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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: chemist61 who wrote (10893)	6/1/2003 10:54:27 PM
From: put2rich	Read Replies (1) \| Respond to of 306849

<<Or people put money down which they got as a profit of the real estate they just sold. At least that's my impression ... this kinda resembles the bigger fool game, just turnover rate is slower than the one of dot.coms (or tulips)>> I spend quite a time at a small ethnic real estate office. Well, they ask most of their clients to refi and buy more real estate with the cash out. They figure out that they can rent to Chapter 8 Housing tenants (safe and the rent up to 1700, tenants pay only 300, tax payers pay the rest). Thus in 30 years their houses are free besides they think the average house in Southbay will go to 1M in 10 years! Well, as you know they all have "manager" title in loan application. Easy to get qualified by a telephone check!!! I don't know what happen if house prices dip 20-30% in a couple of years!!!