The Surest Form Of Investing

The other day I went to an Investing Club in Hawaiithis opinion. Currently, with the sub prime bust, real
where I reside. The speaker that night began talkingestate prices are diminishing and it has certainly
about a wide variety of investing opportunities,become a buyer's market. If you understand what
including the stock market, mutual funds, gold, bonds,you're doing, the best time to buy is when properties
and so on. But I was surprised by the one topic thatare selling low. That's when you can take advantage
he did not bring up: which was real estate.of the best deals. Foreclosures have also doubled
I had to admit, the majority of the investing ideasover the last year and you can find many of these
that he was covering were to me little more than aproperties priced way under their true value.
crap shoot. The money in your investment could goWhen people buy more than they can afford, and
up and you may make money. But just as easily, thethen are forced out of their homes through
market could go down and you would lose yourforeclosures, where will they go? The vast majority
money.will end up in a rental. How does that affect the price
That's why I suggested to him the subject of realof rentals, even in a bad market? It drives them up.
estate investing. The speaker (who is a licensedThe more urgent the need becomes, the greater
investment broker) said he really didn't know toorents will go. That's why it is definitely a great time
much about real estate. Although he "liked" realto be a landlord. The demand for rentals will continue
estate, he didn't personally invest in it too much. Butto go up.
then he said, "But right now is not the time to investSome real estate is certainly going down in price, but
in real estate." He shared that one or two investoryou can be sure that its value will start climbing again
gurus he listened to with reverential awe said that it'sonce the market settles out. Overall the real estate
not a good idea to be "in real estate right now."market is the best place to invest. And our
Because I have done so consistently well with myexperience over the last 35 years has proven this.
real estate investments over the years, I challenged