Tis The Buying Season

Has anyone else noticed the cycle starting to develope again. When I got into this whole buy ,sell,flip,hold,rent thing I noticed there were many little networks everywhere and over the past two years they have all but disappeared.But now I am seeing the little pockets of wholesale groups and investors starting to surface again. Its actually exciting knowing how many millions we all made the last time around. Do any of the sesoned players see this trend in your area’s.

P.S. Hello strangers its been a while.

Things are indeed starting to develop here in Ohio, but it’s not buying. What we have developing here is a landslide of foreclosures. I heard on the radio the other day that 3% of mortgages of homes and small apartment buildings are in foreclosure in Ohio. I have also heard rumors that HUD is sitting on a huge inventory of homes. To back that up, I personally know of foreclosed properties that have been sitting for a couple of years witout being offered for sale.

I think prices have farther to go down with the start of the recovery not getting started until early '08. If we do have a recession, all bets are off.


yes it is a good time to buy but be careful because all you are really buying is a mortgage payment.

make sure the property supports itself or you can quickly sell it.

Propertymanager is 100% correct.

This thing has just started to get rolling.

This past week the CEO of Horton Homes said to a conference of Wall Street fund managers that “2007 IS GOING TO SUCK” That is a word for word quote. It made most of the papers because CEO’s DON’T say those things. By the way, Horton has 26,000 homes under construction RIGHT NOW in the U.S. This isn’t some nut job creating press for himself.

Do a little digging online, apparently the SUBPRIME lenders we’re all hearing about aren’t the only ones holding the bag here. When things were going gang busters the big banks got in on it too, but they did it a little different. they purchased the mortgages from the subprime guys but with a neat little clause in it that said “if your borrower defaults the paper goes right back to you” in other words you owe us the original amount. That is forcing these subprime guys into bankruptcy at such an alarming rate that the big bank are on the hook in the end. Vicious cycle. IT WILL GET WORSE.

Like propertymanager said…“If we have a recession all bets are off”

That’s coming don’t worry… Honda just advertised for 18 positions down south. These were Engineering, human services, computer jobs, all high paying and all require a college degree… THEY RECEIVED 5,000 applications.

As someone who’s been trying to sell his residence in SC, this is one of the most depressing posts I’ve ever read.

My point was the cycle of realestate for investors starts at the bottom and They are telling us in the media here in florida that we are at or really really really close to the bottom.Remember , we as investors make our money on the buy side .With all the Foreclosures Mike is talking about and all the back log of Hud homes; Im seeing the wholesaleing machines of 3-5 years ago starting to spit some smoke out of some rusty pipes.I think its time to get your financing ready for the spring buying/flipping fling and make a mint again.

I don’t know a single person who is making or has made a mint flipping.

The pending subprime crises; the backlog of foreclosures; and all those gimmick loans about to return to reality don’t signal a bottom. They signal a future crisis with an oversupply of inventory that will take years to resolve and that will cause prices to drop. Democrats coming to power signal higher taxes in the future (especially around 2010). Both of these things signal that the real estate boom is over; the flipping fad is over; and those that survive will be operating consistent businesses, not involved in a spring fling.


I feel sorry (not really) to the investors who try to make a quick buck riding the tides. It sure would suck having your profit dependent on external factors. We’re approaching a deficit as a nation that is becoming so unmanageable that soon we’ll be in a recession. Flippers will be glad when their property investments don’t depreciate faster than their dollars inflate.

Hastedt Life’s Rule #29:

Only dead fish swim always with the stream

Lucky for you your business is not built on luck. I’m sure with your finely honed rehab machine securely in place you’ll make it to the other side without a dent on you.

I know of a couple season pros in preforeclosure buy-out that are coming off the sidelines (taking out HELOC to have ready cash) to get into the action.

with that said, we are far away from a bottom (IMHO). I think we have at least 18 months and recovery is even further out.