I was talking with one of my mortgage brokers today... We are planning on doing a few podcasts, and he is a pretty cool guy, so we like to jabber every once in a while anyway. But there were a couple of things that Ken said to me as I was wandering around the store looking for birthday presents for a 4 year old and a 2 year old.
Lane, I have money here and I can't find anyone to take it...
I'm watching the news, and I'm reading about the real estate markets and the "credit crisis"... and from that I get the impression that 
there simply isn't any money available for buyers... and that isn't the case. There are sources of money... at good rates... for qualified buyers. If you are looking to buy a house, it isn't impossible, despite what you might hear on the news.
Danger = Opportunity
There is a unique opportunity right now. Listening to Clark Howard today, I heard it. Right now people are going to get "deals of a lifetime." Not every property out there... but NOW is when those super deals will be had.
When everyone is selling, buy. Even Warren Buffett is saying it. When the market is in the most turmoil, the best deals will be had. I'm not going to say that the market is at the bottom... It may be, it may not be. But the point is that when we KNOW that the market is on the way up, everyone knows it is on the way up. Right now, the thing to do is tolook at deals and see if they work.
Example...
From one of my sources, this is not in the MLS...
_______ has an office condo in Roswell that is tenant occupied on a 5 year escalating lease with a tenant who has paid on time for about 4 or 5 years. She is in the middle of her second year in this 5 year lease. Cap rate as it stands is 8.5% with a net positive cash flow of $4800 before income taxes. $113k cash or $40k cash and assume the existing LLC and 7.5% 20 year loan. Current rent is $1250 and goes up every year. He does not want to list it. He doesn't want to entertain any offers except "I'll take it". Actual value at 8.5 cap is around $137k.
Cash flow positive property... Is the market at the bottom? I don't know, but this property cash flows NOW! The owner needs cash for another deal...
Bottom line...
There are some great deals on the market right now. Maybe they will go down another 5%... or maybe you are seeing the bottom of the market right now. In the spring, we might be looking back as the 4th Quarter as THE time to buy... or maybe the 1st Quarter of 2009. But this deal might not be available then. And there are a lot of other properties that may not be available. And there might be a lot more people that have figured out that there are deals to be had.
from LaneBailey.com
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