Investors who were buying through the ‘08 Crisis

[Chris Purcell]

There seems to be a post every week regarding the next financial crisis.

Instead of worry when or how it’s going to come...

Who was investing through the 2008 crisis and buying heavily?   Some things I’m curious about:

- Prices - I’m assuming people were bugging and looking to sell for pennies.  Were the deals out of control?

- Lending - were banks still lending? Could you pull a hard money loan at a property for 65% of LTV and refinance on the back end for 75%?

- Renting - what kind of vacancies did you see in your portfolio?   Was it tough to rent?  Evictions?

Feel free to add other info that’s relevant!

[Michaela G.]

I had sold everything beg of 2006 and moved to Florida and then California. Started buying houses after the market crashed for 10K in a particular neighborhood and everyone told me that I was nuts. 

Low income tenants were very difficult to deal with, because they simply didn't have savings and any emergency resulted in them using rent money, with the idea that they'll catch up before the eviction was finalized. Usually didn't work. 

Had to buy with cash, because nobody would lend in the area, especially on 10k houses. 2 years ago I was finally able to start refinancing.

Now the market has turned and I get inundated with postcards and calls from investors.