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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Sharp_End_Of_Drill who wrote (16853)	8/5/2002 12:06:12 PM
From: Von	Respond to of 36161

Sharp, I have a young man who works for me that approached me with the idea a couple of years ago. He had attended many auctions and bought and sold a couple of houses on his own. The problem was he had to buy one fix it up and sell it before he had the cash to buy another. The auctions we buy at are cash on the spot. This leaves out a lot of the market unless they have made a loan and have the money in their account. He only buys a small percentage of the auctions he attends. He is very, very selective. The time span of purchasing the home until it is back on the market is very short. Yes, I feel the real estate market will tumble. The question is when and over what time frame. There is a very wide range on the sell side and still make a profit. I might be a little more concerned if we were starting this now. But we are already in it and have been for sometime. I also think the success we have had thus far will provide even more capital for future purchases. Many stock traders including myself think the market will go lower. But they still trade some stocks within there trading ranges and hope to be nimble enough to get out when things go against them. When the housing market tumbles (and it will) I think I can sell the remainder before they drop below our cost. And yes I do believe cash is king. It always has been. It is not different this time. Traders believe cash is king. Why trade long or short if you do not think you will make more cash. Paper profits are worthless. Until you sell your still sitting at the card table. Some of the southwest metro-towns were supported up by oil companies who were the big employers. The last oil bust hurt them. Then Tech companies came in retrained the large unemployed labor force. And then the Tech bust has now created a money crunch again in the southwest.