Thursday, April 26, 2012

The REO Specialists

Readers of this blog can pretty much figure out that I focus most of my efforts on the stock markets. But, that doesn't mean I've ignored all the other markets, especially the real estate market. I've been patiently watching and waiting for real estate to bottom-out for years. I've also previously shared my views freely and openly on this sector too. But again, no one would listen.

I'm not sure why people chose not to even investigate my claims, but in mid-2006, I was constantly warning anyone who would listen to consider just how crazy the real estate market had become, and that there was something seriously wrong with it.

But instead, everyone I spoke with chose to listen to the criminals in the real estate and mortgage industry, and buy outrageously-priced homes and land during the bubble. Absolutely no one gave me any credibility and dismissed my warnings as the musings of a lunatic. So, while I'm still upset that the perpetrators of the greatest crime in America got off scot-free, I think most people can understand why I don't feel much sympathy for underwater homeowners.

Fortunately for me, I believed in myself and chose to wait to buy a home until I thought the real estate market reached bottom. Just recently, in August 2011, I bought a fully-renovated REO foreclosure to live in for pennies on the dollar. It was so reasonably-priced that I was able to pay cash for it and now live in my home debt-free. Although I bought it as a place to live instead of an investment, in the short time that I've lived here, it's already appreciated twenty-percent in value.

But, I only mention this story because [at least where I live] real estate has already reached a market bottom. Where once REO foreclosures predominated home sales, they're now falling by the wayside. The smart investors who capitalized on these home bargains in the past year or two have waited the storm out, and are now beginning to realize the fruits of their patience.

But, don't just take my word for it. Listen to the REO specialists yourself -


  1. A new development is catching home buyers off guard as the spring sales season gets under way: Bidding wars are back.

    Stunned Home Buyers Find the Bidding Wars Are Back

  2. Josh Birnbaum, the former Goldman Sachs Group trader instrumental in the bank’s bet against the U.S subprime mortgage market in 2007, posted a 30 percent gain this year in his hedge fund, according to a person familiar with the matter.

    I gotta laugh about this news report. When I do it, openly to all as I do it, it's not newsworthy. But, when someone considered an "expert" by the financial media does it secretly, it's considered genius.

    Source: Ex-Goldman Mortgage Trader Said to Post 30% Fund Gain