Today we’re going to talk about current real estate opportunities.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Every market has an opportunity for someone. That doesn’t mean everyone has every opportunity in all markets, but it does mean that when there’s a shift like what we’re seeing with a low supply in residential, you’ve got to take a look at it and see how it applies to you.
Bob Nelson: Well, and it’s interesting because there are some that have learned that moving with the herd gives you an average return, and sometimes can be extremely dangerous if the herd doesn’t understand what they’re doing. If they’re in full stampede headed over a cliff, don’t join the herd.
The ones that don’t wish to act in that way are contrarians. They will buy when everybody is looking to sell. They will sell when everybody is looking to buy. They’ll sell at the highest possible price. They’ll buy at the lowest possible price, and they act in that particular manner. So even a train wreck is an opportunity for someone.
Marcia Edwards: Wow. An ambulance chaser we got here.
Bob Nelson: Or I guess the gentleman’s name is Warren Buffett, that’s his contrary position.
Marcia Edwards: That’s right. Exactly. And what Warren Buffett does that I don’t do as well as he does, a lot of things, but among those is planning and having a strategy and having the foresight and understanding what a good thing is before it’s in front of him and before the rest of the market understands it. So that takes a lot of research. It takes standing next to expert and people that you trust in each industry. We’re talking real estate, so standing next to Bob Nelson for example.
Bob Nelson: Well there you go. So again, opportunity, you need to understand what is your game plan? Are you a short term trader where you look to buy opportunities very, very low, turn right around and flip them back out at a profit? Most likely you can’t. You’ll become a dealer, but you’ll also be making a lot of money. Dealers can’t do tax deferred exchanges. Dealers cannot have installment sales, but they are making profit immediately. It’s just they’re paying tax at the highest rate.
Marcia Edwards: So right now in residential real estate, there’s some no-brainers that they are a benefit and you can’t see it any other way. That is, if you’re a seller of a first time buyer type price point home 350 or below, that’s going to be a win for you. If you had to sell now, it’d be a great time to do it. Interest rates, a no-brainer. It’s going to be a good idea for a lot of people to take a look at that right now.
Bob Nelson: It is absolutely amazing. The interest rates we’re seeing are lower than I’ve seen in 51 years.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.