Real Estate: Wait 3 years to Invest

That's the advice of my financial planner whom we met with this week. He expects a shake-up in the market because of the mess with sub-prime loans. He wants us to save our cash and in about 3 years or 4 years, he expects some terrific real estate bargains around the U.S. to be available. He's agreed to let me interview him on that subject and more by the end of the month.

He started investing in real estate when he was in his early 20s. He and his wife have been very successful, yet they live in a 1,500 square foot home themselves.

He's also suggesting we take a defensive view of our mutual funds for the next few years, too.

I suggest you click on to the blog of real estate agent Julia Huntsman to learn more about the subprime mortgage market. Here's an excerpt from an article she posted on sub-prime mortgages:

With a decrease in the value of the bonds, such as is now going on the subprime market, these hedge funds are receiving margin calls, meaning the lender wants its money. If the hedge fund cannot meet the demand, it suspends withdrawals. Some mortgage sources have paid out cash to meet the margin calls, and eventually are having to close their doors, American Home Mortgage--a strong and solid lender--being a good example.