Tuesday, April 29, 2008

It's a buyers market out there!

Now I'm no expert in money management, but I have been in the mortgage since 1996. Over the years, I have been a Realtor, a Mortgage Broker, a real estate investor, and even an appraiser. You see I believe that in order to be good at processing you need to understand all the challenges that your clients will have. The best way to understand them is to be in the trenches and learn.

But I digress - the point is that in markets like this it's tough to figure out what you should do with your money. With home starts faltering, and foreclosures at a near all time high, what's the best place to put your money? Should we all hang in there and keep throwing our money at the stock market on the hopes that it will rebound soon? Or should we liquidate our stocks and go out there and buy some real estate to hold until the market rebounds?

Cash flow seems to be the big problem these days with everyone needing a lot of it to float what they have. If you own your own home you need cash every month to keep it. If your a real estate investor you need cash and rents every month to keep that as well. If you have a method of cash flow then real estate is starting to seem like a steal. I predict that a lot of second homes and vacation property will be snapped up in the next 24 months by retired couples who are looking for a real deal for their home in the sun. They have the cash in the bank, and have just been waiting for a deal like this from the builders and foreclosure market. My suggestion, start marketing to them.

Pete Temple
National Operations Manager


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