Comments on: Turning the Real Estate Ship Around: Why It Hasn’t And How It Can http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/ Learn, Network, Invest Sun, 22 Nov 2009 18:20:15 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: PC Guide http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-61436 PC Guide Tue, 18 Nov 2008 23:09:01 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-61436 There unsure about how much they will have to write-down/write-off assets that are already on their balance sheets. In other words every time a financial institution has to write-off/write-down an asset they have to use cash in order to cover the short fall. This is why financial Institutions having been raising billions of dollars of capital. There unsure about how much they will have to write-down/write-off assets that are already on their balance sheets. In other words every time a financial institution has to write-off/write-down an asset they have to use cash in order to cover the short fall. This is why financial Institutions having been raising billions of dollars of capital.

]]> By: Commercial Mortgage Loans - MasterPlan Capital LLC http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-58262 Commercial Mortgage Loans - MasterPlan Capital LLC Wed, 09 Jul 2008 20:39:59 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-58262 Lenders will start lending when investors start buying thier loans. This is, first-and-foremost, a liquidity crisis. Lenders will start lending when investors start buying thier loans.
This is, first-and-foremost, a liquidity crisis.

]]> By: Gerald Romine http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-56970 Gerald Romine Fri, 23 May 2008 00:15:43 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-56970 A good post. What most people do not realize is these loans are created out of thin err... well... sort of. Let me explain very briefly - A LONG time ago when we were on the gold standard there was gold for every dollar so each dollar was backed with value. That standard is long gone. Today the banks operate on a a fractional reserve banking system which lets them play with and risk other people's money. The bank is allowed to loan out just over 9 times the amount of money it receives in deposits. Translation is your 10K deposit equals a 90K loan and none of it is the banks money! So the banks do not have their own skin in the game! Should a bailout be allowed for investors, homeowners, or banks? No. Everybody needs to grow up and realize nobody put a gun to anybody's head and told them to borrow or loan money. Gerald Romine A good post.

What most people do not realize is these loans are created out of thin err… well… sort of. Let me explain very briefly – A LONG time ago when we were on the gold standard there was gold for every dollar so each dollar was backed with value. That standard is long gone.

Today the banks operate on a a fractional reserve banking system which lets them play with and risk other people’s money. The bank is allowed to loan out just over 9 times the amount of money it receives in deposits. Translation is your 10K deposit equals a 90K loan and none of it is the banks money!

So the banks do not have their own skin in the game!

Should a bailout be allowed for investors, homeowners, or banks? No. Everybody needs to grow up and realize nobody put a gun to anybody’s head and told them to borrow or loan money.

Gerald Romine

]]> By: charles http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-56969 charles Thu, 22 May 2008 19:46:08 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-56969 Thanks to all who liked my latest post--I do believe that the items I outlined in it are some of the key issues that need to be resolved before we begin to even see a hint of light at the end of the you know what! Thanks to all who liked my latest post–I do believe that the items I outlined in it are some of the key issues that need to be resolved before we begin to even see a hint of light at the end of the you know what!

]]> By: Ilyce Glink http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-56966 Ilyce Glink Thu, 22 May 2008 19:07:07 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-56966 The credit situation is a real problem and it's clear that we'll need more time to get the housing market up and running again. But as slow as it is, there will still be 4 million people or more who will buy or sell a house this year. The deal is that you've got to make your home look better than all of your competitors, and priced more reasonably. It isn't any more complicated than that. I've got some great suggestions on how to do this in my book, 50 SIMPLE STEPS YOU CAN TAKE TO SELL YOUR HOME FASTER AND FOR MORE MONEY IN ANY MARKET. The credit situation is a real problem and it’s clear that we’ll need more time to get the housing market up and running again. But as slow as it is, there will still be 4 million people or more who will buy or sell a house this year. The deal is that you’ve got to make your home look better than all of your competitors, and priced more reasonably. It isn’t any more complicated than that.

I’ve got some great suggestions on how to do this in my book, 50 SIMPLE STEPS YOU CAN TAKE TO SELL YOUR HOME FASTER AND FOR MORE MONEY IN ANY MARKET.

]]> By: Luxury Homes For Sale http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-56951 Luxury Homes For Sale Thu, 22 May 2008 08:37:20 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-56951 Well done and very generous. I’ll pass your words of wisdom along. Thank you. Well done and very generous. I’ll pass your words of wisdom along.
Thank you.

]]> By: Clifton Pape http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/comment-page-1/#comment-56946 Clifton Pape Wed, 21 May 2008 23:14:08 +0000 http://www.biggerpockets.com/renewsblog/2008/05/21/turning-the-real-estate-ship-around-why-it-hasnt-and-how-it-can/#comment-56946 Well written article and you make several good points. However, lenders are not lending because of there balance sheets. There unsure about how much they will have to write-down/write-off assets that are already on their balance sheets. In other words every time a financial institution has to write-off/write-down an asset they have to use cash in order to cover the short fall. This is why financial Institutions having been raising billions of dollars of capital. So with new loans they naturally have to tighten their lending criteria because they are unaware of how much “exposure” they have on their securitized assets which are currently sitting on their balance sheets. Once again I enjoy your post and you are great and picking hot topics to write about. Keep up the good work and I look forward to your response and upcoming post. Well written article and you make several good points. However, lenders are not lending because of there balance sheets. There unsure about how much they will have to write-down/write-off assets that are already on their balance sheets. In other words every time a financial institution has to write-off/write-down an asset they have to use cash in order to cover the short fall. This is why financial Institutions having been raising billions of dollars of capital.

So with new loans they naturally have to tighten their lending criteria because they are unaware of how much “exposure” they have on their securitized assets which are currently sitting on their balance sheets.

Once again I enjoy your post and you are great and picking hot topics to write about. Keep up the good work and I look forward to your response and upcoming post.

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