6 - 11 million more reposessions to come

[thriftybob]

Quote from DrPepper:

I recently attended a conference on using a self-directed IRA to buy a variety of different investments. There were people there buying foreclosures and REOs for 10-30% of market value, then fixing them up for a few thousand dollars and selling or renting them.

Everybody thinks that the real estate market has bottomed because the government's $8000 tax credit for first time home buyers increased the sale of homes in the last few months. Don't believe it. We are in for a double dip recession (depression?) starting in the spring due to another large wave of foreclosures.

The saying goes: The first mouse gets killed, and its the 2nd mouse that gets the cheese.

When those investors get creamed by the next big wave of foreclosures and unemployment, and are dumping in despair, maybe then it will be time...

 

[DrPepper]

Quote from thriftybob:

The saying goes: The first mouse gets killed, and its the 2nd mouse that gets the cheese.

When those investors get creamed by the next big wave of foreclosures and unemployment, and are dumping in despair, maybe then it will be time...

My sentiments exactly. Despite all of the deals, I think that real estate is going to get worse next year, setting up even better buying opportunities.

 

[dandxg]

Quote from DrPepper:

Hmmm. Maybe someone should have listened to him before the market crashed and gold soared. Maybe they should also be listening about the next market decline to come in 2010 and 2011 due to the worsening residential and commercial real estate market. He has said that there will be a buying opportunity of a lifetime in low-priced quality stocks after the next crash.

By the way, he is currently long a number of stocks and has a number of newsletters that are long in a variety of sectors. So much for the perma-bear theory.

It is easy to criticize someone when you have not actually looked at their recommendations. He backs his statements up with facts and has been remarkably accurate, protecting many people from the market crash and growing their wealth with gold and other investments. His recommendations are not always perfect, but to accuse him of being permanently bearish simply shows that you have not truly investigated his work.

I am not associated with he or his company in any way, but do resp
ect his knowledge.

I actually did subscribe to him in 01-02 and he had very few winners. Additionally he had a premium service, which I tried for a couple of weeks and even his recommended broker told me he slaughtered down to get back to break even often. My friend had a similar experience with him in 03.

 

[MattF]

I recently attended a conference on using a self-directed IRA to buy a variety of different investments. There were people there buying foreclosures and REOs for 10-30% of market value, then fixing them up for a few thousand dollars and selling or renting them.

^^This.

Although it can get worse, but either way the smart ones will buy low enough and be able to make the profit irregardless.

First round was those who overbought, period.

Second round now are those who tried to jump in but still overbought for the most part (price + repairs = too close to value) and got in on the wrong living areas that were coming down still.

Third time's the charm for many others. Although a lot of REO's are going in bulk/tape buying now...where you make your money on many of them and end up with a few lemons that in theory should just be trashed...

But, get your IRA to a self-direct, then you can buy and sell Real Estate through it...still have doubts/concerns, get a good attorney who can create a LLC within it.

 

[maxitronixy]

Quote from vhehn:

lol. i clicked on this thread thinking bylosellhi must be back.

poor guy. u gotta admit he was right on the fundementals.

Thought the market did not move according to fundementals.

 

[TraderZones]

Quote from DrPepper:

I recently attended a conference on using a self-directed IRA to buy a variety of different investments. There were people there buying foreclosures and REOs for 10-30% of market value, then fixing them up for a few thousand dollars and selling or renting them.

I hope you are not taking one of those hotel seminar presentations seriously.

"Look at this mansion I bought for $500!!!"

 

[DrPepper]

Quote from TraderZones:

I hope you are not taking one of those hotel seminar presentations seriously.

"Look at this mansion I bought for $500!!!"

Thanks for your concern. I have been around the block a few times and have seen my share of scams, which makes me a very cautious investor.

We are in an historic time with unprecedented financial perils and opportunities. I see a potential opportunity to buy quality single family homes in good neighborhoods for huge discounts in the next year. I am getting ready to take advantage of that situation if it develops. Most other real assets (i.e commodities) are getting expensive, but homes may become the bargain of a lifetime.