Why 500 Point Drop was Good for Real Estate Investors
So I am sure you saw the 500+ drop in the dow yesterday and all the noise in the press about double dib this and double dip that.
Well in a very perverse way this is GOOD News for Real Estate Investors. Why, you ask?
Well think about the average buyer/investor and I suspect the following will happen.
1) More Pending contracts for purchase will get cancelled
2) Less Buyers will bid on the next trickle of REO's
3) As Supply Rises and Demand falls what happens? Prices fall :-)
4) I think more people are going to stay in cash and just be scared.
5) Eventually people in cash will realize they are losing money to inflation and they will hunt for yiled
6) As people hunt for yield the experienced investor offering a secure return should get a large increase in Private Money
So as an active investor stay focused and look for even better deals, keep your reputation in tact and let's do our part to help turn this economy around
Good Investing
Comments (2)
Hi Jerry, Last week's crazy stock market ride has been great for us as it has increased our reach to private investors and it helped push a few couples that were on the fence. So as expected it has been nothing but good news. Good Investing
Michael Zuber, over 13 years ago
Michael, I happen to agree with you 100% I'm not happy about the roller coaster, as I have money tied up in the market also. But I have found it easier of late to find people looking for good, secure investments. In the last two days I've had both out of state buyers, and people looking for passive investments call.
Jerry Puckett, over 13 years ago