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Subject:  TLCs as the RE market drops Date:  1/15/2007  10:27 PM
Author:  psuasskicker6 Number:  42 of 52

I'm a total novice at TLCs, but am curious. Mostly I'm curious about whether or not it's actually worth learning more about. I've learned a lot from the little on this board, so thanks to the Fools informing us here. Much appreciated.

Overall I understand that more institutions are getting into the game which pushes the value way down from a guy like me. I'm also living in central VA which I think doesn't do these sorts of things and Maryland looks to be my best shot at something...that makes things pretty tough for me and not all that worth it if I can't get 15% - 20% returns with reasonably low risk. From what I understand, it seems like TLCs are high risk if you play it like a crap shoot, and low risk if you actually put in significant DD...being out of state makes the latter burdensome for me.

Anyway, what I'm thinking about now is, as the housing market comes to be problematic for many people - especially in regards to those who've bought their homes on ARMs and will get repriced heavily in the coming 2-4 years - could there be quite a few new TLCs coming available, to the point where supply may be overshadowing demand? Basically these seemed like good plays for knowledgeable people, until more got into the game cause of the value, the value's gone down, but will the supply now go up and demand stay neutral? Or do you see an increase in money coming in as well, to the point where the extra value won't really return?

Did that make sense, or do I need to go a bit deeper into explanation?

- C -
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