The real estate trend is over. If you've been dreaming of flipping
real estate because you've heard of people making a fortune flipping houses .I
think you are really late because the real estate fad has come and gone.
Like all fads, the Flipping Real Estate Fad lasted only a
short period of time. This is not the first get rich quick fad to happen and it
surely won't be the final. Whether it's flipping real estate, day trading
stocks, breeding ostrich eggs, or trading tulips, our history is replete with
examples of get rich rapid fads that took the world by storm and broken badly
for almost everyone.
As time went by,
the middle class took notice that this flower was so prized by the rich, and
also started collecting the plants. Before long, everybody wanted tulips and
tulip bulbs and the prices started going up. As the prices rose, people started
trading tulip bulbs as if they were a product or a stock. Someone would hear of
a neighbor that had traded a tulip bulb and made a big profit.
At some point,
prices became so ludicrously high that a few smart investors realized that the
tulip fad couldn't continue eternally. These smart money investors sold their complete
stock of tulip bulbs and locked in their huge income.
The bigger demand
for real estate also increased the demand for all real estate services.
Homebuilders, realtors, rehabbers, appraisers, lenders, and everybody else in
any real estate related business prospered. The demand for houses exceeded the
supply and numerous smart investors began to think on houses.
The real estate fad is over. Demand has dried up and the
number of houses on the marketplace is increasing. In many areas, prices have
already started down and this trend will surely increase as time goes by. The
home buyers and investors who used interest-only loans, negative amortization
loans, and adaptable rate loans over the past few years will soon have payments
that are radically higher, when their promotional rates expire. With the lack
of retail buyers, there simply isn't a demand for flipped houses. Millions of
the new investors that started flipping throughout the recent fad will go out
of business, losing a lot of wealth.
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