Houses will be free soon - Posted by Leo

Posted by brandon on August 27, 2011 at 24:15:28:

Had an uninteresting call from an unmotivated seller yesterday. House is worth maybe $45k they want $60k or more.

She says something like, “someone could really make some money and buy this for $55k cash.”

I said, “If I had $55k in CASH…I wouldnt even consider LOOKING at your house”

she (now kinda shocked) asked, “why not?”

I replied, “I just closed a fully leased 3 unit for less than $2k of my money. With $55k I could probably pick up 25 units or more so why would I want a vacant SFH that needs several thousands in repair.”

Houses will be free soon - Posted by Leo

Posted by Leo on August 24, 2011 at 19:18:12:

Bank stocks are getting destroyed for a reason. Their shadow inventory will be forced on the market for nothing. Global recession looks likley. What will that do to rentals? Won’t matter. Our country is broke. Unemployment will tick higher as taxes are raised on the state and federal level just to cover basic expenses and services. Prices will keep falling. Buy today and you will cry tomorrow. Just playing devils advocate. Would rather have a stack of cash now and wait for the dust to clear. I can move into gold, stocks, whatever if I am patient. Not buy and cry.

Re: Houses will be free soon - Posted by Dr. B. (OH)

Posted by Dr. B. (OH) on August 31, 2011 at 21:24:28:

Leo,
Seems some folks here don’t understand the national or global picture. I’m with you. Gold and the DOW will go to $5000, Silver to just under $500, real estate to less than today. My research suggests this will be so in the next 2-5 yrs. The best time to buy real estate is not when everybody is selling. It is when everybody is selling and NOBODY is buying.

Steve

its human nature to want - Posted by David Krulac

Posted by David Krulac on August 27, 2011 at 19:06:45:

to be on the sinning side. Gold is on the rise. and Real Estate is declining.

HOWEVER, investors know that you buy when everybody else is selling and sell when everybody else is buying.

IOW, sell your gold and buy real estate

“Free” from REO purgatory? - Posted by HankFL

Posted by HankFL on August 27, 2011 at 12:08:39:

Man, I thought that more REOs would be freed. Screw this, I’m out’a here.

…My Comments - Posted by acw

Posted by acw on August 26, 2011 at 09:30:34:

Free…???

I don’t know if houses will be free…but there will certainly be a Larger Separation in Classes; Those who own…and those who don’t.

Inflation will drive the cost of building a home RIGHT through the roof…and once the present inventory of homes is absorbed…home prices will ESCALATE. Keep in mind…this may take 10 yrs to acomplish.

Jobs drive the Market. If Americans don’t head back to work…and soon…the housing market will continue to decay.

This government better do something about it…like keeping jobs in America (just like the Germans do).

Re: Houses will be free soon - Posted by phil fernandez

Posted by phil fernandez on August 25, 2011 at 10:53:12:

Oh sure, buy gold at record levels. Leo, you’re thinking on all cylinders here. The world’s coming to an end. No need for houses anymore. We can live outside. Is housing not a necessity.

Re: Houses will be free soon - Posted by Jeanne

Posted by Jeanne on August 25, 2011 at 24:36:14:

Yeah, buy some gold right now. That’s a plan. While real estate is ON SALE go buy gold at the top of the market.

Re: Houses will be free soon - Posted by Chris in FL

Posted by Chris in FL on August 25, 2011 at 24:13:15:

Leo,

You forgot, ‘The Sky is Falling!’ Let’s hide under big rocks and wait until after it crashes. We will be able to come out safely in a few years, and have the world all to ourselves!

Leo, study history. Everything is cyclical. If we aren’t at the bottom, we are at least well into the dip… It is very safe to buy, if you know what you are doing. Buy cash flow, not potential appreciation. Let your tenants buy your properties for you. Beauty part is, if you do it right today, and it takes a while before the real bottom, you will still be ahead because you will already own the houses you buy today free and clear, purchased for you by your tenants. I am buying mine now with 7.5 year mortgages, positive cash flow, and little money out of my pocket (and that comes from my other rentals!). Plus, if they get cheaper, I have a plan! I will buy even more, faster!!! It works (so I don’t have to)!

Best wishes,
Chris in FL

Re: Houses will be free soon - Posted by Michaela-ATL

Posted by Michaela-ATL on August 29, 2011 at 19:05:37:

Hey, Phil,

How are you doing up there? You’re in vermont, right? I’m reading that there’s so much damage in your state.
Did you make it through ok?

