Be A Contrarian!
August 6th, 2008 categories: For Buyers, The Market
There is an old saying that goes something like this, “The time to buy is when the blood is in the streets!” The blood is not necessarily in the streets in Honolulu, but values are down some, selection is up some and there are opportunities to get more value.
Contrarian is a big word! Essentially when the herd is going one direction you choose to do the opposite. For example, when people were lining up to buy in 2005, the contrarian was selling at record values and profits. Now that there are no lines, for the mid to long-term investor, this is the time to go against the herd.
Silver Portal is an investment bank in San Diego and they see the opportunity. In an article at WSJ.com, it is said that they are raising $150,000,000 to buy foreclosed homes in San Diego with idea of holding them for 5 years. When the market turns they intend to take their profits. The article reads.
“At a time when investors are culling through the wreckage of distressed debt instruments and delinquent subprime mortgages, Silver Portal is venturing into largely uncharted territory. The business of buying and managing foreclosed single-family houses has typically been dominated by mom-and-pop landlords because it is considered too costly and labor-intensive for institutional investors.”
CLICK HERE TO READ THE ENTIRE WSJ ARTICLE.
Note that this is a part of the market that is “typically dominated by mom-and-pop landlords”, so if you want to build your fortune now is the time to learn from Silver Portal!
Today’s picture of Honolulu’s famous Kamehameha School was taken from the bow of the Hawaii Super Ferry while it was moored at the dock.
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