Posted by RichV(FL) on July 21, 2003 at 17:59:21:
Shawn,
Great post and very true.
Regards,
RichV(FL)
Interest rates keep moving up. Anyone worried? - Posted by Frank
Posted by Frank on July 21, 2003 at 13:24:20:
I noticed the 10 year treasuries are moving up again today. So are we at the beginning of this move in higher long term interest rates or at the end? Many economists were predicting a top at 6% for 2003 but we are almost there and it’s only July. A big enough move can kill this real estate boom and financially ruin many real estate investors pretty quickly.
Re: Greenspan announces lower rates - Posted by Christen
Posted by Christen on July 21, 2003 at 18:42:32:
I just read interests are going to kep getting lowered until the economy picks back up, rates are not anticipated to rise until well into 2004
Thank goodness - Posted by Jack
Posted by Jack on July 21, 2003 at 15:20:58:
In this era of low interest and easy bank financing, it is much more difficult for me to do business. When anyone can get financing, my owner financing and L/O selling isn’t as popular. Also, there are fewer distressed sellers, since the pool of easy qual buyers is so large.
I’m looking forward to it.
What in the ??? are you talking about? - Posted by Paul
Posted by Paul on July 21, 2003 at 15:16:37:
Ruin REI’s…? I don’t know what you’ve been smoking, but I think you have BLOWN the medicinal use thing way out the window…
Re: Greenspan announces lower rates - Posted by eric-fl
Posted by eric-fl on July 22, 2003 at 11:10:18:
The federal funds rate (the rate that the Federal Reserve DOES set) is already at 1%. Not too much more room to “keep getting lowered”.
Re: Greenspan announces lower rates - Posted by James Strange
Posted by James Strange on July 21, 2003 at 21:26:47:
Mortgage rates have been going up since the last time Greenspan lowered rates. They went up today.
Don’t watch Greenspan watch the bond rate.
different than long term rates - Posted by Fyiguy
Posted by Fyiguy on July 21, 2003 at 19:01:34:
Greenspan doesn’t control mortgage rates.
Re: Thank goodness - Posted by John V, FL
Posted by John V, FL on July 22, 2003 at 01:45:30:
When cash is considered king again in real estate we will do real well. I loved the early to mid 90’s period.
Re: What in the ??? are you talking about? - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on July 21, 2003 at 17:12:46:
Listen to what he is saying. As Interest rates rise and credit guideline tighten, it becomes harder to qualify for mortgages, thus making the owner finance, and Lease options more desireable or at least the only way for some. We make the most money in the gray areas of life. Sellers that can’t afford to hold on, and buyers that don’t qualify. If we could all afford to, these are the times to buy as much as we can at a fixed rate, and hold for a long time. As rates increase, so do the holding costs due to turnover, and acquisitions. Why do you think that you cannot compete in the rental market if an old feller, who owns 200 units , free and clear, in a small market, if you have leveraged all yours? His holding costs are much lower than yours due to no debt service, and he can set rents at levels that will bankrupt you, and keep him very comfortable at the same time. If you are flipping properties, it makes no difference.
Good Luck,
Shawn(OH)
Re: What in the ??? are you talking about? - Posted by ScottS
Posted by ScottS on July 21, 2003 at 23:20:15:
The good part is in a few years these low interest loans will be on homes that people will want to sell but the prices have dropped and they won’t have the appriciation to use an agent or they might even be upside down.
Sub2 city babyyyyyyyyyyyyyyyyyyyyyy!
Rise rates rise, I’m in my home and looking to be there long term.
ScottS