Gary Woodland: The Real Estate Bubble Is Bursting

What has happened to the real estate market. First, it was the foreclosure sale that destroyed our home values. Then, banks bought the vacant land because they didn’t want to disturb any development rights…

Gary Woodland: The Real Estate Bubble Is Bursting

What has happened to the real estate market. First, it was the foreclosure sale that destroyed our home values. Then, banks bought the vacant land because they didn’t want to disturb any development rights to the land, so they did not build on it. Now, it is a toxic blend of newer homes built in the 1970s to the new homes built in 2008. On top of that, there is the game of buying and flipping to increase short term income.

In the Las Vegas area it was impossible to sell a house with all the windows and doors broken out, rotting walls, lack of plumbing and electrical, and gutters that wouldn’t reach the ceiling. Well I finally found a new home, but it cost me almost twice as much as the house I had before. The garage was worthless. Everything was rotting, a rat was living under the foundation, and the electrical service never worked. That seemed like a bargain deal for me.

I had seven kids to buy, probably 11, but I got only three. My business partner decided he didn’t want to live in a house like that either, so he got the four of us to partner up and start a company of our own. We put four properties together, about $2 million, and sold them for $13 million in one month.

After that, people wrote me about other real estate investments, so I had to get out of my own business, and diversify. I invested in oil, chemicals, and nuclear power plant real estate.

I bought movie theater real estate, and found storage facilities on the internet. It was not my favorite field, and we lost a lot of money, but we never did anything stupid. I’m 67 and still working. My business partner, who is 19, is studying to be a banker and a lawyer. He’s having a blast.

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