{"id":9809,"date":"2009-09-21T10:11:23","date_gmt":"2009-09-21T17:11:23","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=9809"},"modified":"2009-09-21T10:11:23","modified_gmt":"2009-09-21T17:11:23","slug":"whats-the-downside-to-investing-today","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9809\/whats-the-downside-to-investing-today\/","title":{"rendered":"Whats the Downside to Investing Today?"},"content":{"rendered":"

My previous article suggesting today was the right time to start getting back to real estate investing was met with expected cynicism. Investors make money by going against the crowd, not with it, right? By the time everyone agrees that you should be getting back into real estate, you really should have been back six months earlier.<\/p>\n

But it is important to address the very legitimate concerns of those still urging caution. The major concern was what if the market gets worse. I would answer this concern by first looking at what would need to happen for things to get worse. Inventory is already running pretty high and building has been stalled for almost a year. In order for things to get worse, even more inventory would have to hit the market, but would that really make things worse? In places like Florida and California with hundreds of thousands and homes and condos already on the market, ranging from vacant, bank owned, distressed sellers, non-distressed sellers, etc. what would a few thousand more do? In my opinion, not very much. <\/p>\n

The economy could also get worse. Investors are demanding a stiff return on capital today under Draconian underwriting, so fire sale prices are in effect in most parts of the country. Sure, it\u2019s currently tough to get financing and it\u2019s expected to remain so over the next couple of years, but investors are pricing that in to their offer price. Rents are low and expected to remain so for the next year. Great, price that thinking into your offer price, every other investor has been doing that for the last six months.<\/p>\n

Ok, so the final argument is no one would sell at those prices. The great thing about millions of homes being for sale is that someone will sell at that price; you just have to find the right property. Smart sellers are wising up to the fact that a low offer is better than foreclosure. Banks are wising up to the fact that a low Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

My previous article suggesting today was the right time to start getting back to real estate investing was met with expected cynicism. Investors make money by going against the crowd, not with it, right? By the time everyone agrees that you should be getting back into real estate, you really should have been back six […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-9809","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":18028,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18028\/overnight-news-if-ibuyers-sell-slowly-and-weakly-in-an-impossibly-easy-market-how-much-worse-will-they-do-when-the-worm-turns\/","url_meta":{"origin":9809,"position":0},"title":"Overnight News: If iBuyers sell slowly and weakly in an impossibly-easy market, how much worse will they do when the worm\u00a0turns?","author":"Greg Swann","date":"April 7, 2021","format":false,"excerpt":"Real estate is kids and dogs, but real estate sales is entrepreneurs. I was interviewed yesterday on the future prospects of the big-name iBuyers, whose numbers are everyday augmented by many, many no-name iBuyers. I'm a bear, of course. When the market turns, the slow-selling pontificating poindexters will discover why\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":326,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/326\/economist-elliott-pollacks-housing-market-analysis\/","url_meta":{"origin":9809,"position":1},"title":"Economist Elliott Pollack’s housing market analysis","author":"Greg Swann","date":"September 12, 2006","format":false,"excerpt":"Phoenix and Tucson housing market analysis from Elliott Pollack:The economic fundamentals that have allowed Greater Phoenix to prosper have not changed. Our long term forecast remains positive.Note this slide: That's ostensibly bad news, since our affordability is down substantially over the last 6 years. But what's interesting to me is\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6950,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6950\/the-bad-news-obamas-housing-relief-plan-is-a-giveaway-to-lenders-not-homeowners-the-worse-news-it-wont-work-anyway\/","url_meta":{"origin":9809,"position":2},"title":"The bad news: Obama’s housing relief plan is a giveaway to lenders, not homeowners. The worse news: It won’t work, anyway.","author":"Greg Swann","date":"February 19, 2009","format":false,"excerpt":"If you read the news this morning, you'll find Realtors all over the country rejoicing that President Obama has surged into the depressed real estate market on a white charger, bearing with him an heroic plan to rescue everyone -- borrowers, lenders and especially Realtors. No discouraging words? To the\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2826,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2826\/in-the-metropolitan-phoenix-real-estate-market-our-long-slow-slide-in-home-prices-is-finally-encountering-demand\/","url_meta":{"origin":9809,"position":3},"title":"In the Metropolitan Phoenix real estate market, our long, slow slide in home prices is finally encountering demand","author":"Greg Swann","date":"March 24, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0In the Metropolitan Phoenix real estate market, our long, slow slide in home prices is finally encountering demand If you've been looking for the bottom of the Phoenix real estate market, it might well be upon us.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1655,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1655\/not-all-neighborhoods-feeling-a-downturn\/","url_meta":{"origin":9809,"position":4},"title":"Not all neighborhoods feeling a downturn","author":"Greg Swann","date":"July 14, 2007","format":false,"excerpt":"This is me in yesterday's Arizona Republic (permanent link): \u00a0Not all neighborhoods feeling a downturn There are neighborhoods in the Phoenix area where the housing downturn is barely discernible. How can that be? News reports are full of doom and gloom stories. Defaults, foreclosures and interest rates are up, with\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2541,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2541\/selling-your-home-in-a-declining-market-the-race-is-to-the-swift\/","url_meta":{"origin":9809,"position":5},"title":"Selling your home in a declining market? The race is to the swift","author":"Greg Swann","date":"January 27, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Selling your home in a declining market? The race is to the swift If you're chasing the market down, chances are you'll never catch it. The trick to pricing a home for sale is to race the\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9809"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9809\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}