1 reply to this topic

[nimblebear]

Wonder when the carnage stops ? How many houses per lender have gone bust ?

http://www.ml-implode.com/

[Shazzam]

I was on a flight this afternoon and began chatting with my neighbor. A retired marine that bought 8 houses in the last year with no money down. Through a broker he purchased brand new homes in developments for 500k and cashed out 100k up front. This has enabled him to pay the mortgage and other costs. His tenants only cover 1/2 of his bills. He assumes real estate prices will always rise and he should be able to make a nice profit in the next year or two. I'm wondering how many people like him exist that will flood the market with homes in the next year or two as they have basically taken loans to pay loans. We shall see how it all plays out. I don't think housing takes off anytime soon.