Homeownership was at historically stable levels at the start of 2000 right around 64%.

It peaked out at almost 70% during 2004. It has now been slashed down 65.1% in the latest numbers in April 2010.

This almost 5% plunge in only 5 years is one of the most dramatic in American history. The financial crisis of 2008, the toxic subprime mortgages, and the great recession have converted many would-be homeowners into renters.

Even more disturbingly vacant homes have swelled by 44%.

Where before in 2000 there were 10.4 million vacant homes that number has skyrocketed 43.8% to 15 million homes in 2010.

Get a load of this perspective…11.4% of all housing units are vacant. That’s what these numbers mean.

Until the housing market re-stabilizes, bad debts are eliminated and we become friendlier to businesses the economy won’t get back on healthy footing.

So what to do in the meantime?

You can sit on the sidelines like a lump on a log or you can thrust yourself into the game and profit handsomely.

Investment opportunities abound in oversold businesses as well as beaten down real estate.

Take your pick, do your research, find good values and pull the trigger to buy real estate assets at these low prices so you can profit from the cash flow and the likely appreciation when the economy turns the corner and starts rapidly rising again.

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They knew opportunities would be numerous.

Governments at all levels are drowning in debt.

Cities dependent on property taxes are staring up at gargantuan financial issues. Property taxes project continued shrinkage for 2012 and 2013.

On the upside many cities have pared their spending down an even greater level. This has put many local budgets on much stronger footing reversing the financially deadly trend we’ve been on for decades.

As investors or real estate agents falling property taxes means falling prices.

These are the opportunities we’ve waited generations for. Possibly the opportunities of our lifetimes.

I doubt we’ll ever see values as good as this again.

As many of the greatest investors in history including Warren Buffett know, “You make your profits when you buy an asset not when you sell it.”

The chance to buy properties and rent them out for positive cash flow is back in play.

Invest for cash flow, buy the properties at low prices, and you’re virtually guaranteed to make profits from real estate in the coming years.

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Of 14 loans which were independently reviewed 7 of them had “material underwriting deficiencies”. This means a failure of the bankers and underwriters to do the proper due diligence.

It’s been much publicized that foreclosure proceedings have been slowed or even completely halted in many different states. I just saw a story of a person who has lived in his house for 5 years without making any payments during that time.

We’ve become a nation of many squatters.

But the guillotine is not going to be held up forever. The stays of execution are running out.

Some of the foreclosure processes are already starting up again. More are sure to follow very soon.

This means it’s a great time to be a real estate agent. Particularly a buyer’s agent.

If you’re a real estate agent it’s also a great time to consider picking up some of these deals on the cheap for your own investment portfolio.

If you’re out there without a license looking to make a move or do some investments the coming tsunami of foreclosures is going to open up vast opportunities at fire sale prices.

Position yourself now. Start doing your research so you’re ready to pounce when you find those deals.

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So what’s the biggest thing he’s buying right now?

300 unit to 800 unit apartment complexes. These complexes are “the hottest market in the world right now” he says.

He also sees opportunities in gold, silver, oil, and natural gas.

But he’s investing the lion’s share of his time, focus and money into large apartment complexes because as he says, “everybody’s got to have a place to live”.

Another thing he said is “America is on sale right now”.

The overriding message is all this doom and gloom has people quaking in their boots. The fear is spreading rapidly and growing, causing people to make bad decisions jettisoning their assets at fire sale prices.

Further Roberts says it’s all about the financial education you have as to which side of the fence you’ll fall on once these economic problems are over.

You can take advantage of these “blood in the streets” times we live in by being a buyer of these great deals.

Since people do need a place to live apartments are a fantastic place to be.

There’s also great deals in single-family housing which you can turn into positive cash flow rental properties. Just run the numbers and make sure the deal makes financial sense.

Basic rule of thumb is… positive cash flow.

If the amount of rent you get is more than the cost of the property you have to pay each month then you’ve got a potential deal.

Robert says capital gains investors are quote “finished. They got tanked. But I’ve always been a cash flow guy.” If it puts cash in his pocket every month those are the kind of deals he looks it.

The only other decision you have to make is what amount of positive cash flow is worth your time.

You may be at a point in your life where $100 per month positive cash flow is worth your time. Maybe it’ll take $200 per month positive cash flow to be worth your time.

Either way the deals are out there so get moving.

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As long as there were some comparable numbers in the neighborhood it didn’t warrant a much closer look.

Many are complaining the increased scrutiny of appraisers is dragging down the housing market. This is the first time realtors have ever seen appraisals negatively impacting their business.

The numbers are pretty stark.

