Real Estate Investing: Skillful trade or clever scam?

2006-11-03 15:01:43

#1

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

Due to the nature of the question and my personal curiosity I have not made this a poll. I want to know your stance on all of these real estate investment plans will all these catchy: "Millionaire in 1 month" deals.

Keep in mind that what I mean by 'scam' is the money the self-made millionaires are making by "sharing" their tips and tricks of the trade with the general public.

I know everyone in the U.S. has seen one, there are literally hundreds of different people who want to share their "techniques" with the world for 3 easy payments of $19.95 or whatever. They are especially common in the top right window of the TV guide channel.

-Has anyone here ever bought one of these kits? What attracted you to them?

-If you haven't bought one, why not? It seems simple...

-Do you even plan on buying one? Why/why not?

I always thought to myself that if I got a raise at my slave driving plant then I would pick myself up one of these kits and read more into it, but I'd like to hear other personal experiences/thoughts on these things as well.

Last edited by SysTray (2006-11-03 15:02:44)

2006-11-03 15:04:51

#2

stryyker: bad touch; +1,682|6978|California

Its almost always a scam. Its just based off the gullability of the user, imo.

2006-11-03 15:06:27

#3

Kmar: Truth is my Bitch; +5,695|6858|132 and Bush

You must be referring to those infomercials.
Real Estate investing is most certainly a good way to use money to work for you. The whole you don't need any money now idea is crap I should add though. In order to be successful you need substantial capital to make it work. Otherwise everyone would be doing it.

Last edited by Kmarion (2006-11-03 15:06:50)

Xbone Stormsurgezz

2006-11-03 15:08:20

#4

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

Kmarion wrote:
You must be referring to those infomercials.
Real Estate investing is most certainly a good way to use money to work for you. The whole you don't need any money now idea is crap I should add though. In order to be successful you need substantial capital to make it work. Otherwise everyone would be doing it.

Yes I am referring to those infomercials. My thought is why can they continue to get away with the false claim that you don't need any money to start off.

Wouldn't people find out eventually, after their friends had tried it or whatever, and told them it was a joke?

2006-11-03 15:08:28

#5

King_County_Downy: shitfaced; +2,791|6855|Seattle

If I had good credit, I'd buy a house. It's one of the only investments you'll make which actually goes up substantially in value. Especially if you fix it up real good before you sell it. For example: My parents boght their house about 15 years ago. It's worth double now what they paid for it. Most of it depends on location and growth in the area.

edit: yeah, I didn't know you were talking about those infomercial shows...That looks like a recipe for financial disaster to me...

Last edited by King_County_Downy (2006-11-03 15:09:35)

Sober enough to know what I'm doing, drunk enough to really enjoy doing it

2006-11-03 15:12:12

#6

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

Well now (at least where I live) the real estate market is losing value due to over development in a lot of areas (including shore front properties). I could not for the life of me figure out how these people were still making upwards of 10 grand per week with a market that isn't going anywhere positive.

2006-11-03 15:12:32

#7

Masques: Black Panzer Party; +184|6980|Eastern PA

SysTray wrote:
Kmarion wrote:
You must be referring to those infomercials.
Real Estate investing is most certainly a good way to use money to work for you. The whole you don't need any money now idea is crap I should add though. In order to be successful you need substantial capital to make it work. Otherwise everyone would be doing it.
Yes I am referring to those infomercials. My thought is why can they continue to get away with the false claim that you don't need any money to start off.

Wouldn't people find out eventually, after their friends had tried it or whatever, and told them it was a joke?

Most people wouldn't want to admit they were taken in by such a scam and so long as they say "results may vary" they're subject to no legal action.

2006-11-03 15:16:46

#8

KEN-JENNINGS: I am all that is MOD!; +2,979|6889|949

Certainly those ideas can make certain people rich. It definitely will not make everyone rich. The idea behind most of these infomercials is that you leverage your credit to get loans to buy property, then flip the property quickly for a profit. Often, these people leverage houses and/or property already mortgaged to purchase new property. It can be a way to make a lot of money, but it also is risky and not recommended.

