The market is weird

Just read this article in today's N&O.

So, office demand is high. Normally, this means that companies are growing and can still afford to relocate. Odd. I thought the bottom was falling out. This can mean two things, really.

1. The "downturn" is simply not as bad as many think.
2. The "downturn" hasn't really hit yet.

Let's hope #1 is true. I surely don't know.

Incidentally, SPACE magazine, published by The Triangle Business Journal, also stated that the first quarter of 2008, normally the slowest of any year, showed signs of a healthy market with plenty of positive absorption. Still, job growth is pretty slow.

Oh, and in other news, gas prices are high.

Flipping is so 2005

There was a good post on the NuWire's InvestorCentric Blog about the slowdown (thankfully) in house flipping as a real estate investment.

As my comment stated on that blog, I do believe flipping is a legitimate method by which to invest in property. However, it is far from as easy as its unrealistic ascension in the marketplace makes it out to be. Anyone who tells you they're a full-time flipper was probably also a dot.com day-trader back in 2000.

Maybe that's a harsh comparison.

Flipping should be treated as one component of your real estate investment strategy. And only a "bonus" component at that. By that I mean, if one comes your away suddenly, jump on it. I wouldn't spend all my time looking for them.

An investor we know quite well, who owns well over one hundred rental houses and manages them full-time, says he can find maybe one flip every couple of months while working (his words) "24-7" hunting down potential purchases. To boot, he already has an established network of contractors and understands what costs what throughout the process.

In the end, I guess my point is yes, flipping can be a great way to make good money in real estate. Long-term wealth though? I doubt it.