Note & Real Estate Prices Are Falling


Hi everyone. This is Paul
Cooper with Totes Of Notes. And on the fourth day of Christmas
Totes Of Notes gave to me prices are a fallin” on this a brief little video
here, we’re going to talk about pricing, how prices should be falling across the
U S and so just need to have a little patience to make sure that you’re getting
the good price for the asset you’re acquiring. So this is the fourth quarter and we’re
late in the fourth quarter of this year. So banks, asset managers and other people that are
selling notes are really in it’s crunch time for them. They need to sell their non-performers
and get rid of this stuff to make their books look good for the end of the year. Now this will carry on into the first
quarter for the first month or two. But really this is, this
is the busy time of year. This is the time when people in the note
business aren’t really going to have much time off and I can be able to
spend much time with their families till about after Christmas. So if you have
some money in your powder is dry, you can potentially snag up some really
good deals here in the last couple of weeks of December because this is going
to be the time where if you have money you can close because banks are
going to be pretty desperate. So make sure whatever price
you’re originally going to
pay that you reduce that a little bit cause prices
should be falling and as a
whole the economy starting to slow down and cool. And as that happens then prices should
also fall because there’s going to be a lot more assets on the market. And
we should see that a lot next year. This year it’s been a lot of this, a lot of waiting and
especially the prior year, a lot of just waiting for Christmas
to come because prices were so high, assets were so limited, they were garbage and unfortunately people
were still paying the price form and it just did not make sense.
There was no meat on the bones. And so you had all these people that
they’re lovingly referred to as REO refugees that thought that 80% on the
dollar for nonperforming asset was good cause they’re going to get the
property back and they got ripped off. And unfortunately a lot of them and a lot
of note newbies had been shaken out in the really last year, year and
a half. And it’s really, um, it was really tight for awhile. I mean,
people were having to do other things. Um, I had to focus on
performing notes for awhile. That was really common with some other
note investors just because that’s what was available. If you’re going to
pay 70 plus percent for an asset, the might as well get a performing one
that has a track record of actually paying as opposed to something that was
just going to be a shot in the dark. So it’s, it’s been a tough year until about the
end of summer and August that it started loosening up in the past a few months, it’s really loosened up and it should
carry forward to the next year. And again, it shouldn’t just be notes. We’re
talking specifically about notes here, but you should start to see it happen.
Just about everywhere else as well. There are some are, there are a few hot markets across
the U S that are going to stay good, but the economy has been slowing and
it could be really interesting to see what’s going to happen next year
with the election on what happens. Next quarter we’re going to lose
a lot of these seasonal jobs. So the economy is going to cool then
and I think pricing’s really gonna come down in the next year, year and a half
for everything real estate related. So again, I know that
doesn’t help you too, too much right now because you’re probably
like, Hey, I’m sitting on this money. I need to generate something. I don’t
want to have it just sitting there. Well you may need to have it sit there
for a while because you probably don’t want to invest it in something risky like
the stock market when it’s an all time highs, but yet keep it
liquid if you can. That way. When good deals do come along, you
can close and have a, you know, hopefully a good Christmas and a good
new year, and that’s it for this video. I just wanted to reach out and let you
all know for the fourth day of Christmas, prices should be falling. Don’t get suckered in and buy something
at a higher price than you need to. If you have to wait, then wait, and
that’s going to be it for today. If you have any questions, don’t hesitate to reach out to me and
we’ll have another video for you tomorrow for the fifth day of Christmas. Take care.

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