Real Estate Investing Links for December 2, 2009

Warren Buffett Advises Rice University Students

studentsThe Chronicle’s Jennifer Latson reports on a recent Q&A session billionaire Warren Buffett held with students from Rice Universities’ business school. Despite his billionaire status, Buffett awed students with his warm demeanor and advice that “success is getting what you want, but happiness is wanting what you get.” Aside from promoting this strong correlation between wealth and happiness, Buffett warned against the “us and them” mentality and expressed his confidence in the future of the U.S. economy.

The Top 7 Reasons to Buy Residential Property Now

Ed Craine of Top 7 Business lists “The Top 7 Reasons to Buy Residential Property Now.” Factors like temporarily low prices and increasing confidence in the general economy should propel you to follow the trend of most seasoned real estate investors and start buying property! Experts continue to explain why opportunities exist now that haven’t occurred in over a decade and won’t be seen again for years to come. So leave your excuses behind, and learn why now is the time to buy!

Capital Costs to Rise, Say Investors

costRetail Traffic reports on many investors’ fears over the rising cost of capital. 2/3 of investors polled by the website say that they expect capital costs to increase over the next year. These fears are augmented by the development of constricted and sometimes unavailable financing. Even though most investors support this position, many don’t view it as “prohibitive.” Retail Traffic suggests that the concern lies mostly in the rise in required equity and “adjusted market value” for financing.

“Do Real Estate Wholetalers Offer Any Real Value?”

REI Tips hosts a forum on the ethics behind “wholetaling” or flipping. In response to a reader’s question on the morality of “something for nothing,” the website has posted an informational chat that provides many interesting perspectives on the issue. While some resent the idea of being the middle man, others claim they are adding value by providing deals the buyers would not have been able to find on their own. Skim the varied responses to the question “Of what actual value are wholetale investors?”

“‘P3’ Opportunities Abound”

tollThe Dallas Business Journal addresses commercial real estate investors by defining the term P3 financing. With a “growing infrastructure deficit” many public organizations are turning to the private sector to fund and design projects that are no longer affordable. Although seemingly similar, this method is distinct from privatization in that the public organization still oversees and controls the activity of the project. The private financiers are paid back over time. The most large scale examples of P3 loans are toll roads and universities, but opportunities vary in price range.

“Commercial Real Estate: The Danger of Fighting the Last War

The National Real Estate Investor addresses the differences between the commercial market now and that of the early 90’s, claiming that investors basing their investments on comparison of the two are in danger. Key differences include the breakdown of the “whole banking system,” not just a section as in the early 90’s, and a lack of pressure to liquidate assets. The report urges investors to be wary of commercial real estates’ position “at the tail of this recession.”

Meet Your New Landlord…

uncleThe Bigger Pockets Blog addresses the new Deed for Lease Program from Fannie Mae. The idea of this project is to have the government buy homes facing foreclosure, in order to allow the previous owners to remain in their homes as renters. Florence Foote’s article considers whether this new competition between the government and private landlords is a good thing. She suggests instead, that investors protect their territories by implementing a similar strategy, while reaping the benefits of newly discounted distressed property.

Lifestyles Mentor Damon Janis recently won a contest from One Family’s Blog for his article on “The Case for Real Estate Investing as the Best Vehicle for Financial Freedom.” Way to go Damon!

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