My beginnings of the Real Estate Mogul

Well, I've bought my first house. I really like this house, and my partner Albert said, "don't fall in love with the house. It's just a house, and there is an opportunity to do things with it." So I hope I dont, cause it's in arlington heights, and I loev the street that it's on. Really nice and quiet.

I have been so undisciplined lately, and went to be at 3am watching King Arthur. Decent movie, but nothing crazy. I kept looking at the fake sets which were pretty bad....when you have firelight, and the light is constant like a spotlight, or that in the forest, there is a clearing that is perfectly clean and flat without any roots or debris around, it kept detracting from the whole experience. Guess they had to cut corners somewhere.

In any case, talking with my roommate (who is Mr. Doom and Gloom) about the real estate market makes me think that I need to hedge my bets with what I want to do. While I may have 100k to work with, it's not that much when it comes to real estate. So I need to be judicious in how I choose deals. I tend to go all out without care or regard to my position and that always causes problems. I get angry and say "screw it, just do it" without rhyme or reason, and it always causes pain and suffering for me. So I need to learn patience and discipline in when and how I make my moves.

So th4e question is now, when is the real estate going to peak? There are more and more people saying it will peak, and more and more people who are saying it will still go up. I just don't see it, with houses going up 10-15% every year. That's not normal and it's not sustainable, cause who is going to be abel to afford it? Home prices go up with wages, so what factors are influencing the home prices? Speculation. Pure and simple. The only people who can afford houses are the ones with houses, and the ones without houses are getting priced out of the market.

Example: My roommate is a Airline pilot, with a number of years under his belt. So he is making good money and is in a good financial position. He says that it's killing him that he can buy only a small house in the locations that he wants. Now something is worng when a guy who is probably making 6 figures and is single with no other finanacial obligations has to try to make things work to buy a house near the city. So what is he going to do? He'll have to buy farther west, and then work his way towards the city again. Is this what the real estate is going to look like? No starter homes except for condos and townhomes (even townhomes are starting to go for $300k) are in his affordability range. Either the real estate market continues to chug along and the rich keep on getting richer and the poor keep on getting poorer, or at some point it comes crashing down and those who have houses that are upside down are going to get nailed with foreclosures.