What's Going On Out There?

What's Going On Out There?

With the decline of real estate prices and concern about the global economy, there is a lot of speculation regarding the timeline of this recession. In conversations with brokers, investors, and developers throughout the country, the topic often turns to one common question: whatís going on out there? Iíve heard what the experts say, and certainly these people are more qualified than me to make statements regarding the indicators on the global and national economy. However, I do have my finger on the pulse of the hard money market in regional pockets throughout the USA, and here are some thoughts from someone down in the trenches:

It seems like a lot of people are looking ahead to better times in 2010, and viewing 2009 as a time to position themselves to take advantage of the downturned market.

A considerable portion of our loan inquiries are for the purchase of discounted properties. There are always requests to purchase distressed properties, but in this market there are properties available that require little if any work. The goal here is secure these properties as rentals and refinance through conventional means or make a quick flip. The strategy here is to purchase these properties at the somewhere near the bottom of the price curve and make the best buy possible. Many would argue that we havenít quite reached the bottom, but this increased activity might suggest that weíre getting close.

I also have the opportunity to talk to a variety of contractors. Just as my phone seems to be ringing more frequently, a number of these contractors have reported increased activity. This seems to be another indicator that we might be reaching the bottom. This increased activity suggests that these investment opportunities have become ripe for the picking.

To answer that initial question: the hard money wheels are turning. There seems to be an increased volume of loan inquires over the last month and it looks like investors are getting ready to pick up some of this huge inventory of discounted property. The timeline is a matter of speculation, but with this increased activity, home sales could be on the rise. Once the home inventory decreases, prices could stabilize and the market might even rebound. Maybe this is wishful thinking, but either way there is opportunity out there. If you would like to discuss private money loans further or run a particular scenario by us, contact Kris via phone at 503-319-7294, or e-mail him at gillmore@privatemoneysource.com. Otherwise, if you would like to get a better feel for our company and the types of programs we do, please browse our web site at http://www.privatemoneysource.com.

Kris Gillmore
Loan Coordinator
Fairfield Financial Services, Inc