Get Rich off the Crash!
Posted August 19th, 2008 by Treg
output
Well we've predicted it. We've prepared for it. Now its time to Capitalize on it. In all areas of the country the real estate crash has slammed down hard. Hardest hit where the fastest growing areas, California, Arizona, Florida, etc. In California, "Foreclosures ranged from 22.2 percent of resold homes in Orange County last month to 64.4 percent in Riverside County. MDA DataQuick said foreclosures were at record highs and continue to be "the dominant factor" driving sales". Then comes the news that Freddie Mae and Freddie Mac may soon "bundle" their assets for investors to bid on.
Everyone here should read that last line as, "GET RICH". I know, I survived and thrived during the 1987-1991 Savings and Loans $500,000 BILLION dollar bail out. By the time the government had set up the RTC, that is the Resolution Trust Corporation, I was in full swing. My only regret is I did not buy enough. I bought 3 condos for $19,500 each. I bought a S&L bank building. I bought 40 acres of farmland just outside of the City of Phoenix. And I bought all the executive furniture, the mahogany desks of the Presidents at pennies on the dollar. By the time 1995 rolled around I had resold it all, made handsome profits and REGRETTED I did not buy more.
When the S&L crises was all over, I looked back and realized as scary as it was, it was embarrassingly easy to make money. Getting my first deal done on land and getting $300,000 check at the title company never felt so good.
This time around I do not wish to make that mistake again.
I just bought a 3/2 house bank foreclosure, paid $25,000 for it. It was a mess, total wreck. It took an amazing 8 dumpsters to clean it out and rebuild it up. Another $22,000 in expenses. We sold it in 90 days for $109,900. That was a huge profit. Do the math. Yesterday the title company sent me the check. I am back to buy more.
My fellow patriots, you are welcome to join me. Indeed fly in to meet me. Lets get rich together. Or, at the very least, you should be doing it in your own home town! Get out there!
Here is my website www.landtobuy.com and here is a deal if you are looking to get away, a safe place. www.landtobuy.com/freedom
If you can't do it on your own area, join me. I will teach you. Bring what investment cash you have. Lets have fun together. Its embarrassingly easy.
I look forward to meeting most of you at the big event in St. Paul.
In Peace & Liberty,
Treg
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I hate to rain on your
I hate to rain on your parade, but since I have already rubbed Shaka's nose in it for using the forum for private advertising at the expense of Michael whose cost for maintaining this site is probably substantial, then I would be remiss if I didn't give your posting equal time. There is a section for advertising on this site, it would support the site and give Michael the needed revenue to keep the site going. While this is just my opinion, I consider it slightly unfair for individuals to benefit from this site while Michael foots the bill, just my opinion mind you. Yet, I am sure he would consider a welcomed courtesy.
Oh to the Contrary... I am NOT advertizing.
In much the same way as those who post about about Gold & Silver, I am posting up about real estate and foreclosed properties. I believe even Mr. Michael Nystrom wrote about the depressed real estate in Detroit and what bargains to be had in houses as cheap as $5,000. He did not explain how to make a buck at it, but I did not think the subject was "off the table" so to speak.
I thought I made it clear that I buy and sell on my own account, well I thought that was clear enough. Perhaps I should have stated it flat out, but with everyone complaining about going broke, I did not wish to appear .....as bragging or arrogant, just friendly, helpful and believable.
I clearly say, get out there and do this in your own cities. I clearly explain HOW TO.... and if they wish to call me, I will explain it better. But that is it because, I use my own monies and thus, I do my own thing. They can bring their own monies and watch me. Seriously, its that simple. And no, I am not pushing books or CD's or investment classes to my fellow RP Patriots.
Those that seek to escape the USSA and get off grid could and have a retreat to escape too should there be Martial Law, I showed that deal of mine, (my own land)....I could have selected any other land but I also wanted to show WHO I was and "I-walk-the-talk" and thus "put-my-money-where-my-mouth-is", and thus, I know what I am talking about. Just like those seek gold or guns, but you may be right, it could be seen as "self -serving". This criticism is valid, but I am not advertising as I was trying to "show the way". If i did not show who I was or show that I walk the talk, then I am sure many would criticize me for that.
