Real estate investing will never be the same, but does it ever remain the same? No. Like every industry, there are always changes-some good/some bad. Nevertheless, the wise investor will roll with the punches. This is a great reason why buying many of the REI programs out there isn’t wise. Methods don’t last forever, so get a qualified mentor with decades of experience who can adjust with the changes the market brings. Be open-minded and ready to make changes yourself. Only the strong survive!
Left under the ominous shadow of the megabanks is the bruised and tattered small real estate investor. The large lending institutions have brutalized the businesses of many small investors who were only out to turn a modest profit from turning a polished property…something the banks wouldn’t typically do.
It used to be that whenever we would hear about an REO we would get excited. Since they were so uncommon an investor would feel like they had struck gold….not any more, though! The term “REO” represents more of a retail proposition rather than a bargain. Lenders have been flexing their muscles and held out far longer than logic would dictate until the market stagnated to the demise of the industry as a whole. I personally know once-successful Realtors® who have been forced to file bankruptcy as a result of the stranglehold the lenders have placed on their escrows. Repeatedly, escrows fall off and they need to start over again.
From my experience and continued research, I can confidently claim that without the investor, the real estate market would be an entirely different ball game. Over the last 2 years it has been the investor that has kept the market somewhat alive. There is still a large segment of the buying public who will not touch a home that is not in pristine shape. That’s just human nature.
One of the ways my team has fought back is by making things happen with private money. This is, in fact, a productive way of profitably operating our REI business while boycotting the Godzilla-like banks who leave a wake of devastation everywhere they go. Private money has helped many of my students and clients to make things happen quickly and without sterling credit.
Of course, as a leading real estate mentor, I teach and employ a proprietary system in which we can get around the lender-generated mine fields. We could stay and cry about the changes being made or we can be proactive and change with the times. In my company, we have chosen the latter.
Real estate investing will never be the same, but does it ever remain the same? No. Like every industry, there are always changes-some good/some bad. Nevertheless, the wise investor will roll with the punches. This is a great reason why buying many of the REI programs out there isn’t wise. Methods don’t last forever, so get a qualified mentor with decades of experience who can adjust with the changes the market brings. Be open-minded and ready to make changes yourself. Only the strong survive!
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