If you read the current media and their opinions about financing you might think that this a poor time to purchase because financing is expensive. I believe that is not the case.   In fact I believe that this is a very good time to borrow money to purchase real estate. The following are my thoughts and comments about this subject.

Comments:
The so called sub-prime mortgage industry is gone probably for ever. I believe that is a very good thing because the people that funded these so-called “new” mortgage guidelines new exactly what they were doing.  The sub-prime mortgage industry chose to ignore the established guidelines that have been reviewed applied and scrutinized for over sixty years.  The current issues although politicized have been strategically expected.  They now are asking the US Government to “bail” them out after they have received huge fees and bonuses for creating all of the sub-prime products.

The United States is by far the best country in the world in providing housing for its citizens. Other countries do not have the experience and the underwriting guidelines that has been the mainstay of the mortgage industry.  The well established guidelines formed by the millions of loans since the 1940’s that established all of the mortgage secondary markets have been working and I must say ‘Working very well thanks you”.  These guidelines provide the underwriting and the pricing guidelines that allow the industry to be funding and capitalized.

What does this mean to you?

If you fall within the long held guidelines mortgage money is very inexpensive.
If you purchase a house now you will probably pay the least amount for a similar house ever.
Now is the time to buy if you are guideline applicable.
Do not buy now without a “Real Estate Buying Professional”. There are many real estate professionals that are trained and experienced in purchasing house in this very “Buyers Market”

What to do now:

Research and hire a Real Estate Buyer Professional. This will be a relationship that will save you a lot of money by “not” making poor decisions.  Have at least three lenders evaluate your borrowing guidelines. They should be able to give you a Good Faith Estimate (GFE) close to the estimated budget that you have established. This should be at no charge but if they want your business that should not be too hard.  Make sure that the asset is evaluated by a “business” plan that includes carrying costs and includes the re-sales soft costs.  Make sure that you have enough real “Capital” to be able to complete the business plan and the exit strategy that allows you to sell your investment or lease it to whomever can afford it. I suggest that you have real capital to be able to withstand 6-9 months of no tenant or buyer but obviously hope for less.
Make sure that your real estate asset is priced fairly and not “discounted” because of a panic atmosphere.

I learned a long time ago that whatever the big banks are doing you probably should consider the opposite.

Good Luck.

The image that people have pop up in their mind when certain words are spoken can make a huge difference in a Real Estate Marketing Plan. different image. They all may be houses but they will be different shapes, different stories, different colors and probably in different locations. Did you image a house at the beach or within your neighborhood? Did you imagine a two story primary residence or was it a cabin in the mountains. What color was it and was it brick or some other feature.

My point is that communication relies on memories and communication is really what “marketing” is trying to accomplish. If the person you are marketing towards has a similar background as you then you probably communicate rather well. But if the targeted client has different backgrounds you might not be communicating well.

I first look at the pictures in an advertisement. The tags lines or wording and explanation will either reinforce my first image or it might confuse it. I believe that using as many pictures as possible will always communicate better than keys works and phrases. But people will struggle more on the wording and then throw in a picture without much thought.

I search the MLS website all day long looking for houses that fit my search guidelines. When the listing has no pictures or the pictures are poor I will emotionally and physically pass on the house.

That is a reflection on the Listing Agent but it penalizes the house and it’s owner.

Welcome to our new blog!  It’s purpose is to keep Real Estate Professionals, or those who are interested in becoming real estate professionals, informed on the latest news and resources to keep them up to speed in the ever changing Real Estate profession.

If you have anything that you feel is worth mentioning, please drop us a line and tell us all about it.  If it has to do with Real Estate, we want to hear about it!

We have some top notch guest writers who will be writing some articles in the future.  They have much experience in relation to the real estate field, and we are really looking forward to their insight.