In Peace & Liberty,
Treg
PS. Also, the idea of advertising here did not occur to me. I think this site only advertises Ron Paul stuff, its doubtful that this is the place for real estate investing. It would be a good place to advertise Lassie Faire books where people could buy Von Mises and the kind of books Ron Paul reads, don't you think?.... Perhaps Michael should contact Jim Peron who owns the company?
Agreed, kinda cheeeeeezy
to plug your own real estate ventures without proper disclosures to novices. Just doesn't pass the smell test.......
Apparently there are those posting here that do know a little something about real estate investing; others are complete newbies. Those touting it as "easy" should be ashamed. Risks abound....Anyone telling folks otherwise is no better than the late-nite get-rich-quick schemers that make their money selling books and "programs" ABOUT real estate rather than actually investing in real estate.
If any of us want to advertise a business, business venture, or even real estate for sale.....Why not just buy ad space from Nystrom? At least then our members would know it for the sales pitch that it is....rather than a sales pitch posing as an offer of help.
I'm glad he posted this info
I probably wouldn't have paid much attention to it if it was just an ad on this site.
And, in the first place, how do you even know that Michael is concerned about this type of post?
I'm now sure if Michael is
I'm now sure if Michael is concerned about it, but if you read about the site you will see that at first he didn't want to take advertisements, but due to the cost he chose to do so. I just personally don't think it is fair to profit off of someone else's effort for free unless you are planning on paying for the privilege. It just seems like a mooch tactic. As I said, it was my own opinion I was expressing.
OPPORTUNITYISNOWHERE
What do YOU see?
"Committed To The Eradication Of Poverty Among Patriots"
It's true,...
it's "now here" to take advantage of. Yet, it somehow doesn't feel right to take advantage of the blood, sweat and tears of the people who lost their property that could morally lead you "no where". It's business as usual, right??
yogmama: No not at all
1. Many of those who are losing are not as innocent as many of us believe. They got where they got by practicing wrong financial principles - in most cases.
Their distress is an integral part of their recovery and tuition for wisdom school.
2. There are folks who would love to have reasonable housing for a reasonable price. By acquiring these distressed assets an owner can provide stability for families on the mend. It's called leading by example.
3. In 37 years of teaching and counselling, I've never seen a sincere 'student of life crisis' fail to have remarkable miracles when they seek guidance and are willing to receive coaching from an objective 'set of eyes'. In most cases the 'student' has been under estimating their ability to do well in life.
4. The free market is more spiritual than we think.
"Committed To The Eradication Of Poverty Among Patriots"
Posted On: Tuesday, August
Posted On: Tuesday, August 19, 2008, 10:25:00 AM EST
The Race To The Bottom
Author: Jim Sinclair
Dear CIGAs,
Do you read headlines like the following concerning similar serious bank failures in Euroland?
According to public figures on losses, the FDIC has $38 billion in capital to work with.
There are problems in Euroland, of course, but do you really believe they will catch up to the US in the race to currency worthlessness?
Do you think the Fed has room to raise rates? Such an event would drop the Dow like a rock in a matter of days, killing whatever is left of a down trending US economy.
Ex-IMF economist sees large U.S. bank collapsing
By Steve Goldstein
Last update: 4:34 a.m. EDT Aug. 19, 2008
LONDON (MarketWatch) -- Kenneth Rogoff, the former chief economist of the International Monetary Fund, reportedly said Tuesday that a large U.S. bank will collapse in the next few months. "We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks," Rogoff told a conference in Singapore, according to a Reuters report.
Click here to view article online…
End of Story
Respectfully yours,
Jim
as for me and my home, we shall worship the LORD
SinClaire...you know better
Does he really believe that a large US bank will collapse? Kenneth Rogoff (knowing nothing else about him) is a short sighted idiot. What in the world is he thinking?
First of all...the fed has already bailed the large banks out. They lent them money and took the debt based securities as collateral.
