Posts Tagged ‘real estate market’

2008 and Future USA economy How to Get Money Today!

Sunday, November 16th, 2008

2008, 2009 and Future United States of America ">Economy and Housing Market

The next few years in the U.S. ">economy could get pretty ugly, but this article isn’t just another story on what’s wrong with the and how bad it’s going to get. With this article I am going to cover the following categories: How bad is the current economic market, how bad could the economic market get, how long could the market be bad for, after we spend a lot of time going over articles, subjects and ideas of how bad the could get and for how long, we are then going to discuss ideas on how to access money in this environment we are in to first help everyone in their situation, and 2nd recognize opportunity with the rest of the money, which I’ll ask that you the reader, share this article with others so that you can share the money accessing ideas with other family and friends, to help them out, as well as give them a firm grasp on the we are about to be facing.  Finally at the end of  the article, we will discuss great opportunities on where to invest that extra money you borrow, and how to make a wise investment that will make you even more money. What this article is trying to accomplish is to give a reality check for everyone on how bad the is now, is getting, will be, and finally an optimistic solution on how to help others out of their situation and help them onto profits and wealth.  This article will start off with a lot of bad news, but will later offer hope and opportunity to make the most of the upcoming future of the . Please take the time to read this  full article, save it, and email it to friends, so that they too can learn from it.

Some have said that the U.S. could experience something similar to the Japanese in which Japan has remained flat with no real growth for nearly 15 years.  Lowering interest rates just above zero, showing nearly no growth over all of this time.  The argument is that the U.S. could be doomed to repeat the same mistake and could try to learn from what Japan has gone through for the past 15 years.  This would be a very bad-case scenario, and nobody knows if what we are witnessing now is really going to last 15 years.  Let’s get into some predictions and events that very well could determine the shape of the for the next few years. For sure, the biggest problem currently right now is that all business as well as people are having trouble accessing money from financial institutions.  First let’s cover the housing market.  When talking about a factor to determine how bad real estate could get, it would be important to look at Adjustable Rate Mortgage Reset Charts Map of Misery ARM reset Chart  another chart that’s good is: ARM Reset Chart  This last chart I’ve linked you to, shows us that many home loans are about to adjust well into the year 2012.  If you think about how these loans were originally written as 3-5 year ARMS at the time the loan was originated, you can imagine how we still have years of adjustable rate mortgages ready to adjust.  Many people didn’t recognize the mistakes until the end of 2006 or 2007, so that explains how these toxic loans were written and are now going to reset well into 2011-2012.  What’s more, is that once these loans reset, we know that homeowners won’t be able to afford these mortgages in most cases.  This is not a small amount of ARM’s we are talking about, this is a wave of ARM’s.  Some feel that mortgage modifications could be done, or other solutions, but in reality,  putting the mortgage out for 40 years or a small solution of a fixed payment temporarily isn’t usually enough, or enough to satisfy someone who owes far too much on a house.  What’s more is that even after we get to the end of the ARM reset waves for years we are going to experience people finding themselves lasting only a few months with the higher payments, then eventually they will find themselves falling behind, then the pre-foreclosure process starts.  It’s at this point that every home owner wants to sell the house right away, but they will find themselves competing against many other home sellers, as well as a large amount of bank owned properties which they can’t compete with on pricing, as seen much like the housing market at the end of 2008 is currently showing.  Sellers will find they are running out of time, and owe far too much on their house to even sell.  There is one solution to home owners that owe too much on their home, and need a sale based on these circumstances.   If you are going to be falling behind on payments and need to sell, you should know it’s referred to as a bank , it’s where the bank takes less than what’s owing on the house.  These short sales are very common these days, and I know experienced people who can negotiate with your bank to get them to take less than what’s owing. I’ve written a 10 page article on this concept and you can read that full article here:Minnesota Short Sale Homes Process.  In addition we are going to see a very large growing inventory of foreclosures for more reasons then just these ARM resets.  The next big wave that will have people lose a lot of homes in the very near future, is going to be job losses, and job cuts.  At the end of 2008 it’s starting to be big news, as the USA is up to 200,000 lost jobs just this last month, over 1 million+ this year already.  I’ve found a compilation of many of today’s top articles on where the job losses are andwhat job cuts are soon to come.  Many of these employers are very big and the amount and % of jobs they are cutting is quite a large number. You can read my compilation of articles and I’ll try to continue to update them here: USA Job losses.   As jobs are lost, more foreclosures will pile up as bank owned housing inventory on the market, and the more inventory banks have, the more the banks will drive prices down to get rid of these properties.   This will lower the housing comps in the neighborhood and drive more sellers to foreclosure and short sales as they will find themselves underwater with their mortgages with negative equity.  Here is an article I wrote a few months back that explains the lending business into more detail as well as the :  Minnesota Investors Current Real Estate Housing Market.  We need to all stay focused on the stock market which has been driven down nearly 30-40% in the past 2 months. So why is this a big deal?  Well, if anyone needs this money which has now been lost, it just adds onto the money they have also recently lost in the equity on their own houses.  What’s more, is that you could argue that the stock market, if adjusted for inflation, has gone down much more than this 30-40% in reality.  In case you don’t understand the effects of inflation it’s the idea that our money has less purchasing power than it once did.  For example, when fuel went from $1.99/gallon to $3.99 gallon.   A 12 pack of soda costs two times as much as it did 2-3 years ago.

