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I am sure we will see the 2005 Real Estate Market again. |
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Category: Business Strategies Current Grade: A Total Views: 1487 Member Comments: 4 |
Posted on: 02/02/2009 Posted by: Jeff_Tumbarello Blog Points: 5344 View all blogs >> |
I was emailed the other day : " 2005 WILL NEVER HAPPEN AGAIN! "
Never underestimate the madness of crowds and their greed. I am sure we will see the 2005 Real Estate Market again.
This is not the first time we have done this with Real Estate. It is not the last. We live in one big boom/bust cycle.
Stocks brokers have said the same thing in, 1907, 1929, 1949, 1953, 1961, 1973, 1979, 1983, 1987, 1991, 2001, 2008.
The market and those people do what they do, you can only protect yourself according.
FYI, the worse it gets across the nation, the better for us. The cheaper things get. the better the cash flow.
The most depressed bunch I know currently, are Real Estate Pro's who enjoyed 2005. Most of them sell MLM's now.
I remember when Option Arm Mortgages became "COOL". You had "Investors" lemmings really, buying big-time negative cash flow real estate, with a Negative Amortization Loan.
Please explain where the arbitrage is going to come from there?
The property loses money each month, all the while paying no principal or even interest down. It all sounded quite clever at the "cool places" over drinks.
That was not the first go round with that loan product either. A lot of life styles got built and leveraged around those type of incomes.
