The Sky Is Falling, The Sky Is Falling!!!!
Hey, did you know that the stock market is dropping? Did you know that the real estate market is dropping? What am I supposed to do? The sky is falling! The sky is falling! Before you decide to climb into a cave and wait for things to get better or just wait for some bailout program. May I suggest a solution?
First of all I must put out my disclaimer. I am a real estate guy, not a stock market guy. I’ve seen stocks go to zero. I’ve never seen a piece of real estate go to zero. I’ve seen some big declines but never to zero. Those big declines are creating some MONGO bargains right now in the real estate market. I am concerned because of the lack of traditional funding or financing to acquire these mongo bargains. Did you notice the word “traditional”? What is “traditional” financing? You know. Finding a property that you’re excited about and you want to buy, so you go to your banker or mortgage guy and they set up financing for you to buy it. In the past, if you had good or even reasonable credit you could buy the house with little or nothing down. But now with the credit crunch, it’s very difficult to get a “traditional” mortgage of any kind on an investment property. That’s a house other than your personal residence. Personal residence mortgages are still available but you may have to put a bigger percentage of money down on the property.
What’s a budding investor to do? Learn how to acquire property with ”non-traditional” funding. Such as seller carry back, private investor money, use an IRA account (yours or perhaps someone else’s) or my personal favorite; “subject to” purchases. Subject to allows you to acquire the property with nothing out of pocket, the financing is already in place, you didn’t have to qualify for it and it allows you to resell the property any way you choose. Lease to own, owner finance, or even just rent it out and let the equity grow in the property while someone else makes the payments. Sure, there are issues with rentals and leases but there are huge future rewards.
The point is: Drum roll please! Don’t sit around waiting for someone to do something for you. The more you sit and wait, the more likely someone or a government agency will do something Too you, not For you. I will fight the urge to go political here. Be an entrepreneur. Create your circumstance, don’t be a victim of a circumstance! Take action, be bold, be brave. This economic time is creating some devastating losses right now. It is also creating some never before seen opportunities. Yeah, I’m definitely a “glass half full” kind of guy.
Your mission: should you decide to accept, is to get some training, be bold, step up and out of that cave you retreated too. You will never realize your destiny while sitting back and waiting for someone to throw you a bone. Remember, the early bird gets the worm and the second mouse gets the cheese, oops, scratch that second part. Actually, that’s correct about the mouse. Get training, learn from what others have done. If it’s good stuff, copy it. If it’s bad stuff, learn from the mistake and modify it. If you have training and plug into a power group you can learn and leverage your way to an MBA (that’s a “Massive Bank Account”).
I am a real estate investor guy first but I also have other businesses or “streams of income”. Always have multiple streams of income. If real estate tanks then you can fall back on stocks or computer repair or carpentry, or online businesses, or auto mechanics. Get real good at one primary thing but have other things going at the same time. If one goes away then crank up one of the others that have been on the back burner.
If real estate is of interest to you, then plug into this site www.mokanrein.com and make some connections. Get some training Real Investment Mentorship & Coaching so you can benefit from the first mouse’s mistakes. (What a cheesy line)
As always, your comments are greatly appreciated.
Gary Hard
