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Jack Miller is going to be out of the country for a few weeks so I’ll do my best to answer your questions when I can. Of course, you can jump in too and answer questions. Your comments, suggestions and feedback are always welcome.
On the Alaska cruise this month I had the opportunity to talk to investors from all over the United States. That’s always interesting to me because it shows how trends usually move from the East Coast to the West coast. This time it’s different.
Utah and Oregon don’t seem to be feeling the brunt of the sub-prime meltdown. But of course California is. I wonder why?
What about your area?
How have things changed?
What’s working? What’s not working?
What changes are you making in your real estate business (if any)?
From Reno, NV.
The credit crunch is really starting to have an effect on our sales.
Many lenders are now looking for fico scores of 725+!
This is causing long delays in closing sales as loan brokers are having to shop loans in order to sell them to investors and get sales closed.
Mobile homes are being effected more than SFH’s.
It appears that we are going to be dealing with FHA and VA loans again.
About 100 properties a week are still closing, so the market is still moving but at a much slower pace.
The houses that sell are priced at the bottom end of the comps and are in nicer condition than the competitions.In order to be able to sell we must buy at a much lower price level than a year ago.
There are lots of sellers now, so if we can’t “steal” it we don’t buy it!
For the time being we are sticking to the lower priced properties. Much less risk. If the time comes that we can’t sell them they will rent at a positive cash flow.
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