Summer Madness
Play this while you read…
I thought I’d queue up Summer Madness by Kool and the Gang for ya…..Nearly everyone has had a summer to remember, where alcohol flowed like water and at the time things couldn’t be more perfect. That’s basically what has happened to our country’s housing industry. We were “drunk” on greed doing cash-out refinances, HELOCs, multiple flips and speculating like crazy. Now it’s the morning time and we are experiencing the worst hang over of our lives.
Some speculators saw their net worth grow into the millions in 2005 are now worth very little to nothing. I still have these “investors” call every week looking for a cash-back deal to keep their ship afloat. Now is the time where investors have to make smart decisions because one bad decision can be detrimental to your portfolio.
This housing correction will probably be the worst that we will ever see in our lifetime. Not only is there a large supply in most markets, but now the question is can you qualify for a home loan due to the credit crunch. Although people are still out there preaching fools’ gold I still truly believe this is a good time to buy in certain markets, if the deal makes sense for you and your portfolio.
We need to get back to the basics with real estate investing in this country. Adding positive cash flow property to your portfolio is always a good idea, especially to hedge your money against current and rising inflation. It goes back to the old saying “it takes money to make money”. Choosing your team carefully and your properties will be critical to your success.
Skyler Moore
YAERD.org Investor Relations & Project Management
Skyler [at] yaerd.org
312-265-8417
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