Sheehan dumping Ferraris for real estate

I think that dude ain't so bright.

 

i completely disagree. i will admit,i have bought two cars from him over the last several years. however, the ferrari market is strong and the california real estate market is falling to "below" norm levels. i live in texas, but now is the time to take advantage of the surpressed real estate market in california if you want to live there.

to sell a ferrari at "peak" value and buy a piece of california real estate at maximum distress value is the smartest thing i think one could do in the current market

for those of you questioning the idea, you are already behind the curve.......

 

sux to dump the cars, but 10 years from now he can buy them all back and own a few buildings!!!

 

Isn't the southern coast of Florida filled with brand new empty, unsold, condos gathering cobwebs that were built by speculators who were "ahead of the curve"?

 

+1

 

He's wise, actually. It's a buyer's market now. And values will only go up. Had you the capital to invest in California real estate, do it now. The prices here even when low are not ever affordable anyway. They will only go up again.

 

California re is still way overinflated, speculators have bailed ill bet even these bargain prices now still don't pencil out and the rents won't cover the nut

 

None of those cars he has produce income unless sold...

 

simply put and very true!

 

A guy that has to sell cars (of all things) to buy a real investment didn't have enough jack to have all of those cars to begin with.

That's about like me saying I'm going to have to go pawn off my wife's $100,000 fur coat and diamond necklace so I can afford to buy an apartment building.




btw, my wife doesn't have a $100K fur, but you get the point.

 

Husker

Do you think Steve Wynn walked into Vegas with cash and purchsed everything he has out right? He worked his way there, just like guys that sell "a car" for a few million and invest in real estate do. I think he is right on the mark.

 

The only thing a down market means is that stocks/real estate are on sale, buy it when it's cheap it always goes up.

 

Peak car values were 2006. Real Estate bottom for most of the U.S. won't hit until November of '08, with the worst hit areas (Miami!) being down for longer.

So Sheehan is sort of averaging out peaks/valleys...he's not ahead of the car peak, but he is ahead of the real estate valley.

 

If Sheehan wants to sell some cars to buy potentially far greater r.e. asset values for the future, I don't see how that is something to diss the guy about. He's moving the money around and playing his hand the way he wants. I doubt he just thought of this last night and decided to sell today.

 

indeed!

well said!

 

mo doubt, but at distresed prices, the unusual makes sense. i, myself, was in florida three weeks ago for this very reason

 

you have completely missed the point. forget mike. cash out the high ticket items and buy the low ticket items (but most likely to return). buy what you sold when it crashes. i don't see the problem

 

Mr Sheehan needed to do a little more due dillegence before he made his investment. The real estate market has a long way to go. There are a lot more forclosures coming on the market. Monthly forclosures in his market are more than monthly sales. Comercial real estate is the next one to implode. After commerical implodes apartments with more than 4 tenants are next as many holder of comerical properties also hold these and will be forced to liquidate In bubbles like this it usually takes 9 years from the bottom for prices to come back to previous levels. We are not close to the bottom yet. There is still a big disconnect between fundementals and pricing. After the bottom look for traditonal rates of return in real estate like 3-5%. Party if over it is time to create a new bubble.

As for selling now it may be a good time to sell the Ferrari's. I would put money in other investments rather than real estate.

 

"Usually"? How often have we gone through a bubble like this one?

 

I completely agree. I would like to buy some commercial real estate here in Los Angeles over the next couple years but Im waiting a while. Nobody knows when the bottom will hit but my bet is to wait at least 18 months.

 

If you're careful, you can buy decent properties at 11 - 12 times annual gross. That pencils out, especially if you put 50% -60% down. By my count that yields about 6 - 7% after tax, not counting appreciation. Many fortunes have been made in California real estate. I don't think that multiple units are going to drop any time soon, at least in Northern California where the rental market is very, very strong.

Art

 

Yeah, but that area is actually a bust. So Cal will always be strong. There's a reason Florida was empty until now! All the good places got built up, and some people thought Florida was great because of the beach. They overlooked a few things.

Good move on Sheehans part. Regardless of what's on the news about the country as a whole, RE is still going strong here. Desirable area will always be so, and there's no shortage of buyers. My properties don't stay on the market for more than 45 days. The crap parts of California are definitely getting hit hard though, but nobody really wanted to live there anyways.

 

IMO anyone selling a sought after collectible right now is doing so because they have to. Despite what they tell you.... The smart money is waiting out the storm.(and it could be a long storm)