Second...every big bank has over 100 billion in untapped credit. Some of them are operating on multi billion dollar losses per quarter, but how would they run out of operating capital with 100+ billion in untapped credit...especially in the next few months.
Third...Large banks will not fail in this day and age. If it was close to occuring, the fed would step in (once again) and bail madly. Even if a bank were to be on the brink and the fed were to ignore them...another institution would buy them out.
Bear Sterns did not collapse....they were aquired (at a bargain)
Fannie and Freddie did not collapse, and the fed still has not spent a dime bailing them out...despite what these fear mongerers tell you. The fed promised to step in, nothing more.
Still waiting for the huge collapse...I think we've had 9 in 2008. If we have about 1000 more banks go under..we'll be back to the gravity of the S&L crisis of the 1980's.
By the way Jim...your $124 per barrel "hard floor" on crude oil was stupid and wrong...because it's been below this level for several weeks.
Trust Jim SinClair still?
so much for your
so much for your "deflation"!
U.S. economy hit by surging inflationStory Highlights
Wholesale inflation saw prices rising over the past 12 months by 9.8 percent
Rise marks biggest annual increase since the 12 months ending in June 1981
Consumer prices jumped by 0.8 percent in July
Construction of homes slid to an annual rate of 965,000 units in July, a 17-year low
Next Article in U.S. »
WASHINGTON (AP) -- Wholesale inflation soared in July, leaving U.S. prices rising at the fastest pace in nearly three decades. While recent declines in oil and other commodity prices raise hopes inflation may have peaked, some economists worry about the widespread nature of the July price surge and caution it will take more time for that pressure to ease on Wall Street and Main Street.
Consumer prices over the past 12 months have risen at the fastest pace since 1991.
The Labor Department reported Tuesday that wholesale prices shot up 1.2 percent in July, pushed higher by rising costs for energy and a variety of other products from motor vehicles to plastic goods.
The increase was more than twice the 0.5 percent gain that economists expected and left prices rising over the past 12 months by 9.8 percent. That marked the biggest annual increase since the 12 months ending in June 1981, a period when the Federal Reserve was driving interest rates to the highest levels since the 1861-1865 U.S. Civil War in an effort to combat a decade-long bout of inflation.
Core prices, which exclude food and energy, rose 0.7 percent last month. That increase was the biggest since November 2006 and more than triple the 0.2 percent rise in core prices that had been expected.
Elsewhere, the Commerce Department reported that construction of new homes and apartments slid to an annual rate of 965,000 units in July, a 17-year low. Builders continued to slash production as they battled slumping sales and soaring mortgage defaults dumping more homes on an already glutted market.
Wall Street tumbled on the gloomy economic news as investors worried the worst housing slump in decades was showing no signs of a rebound and that the Federal Reserve's tool to combat the weakness -- lowering interest rates -- was unlikely to be used given the sharp jump in inflation seen last month in both wholesale and consumer prices.
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CNN/Money: Wall St. sees stocks slide for 2nd day
CNN/Money: Oil reverses course
CNN/Money: Dollar sinks on weak economic reports
The Dow Jones industrial average fell 130.84 points to close at 11,348.55 after losing 180 points on Monday. It was the worst two-day performance for the Dow since late June.
The steep slump in housing, rising unemployment and a severe credit crisis have worked to offset $92 billion in economic stimulus payments made from April through July intended to keep the economy out of a deep recession. Retail giants Target Corp. and Home Depot Inc. on Tuesday reported that profits sank in the second quarter. Home Depot said it continued to have a downbeat outlook for the year as the housing market shows no signs of recovery.
The July price pressures reflected in part the surge in energy costs that pushed crude-oil and gasoline prices to record highs. Crude-oil prices have fallen by more than $30 per barrel since then, raising hopes that inflation pressures will soon ease.
But the price spikes seen elsewhere in July prompted concerns that the prolonged surge in energy was beginning to show up more broadly throughout the economy, and that while prices may rise quickly, they tend to come back down much more slowly.
"Inflation is way too hot," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania "It took a long time for the surge in commodity prices to seep into the general economy so don't expect one month of commodity price declines to suddenly turn off the inflation pump."
