1980s Waterloo, IA: Buyer's Market

I was not alive in the 1980s but the landscape for manufacturing rich areas was bleak. In Waterloo, IA the biggest job players were Rath Packing Plant and John Deere. Rath had been around for many years and had at one time been the largest meat packing plant in the United States however it closed in 1984. Low demand in the farming industry also forced massive layoffs at John Deere. Coincidently, There was a large highway being built through Waterloo and the joke was it will make it easier to leave the area.

With depressed markets and few jobs the foreclosures started coming through in droves. A few of my relatives my aunt and uncle with the assistance of my grandfather bought some properties. I am unsure if it was a foreword thinking sentiment or just that they were so cheap became attractive. All I remember was my uncle telling me he was putting them on his credit card! 

Can you imagine being able to do that now! When the hard money lender is a credit card that would be unbelievable. 

I am unsure on all the specifics on what prices or how many they bought but I do know that none were over $10,000. My aunt but one for $8,000 that is now were around $110,000 and my aunt and uncle bought a duplex together that they still own for $10,000 and it rents for $1000 a month now. Forget the 1% rule, how about the 10% rule.

Market conditions definitely are a huge player and the favor the bold. As Warren Buffet says "Get greedy when others are fearful" I believe this is easy to say and see from a detached position but much harder in the moment. Also, I believe it is important, no matter the market, to get skin in the game and be building your knowledge and experience. 

I 100% agree with Brandon Turner that those who are not investing because they are waiting for the market to crash to invest. Likely will not have the stomach to enter at that time. It takes a certain person to buy more when there is blood in the streets and that person has gotten there with experience and knowledge of the market. 

I am unsure if we will see anything like this housing market in the area again but if we do I just hope I can recognize the value of it and I am in a position to make some hay.

Would love to hear some other wild market condition stories if you have any let me know!

Learning: I am still wanting to learn about USDA properties and Development

Looking: Still wanting a BRRR style deal.