Wednesday, March 2, 2011

"Those Who Fail to Study History are Doomed to Repeat it"

I can say that I personally got caught up in making purchases and selling for a profit when real estate values were sky rocketing in South Florida. I also am stuck with some negative performing rental properties.


The 1920’s real estate boom and doom especially in South Florida can be compared to the 2000’s – Massive amounts of people waiting in lines, filling hotels, traveling major distances to the sunshine state in order to purchase preconstruction real estate betting on a profit. The 2000’s was a nationwide disaster, however, the state of Florida has been one of the fastest in growth, appreciating market and also the fastest falling.


So what happened in 2000?


There was a lot of access to money. Individuals were getting loans that they should not have traditionally been able to get. No documentation & 100% financing allowed the average pizza delivery guy to “state his income” and make a real estate purchase with no money.

The level of greed and quick money skyrocketed not just by the home buyer but also government and Wall street. Check out the “House of Cards” video by CNBC: http://www.cnbc.com/id/28892719/ Very, very interested…


So now what? It is a matter of learning and rebuilding. I speak to some people who initially contact us about short sales and I hear “get me out of this house, I will never purchase real estate again.” This is unfortunate and it was bad timing for many. However, there is time to start over and rebuild. Learning from the past and not dwelling on it will ensure a brighter future.


Consult your local real estate professional on rebuilding your future in real estate. It will and has proven to be an equity / asset builder over the long term. There are steps you can take if you are in a bad position with your current real estate portfolio such as a short sale. Being proactive now will help a quicker recovery for your future.


We are short sale servicing all of Lee, Collier and Charlotte Counties… That is Punta Gorda, North Fort Myers, Pine Island, Cape Coral, Fort Myers, Sanibel Island, Captiva Island, Lehigh Acres, Fort Myers Beach, Estero, Bonita Springs, Naples, Marco…

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