Rising Interest Rates - Posted by Cheryl

Posted by Robert M. Campbell on February 19, 2000 at 12:50:55:

The reason I chose not to post the NEWS RELEASE on this discussion board is because ~ like any NEWS RELEASE from a business ~ it mentions (and therefore promotes) (1) Robert M. Campbell and my real estate expertise.

That’s why I write a NEWS RELEASE. To become more visible to profit-minded real estate people.

However Terry . . . at your request, I am willing to do so . . . but, unfortunately, I don’t know how to “attach” something on this board. Sorry.

If you would email me with instructions, I would be happy to post it for all to see.

Also, I have tried to email you personally ~ as opposed to having to answer you as a post on this discussion board ~ but my email was returned to me as “undeliverable” or something like that.

If want me to write an article for this discussion board, I would be sincerely honored.

Just give me the word.

Robert M. Campbell

Rising Interest Rates - Posted by Cheryl

Posted by Cheryl on February 18, 2000 at 11:37:16:

With the rising interest rates, how does this effect us, if we are a using lease option?
Will we have a problem finding qualified buyers?
Does this problem mean, those entering into creative real estate, do we need to wait to start until the rates go down?
Please answer these question, I am a newbie and a bit concerned

Thanks
Cheryl

Re: Rising Interest Rates - Posted by Rob FL

Posted by Rob FL on February 18, 2000 at 20:40:36:

I blame Bill Clinton for the rising interest rates, rising gas prices, stock market dropping 1200 points in the last 6 weeks, and 200+ billion trade deficit. After all he claimed responsibility for this booming economy in his State of the Union address.

Off my soapbox. Interest rates still are not very high. 8.5% or so is still pretty darn low. I bought my first property in 1992 with an 8.5% interest rate. IMHO rising interest means more people should be looking for ways to get non-conventional financing. Lease options and seller financing will be even more attractive. They also mean more foreclosures because it will be tougher for people to refinance.

Re: Rising Interest Rates - Posted by Bill K. - FL

Posted by Bill K. - FL on February 18, 2000 at 16:34:49:

Hi Cheryl,
Rates have been creeping up for the past several months but not very much. We still have historically low rates. When I bought my first house about 25 years ago(has it been that long) I paid 8.5%. Isn’t that where where are today? I have seen rates go to 16%! So when I see rates at their current level I am not alarmed. Everything I have read predicts no great increase in rates for this year. Of course no one has a crystal ball, but don’t let rate fears stop you from getting started. As a matter of fact if rates did go much higher, making it harder to sell, we would have many more motivated sellers. Remember this, in good times and bad, people need a place to live. When interest rates were high many of our current creative methods were born. Many of these creative methods are actually more useful in a high interest rate climate.
When you know how to creatively finance deals you won’t be as concerned with interest rate movement.

Re: Rising Interest Rates - Posted by John Parker (Pa)

Posted by John Parker (Pa) on February 18, 2000 at 15:53:54:

Bob, I’ve only been on the site for 3 weeks so I did not see your original post. I am very interested in your findings and would greatly appreciate a copy to study. Thank you for your anticipated reply.

Re: Rising Interest Rates - Posted by Robert M. Campbell

Posted by Robert M. Campbell on February 18, 2000 at 14:04:06:

Rising interest rates has a depressing effect on the value of real estate.

However, there are always other IMPORTANT variables at work that also influence the rise and fall of property values.

The other four that I use are (1)home sales; (2) new home building permits; (3) loan defaults; and (4) foreclosures.

Together with interest rates, these are my five “Vital Sign” indicators for determining major market trend changes in San Diego, CA.

Whenever you buy property, you must have a way to factor the “trend of the market” into your decision making.

On Wall Street, there is an age old saying: “The trend is your friend.”

This applies to real estate investing as well.

I wrote a NEWS RELEASE a couple months ago regarding rising interest rates and how my other “Vital Sign” indicators impact real estate trends.

If you like, I will email it to you.

Robert M. Campbell

Re: Rising Interest Rates - Posted by David

Posted by David on February 18, 2000 at 18:06:06:

I bought my first house in 1975 and interest rates were 9% fixed, I had never heard of such a thing as adjustable, for 30 years. I bought a house in 1981 when interest rates were 18%-20% fixed for 30 years. And i bought a house when interest rates were 6.5% fixed. They go up they go down, I still buy. in 1981/1982 when the interest rates were so high 50% of the agents left the business and probably sales were 50% of what they were previously. But there were still house sales, people were still selling and people were still buying. Some people who were discreciary buyers didn’t sell but there were others who were “forced” to sell. No necessarily BK, foreclosure, etc, but just people whose job transfered them out of state. And of course there were divorces and unemployment, and death that caused house sales. There were some door closed, but others opened. More sellers were receptive to owner finacing and “Nothing Down” was a best selling book. The point being there’s good times and bad times, but all times are good for the real estate investor; so don’t use rising interest rates as a flimsy excuse to sit on your hands. Go out there and do those deals.
David

Re: Rising Interest Rates - Posted by Cheryl

Posted by Cheryl on February 21, 2000 at 21:56:44:

I am new also,but I was wondering if the rising interest rates would affect, us with finding buyers.
I was told that,infact it would increase, our creative efforts. It should be positive with buyers who can’t get coventional financing.
As I have said, I am new also. So I hope this information can help you, as well.
I was told that 8.(whatever percent)is not very high!

Re: Rising Interest Rates - Post HERE! - Posted by Terry Vaughan

Posted by Terry Vaughan on February 18, 2000 at 22:05:44:

Robert:

Unless there might be some reason that you couldn’t, and If you think the information in your article will be of value to all of us, why not Post it here?

Perhaps we can make an article of it?

Let me know.

Terry Vaughan