WHY this is the best time for real estate investors!!!

So has anyone actually heard any GOOD news on the radio on real estate lately? Didn’t think so. Good news doesn’t sell and that’s why you won’t find it. In fact, let me add to the doom and gloom for a minute, but then tell you why this gets me very excited to be investing in the Southern California market!

The California Association of Realtors (CAR) has stated they expect over 280,000 Notice of Defaults (NOD’s) to be issued in 2008 in California. This means 280,000 people will be behind on their loan payments. Now what if only half of these properties go through foreclosure and get taken back by the bank? What is the bank going to do with 140,000 properties? What if the 4 major auction companies could auction even 200 each per weekend, for every weekend of the year (which would be quite a feat considering the planning that goes into them!) That’s 200 properties x 4 auction companies x 52 weeks = 41,600 properties to be auctioned. But wait – that’s nowhere close to the number of properties the banks need to unload!

Remember, the banks are not in the business of owning property. In fact, for every dollar of bad loans on their books, they have to hold approx. $7 of money. The way the banks can make money is by either collecting more money from their customers (and who has extra money laying around to put into a bank account, just to earn a ridiculously low interest rate these days?!?) OR they can unload some bad debt. The latter is the easier option for them.

So what you will see happen in the very near future is CAPITULATION – which means the banks will surrender to their own stupidity and realize that their ridiculous lending habits in years gone by has now put them in a very uncomfortable position. It will be at this moment that ABSOLUTE auctions will occur – which means that the banks HAVE to take whatever price is offered by the buyer at an auction – no matter how low!

The point is, there is going to be SO MUCH inventory that investors are going to have a field day for the next several years. Get educated NOW so you know how to take advantage of this market. Don’t miss the boat on this!

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