It’s Wise to Wait on Real Estate Investments
Published August 27th, 2007 in Uncategorized. Tags: No Tags.I have stated that now is not the best time to be investing in real estate markets (as dweller or investor). You will begin to see decreases in mortgage rates (mid-Fall) and home prices will continue to erode into 2007. Most at risk are the higher end homes, $500,000 and more. Many of these homes could lose another 10-25% in some markets.
I would sit on my hands for a little bit, WealthBuilder discusses some of these issues.
thanks for the link.
how did you accumulate 55 houses? is there a post about it?
As an investor myself, I would say look for the deals and pick up what you can. Not everything will be worth it, but still some are. Doing foreclosures and REO’s will be tough unless you have cash at hand or backers. Plus banks are seeing investors as sharks (or crabs) at this moment.
If you are a one-timer or someone that jumped on the money (aka flip this house) train. I would suggest stay out, because you may not have the reserves to hold or proven income to buy. Banks are returning to the 90’s when it comes to lending and you better be strong with both your credit and income to close on a home/s. Also including strong relationships within your team. Still a good time and again it will be said at some later point that some people have made millions during this down turn.
Good luck!
@ WBL
I entered the market at a good time in the late 90s in a depressed urban area that boomed. I rolled up equity in the homes throughout the beginning of this decade and have slowly been deleveraging since around the end of 2004.
@Hugh
There are deals out there, but for unseasoned investors the risk/reward ratio has become much less favorable.