I Respectfully Disagree with Your Market Analysis

He Said:

DEAR JOHN

GREETINGS.
THANK YOU FOR INFORMATION, UNFORTUNATELY, I WAS INFORMED, THAT ------------------------------- (IT)IS NOT A WISE PLACE TO INVEST AT THE MOMENT, MARKET IS DOWN AND HEADING DOWN, HOUSE PRICES FALLING AND TAXES ARE SKY HIGH, PLUS MANY TENANTS DEFAULTING ON RENTS.
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I Replied:

Hello Investor:

While I respectfully understand your assessment of the the market place in the Sullivan County, New York Catskills, I'll comment that your conclusion actually applies to almost the entire country. You seem to be a very serious investor and a person who knows the rental business. My grandfather was an immigrant who made a fortune in NYC real estate prior to the Depression. After the Depression, he made yet another fortune. Why?

Because he had some cash that others didn't have and knew opportunity when he saw it. There are always tenants who will not pay the rent. That's just a simple fact. Taxes go up just like all other items. Now, can you get a better deal for your money? You may be able to find property where taxes are low and tenants always pay. When you find that situation and can guarantee it, I'd like to be your partner.

My meaning is very simple and straight forward--you've been around awhile and so have I. Tenants will always be tenants. Taxes are a sure bet. "Experts" are a dime a dozen. I can find you experts on both sides of the fence saying exactly the opposite of each other on any given topic on any given day. Those who do not follow the crowd are the most successful investors and property owners.

I can find many reasons not to buy. Everyone of them makes sense. Every one is logical. We'd still be in the stone age if those who really knew didn't take a chance and bet the bank on an idea that came of age and made an absolute fortune.

To sum up Sir/Madame-I'm not trying to convince you that this situation is right for you. I am responding to your logical comments--because they make sense, but miss the mark. It is exactly because taxes are high and some tenants may not pay (As far as I know, that doesn't happen to be the case with these apartments), that you'd get a super deal on a place that will pay for itself over time, year after year, through good and bad times. That's just the way a solid income property works if you maintain it properly.