Housing…The Bottom?

  • Posted by
  • on August 22nd, 2007

Not really the important question for those with liquidity and with the right connections and positioning for deal flow.

We are not there overall in time and definately not in price for all the sick puppies but MANY should be done going down.

This is hysterical – the Implod-a-Meter . Definitely the place to follow the implosions in Mortgage lending.

I am not re-interested in being involved quite yet in housing, but rich people are. They are starting to move fast.

Blair and I are getting a few emails a day to participate in buyout/up funds to take down troubled portfolios. Money is available and already loosening up in trust of the Fed and just the total liquidity.

This is genius (according to Blair):

As you have heard in the media, the mortgage market is in the midst of a liquidity and closure crisis, leaving the transactions of many home buyers in jeopardy.  Western National Bank, in an effort to surmount this problem, has created the $50,000,000 Emergency Mortgage Solution program that offers qualified home buyers short-term, quick-close financing with attractive rates and no discount points or origination fees. This will enable prospective home buyers to meet the timeline established in their purchase agreements and avoid the loss of their earnest deposit with relatively low closing costs.  The borrowers are offered incentives to refinance shortly after the close of this loan.  However, there are no hooks to refinance with Western National Bank.

These guys are a small local bank and good friends of mine. This is the kind of stuff that I would participate in for a good yield.

Core Phoenix is just too good to really worrry and unlike other cycles, the rich are super super rich and insatiable. FURTHER, the bottoms fell so completely out of deals so fast that good deals are already surfacing for those that act fast.

Blair and I do wonder where they are getting their quick liquidity from. Than again, the printing machine has been on for quite some time.

Even my lowly Meritage has got very smart investors slurping up the stock big time . Robert Sarver has been long gone from the stock and is the majority owner of The Phoenix Suns and major banker and real estate developer. Today’s price just may look cheap a few years out. Sarver putting up $40 million for stock as a director tells me he is comfortable with the blance sheet. We will see.

Really all that’s left now is to chase down the obvious thieves and liars. Look no further than the insiders and leaders at Countrywide . I wonder how many times, management was on CNBC the last three years, selling, while it flatlined before the tank job. Hat Tip Eddy .

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