The *Alternative Media* For Serious Real Estate Investors
3-6 Months from today, we’ll all look back at this day with full awareness that the U.S. economy is solidly on the recovery and expansion path. And a year from now, the whole picture will be entirely different in the real estate market.
Just consider this an “I Told You So,” but in advance.
If you agree or if you disagree - sound off below. Let’s form a concensus independent of the inaccurate media coverage of the real estate market. Comments welcomed…
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From the old names like Ron LeGrand and Robert Allen to the new kids on the block like Preston Ely and Tim Mai, there's a "real estate guru" for every topic and taste. Frankly, many of them turn my stomach. But many of the real estate investing gurus offer something worthwhile. This section of BryanEllis.com is loved by some of the gurus and positively despised by others. But the good news is that all of the reviews are directed by you, my esteemed readers. So do you want to find out who is the "real deal" and who to avoid like the plague? It's all here, click here now: Real Estate Guru Reviews.
Subject-To is the "Mercedes Benz" of creative real estate investing buying strategies. With it, you can buy real estate without getting a loan - all you do is take over payment on existing loans. Conceptually it's pretty simple. But the implementation can be tricky. That's why we're proud to provide complete Subject-To training - including instructions, contracts and strategies - all at absolutely no cost to you. Click here for more: Subject-To Real Estate Investing Training
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16 Comments So Far»
Absolutely impossible in my opinion here in Orlando. I know of lots and lots of people who have not made a payment in over 6 months and the banks have not even started foreclosure.
Prices will fall another 10% minimum in my opinion. There is no demand ( and those that want are having a difficult time getting a loan ) and excess supply. Simple economics. Prices will fall.
We are over a year out, but probably 18 months before the market levels off.
I don’t disagree with you about your market. Orlando is one of those areas that inflated stupidly high. And there are several markets around the country - Las Vegas, Los Angeles, Miami all come to mind - where the bottom isn’t near. My point is that the market as a whole in this country is far stronger than the press would have us to believe. Most property outside of central major metro areas are being largely disregarded in the popular analysis. Since the vast majority of the housing market is outside of the areas that appreciated without any connection to fundamental valuation, I expect more positive rather than negative news in coming months, regardless of media representations. — Bryan Ellis
The media sells the doom and gloom because it appears the general public refuses to focus on the positive aspects of life, they only want the “bad” news.
Well, folks, life is what you make it. Are things kind of bad now - yes! but then, haven’t there always been some negative mixed in with the positives of life - of course - that’s what keeps us focused and hopefully - honest.
This is a prime time to be buying real estate. If you feel like you are taking advantage of the ‘poor people’ get over it. You are actually helping them get a breath of fresh air and a new start that they can afford. You are the answer to their prayers - you are their angels. In my business, most of my clients dont mind that I make a profit as long as I can get them out from under the heavy burden they are under. Educating the client is the key to creating win-win situations.
This is a great business - what are you waiting for?
Three cheers for Carla! — Bryan Ellis
Yes, the RE market is in a slump. Buyers are having one helluva time getting financing. It takes longer to sell …and at a lower price than you’re used to.
However…. It’s a great time to buy. Especially if you don’t need conventional financing. There are DEALS out there. Like, home runs! We just bought a waterfront property, tax-assessed at $243K, for $140K.
There are so few buyers ‘open to buy’, you are just competing against yourself.
I agree–this is absolutely one of the best buying opportunities I’ve seen in 35-plus years of RE investing.
What about the ARM adjustments coming in the next few years? This will affect many who will not be able to afford the monthoy payment and will NOT be confined to the five states having been hit the hardest so far. This will add to the forclosures.
I agree with Bryan, he’s right on, except the 3-6 months recovery. No way. Month after month the foreclosure filings are increasing by the day throughout the U.S. The mortgage crisis will be healed by 2012 if we’re lucky. Carla, if you wish to work hard and die young, keep on doing short sales. They just suck. Time consuming and back and forth to the “loss alligators”, not to mention if there is 2-3 liens on the title, you need to negotiate them all. “I hate them”. They suck and kill my time. Guys listen to me. There is nothing better than investing in an REOs right now. Warranty title, lots of equity to grab AND the property is vacant. If you know how to buy them right, especially in emerging markets, you can count on your new life changing. Banks are DROWNED with REOs and they would love to unload them. No headaches, easy targets. Go for it. Bryan, If I said anything wrong, please correct me.
success to all.
Sam
If thoughts lead to feelings, and feelings lead to action and action to results, then here is what America is saying. The thought of a recession makes our culture feel that dooms day is approaching. This will lead to a paralyzing fear which will result in great loss. Bryan is setting a new course and I’m on board. If we talk more about the positive markets still happening in our country then perhaps our focus would shift. If you want peace, then stop thinking about war. It makes sense to me!