Michaela

Re: Houses will be free soon - Posted by Leo

Posted by Leo on August 25, 2011 at 11:43:45:

Explain to me how gold will not keep going up. Western governments are all broke. They will continue to print money and inflation will soon hit. Gold has outperformed real estate for years now including this one.

I am also wondering if many of these vacant homes will be offered out as welfare soon considering unemployment is getting worse not better. Free housing for anyone that needs it. It would go to the poor and working class that many here seem to say are there bread and butter.

You might be competing with free rent offered by Uncle Sam soon on all your rentals. I see no sign of a housing bottom anyway so housing is just a depreciating “asset” until proven otherwise.

I don’t see how anything I am saying is doomsday, it actually all seems very likely. None of us have lived thru a depression to say it won’t happen again is very naive, especially considering we are tracking the unfolding of 1929 depression pretty closely right now especially with the way the stock market is now behaving.

Re: Houses will be free soon - Posted by Barbara King

Posted by Barbara King on August 26, 2011 at 10:50:47:

The trend seems to be pretty clear. While real estate
still declines in many areas, gold will be way over 2000.

Re: Houses will be free soon - Posted by Lee

Posted by Lee on August 25, 2011 at 03:10:02:

One great thing about real estate is the tenant pays
off your asset.

I have never had anyone pay for my stocks & mutual
funds. Ever tried to live in a gold brick or get rent
from it?

Re: Houses will be free soon - Posted by phil fernandez

Posted by phil fernandez on August 30, 2011 at 12:38:28:

Hey Michaela,

I’m just outside Montpelier, Vermont in central VT. We don’t get many hurricaine/ tropical storms up here. Usually the mountains weaken the storms. This one for some reason was different. Ran through Vermont on Sunday as a tropical storm dumping about 10 - 12 inches of rain. It all came down off the mountains into the medium and than larger streams and rivers.

All my properties are ok as they are up and away from the rivers, but CRE investors John and Jeff incurred some heavy damage.
John lost a couple of mobile homes and Jeff had major flooding with a couple of his apartment buildings. We also lost some nice 150 year old covered bridges.

It is a mess up here with villages still isolated. I heard today they are doing food and water drops from the air. Day by day it’ll get better.

Hope you are well.

Re: Houses will be free soon - Posted by phil fernandez

Posted by phil fernandez on August 25, 2011 at 14:16:54:

You say they will print more money and inflation will take off, yet in your original post you talk about sitting on your money and waiting. Waiting for what. Are you waiting for inflation to erode your buying power of all these dollars you are sitting on.

Also on another point. Can you leverage to buy gold the way you can leverage to buy rental real estate.

Re: Houses will be free soon - Posted by michaela-ATL

Posted by michaela-ATL on August 30, 2011 at 20:13:24:

Phil,

I was thinking of you when I read about all the chaos in VT, since you’re the only person I’ve ever met from Vermont. I don’t know John or Jeff, or maybe I just don’t recognize them because the first names are generic and most creo posters don’t identify where they’re from.

I have a bunch of rentals in Atlanta, but otherwise I’m totally into my current foodie venture. Was just declared 1 of 12 emerging markets by Bon Appetit magazine.

I get bored if I always do the same - lol

Stay dry

Michaela

Re: Houses will be free soon - Posted by Mike

Posted by Mike on August 25, 2011 at 23:37:34:

You can buy gold via options just like real estate. I just made $52,000 last Tuesday in one day with only very little money and effort.

grandpa’s wise advice - Posted by brandon

Posted by brandon on August 25, 2011 at 16:45:57:

dont ever argue with an idiot.

Uh, huh. - Posted by Jeanne

Posted by Jeanne on August 26, 2011 at 24:38:42:

Anonymous email address person. Sure.

Re: grandpa’s wise advice - Posted by Leo

Posted by Leo on August 25, 2011 at 22:04:44:

That’s not nice. Insults are the only refuge of the clueless. I guarantee I have made waaay more money than you have investing in real estate and equities. I’m definitely not tied down to depreciating assets right now.

But by all means keep the blinders on. I’m sure you have lived thru many double dip recessions before. Lol.

What’s funny is my prediction is already coming true 24 hours later after my post. Boy that was fast.

First discounted mortgages for the poor.
Then 0% mortgages for the poor.
Then free houses will be handed out in the very lower middle class type neighborhoods everyone here is pimping. For the poor of course.
No one ever loses money in real estate!
Enjoy.