All Forum Posts by: Saad Hameed

I live in San Francisco Bay Area, California. I want to start investing in real estate but the  market is prohibitively expensive and I cannot afford a house here for investment. I’m considering investing in Tennessee. However, that’s pretty far and poses some challenges (travel primarily).

My intention is to buy the property and hite it  a property manager to manage it. 

I seek advice and ideas including pros and cons on this approach. 

I have a year before I can reach two years with my current job. So I have been told this is crucial for getting loan approval. This will be my first house but I want to become a serious investor from there.

Words of wisdom and ideas are highly welcome.

@Darius Ogloza yeah I agree it’s hard to predict. Is there an index similar to VIX (volatility of stock market) for real estate? Or some other measure that can predict a correction?

@Joe Bertolino this assumes that tech sector remains hot. I have so far seen three downturns and the next one is expected. At some point in time the costs don’t remain sustainable.

@Darius Ogloza Thanks Dairus for the precise answer.

Do you expect things to simmer down (increase in prices driven by tighter supply and good demand) over the next year or stay at the current level or perhaps increase?

@Bill F. The quote from Upton Sinclair is golden. Thanks for sharing it

@Jody Sperling yeah debt is the main lever and when not pegged against a real asset then the only asset remaining is credibility to pay. So I would say, the real asset is credibility (in this case US government).

@Jonatan Cris I agree. It’s called unjustified optimism due to the lure of a rising market that will net out a positive result. Whether that actually pans out will be seen 3 years from now

@David A.I agree with the point on BP being an echo chamber. Investors who have vested interests saying there is no crash or correction. Short term memory is a key sign of a bubble. In the Bay Area 2001 and 2006 were the major corrections yet when you try to remind people then they say “well things are different this time around”

@Saad Hameed typo. I meant effect not affect