Any appraisers buying these foreclosures?

[Riick]

Everyone was even by 1954.....Now that's a time line.

Greg...
When I can buy a rental in a strong neighborhood, where tenant pays heat & electricity,
and the GRM is around 60, I could care less what it's going to re-sell for in 20 or 30 years.
Investments like that are truly long term investments, you don't want to let them go.

 

[Riick]

I've always thought (and was taught) that rentals should always produce a healthy positive cash-flow.
Why else would you own them; for the aggravation???

INVESTMENT: "The use of money through various vehicles, or an individual's time and effort, to make more income or increase capital, or both.
"The term `investment' infers that the safety of principal is important.
"On the other hand, speculation connotes that risking principal is acceptable."
.

 

[beowulf]

Last Jack....
Your projection about the 5 years-from-now profit scenario was certainly valid for the last several recessions, but we are about to enter something that may make the great depression look tame by comparison. Nevertheless, I like your ending statement .... "but you know its going to get higher again, it always does." Better your money than mine. I already own more rental property than I should and now have to worry if I will be able to keep the occupancies high enough to carry me through the treacherous times that lie ahead.

 

[Steve Metz]

When wages start going up you will know the bottom has been reached in the housing market.

 

[beowulf]

It's going to be hard for wages to go up in an period of deflation followed by a period of hyperinflation that's coming over the next several years.

 

[Jerry Dell]

I have been buying rental houses over past 19 years. I am worried about delinquentcies will become in this bad economy. Bad economy affects lower income people than any other income level. Be careful about positive cash flow and realistic vacancy.

 

[Last Jack]

"There are no Accidents."
Thank You, Herr Doktor Freud.

Riick, an excellent contribution to the thread.


Cash flow should be the reason for purchasing rentals, however we all know that there have been many who have ignored that and speculated for future appreciation despite negative cash flow.

This thread is proof positive that just like L's & A's, everybody has an opinion. There are those who will sit on the sidelines w/ cash in the mattress and there are those who will make wise decisions and be better for it 5, 10 or even 25 years down the road. I don't care which you are and I'm not trying to convince you to do something you are not comfortable with. I'm only telling you what I think and am doing. Just don't be a miserable appraiser blaming everybody else for your inability to move forward.

 

[Riick]

When wages start going up you will know the bottom has been reached in the housing market.

Now THAT's an interesting concept.
I was going to ask you to explain, but I'm guessing that what you mean is:
Once people have surplus income again, it can go into housing.
Hummmm.. but then again, it can go into a new(er) car or clothes, or whatever;
why in particular should/would it go into housing?

 

[beowulf]

I'm not a miserable appraiser Jack. I happen to love what I do and maybe that's why I have more work right now than I can get too.

 

[murray stroupe]

RE & Other Markets

Buying foreclosures is a bit like investing in the stock market right now. You never know if your buying at the bottom. We are entering uncharted waters with the economy and there are as many experts out there forecasting the worst is yet to come as there are those saying that we have already hit the bottom......

=============================
Good points;
noticed its much easier for me to lose [long or short] in stocks than Real estate.

Mainly because of stocks having much more volitility[roller coaster wide ride];
than TN real estate.

And by any and all measures , mostly stock indexes are in a bear market, probibilities still point downward;
selective TN real estate looks better for buyers.But the last property i had earnest money on, think the seller may have done me a favor by breeching the contract with an unacceptable survey.....

Bear market in stock looks like its got much more downside risk[or short opportunities];
than TN real estate..................

While gambling & stocks are both easy to lose money on ;
no stockbroker ever threw a winning customer out[for winning ] ,llike casinos frequently do.

And i had a country banker ask me one time about the purpose of a loan once ;
he said he would loan for real estate, but not for stocks.