The Flip Board

2008 is now history.  2009 promises to bring us all new challenges and opportunities for excitement.

From all of us here at The Flip Board…

For the uninitiated, a real estate broker is one (or a firm) who acts as mediator between sellers and buyers of real estate.  They also market and put together deals.  Hmm… If you are a good RE Broker, then chances are you are very affleunt and handle very exclusive accounts.

Or, you are a newbie who is trying to break into the real estate market by not actually purchasing any real estate.

It sounds to me that brokers do nothing outside of what an experienced RE investor can do on their own. So, why do we have brokers? When real estate companies wish to capitalize on fees and “add-ons”, they come up with things like brokerage, handling services and negotiation representation. All things that you will be charged for.  And all things you can do yourself for nothing.

In this particular real estate market, we have a large supply and a lower demand, which is causing prices to drop. This also means brokers are out of work.  Some brokers are trying to move devalued real estate. And some are trying to convince buyers to buy.  Bottom line is without buyers and sellers and enough cash to support both, you have no real estate brokerage business.

Save some money and handle real estate yourself. Keep as many transactions in-house as possible. This includes locating properties, negotiating deals and representing yourself and/or company.

Let the brokers move their businesses to insurance.

-Richard - www.TheFlipBoard.com

Before we get to current updates to the housing market in Atlanta, GA, I would like to remind our investors that overall market economics respond to market maker’s skepticism, paranoia and superstitions.  Good, bad or otherwise, it is the truth. First of all, it is an election year for the Presidency. Second, the GSEs and investment banks scandal has not been resolved yet. Next, manufacturing in the United States is terribly low with unemployment ticking up, compared to the start of the year.  And our beloved government, who created this problem, is passing a new bill that will allocate hundreds of billions of dollars of taxpayer money to procure bad loans. This action will save large firms, like Fannie Mae and Freddie Mac, and increase the national debt for all Americans.   (Which is sad, since we are artificially inflating markets instead of letting them do what they are supposed to do: Correct Themselves!)

Could this be the bottom we are waiting for?  Or is this the beginning of worthless American dollars, ridiculous inflation and terribly cheap housing?   We do not know. However, if we follow what the ultra-successful are doing, we see it is time for action.  (Check out what Warren Buffet is doing.  Also, look at the deals that Donald Trump is crafting now during this “housing slump”.)

Now back to our story in Atlanta:

ATLANTA - More than $153 million in newly earmarked federal funds will extend a lifeline to Georgia regions hit hardest by the home foreclosure crisis, enabling leaders from Atlanta to Savannah to acquire and redevelop foreclosed properties at risk of being abandoned.

Read more »

“The reality is that it used to be relatively easy to predict where mortgage rates were going to go,” says Mike Larson, real estate analyst for Money & Markets, a business website.

Read more »