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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Amen! Posted by Tom on May 02, 2009 at 1:52 PM In Reply to: What wasn't amusing was posted by Kristine-CA on May 01, 2009 at 5:26 PM Kristine it's nice to see you posting on the board more often now. We need more posters like you with well thought-out answers and fewer of those who shoot from the hip. Writers aren't real estate people. It may not even be a business writer who wrote the article and it wasn't in the Wall Street Journal or Forbes. Regardless of the writer or publication one has to take it with a grain of salt. You said some things that we're right on in your past couple of posts. Some banks don't only won't accept second liens, but loathe them. Generally, they're small independent banks that are very conservatively managed and will never need govt intervention under their present ownership. One of the dirty little secrets is that there's too many (much) deposits (capital) chasing too few quality loans. It's been that way for at least a generation. New lenders have to take the marginal (code for substandard) business that the established lenders won't touch. This country has been overbanked for decades. Another excellent point was that anybody can make money during a RE bubble provided they buy and get out before the bubble bursts. Always has been that way in any investment medium, always will be. Unfortunately, most can't see when the market tops. As far as hard money lenders while most have an idea in the abstract they don't have a clue what all the problems can be once things go south. They take loan/collateral liquidation way too lightly. It's very obvious if you read any RE or investor boards. There may be a few exceptions, but I haven't see any yet. Of course those that know what they're doing probably aren't posting to boards for answers. Most weren't in the business in the late 80s-90s, let alone the severe recessions of 73-74 or 81-82. They'll have a better appreciation for the process after this downturn. Most people vastly underestimate RE. I have a few ideas why they do, but you don't see that attitude about accounting, medicine, law, and other disciplines. I see this daily. Most are not very coachable. Those that are coachable will believe about anything. It's just human nature. Follow Ups: Re: Amen! Kristine-CA 5:53 PM, 05/02/09 (2) Underestimating RE Tom 8:31 AM, 05/04/09 (1) Re: Underestimating RE Kristine-CA 10:49 PM, 05/05/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Kristine it's nice to see you posting on the board more often now. We need more posters like you with well thought-out answers and fewer of those who shoot from the hip. : Writers aren't real estate people. It may not even be a business writer who wrote the article and it wasn't in the Wall Street Journal or Forbes. Regardless of the writer or publication one has to take it with a grain of salt. : You said some things that we're right on in your past couple of posts. Some banks don't only won't accept second liens, but loathe them. Generally, they're small independent banks that are very conservatively managed and will never need govt intervention under their present ownership. : One of the dirty little secrets is that there's too many (much) deposits (capital) chasing too few quality loans. It's been that way for at least a generation. New lenders have to take the marginal (code for substandard) business that the established lenders won't touch. This country has been overbanked for decades. : Another excellent point was that anybody can make money during a RE bubble provided they buy and get out before the bubble bursts. Always has been that way in any investment medium, always will be. Unfortunately, most can't see when the market tops. : As far as hard money lenders while most have an idea in the abstract they don't have a clue what all the problems can be once things go south. They take loan/collateral liquidation way too lightly. It's very obvious if you read any RE or investor boards. There may be a few exceptions, but I haven't see any yet. Of course those that know what they're doing probably aren't posting to boards for answers. Most weren't in the business in the late 80s-90s, let alone the severe recessions of 73-74 or 81-82. They'll have a better appreciation for the process after this downturn. : Most people vastly underestimate RE. I have a few ideas why they do, but you don't see that attitude about accounting, medicine, law, and other disciplines. I see this daily. Most are not very coachable. Those that are coachable will believe about anything. It's just human nature. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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