question for all... R we the front line???

Question

I hope that with what Im going to ask everyone I don't upset anyone..

With all that's going on with the country,  Do you think that the recovery of the economy will start with each and everyone of us?? (investors)

For an example when we purchase, wholesale ect...  We use title, attorneys, mortgage brokers, sub contractors, marketing, goods,transportation,  and all the others that company's that I can't think of right now..

What do you think???

Lorene Fleming · Answer

[By the way Lorene Fleming welcome to Bigger Pockets. Nice to see new individuals getting involved in the forums. Please take a few moments to share a little about yourself and your investing activities. There is a forum area here for member introductions.]

Charles Perkins, thank you. I will do that.

Account Closed · Answer

I think investors are and will be a big part of the housing recovery.

By the way Lorene Fleming welcome to Bigger Pockets.  Nice to see new individuals getting involved in the forums.  Please take a few moments to share a little about yourself and your investing activities.  There is a forum area here for member introductions.

Lorene Fleming · Answer

If the housing problem remains one of the reasons for the sluggish economy, the depressed prices, distressed properties, etc, then yes, I believe investors are at the front lines of the economic recovery, or can be.

If we each help our surrounding communities by utilizing all the businesses mentioned and improving the condition of the available real estate and making home buying or affordable renting a possibility again for perhaps hundreds of deserving people, then we improve that area which will ripple outward and with enough investors (or the same investors in multiple areas) the economy will necessarily improve.

More funds in the system, more habitable affordable properties = a fundamentally better economy. I believe this to be true and am writing my thesis and final MBA project on this subject.

Ophelia Nicholson · Answer

I don't know about the economy on a whole but if you mean up to us to help the real estate market then I would say a definate yes!!

If we didn't have people flipping/rehabbing right now what would happen- well you'd have two sets of houses on the market- Distressed houses- either by sellers or banks that majority need repairs and majority of short sales have people who either will not or cannot make the repairs needed to get financing  
Then you have regular sales that probably needs repairs-sometimes not but how many regular homeowners are making the same amount of repairs as they did years ago?

So I think investors are helping the economy recover maybe just on a local basis right now but eventually I think we will help with full blown recovery.

Flipping investors are taking homes that would either not be financable and repairing them which in turn keeps prices at a decent level for regular sales.
They are buying homes for cash/hard money/private money and taking inventory off the market which also helps. Buy and hold investors are buying and renting out to people who couldnt otherwise afford to buy right now.

So I think overall if investors were running away from real estate then the state of housing would be much worse luckly many of us see great oppurtunity and are running to real estate instead of away from it.

Rob Gillespie · Answer

Well Carl you are correct that it is up to all of us to change the current situation. 
The real problem is that there are too many people drawing on the system and not enough contributing. 
As for the economy, it is great for some and bad for others. 
Money is fluid, it just flows constantly. It is leaving some and goin to others. As investors, it is our job to take advantage of the current climate. I am lovin it! :mrgreen:

Sherry Lewis · Answer

Carl,

I don't know that we are the "front line"  but I certainly do agree that we are a part of the solution.  The more we invest, the more jobs are created the more the market moves.  Thanks for your observation and welcome to BP!