No Housing Recovery – Case Shiller Shows 8th Consecutive Month Of House Price Declines

I think the worm has definately turned, though keep reading reports from the "so called experts" —- US market still falling, the sky is also falling by the way…… however, the deals I was sourcing 6 months ago are no longer around. Lots of compeition, 15 offers on one property alone.

I am stil looking at buying another 6-8 but if those rental yields don't stack up I will just have to pack up.

My understanding is that there is about 2-3 years of foreclosures to come, I can only assume the bank's strategy now is to drip feed to push up prices, however this may also deter foreign investors buying if the cashflow does not stack up. Perhaps we will then see prices fall back again. May be time to just sit and watch.

What do you guys who are on the ground think?????

WI

 1. US investor getting back into the game in a huge way there is trillions of dollars sitting in IRA's doing nothing and companies are marketing to those investors, and educating them that they can buy RE in their IRA's still a huge amount of americans do not realize this even though its been done since 1978… Working with the company Entrust now American IRA company out of Charlotte NC previously out of Ashville NC. Owners and his some is who I flipped the last deal to. Naturally they used their IRA as  cash buyers. There company has $200m they over see, been grooming that relation ship for a bit. I am speaking at their next event in Raleigh NC . The son is who I am working with and he is preaching that so much money sitting their  not being used.

 2. fannie and Freddie are not releasing inventory and are packaging them up to sell to bigger players at 5 million plus blocks. With proviso that the house's must be rented.. Big players that were just flipping these portfolios are now positioning themselves to buy them and hold like all the rest of us… Could be wrong but I am understanding their are quite a bit of rules along with just buying and holding, and this is speculation so far. From what we are told they would have to hold class a homes 5 years. The lowest end of the barrel homes would be 12 month buy and hold time frame. Still don't see this as a feasible option for large players to many variables that could go wrong.

The Buffet comments fuel this as well. 3. Media and speculation, god if I hear one more time that Warren Buffet said buy. I will be sick every one in the USA please stop playing that line. I can count the emails I have received from US investment teams with titled Warren Buffet says buy. Yes I am on almost every list of USA investment teams. I  like to keep up with competition.

 The Foreign effect… Mums and Dads jumping into the SFR game here in the states in a big way… There is still going to be plenty of foreclosures but with this pressure the wholesale prices will rise with competition.. We are already seeing this but for me prices are still the same in NC and SC have not seen the rise or the competition but just from local buyers ( more of them out  their now ) Same area I purchased 6 years ago and appraisals came back at $78k one just came back for $70k .So things must be coming back form that stand point.

 REMEMBER US investors are tickled pink with 7 to 10% returns on RE… 8 to 10 % was always our mark for USA investors.

 The inventory will always be there simply because so many newbies buy rentals with no idea how hard it is and then give up and create new opportunies to recycle the same stock… So true as long as these flipping house shows are around. I don't think alot of people understand how much work goes into real estate.  In the lower end areas I can count the number of homes that have been recycled. Some of my best buys are from people who got into this game , fixed the house to make it so they would live their. Then got over their heads with renters and lack of  payments and no reserves.  They no longer own the asset and we come along and grab it

 I know many investors in Memphis for one that have bought and sold same house 2 to 3 times over a ten year period with each new purchase is some Mum and Pop who walked away from the properties. This is a fact. 504 walnut my partner has purchased and sold this property  3 times in last 8years so 100 % true their

 There is going to be an end to buying next to new homes for 50k all in, this inventory will come back to the investor in another 3 to 5 years and not with as much volume you will have the house that gets trashed and the owner either does not have the funds to fix or just gives up… 3 – 5 years  for inventory because investors are doing most of the buying. Which  sounds right but not sold on prices coming back on the sales part . Less people will qualify for loans unless some thing drastic changes with the banks.  Guess this depends on Romney or Obama who is sitting in the white house..

This is how it has worked for 40 years in the US in the rental heavy mid west and south east.  Jay being I am 39 LOL you are a bit older then me. You would know more then I would know. I been in this almost 20 years so seen some crazy things.

We have put a package together to bid on the fannie portfolios and will accept investors at $250,000.00 minimum for equity partners send me a private e mail if you have any interest… this is where the smoking deals will be made in the next 12 to 18 months. JLH  That is why I am working with the guys from Kuwait we are going to try to put  reit or a  fund together for the similar purpose.I think this is what Kevin was speaking with you about. Have skpe conference at  1pm with the new client