Business Week: Worrisome Real Estate Trend(s)... - Posted by Pookie Wookie

Posted by Killer Joe on March 22, 2005 at 17:38:07:


By all means I hope you hit a home run on this deal. Perhaps your wardrobe is state of the art and your pockets are deep.

I’ll just leave you with this. If what you are attempting to do, or have accomplished could be a guaranteed money maker there wouldn’t be a single 2/1 left in my town. Too many investers here looking for deals.

It sounds like your post is saying you already did this and pulled it off. My hat is off to you. You took a long shot and won. I love happy endings. For others reading this thread consider this, Abstract may be in a position to pull this off, it can be done, just do your homework, otherwise you’ll be like our hero in the story.

Abby, all the best my friend,


Business Week: Worrisome Real Estate Trend(s)… - Posted by Pookie Wookie

Posted by Pookie Wookie on March 18, 2005 at 13:35:27:

"NAR reports that 36% of home sales in 2004 were second homes. Of those, the number of people reporting that they made the purchase primarily as an investment climbed from 20% in 1999, to 64% in 2004.

That’s a sign a lot more speculative buyers have come into the market, and that could be fueling a real estate bubble in some areas."

Wow! A climb of 44% in speculative Real Estate Investment Purchases in the time span of only a few Years!!!

This is getting interesting…

Self-interested article? - Posted by Bob

Posted by Bob on March 21, 2005 at 16:23:38:

Isn’t Business Week oriented towards stock market investing? Not as much as Investor’s Business Daily, but I’d bet the more they proclaim the death of real estate the more the brokerage houses advertise with them.

Pookie What’s Your Agenda Here - Posted by phil fernandez

Posted by phil fernandez on March 19, 2005 at 19:04:34:

Anybody else wonder what Pookie’s agenda is. Let’s see. He shows up about 3 weeks ago. Makes alot of dumb posts about doom and gloom and really doesn’t add a thing of value to this board. He has not made one positive post. Probably has never done a deal and never will.

So Pookie what’s your deal ?

A toolbox versus a technique - Posted by John Behle

Posted by John Behle on March 19, 2005 at 12:37:00:

There is a way to make money in any market. Up, down or sideways. It is a matter of having knowledge and tools not just some book on a technique. I think that is probably the WORST development I have seen in the field of real estate education in the last 30 years.

Wannabee investors fail right and left because they are more concerned in using the technique they have been sold as being “The best” instead of actually investing.

It’s like the Saturday Night Live skit about the “Scotch Boutique” which was a store that only sold scotch tape. A store like that fails while Sam Walton becomes a billionaire.

If the market is going up, their are stategies and tools to use to make profit. If a market is going down, their are likewise profitable strategies.

If someone does not know what their market is doing, they are NOT a well trained investor. If they don’t know what to do when it changes - they will likely fail as an investor.

What is a truly funny discussion around here sometimes is people arguing one technique over another, one course over another or one guru over another. Picture a couple mechanics arguing over whether a torque wrench is better than a flexible screwdriver.

There are different tools for different times. Different techniques for different properties and situations. Most of my best deals combine many different techniques. I might be doing a short sale on a second loan, a paper trade on the third loan, a pre-foreclosure deal on the first loan then a refinance after improving the buyer’s credit. Or whatever. I might be using conventional lenders, private lenders and seller financing all on the same deal.

A successful investor should know about seller financing, private financing, conventional financing, marketing, rehab, sales techniques, negotiations and a huge toolbox full of techniques. A successful investor is a problem solver out to make profit by doing what few others can do to with tools, techniques and ideas few people have.

The successful investor is constantly learning from many sources. Investment courses, real estate licensing courses, CCIM courses. They are wise enough to learn from many sources and spend money on MANY books or seminars from many sources rather than throwing thousands at the promises of how some “coach” will lead them to success with a 15 minute phone call a week.

