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How To Patch The Hole In The Real Estate Bubble
March 04, 2007
5:49:35 PM (965 Reads)
It comes as no surprise that the real estate market is beginning to slow down. Simply take a look at the long high road that we have been on. I don't care what anyone says, what goes up, truly does come down folks. This is why it is very important to position yourself before the bottom drops totally out of the market.
It comes as no surprise that the real estate market is beginning to slow down. Simply take a look at the long high road that we have been on. I don't care what anyone says, what goes up, truly does come down folks. This is why it is very important to position yourself before the bottom drops totally out of the market.
Right now, nationwide lenders are putting stops on many of their subprime programs. They are also slowing up heavily on the investor programs. Simply try and obtain a 100% investor loan. What? You still can do it today? Well, shoot me an email in about 8 weeks and see if that is still the standard. What is important to realize is that while the market is tightening as far as lenders are concerned, the buying market is becoming red hot. you can now capture deals like never before. So, what am I getting at? Simple, buy the properties at the dirt cheap price with unsecured lines of business credit (yep, always other peoples money), and then do a lease option with someone that can't quite qualify for the newer, tougher, lender guidelines. Trust me when I say that there will be literally bunches of these buyers and the nice thing is, they have jobs and down payments...They just can't quite qualify for a loan. Once they get in the property, let them season and do a refi in 6-12 months. ou will have made a nice cash flow, now touched a dime of your own money and made a killing on the backside.
Hey, the lenders are giving us lemons...let's make orange juice!
Patrick Zanders is an author, speaker and managing partner of http://www.ezunsecuredcredit.com He also consults real estate investors, both seasoned pros and newbies on the art of obtaining unsecured lines of business credit.
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