I don't get it...

It seems that the economy is good. By that I mean, unemployment numbers are low, mortgage rates are still low, housing prices are low with a lot on the market, yet people are afraid to buy. This is a perfect buying scenario. Good money rates, good housing prices, plenty to choose from, yet people are nervous.

I think it is our press. We live in a society that thrives on news. Yet, when the news is delivered in a fashion that is strictly by the book, from their cube, and not by someone going out and getting into a community and asking a few questions, it gets dangerous. Our society has chosen to become a people that believe and trust something that is heard by the third time. By that I mean, the corporate news groups know that when they do a story on the upcoming recession, by the third time or rewrite there becomes a captive audience. This then grows and becomes it's own fodder through the grass roots level and compounds itself.

My philosophy is to get out and talk to people. Ask questions and try to get specific personal answers that help me reach a conclusion.

I know of a duplex in Oakland, CA where there is a good Section 8 tenant on top for $1800 and another unit below. Asking price is $599,000. I imagine that they might take $525,000. This could be positive cash flow right out the gate. But, it's been on the market for a while now as people "are afraid" to buy, because the news guy says so. How many properties does the news guy own, is my question? I alway get people telling me that the market is bad for investment properties right now because the loan industry has changed so much it makes things so difficult. I ask them how many rental properties they own to be able to rationally come to this conclusion, and the answer is none, but they are looking to get in.

Now is the time to get in. We may not ever have rates this low, with prices this competetive, with unemployment numbers this low, and GDP moving higher again in a while.