The challenge is there can be a little frustrationa and confusion in learning various options, techniques and strategies. There is a time where the confusion ends and enlightenment begins. Someone that is confused or challenged by trying to entertain multiple ideas is not ready to invest anyway.

I know my answer wasn’t too closely related to your question or observations about the market. It just triggered one of my gripes.

New rule-1 out of 5 posts to have a POSITIVE slant - Posted by rehabber

Posted by rehabber on March 19, 2005 at 24:58:09:

Pookie Wookie -

Geez… you remind me of the vegetarian who works at
the meat packing plant and complains all day about all
the animals getting butchered. If you’re a vegetarian,
you shouldn’t take a job at the meat packing plant.

Yes - there are a few markets (FL, AZ, CA) that
are overheated and a market correction must occur.
It’s okay, it’s healthy, for someone like you to say
“the king has no clothes”.

Despite the bad news about these overheated markets,
there is PLENTY of positive news about REI out there.
Can you puuuuleassssse do this for the rest of us -
For every 5 negative articles you post, post at least
one positive article. I don’t think this is asking
too much… You’re still allowed your negative bias -
on a 5:1 ratio, but at least post something good every
now and then.

Not to psychoanalze, but I think you see the
‘appreciation sluts’ still making money (the dip hasn’t
occured yet) and it grates on you that these people
are making money because you, seeing the potential
down side, don’t have the balls, sack, coogats,
whatever you want to call them to take the same risk
they are taking, so you criticize. Don’t worry,
capitalisitic markets are ultimately efficient and
many of these appreciation sluts will get burned, but
that’s the risk they are taking, and thus, to now
they are still reaping good returns due to the high
risk they are accepting… greater risk=greater

If you don’t want to play the appreciation game, noone
can blame you. That’s your choice. But don’t get
critical because others have decided to go that route,
with all of its inherent risks, are are making money.

Just 1 out of every 5 posts (only 20%) post something
positive for all of us.

Re: Business Week: Worrisome Real - Posted by Sean

Posted by Sean on March 18, 2005 at 14:49:26:

Its called stock market refugees and appreciation sluts… when the greater fool isn’t around, you’ll see most of these folks sucking their thumbs whining for a gubment bailout as their “sure things” wind up foreclosed…

Frankly I can’t wait… I am going to enjoy picking up the mess these folks are digging for them selves… along with some nice profits to boot.

Doom and Gloom - Posted by Recorder

Posted by Recorder on March 18, 2005 at 13:55:31:

Pookie Wookie

Doom and Gloom
Doom and Gloom
Doom and Gloom
Doom and Gloom
Doom and Gloom
Doom and Gloom
Doom and Gloom
Doom and Gloom

Re: Self-interested article? - Posted by Pookie Wookie

Posted by Pookie Wookie on March 21, 2005 at 17:17:54:

Even if they where biased, the statistics quoted from the National Association of Realtors speaks for itself.

Re: Pookie What’s Your Agenda Here - Posted by Pookie Wookie

Posted by Pookie Wookie on March 20, 2005 at 08:54:30:

Never done a deal? I’m near finishing a HUD home and going through the bureacracy of building a house at this time.

My agenda? Interesting discussion on those topics in Real Estate that many are scared to bring up or address.

Re: A toolbox versus a technique - Posted by Pookie Wookie

Posted by Pookie Wookie on March 20, 2005 at 09:11:23:

Hello John,

I bought your “Paper Game” tape set awhile back. I have to say that I found you Very knowledgabe and am pleased in the way you present the subject/tactics of Note Investing.

Although I am pursing building houses at this time, I am considering using some ideas from your tapes by creating nice yielding notes for those buyers that can’t obtain traditional financing.

Thank you for bucking the recent trend of overcharging for sparse/general Real Estate information and giving the customer a good product for the price.


