Saturday, March 22, 2008

The Tale of the Foolish Real Estate Investor

We live in an information age where there are always "experts" wanting to sell you a new course on how to get rich in:

1. Real Estate
2. Your Own Business
3. The Internet
4. You Name It!

Wisdom comes as we get more mature and realize that there are really no "quick" solutions to anything and that includes creating wealth. A few years ago here in Williamson County, we saw loads of investors who swarmed into the area and purchased real estate by the bunches. The lenders were handing out 100% finance deals like the money would never end. Many of these "investors" went directly to local builders and bought 2-10 properties in specific subdivisions all at one time and all at 100% financed. I like to refer to this as "the era of irrational exuberance". Many of those of us who work this business full time knew that this was a recipe for disaster and the disaster is here now. We are seeing most of these properties now going to foreclosure right and left and although our foreclosure numbers here are dwarfed by many other areas of the country, they are still greater than we have seen in a long time.

So herein is the purpose of this article. There is a distinct difference between an investor and a "speculator". What we saw here in the past were many speculators, but not true investors. Investors recognize value and invest for the long haul. They recognize that business cycles will ALWAYS repeat themselves and trying to cheat a good investment with NO MONEY DOWN and expecting that there will never be lean times are unrealistic approaches to investing in real estate as a business. We are working with many investors from all over the country and have always attracted the SMART investors: those that recognize that money investments on the front end are required to be a wise real estate investor. There will be some great opportunities in coming months in Central Texas to invest in a growing market. And if you do so in a smart manner, over a period of years you will see a substantial return on your investment.

If you are looking for a REALTOR in this area that can provide sound real estate investment advice, counsel and services, please contact us. We groom new investors as well through our training programs and BLOGS such as this one. We'd love the opportunity to service your real estate investment and management needs!

This message is provided as a public service by The HBH Group, the premiere real estate group in Round Rock and Georgetown Texas. Contact us through our websites at: and or call our offices at (512) 439-3772 or toll-free (877) 268-1877.

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