REO Properties...Where is the Bottom?

Time and time again we have focused InvestSmarter around discussing what Real Estate is supposed to be about!!! And now people are beginning to listen. If it doesn't cover the note, don't buy it!!! The point of real estate is building a positive cash flow and yes it can be done!! Well some in the REO market are getting back into the swing of things. Only problem is now many people can't afford to even rent these homes. We recently discussed a property on www.InvestSmarter.com and even at a purchase price, the numbers don't make sense. We have to get way down in the dirt and get these things cashflowing. The article below is talking about the bottom...again what is the bottom? Everyone's bottom is different right?

Right! The banks have a bottomless bottom! Just depends on what they want to loose on the deal. That being said, we can make the math work on the deal, it's just a matter of getting to that point. We discuss this at www.Panama-City-Beach-Florida-Real-Estate.com and the information and potential market is incredible!

Bargain Hunters Have Field Day With REOs Banks that are flooded with foreclosures are dumping them onto the market and bargain hunters are having a field day, and some observers are saying prices won’t go any lower.Mark Partipilo, a Las Vegas real estate investor, isn’t alone in concluding: "In this market, there are so many REOs that the banks are getting their clocks cleaned. This might not be the bottom, but waiting six months might be too late."Banks might be reluctant to sell cheap, but most are agreeing. "Banks that are not in Disneyland recognize that these sales are the reality today," says Denny Grimes, a practitioner and owner of Danny Grimes Co. in Ft. Myers, Florida."Markets where a large share of homes are heavily discounted because of REO sales, they may be seeing a bottom," says Cynthia Kroll, an economist and real estate market scholar at the University of California, Berkeley.Source: Reuters News, Patrick Rucker (07/02/2008)

So we must look at every deal as a different one. The condo market is no different. This isn't a get rich quick deal folks. One of the major factors that ruined the Real Estate market was flipping property. Everyone passed on their "profit" to the next buyer and rolled their "profit" into the next piece of property....artificially inflating the market. The condos didn't help much. Put 10k down and make 400k! Sounds to good to be true...it wasn't at first, but if you got left holding the hot potato....guess what!

Look today at www.Panama-City-Beach-Florida-Condominiums.com and you can see what is available. These are now getting a little bit better. Problem is the management!!! Yeap, you guessed it! The fees will kill you. That is why we have started our own rental arrangement. For more information contact us directly at the site above for more information.