From the Real Estate Investment Center

“‘It would be difficult to characterize the position of home builders as other than in a hard landing,” says Robert Toll, chief executive of luxury home builder Toll Brothers Inc., which reported in August 2006 that net income fell 19% in the third quarter ended July 31.

“In his 40 hears as a home builder, Mr Toll says, he has never seen a slump unfold like the current one.  ’I've seen a downturn in housing without a downturn in employment or…some macroeconomic nasty condition that took housing down along with other elements of the economy,’ he says. ‘This time, you’ve got low unemployment, you’ve got job creation, you’ve got a stable stock market, and relatively low interest rates.’ ”

It seems a dose of reality is needed for Robert Toll, as well. The macroeconomic connection missed by Robert Toll is that housing was and is in a bubble and bubbles pop. As for “low unemployment and job creation,” it should now be obvious to everyone that the reason they were low was because an overheated housing bubble was creating jobs until the bubble popped. The reason you have not seen a downturn like this before is because you have not seen a national housing bubble like this before.

Discount Real Estate Hedge
As both home builders and home owners increasingly feel the pinch of the housing slump, I encourage investors to hedge themselves…  

Be smart about real estate investing by following the 4-step recipe:

1. Buy discount real estate property - foreclosures, pre-foreclosures, tax sales, real estate auctions, real estate repos and other distressed-seller opportunities.
2. Consider commercial real estate investments - apartment buildings, retail centers, storage unit facilities, office buildings.  I have provided you with an awesome commercial loan resource at my website to buy these properties with as little as 10% down (even 5% down on certain property types).
3. Buy in Bargainville - the next hot emerging real estate markets across the country.  
4. Get a mentor.  Learn from real estate investing experts who have already done this successfully.  There are a number of them featured in the Real Estate Investing Topics Section of my website.

Technorati tags: commercial mortgage loan, commercial real estate, real estate investing, foreclosures, , ,

 

Related posts:

1. Real Estate Investing Update: Ford pick-up sales fall. Blame the housing slump! Huh? “The Biggest Slump in US Housing in the Last 53 years”, is the viewpoint of Angelo Mozilo, the CEO of Countrywide.  ”I’ve never seen a soft-landing in 53 years,...
2. Real Estate Investing Update: “No Money Down Disaster” So read a headline in a recent issue of Barron’s.  I have been reading and worrying about this for months, namely, that ARMs are on the brink of ruining...
3. Real Estate Investing Update: “Down Under” is Getting Down Right Ugly The Sydney Morning Herald recently reported Aussie home sellers are experiencing falling real estate prices and thus, “negative equity” is increasing. “Given it has been 16 years since the...
4. Real Estate Investing Update: Broome County, NY Identifies Itself as a Bargaintown From the Real Estate Investment CenterWhile housing prices take a dump in Bubbleville areas across the country, there are Bargaintowns enjoying increasing real estate values.  One such Bargaintown appears...
5. Real Estate Investing Update: Property Home Owners - Are You One of the 92%? Many property owners should be shocked to read that California homes are beyond the means of most California residents.  In fact, it's so bad in Orange County, California, that...

Related posts brought to you by Yet Another Related Posts Plugin.