Comments on: What Do You Think? Real Estate Investors — Speak Up http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/ Real Estate Investing through Purposeful Planning Sat, 20 Mar 2010 02:17:33 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Patrick Hake http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2701 Patrick Hake Thu, 13 Sep 2007 18:41:27 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2701 A discussion about Ben Bernake's policies would not be complete, if we did not includ this Youtube video: http://www.youtube.com/watch?v=3u2qRXb4xCU An oldie but goodie :) A discussion about Ben Bernake’s policies would not be complete, if we did not includ this Youtube video: http://www.youtube.com/watch?v=3u2qRXb4xCU

An oldie but goodie :)

]]> By: Jeff Brown http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2699 Jeff Brown Thu, 13 Sep 2007 00:34:59 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2699 Sandy - That scenario is as plausible as any. The job news, (not good) and the high volume whining on Wall Street, especially re: commercial paper, might be the impetus for a 4.25-4.5 by Christmas. We'll just have to wait and see. Sandy – That scenario is as plausible as any. The job news, (not good) and the high volume whining on Wall Street, especially re: commercial paper, might be the impetus for a 4.25-4.5 by Christmas.

We’ll just have to wait and see.

]]> By: Sandy http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2698 Sandy Wed, 12 Sep 2007 22:57:05 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2698 Good point on relaxation of standards. Sometime around year end I predict that lenders will remember how they make their money...which is by loaning money, not by NOT loaning money. Some predictions are saying he'll drop twice this year, to 5 in September and maybe to 4.75 in December at the next quarterly meeting. I'm no economist but that sounds reasonable. I'll go 5 definitely...if the economy doesn't respond, then he'll go further. I think what market watchers are looking for is a sign that the Fed will do what's necessary to keep us out of recession. Inflation is a lesser issue right at the moment. Sez me. Good point on relaxation of standards. Sometime around year end I predict that lenders will remember how they make their money…which is by loaning money, not by NOT loaning money.

Some predictions are saying he’ll drop twice this year, to 5 in September and maybe to 4.75 in December at the next quarterly meeting. I’m no economist but that sounds reasonable. I’ll go 5 definitely…if the economy doesn’t respond, then he’ll go further.

I think what market watchers are looking for is a sign that the Fed will do what’s necessary to keep us out of recession. Inflation is a lesser issue right at the moment. Sez me.

]]> By: Jeff Brown http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2692 Jeff Brown Tue, 11 Sep 2007 14:41:06 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2692 Whatever the name of the hymn is Doug, you and I know all the verses. It's the opposite of Kumbuya. :) Whatever the name of the hymn is Doug, you and I know all the verses. It’s the opposite of Kumbuya. :)

]]> By: Doug Quance http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2691 Doug Quance Tue, 11 Sep 2007 13:55:50 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2691 I don't want a lot of governmental intervention, Jeff. The taxpayer should not have to bail out investors nor homeowners that bought homes that they could not afford. As will all things market-related: the market will correct this. I don’t want a lot of governmental intervention, Jeff.

The taxpayer should not have to bail out investors nor homeowners that bought homes that they could not afford.

As will all things market-related: the market will correct this.

]]> By: Jeff Brown http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2689 Jeff Brown Tue, 11 Sep 2007 05:46:53 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2689 Sandy - Options ARM's, in my humble opinion, aren't going anywhere. As with many things in life, it wasn't sub-prime that caused the problem, it was the rampant, and unconscionable abuse of sub-prime lending. Cars are fine too, until the driver is drunk. That said, the underwriting changes will, for the most part, eliminate those underwriting abuses. There will be no more middle school teachers qualifying for loans based upon their claim of a $155K salary. :) Before next summer, (maybe way before) you'll see the relaxation of the current fear-based underwriting standards. I think we'll revert to what anyone reasonable person would label as prudent and documented underwriting practices. Sandy, what do you think the rate will be after Bernanke stops talking? Sandy – Options ARM’s, in my humble opinion, aren’t going anywhere.

As with many things in life, it wasn’t sub-prime that caused the problem, it was the rampant, and unconscionable abuse of sub-prime lending.

Cars are fine too, until the driver is drunk.

That said, the underwriting changes will, for the most part, eliminate those underwriting abuses. There will be no more middle school teachers qualifying for loans based upon their claim of a $155K salary. :)

Before next summer, (maybe way before) you’ll see the relaxation of the current fear-based underwriting standards. I think we’ll revert to what anyone reasonable person would label as prudent and documented underwriting practices.

Sandy, what do you think the rate will be after Bernanke stops talking?

]]> By: Sandy http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2688 Sandy Tue, 11 Sep 2007 04:55:59 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2688 Bawldie--if I was Bernanke, I think I'd continue to be very careful walking that tightrope. I expect he will lower rates in September. I would. I don't think it will turn things around though. I have a lender friend who said something that made a lot of sense. The market got overheated for three reasons and those three reasons need to each be dealt with before things can normalize--sub-prime, jumbo loans and option/arms. Sub-prime and jumbo are being worked through now. Option arms will be next. Only then can the market stabilize. Not sure Bernanke dropping rates will make much difference since the problem isn't rates, it's too many people being lent too much money who have no business having that money and who, apparently, can't pay it back. Bawldie–if I was Bernanke, I think I’d continue to be very careful walking that tightrope.

