Sitting On The Fence?

Sitting On The Fence?

Let there be no doubt;  It's a great time for investors with:



However, for the fix and flip crowd or the faint of heart I would still hold tightly to the reins, play your cards close to the vest and keep your hard earned cash where you can feel it. At least in the San Diego market. 

Nothing wrong with fence sitting a bit longer. In fact I'm sitting on the fence, unless the deal is just too good to pass up. Until after I see what our next president and Congress is all about and what kind of leadership we'll be getting from them I'm definitely a dedicated fence sitter.

I've been a registered Independent since Reagan left office. I'm not swayed by ideology nearly as much as I am by just plain common sense. Right now I don't see much of that coming from either side of the isle.

I'm not a doom and gloomer. I'm just realistic. With all the volatility, uncertainty and disarray from our so called leadership I can see RE values declining even further in the San Diego market while unemployment and foreclosure activity continue on the rise. Already this year RE values in SD for the most part have declined about 1% per month unless you're privileged and fortunate enough to live along the coast where values have actually seen a modest increase.

I just received a rather interesting phone call from a hard money lender wanting to know if we'd be interested in buying a foreclosure he had to take away from an investor because it had aged 6 months and the HML needed to revisit his capital. Says something about the fix and flip crowd doesn't it?

That whole FIX & FLIP thing came in roaring like a lion and is now limping like a wounded lamb. Too many newbie investors muddying up the water, driving up prices with multiple bids all while values and a valid and abundant buyer pool was in decline.

On the other hand if you're an investor looking to build a strong rental/lease or lease option portfolio keep pulling the proverbial trigger. Now is a great time and there is an increasing renters pool building concurrent to a declining buyers pool. Common sense has to tell you that displaced folks (short sale and foreclosure victims) aren't the least bit interested in buying right now and moreover will have to sit on the sidelines while rebuilding their credit. 

I've been trying to sell one of my properties for over a year to no avail. But the phone hasn't stopped ringing since I decided to rent it. 

That's my opinion. What's yours?