Intro to Real Estate Stinks

As many of you ponder why I, as a real estate professional write a post on my blog entitled "Real Estate Stinks", I will tell you why for half of you it immediately does (which is the focus) and the other half it immediately doesn't. 

Overall, real estate is an investment involving substantial benefits and substantial risks.  For most of you, during a real estate boom, it is very easy to get sucked into the hype of the buying frenzy by a fast talking realtor.  It is easy to follow everyone's lead.  For others, real estate involves great research and timing.  What we have learned recently is that no matter the type of investor, ANYONE can get hurt.  For instance, in SW Florida, if you bought real estate after the year 2000, chances are, you are in the whole right now....BIG TIME.  You could be Jane Doe or Donald Trump.  Nobody predicted what is happening now.

On that note, SW Florida has also offered amazing and unique opportunity for homebuyers and investors now, just like many parts of the world.  Real estate can literally be purchased for 20 cents on the dollar and sometimes less.  Guess who is capitalizing?  Yup, the cash buyers.  Kind of unfair to the middle class who relies on financing and leverage.  For 80% of SW Florida residents, real estate stinks.  If you have waited for a time like today and believe that homes are truely affordable at your budget, get in line for that house.  Chances are, investors are going to bid on it, outbidding your budget and immediately eliminating you from contention with a cash offer to the auction house and banks.  This goes for small time investors also looking forward to the American Dream of being financially free one day, looking at real estate as your saviour.  Chances are, you are getting beat by the rich.

Here is my solution, and some may not even like it.  Talk to people with cash or even hard money lenders.  Use their cash to acquire the properties, but only after you are prequalified for a loan.  It's a win-win situation.  When speaking to a person with cash capabilities, offer them 8-10% on their money for a quick flip.  In SW Florida, foreclosure homes are going at auctions for $50,000.  If you find your dream home coming up for auction, offer the cash guy $5,000 and a promise that you will buy the home back within 30 days.  He will likely ask for a hard deposit and that is fine if you think your loan prequalification is solid.  Instead of continual frustration, you get a house for your budget, while working in your own criteria for the purchase. 

We can help homeowners with this in the right circumstances.  My blog is created to help the population who think "Real Estate Stinks".  I can assure you, most of you reading this believe that it does....worse than any dumpster you can find on Coney Island.