As the markets are doing their usual mood swings, and everyone starts fretting and wringing their hands, they need to consider this: the markets are always bouncung around.

Warren Buffett makes his money on the panic of other people, buying up businesses, etcc. based on the panic of the general population. He makes his money on the spread between what he buys for, and what he sells at. His investments are carefully calculated, such that expenditures are made to buy a company up at a price that selling it later will create a calculated profit.

Our real estate and mortgage markets are currently in a buy phase. with depressed pricing in every area of the country, if you can, it is smart to buy with the low prices, and then hold these investments while the market prepares for another climb up the profitability ladder.

here is where it gets interesting. You will need to have creditworthiness, or cash to do so. if you aren't there, don't fret. Instead, do something to affect your ability to participate in this area. By getting in at historic low prices, and having the ability to "hold" the proerpty, by leasing it out, with an option to have the tenants purchase the proerpty, you gain two income streams: the rerntal income, and the pruchase income.

what we aorry about is that unemployment may go up. If it does there are poeple who will need a home to live in. What about displaced homeowners, who got sucked into the bad mortgage pool? they'll need a roof over their heads, too.

The news is neither good nor bad. it is what it is, no matter how the press tries to taint the truth. Panci is not the solution to the problem. the answer is in a clear and reasonable solution to the problem, which is carefully loking at the profit to be made on the real estate "Srpead" and capitalizing on this. the market may be moving slower than a few years back, but it is still moving.

As a realtor, I do have to work a bit more to put deals together. Still, it is possible to do good deals, and make things happen. Putting my head in the sand producess an out-of-work broker, and that isn't in my blood. i just have to adapt my work-style to what is currently happening, and adjust the techniqwues i use to complete transactions.

That is what makes it fun, the challenges overcome are the real mark of success, anyway. It makes the easier times even better.

 

2 Comments on Markets See Saw / People Gew Gaw

People's memories are very short.  We have been through these cycles before and will do so again.

04/30/2008 11:29 AM by Adam Brett - Fullerton, California Realtor (RE/MAX NOC)


As Freddie Mercury used to belt it out..."Iwant to ride my bicycle..."

We panic, and those with forethought play that panic to their profit. Despots create panic throgh fear, and ultimately, when that fear can no longer be maintained, they are overthrown in violent coups, only to begin that cycle again.

It is also necessary to view our cars and homes as investmetns, and not purchases. then, we will seek to maximize the benefit of each, and will not make foolish investments in either.

04/30/2008 11:55 AM by Lou Farris (Global Realty Marketing)


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Real Estate Agent: Lou Farris (Global Realty Marketing)
Lou Farris
Highlands Ranch, CO
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