BiggerPockets

Do you know what it is?
It is actually quite simple. . . .

The biggest investing mistake you can make in 2010 is to NOT be a BUYER!

So, to avoid this disasterous mistake, get off the couch, take action and buy! Most likely (but no promises), this will be the greatest investing opportunity you will encounter in your whole LIFE and that is no joke! :lol:

No doubt ever year presents opportunities, I was just pointing out that this upcoming year could be the biggest one of them all.

At least that is what my crystal ball says! :) Thanks for your comment.

I buy in January 2010 and its a very good deal and for the rest of my money I look for a lease purchase.
2009/2010 is the time to BUY :).

-Uwe

Happy Thanksgiving.

While I believe there will be great opportunities in the coming year(s) I also believe these opportunities will require a high degree of skill and entail a high degree of risk. As it has always been, in any market.

Myself, I'm becoming much more particular of neighborhoods, neighbors, ROI, location, demographics, etc., and that is a growing list.

I see deflationary rents where I'm at, scant flip opportunities, growing unemployment, idiot banks holding onto REOs that will soon be worthless, and other potential mantraps.

But hey, I just closed on a 3/2 at 40 cents on the dollar (which, by the way, didn't just simply fall off the opportunity tree into my pocket). And who's the first guy who wants to rent it? A previously-succesful RE developer/REO wholesaler who's downsizing from his $450K home into my brick starter.

In any event, Good Luck to all in succesfully finding the great right opportunities in 2010.

But maybe keep in mind what George Clason had to say: "Opportunity is a haughty goddess who wastes no time with those who are unprepared."

Be afraid... Be very afraid... :mrgreen:
The recent published unemployment rate doesn't show the whole picture and it is now estimated that the real unemployment rate is actually close to 17%. Many analysts predict that the job market will not improve until 2012 or beyond. If you are a buy-n-hold investor, I'd suggest that you check the employment market in the area before you buy. No point of buying a $130,000 property to find out that you cannot even rent it to cover your expenses....

Be careful. It is a great time to buy but it's going to get nasty out there. Buy cash when you can, build your cash flow and keep your numbers strong. It's not the early 2000's where there's buyers around every corner. In this market I never buy anything at more than 20-30% of FMV. You don't have to and you really can't afford to.

Here's how bad it is. I've found California properties that cashflow to the 2% and 50% rule in neighborhoods that aren't bad. This is not a slam on California (not this time :wink: ) but this hasn't been the case for what 10 years now? It should be an eye opening indicator that something is still very much out of whack here. I'm taking the opportunity of 2010 to buy a southern California property. Even if I never rent it out I have Indiana cashflow (and Indiana tenant laws) to cover owning it and value will go up as it really has no other place to go.

It's not the early 2000's where there's buyers around every corner. In this market I never buy anything at more than 20-30% of FMV.

Tim, I would like to point out that in my local markets, you can indeed find buyers around every corner, in fact, they are standing in line! Also, in CA, you just cant buy at 20% or 30% of value (including repair costs) as you can in places like MI, OH, or IN. That said, you will get better appreciation over time as your other point is very valid - the values have not many options other than to go up from these figures. While it is true we could see another slight reduction here in SO CAL, I see values fairly stable and then going up in 2012 or so. My crystal ball told me that! :lol:

Originally posted by nationwidepi

Also, in CA, you just cant buy at 20% or 30% of value (including repair costs) as you can in places like MI, OH, or IN. That said, you will get better appreciation over time as your other point is very valid - the values have not many options other than to go up from these figures.

I'll be there for flipping but definitely not land lording. I'm liable to royally piss of your judges there with my Indiana "red state" lease. :lol: