I couldn’t believe the bank countered my offer…
I just offered to buy a bank-owned property for 90% less than it was professionally appraised for in 2009.
The bank countered my offer within a day… still at a 90% discount to that appraisal.
The bank CLEARLY wants this property off its books… It’s been stuck with it for a few years, and it’s finally crying “uncle.”
[ad#Google Adsense 336×280-IA]It’s had enough pain and it is finally willing to accept any offer that comes along…
Granted, we’re talking about raw land in northern Florida, something nobody wants to buy right now…
But at this moment, I think I can hardly go wrong…
I believe this is the “V-bottom” price, like the Nasdaq’s V-bottom in late 2002.
Take at the Nasdaq’s bubble, bust, and flatline below, and notice the V-bottom in red…
The Nasdaq did nothing for much of the decade in the 2000s, hovering around the 2000 level (in green) for many years after the bubble burst. But buying during the V-bottom would have still made you some REAL money.
This is not an isolated event… We saw the same type of V-bottom in the stock market in March 2009 – before stocks doubled in price.
The V-bottom moment is the moment of maximum panic for sellers. And at the moment of maximum panic in real estate, you can find extraordinary prices…
Don’t get me wrong… I’m not buying expecting that real estate will soar to its old peak. I just believe the bank is selling at a point of maximum panic… so I can get an incredible deal. At this point of maximum panic, prices are often NOT rational.
As another example, a friend over the weekend shared a similar story to mine…
“Our church is growing, and we recently bought 40 acres of land for our NEW church for something like $600,000. During the boom in 2006, the previous buyer paid around $3.5 million for that land.”
My friend’s church bought that land for about an 80% discount to that previous buyer’s price! They’re buying in the V-bottom too.
Sellers in general – and banks in particular – are crying “uncle” now. They want to get this stuff off their books.
And it’s not just raw land… The banks (and the government) are desperate to unload the houses on their books, too. In many cases, they’ve turned the sales over to “quick sale” teams that are dropping the prices every two weeks until an offer comes in. (You can read more on that here.)
You are in the perfect position…
The banks want to unload this stuff… Meanwhile, we have record-low mortgage rates… And record-high “affordability” (meaning that more households can afford the median home price than at any time in history).
Around here (in northern Florida), houses are selling below replacement cost – and you get the lot for free. It’s true. And they’re practically giving raw land away!
The V-bottom prices will go away soon… Over the last 12 months, existing home prices are actually UP 2% nationwide. Real estate is starting to come back.
I believe you can get the deal of a lifetime, right now, if you’re simply willing to go find it… but the window of great opportunities – V-bottom opportunities – is closing fast.
So get out there and get the right property for you now…
Good investing
— Steve
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Souce: Daily Wealth