Sam, I use to do short sales and I too found them time consuming. With that said, if I had the right people in the right positions taking action, my results would have been much different and I might still be doing them today. I do agree about the REO’s, but the banks still need to drop their prices if we’re going to get really good deals.
Enjoy and focus on your successes!
Kellie
i hope YOU are right…
I agree Bryan. I think you’ll start to see a turnaround somewhere around 2nd Quarter next year in both the RE markets as well as the economy in general. There are just too many bargains out there and people can’t resist that for long. Don’t you hear the buzz already? A lot of people I have conversations with are saying they want to buy some rental properties to hold until the market rebounds so they can unload them for a nice profit. I’m personally adding these people to my buyer’s list! All this buzz will eventually create momentum and possibly even a buying frenzy when the bottom really hits. When it turns, it’s going to turn fast!
Last night there was a piece on TV showing the cost of a shipping container from China to the US has increased 400%. They named four companies that had shut down their operations there and have hired thousands in the US while transfering their manufacturing operations back to the US.
The bottom is comming!! I gotta get some houses now!
I know that ARMS will affect home owners for 5-7 years. Now, whether the government steps in and renews mortgages with different terms, that is always a possibility and if and when this happens we as investors will adjust. I think we are all at an advantage in understanding ROI and how to invest our time and money properly. As a country, our citizens are under a “now” economy. “What does it cost me right now?” While this is great for us, as we can create terms for any buyer, it is wrong for a sustainable growing economy. I would like to think investors will help to rescue the failing economy and take it upon themselves to educate and readjust their sellers / buyers, debt / credit mindset if they can. I know I do. I would like to think that my contribution will encourage an upswing in the economy and that I will be able to create new homeowner / investors able to sweep up their own communities so to speak by investing in homes themselves.
As far as shortsales go, I don’t blame you. I don’t touch them myself. My full time team does. Their average is 45-60 days at an average of $0.64 cents on the dollar (sometimes less) and if you like, we’ll do them for you and return them to you for your own investors. I know I prefer them to REO’s now. This isn’t an “ad” I just hate to see people give up on a great opportunity like shortsales. We also have a buyer’s list of up to 200 / month sometimes.
Whatever you do, give back! Your community needs you right now!
The best part about all of this is that the opportunities to buy and the ways to buy are abundant in and of themselves.
Bottoms out? Not quite yet…OVERALL. But it will begin to at least slow down; might still get worse here and there, but level out…then hold there, and then finally begin these small, painful, upticks.
Who knows though…3-6 months the world could end
well one thing for sure the stock market is probing and testing the bottom here. One+ year long correction. Once the Election uncertainty clears look out above.
The pessimism is so thick you can cut it with a knife.
Here in Oregon we have declining markets, but most suburbs have only seen a 10% downward shift. Here things appear to be flattening out already with modest gains expected over the next three years. Also, as a mortgage broker, I will tell you that yes, financing rules have tightened up, but loans are still everywhere to be had for the majority of our clients. It takes a little more effort and resourcefulness, but great loans with down payment assistance and closing cost assistance are still plentiful. Another good indicator for some areas is the fact that investors are now in the mix. When the true investors are buying (not inexperienced flippers) you know that the bottom has arrived.
I am in the Mortgage Industry and what our experts are telling us is it could be a year or more before the forclosures level out.. So what! No matter what the economy is like, no matter if people are finding it hard to get a mortage there is hugh opportunity out there.. If it takes 3-6 months or if it takes 3-6 years one this is for sure. I will be buying everything I can as creativly as I can..
I also agree we as investors need to help our communities out. Get involved in local goverment, local homeowners associations etc. Be part of the solution not the problem.
See you in the 7 figure range in 5 years.
My your mind fill with knowledge..Have a great year.
Well…..yes the market is slow,and money is tight….especially if you go with conventional financing…but it’s always been that way dealing with banks….jump through hoops…..tied up in red tape…even in the best of market conditions.And let me say something briefly about these short sales.So many investors are being tripped up in this process,because they know only one way to go.They are so concerned with getting the “property”…well the property is not the issue.I’m going to let the proverbial cat out the bag…in a short sale..I don’t want the property…I deal with getting the “note”,the right to collect the “back notes” from the bank,because if I can get the bank to sell me the “paper”..then I BECOME THE BANK,then you go back to the owner in default…..get the deed,you see you have to reverse the process…”escrow” the deed with the title company,line you up an end-buyer for the property,go to closing….buy the note from the bank…..take the deed out of escrow….record it at the title company…NOW…YOU SELL THE HOUSE TO THE END BUYER BECAUSE THEY FUNDED YOUR DEAL TO BUY THE NOTE…..AND YOU MAKE THE DIFFERENCE.REMEMBER….WHEN YOU BUY THE NOTE…THE DEED IS YOURS!!!!NO SUBJECT 2 NONSENSE,LESS TIME,LESS HASSLE…YOU WORK SMART,NOT HARD!!!
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