8 Responses to “Real Estate Investor Sentiment: The Bear & Bull Battle”

1. Jimmy on April 1st, 2009 12:25 pm

   What is so difficult to see is how to get decent financing to do a deal with out having to flop down 20% or more. I don’t like the idea of hard money lending, to me it’s too risky.
   Thx

2. Bradlee Snow on April 1st, 2009 12:31 pm

   Chris,
   We were buying into the hype that now is an incredible opportunity market in RE and if you can get properties at pennies on the dollar it might be worth it. But, there are economists out there that are telling us there will be a mild blip (like now) as all our tax dollars are thrown at the banks. After all, there has to be some reaction with that much money being thrown into the pile. However, it will be short lived and then the real free fall will start - late this year/early 2010 and last for at least a couple of years.
   Word is, it’s the “D” word. Depression. And it’s going to be a long and deep one according to Harry Dent and other economists.
   The reason for this thinking is sound. The Baby Boomers have peaked their spending years and the Echo Boomers aren’t going to reach their stride (bigger houses, kids in college, etc) for another 12 years or more.
   There is a lot of money to be made in a depression and real estate will be good but not just yet. Wait for the real downturn to bottom out about 2012-2013.
   Check out http://www.hsdent.com. He’s no flash in the pan, he’s has acurately predicted economic changes since the 80’s.

3. Chris Anderson, Ph.D on April 1st, 2009 12:34 pm

   Jimmy. I know some investors feel very strong about that. You should sign up for our webinar next tuesday, entitled Explode Your Foreclosure Equity With Only $8K

4. Randel Melhorn on April 1st, 2009 3:51 pm

   The foreclosure situation is very geographic. Many areas is Houston have experienced no devaluation at all simply because they had little or no foreclosures. Others have been decimated. For example; today, I turned down a refi on a couple with a 790 fico. Less than a year ago an identical home in the subdivision sold for $143K. However, in the last three months two foreclosures sold for $80k and $90k. Both these home sold for the ammount suggested by BPOs. Offers on foreclosures routinely come in over the listing price. It is in RA interest to give low BPOs. How is anyone supposed to make sense out of a situation like this? Until this toxic asset mess is cleaned up and these excessive foreclosures are gotten of the market, there is simply no history to make decisions on. Stats just don’t count. Newer subdivisions, where those 80/20 and other goofy loans were made, have experienced %30 to %40 in just a few months based the listing price a couple of foreclosures and low BPOs and that’s in the top economic area in the nation. We just don’t know how to make sense out of it but if anybody does, please let us know. FEEL FREE TO CALL COLLECT.

5. Harrison Painter on April 2nd, 2009 1:28 am

   In my opinion, I do not care much about timing a bottom. I personally feel we will just be flat, and have a great opportunity to buy over the next 18-24 months.

   I am buying, rehabbing, and selling properties with about 5% to 10% down for the buyers, and it has been working out very well. We are getting the properties cheap enough to rehab, and sell it at enough of a discount where it makes sense to an investor, and still make a little profit on the deal for ourselves. So we have been able to carve out a nice win-win in this current marketplace.

   Now, we must do 3-5 a month for it to make sense, but there are plenty of properties out there right now to choose from in my market. We could do more, but I am very picky about our quality, and for our low down program, I need to buy in areas that the appraisers like so that we can get them closed.

   I never understood this, but it seem that people buy everything when it is on sale except for real estate? The down market should be good news, as long as you did not over leverage yourself in the bubble.

   Anyway, I love your website, look forward to networking with your company, and am excited to attend some of your webinars. As an investor, we NEVER stop learning!!!!

   Thanks!

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8. Dave Broenen on April 3rd, 2009 7:38 pm

   I’m finding–and buying–some of the best deals of my 13 years as a real estate investor. After 8 acquisitions and rehabs (then holding as rentals), my only constraint is finding funding to continue my expansion.

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