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"...my investors get at least a 25% pa ROR in their first year. In their second year their ROI is through the roof because they have their original down payment returned. It's all about timing into the market with a particular deal. This is very possible with real estate.
What is the risk. The investment is not very liquid, at worst six months, and other than that there is not one.
Oh, come on. Of course there are more risks than that.
What if the neighborhood turns into a war zone?
What if the only factory in town closes, and unemployment in the community shoots to 50%?
What if the EPA determines there is hazardous waste under your property?
What if someone builds a shiny new apartment complex three blocks from you using government tax credits and rents them at a price you can't match?
What if you rent to the tenant who gets a drug dealer boyfriend AFTER you rent to her, and they tear the place up and do $5000 damage?
What if prices have been rising quickly, and you decide to get in, and buy in at the top? Or you buy in before the top but fail to get out before the top?
There are lots of risks to real estate. Nothing is certain. Nothing.
You people who have been extolling the virtues of real estate without considering the risks are doing a simply massive disservice to literally everyone. Every decision contains risk, and the real estate investor needs to have a good grasp of the risks associated with real estate.
About the Author: Jim Locker is a technical guy who has done a lot of real estate investing and landlording. The experiences he writes about and advice he gives are either first hand, or in answer to specific questions posed by others. He is commonly known as jiml8 around the internet.
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