Again John Very Well Said nt - Posted by phil fernandez

Posted by phil fernandez on March 19, 2005 at 18:51:46:


Question for you - Posted by randyOH

Posted by randyOH on March 19, 2005 at 13:44:12:

What technique would you use for my market right now, Orange County, CA? Very hot sellers market, multiple offers first day on market. Some houses selling for more than asking. Median single family 600k. Low-end single family 500k. The low-end house would be 50 years old, 1200 sq ft and rent for $1,500.

Prices have about doubled in the last three years, so anyone needing to sell has lots of equity.

The affordability rate is 12%, so don’t see much more upside left. Downside could be 50% based on a historical affordability rate of 28% and interest rates at a 40-year low.

So how would you make money in this market?

Re: A toolbox versus a technique - Posted by abstract

Posted by abstract on March 19, 2005 at 12:58:45:

Thats know Gripe,thats a powerful, statement thanks!!!

Re: Doom and Gloom - Posted by Pookie Wookie

Posted by Pookie Wookie on March 18, 2005 at 14:43:25:

Doom & Gloom?

This report comes from a Highly respected Business News Magazine. I see this more as an opportunity for prices to readjust to their “true” values.

You carrying on the family tradition? Weren’t your ancestors investing tulips in Holland back in the 1600’s =)

Re: Doom and Gloom - Posted by Wayne-NC

Posted by Wayne-NC on March 18, 2005 at 14:13:56:

Yea but sooner or later, everyone is right at different points in time.

I Value Phils. posts. - Posted by abstract

Posted by abstract on March 20, 2005 at 21:15:54:

Pookie Wookie, I hope with that name you are of the Female Persuasion, hope I spelled that right, Pookie there is no such thing as doom and gloom, if you buy a property in Ca., for say 300k, which is low, but I just closed for 220k and recieved 15k back at closing, but I am building a bedroom and bath on to exisiting, upping my value many fold, so im still trying to figure this doom and gloom thing, no such animal, the jungle creed says the strong will feed.

Re: Pookie What’s Your Agenda Here - Posted by phil fernandez

Posted by phil fernandez on March 20, 2005 at 17:49:33:

I disagree with #2. Your answer should have been boring discussion on those topics in Real Estate that I’m scared about. The sky is falling Pookie. Right on your head. LOL.

Re: A toolbox versus a technique - Posted by John Behle

Posted by John Behle on March 21, 2005 at 12:24:44:

Thanks for your comments.

The funny thing is the majority these days don’t really appreciate value. They would rather spend thousands for a milk toast course from someone that has been in the business for a couple years than a couple hundred for 30 years of real world experience.

It makes as much sense as having a tiny toy poodle as a watch dog because he is cute, came in a nice box and the pet store said he is the best watch dog in the universe.

So, you received on of the last courses ever produced because it’s just not worth the trouble to deal with. After years of successful people saying it was the crucial factor in their profitable investment, it has deteriorated to having to answer emails of people who don’t like the packaging or some tiny thing like a vacuum cleaner passing by in the hall of the hotel where it was filmed.

People value the expensive courses because they paid so much for them. It’s not really about education any more. It is about advertising, P.R. and promises. I won’t promise someone they will make $10,000 a month working a few hours a week from their kitchen table in their pajamas. Instead, I show them real deals, a real plan and a solid education. I make more in a deal or two using the techniques I teach than the the top “brokers” make in a year or two. The irony of having to spend my time justifying someone’s purchase of my course (when they haven’t even listened to it yet) became too annoying. I’ve basically lost interest in it. There are far more valuable ways to spend my time and energy.

I Agree With Robert - Posted by phil fernandez

Posted by phil fernandez on March 19, 2005 at 18:59:03:


I’d ride the crazy appreciation market but here’s what I’d do to protect myself from a sudden correction. I’d only do straight options or sales agreements with ample weasal clauses just in case.

With a straight option you are preying on the seller’s greed. And that’s ok. Make sure you are going to make money also. That’s why you’re in this business.