But other economists said they believed the July inflation report could represent the worst for inflation pressures this year if -- and they concede this is a big if -- energy prices continue to decline in coming months.
"A firmer dollar, retreating commodity prices and continued economic weakness should damp inflation by the fall," said Sal Guatieri, an economist at BMO Capital Markets in Toronto, who said he looked for elevated inflation numbers at both the consumer and wholesale levels for another month before they start declining.
Economists saw a silver lining in the continued plunge in housing construction, saying it is needed to help reduce the glut of unsold properties as builders compete with foreclosed homes selling at steep price discounts.
In Crawford, Texas, where President George W. Bush is vacationing, spokesman Tony Fratto said the big jump in July producer prices did not "reflect the recent significant fall in oil prices, which everyone would like to see continue."
The Federal Reserve is caught between a slumping economy, as reflected by the further plunge in housing construction, and the big jump in inflation pressures, which has some Fed officials lobbying for the central bank to start boosting interest rates.
The Fed, which aggressively cut interest rates from last September through April, has held rates unchanged at meetings in June and earlier this month. Richard Fisher, president of the Fed's Dallas regional bank, dissented at both those meetings, arguing the central bank should start raising interest rates to make sure the inflation surge does not become embedded in the economy.
"We cannot afford to gamble away our credibility," Fisher said Tuesday in a speech in Colorado. He warned that the recent burst of inflation could threaten the economy as "a lingering inflationary fever."
Rebecca Braeu, an economist at John Hancock in Boston, said that the big jump in core inflation in the wholesale price report would definitely set off alarm bells at the Fed. But she and other analysts said they did not believe the central bank will start raising rates, especially before the November election, as long as price pressures begin to moderate in upcoming reports.
For July, wholesale energy prices jumped by 3.1 percent following a 6 percent gain in June. That increase reflected big increases in the price of natural gas, home heating oil and liquefied petroleum gas, which offset a 0.2 percent dip in gasoline costs.
Food prices rose by 0.3 percent in July after a 1.5 percent surge in June. Beef prices jumped by 7.4 percent, the biggest increase in nearly four years. Milk prices shot up by 5 percent, the biggest gain in a year, while soft drink prices rose by 2.4 percent, the largest increase in four years.
Excluding energy and food, the 0.7 percent rise in core inflation reflected big gains in the prices of passenger cars and light trucks, pharmaceutical preparations and plastic products.
Copyright 2008 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
All About U.S. National Economy • Oil Prices • U.S. Federal Reserve
Here's some pure facts for you
Your argument has always been that gold and silver = money, and that determines the true value of a dollar.
Gold was $980 per oz in mid July.
Gold is about $800 a month later
Silver was $19.50 in mid July
Silver is about $13 today
Oil was $147 in mid July
Oil is about $115 today
That's an 18% decrease in the price of gold, a 33% decrease in the price of silver, and a 22% decrease in the price of oil.
Would, by your own logic, the US dollar now be worth about 20% more than in mid-July?
Or does your logic only work when gold and silver are going up?
so a cheif economist is an
so a cheif economist is an idiot!??? and i supose that is because he did not go to the same highly enlightened intellectual school where you learned about economics... thats a classic! your wrong JZ you keep apologizing for the FED and FED GOV. again ask the bear stearns shareholders if it felt like a collapse... lol at bargain only you with circular logic!
as for me and my home, we shall worship the LORD
wow and its around 116.00
wow and its around 116.00 now remeber where you said 120.00 so 4 bucks under yours that you predicted what almost 4 months ago? lol a 4 dollar drop in an election year to get sopmebody elected thats really nothing to write home about! now maybe oil might go down a little more to try to get numbnuts MCcain elected .. we will see.
as for me and my home, we shall worship the LORD
That's one of my predictions that has come true
"I'm sure you'll blame election year politics..." for the price of oil coming down...
"Large banks will not fail in this day and age".
Time noted for future reference: 21 Aug 2008 at 11:23am Australian EST.
