Business Credit

[GregB]

RE is variable by area. However, I think that the current attempts to prop up values with low interest, low down loans, media hype, etc. are likely to fail and we will see the rest of the drop.

Everyone that I know that has bought a house for themselves in the last year or two is planning to keep it forever and doesn't mind that it will go down in value in the near future. The three that always bought a house but kept the previous one for a rental have sold the previous house instead of keeping it.

The many people I know that are investors are not buying or very carefully picking the few that are worth buying.

I have only seen one short sale or foreclosure that I feel was a good deal. They borrowed the money from another source and paid cash.

[Uborrow-Upay]

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GregB wrote:

RE is variable by area. However, I think that the current attempts to prop up values with low interest, low down loans, media hype, etc. are likely to fail and we will see the rest of the drop.

Everyone that I know that has bought a house for themselves in the last year or two is planning to keep it forever and doesn't mind that it will go down in value in the near future. The three that always bought a house but kept the previous one for a rental have sold the previous house instead of keeping it.

The many people I know that are investors are not buying or very carefully picking the few that are worth buying.

I have only seen one short sale or foreclosure that I feel was a good deal. They borrowed the money from another source and paid cash.

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GregB, not disagreeing with a word that you wrote, especially the part about "very carefully picking the few that are worth buying".  That's always prudent.

And I, too, think the values will still drop to some extent.  And I think home values won't see a rise for at least ten years.  But I also happen to think that the properties worth buying are not going to go any lower pricewise than they already are, and those properties are not necessarily distressed. 

Just to be perfectly clear, I'm not talking about flipping homes, I'm talking about long-term income from decent rental properties.  I have had specific criteria and target areas that always worked out well for me,  but those may be far different than those of your investor friends, or those of the previous poster. 

As you say, real estate is variable by area.  It's also variable with the goals and the resources of the buyer. And with looming and inevitable inflation...grabbing an income producer (with minimal debt service) seems a no-brainer to me. 

As with everything else, YMMV. 

[pearlcarbajal]

Wow. You really know a lot about business loans. Thanks for providing us with these pieces of information. It could really help people like me who want to start a new business...

[Uborrow-Upay]

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pearlcarbajal wrote:

Wow. You really know a lot about business loans. Thanks for providing us with these pieces of information. It could really help people like me who want to start a new business...

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Sorry I did not see your post until just this morning. 

Thank you for the compliment, and welcome to the forums!!

Planning is everything in starting a new business.  If you are comfortable with asking specific questions pertaining to your idea for your new business, there are many knowledgeable folks on these boards who are willing to help find solutions and offer valuable insights.

Ask away!

Best of luck with all of your endeavours, pearlcarbajal! 

Uborrow-Upay