5 states drowning in underwater mortgages

great article-thanks Bill.

can't believe that over 60% of properties in Nevada are underwater-wow!

Great article.

My brother's in GA, he'll be interested in the numbers too.

So what does that mean, exactly, for me? (You know, since I live here in NV and all that...) Does it mean I have more selections? or that the banks are going to own more of the properties I want to pursue, and thus make it harder?
Or does it give me a leverage point against those same banks?

I mean, an article I read recently said that California had 3 YEARS worth of "Phantom Inventory" and Nevada had NINE Years worth... What does all this mean for me?

here is what I think it means for you. It means that the housing market in your state (not necessarily everywhere) is a pretty tough market to get consistent organic growth in the pricing arena. You will be able to get a great purchase, based upon historically numbers, but not based upon reality numbers. For a long time to come, there will always be an overhang of foreclosures and short sales which in turn will keep the comparatives low. For example, you can buy a great house for a great price in Las Vegas but you may not be able to remarket it for a proper return on investment as there isn't a large pool of end buyers that can qualify to buy it. There are ways to compensate for this by simply buying something SOOOOOO low that you can put marginal improvements into it and flip it to an investor quickly; but the normal type of business may require a long period of time to resell. I am involved in two of the states mentioned (FL & GA) and it is the hardest market I've ever been involved in. In closing, for most new investors, I would recommend to stay away from toxic states as mistakes are much easier to make that can wipe your capital to zero in a heartbeat. But there is opportunity, I just feel you have to have the EXPERIENCE to be able to see it.

Well, I *MUCH* prefer to think of it as opportunity, rather than anything else... But being new to this game, I severely lack in the experience department. Glad I have the coaches to call!

(Would you like to expand into the lovely state of Nevada? )

I just wholesaled a property in florida and made a quick $5000.

My end buyer did $6000 in rehab and resold the house to an end buyer for a $25,000 profit after all expenses.

The entire process took less than 60 days.

Don't believe everything you read. The more headlines you read about how bad it is in an area the easier it is to make money. I specifically search out distressed areas and states and target those first.

If you buy anything cheap enough you can wholesale it for a profit. Period.

Class dismissed.

Hi Bill and Matt, I live in Michigan and know well what you are saying and even though things are tough, there are deals being done every day even in some pretty small communities which I found hard to believe but its happening.I love Matts attitude theres always a way to make something happen and Bill has many years of experience which makes him very valued as well, thanks, for sharing, Jim

I make money in Florida too. But it's because I have the experience, the network, the money and the common sense to know what a good deal is right now. In Florida, I make my best money off of new investors that make wrong decisions and need someone to bale them out to save them from financial ruin.

Class dismissed.