Tuesday, March 24, 2009

Investing in Southern Oregon Real Estate


When I first heard that the Fed is proposing to partner up with private investors for the purpose of purchasing bank-owned toxic assets, I perked right up. My first thought was that I'd invest in in Southern Oregon real estate! I immediately thought of the grass roots campaign financing created by the Obama campaign that raised millions of dollars 25 bucks at a time. But now that some of the details are beginning to circulate, I see that the proposal is partly an olive branch extended to Wall Street. Investors must be Wall Street connected so the individual investor must hook up with their favorite Hedge Fund or Investment Group. And despite the standard opposition by economists with ph.d.'s behind their names, the concept makes sense to me. Here's why. If a toxic asset can be identified, inspected, and appraised, the investor will have a fairly good idea of what kind of value is attached to the property in question. This becomes the Hedge Funds challenge. Given enough time and with a reasonable fund to rehabilitate the residence, property will eventually appreciate. It always has; it always will. Then add one more element to this equation... inflation. Real estate has always been a hedge against inflation because the price of property has always risen to keep up with inflation. It makes sense that if an investor takes a chance on a distressed property, and that property is managed with common sense, in time the investment may well turn a tidy little profit. Yes, sir. Count me in.

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