Will 2010 be year of the Investor? What do you Think?

Question

Curious what you think about 2010 becoming a market dominated by Investors as the First Time Buyer programs expire and inventory explodes. Could the government create a program focused on investors? Maybe the could up the loan limit from 10 to 30 or 50 properties? Or they could create a Fix rate loan for anyone buying a foreclosed property?

What program would you like to see?

Should be fun ... I look forward to 2010 ...

Account Closed · Answer

[[[[.......Could the government create a program focused on investors?....]]]] As far as I can tell, the government is bundling investors up with the rest of "the richest Americans" and their only interest in Investors is how to extract every single penny from their pockets to pay for programs for the "deserving" poor. Allow you to hold more mortgages? Probably not, but you can expect them to think up new ways to tax you.

Peter Giardini · Answer

The challenage is to figure out how to take our profits from what we are given. I believe the next 6 months could be really good for rehabbers and wholesalers who provide properties to rehabbers. The buy and hold market will only get better on the buy side... but until the economy improves the risk is in finding tenants at the reliable rents. Overall, I am thinking 2010 will be better for investors then 2009.

Michael Rossi · Answer

PNW is exactly right - landlords are the ENEMY of the socialists. EVIL, RICH, CAPITALISTIC LANDLORDS! In addition, no year is the year of the investor. Anyone that's going to be a serious investor had better be able to make money EVERY YEAR! Having said all that, I do think that landlords are in line for handouts. To be more precise, I think that the government will be taking our money and handing it out to the deadbeats!!! It's already happening.

Praveen Kumar · Answer

As property investors we have to find innovative solutions not only to survive but thrive. There seems to be no point in blaming the government, the banks or the market situation. The situation will remain challenging till such time finance which is the life blood of property remains tight. As property investors we have to keep our ears close to the ground to see the slightest shift to take advantage of the situation. I have written two articles that may help clarify what might happen in the near future [LINK REMOVED] and [LINK REMOVED] I hope you enjoy my research. Praveen

Will Barnard · Answer

This thread is way too political for me. I think I will pass on that but I will say that 2010 should be my best year ever! (at least that is what the goal is)

J Scott · Answer

I was taking issue with the bashing, not at all the profiting... :) Profiting from a political policy is great! But by profiting from political policy and then bashing that policy, you are inherently detracting from your argument against that policy...some would call it "biting the hand that feeds you"... Personally, I see absolutely nothing inherently wrong with profiting from socialist policy (or even with some socialist policy itself)... For example, education in this country is socialistic, and that's a wonderful thing (everyone has access to education)...being a public school teacher is tremendously honorable, regardless of the fact that teachers are making a living off of socialistic policies... So, keep profiting...and while you're at it, thank the government for giving you the opportunities you are taking advantage of...

Timothy W. · Answer

That is completely wrong. Section 8 landlords are using the government as an optional client they are selling goods and services too. Section 8 landlords are not required to participate which is counter to socialist dogma. This is no different than a capitalist obtaining a municipal contract. What will happen in 2010 is political battle lines will be drawn and an example will be some landlords who previously participated in Section 8 will find themselves needing to withdraw. There will be a ton of money to be made in 2010 but you have to be smart and principled. I certainly wouldn't structure my business next year to be dependent on government contracts.

Michael Zuber · Answer

Given the desire of government to tax the rich and give to the poor (at least for the next 2 1/2 years) how can we turn this into our advantage? The government in general is slow moving and telegraphs what they are going to do. So as investors we need to think a step a head? I like to say let them play checkers while we play chess!!! Thoughts on what moves we could do now???

Michael Zuber · Answer

Peter I am with you. I think my 2010 purchases will be better than the 12 I bought in 2009 (and those weren't bad). Specifically I am tracking several small commercial appartments 8-12 units. I suspect these banks will eventually take less down (currently asking 25% down) or drop the price significantly for cash buyers. If the government throws more tax credits at first time buyers I might just 1031 out of the houses into small apartments ... Should be fun

Michael Zuber · Answer

Mr Scott, When I looked at the future given the data I have today. I see a greater need for Section 8 Housing and as you mention the government/socialists need these types of investors. But I am a capitalist and a section 8 landlord!!! I want to move my capital into the path of profit even if it is influenced by crazy government policies.