Moses Kagan on Real Estate

Buy what nobody wants

with 4 comments

Am up to my neck in deals right now, which I’m not complaining about at all. So today’s post is going to be short and sweet.

I want to impart an idea about investing, in general, and real estate investing, in specific: Buy what nobody else wants right now.

By definition, if no one wants a parrticular type of asset, prices will be low. But banks will probably not want to lend. So it’s hard to make the deals work.

Try, though. Because if you are able to make them work in such a way that you can buy cheaply and get an acceptable yield while waiting for market conditions to improve, you will be a very, very happy investor indeed.

It worked for us on apartments in 2009-10.

Written by mjkagan

06/08/2012 at 5:58 am

Posted in Buying

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