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Nesgroup address: misc.invest.real-estate - Date & Time for the message: Fri, 04 Feb 2005 00:53:57 -0600 /

Author of the message: "John A. Weeks III"

Title of the message:
Re: Idea check

Text of the message:
In article <11065p6hf6rfp51@corp.supernews.com>,
"Saltybob" <bob@nospam.com> wrote:

> A buyer takes out a mortgage in Phase One in a condo community, rents it out
> for less than his monthly and sells it for a large profit toward the end of
> the last phase of the development a year or two later.
> Is this a Homer Simpson "dough!" news flash for the naive or does this go on
> all the time?

This works great as long as prices are skyrocketing.  That is
not normal for real estate, but it is happening now.  In all
cases in the past, the music stops at some point, and those
who have bought in will end up losing their shirts when they
cannot sell.
Do you remember the stock market in the late 90's?  It was
a "can't lose" situation.  For a while, everyone was talking
about the stock market and investing.  But in early 2000,
it took a dive, and those who were caught lost as much as



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