I went to a recent meeting with the North San Diego County Real Estate Investors investment club. To have a look or possibly join go to www.nsdrei.org . At the club that night was a really smart guy named Bruce Norris with the Norris Group. To have a look at their site go to www.thenorrisgroup.com .
He shed a piece of insight that I was aware of, but I had never heard it conveyed with quite such clarity. He mentioned how the current market does have some incredible opportunities. He said his club is doing well. The margins per deal are a bit lower than they sometimes are, but they are creating win win opportunities for their investors and the homebuyers.
The example he mentioned was:
They are getting properties on the court house steps for good prices...remodeling them nicely...then selling for a profit to a qualified buyer. While he did propose some really unique and plausible solutions, the problem that he does not have the remedy for is when Joe buyer meets his neighbor across the street and invites him over for a bar-b-que. The Norris group are professional investors and they know how to make a house look good for sale. When the neighbor finds out what the purchase price was and sees with their own eyes how nice the home is therein lies the issue.
This is when the neighbor that bought in 2005 realizes that they paid a whole lot more for their property and it's actually not as nice as this one.
This is when they start thinking about the pros and cons of making their mortgage payment this month.
This is the issue we are all going to be dealing with for a while.
I do not have the answer myself and I'm not sure if anyone does.
I do think that a home should be thought of as a home and not always as an investment. It is a place to raise your family, but I can understand both sides of this.
How long will it take to work through this inventory that people paid too much for?
Any ideas?
Your comments and insight are greatly appreciated.
Make it a great day,
Josh
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