Buy When Blood is Running in the Streets

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Real Estate Agent with Investments, starter houses, luxury homes,farms, acreage

Buy When Blood is Running in the Streets

This famous quote was attributed to Baron Rothschild in 1871.  The quote is often used by Wall street bankers to encourage investors to buy, but the fact is that the famous Rothschild quote was actually used in reference to real estate.

bloody rose

(Photographer: Simon Howden, courtesy of www.freedigitalphotos.net)

Just before the eruption of the 30 years war in France, people were desperate to sell their property, and thus prices plummeted. Clever investors like Rothschild were there to buy it. Rothschild also advised other investors to do the same, and that is how the famous quote came to be.  One such investor accused Rothschild of being his enemy for advising him to buy "When the streets of Paris run with blood". Rothschild replied, "My dear friend, if the streets of Paris were not running with blood do you think you would be able to buy at the present prices?"

Rothschild went on to build one of the largest fortunes in history, and his heirs continue to enjoy that wealth to this day.

What does this have to do with the current real estate market? Everything. History repeats itself continually, and a scholar of history can use this knowledge to his or her advantage. Rothschild's advice is as relevant today as it was over 100 years ago.

German Script

(Photographer: Ian Kahn, courtesy of www.freedigitalphotos.net)

American streets are bloody right now. Foreclosures abound, and are often selling at a fraction of what they sold for only a few years ago. The current real estate crisis is creating fantastic investment opportunities. For the investor who likes rental property, you can easily double your portfolio of investment property right now.

shadows in the street

Of course, these opportunities aren't limited to investors. This is a great time to buy a home to live in also. If you spend some time shopping houses, you are likely to find a great bargain. You'll have the benefit of a much lower mortgage payment, and plenty of equity down the road when the housing market stabilizes.

People who have the courage to buy "When Blood is Running in the Streets" will emerge the winners when the dust settles.

Posted by

        

Virginia Kail

Realtor®

Cookeville TN native. A full time, full service agent for the entire Upper Cumberland region of Tennessee.

931-260-4729 cell

www.VirginiaKail.com

American Way Real Estate Co.

931-526-9581 Office phone, 931-528-6569 Office Fax

 

Virginia Kail

Virginia Kail- real estate agent, Cookeville TN

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Hannah Williams 01/19/2011 01:43 PM
  2. Karen Hurst 01/19/2011 05:16 PM
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Tags:
real estate investment
foreclosure
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Comments 7 New Comment

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Rainmaker
64,599
Jason Smith
Crye-Leike Realtors

Gory...but really true.  Capitalism is alive and well.  Take part or don't complain when others have what you don't.  Great blog.

 

January 19, 2011 01:25 PM
Ambassador
764,764
Hannah Williams
Expertise in NE Philadelphia & Bucks County
Re/Max Eastern inc.

Virginia..What a wonderful post ..I really enjoyed it and I hope you don't mind if I re-blog it !

HelpfulHannah

January 19, 2011 01:28 PM
Rainmaker
116,700
Virginia Kail
American Way Real Estate, Homes and Land for Sale
Investments, starter houses, luxury homes,farms, acreage

Jason - Eeek, I didn't mean for it to be yucky!

Hannah - That's awesome. Thank you!

January 19, 2011 01:30 PM
Rainmaker
447,863
Malcolm Johnston
Trenton Real Estate
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario

Very good blog Virginia. It sounds a little morbid, but the sentiment is true. There's money to be made if one can stomach profiteering.

January 19, 2011 04:18 PM
Ambassador
325,470
Karen Hurst
Rhode Island Waterfront!
STONEHURSTREALTY.COM

Very catchy title! I think I will reblog this also. The original Buy Low, sell High. Lately people have been buying high and selling low!!!

January 19, 2011 05:13 PM
Rainmaker
116,700
Virginia Kail
American Way Real Estate, Homes and Land for Sale
Investments, starter houses, luxury homes,farms, acreage

Thanks Malcom. I think everyone has a little profiteer in them, after all, I've never had a seller call me up hoping to sell their property for a loss.  ;)

Ultimately we need the investors off the fence and in the market to help absorb the excess inventory and stabilize the market.

January 19, 2011 06:27 PM
Rainmaker
116,700
Virginia Kail
American Way Real Estate, Homes and Land for Sale
Investments, starter houses, luxury homes,farms, acreage

Karen, Thanks for the re-blog. I'm glad you liked the title - It's definitely a memorable quote.

January 19, 2011 06:28 PM
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Rainmaker
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Virginia Kail

American Way Real Estate, Homes and Land for Sale
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