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
Join us at: www.campaignforliberty.com
Brought to you by: www.women4ronpaul.com
Also note this
I don't consider a buyout by another institution a collapse...regardless of what the media calls it.
Bear Sterns was not bought
Bear Sterns was not bought out, they were bailed out by the Fed via JP Morgan. JP Morgan would not have been able to do it without the Fed's intervention.
If the Fed didn't step in Bear Sterns would have imploded and taken much of Wall Street with it as the mess unwound at a rapid pace.
Now that's funny...
And I don't consider oral sex to be cheating - Bill Clinton
I may not know the truth, but I know when I'm being lied to...
lol!!!!!!!!! as for me and
lol!!!!!!!!!
as for me and my home, we shall worship the LORD
lol.................. now
lol.................. now thats a classic.. ask the share holders who lost there shirts what it was! or the American Taxpayer...
as for me and my home, we shall worship the LORD
No, that's not the same as the remark you made above.
How do you want it served back to you?
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
Join us at: www.campaignforliberty.com
Brought to you by: www.women4ronpaul.com
the crash is not over yet!
the crash is not over yet! as the song says... we've only just begun!
as for me and my home, we shall worship the LORD
And by the time it "will be over soon"
I and other Patriots will have "Cherry-Picked" the best bank deals.
Get out there! Make some money Patriot!
In Peace & Liberty,
Treg
Why are you going through banks?
The best deals are found with the distressed owners.
More yet to come beginning in October.
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
Join us at: www.campaignforliberty.com
Brought to you by: www.women4ronpaul.com
over soon??/ you really
over soon??/ you really think this is the bottom?
as for me and my home, we shall worship the LORD
Sierra...pay attention
Pay attention to Case Shiller. Read the entire report.
The fallout continues in the housing market...but only in selected areas.
Outside of California, Arizona, Las Vegas, and Florida...the pain is largely behind us.
It will be a long time to shed the excess of houses...so the building industry shouldn't be expecting a comeback...but the prices have fallen almost as far as they're going to...outside of very overbought and overbuilt markets.
Also...it's the houses in the middle range that have taken the hit. There is a large deficit in the amount of starter homes for purchase...and taking a dilapidated home in a working class neighborhood and either flipping it or renting it is still a money maker.
Ron Paul said recently that
Ron Paul said recently that we are only 25% or so through the financial mess/correction.
That means he expects 3x more to be in store for us.
He's right
Yes, the effects of this financial mess will be around for a few more years.
The housing collapse did not occur as a result of this liquidity crisis, rather the other way around. It is the housing market that will recover first, which in turn will slowly turn the financial markets back around, and eventually the building market back around.
It will likely be 2010 before banks get healthy again and return to the profitability before this crisis. It will probably be longer for the building industry to return to the pre-bubble levels.
This is a process...yes, we are about 1 year into the financial mess, and there will be more surprises to come. It will not further depress the housing market, for this correction of the bubble was in well underway long before it was felt in the financial sector, thus it will recover first.
I must say JZ ...
your view of likely possible outcomes to the current liquidity crisis is somewhat lacking.
I do agree that it is still most probable that liquidity will normalize within a year.
However, the likely hood of something much worse is severely understated in your tone.
WAHOR!!
http://www.dailypaul.com/...
JZ... bullsh%t!!! its not
JZ... bullsh%t!!! its not in selected areas! its nation wide,,, I know this is what I do! YOU DO NOT KNOW WHAT YOUR TALKING ABOUT! what you read from you lame stream media source is not telling the truth! kinda like bloomberg on oil! if you think the pain is largly behind us tell that to the builder who shorted my check 20% this month because the banks won't lend anymore! you do not know of what you speak.. only what you read from a biased media! by the way,, your post on your 70.00 oil.. don't pat yourself on the back yet! bloomberg is one the biggest mainstream media disinformation propaganda sites around! can't beleive you take everything you read from these people as gospel.. now talking about those tankers with no where to go.. I watched the CEO of a tanker company based in norway sit there and say on cnbc europe that whatever the US is not using we are shipping it to asia! so who ya gonna believe ? the guy in the busininess or a bunch of highly enlightened well educated intellectuals sitting behind a computer keyboard who don't know diddly squat.. and don't tell me about the housing market.. I'v been living this depression for 3 years now! IT AINT EVEN CLOSE TO BEING OVER.. I AM IN THE POSITION TO KNOW WHEN WE'VE TURN THE CORNER AND IT AIN'T' NOWHERE CLOSE!
