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Subject:  Re: OT: KISS Date:  8/10/2002  7:20 PM
Author:  galeno Number:  73425 of 882486

intercst wrote:
1) Successful real estate investors buy "well-selected properties", but we don't how many real estate investors are successful in identifying these "well-selected" gems.

2) I believe most real estate investors buy properties close to home? Am I way off base there? So in addition to buying "well-selected properties", I also need to insure that my current place of residence and its surroundings is not the site of the next "highly localized"

3) Leverage seems to be a common theme among all real estate investors save golfwaymore. This increases the downside for those caught in one of those "highly localized" debacles. Budding early retirees with assets beyond their real estate investments may seen the banks go after their stocks and bonds in an effort to collect on their outstanding real estate loans.

Have I left anything out?

Oh, and comparing the purchase of a few rent houses in a single city with the fact that "I am not aware of even two consecutive years when the average U.S home resale price has declined", is kind of like comparing the S&P500 to a concentrated portfolio of three stocks bought on margin.

Yes! Yes! Yes! Why do so many people on this board have such a difficult time understanding the above?

I will repeat AGAIN, if you seriously want to retire early, you must invest in stocks. If you want a masochistic and UGLY second job and PRETEND to retire early, then invest in residential real estate. I understand that wishful thinking and waving your hands around at the same time MAY improve your investment returns and SWR significantly <grin>.
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