A Thaw As The Weather Turns Colder

I feel a thaw.  No. You wouldn’t know it from the temperature outside and the breaking grass under my feet.  But I’ve made three offers in the last week.  (Although I am still waiting to get one together.)  And great news!  One of the bank foreclosures that has been frozen has rumblings of closing on or about December 15.

Now, I won’t believe it till I am there watching the buyers sign.  But it is movement, never-the-less.

*** *** *** ***

Just a note about this real estate market.  Everyone has it rough.  I feel fortunate.  While my income from real estate sales and investments has dropped about 20% from 3 years ago I have made up that income with another business my wife and I own.  Portraits Today Studios in Olathe, Kansas had a record month in November and is on pace for our best December, as well.

But I look around and I’m a little saddened.  It’s renewal time for real estate agents across the country.   I’m expecting a blood bath.  $450 to $550 for dues and fees in December is pretty tough on a lot of under-performing agents.  Yes, it’s a purge that needed to take place.  But it doesn’t make it any easier when you look across the landscape and see how hard it’s hit people you know and have built relationships with.

 

5 Comments

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5 responses to “A Thaw As The Weather Turns Colder

  1. Another Investor

    Real estate is a cyclical business. I have seen several agent “bloodbaths” over the last 30 plus years. If your income only dropped 20 percent, then you are good at what you do and you spent the lean times working hard and smart. Here’s hoping 2011 will be the year of the thaw!

  2. AI – I’ve only held my license since 2002 so this is the first such cycle that I’ve been actively involved in. Fortunately, I’m a little ADD so I can’t just do one thing. My mind never shuts down. 🙂

    As always, thanks for reading.

  3. Charles Chung

    I am an Australian investor interested in real estate markets in USA. The AUD dollar is very strong against USD at the moment and because of GFC I found the house prices here very reasonable.

    I’ve actually already bought a property in Kansas City for US$60000 via a property agent based in Melbourne, Australia, which they claimed to be specialized in USA property investing. But to settle the deal I have to pay them a flat fee and plus the closing costs, I end up paying around US$67000.
    They showed me that the property is now rented to a Section-8 family for a monthly $841 rent. So it gives me 15% gross return and 10% return after all expenses.

    The return is exceptional to an Australian investor as property here only gives 2-5% gross return. But when I do my own research over the area, the price range is so large (from $15k to $100k) that I can’t draw any conclusions to it. And then I searched the public record and found the previous owner only paid $38500 for the same property 2 months ago, so it seems that I got a lemon instead?

  4. Charles Chung

    PS. my property is located in 64134, from your article it is not in the murder factory area, but it seems close to that area…

  5. Charles,
    Sorry for the delay. Time off and running behind. 🙂

    You must be very careful. I know of stories of Aussies coming in and regretting it. It’s all the buzz right now.

    Feel free to email me the details including the address and I can possibly help. Not as an agent, but as a consultant. Email me and we can discuss whether or not I can help. listwithchris(at)kw.com

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