Sell Or Hold Plots
Jeremy has two plots of land in Florida, but it's a risky property. Dave tells him to wait a year and then sell them.
QUESTION: Jeremy has bought two lots in Florida and the appreciation is fantastic there right now. However, he has borrowed money invested in risky property. What should he do?
ANSWER: Make some profit over the next year and then sell the properties. The most risk you can possibly take in real estate is to be a developer. The second most risky real estate move is resort-type property. There’s no middle ground – you’re either going to lose everything or make a killing.
If you’re going to invest in resort property, it should be a very small percentage of your investment and paid for with cash.