"Market Bottom Triangulation"

Flight to Hard Assets
As global markets collapse, credit defaults explode, and conventional wisdom questions the underlying rating system of safety itself… stocks crash, commodities inflate, and investors pay premiums for the right to preserve capital. The most sophisticated investors on Wall Street have been paying perfectly good money to buy bonds that will mature at a value below their cost… just to make sure they don’t lose even more money.

Out of Chaos find Opportunity
Smarter money is quietly flowing into select bank-owned (REO) properties, in select market areas. Savvy investors are buying assets below intrinsic value and receiving 5-10% net ROI, while like investors validate this sea change. How do you determine a local bottom…?

Seth’s Market Bottom Triangulation principle:

1. Sales price falls below the cost to buy the lot and build the home.

2. Net annual return on an all cash purchase exceeds 5%.

3. You have to win seller acceptance over competing offers within a matter of days.

How do you really find a property trading below intrinsic value?

Find a good realtor.