Real estate might be bottoming out

vultures
Vulture funds are buying SoCal land at 15 cents on the dollar, planning to hold 3-5 years, then sell at a profit.

A savvy real estate investor friend in L.A., after years of not finding anything to buy because prices were so high, is just now starting to maybe buy a few houses in the San Fernando Valley for, say, $390,000 that were $650,000 eighteen months ago. (These homes are bank-owned or foreclosures and there are so many of them they are driving all prices down.)

He is also a buy-and-hold investor with a multi-year time frame. When real estate finally bottoms out, it will be because people like him started buying. When you think about it, a vulture fund is about the same as a long-term value investor – buying cheap, holding for years, then selling for a gain.

3 Comments

  1. Found a very good, very thorough, analysis yesterday: The Bottom in Housing.

  2. does anyone knows if there is any other information about this subject in other languages?

  3. November of 2008 will be the beginning of the upcycle.

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