– 10% to 12% of contracts canceled last year because

– 10% to 13% of closings delayed

– 16% to 20% of deals reported renegotiating a lower price after the appraisal

This June, 16% of realtors reported contract cancellations where the year before in 2010 it was only 9%.

Also in response to the housing bubble popping new regulations have come in once again with unintended consequences.

Enacted to protect the independence and autonomy of appraisers instead they’ve introduced lots of new problems.

Requesting more comps delays the process and causes deals to fall apart.

The biggest factor causing pain is a lack of many comparables.

This will only get better when the housing market stabilizes and the numbers of sales is back to normalized levels.

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In addition banks are offering many incentives to get buyers off the fence.

The incentives range from:

– waiving fees

– lowering rates

– waiving some closing costs

– discounting fees by as high as .75 percentage points

– offering a “we’ll match any price” style deal

Some are even going so far as to waive most of the cost of refinancing if rates continue lower in the near future.

Beware these incentives as they might have a hidden catch.

To qualify for some you have to have $10,000 or more with the banks investing arm. Others are charging a widespread on the interest rates.

The biggest key to saving money on a mortgage is getting the lowest interest rate you can. Over the life of the loan it saves you the most money compared to paying a higher rate or any of the other fees involved.

And you can always negotiate for a better rate keeping your eye out like a shrewd eagle scanning the horizon for the best opportunity.

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The popular discriminatory refrain is always “they can afford it.”

The Democrats are daring Republicans to vote down the bill now with this new provision in it.

A big talking point beforehand was the bill had no way to be paid for. Democrats now believe they’ve leaped over this hurdle.

But history has proven increasing taxes doesn’t stimulate economies.

There’s been lots of talk about the government doing more to help the housing market.

As the “cash for clunkers” program has proven though when government gets involved in something inefficiencies and costs skyrocket through the roof.

An unintended consequence is now people who are looking for used cars in the $3000 – $7000 range can’t find them. There’s so little supply it has driven the price for these used vehicles skyward.

Either way this bill goes it’s not going to do what it was intended to do.

The public has common sense and has lost the faith in these governmental policies fixing things.

But if you’re looking to move there are still plenty of fantastic deals on housing out there. Some sellers have to sell and a lot of banks are sitting on houses they desperate to get rid of.

You can find fantastic deals and really low rates so if you’re in a financial position to make a move now’s a good time to do so.

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What person in their right mind would loan another person money to be paid back over 30 years and only get 3.94% interest?

Obviously, no private citizen would. And talking with many bank employees and executives they secretly say no banks would ever do this.

The only reason banks are extending this is because the government, which ultimately means the taxpayers, are backing these loans. This means that taxpayers are taking on the risk of these bad deals.

With FHA, Fannie Mae, and Freddie Mac all on financial life support it’s unclear how long these deals will last.

On the flip side, As great a deal as this is for those borrowing money it could get even better.

Japan had what’s been called “a lost decade”. Rates got so low no one ever thought they could get any lower.

Japan’s rates dipped under 1% and are now close to the 0% we have here in the US.

Back in the US rates on 15 year fixed mortgage fell to 3.26%.

Despite these low rates home sales are on pace to be the lowest they’ve been in 14 years. New home sales are faring even worse than used home sales.

But lending requirements of high credit and 20% down payment are stomping on what demand may be there. Many people can’t qualify for these ultralow rates.

The high unemployment rate, lack of raises, and general uncertainty about the economy are weighing heavily on buyers decisions. As well the case Shiller index is predicting prices could fall another 20%.

These reasons are outweighing the historically good housing price valuations combined with the historically low interest rates.

It’ll be interesting to see when this dynamic shifts.

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Miami is the real estate default capital of America. 20% of homes are in default or already foreclosed on and sitting empty.

Sales rose 16% in the 1st 6 months of 2011 versus 2010. Prices are firming up and sales in the $2,000,000 plus range are blasting off.

Many of these home buyers are Chinese or Brazilian. The prices are a no brainer for them and they many times don’t negotiate.

They’re benefitting from the weak dollar exchange rates.

http://finance.yahoo.com/news/Affluent-Buyers-Reviving-nytimes-1639905495.html?x=0

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Assuming you’re buying you don’t lose anything. It’s a net neutral transaction for you.

What you lose in price selling you gain back in lower price when you buy. So no need for doom and gloom.

So how to price right?

1. Work with your realtor

2. Do your research

3. Check out your TRUE competition

4. Have realistic expectations

http://finance.yahoo.com/news/How-to-Price-Your-Home-to-usnews-544121707.html?x=0

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