[quote=pri_dk]Just under a year ago, I started seriously looking into purchasing a few small investment properties. I was working with a couple of friends and we were pooling our cash so that we could make some all cash offers. We setup an LLC and all the contracts that are prudent in this kind of arrangement.
But we haven’t purchased anything. There were a couple of opportunities that seemed like OK deals, but we are reluctant to move in this environment. Something doesn’t add up. We understand that, even in the strongest of buyers markets, deals aren’t just going to fall on our lap — but these bidding wars make no sense. I think it is possible to find opportunities, but we keep running the numbers and the risk/reward analysis just isn’t where we want it to be.
It’s frustrating when you have time/energy/capital to work with and ultimately decide to do nothing. But sometimes this is the optimal course of action. So we are waiting. I think a year from now things will be different.
This is my perspective as an investor. If you are looking to buy a residence, however, there are different factors to consider.
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Pri_dk: I think you’re absolutely right. I’ve been saying for a bit now that it seems like there are two different realities in place.
I read the news and hear all of these positive prognostications from the MSM and the pundits, but it doesn’t square at all with what I’m hearing from former colleagues in banking, finance and insurance. In fact, it’s the complete opposite.
I personally think all of the gubment meddling has served to do nothing than prevent the other shoe from dropping, at least for a little while. Maybe that’s what Obama and Company mean by “stabilizing” things.
I think this is a classic bear trap and we’re just about ready to hit the second leg down.
