Investment In Property Is More Secure As A Long-Term Investment
Agency with the real estate broker, no matter what they tell you or what type of information they obtain, the most important question remains, “where do their fiduciary responsibilities lie?”Lets take that one step further and use “comps” as an example.
As a broker or sales person who represents sellers, even other agents listings, their loyalty always remains with the sellers. If youe working with a sales person and theye pulling comps for you, they will present information and it is up to you, the investor, to make the final judgments about what to buy and not to buy. No one is forcing you to buy a property. Even though the value only dropped by 20 percent, you actually lose 100 percent of the original $60,000 investment. And if you have a mortgage on this property making up its full purchase price, you will actually need to pay money to the mortgage provider in order to cover the costs of selling the property.
Thats in addition to the loss of the whole of your initial investment. So, as you see, investing in real estate is something to be taken very seriously and should not be done with money which you might need for other things in the near future. Investment in property is more secure as a long-term investment. He said that he had heard about me from some mutual friends. He wanted to speculate in buying HUD houses (Properties that the Government had foreclosed on).
Source: Simarc
