The Real Estate Market Waits for No One

Hi everyone,
I am just getting back on my feet after being sick all weekend and I still have the same problem I had last week. Being sick did not make it go away. In fact today is my cut off day. I will either find a source of funding for our latest property or I will end escrow and work out getting my deposit back. That could be a fight. I still working with several private lenders but the problem is timing. I may not have enough time to get the funds here without paying a penalty (which I do not like to do).

The market - any market is running scared right now. There is so much uncertainty that people would rather do nothing for the time being then lose money. I can't say I blame them if you read the paper or listen to the news. My job is to help them to look beyond that and look at the long term return they will get from a investment that is secured by real estate. Property values are down in California but they will not remain there for long. Too many people like to live in this state and there are too many jobs for them not to. That means housing demand will grow sooner rather than later. It will take time for people to realize that they have a job and can spend money again before we see any recovery. But that means we have an opportunity to increase our investment portfolio. I don't know about you but we are buying houses that cash flow in California. Something that was unheard of only 12 months ago.

Meanwhile we are doing what everyone else is doing in this economy. We are cutting expenses and limiting spending to only what we have to do on the properties. That is the new model. You need to hold properties for a longer period and have them cash flow. I see holding the properties for many years. Though some we will hold forever as a great source of cash flow. Ultimately reaching our goal of 15 to 20 houses that are free and clear with a great positive cash flow.

Let me know what your model is and how it is working.

See Ya,
Mike