“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffet

We have all heard that quote before, and think we understand it.  But acting on it is an entirely different thing.

I have over the past several months been working with a number of real estate investors picking up just terrific deals on Atlanta real estate.  While the news anchors and commentators generally wring their hands wondering which wave will hit next to push real estate values down further, some sharp investors are buying Atlanta area real estate.

And, they make money as they buy, because they buy right.  And that is the key.  Rents, though down by all accounts, still are enough to cover the note, management fees and to set aside sufficient reserves for repairs and vacancies, right from the start.  And the cash flow, tax benefits and future appreciation are there for the taking for these savvy investors.

Recently I was asked to participate on a podcast, which you can hear right HERE, with a nationally recognized expert on real estate investing, Jason Hartman.

Enjoy the podcast, and if you are interested in picking up an investment property or two, just let me know.  I work with some of the pros in Atlanta who make it turn-key and easy.

Since January, 2009 the Fed has been buying Mortgage Backed Securities – those bonds that determine mortgage rates.  And we have seen a year with the lowest mortgage rates in literally decades as a result.

The goal of the Federal Reserve’s agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBSsecurities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers.

Since the inception of the program in January 2009, the Fed has spent $1.122 trillion in the agency MBS market, or 89.8 percent of the allocated $1.25 trillion, which is scheduled to run out in March 2010.

So what happens in March, when the Fed stops buying?  Last I heard, the Fed was buying 85% of all MBS.  If that buyer leaves – how high will rates need to go to attract new buyers? That answer will keep you awake at night, if you make your living in the mortgage business.

The question on everyone’s mind is: Will the Fed suddenly announce that they will put more money toward buying MBS, even after March?

I am inclined to think they will, since not doing so would send the housing market into a tailspin again if mortgage rates rose dramatically.

But, the certain thing is if you are in the home buying market, get them off the mark and lock in a rate soon. Anything else is a gamble.