The people selling their "information" are businessmen selling an idea, not trying to make you rich.

2006-11-03 15:16:52

#9

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

Well I wasn't talking so much in the legal area as much as I was word of mouth. You'd think somebody would have the chutzpah to let SOMEONE know it's a bad idea.

2006-11-03 15:28:03

#10

KEN-JENNINGS: I am all that is MOD!; +2,979|6889|949

SysTray wrote:
Well I wasn't talking so much in the legal area as much as I was word of mouth. You'd think somebody would have the chutzpah to let SOMEONE know it's a bad idea.

I think the main reasons are
1) Not many people actually buy it; and 2) People that do buy it are probably embarrassed.

2006-11-03 15:47:46

#11

IRONCHEF: Member; +385|6748|Northern California

House flipping should be totally illegal IMO. It is a big reason why housing in the SF Bay Area is soooo expensive (average home cost is around $7xx,xxx). Homes that should be worth $200k are worth $500k and up.

House flipping is soooo popular because everyone is so damned greedy and thougtless towards other people. When people are buying homes for $300k, planting some flowers in the front yard the next day, and reselling it for $320k the next week after being listed for maybe a day..just for profit, makes it very, very hard for people to buy a home..that they want to actually live in. It's like day trading. Anyway, I'm in my over priced condo now making about 5% per year..hopefully, and the market is stagnant..and is a buyers market now because nobody can afford their house payments. Fucking greed.... grrrrr

Last edited by IRONCHEF (2006-11-03 15:51:11)

2006-11-03 15:50:00

#12

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

It's almost normal here right now. My parents bought the house they live in now for $199,500...it may be worth $220,000 now. I honestly can't see the gain it in, they've been living there for years and the price has only gone up 20 grand? Where's the gain?

2006-11-03 16:10:04

#13

JahManRed: wank; +646|6885|IRELAND

I work in real estate and I can tell you that its the best way to invest. If anyone has a few grand laying about buy property in Romania, Bulgaria or any of the nations about to join the EU. Also look to see if any low cost airlines are doing or planning to do flights and buy close by. That way you can sell to your own countrymen were possible and avoid exchange rates etc...

When the EU pumps Billions of Euros into these countries everything goes up to fuck. I know because 25-20 years ago Ireland was in a deep depression and was described as a 2nd world country. We joined the EU and had billions pumped into our economy, property value has increased 100 fold in 20 years, thats good growth by anyones standards.

Forget America, when you have the shifting of wealth and moneys going on in Europe right now to try and bring all the European nations up to a level power, you can buy into property in the lower nations and ride the flood of wealth coming from the other richer nations.............as the sales me say, this is a one time opportunity!!!!!!!!!!

Last edited by JahManRed (2006-11-03 16:11:25)

2006-11-03 16:11:21

#14

IRONCHEF: Member; +385|6748|Northern California

uh, yeah. real easy to manage property on the other side of the planet... lol

2006-11-03 16:13:11

#15

JahManRed: wank; +646|6885|IRELAND

uh, yeah. One visit to the country to employ a project manager. Very adventurous attitude.

2006-11-03 16:16:38

#16

SysTray: "Generous mods" < Thats right Systray !; +180|7079|Delaware

Well real estate in Europe doesn't quite fit my topic of discussion...but while it's here: I don't want to change my whole lifestyle and way of working to suit the needs of a business that I'm running overseas. It seems a little much. Plus, investing in Romania sounds a little iffy.

2006-11-03 20:01:51

#17

BN: smells like wee wee; +159|7025

There is no secret or catch. Don't buy this rubbish.

Talk to real estate agents, look at market trends, local developments, check rental markets, check your tax obligations. Look for crap houses in good streets, buy in a slump, sell in high times and most of all patience.

It might take you 5-10 years to get your first big sale from a property but after you sell that one you can buy 2 houses.

Also, use the Internet. Its free and has so much information.

There is no mystery...just a bit of common sense and effort.

Good luck!

BF2S Forums Real Estate Investing: Skillful trade or clever scam?

Kmarion wrote:

SysTray wrote:

Kmarion wrote:

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