Post by SCANDALOUS on Apr 29, 2009 8:28:39 GMT -10
By house flipping I'm talking about finding people going into foreclosure and saving the house from foreclosure and flipping the house to you TV type of "Flip that House" type of guys. Making 10K and doing nothing for it except signing a title twice. ;D
Stocks. You buy the stock don't do anything and it grows in value.
I never considered multiple owners as a depreciating factor only that a single owner (or two owner car if it is really old) was a plus if they cared about the car. People get in pinches all the time and can't wait for a fair deal and need cars gone all of the time. Similar to market timing just your investment is a vehicle. Most of the time you see depreciation with cars so it's not the easiest game to play, but it is possible (especially with the retarded inflated prices on certain models on Kauai/in Hawaii.)
There are lots of reason why stocks and house flipping are not the same as "flipping" a car but a simple reason why is :Stocks don't just go up. If you see that does that lmk because i'll spend every last cent on it. A stock's value has many variables one of the biggest being speculation. The market is driven by buying and selling by not what a company is actually worth, but by what an investor THINKS it will be worth in the future - some long term or by short gains. Even mutual funds, which have hundreds of company's stocks, plus bonds and cash equivalents, go up and down in value every second that the market is open.
As far as flipping houses, generally what you see on tv is not a guy buying a house, living in it and then selling it when the market goes back up. The best way to make your money back is to renovate the house, then sell. Usually real estate tends to appreciate in value whereas automobiles depreciate. Especially when it comes to late model cars and jap cars which don't have the collectability as classics. To clarify, because a lot of people would say that you can keep a jap car cherry and it's worth a lot to YOU. But what i mean by collectability is a automobile's worth when actually appraised. Also in houses, because the property it is built on and other things like neighborhood, factor in to it's value, but there's generally no measure as to where the older it is, the less it is worth (unless it's really dilapidated) such as an odometer which does cause depreciation. And not many people can sit on a house until the market comes back up enough to make a profit, so the easiest way to flip in a short amount of time (flipper usually want to sell within days) is to renovate then sell.
I see multiple owners are a lesser value of a car. The more owners, the more chances one of them was a fucktard who didnt change the oil. Even when you go to dealerships they'll state on the used cars "ONE OWNER!" Yeah maybe that one owner was the fucktard, but more chances with the more hands the car has passed through.
Also when cars get damaged, accidents, etc and get fixed, it depreciates the value, not the same with RE. A house gets damaged and fixed, that is a positive, not a negative. There are of course exceptions like Nicole Brown Simpson's Brentwood house in which a tragedy has happened, it's better to just destroy the whole house and start over. Im sure the RE still held it's value though because of the neighborhood it's in.
btw i have a friend who actually watched those late night infomercials and she convinced a friend to buy a list of foreclosures and they were gonna make a lot of money together. So they spend X amount of dollars to get a list of addresses and phone numbers and she told em they were gonna be rich. She tried to convince me to buy into it too so i told her show me the payday and i'll think about it. I haven't heard from her since.
Anyways, like I said, I see what you're saying, but not exactly the same thing.
