Any investors out there?

FenderGuy · 06-08-2009, 11:22 AM

With all the craziness of our markets financial and real estate have all the investors retreated?
Anyone else in the market having issues finding investors?

911Freak · 06-08-2009, 11:57 AM

Not so much a difficult time finding them, but rather having them pull the trigger! Right?

I've seen a few make absolute shrewd transactions netting strong returns, then on the other hand I've also have seen them unable to even "dip the toe" on very exclusive offerings?!

So I am finding they fall into two distinct categories
a) frozen with fear and sitting on piles of gov bonds waiting till they get a warm and fuzzy
b) aggressive when presented with an opportunity through a viable source with solid performance track record (not stocks, or start ups, rather large exclusive bulk R/E- commercial & SFR REO's, business ventures etc)

It's been an interesting year! We've seen some extraordinary opportunities, once in a life time type opportunities.... Yet it's not to surprising in a year of unbelievable events some of the most savvy investors have retreated....for the time being...

Good Luck!

FenderGuy · 06-08-2009, 12:30 PM

I think a well informed investor would have no problem pulling the trigger, my channels have seem to dried up and now investors seem in recluse. I have an interneting multi-family project here in Az and i'm going through new channels which are interesting ...

Yes we have had a interesting year to say the least ...

Eric Coffey · 06-08-2009, 01:00 PM

I am working with a few investors, and it would seem to be just the opposite in certain RE market segments here in AZ. For instance, the REO/Distressed market under $400k is relatively booming. A lot of the "smaller" investors are scooping up the sub-$100k properties aggressively as well. Almost all of the turn-key REO properties in desirable areas will have multiple offers, with a large percentage closing above what the banks are asking.

I'd say the people who are being stifled/discouraged the most are the first-time/primary-residence home buyers looking for deals (or even people looking to invest without hard money). They are ready and willing, but are competing with (and frequently losing to) cash-buyer investors. Banks would rather sell a property "as-is" then deal with buyer-financing issues, especially if it needs work and wouldn't be eligible for a certificate of occupancy in its current state (a non-issue for the investor paying cash).

FenderGuy · 06-08-2009, 01:40 PM

Eric

I should have stated $2m to $5m range, yes there is frustration out there for the first time home buyer, I’m done a couple of multiple offers myself for my clients only to find out the property sold anywhere from $10k to $20k over asking price, buyers market or bankers market? Its going to get more interesting when the 3rd wave of foreclosures comes from the prime market that is now turning into a sub-prime market.

Eric Coffey · 06-08-2009, 02:10 PM

Quote:

Originally Posted by FenderGuy

Eric

I should have stated $2m to $5m range, yes there is frustration out there for the first time home buyer, I’m done a couple of multiple offers myself for my clients only to find out the property sold anywhere from $10k to $20k over asking price, buyers market or bankers market? Its going to get more interesting when the 3rd wave of foreclosures comes from the prime market that is now turning into a sub-prime market.

Yeah, I hear ya! There are still plenty of investors out there buying bulk REO @ about $.65 on the dollar. A lot of them deal with the banks and asset managers directly though. Even tying to represent the banks REO holdings as an agent is a tough nut to crack now.

Bill Douglas · 06-08-2009, 02:48 PM

I think the smart money is wisely doing nothing.

HardDrive · 06-08-2009, 05:47 PM

Were currently sitting things out. Our long term hold stuff is.....holding. Dumping money into our house mostly. Not an 'investment', really, just a different place to park our money (that will make our kitchen less horrific to boot.) We have kept up our IRA/401k contributions.

K9Torro · 06-08-2009, 05:56 PM

I have began to invest in gold instead of stocks/bonds, in the current market it makes me feel better to hold something in my hand and then drop it in the box at the bank.

T

911Freak · 06-08-2009, 07:06 PM

Quote:

Originally Posted by Eric Coffey

Yeah, I hear ya! There are still plenty of investors out there buying bulk REO @ about $.65 on the dollar. A lot of them deal with the banks and asset managers directly though. Even tying to represent the banks REO holdings as an agent is a tough nut to crack now.

Yep, were actually buying them at $.20-$.30 in large bulk portfolios (3-10MM) and selling them through several disposition channels at $.55-$.60. Yes, working directly with the Banks asset managers. Some of our investors are foreign and/or seasoned R/E groups. Interestingly enough many of these groups end up selling these assets through the national auction houses at.......$.65

Another cool disposition channel through another biz model we have, I'll spare everyone the details but when we're running a pool through the auction we see many FTHB's buying their first home for $30k

Great to see the people who were smart enough not to be lured into the 100+% ltv sub-prime loans buying their homes for cash!

We've even seen some of them come back and buy several more properties with their self directed 401k!

R/E.... still a viable instrument if you know how to use it!

YMMV

s_morrison57 · 06-08-2009, 08:25 PM

This is the first time in my working life where gold has not been the indicator of future work. Over 33 years when gold was high there was lots of work and as it dropped so did the number of jobs available, now gold is high and work is slower. I heard that the inside juice is that another finacial instatution is ready to fall and that when it happens it will stop the little bit of a recouvery that we have seen over the last couple of months. Maybe the money guys are holding off waiting for this to happen

911Freak · 06-08-2009, 08:28 PM

Quote:

Originally Posted by s_morrison57

I heard that the inside juice is that another financial institution is ready to fall and that when it happens it will stop the little bit of a recovery that we have seen over the last couple of months. Maybe the money guys are holding off waiting for this to happen

Citi maybe?

It certainly wouldn't be surprising

2.70Racer · 09:32 PM

I just made a killing 6 weeks ago buying Bank of America and Citi Group.
B of A @ $7 and C @ $3. This was just before earnings report time.
Wells Fargo reported good earnings first.
BAC & C both moved up 40% in a couple days in anticipation of good earnings reports.
With a 20K profit I sold. Owned the stocks for 2 weeks.
There are some once in a lifetime opportunities today in the market.
Oil stocks look ready to fly with the barrel cost at $70 and still moving up.
Some of the beat down solid companies, like Caterpiller and 3M will double and triple in the next year.
You can beotch next year or buy today. The market is ripe.
The banks will be much higher this time next year, even with a credit card crisis on the horizon.