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The Wisest Investment you Can Make

The other night I went to an Investing Club in Hawaii where I live. The leader of the club began discussing a wide variety of investing opportunities, including the stock market, mutual funds, gold, bonds, and so on. But I was surprised by the one area that he did not bring up: which was real estate.

I had to admit, the majority of the investing methods that he was suggesting were to me little more than a crap shoot. The value of your investment could go up and you might make money. But just as easily, the market could diminish and you would lose your money.

Thats why I suggested to him the area of real estate investing. The host of the club (who is a licensed investment broker) said he actually didnt know very much about real estate. Although he liked real estate, he didnt personally invest in it too much. But then he said, But right now is not the time to invest in real estate. He mentioned that one or two investor gurus he listened to with reverential awe had said that its not a good idea to be in real estate right now.

Because I have done so consistently well with my real estate investments over the years, I challenged this view. Right now, with the sub prime bust, real estate prices are diminishing and it has certainly become a buyers market. If you know what youre doing, the best time to buy is when properties are selling low. Thats when you can take advantage of the best deals. Foreclosures have also doubled over the last year and you can find many of these properties priced well below their true value.

When people buy more than they can afford, and then are forced out of their homes through foreclosures, where will they end up? The vast majority will go into a rental. What does that do to the price of rentals, even in a poor market? It drives them up. The greater the need becomes, the greater rents will go. Thats why it is definitely a great time to be a landlord. The demand for rentals will continue to go up.

Some real estate is clearly going down in price, but you can be sure that its value will begin climbing again once the market settles out. Overall the real estate market is the best place to invest. And our experience over the last 35 years has proven this.