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Consensus on this site may seem fairly negative but the residential RE investor world is not. I follow several RE investor blogs and groups that actually meet in person on a regular basis…they’re very much in a “buy” mode. I attended a meeting last week that was standing room only for about 300 people. I was on a conference call about 3 weeks ago that had 150 people on it. The message and the thought was very much about scooping up the $150K to $250K homes as rental units. And from what I could gather, with relatively low down payment loans. The numbers dont leave a lot of room for staying cash flow positive if they have to lower rents.

[peterb]

Consensus on this site may seem fairly negative but the residential RE investor world is not. I follow several RE investor blogs and groups that actually meet in person on a regular basis…they’re very much in a “buy” mode. I attended a meeting last week that was standing room only for about 300 people. I was on a conference call about 3 weeks ago that had 150 people on it. The message and the thought was very much about scooping up the $150K to $250K homes as rental units. And from what I could gather, with relatively low down payment loans. The numbers dont leave a lot of room for staying cash flow positive if they have to lower rents.

[peterb]

Consensus on this site may seem fairly negative but the residential RE investor world is not. I follow several RE investor blogs and groups that actually meet in person on a regular basis…they’re very much in a “buy” mode. I attended a meeting last week that was standing room only for about 300 people. I was on a conference call about 3 weeks ago that had 150 people on it. The message and the thought was very much about scooping up the $150K to $250K homes as rental units. And from what I could gather, with relatively low down payment loans. The numbers dont leave a lot of room for staying cash flow positive if they have to lower rents.

[peterb]

Consensus on this site may seem fairly negative but the residential RE investor world is not. I follow several RE investor blogs and groups that actually meet in person on a regular basis…they’re very much in a “buy” mode. I attended a meeting last week that was standing room only for about 300 people. I was on a conference call about 3 weeks ago that had 150 people on it. The message and the thought was very much about scooping up the $150K to $250K homes as rental units. And from what I could gather, with relatively low down payment loans. The numbers dont leave a lot of room for staying cash flow positive if they have to lower rents.

[peterb]

Rich said that SD county has 30% of its mortgages under water. This has got to be a record. Fasten your seatbelts. Hold your cash with all your might.

[peterb]

Rich said that SD county has 30% of its mortgages under water. This has got to be a record. Fasten your seatbelts. Hold your cash with all your might.

[peterb]

Rich said that SD county has 30% of its mortgages under water. This has got to be a record. Fasten your seatbelts. Hold your cash with all your might.

[peterb]

Rich said that SD county has 30% of its mortgages under water. This has got to be a record. Fasten your seatbelts. Hold your cash with all your might.

[peterb]

Rich said that SD county has 30% of its mortgages under water. This has got to be a record. Fasten your seatbelts. Hold your cash with all your might.

[peterb]

It takes income to buy homes. This is the real wild card. At over 10% unemployment with no relief in sight, this is headed towards the worst contraction since the Great Depresssion. The next year or so could be devistating to the RE market if we held at this level. If it gets worse…..

[peterb]

It takes income to buy homes. This is the real wild card. At over 10% unemployment with no relief in sight, this is headed towards the worst contraction since the Great Depresssion. The next year or so could be devistating to the RE market if we held at this level. If it gets worse…..

[peterb]

It takes income to buy homes. This is the real wild card. At over 10% unemployment with no relief in sight, this is headed towards the worst contraction since the Great Depresssion. The next year or so could be devistating to the RE market if we held at this level. If it gets worse…..

[peterb]

It takes income to buy homes. This is the real wild card. At over 10% unemployment with no relief in sight, this is headed towards the worst contraction since the Great Depresssion. The next year or so could be devistating to the RE market if we held at this level. If it gets worse…..

[peterb]

It takes income to buy homes. This is the real wild card. At over 10% unemployment with no relief in sight, this is headed towards the worst contraction since the Great Depresssion. The next year or so could be devistating to the RE market if we held at this level. If it gets worse…..

[peterb]

I remember reading in 2004 that about 10% to 12% of SD purchases were not owner occupied. And we know how many more probably lied and said they were going to occupy in order to get a better loan rate/deal. So it has heavy speculation already.
I track several investor groups and they are strongly advocating purchases in the under $300K range…every one of them! High levels of speculation tend to create high levels of volitility for many reasons. I think we’re going to see a lot of crazy stuff in this market in the next 8 months.
But I really think that tracking inventory is an indicator is flawed in this market… it’s too full of dislocations.

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