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Foiled Again in Real Estate! What to Do...By
Wednesday, March 7, 2012
"You're not going to believe this one," my brother told me over the weekend.
He'd just gotten a bizarre call from a realtor...
If it weren't my own brother telling it, I wouldn't have believed it. The story seems too bizarre to be true.
Remember, he made a similar "as-is" CASH offer, ABOVE the asking price, on Grandma's house. He was rejected there, too.
What the heck is going on out there?
What's happening out there is exactly what happens during a "V" bottom after an investment bubble has burst...
This is it... This is the "capitulation" stage. Confusion reigns. And this is where you get GREAT prices...
At the banks, the right hand doesn't know what the left hand is doing... One part of the bank is telling its employees to get rid of real estate. And another department is trying to work things out with sellers. You don't know which part of the bank you'll get.
My brother seems to get the wrong department each time. But other friends have really scored...
Just yesterday, I heard from Will, a friend of a friend...
Will took my recent DailyWealth advice and just bought himself a foreclosed home that's "in good shape" and in a neighborhood I personally know. It is a desirable neighborhood. And get this... Will said he managed to get a 30-year mortgage at a rate of 3.75%.
Let's size this up...
Adding all that up, you could hardly do better than simply following Will's lead, if you can swing it.
Just remember, for every deal that falls into place (like Will's), there are multiple deals (like my brother's) that don't.
If the deal doesn't work out, don't get discouraged. At this "V" bottom moment in real estate, there's no rhyme or reason why one deal will happen and one won't.
Don't blame anyone or get down. Just move on to the next attempt.
Remember, if you're doing it like Will – if you're buying for a place to live – only one deal has to go through. Then you're in.
Will did it. He crossed the finish line. Now it's your turn.
Get out there and FIND YOUR DEAL. As I've explained in previous essays, this is it. This is the best moment to buy a single-family home in the history of the U.S... and probably the best there'll ever be.
So stop procrastinating! Get out there and do it! Best of luck...
Good investing,
Steve
Further Reading:
With housing prices so depressed, Steve says you can buy a home and make a 175% tax-free gain simply if things return to 'normal.' "If I'm wrong, and prices go nowhere, you got to live rent-free for a couple years," he writes. "As far as risk versus reward, I don't know how you can beat that today." Read more here: The Greatest Opportunity Ever Is Just About to Pass You By.
The situation in real estate is so favorable, Steve is out there personally pursuing some of the greatest values he's ever seen. And he's not the only one. Self-made multi-millionaire Mark Ford is collecting $1,250 checks from the government every month in real estate, and super-investor Warren Buffett called his house one of the best investments he's ever made.
Market NotesANOTHER IMPORTANT STOCK YOU'VE NEVER HEARD OF Today's chart is another example of how things are much "less bad" than pessimists would have you believe.
Over the past four months, we've run many charts that display how the U.S. economy – while not "great" – is getting "less bad." For example, we've noted price strength in the important U.S. financial stock fund (XLF), Home Depot, and transportation stocks. We've also noted the important uptrend in Wyndham Worldwide, the world's largest hotel operator.
Because hotel occupancy reflects travel and business activity, we've called Wyndham "one of the most important stocks you've never heard about." Place Taubman Centers (TCO) in the same file...
Taubman Centers is one of America's largest shopping mall companies. It counts Macy's, Apple, and Nordstrom among its tenants. As you can see from our chart below, folks are getting to the mall and spending money. Taubman shares have climbed from $40 to $70 in the past two years... and just struck a new 52-week high. No one knows exactly how long it will last, but the trend in shopping is up... and it is strong.
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