Whether things are looking up or looking down, everybody seems to be focusing on the past or future instead of the present; despite the fact that everything that you experience happens in the present. Most of the people who are in trouble today are in debt. Those who have no debt don't seem to be affected very much. Why are so many people in debt? Because they were convinced when they borrowed money that they would be able to repay it by either refinancing or reselling their homes at some point in the future. When they found out that this wasn't going to happen, they spent most of their energy lamenting the actions they had taken in the past rather than to start actively looking for ways to get out of financial trouble.

Continue reading “Look Towards Taking Advantage of Today’s Opportunities”

Amidst all the hand-wringing about people losing their homes to foreclosure, or investors seeing their equities wiped out and their debt beginning to exceed the value of their houses, an important fact seems to be overlooked: In probability, homeowners were able to buy their homes with very low down payments. Their monthly payments were probably less than the rents for comparable properties once all the tax savings were factored into the mix. And they totally controlled the quality of life in houses where they weren't answerable to a landlord. So what is looked on by the media as a personal tragedy boils down to having enjoyed a lifestyle that they couldn't afford for a time, and now they must return to Kansas and confront real life.

Continue reading “Getting Back on the Investment Horse”

 Today, more than ever before, cash is king. In many States, only those with certified funds for the full offered price in hand can even bid at foreclosure sales. Very few REO purchases can be financed by non-owner occupants. To have much chance of success, Short Sale offers have to be accompanied by written loan approval by another lender, or by proof of cash funds. Where is this cash going to come from?

Continue reading “Cash Is King”

 If you read "The Millionaire Next Door", you see that, when measured solely in terms of its investment value, the house you live in is a liability. If it were valued as a true investment, you'd see that you are getting virtually no return for paying interest, principle, taxes, insurance, and maintenance every month. If you had a rental property that consumed this much cash, wouldn't you sell it? Then why not sell your house?

Continue reading “How Free and Clear Homes Can Make You Broke”

What spawned the housing bubble?
Who pays less for housing: investors or regular homebuyers?
Does emotion influence sales price?
How do short sales affect the market?

Continue reading “Bubbles, Buying and Bank Owned Sales”