[quote=briansd1][quote=flu]Never underestimate the financial state of your peers. Not everyone is financially “ruined” as the media would like to portray, though it’s much more convenient to think so.
(Still in search of positive cash flow properties)
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Your peers will generally overstate their wherewithal. Just like your peers overstate how great their children are.
Now, I’m sure that there are plenty of rich people. Those people are not buying stucco boxes in suburbia.
With real estate, as with stock, it’s not the people who have the staying power to hold-on that determines the market price of all houses. The marginal sale of the next house determines the price of all similar houses.
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While that maybe true for most area’s I would point out the exception where prices are already so low you would need to have a gun pointed at the owners head before they would sell for what the foreclosure down the street sold for, then it’s just the next foreclosure that you would be comparing against (and at some point the foreclosure ride will be over).
