By:Dennis Norman
Real estate investors are facing quite a dilemma in this market. On the one hand prices are down,inventory of “deals”are plentiful;on the other hand financing is tight,the resale market is weak and many banks don’t even want to finance rental properties right now. So what’s an investor to do? To answer this and other questions I approached Marc Mink,a friend of mine,a veteran real estate speculator and investor in St. Louis,MO to get his thoughts via an E-View TM (my newly coined term for detailed interviews via email or other electronic means…hmm,kind of like it).
Before I start,a quick disclaimer:Marc is also one of the smartest people I know,is very knowledgeable when it comes to real estate,finance,the financial markets and more. You name it,he knows it. He is also VERY outspoken…he has no problem letting you know what the thinks…I personally like this trait and am therefore presenting this interview with his answers in his own words and un-edited. The weak at heart may want to think twice before reading. For those that do read what Marc has to say and keep an open mind (oh yeah and don’t take any comments personal) they will benefit from his knowledge and experience.
Even though I only asked Marc 9 questions,several were multi-part and he put a lot of thought into and gave very informative answers so some are long. Therefore I’m going to publish the interview in a series of several posts over the next few days. In each I will give additional background information on Marc as well.
Lets get started with part 1 of the E-View TM …
Q- Having been in the business for such a long time you have been through a lot. What type of changes to the business itself have you witnessed during your career?
A- “The business was at first dominated by old line real estate families and then,in the mid 1990′s,started being overrun with amateur investors looking for easy money. That has reversed itself dramatically in the last year or so and continues to do so.”
Q- What do you think has made the point of entry to investing in real estate so attainable to the ordinary person?
A- “Unquestionably the easy availability of credit..home equity lines,stated income loans,sub-prime…al of which combined to increase prices on property beyond just that amount supported by owner occupants.”
Q- All aspects of real estate have seen dramatic changes in the past year causing hurdles for many today,particularly investors. What do you see as the biggest hurdles to the investor side of the business today?
A-”Lack of availability of financing for investors. Banks have over-reacted to the downturn and shut off the supply of money,even to the most reliable and long-term clients. This will negatively impact the depth and longevity of the real estate market recession.”
If you would like to contact Marc directly with questions or to possibly sell him a property or buy an investment property in the St. Louis metro area,you can reach him at Habashee@Aol.com
Watch for part 2 and 3 of the E-View TM which will be posted over the next few days.
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