I agree that there are great deals out there IF YOU ARE WILLING TO LOOK FOR THEM (as it has always been)! However, that doesn’t change the fact that prices ARE going lower. There is a huge inventory of unsold property; banks are HOLDING foreclosures without attempting to sell them; and we’re just at the tip of the iceberg. The vast majority of the loan modifications are failing. There is another HUGE layer of residential foreclosures starting in 2011 and the commercial crash hasn’t even gotten started. Housing prices are coming DOWN!
Having said that, I agree with FDJake. You can’t time the market and win. In fact, I’d go so far as to say that if you can’t make money in every market condition, you simply won’t survive. You need to be able to make money this year, next year, and every year!
I knew I shouldnt gave fdjake that address…LOL…Only kidding…There is tons of deals to go around…I actually did a deal with a borrower of mine that owns 4 of the units in the same place…I have watched and funded many deals this year and seen my investors make very good money (in Florida)…In the darkest of times…My logic is if you bought properties in 2006,2007,2008 why wouldnt you buy now?..The condo deal that Im doing was sold to some sucker in 2008 for 175k…I bet there was a bidding war for that 175k too…Now at 19k there isnt any buyers???..Something is wrong with this picture…I calculated after expenses and HOA fees a landlord would make %25 cash on cash on that condo unit…Whats wrong with %25?..I also took major advantage of the shortage of financing available and created a huge cashflow business…Like I said if you dont have available capital I can see people getting frustrated but if you are in the landlording business you have to buy something here…Even the guy I do business with from upstate NY asked me to fund him a property in NJ…A 3 family that sold in 2007 for 565k…He bought the property from a sheriff sale for 215k all cash…The property has an almost $3900 a month rent roll and he manages himself…Once again if you bought in the past 3-4 years what realistic reason could you have to not buy now besides lack of funding…Because prices may go lower?..I’d rather start off buying low than buying 3 years ago…But as we all know some areas are harder hit than others…And Florida was devastated but its selling WAY below the rebuild cost…Im seeing homes,NICE homes selling for $56 per sq foot…Indoor pools,2-3 car garages,granite kitchens and bathrooms,tiled throughout the entire house etc…My father is a homebuilder here in the northeast and he just met with an architect on a plot of land I have in Orient Pt LI waterfront on a high bluff…And Im getting prices of $225-$300 per sq foot to build…Insane…But I have to build and the area around me has $3million+ homes…So maybe I can do it efficiently enough to make some money…What a difference 2 states make…Florida is a gift right now and Im seeing alot of money being made…After lending in the area for the last year and making good money Im taking a dip myself…Worst case I will have a place to take the boys and play some golf (I suck at golf)…Part of the real estate business is seeing when to take advantage of an arbitrage and Im seeing that in certain markets…Florida being one of them…Orient Pt NOT being one of them…
I really appreciate just being able to watch how you set these deals up.
And I know it wouldn’t matter to you, but I called just to get a lay of the land down there…That’s yours man. But it IS exactly what you said it was!!!
Rookie’s got a really nice business model for people who have done the landlording thing and didn’t like it…
For me it’s a nice tie in for my flipping profits…I’ve been the bank for a number of deals but not as many or as big as Rookie is doing…
This is the best part about being here…There’s a wealth of info from a lot of very smart people.
There is a lot of cheap real estate here in south Dallas as well. 2500 sq foot houses for 55$-60$ per square foot. Big 5 bedroom houses with media rooms.
Any market that was predominantly funded by sub-prime loans is probably a good place to start looking for some bargains.
allagash,
A blast from the past…I use to go to Il Nettuno for dinner,then cheri’s for drinks,then Maho Beach Plaza for the comedy shows…Then Cupecoy beach to sober up the next day…My youth…