Dear CIGAs,
Bloomberg is working overtime today.
You know a great way to spin is to set up a false “dummy” and knock it down. Today that is glaringly present in crude. The experts, who are young ladies from central casting, say crude is up awaiting the inventories report. There is no mention that the Russians have tied up all means of energy supply to Europe while Iran threatens to shut down the Strait of Hormuz when and if anyone attacks them.
Major long term supply is contracting and internal geopolitics in oil supplying areas other than the Middle East are negative to energy.
When inventory reports come in negative, Bloomberg drags out all the energy bears within ten miles of their broadcast center.
The most important piece of news is that it is estimated by foreign central bank sources that the take down of US government agency bonds like Freddie and Fannie will drop by 50%. The ramification of that is so dollar negative but who thinks more than one day ahead in our Hedgie and algorithm heaven world.
This is what appeared to be a major spin on paper gold's open interest. That is Dan's department.
Respectfully yours,
Jim
as for me and my home, we shall worship the LORD
Some details
The collapse nationwide was certainly a reality...but it's largely over. As I said...with the exception of CA, AZ, FL and Vegas, the majority of the dropoff is done.
Here are a list of cities that have either gained in value, or lost less than 5% since the end of 2007
Seattle, Dallas, Portland, Cleveland, New York, Charlotte, Boston, Atlanta, Denver, and New York. That's 10, half of American markets have maintained their value.
The cities that have lost between 5-10% of value, DC, Chicago, Minneapolis, and Detroit.
The cities that lost more than 10% of their value over that time, Phoenix, LA, San Diego, San Francisco, Miami, Tampa, and Las Vegas.
Those markets were the ones that were the most overbuilt and overbought in the nation. They made up the bulk of the housing boom, and thus are the ones that will feel the most pain.
The liquidity crisis is still weighing on banks, but the statement that "the banks won't lend anymore" is just foolish. Banks have really tightened their standards, so yeah, they aren't giving jumbo loans to people with bad credit and low income. This is a good thing, for the banks being overly cautious will ensure that people who can afford to buy homes are buying them.
The real estate market has bottomed out for the most of America, and now we begin the process of recovery. First comes the speculators, who buy up houses for investments. Although housing prices have dropped, rents for those houses have stayed steady. There is value again for investment properties.
Next part of the recovery comes the first time homebuyers, they'll buy a starter home which will give those homeowners the ability to start buying up the vacant new homes at a discount. That's where the hole is in the housing market...new homes that were overbuilt. In order for people to move up into these houses, they'll need to unload their starter homes at a decent price.
Once this occurs, then banks will become much less restrictive, and the media will pick up on the reversal in many US cities.
Your business (homebuilding) will suffer for quite some time to come. Probably several more years, because there is such an abundance of homes still available, we don't need any more new homes.
When you talk of the collapse that won't recover soon...it's only the collapse that affects you.
By the way...how can you criticize me for citing a single bloomberg article in my analysis when your analysis consists of copy/pasting from Jim Sinclair?
Hypocrite...
I don't know where you get
I don't know where you get your facts but Denver is not picking up.. this is the city where I live and have owned and opporated my business for 20 years! THERE IS NO PICKUP IN DENVER! WERE STILL GOING DOWN! YOUR FACTS ARE WRONG! the only place that is staying even is Austin Texas! the difference is Jim Sinclair and Ron Paul arre a little more knowledgible about eceonomis then some college educated liberal writing a government misinformation piece.. get a clue! don't call me a hypocrit!
as for me and my home, we shall worship the LORD
Where do I get my facts?
I get them from the Case Shiller home price index, like I said.
The Denver home price index for December 2007 was 130.98. The most recently released figures put it at 129.72 for May 2008.
