SHOW ME THE MONEY! :: Did Jerry McGuire have the right idea?

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Real Estate Agent with Casmi Photography

SHOW ME THE MONEY! :: Did Jerry McGuire have the right idea?

 

We all know our national economy is in turmoil right now. We all know that real estate has slowed in more markets than not. We all know that this, too, shall pass. But while we know these things … are we really looking forward? Are we counting on ourselves to rise to the occasion? From what I read and hear … that might be a stretch.

We are fearful of our investments, fearful of job losses, fearful of financial ruin that will compromise our ability to take care of our families. And that fear is always about the same thing. Money. That evil green paper that we all require in order to survive in this world.

So … what do we do about it? Sit around, listen to the newscasters and financial analysts tell us that we are destined for certain ruin? Talk amongst our friends and family about how worried we are? Lose sleep worrying? I sure hope not.

You see, I prefer to look for inspiration to get past all this unsettling news. All this doom and gloom. In some small way that lets me feel like I’m not alone and that there are options out there.

Options? Someone say options? Hmmm … just what might those be?

Well, I must admit, I take a look at Forbes Magazine online from time to time. The articles are comprehensive and, generally, offer a look at more than one side of a story. The story that caught my eye this morning was the list of The Forbes 400. The wealthiest 400 people in America. I noticed I was not among that list! What a shock!

One thing that caught my attention in this list is that most of these notables have invested heavily in real estate. They have placed their money, and their futures, on the product that we sell. And they have done very well with it – in good times and bad.

Now your immediate response is … they started with tons of money, so why not do well! If that’s your reaction, then I urge you to read some of the stories of these wealthy individuals. Not all of them started with a silver spoon in their mouths.

Jeffrey Green is one of the interesting characters in this effort. Kind of a rebel among rebels. His story is quite amazing. You should check him out. One thing I found enlightening in the story was this:

Greene began putting his savings to work in business school. He put down $7,400 to buy a three-family home, and rented out rooms so he could live for free. By the time he graduated in 1979 Greene owned 18 properties and was generating more than enough income to cover his $4,500 annual tuition. He sold out a few years later for what Greene says was ten times his cost, pocketing a $1 million profit.

A far cry from his life today. The key to this success? Mr. Green did not expect to make an instant fortune. He rode the waves of success and failure, and took his lumps in the process. But in the end … he has triumphed.

The realization that investing in real estate is a long term plan is the point I’m making here. The days of “fix and flip” have come and gone. The rapid inflation of housing values is balancing out into a more believable pace. We are in a self-correcting market. And, that in itself, is a true green light to begin investing in real estate. But always keep in mind that real estate investing is a long term venture. And the tax advantages can certainly make it all worthwhile. (**If you are considering real estate investing, please consult with an accountant/attorney that is familiar with all the tax codes regarding this. Do not attempt this endeavor without being fully informed.)

And that, my friends, is how I spend my Saturday morning trying to wake up …

Written and posted by Carol Smith,  ReMax Preferred Associates, Toledo, OH.

For a personal consultation on the ups and downs of investing in real estate, please call me at 419-297-7454.  I will do my absolute best to make your investment transactions as hassle-free as possible.

Posted by

 

Carol Smith

Casmi Photography

Mebane, NC 27302

919-418-6549

casmiphotography@triad.rr.com

 

 

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Rainmaker
1,547,641
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Authentic Feng Shui Expert

Carol, I haven't seen Forbes but I happen to agree with you.  For those that have money I still believe Real Estate will be a wise investment for the future.

Sep 20, 2008 10:50 AM #1
Rainmaker
375,403
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Very good points Carol. I'm also reminded that a lot of millionaires actually made their fortunes during the Great Depression because they were not afraid to take a chance on success.  Thanks for an excellent reminder today. :)

Sep 20, 2008 02:29 PM #2
Rainmaker
287,629
Pippa Mac
Chevaux Group Realtor, The Woodlands and Spring - The Woodlands, TX
The Woodlands TX Real Estate

Lovely Carol .. and VERY inspirational

Sep 20, 2008 02:37 PM #3
Rainmaker
217,670
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

A very wise point my dear! I hope everyone with an extra dollar reads this!

Sep 21, 2008 03:23 PM #4
Rainer
211,971
Carol Smith
Casmi Photography - Mebane, NC

Carole - Sometimes it doesn't take a lot of money, it just takes the realization that the investment is long term and does not provide an instant return.  Personally I have found that the tax advantages, especially being self employed, is a true God-send.

Lola - My grandfather was like that.  Didn't trust the banks and did everything with cash.  He bought and sold many old farms in his day.  Quite the Yankee wheeler-dealer.  Thanks for your kind comment.

Pippa - Thanks!  I hope it inspires some of those that are "on the fence" about investing in real estate to start looking a little more closely.

Joni - Wisdom is my charge this week!  LOL  I hope they all read it, too!

Sep 21, 2008 04:22 PM #5
Rainer
194,096
Elizabeth Nieves
The Elizabeth Nieves Realty Group - Durham, NC
Bilingual Raleigh - Durham North Carolina Real Estate Team

EXACTLY! Gone are the days of the quick buck in real estate...at least for now. However, as you have so wonderfully pointed out...real estate is a solid, long-term investment. The market goes up...comes down...goes back up again. The is the cycle of real estate...and life. Luv ya!! GBU, Carol!!

Sep 21, 2008 07:26 PM #6
Rainer
62,353
Bart Whitmore
Keller Williams- Louisville - Louisville, KY
Real Estate Agent

The market will come back around and there are some real good deals out there right now---Bart

Sep 21, 2008 08:14 PM #7
Rainer
211,971
Carol Smith
Casmi Photography - Mebane, NC

Eli - While the markets do fluctuate, the one thing we all need to remember is this:  there is only so much land to build on.  And when that's gone?   Well ... who knows?  But if we don't preserve it properly we may all wind up living in a tipi near the river!

Bart - You're right.  It will come back around.  But the important part is that it doesn't come back with the same issues.  Thanks for stopping by!  Nice to meet you!

Sep 22, 2008 12:04 AM #8
Rainer
30,855
Kathi Frank
Kate Writes Right - Houston Heights, TX
The Woodlands TX

Carol, I like the wisdom shown in your post.  Real estate is no longer an ATM machine (and it never was in Texas).  Hopefully, the nation will learn a few lessons.

Sep 22, 2008 06:44 AM #9
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Carol Smith

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