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  • www.realtystories.com

    Hello all,

    An interesting web site. This guy is collecting stories about the real estate industry. From his Facebook profile

    "I'm trying to make a collection of some of the best Real Estate stories ever told. If you go to my web site, RealtyStories dot com, you can post a story and maybe win some cash as well. There's no "tricks" or "strings", I'm just collecting stories."

    http://www.realtystories.com/

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com

  • #2
    Hi Marc

    This story came from one of the links you posted the other day, I joined the mailing list because I'm a mailing list junky and this was thins mornings little jem.

    The good news keeps coming for mortgage rates: they hit a 4 year low at 5.47% and then dropped further to 5.33% yesterday, with no points or origination fees. The new rates have encouraged fence sitters to jump off and begin making purchases, and loan officers have reported a bounce in mortgage applications as well.

    Bank of America announced late yesterday that it would be giving pink slips to over 35,000 employees as it finalizes its merger with Merrill Lynch. The reduction will account for approximately 10% of the combined companies' total employee base. The announcement comes on the heels of a similar one from Citigroup, which announced last month that it would eliminate 52,000 jobs, or about 15% of its total workforce.

    And in a sign of the greedy times on Wall Street, get this: the former Chairman of the Nadaq Stock Market was arrested for what investigators have described as a "stunning fraud that appears to be of epic proportions." The fraud is estimated to be a "50 billion Ponzi scheme," where the assets that Mr. Madoff would tell his investors about actually didn't even exist. I wonder whether Madoff will ask the Treasury for a bailout? Think about it ... banks lied about the value of their mortgage bank securities and induced people into loans they weren't suited for, so why given them money and not Madoff? Ok, I'm just kidding but you get the point!

    And in the latest on the Big 3 Bailout, it appears that Congress hit a snag and can't come to agreement ... so the Bush Administration is reversing course and now suggests that the money might be able to come from the $700 billion TARP. "Under normal economic conditions we would prefer that markets determine the ultimate state of private firms," White House press secretary Dana Perino stated. "However, given the current weakened state of the US economy, we will consider other options if necessary, including use of the TARP program to prevent a collapse of troubled auto makers."

    Now, on to our topic of the day: Recession, Depression, Inflation, Deflation...What's it all About and How Does it Impact Real Estate?

    Ronald Regan once stated "A recession is when a neighbor loses his job. A depression is when you lose yours. If we were to apply the same logic to the real estate market, then the nation has been in the midst of a recession for some time as people have been steadily losing (or walking away from) their homes.

    In fact, there is a great deal of recent debate on whether the nation is already in a recession and heading for a depression or whether the easy money economics of the Federal Reserve will prevent a depression at the risk of creating further inflation...or perhaps world-wide deleveraging will actually result in massive deflation instead. Let's take a few moments to examine real estate in each of the above scenarios...

    Recession. Unlike employment figures (or stocks), real estate doesn't act the same as jobs during a recession. When a worker loses a job the position may be completely eliminated (or the stock completely wiped out). When someone loses a house it reverts back to the prior owner, heirs, bank or local government. Short sale buyers realize the inherent value in the home or property and act like a middle man to obtain a percentage of that value for themselves in the form of resale, rentals or retained equity.

    Depression. During a depression the entire economy may slow down so much that little to nothing is being produced. Job loss often runs rampant as prices drop below the cost of production. Unemployment drives labor costs down - creating a downward spiral as unemployed workers are unable to afford more than the basic necessities. Again, jobs and stocks alike may all but disappear during a depression but a house remains standing. Housing is a basic necessity and tends to take top priority even during the most critical economic crisis.

    Inflation. Inflation tends to drive the price of all commodities and assets higher as the replacement cost rises; real estate is no exception. With the Federal Reserve practically printing money out of thin air, the ability to own or control physical assets with a fixed rate of interest is often the best way to preserve wealth during periods of escalating inflation. On the other hand, the increased cost of production and labor often leads to more work for less pay among employees.

    Deflation. Falling assets prices and world-wide deleveraging tend to drive down the price of commodities and assets including real estate. However, short sale buyers are often purchasing property at or near the fully depreciated value. Even those who experience further price drops still have other options available to bridge the gap until the market recovers; rentals, owner financing and factoring may each help raise needed capital or reduce individual debt repayments until the property has regained full value.

    More on Monday!


    See you at the top!


    Chris McLaughlin

    Comment


    • #3
      Originally posted by Marc View Post
      Hello all,

      An interesting web site. This guy is collecting stories about the real estate industry. From his Facebook profile

      "I'm trying to make a collection of some of the best Real Estate stories ever told. If you go to my web site, RealtyStories dot com, you can post a story and maybe win some cash as well. There's no "tricks" or "strings", I'm just collecting stories."

      http://www.realtystories.com/

      Cheers

      Marc
      Someone should hit him up about using something other than godaddies website tonight product.......yuck.

      Comment


      • #4
        PS. I bet he is going to turn the stories into a book. It was an idea I had a year or so ago on another subject which didn't actually take off but the site looks like it is designed to provide him with some good content on Real Estate.

        Comment


        • #5
          Hello Terry,

          Thanks for the contribution to this thread - its great!

          Cheers

          Marc
          Free business resources - www.BusinessBlogsHub.com

          Comment


          • #6
            Interesting that he actually only wants stories from Real Estate agents.

            It should be an interesting read when it comes out. I wonder if he wants stories from Oz/Kiwi REAs.

            I bet Makaela would have a story or two tucked away in her 15 years of being an agent.

            hmmmmmmmmmmmm.......

            Comment

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