerable to losing your hard earned money.
IF a real estate property is acquired correctly, that property should make a lot of money over the years with the consistent rental income.
True, a market crash affects everything. But, even during a crash, the correctly bought rental property income still gets paid. And, you as the property owner, still has income being deposited into your bank account. It is income that should stay steady even during trying times.
Unfortunately, Tech Stocks don't pay a regular monthly income. You buy it for the proposed dividends and promised stock value increase. AND, you ONLY get this IF the company becomes profitable and the stock increases in value. And, if the value of the company goes down, so does the stock value. And then, where is your dividend? It certainly is NOT paying you a regular monthly income. So, recouping your initial investment is like a tech stock, virtually gone.
And what would you rather have? A valueless busted stock? Or real estate that you "own" and control. AND, it should over time accumulate equity -- in a normal fashion.
CRE is like a destiny. Its overall value might lower during bad economic times, but YOU STILL OWN IT. It will still be worth something as we move into the future.
And, just like my grandfather had surmised forty years ago, while you wait for the developers, you continue to earn equity.
For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!
He replied with a dissatisfied, "I Sold too soon."
Being 16 at the time, I did NOT understand.
He continued, saying, "I used to own that land. But, I sold too soon. I should have waited for the developers."
Then, in the 1980's, I moved to Los Angeles and worked in TV and Film production. I remember that the must have investment during this time were the upstart computer companies. They were all the rage. I watched as several of those companies did mange to survive and thrive and grow into the biggest companies in the world. But I also noticed that dozens -- maybe as many as hundreds of these start ups fell into bankruptcy, losing their investors millions of dollars.
During this time, I had bought several residential properties that I would "fix up" and then would in turn 'flip' the property at a profit making an okay amount of money. Then, I'd do it again.
Then, when I moved to Las Vegas in the 1990's, internet companies were all the rage. Again, I watched as several of those companies did manage to grow and become computer internet search industry leaders. Then, again, there were dozens -- maybe as many as hundreds of these start ups that fell into bankruptcy losing their investors millions of dollars.
But, during the early 2000's, tech stocks still came and went with little fanfare. There was a war against terrorism and the housing market was growing rapidly. And, Las Vegas real estate caught on fire.
However, I stayed away from the Las Vegas real estate growing market because I felt that something was wrong. Call it a gut feeling. But, when several of my fellow RE Brokers were excited about the 100% financing on "stated income" loans that Wall Street couldn't get enough of as can't lose propositions, I felt I had made the wrong decision to stay out.
But soon the market changed. Buyers were no longer qualified to acquire the over priced properties. And, as time ticked into the future, these very same brokers that were buying real estate; trying to lease up, fix, and flip them at a higher than normal return were going broke.
You see, I felt that it was impossible for a normal 3% ROI in real estate -- that we had for 40 to 50 years -- to suddenly blossomed to 20% ROI in the course of a few years. Of course, some of these investors did make money. But most -- dozens that I can think of out of the maybe tens of thousands that tried to ride this false economic wave -- went flat broke in 2008 when the stock market collapsed. Some of these RE Brokers are no longer in the business.
The rest of us survivors, who were more cautious with our investing, are still here working diligently.
Sure, tech stocks can make you a lot of money. But, as I learned from my grandfather, real estate is where the smart money is. And, the real wealthy real estate investors are buying up net leased properties right here in Las Vegas because they know that investing in real estate has a certain element to it known as equity that will out last any stock -- especially since stocks are more vulnerable to losing your hard earned money.
IF a real estate property is acquired correctly, that property should make a lot of money over the years with the consistent rental income.
True, a market crash affects everything. But, even during a crash, the correctly bought rental property income still gets paid. And, you as the property owner, still has income being deposited into your bank account. It is income that should stay steady even during trying times.
Unfortunately, Tech Stocks don't pay a regular monthly income. You buy it for the proposed dividends and promised stock value increase. AND, you ONLY get this IF the company becomes profitable and the stock increases in value. And, if the value of the company goes down, so does the stock value. And then, where is your dividend? It certainly is NOT paying you a regular monthly income. So, recouping your initial investment is like a tech stock, virtually gone.
And what would you rather have? A valueless busted stock? Or real estate that you "own" and control. AND, it should over time accumulate equity -- in a normal fashion.
CRE is like a destiny. Its overall value might lower during bad economic times, but YOU STILL OWN IT. It will still be worth something as we move into the future.
And, just like my grandfather had surmised forty years ago, while you wait for the developers, you continue to earn equity.
For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!
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