Let’s get back into that ARM adjustable rate mortgage reset chart.  After 2012 after most of the ARM’s have already adjusted, if we account for home sellers that try to hold on at the higher monthly costs for a little while, then recognize home sellers eventually can’t keep up.  Let’s add onto that timeline 9-12 month process on those foreclosures, you can see how we could have foreclosures still coming in at a fast rate until 2013 or later.  To this, let’s add that if we are talking about a very large inventory of unsold bank owned homes, where all of the banks are competing with each other on the market, this will further drive down prices.  There will be such a supply and demand problem at this point that you can imagine it will take another 18-24 months to sell off this inventory, if not longer.  If you have interest in searching bank owned foreclosures please visit our website www.bankownedforeclosure.com . If you want to keep up to date on the latest information please visit our website www.overfinanced.com I think you’ll agree we are talking the year 2014-2015 based on these thoughts.  How could it go any long then this or get worse?  Well there is 1 other reason we could go beyond this 2014-2015 date in the future, that reason is the rise and wave of baby boomers.  Baby boomers are now starting to retire or try to retire at an accelerating rate.  They will be retiring for about the next 20 years.  As the baby boomers retire, guess what retirees will do?  Two things, they will pull their money out of the stock market to survive and live on.  This could cause a sell off in the stock market.  In addition to that, the baby boomers will put their 2nd and 3rd homes on the market to sell those as they will be planning on downsizing, causing even more inventory.  In addition to the aging population wave, we will see many heirs inherit houses they never wanted, they will be forced to sell through the estates or probate process putting yet even more housing inventory on the market.  Their are a few things that can cause the inventory to go down slightly, such as people coming into this country (population growth), but that’s not growing at the same pace as the unsold vacant inventory.  As the reader, would you agree that we could see rising inventory of houses for up to 5-20 more years?  It’s believable, I think you’ll agree, so let’s just keep this in mind since it plays in to simple economics 101 (supply and demand).  Up until now in this article there has been a lot of bad news articles, job losses, housing problems, toxic mortgages, but all I am doing here is setting the stage for the future opportunity, but first we must recognize the problem.  The problem is simply we could have a lot of inventory well into the future of the U.S. housing market, including bank owned inventory.  Their will be a lot of potential to buy cheap assets, and cash flowing assets in the near future, but how can you the reader be prepared?  As you continue to read this article I will give ideas on where to access money as well as what to buy with this new found borrowed money, so keep reading.   With ARM’s adjusting, many home sellers behind on mortgages, and even more people continuing to lose their jobs, the rise of inflation which increases the price of goods and services, their will be a shortage of money for many.  Let’s think ahead, let’s get you, the reader, some pocket money, let’s say $2500-$15,000 to get you started.  Below I have an updated list of where to access this money.  Many of my readers will easily be able to get personal loans from these companies.  Approval is typically 1 hour to the same-day approval.  My goal with this article is to show you easy money, let’s face it, it’s easy to find hard to access money that require stacks and stacks of paperwork for approval, I want to put money in your hands and show you easy money.  Go to these following companies, and remember to check back often for an updated list of companies EZ 24 Hour Loans.

