It Ain't Pretty

The plans I've heard to fix the subprime mess is kind of like putting lipstick on a pig; it just doesn't work! Now we hear that lending restrictions are going to get tighter than ever this week for Investors with more cash down required, we also hear Fannie Mae may require 50% owner occupants in condo units, and that there will be no further lending in certain "declining" markets. Wasn't that called "redlining" at one time? And "No Doc" loans or "Stated Inome" loans - fugheddaboutit!!! All this spells trouble for the Investor. It reminds me of the '88 real estate crisis when Investors were treated like snakes that fall in your fishing boat. I don't think this is going to get better; in fact, it may get worse. But, as always Investors will lead the charge to bring the market back. Time to get creative kids, and find new ways to get financing done. I mean, for goodness sakes, it couldn't be a better time to buy property with 50 cents on the dollar being far from unheard of. But if there's no "capitalist tool" available, then what's an Investor to do? Find new ways to purchase - partner up, look for private money, find sellers willing to finance, get lines of credit to buy with cash. Do what it takes, but don't let them run you out of town. Ride out the storm by making adjustments to your boat because the rough water won't last forever.

Robin's Rule # 30: Necessity is the Mother of Invention, but creativity is the Father.

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