MORNING POST: Is the market tarting to come down?

[Quinton Phillips]

Been hearing a lot of perspectives on this topic.  I believe that the market won't go down in my opinion because there are jobs starting to accommodate with the rise of prices that's happening right now.  Hect Mcdonalds made an adjustment of paying $15 per hour (in Atlanta).  I think as jobs start to pay more to help fellow employees to afford living in this market.  We may never see the market come back down that we will all like it at.  What are your thoughts on today's market? 

[Jay Hinrichs]

I there is downward pressure for sure its starting with distressed assets and wholesalers.. I am getting reports from my teams and e mails on the very few wholesaler e mails I get noticed on where they are lower their prices and or deals are not closing and just expiring and my teams are then putting in back up offers behind the wholesalers and getting better deals as a result .

Not every deal of course but enough of them to see softening in that asset class.

in new builds your seeing builders offer closing credits  financing credits and some price reductions ( I have not personally had to yet) but I remain vigilante to  see if I need to do this to keep my projects moving along .

2008 style meltdown I agree with you.. I mean take ATL as a prime example I had loans there in 07 houses ( nice ones) that had full apprasials that were for 130 to 140k and i loaned on a few 80 to 90K on them.. Hard money loans buyers defaulted because tenants did not pay or lending dried up and they could not refi and I had to take them back..  And even with them rented bringing in 700 to 800 a month with NO INVESTOR LOANS they could only be sold for cash I remember best I could get for one of them was 40k that was a 50k loss on that one property and that was happening by the thousands in the atlanta metro area.. LOT values crashed 90% or more.. I looked at fully developed lots ( pipe farms) in Henry county that I could buy for 1k a lot.. tried to raise a fund to buy them but investors pushed back  ( It does not cash flow) I did manage to buy 14 lots for 3k a peice in a nice development of 250 to 350k homes . held them a little over two years and exited at 30k per lot that was a 10X  but that was then and now is now .. so agree some softening no utter meltdown like what happened then.