Could a Trusted Realtor be Right?

[Jason Merchey]

I know a Realtor I trust. I was picking his brain about the local situation in re: investing in say, a flip or at least, wholesaling. He surprised me by noting that, at least in the area he specializes in, which probably has about 3-400,000 residents, the situation for a newbie investor like me is grim. He said that for a few reasons, now just ins't a good time to pull a deal off. He noted there was a serious lack of supply, that 50 bidders show up on the courthouse steps and compete aggressively for foreclosures, that there is a big investment group buying up everything they can get their hands on for buying-holding, and that basically the investors he knows are sitting tight. He said I was basically 18 months late to the party. He noted buy and hold was a different animal, but as far as getting a deal worth an investor's time, he doesn't see it.
Could this be true? I was reading in a book that there is always a good time to find value by improving a property and buying under market value. Is is possible that it is just really hard to by something for 30-40% under market value at this time in this market? I suppose if I were buying a residence, even 5% below market value would be cool - instant equity. But as far as making $20,000+ I'm fairly intimidated now. Thoughts?