Hey all......I recently put in an offer on a nice little REO.

The house is 1970 sq. ft. 3bd / 1.5 bath and in pretty good shape.

The bank had the house listed for $149K and I figured the comps at being around $200K so I did my basic deductions and of course came to the number of $105K for an offering price initially.

LOL....of course the bank, and the broker/bank rep scoffed at my offer, but she submitted it, as is the law.

Of course, as expected, the bank countered, and was pretty good at NOT showing their cards. They came back with a $145K counter.

I just recently met an Investor of 30 years at the local REI club. His philosophy is "buy and hold". I asked him how many properties he is holding and his reply was "about 150". He told me that as long as it "cash flows" he keeps it. I know that cashing out from time to time frees up equity capital, but when you have the volume of properties that this man has....it's like $30-40K per month CASHFLOW. So we have to ask ourselves.....buy and flip? Hold. Which strategy is best?

taken FROM CNN NEWS

The Senate's version of the plan sweetened the $7,500 homebuyer tax credit provision proposed by the House, doubling it to $15,000 or 10% of the home's purchase price (whichever is lower). What's more, the credit applies to all buyers - not just those purchasing their first homes.

I tried to attach this contract but it refused it because it is in the WORD format. The best i can do is copy and paste it for you. Sorry.
++++++++++++++++++++++++++++++++

Option Contract for Sale and Purchase

The SELLER and the BUYER (named below) hereby enter into this Option Contract for Sale and Purchase of real estate.

Real estate got us into this mess in the first place. Will it also get us out?

Given how hard it is to predict anything related to the economy, is now a good time to invest in real estate? That's a topic that Foolish retirement expert Robert Brokamp picks up in this month's issue of Rule Your Retirement. In looking back at the history of real estate investing, he notes that while REITs have had extremely high valuations for years, the combination of low share prices and high yields now make them look more attractive than they have in a long time.

I just got an email from one of my lenders. Fannie Mae is easing their restrictions on investors, and allowing financing of ten properties instead of only four. Hopefully they will reduce down payment limits also.