Holy Cow! Could the news get any bleaker? Price declines, softening demand, and the inability to get financing. How can an investor overcome all these hurdles?
It's simple. Stick to the Plan! If you don't have one, make one! Don't invest a penny until you have educated yourself, developed an investing course of action, and reviewed the possible results. Prepare contingency plans, and then...
TAKE ACTION! I talk to real estate investors every day who have analyzed dozens of deals and techniques - but have not taken any action! Don't go to the extreme of analysis paralysis. Focus on an attractive technique or idea, and TAKE ACTION!
If you have ideas but no money - focus on raising money!
If you have good credit and no money - focus on partnering!
If you have a few bucks but not sure the best course of action - make a decision and have faith - Trust Yourself!
Be prudent, check your contingency plans, and take that leap!
If you are in trouble with something you have done/tried - make a decision and TAKE ACTION!
Call the bank, call a realtor, call a lawyer, call ME!
Things are definitely going to get worse. Maybe even much worse. Review your situation, protect yourself, and - OF COURSE - TAKE ACTION!
Friday, February 20, 2009
Tuesday, February 03, 2009
"Shadow" Inventory
RealtyTrac and other respected bean counters in the real estate market are trying to get the word out about a new problem in the housing market - Shadow Inventory.
Shadow Inventory are homes which have been foreclosed by the bank, are technically now on the books of the banks, but have not been listed yet in a MLS for sale.
Evidence points to unlisted inventory as high as 66% of the properties the banks have taken back!!!!
On a slightly better note - additional evidence suggests that most of the subprime paper has been dealt with - properties have been foreclosed, sold or changed hands in one way or another. However, a whole new wave of problems is starting - a bigger problem yet - of alt-a and prime paper defaults. These are by and large bigger loans and nicer properties. In an era of plummeting demand, this points to even greater losses for the banks. Ouch!
Shadow Inventory are homes which have been foreclosed by the bank, are technically now on the books of the banks, but have not been listed yet in a MLS for sale.
Evidence points to unlisted inventory as high as 66% of the properties the banks have taken back!!!!
On a slightly better note - additional evidence suggests that most of the subprime paper has been dealt with - properties have been foreclosed, sold or changed hands in one way or another. However, a whole new wave of problems is starting - a bigger problem yet - of alt-a and prime paper defaults. These are by and large bigger loans and nicer properties. In an era of plummeting demand, this points to even greater losses for the banks. Ouch!
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