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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: fatty who wrote (5297)	9/14/2002 1:24:13 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Do this repeatedly (called "serial investing") and over 20 years you will have ... I know a real estate agent who did this in the 1980's in Los Angeles. After only ten years, he had a spectacular bankruptcy.

To: fatty who wrote (5297)	9/14/2002 2:29:58 PM
From: MSI	Respond to of 306849

Good advice, provided of course each purchase is not overleveraged. What the writer doesn't say is that gradually each purchase becomes unleveraged with mortgage paydown and rent increases provided you are in a growth area over the years. If you wait until that happens for each new purchase it makes sense. The downside protection is an expectation for gradual reduction in the event of economic downturn. Of course there could be catastrophic downturns, but that's a risk worth taking, especially if the bank is taking most of the risk...