Question from a consumer on my web site and my reply
QUESTION FRIM CONSUMER:
Question: The money has already been made in that maerkt Now it is saturated with a lot of people trying to get what little is left It is VERY rare to score a no money down foreclosure property less than 1 in 1000 if youre lucky Actually, these people are selling their programs, that is where the money is now They made their money already and pulled out some time ago and now they are making money by selling these programs' to others.With these sub-prime mortgages falling through, the real estate maerkt is going to tighten up in the next 12-18 months The mortgage terms we could get in the past 7-10 years will be no more . this 0 down mortgages will be harder to get banks have already begun changing and making it harder to get mortgages the low/no money down and/or bad-poor credit mortgage loans that is .To do a $0 down, you have to have EXACT circumstances to happen in order to do that, which rarely happens and also a lot of work on your part to accomplish that and to make it happen I have picked up a few of these books and have studied their methods and analyzed these systems It is possible but just that . possible but the odds are against you They are not out to teach you how to get rich they are out to sell you their books, tapes, DVD's and to take their training classes'.They are good at what they do, and that is being sales persons selling snake oil Lot of people are hurting for money in these economic down times and getting rich in real estate' seems like a dream, a possibility to a path back to when times were better but these people seling their systems are getting richer doing just that, selling false dreams to the masses, which their system does work but only in ideal conditions and in only an exact circumstance or situation must occur .You will have better opportunities in getting experience and/or an education in business and starting up your own company than buying into one of these systems, and like the lottery, hope you can hit the big kahuna in a lucky deal that chances are that will not happen . with the tanking real estate maerkt ..Better get your own business and buy up the real estate when prices drop, with positive cash flow from your business than to overfinance real estate in a maerkt that is very risky at this time . and loose your shirt when a downturn hits the area where therreal estate is located in.
MY ANSWER:
I agree with a lot of what you are saying. I have investors that do make money finding real bargains and flipping but it is their full time profession and is like looking for a needle in a haystack.
I do not agree that interest rates are going up any time soon. The economy is too weak for the Feds to raise rates significantly. Mortgages are still hard to qualify for but many people have IRA's just earning pitifully or losing value. I even have some investors with relatives who have money and are tired of earning 1-2% on it that loan on properties.
I am personally buying every piece of real estate I can that provides good cash flow and have replaced about half my annual income with properties. You have little risk if you buy in good areas with several hundred a month in cash flow. The prices can go down or up and you are making money. There is a new book coming out which explains wealth building ( not get rich quick as the seminar junkies sell) and I intend to do seminars next year on investing. If you are interested I can put you on the invitation list, I am doing them for my existing customer base and fellow agents who need to build for retirement.
Cheryl M. White
Broker Associate
ABR,CIPS,CRP,CRS,CSP,GRI,E-PRO,EMS
Avalon Realty @ Keller Williams
281-491-7500
1650 Hwy 6 # 350
Sugar Land, TX 77478
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