Comments on: More Review of REO Listings

By: Geotpf

Geotpf — Thu, 19 Nov 2009 16:47:55 +0000

Oil and stocks are both below their peaks. Gold is high because people like you are freaking out.

But when people talk about inflation, they are talking about how much does stuff (housing, groceries, big screen TVs, Barbie dolls, peat moss, Jimmy Choo shoes, power tools, whatever) costs. And stuff now costs less; hence, deflation. Don’t redefine the term.

By: 3clicks from da beach

3clicks from da beach — Wed, 18 Nov 2009 18:23:54 +0000

Throw out all text books and market fundamentals. History is being re-written and most are behind the wave. And for those who aren’t ridding the wave (the lucky few), it is best to watch from shore. Save for a rainy decade – I’m going long term fixed.

By: Sean

Sean — Wed, 18 Nov 2009 17:16:28 +0000

Geotpf,

Reality is way more complicated than that. We are in a period that is both inflationary and deflationary.

Liquid assets are currently in an inflationary period, thanks to Uncle Ben and Crazy Timmy’s whirring printing presses and the carry trade they create. That’s why gold, oil, stocks, etc. are all climbing the wall.

Actual goods and services (i.e. the real world) are currently deflationary and with the amount of slack capacity and unemployment and underemployment, that’s not going to change.

Real estate sits at a strange intersection of these two parallel universes, because the deflationary real world is and will push house prices down further and keep them there for quite a while (go look at charts from 1991-1997), but if you mortgage the house with cheap money at a fixed rate, then the mortgage is a good inflation hedge when interest rates go up in the future from the devalued dollar.

By: NateTG

NateTG — Wed, 18 Nov 2009 17:01:56 +0000

“There is no inflation. In fact, currently we are in a deflationary period.”

Deflation + Devaluation (Unhappy times)

By: Geotpf

Geotpf — Wed, 18 Nov 2009 16:34:26 +0000

There is no inflation. In fact, currently we are in a deflationary period.

By: tj & the bear

tj & the bear — Wed, 18 Nov 2009 06:25:44 +0000

Jim,

You *have* to get that new video up.

“Hookers’R'Us”? Hilarious!

By: duncbdunc

duncbdunc — Wed, 18 Nov 2009 03:42:04 +0000

Real estate is only an inflation hedge if the inflation shows up in wages. With the Fed hinting at structurally high unemployement in the U.S. and with abundant and cheap labor in emerging countries, I’m not sure I’d hang my hat on seeing significant wage inflation in the U.S. any time soon.

By: Local Boy

Local Boy — Wed, 18 Nov 2009 03:16:15 +0000

Shadash–Bricks and Mortar have also proven to be an excellent hedge against inflation–Real Estate is a tangible asset.

By: shadash

shadash — Wed, 18 Nov 2009 02:09:53 +0000

what housing bubble,

Commodities like gold are going up because the value of the dollar is going down. This is also called inflation.

Banks aren’t buying treasuries because they’re a good investment. The Fed is forcing them to in an effort to prop up the value of the dollar.

Eventually the Federal Reserve will grind the dollar into worthlessness.

By: murf2222

murf2222 — Wed, 18 Nov 2009 01:38:37 +0000

I’ve been monitoring the Trustee sales for the past couple months pretty closely. Some of the opening bid prices are really discounted, I’ve seen 50% or more off of the amt. owed, but Ive ALSO seen some that offer very little discount off of what’s owed so naturally those are the ones that go back to the beneficiary.

There have been a couple of places that I had tried to buy as short sales, only to watch as the lender pulled the rug out from everyone and sold at Trustee…………for 100K LESS! Of course this is a phenomena that is worthy of an entirely separate thread.

Getting back to the Trustee-sale pricing metrics here….. Due Diligence is the motto. There are deals to be had at trustee- worthy of the risk that is inherent in the process, but there are many more that are not worth the added risk and you’d be much better served to buy those as an REO.

Murf2222