A little math (129.72/130.98) and that puts the decline over that time to less than 1%.
There is no pickup in your business, because there are too many homes on the market so there's no reason to build homes. The decline in home prices has stopped in Denver, now the market has to get healthy and shed some houses.
"The only place that is staying even is Austin, Texas."
Really? Charlotte, NC and Dallas, TX have increased since Dec 2007. Boston and Cleveland bottomed out earlier this year, and have gone up since. 1/2 of the major American cities have given up less than 5% this year. Still think Austin is the only place staying even?
Criticize me all you like...I predicted $130 would be the top in oil, and it's $15 below that now. I predicted temporary deflation, and the USD has gained recently. I predicted the gold and silver prices would also fall in the short term, and they have.
Jim Sinclair predicted the opposite of all of this. Jim was wrong.
here ya go JZ.... Again Ron
here ya go JZ.... Again Ron Paul himself! telling us AGAIN that we are not even close to a bottom! how you can sit here and paint a rosey picture about the economy is beyond me! again your wrong on the housing market... the builders cannot compete with the repo's that are stacking up.. banks sell them cheap where as the costs to build new homes keep going up! even in a down market! I Know because I'M LIVING IT! NOW TELL ME I don't know what i'm talking about! and again here is Ron Paul himself telling it straight! were only 1/4 way through this down turn.. you guys wanna buy houses and flip em be my guest you will get caught! things are much worse then you think! http://www.petersnewyork....
as for me and my home, we shall worship the LORD
Who said anything about builders
I'm not talking about the home builder industry. Yes, it's going to be a whore's market for a few years...because we have too many homes.
What i'm saying is that the real estate market is going to stop falling. Home prices have shed the excess that was built into them during the bubble years (except CA, FL, AZ, NV) and are ready to stabilize.
Flipping houses isn't the way to go right now. It is time to buy and get a renter. People who don't pay their bills reliably now find banks aren't willing to lend them money, and they need places to live.
You've got a huge crash in prices, without any decrease in rental prices. You don't find that to be an opporitunity?
This is a tremendous opportunity but ...
I always caution people to be patient and never get greedy.
No deal is too good to pass up.
Good luck all.
Wealth = speech.
I am a little concerned with the liquidity crisis and credit crunch, so I will be moving slow.
WAHOR!!
http://www.dailypaul.com/...
Well as the "liquidity" becomes a problem
That is GOOD news for investors like you and me.
Hence, its time to start picking our deals, .....the best deals are now, at the beginning. By the time many see the "light at the end of this tunnel", the best bargains will have been "Cherry-picked" by wise Patriots like you and me.
I "woke up" when i saw that a big Scottsdale multi-millionaire sold his $30 million dollar house for $15 million, move into a $2 million dollar house, and bought a dozen bank properties for $13 million......... Those bank properties where worth $60 million just 3 years ago. Did he make a good deal? I don't know, you be the judge. He has split it all up into smaller investor size peices, the value he should get will be around $30 million. The first small building he fixed up, rented out, and sold when for $7 million. He has 9 more properties to sell. I sat by and watched all this happen, complaining about the collapse. He made money.
Well its all about scale. He is big time big scale. I am small time buying a dozen or so houses. But the formula is always the same. You make your money on the "buy". And NOW is the time to be BUYING bank foreclosures.
(and I feel no remorse for the banks, sorry. Their loss will be this Patriots gain. My point here with this thread is to encourage you to Get off Your Butts, make some SMOKIN deals on foreclosed properties now!)
In Peace & Liberty,
Treg
Treg... just be carefull
Treg... just be carefull were not out of the woods on this! Ron Paul says were only 25% of the way through it! http://www.petersnewyork....
as for me and my home, we shall worship the LORD
Don't forget the demand side.
Not sure how long this thing is going to last. Not worth buying if you can't sell it.
The longer you own it, the bigger the deal you need to get.
Remember there are additional liabilities with property.
Taxes, insurance, maintenance, electric bills, water bills, gas bills.
On a property under $200,000, that eats away at your margins.
