Wednesday, September 24, 2008

Ground Control To Major Tom

What in the world happened here? How did we get into this kind of extreme economic mess? Well, an even better question is how do we get out? This is a good and a bad time for real estate. One of the best times to buy I've ever seen for investment property, but one of the worst for selling it or getting a mortgage; of any sort. The Federal bailout is just that - a bailout. But is it a long term workable soultion...who knows? To keep up with the dizzying array of different products and approaches out there requires a doctorate from some high level university. Here's what we do know; real estate is going to weather this storm and those who are in there now buying are going to get wealthy. And what about the upside-down, under water homeowner who owes more than their property is worth. The word is the Federal plan will bail them out by trying to keep homeowners in their homes. And why shouldn't it? Supposedly, the Fed plan will buy up mortgages all over the place and they then can make up whatever interest rate they want to - zero if they like. I guess you'll just wait to be contacted by some newly formed agency saying you can stay in your home if you agree to a new mortgage. But if you're an Investor right now you need to buy, buy, buy! If the Fed starts buying up these mortgages one thing for certain is going to happen - the foreclosures are going to dry up. That's the plan and that's what they're going to try to stop NOW! And cash is not only king now, it's big king! Finding a line of credit is pretty tough so start thinking about private money. You may have to hold for a while and rent or rent to own but you will never see deals cheaper than this.

Robin's Rule # 14:

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