What is the one question newbies should be asking but aren't?

[Emperor_Earth]

Title says it all.

[fdjake]

What is this house going to be worth when I get it finished??

This market is just starting it's acceleration phase.  Like all bubbles, the people who held out hope finally throw in the towel.  This is the point when price declines start to accelerate.  I believe we are JUST entering this phase now.  The question we all need to ask ourselves is

"HOW LOW IS LOW?"

I'm seeing houses coming on market for prices that having exsisted here in 10 years.  It's getting  worse.  Look no further than Uncle Ben's uplifting words today on Capitol Hill.  DOW DOWN 300+++

The unwinding is like watching a skater spin.  As they pull in their arms
(in our case it's "the pulling in" of consumer spending, the spiral increases in speed!)

Check out www.projo.com for the headline story about 2 (two) Hi-rise condo projects in downtown Providence where out of 197 units only 13 have been sold.  The owner is turning them into APARTMENTS!!!!
Think all you landlords out there aren't going to feel this???  What do you think that does to the market prices for rentals.  Around here it's causing them to plummet.  We have about 8 old mill projects that have HUNDREDS of unsold units in them.  All apartments now.

But DON'T WORRY......I hear the NIT WITS in Washington are going to solve ALL OUR PROBLEMS with a $250 tax REBATE!!!!!!!   

Halleluya!!!!  MY SHIP HAS COME IN...... 

I can fill my oil tank............

HALF WAY!!!!!!!!!!

And the unwinding continues. 

[Vader]

Hi Petemfa, fdjake, or whatever you're calling yourself now, welcome back.

Without you, the board was getting, i don't know, positive again. How kind of you to re-introduce us to your brand of "reality", sowing seeds of inevitable gloom and doom almost EVERY POST YOU MAKE.

Yes things are bad and will probably get worse, but TONE IT DOWN SOME WILL YA?

Your posts are informative and insightful at times, but don't step up on the soapbox every post man, it gets old and long winded

A little less chicken little will go a long way

[Emperor_Earth]

Ladies and gents, let's keep this thread on-topic please:D

Good advice on the first half of you post fdjake. Combining the info with ZNICK's blasphemy awhile back brings back to light the importance of having equity in the deal:D

[Vader]

Back on topic. I think the number one question newbies should ask is

"What am I really getting into?"

Take landlording for instance:
You read success stories, you feel positive, even adventurous, without really UNDERSTANDING what being a landlord means. You have a general idea of what's involved, but you don't actually GET IT, until you're ACTUALLY A LANDLORD. Newbies might ignore business sense and good advice when buying their first property, then some default and walk away vowing NEVER to landlord again.

Exit strategy, cash flow...these are terms thrown around, but not many newbies REALLY understand. Even patience to ride through a bad decision and improve with next buy, will the day job and the rent pay the expenses till then? You'll never know everything and you might never feel 100% ready to jump in, but have plan a, b, c, and d ready for when things don't go as planned. The numbers always good on paper when you're a newbie, real life is a whole different ballgame.

[JaredfromIndiana]

Wait a minute???  fdjake is petemfa??  LOL. 

I asked a lot of questions when I started out and still went ahead and did my own thing.  I learn mostly by doing, screwing up, and then realizing that the things people told me were right!   

[jbaldwin]

What's that smell?

[fdjake]

Vader,

GOT IT!!!

Loud and clear,

Thanks

BUT...............even YOU have to admit...........I WAS 100% RIGHT when I started warning you guy's over 2 years ago.  Just about everything I said would happen HAS. 

SORRY,  but I'm not going to start painting pictures of sunrises here just to keep our spirits up.

The Yale economist (Schiller) who had been laughed at in 2005 for predicting this EXACT mess we're in now, thinks this market can still drop by 30% or more from these price levels.  THAT IS NEWS my friend.  If you choose to ignore it that's your choice.  MY CHOICE is to inform others that THIS AIN'T OVER.  Read some of the NEW posts starting to appear in here.
Some landlords are seeing their rents actually FALLING and their properties are sitting empty for longer and longer periods.  These are signs.

YAHOO TODAY............"Brightside to the Housing Crisis:  LOWER RENTS"

I guess it's just me.

I can tone it down and will.  Just fire a warning shot over the bow every once in a while if I need it.

[rookieNYC]

Topic: What is the one question newbies should be asking but aren't?

1) How do I properly use the search function and teach myself *the basics* ....

[Emperor_Earth]

Haha. Unfortunately it's somewhat obscure:( (Referring to the Search Button)

[MichaelQuarles]

Do I have enough money to do it wrong?

[JaredfromIndiana]

Is this $6,000 real estate guru course that teaches me the SECRET to investing really worth it? 

[tatertot]

I always wonder why they never ever ask themsleves "How am I going to pay for this?"

[JaredfromIndiana]

Why do I need holding costs?

[fdjake]

Does this home need TOO much work? 

 I pass on a lot of stuff that is just too far gone.  The new guy's I see usually tackle the first project they come across that is priced LOW.  This can be a huge mistake.   Case in point.....

Brand new investor gets a call on a ranch house that is priced at 50% ARV.  He jumps on it.  The problem????  The house needed EVERYTHING.  There's a LOT of low hanging fruit out there.  Why break your back rehabbing a disaster when you can buy a "lipstick special" for the same money and have it finished in 30 days??

PASS ON THE BASKET CASES,  BUY THE COSMETIC REHABS!!!