July 23, 2024

Illuzzi Letter

Envisioning And Creating Your Dream Home

Now is the Time to Buy Real Estate With the Proper Training

Now is the Time to Buy Real Estate With the Proper Training

Now is the Time to Buy Real Estate With the Proper Training

I drive around in many neighborhoods and see many empty houses with a “For Sale” sign that could be purchased by investors if the banks would just extend some credit to investors. Personally, I do not buy houses using my own cash or by getting a bank loan. I have several creative techniques and private funds for getting this done. Once you get around 10 loans in your name, the lenders think you are high risk even if you have made the payments in full for many years and have god credit. It makes no sense.

However, for many investors and rehabbers, private funds provides the life blood of their business. It is very unfortunate that with all the gov’t stimulus money that a qualified investor with a good business history is having such a hard time getting a loan. If the investors don’t purchase these houses and fix them up, then the houses sit and continue to deteriorate along with the surrounding neighborhood. The banks and government should look to the common real estate investor as a positive force in getting the housing market heading in the right direction.

The engine that powered every U.S. recovery since 1960 has been real estate and the market is now stalled even after President Barack Obama pledged $275 billion to shore up housing. Bankers seem reluctance to finance buyers who won’t live in properties and this is not helping the turnaround. In addition, stricter qualifying rules and the large down payment which most people have to put down has slowed the housing recovery which is now at a 13-year low.

The $8,000 first-time homebuyer tax credit has done little to stimulate the real estate purchases across the United States. Housing has led the U.S. economy out of every recession for at least 50 years, and for that to happen again more incentives and jobs are going to be needed.

In many areas the market sales have picked up from prior months, but if you look at the number of houses sold the same time one year ago it is still far less. Also, the median price in most areas has gone down from the same month in 2008. Housing starts are low and the housing inventory in the US is around 10 months. The usual inventory averages around 4.5 months based on data from 2000 to 2005.

The biggest key is JOBS. Many people want to buy but they are scared to spend money because of the fear that they may lose their jobs. Bottom line, the job market is pretty lousy and as of writing this article the unemployment rate hit 9.5{bc1e42e53d8565163e9cec719c82f5e0892e054fb5d628f08363879e07731a2f}.

The foreclosures in real estate are not over yet and therefore the bottoming in the housing market is still taking place. According to Zillow.com, about 20{bc1e42e53d8565163e9cec719c82f5e0892e054fb5d628f08363879e07731a2f} of the houses, condos, etc were worth less than their loans as of March 31, 2009.

The lack of jobs, stricter lending policies (going beyond strict to insane) and bigger down payment requirements are putting off people even though the demand is there.

Silver Lining For The SMART Real Estate Investor

Now is the time for the smart real estate investor to start to train him or herself in the proper ways of buying and selling real estate. The conditions are right for an intuitive investor to buy real estate below market and in such a manner as to minimize risk. It is all about getting the proper real estate training and making the right decisions based on a solid foundation of knowledge. I have seen too many so-called investors get caught up in the hype and buying property without the skills and real estate training necessary for success. I know you can make money in real estate in up and down markets because I have done it. It is all about fine tuning your techniques for buying and selling to the current market conditions. Now is definitely the time for the first time home buyer with the $8000 tax credit, low interest rates, and low house prices! This to me is the perfect scenario and I urge all first time home buyers to take advantage of this opportunity.