As I talk to people every week about the housing crisis, as they ask for solutions on how to now without a lot of money, or with bad credit, I had to come up with some solutions.  There are two solutions for buying, those are Contract for Deeds and Rent to Owns.  With a to own you will be renting with the option to later buy the property at a locked in price.   With you will be buying and owning at the time of closing and receive many of the tax advantages today and enjoy home ownership.  Contract for deeds will require more money down than that of to own.  These two options are affordable, you can also often have bad credit, and you can get bank financing 1-5 years from now, giving you ample time to improve your credit score and get through the current economic times everyone faces.  You can fill out your lead info at my websites at www.Contract4Deed.com and www.RentToOwnBuyers.com.

Once you get the right home to live in, I have more solutions for you to buy even more properties with very big access to money, the following are more great opportunities.  For example, how would you like to invest in Biloxi Mississippi?  We are talking $365,000 in government funds for rental properties for the Go Zone program, with thousands of renters waiting in line.  What if I told you it only took an average credit score and is said not to report on your personal credit report if you are making the payments based on our lending connections.  We are talking 5 properties per investor, and very big money ($365,000).  What’s more is, you can do up to 10 houses if you include a (spouse).  We are talking over $700,000 just from this one idea.  Here is the Biloxi Missississippi investment slideshow and highlights.  If you are interested, please contact me.

Another opportunity is if you would like to look into Commercial Real Estate Training, I can offer you more opportunities to access unsecured business lines of credit so that you can pay for the commercial real estate training and have possibly more future money to invest even more.  Again this unsecured business lines of credit doesn’t show up on your credit report with most of the lenders.  the cashflowexperts and Tom Kish is said to be able to show you how to access $250,000-$400,000 in unsecured business lines of credit.  the idea is to get each of the banks to lend money to you with low documentation as stated income loans.  Even if you were to end up with only $100,000 in business credit revolving credit and business credit cards, that’s a lot of money.  In addition to the business lines of credit that you would access, we have met even more contacts recently that can go out on your behalf and help get you even more business lines of credit.  Can you now see how we are starting to talk about access to over $1million in loans if you wanted to be very aggressive with these programs?  My business associates will help my clients get even more access to business credit. My associates are providing me info as we speak and more articles will be written about those business credit programs.   There are additional programs that offer aged businesses as signed on to your business credit score Paydex, Dunn and Bradstreet, etc, with some money upfront $100,000 to $1million in available credit right away I am told.  What’s great about these business credit concepts is we have the same companies who work hand and hand who can help improve your credit score, and implement credit repair to remove inquiries off your credit report, and get your revolving credit lines at the right % debt to high limit ratios, so that they can help you to keep accessing and borrowing more money.  It’s all a process, and does take some time, but the sooner you can get started the better.   For example, here is a program I was just offered this week “Ron, For $16,800.00 you get an aged corporation with a $100,000 line attached no personal guarantee, with a 80 Paydex and Dunn and Bradstreet, great for investors and yes, they buy more than one it takes 45days and you can pay with a credit card!”  Another business credit person we will be working with is www.wcgmidwest.com

FYI, many of these business credit associates like to use TrueCredit.com as a way to monitor your credit score. Because the better and higher they keep your credit score, the easier it will be to access credit and money.  Here is an example of a Business Credit Application.  As the weeks and months go on, we are finding more business credit sources, so stay tuned to this article.  I will write a future article on credit repair and improving your credit score.  There is a lot to know about this topic and you will save thousands in the future better understanding it.   If you feel your credit score is good enough to get financing in today’s market you can read the lending requirements at the end of our Rent to Own Program Article  We can help you get financing if you think you can qualify today, simply contact me.  If you are able to qualify for a home loan, once we know that, you can search our site Minnesota MLS Properties.  You can keep up to date on our company at http://www.MinnesotaInvestors.com. You can keep up to date on our blog at http://www.minnesotainvestors.com/blog If you are not able to access some money for option money for your to own, you can just a property for now, please check local rental properties at www.renterleads.comTo keep in touch with me, or to view my latest training and library I recommend please keep in touch with my personal website www.RonOrr.com. Stay tuned to this article as I will be adding more useful links, please feel free to pass this article around to family and friends as a reference.