Of course you can rent but there are liabilities and risks with that as well.
WAHOR!!
http://www.dailypaul.com/...
excellent comment
I read Rich Dad, Poor dad series and learned the secrets too.
Good idea
The middle of the real estate market is falling out, but the top and bottom remain strong.
Reason?
The top (massive luxury homes) are stil in demand, as there are still many rich people out there.
The bottom...it was never overbuilt. The real estate bubble was built upon medium to very large homes in cookie cutter neighborhoods. It was not entry level (starter homes) that were being built...it was the McMansions.
There is still a strong demand for "starter homes". There are many young people who are still priced out of large homes, but still would like a place to live. Property values have dropped across the nation...but rents are still higher than ever.
You can still make a living from panic selling...but avoid any homes built in the last 20 years because you're competing with too many homes.
I like the bottom, under $200,000
I find that if I buy at the lowest price possible, fix up and resale at BELOW the $200,000 price, I do real well. The reason is most want a new home, or freshly redone home super clean, and a low $1200 per month or less mortgage.
In Peace and Liberty,
Treg
LOL! $200K "bottom"
Where I live, $200K is the TOP of the mid-range of the market. Mid-range is $125K.
Just goes to show: All real estate is local.
Sounds great, Treg...but....
...what about those of us who have had a decade of crappy luck and are continuing to struggle paycheck-to-paycheck? I work 3 jobs, have clipped as many expenses as I can, my wife and I haven't gone out to dinner in 4 years! No birthday presents, Christmas presents...I can't go to the CFL convention...I have a travel trailer that I can't sell so the payments are still there...and my credit is dang-near perfect! I don't want to damage that.
So...what about those of us who just don't have the investment cash? Is there anything WE can do to profit in this economic situation? The banks are making it difficult to borrow, and I'd have to show enough income/expense ratio. Is there any hope for me?
------------------
BC
If you're not outraged, you're not paying attention!
Get INVESTMENT CASH.
That is goal one.
I have no answer for you on how to do that, that is achieve goal one. SO...YOU MUST FOCUS all your mental energy upon this goal. Think of it as a prison cell with for walls, a ceiling and floor and some bars. Then say to yourself, it is a FACT that some smart clever SOB's have escaped out of here, this financial prison that I am in. So, it must therefore be DO ABLE. Others have assembled some investment cash somehow. The question is, how to do it. Perhaps, like movie Shawshank Redemption, you just have to MAKE THE DECISION to get out of your prison, build yourself some Investment Cash. That is the pic that unlocks the prison bars. That is step one.
Then, focus solely upon that goal, once you have Investment Cash, come talk to me. The crazy thing about getting rich, its not rocket science. If your investment "egg" is $5,000, then you roll that snowball again and again. You never eat your snowball, that is the hard part, and many are tempted.
In Peace & Liberty,
Treg
Contradicting information
Two have posted almost back-to-back that 1) you DO NOT need cash and that 2) you DO need cash in order to invest in real estate.
Would you mind clarifying your position on the cash issue?
Be careful
things are still unwinding. Just my two cents.
You don't need cash
You don't need cash to bring to the table to get wealthy from real estate.
Good credit will suffice.
Take a loan out on a rental property...look for asthetic problems, foreclosed, dirty...but fixable with some elbow grease. You can finance the entire cost with 0 down, but you'll have to agree to an 80/20 loan or pay PMI. If it's a good value, do what you can.
Then you spend a little time fixing it up...and get refinanced in 3 months. If you can increase the value so you now have 20% equity (it's not hard to do with a dilapidated house) then you can get a conventional loan with no PMI or high interest 2nd loan.
Now you have only to rent the home (if you want a steady stream of income) or flip it for some instant cash.
It's a risk...but low risk=low reward.
A loan?
What are you mad!?! A loan in this day and age. So I am debt free. Living the high life and oh I'll just get a loan to buy a fixer-upper to flip for a profit. I know who you are.
Your that basket case that went 1.5 million in debt at the age of 21. Yeah I say your ass on Dr.Phil. Quit with your failed land grab and go to work in trying to get out of debt.