I expect he will lower rates in September. I would. I don’t think it will turn things around though. I have a lender friend who said something that made a lot of sense. The market got overheated for three reasons and those three reasons need to each be dealt with before things can normalize–sub-prime, jumbo loans and option/arms. Sub-prime and jumbo are being worked through now. Option arms will be next. Only then can the market stabilize.

Not sure Bernanke dropping rates will make much difference since the problem isn’t rates, it’s too many people being lent too much money who have no business having that money and who, apparently, can’t pay it back.

]]> By: BawldGuy http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2680 BawldGuy Sun, 09 Sep 2007 18:05:24 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2680 Cher - The Fed walks a real economic tight rope don't they? I think we'd all agree with you about softening the cycles. The question is - to what degree? Cher – The Fed walks a real economic tight rope don’t they?

I think we’d all agree with you about softening the cycles. The question is – to what degree?

]]> By: Cher http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2677 Cher Sun, 09 Sep 2007 05:45:43 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2677 I will just talk about what I would like to see as the end result. Keep in mind I am a flower child and idealist. I agree with Patrick. We need to get this over with. We need to get the market out of limbo and "waiting mode". Buyers are stuck waiting for lower prices and for the "bottom" to buy. Sellers are stuck with inventory and since the current "waiting Period" I hear voiced is one to two years (for inventory to be absorbed), this is too long for investors/builders to be stuck with inventory that is not moving. Many investors and homeowners cannot sell unless they sell at a loss and Pay money to get out of the property. We need to get the market moving again. Government is there to help soften the blow. If builders and investors get too burned, they may not enter the market again (as stated above) y There will be more blood on the streets if properties don't move for a year or so. Many overextended investors need to get some badly needed liquidity because the market has been stuck for too long. I also think that a plan for relief for homeowners should be a top priority...something like..40- 50 yr loans interest only at a low interest rate guarenteed by the government. Next, a a soul searching and some regs to insure this does NOT happen again. What good is it to have the great American dream of homeownership and all the progress we've made in the last years, only to see that progress blown up by lack of quick action. There is one exception to this: There is a group of "home owners" that should never have bought a home. Bernanke would do a service if he would address a social mishap that has been perpetuated in our culture: That everyone should be a homeowner and that there is something inferior about being a renter. In many cases it makes sense to rent and salt away money in a retirement plan. Allot of this mess was brought about by someone's unrealistic dream that everybody can be a homeowner. This is a bunch of bunk. Until this fundamental falacy is included in the financial dialogue and this misguided notion that seems to be rooted in our culture is discussed, we are bound to go through this cycle again and again. I will just talk about what I would like to see as the end result. Keep in mind I am a flower child and idealist. I agree with Patrick. We need to get this over with. We need to get the market out of limbo and “waiting mode”. Buyers are stuck waiting for lower prices and for the “bottom” to buy. Sellers are stuck with inventory and since the current “waiting Period” I hear voiced is one to two years (for inventory to be absorbed), this is too long for investors/builders to be stuck with inventory that is not moving. Many investors and homeowners cannot sell unless they sell at a loss and Pay money to get out of the property. We need to get the market moving again.
Government is there to help soften the blow. If builders and investors get too burned, they may not enter the market again (as stated above) y
There will be more blood on the streets if properties don’t move for a year or so. Many overextended investors need to get some badly needed liquidity because the market has been stuck for too long.
I also think that a plan for relief for homeowners should be a top priority…something like..40- 50 yr loans interest only at a low interest rate guarenteed by the government. Next, a a soul searching and some regs to insure this does NOT happen again. What good is it to have the great American dream of homeownership and all the progress we’ve made in the last years, only to see that progress blown up by lack of quick action.
There is one exception to this: There is a group of “home owners” that should never have bought a home.
Bernanke would do a service if he would address a social mishap that has been perpetuated in our culture: That everyone should be a homeowner and that there is something inferior about being a renter. In many cases it makes sense to rent and salt away money in a retirement plan. Allot of this mess was brought about by someone’s unrealistic dream that everybody can be a homeowner. This is a bunch of bunk. Until this fundamental falacy is included in the financial dialogue and this misguided notion that seems to be rooted in our culture is discussed, we are bound to go through this cycle again and again.

]]> By: BawldGuy http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/comment-page-1/#comment-2666 BawldGuy Sat, 08 Sep 2007 04:22:12 +0000 http://www.bawldguy.com/what-do-you-think-real-estate-investors-speak-up/#comment-2666 Lani - There are a lotta things that might happen under Bernanke's watch. Shackin' up with Wall Street? Ain't on the list. :) He's already got 'em whining like the nine year old who's always picked last to play kickball at recess. He's a real believer in allowing the market to clean up its own messes. He also won't take that to the extreme of watching all of us go over the falls. I'm cautious, but so far so good. He seems to have the courage of his convictions. Love your analogy by the way. :) Lani – There are a lotta things that might happen under Bernanke’s watch. Shackin’ up with Wall Street? Ain’t on the list. :)

He’s already got ‘em whining like the nine year old who’s always picked last to play kickball at recess. He’s a real believer in allowing the market to clean up its own messes.

He also won’t take that to the extreme of watching all of us go over the falls. I’m cautious, but so far so good. He seems to have the courage of his convictions.

Love your analogy by the way. :)

]]>