Good Debt

What do you think of “debt?”

More so in recent years, debt has been viewed as more of a “bad thing” than “good.”

Examples such as sovereign countries being overrun by debt and regular folks being overwhelmed by student loans and credit cards made debt such a scary thing. Yes, for the most part, debt can completely own you. It can take away your things, which is all too familiar for former homeowners out there.

On the other hand, careful use of debt can be a powerful tool. After all, debt is not only used for consumption. It is also used for investment. I have written about the benefits of debt in real estate before. However, I think I might have missed a couple of ideas.

What Should I Do Next?

I came across this idea recently when I was thinking my next strategic step in real estate. Based in Vegas, I have seen the town experience a much higher increase in prices during the past year and a half than most of the other towns out there. I had never expected the rise to come this fast, although I knew that the forces like the government and banks worked together to make it so. Nevertheless, this pace of home prices had to stop at some point. The housing market does not only contain investors and hedge funds. The housing market needs the regular Joes out there to buy. And for the past year and a half, regular Joes out there didn’t have many chances to acquire properties.

But the chances are coming back. The smart money is starting to liquidate. If you scan the news carefully you can see many hedge funds are exiting real estate investments by either getting sold to another company or starting an IPO (while in the first housing …read more