白菜房 vs. 白玉房...a reminder...

Lately, I notice many posts begin to ask questions on 白菜房 vs. 白玉房, that reminded me, these were same questions raised 3 years back, when this forum first form. 

This forum was separated from Home forum in 07, RE was so hot, RE investors begin to chase ultra high appreciation.  Many forum members share their stories on how to make 25-50k by just signing a construction contract, and value RE investing was put aside.

There were only few members argue that high appreciation, also translate into high risk. in 08, I wrote these.

 

investment RE must cash flow, cash flow and cash flow

2008-07-17 19:16:19

while traditional RE is more focus at location, location and location, I think investment RE must focus on cash flow, cash flow and cash flow.

many ppl here more interest in ultra high appreciation in RE and sacrifice with negative cash flow, they need to relearn the truth of RE investing in a long term market.

RE investors need to look at how to minimize upfront cash investment, and maximize positive cash flow, providing a consistent cash income and appreciation over time, nothing beats $0 investment but with 150k cash income and 300k appreciation each year.

 

3 years later today, not many old forum members left, most of them came and gone, the ones the still here, are these sticking to the basics.

I know RE market is recovering in most areas, even in Indiana, my area is almost back to its all time high, but only eying on appreciation instead of true positive cash flow, can be dangerous.

I am not saying high appreciation is bad, but as an investor, market will always going up and down, one should always prepare for the worst...

 

所有跟帖： 

• 说得好。piapiapiapia -最爱大白菜- ♀ (0 bytes) () 12/07/2011 postreply 14:44:18

• Ding!! -planotx- ♂ (51 bytes) () 12/07/2011 postreply 14:48:41

• 谢谢提醒,这个很重要啊. -小糊涂仙儿- ♀ (0 bytes) () 12/07/2011 postreply 14:52:33

• 完全赞成，不过我提的 -SunshineInCA- ♀ (171 bytes) () 12/07/2011 postreply 14:54:53

• 谢谢提醒，白玉房的步伐不能跨太大了。 -SunshineInCA- ♀ (60 bytes) () 12/07/2011 postreply 15:54:01

• 经过惨痛教训才真正理解了这个道理 -芦苇葱葱- ♀ (0 bytes) () 12/07/2011 postreply 15:47:20

• 说得好，可观的正现金流应该是出租房生存的根本保证 -关键字- ♂ (0 bytes) () 12/07/2011 postreply 17:19:01

• 谢谢大师提醒。你的话就是我们的座右铭，需要天天读，月月读，年年读。 -hc29- ♀ (0 bytes) () 12/07/2011 postreply 17:38:34

• 一天不读问题多，两天不读走下坡，三天不读没法活 -hao-hao-cai- ♂ (0 bytes) () 12/07/2011 postreply 17:48:49

• hahahaha.. Ding~ -hc29- ♀ (0 bytes) () 12/08/2011 postreply 08:37:54

• Yeah, right, Cash flow in devalued dollar is good? LOL -天下多蚤- ♀ (0 bytes) () 12/07/2011 postreply 18:45:54

• pay back the bank in devalued $. It is good, right? -sweetptt- ♂ (0 bytes) () 12/07/2011 postreply 19:48:46

• Very good point. Thanks. But -jessefan- ♀ (617 bytes) () 12/08/2011 postreply 06:44:01

• Positive Cash flow is very important to survive in current marke -qiaoshe- ♀ (34 bytes) () 12/08/2011 postreply 09:36:18