Let Me Clear Something Up…We Remain Bullish On Real Estate!
January 9, 2008
We have a lot of fun on the air because of the absurdity of real estate professionals. Yes, sometimes we can be kind of harsh, but hey, it is a joke sometimes. Using professional and real estate in the same sentence, as I just did, is an oxymoron. A true professional would be able to provide sincere credible advice on their product and most real estate agents simply can not.
If they could they would be able to combat the media and stop the decline in the housing sector. But rhetoric and baseless feel good commentary just does not stand-up in the face of cold hard economic fact.
While doom and gloom regarding the real estate industry is all around us. We remain bullish in our approach. Let me temper that statement by adding, that in order to remain bullish one must be absolutely sure of what they are doing. One must be absolutely as informed as possible. One must buy as low as possible. This is what the real estate professional should be telling their clients.
We are not looking at buying anything retail. Any purchase or advisory to purchase that we provide our clients is with the caveat that the purchase must be done wisely and at a MINIMUM of 30-35% below CURRENT market value.
We believe that by buying at 30-35% or more below CURRENT market value that we can instill increased investor confidence, and motivate our “herd” of investors to buy in anticipation of further profit.
Are there deals out there that can be purchased at these prices? Absolutely. And with the NAR basically writing off 2008 we feel that you may see even greater discounts. Inventory is at an extremely high level, and prices are dropping. Bulls know how to profit from such a economic downturn and fortunes have been made by understanding how to manipulate the market to your advantage.
Buy at retail prices? Not on your life! Like Jim Cramer said recently in an interview ..”Don’t you dare buy right now”. Buying at retail is financial suicide and any real estate agent asking you to do so should have their license revoked for fiscal irresponsibility.
30-35% or more BELOW current market value is where we are looking and where the money will be made.
[…] We remain steadfast in our assertion that real estate is a great business and yes indeed it is a great time to buy. We also remain bullish in our outlook on real estate as an investment. We even believe that with interest rates being so low, that buyer opportunities have never been better. […]