Real Estate

Real Estate is crazy nowadays.  Foreclosures, short sales, discounts; real estate has never been so much on sale.  Across the country there are so many ways to become filthy rich if you can find a way to buy up all the discounted sales.  There are developers in trouble.  Banks lent many developers huge amounts of money in the beginning of 2000 and it continued through 2006.  Then the crash came and these developers were stuck with inventory that not only did not sell, but came down in value.  Can you imagine that.  What do you think they can do now?  The only way for these developers to get out of this situation is to sell the product at a loss...a big loss.

This is one of several reasons why you can buy real estate so cheap right now. As explained above, developers are between a rock and a hard place.  They have product that's been sitting there for over three years and now the bank is calling the loan.  Even for developers that are making their monthly payments on time, the banks are no longer willing to give them extensions causing a extremely tough situation for them.  Who will give them financing?  No bank around wants to touch these loans, so they have to go back to their original investors for more capital.  Guess what?  The investors don't want to come up with more.  They already lost enough.  What does all this mean?  Deep, deep discounts for the buyers.  The deals are crazy.  I've seen condos that were once going for $1,400,000 now going for $300,000, thirty cents on a dollar.

If you have capital right now, I'd buy real estate and I'd buy up a bunch of it.  The foreclosures have hit an all-time high and we're seeing the economy at a low.  This is causing people to just dump their real estate at just about any price to survive. You can't be foolish about it and buy just anything, but if you focus on areas that have normally appreciated fast and are in neighborhoods that are always sought after because of their proximities to schools, stores, restaurants and work, you should be great. 

Real Estate is the play right now for all you investors.  The deals are gargantuan. Take advantage now.  Five years from now you're going to be a very happy investor.  For those who can't, find a friend that can and go in half. You find the deal and be partners.