Monday, May 07, 2007

I Got the Sub Prime Blues

Since my last post which was some time ago(I've been real estating), it seems that the market has been given some very bad news. The sub prime lending business has taken a terrible hit with tons of property coming back to them. Of course, these lenders are NOT investors, so having all these properties on their books is a nightmare. In fact, it's worse than a nightmare for some; for some it's a death knell. Several of the large sub primers have closed their doors, packed up and gone home. How did this happen? A myriad of behind the scenes ways. Probably a combination of poor lending practices and standards, tighter credit restrictions by the secondary market, and a general feeling of gloom and doom in the market. Of course, if you have an ARM loan you're probably wishing you had rented an apartment instead of buying a house. So, where's the good in this? Well, I'm a firm believer in balance. All things MUST balance. So, there is some good news for Investors coming out of this debacle. There are going to be a glut of foreclosures on the market and very few buyers. This, of course, will drive down the prices and you'll be snapping up steals every way you turn. There hasn't been a better time to purchase property in a long time. This is the time you go in and buy, buy buy! Will I have to hold the property until the market starts to creep back up? Yes, probably. But I don't think it will be that long. The government has already talked of intervention on behalf of the purchaser who now can't buy a home. This is likely to happen. Get in there now and start buying deals. Negotiate hard. You know the position the market is in, work it to your advantage. Learn how to get foreclosures for pennies on the dollar. I know this is not a good time for some and that is truly unfortunate, but business rolls on and for the Investor - it's raining money.

Robin's Rule # 19: Don't wait and buy real estate, buy real estate and wait.

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