Whenever, I turn on the television, I see it again.
"Real Estate is going down!"
"Interest rates are going up!"
"Sell! Sell! Sell!"
In fact, there are many homes today that are up for sale! The question is: Is it going to be sold fast enough before
they lose it due to foreclosure.
Just a few years ago, we lived in an over-hyped, over-priced, and over-mortgaged real estate market where some
regions around the nation saw 100%, 200% and even 400% increases just within a few years. People everywhere
were getting rich left and right. The mail-man, who use to deliver your mail or the garbage collector, who use to
pick up your trash, were all in the real estate investing business! And also it seems like everyone, even my 16
year-old sister got a real estate mortgage refinance application.
"Apply now!"
"You are PRE-APPROVED for a 1% mortgage!"
Wow! It is quite amazing to see all this in action. To see all of the late night infomercials hyping their products
trying to entice you, the insomniac viewer, to buy their products! The question is: What do you know about these
so-called real estate authors? Do they really make their money on real estate or by selling their products? Why the
heck, do they always have an often energized, well-dressed, beautiful woman (or man) hawking on all of the great
benefits of the real estate author's products? Are they that excited about their stuff that they are literally jumping up
and down, screaming at the television for you to BUY! BUY! BUY!???
One of my favorite investor and TV personalities of all-time is James Cramer. He has a knack for television, and I
really enjoy watching his show. He has a saying, "Bulls, Bears Make Money. Pigs Get Slaughtered!" There are
some truths to this statement. It can be applied directly to those real estate investor newbie, who got into the
market too late. Now they are getting slaughtered (like pigs) from the high mortgage payments because they took
out an ARM loan and now they are seeing their mortgage payments going up and up every month or so. They are
trying to sale, but no takers. Hence, they have to lower their prices. Depreciate the market! Lower it every more!
If they can't sell, they'll just let the lender take it. This is why you are seeing so many foreclosures these days.
It is a broken system. Some lenders were too lenient in lending and now are seeing the repercussions. As of this
writing, hundreds of mortgage banks had already declared bankruptcy or have been bought out. Hundreds more
will follow suit in the years to come. I believe that we are living in the beginning of a real estate mess that will have
ill effects that can last up to 10 years!
So make sure, you know what you are doing in the field of real estate. Don't be a buffoon and aimlessly start
buying real estate because you BELIEVE that prices will continue to go up. Be careful and invest wisely! Learn
how to invest in abandoned, code violated and condemned properties, today. I believe that they are much safer
than just buying and waiting for the prices to go up and also great for the real estate newbie, who wants to start to
invest but have little or no money down!
Charlie Tha
