I don't go very high end, so just from observation, above the FHA limits things have definitely cooled. 

@Andrew Johnson - Excellent observation.

I observe their behavior and see if they seem easy going.

Stopped seeing people in the mid 90s because I work too large an area (all 58 counties of California, now) and, frankly only see properties rarely, when they interest me and typically long after I own them of have already made a loan.I've been observing a friend who is learning the business from the ground up, so to speak.

Just an observation from a complete beginner myself here.

Go there a few times just observe and pretend you want to bid on them.

Following are my observations and wanted to get your opinions-I see so many 9-5 professionals with lot of money, especially those in their forties/fiftiesMost of them are either unaware or think that IRA/401K investing in real estate is very riskyConsidering the above, is this a niche to specialize?

Just a casual observation...not a big deal.

My observation is that the one making all the money on the flip is the hard money lenders.

Try to take this info and your own personal observations.