Real Estate Change
By Grace on May 23, 2008 in Market News
A Texas Twister has torn up another piece of landscape. You can drive through and see where loose straw has been pierced through phone poles and wooden structures like arrows.
The loan market has devastated the Real Estate market in similar ways. People are finding themselves with homes mortgaged for more than the current market says they are worth. The low, low introductory rates are running out and the big hit is coming with the full rate and there’s no relief in sight from a refinance.
Change has hit and it has hit hard. Here’s your chance to make a difference. No, really! It is, but you can either cut and run or you can roll up your sleeves and get to work.
Start searching for investors willing to take homes that your clients can afford and help them find something they can live with. Why should they pay 6%, if you can avoid it? The investor keeps the house from going to foreclosure which helps your client find a new mortgage even if they are not getting back all they had hoped.
Look for the local banks willing to take a bit longer risk on someone who is working local, has been working local, plans to stay local and wants a home locally. Talk to the credit unions in the surrounding county and see what programs they offer for even a person with a small account.
2 Comment(s)
By Simon on May 26, 2008 | Reply
Talk about a tornado. You are not kidding. I am a private real estate investor who specializes in shortsales and probate.
I had to move my focus to bank REO properties because of so much inventory that needs to be moved. I might keep a house or two for my company but the majority of the deals are wholesale property deals.
The problem I see that some of my investors are running into is if they decide not to keep the property and try to sell it.
Some of them don’t understand lease options or doing a seller carry back mortgage / trust deed.
The flood is coming and every needs to be prepared since I think this will take longer to clean up then most people think. Don’t get me wrong there are deals out there to make a great deal of money. Just be cautious.
By admin on May 26, 2008 | Reply
Great info Simon. So your strategy is to buy and hold?