InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Annual Reunion Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Are our buyers really going away? Gulp! Posted by LazyMan on August 25, 2010 at 6:32 PM In Reply to: Are our buyers really going away? Gulp! posted by Alfred, SoCal on August 25, 2010 at 11:36 AM All the information we've learned about real estate investing has been based on inflationary periods and cyclical downturns. There are no good sources of information about deflationary real estate investing ( There were some good "Profit from the Crash" books to prepare us, but none for operating today). Some would consider flipping the only way to make money on the downside. This is not a Cyclical Downturn but something very different. Major economic collapse will occur in the next 6-12 months. This will be followed by capitulation prices for real estate. My plan is to sit on the sidelines, accumulate more Call Options on the VIX and PUTs on the S&P and get back into real estate about the time that Ward is buying again. : Existing home sales plummeted in July. The August report will be the same or worse. The deflationary spiral is thinning out the buyers it appears. The government doesn't appear to be willing to put out tax credits again for home buyers, just loans to help them with their loan payments. Even with mortgage rates at all time lows and prices dropping the buyers are retreating. We were getting multiple offers on our properties a few months back. No longer. Are you experiencing this in your market too? I might have to consider going to other parts of the country if I want to continue to rehab/resell. Or shift gears into the right real estate activities that are prosperous in deflationary periods (not sure what they would be). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : All the information we've learned about real estate investing has been based on inflationary periods and cyclical downturns. There are no good sources of information about deflationary real estate investing ( There were some good "Profit from the Crash" books to prepare us, but none for operating today). Some would consider flipping the only way to make money on the downside. : This is not a Cyclical Downturn but something very different. Major economic collapse will occur in the next 6-12 months. This will be followed by capitulation prices for real estate. My plan is to sit on the sidelines, accumulate more Call Options on the VIX and PUTs on the S&P and get back into real estate about the time that Ward is buying again. : : Existing home sales plummeted in July. The August report will be the same or worse. The deflationary spiral is thinning out the buyers it appears. The government doesn't appear to be willing to put out tax credits again for home buyers, just loans to help them with their loan payments. Even with mortgage rates at all time lows and prices dropping the buyers are retreating. We were getting multiple offers on our properties a few months back. No longer. Are you experiencing this in your market too? I might have to consider going to other parts of the country if I want to continue to rehab/resell. Or shift gears into the right real estate activities that are prosperous in deflationary periods (not sure what they would be). [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-date("Y"), InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455