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Understanding the current real estate market and changing strategies to maximize profitability.
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Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Market Observations:Flex & Thrive In This Market
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
What Happened?From October 2007
- October 2009
Huge Economic SlideReal Estate lost 50% of Value*
Unemployment DoubledForeclosures TripledPoliticians Scrambled,
Trying to learn lessons from FDR’s New Deal
The Graph looked Something like this:
* some areas more, some less
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
It Finally Leveled Out
20-20 Hindsight shows us that October - December of 2009 was the bottom.
The questions became:
Where to from here?
How fast will the market recover?
Where From Here?
?
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
It’s Unanimous!
Everyone Voted:
The President would like a rapid recovery.
The Investors would like a rapid recovery
Buyers & Sellers would like a rapid recovery
The Banks would like a rapid recovery
Where From Here?
?
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Like This Would Be Just Fine
So Everyone set off to make it so.
Congress threw in $8000 of stimulants.
The President cheered
Buyers offered over full price
No More Bargain Basement Selling
If we all act like it’s true It will be true ... Wont it??
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Then Reality Set InInstead of a VEE
With a steep Down and anEqually steep Back Up.
Reality is more like a Teacher’s Check Mark
Dont you just hate it when Reality doesn’t cooperate
with what we’ve decided?
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Correction To RealitySome prices went back up too fast
Buyers and Sellers and Banks and InvestorsActed like the recovery was well under way and vigorous.
So now we have what looks like a double dip
But we’re just recovering from being over stimulated with
Optimism and Tax Credits
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Learn From History?To the extent that this time is like
Recovery from the Great Depression (and the comparison is far from perfect)
we might observe and get some help in our guesses about the future.
Q. By 1937, (8 years into the New Deal) how far were we in our Economic Recovery?
A. Some progress but not very much. There was talk of the double dip and FDR’s financial
architect wrote in 1937, “We have failed”
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Learn From History?Q. When did GNP (non-military)
return to 1928 levels?
A. 1953
This is not then ... But regardless of our desire for a quick fix, the reality is more like a long slow
climb with some small hills & valleys
Maybe like this.......
(Prognosticating Is A Fools Game)
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Bottom Line: Stay FlexibleHave Multiple Strategies
GreenEarthEquities made money in this time
We can surely do even better in this slow recovery
These bumps can require you to change strategies
Saving
The Planet
One House
At A TimeG r e e n E a r t h E q u i t i e s . C o m © 2010
Multiple Strategies & Readiness To Change
1. Retail Flip Basic sale to first time FHA qualified buyer
2. Lease Option: Opens up the pool of good people with
poor credit.
3. Refinance & Rent: Allows Investor to recoup cash and
continue, buy the next project & stay in the game.
