While cruising through the Blog Posts here on Active Rain I came across this Intriguing_Story from Activerainer Karen Monsour. Her post and question is a good one. But as I began writing the comment it soon got out of hand and control, length wise. Hence this post follows.
Karen's Boyfriend gave her a chilling forecast and oppinion of the foreclosure market in Ft. Lauderdale and Broward County Florida. This according to Karen's story and in her Boyfriend's oppinion and experience as a Contractor and based on his conversations with several other investors working in the area.
So Karen's question " What do you think will happen to the properties the investors are snatching up???" is a timely one and I would hazard to guess is on many of our minds.
Well first and foremost I will unequivocally tell you that Investors do not have any Magic Bullets nor are they immune to the woes of this current down cycle in the market. That does not mean that they are all doomed to failure and foreclosure as suggested by Karen's Boyfriend in her post.
The truth is that yes some will fail, and many others will prosper. The cause and effect that will determine which is which in this cycle is the same cause and effects that governed the current group of individuals suffering today. That is one of Greed.
Yes that's right GREED. Asked then or now, how many of us would consider banking on the real estate market continuing to escalate for ever and ever? It is not logical nor is it possible. The truth is we have all heard about and lived through real estate cycles. We all know that it has a tendency to go up and down and in some areas of the country the swings can be quite violent.
Yet many of us bit off more than we could chew when purchasing homes during the last few years as the market was in a steep climb up the ladder. Now I am not saying that as consumers we bear totally all the blame in this but what I am saying is that the fiscal responsibility for your financial well being starts at home.
So what about those current investors working within Karen's area or an area near you? Some will choose poorly yet others will prosper. For those who are working in an area of still depreciating prices and large inventories, this is an excellent time to pick up on some very good buys. Because a cycle is just that. What goes down will not continue to go down for ever. And in the future those picking up and holding on to great buys today will all be hailed as genius's in the next up cycle.
Good luck and happy Investing.
Presented by broker Herb Hamilton of RE/MAX Preferred Inc. Realtors :
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