Investors see activity, so they jump in not wanting to miss the boom.

Thankfully, they're also incorrect.So many Americans own their homes free and clear that reverse mortgages are realizing a boom in popularity.Reverse Mortgages Boom While the Rest of the Industry Swoonshttp://realtytimes.com/rtpages/20070430_reversemort.htm

Some individuals are having a difficult time.During the real estate boom there were still people not doing so well.This is because they made bad decisions and are suffering the consequences of living too high on the hog during the boom.This is the kind of economy that will create many millionaires, take advantage of this time because there is plenty of money to go around.This is just a natural thing in the economy.It is called a correction in the stock market.If you believe the doom and gloom of the media your doomed anyway.Our economy is the strongest in the world period.The question I have Is there food on your table a roof over your heads and cloths on your back.Hmmmm I guess your not so bad off.You just have to give up a couple of luxuries.Maybe you can;t afford that new model of 10,000 inch plasma screen TV oh well.If you have the neccesities and your family there is nothing to complain about.My wife is filipina and i have been to the philippines.

I have a reputation for being able to actually close deals, as opposed to the multitude of newbies during the boom who were good at talking and bad at closing.

In different markets I have study the ones that did not boom, but just maintained slow steady inflationary appreciation, rents and mortgage payments for homes remained almost equal.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

With consumers becoming so much more savvy, why take the risk.FSBO works better in a booming market.

On the other hand , while stocks were booming 2 years ago, and so was RE , I could still find properties at a discount, and even today they're still cashflowing.

I agree that most people use the tapes, books, etc. as dust collectors which is the main reason they are not successful, although most of the guru products are tools to upsale you on the next "bootcamp".My partner actually got started in RE by buying the Carlton Sheets program and he became one of his "success stories".

When you consider that this man's advice came from having survived the double digit inflation of the 1970s (during which he lost a large commercial property on an adjustable rate commercial mortgage - but didn't quit), the recession and S&L fallout of the 1980s and the most recent meltdown and ever smaller boom and bust in between - this advice is not to be taken lightly. 80 years of work and an excellent legacy he has left.