Ron Orr, Jr.
Real Estate Broker
MinnesotaInvestors.com, Inc.
763-546-9090

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Decision 2008: The Current Real Estate Market

Sunday, August 24th, 2008

Decision 2008: The Current Real Estate Housing Market

Let’s get honest here.  The is bad.  The U.S. ">economy, if not the global , is in even worse shape.  Let’s all just accept it, and deal with it.  This includes buyers and seller’s and anyone associated with them.  We have two major problems right now that need to be solved to make this healthy again, are you still reading and paying attention?  We have far too much vacant inventory, we need to move the vacant inventory.  The second problem, and it’s a big one, is that many are on the sidelines that want to help buy these vacant homes, unfortunately they feel their hands are tied due to tough lending standards.  It’s time Minnesota and the U.S. start making some tough decisions.  Yes lender’s guidelines are tougher, but there are some extremely easy guidelines out there still through programs. Unfortunately most real estate agents and loan officers may not yet know about it, or have told you about it, and the reason is, it just started to get popular again around the end of 2007.   I won’t go into all of the FHA guidelines right now, but many buyer’s are qualified with only a 600 credit score, it’s currently being done down to a 550 credit score.  In addition, through the end of September 2008 there are still ways to get down payment assistance and 100% financing.  Right now, interest rates are extremely competitive.  Current FHA standards allow for your credit report to show a foreclosure as recent as 2 years ago, a bankruptcy from 3 years ago, and a job (same line of work) for as little as only 2 years.  I think you’ll agree these are some pretty easy standards for most buyers.  These standards will be changing with , where those with full foreclosures on their record will have to wait many many years to purchase.  That’s guidelines, not FHA at the moment.  Why are buyer’s and seller’s waiting on the sidelines, it’s because nobody knows what the future holds, so let me explain.
How bad is it going to get?  It’s time I get very honest with the current and future situation.  The problem is that the housing market has very poorly written financial instruments(loans).  Without getting to technical here, we have loans written that aren’t worth keeping or holding onto.  Not all are like this, but adjustable mortgages were not a good idea, and we’ve all seen that on the news.   The problem lies in the fact that many were written a few years ago, and are on 2-5 year cycles before they adjust.  That mean’s maybe one half have adjusted and run their course already.  Many will keep adjusting until the year 2010 at least.  Stop worrying about which president will be in office, what legislation is going to save you. These mortgages were written, it’s more than legislation and the banks that lent you money to save or stop the current situation, it’s bigger than that.  There are those servicing the loan, there are also those that originally invested and put the money up with the bank.  They have to agree to the mortgage modifications and other changes in rewriting the loans.  As the loans adjust and the seller’s try to hang on to the higher payments, eventually many won’t hang on and they will end up in a 9-12 month foreclosure timeline.  This will keep inventory piling up well into the year 2010-2011.  That doesn’t mean as a buyer you can’t get a great deal right now, you can.  As a nation we need to re-write good loans this time around and clear out, move, and sell this inventory.  Few banks remain and we have to take advantage of the current loan programs while we can.  I’ve recently heard that and who are doing up to 80% of all of the nations loans are in pretty bad shape right now, and may need a bailout, according to the numerous news sources.  We need to move this inventory now regardless of what happens to and Freddie.  We can still do FHA loans for now, and the qualifying standards are even easier anyways than Fannie and Freddie.  I don’t think FHA standards will remain this loose for too long, so buyer’s who are trying to get loans should come off the sidelines now.
So let’s all deal with the bad economic news and make the most of it.  We have to all work together on a state level, and national level.  We need to move the inventory together.  Property owners will face tough decisions, some will need to sell, some will need to out their properties and become landlords, and others will need to sell in foreclosure or on a due to owing more than the house is worth.   If you are not able to qualify for at the very least in this market, please look into buying up or renting some of this inventory, so we can decrease all of these vacant home inventory. Vacant homes aren’t good for anyone, we need to correct this problem, so that everything gets back on track again.  There are tough decisions to make for buyers and seller’s due to the current , rising inflation, rising fuel prices, rising food prices, and annual incomes that don’t seem to be keeping up with inflation.  Due to increasing job losses we have families with less income, many people need to cut back and downsize.  Let’s all make the tough decisions, and move forward with this and housing market and keep things moving again.  Let’s discuss which decisions need to be made:
If you can qualify for with little money down and 550-600+ credit score like discussed earlier, than get a FHA loan.  On the other hand if you have less than equivalent of and a deposit right now, you are a renter, I recommend that you check the newspapers and rentclicks.com to find a place to live.   If you have more than $4000 to put down, some seller’s will allow for a with the option, known as a to own.   If you have over 5% to put down on the house, that will allow enough money to pay agents so that you can on a for now and finance later.   Before you commit to any of the seller financing decisions above, with poor credit, you should be aware that many current laws by and are talking about up to 6-7 years before someone can finance a house who has lost a house to foreclosure.  This is important to know before you get into a contract that asks you to get financing in a short period of time.  This is also important to know before you put a lot of money down, or a lot of time or years into something.  Even recent short sales or foreclosures on your credit can limit you to when you can buy your next house.  If you are going to sell your current house on a , or lose it to the bank you should know these rules ahead of time, I can email you the recent / guidelines.
As a property owner, you have some very tough decisions to make today. Let me give you some ideas to put you in the right direction.  If the payment on your current house has adjusted, or is adjusting and you can’t afford the payment or even if you out the property, you will have a significant negative cash flow you can’t afford.  You will need to sell the house if this is the case, or do a mortgage modification with your bank.  If you owe too much on the house, you will want to sell sooner than later to avoid falling behind on payments and losing the house to foreclosure.  How do you know if you owe too much?  Well if you put little to nothing down and bought a house after 2003, there is a very likely chance you owe too much, but you never fully know until you get the house listed and on the market to test the price.  A local real estate agent who knows your market can run some comps for you before you list the house.   Before you sell or sell on a you would need to provide some information about your loan to get started.  If your current house has a good loan with it, meaning a good interest rate, fixed rate for some years, it may make sense to out the house, or sell on a .  The point is for all of us to fill up some vacancies and move some of this inventory, to keep this market moving again.   Everyone needs to stop waiting on the sidelines, whether you are a buyer or a seller, and make some decisions, even if they are tough decisions, we need to keep the market moving.   I have heard of just about every scenario good or bad with housing, so nothing you can tell me will surprise me. Some are more challenging then others, so let’s work these more complex housing situations together, and let’s have buyer’s and seller’s move on with their lives and not let real estate or their own house hold them up from moving forward.   I am sure everyone has a lot of unanswered questions based on their unique situation.  I need you to call me and leave a message 763-300-1648, or email me  ron @ minnesotainvestors.com.
If you call, please don’t hang up, leave a message.  Email me your situation, or tell me it by phone, whatever makes you more comfortable.  I usually can tell you within minutes which direction to go, as I have heard almost all situations.  I have many associate investors and agents ready to assist you, I just need to hear from you.  Do me a favor and be one of the brave ones and take a small step to help others in the overall scheme of things and the housing market.  The can still move forward without banks, so call me or email me today, plus you can refer me whomever you know to me me if you’d like.  At the very least, email me for some articles that can explain renting, to own, , , selling and listing a home, selling on a , selling in a situation, and other articles, this will better inform you no matter who you choose to move forward with.
To end my article, I will use a sports analogy.  The team’s time clock is still moving, for those of you that want to play in the game with the team, contact me and let’s keep things moving, for those who want to sit on the sidelines and watch the team work hard, be my guest. When you are ready to come off the sidelines and join in and help the team, please contact me.  The entire state of Minnesota is in this together, we are a team, let’s work together as a team and keep things moving. We need some team players to step up.

Ron Orr, Jr.(Real estate Agent/Broker) since 2002
Cell Phone: 763-300-1648   email: ron @ minnesotainvestors.com
www.MinnesotaInvestors.com

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