How to make money when there is no money - Posted by StevenS(CPA)
Posted by StevenS(CPA) on August 10, 2007 at 10:13:23:
This is probably the very best time in the world for professional creative real estate investors to make money and I think the time is only going to get better as the months go on.
When even people at the grocery store are talking about mortgages getting harder to get a panic is starting to set in.
I have read that some banks are making margin calls on their hedge fund clients which in turn drys up some of the easy money.
From what I’m hearing from a mortgage broker friend is that in the next few weeks low doc loans will be going to low doc heaven.
Plus with FICO changing their rating system in September it may be another round of credit crunching as spouses lose their AU benefit and millions of people credit score goes haywire.
By late this year we may find that anyone with less than 700 be shut out of the market or pay a high cost to enter.
Which means that there will be fewer retail buyers and less novice investors.
Professional investors will be hot if they play L/Os, 60% LTV or/and wraps. Putting together investor pools will still be a nice way to make money also since the there will still be moms and pops with cash laying around.
When everyone is scared and running for the exits is when we as investors should be picking up every good deal in sight.
Another side benefit is that this market will kick out the weekend investors, who thought all you had to do to make money is buy it, paint it and sell it at a higher price. Those days are gone in most markets too.
So, this is a great great time. I hope to hear of some great deals coming on these boards soon.
But that’s just my opinion.