A Pragmatic Opportunity / Pyramiding 2012...

A pragmatic opportunity / pyramiding 2012... Real estate pyramiding! Until five years ago the people in the know, the people with the secret, the people with the wisdom of their forefathers, ambitious people willing to work for their future, pyramided real estate!

Their were also those who experienced the biggest growth in home ownership since we stopped shooting the aborigines for it, who did so recklessly with out experince, education or an agent with it.

Those who pyramided paper fortunes just like the TV Gurus said, with out education or experience those with out a work ethic! (Make no mistake you must have the real estate education and experience or hirer it to prosper.) 

Those who though they were entitled by being brighter than the masses!

Those who bought believing any and every house was a profit waiting to be collected.

Those who bought without a long term plan.

Those who bought rentals, without regard to cash flow!

Today, and for the foreseeable future like our Grandfathers and Great Grandfathers we need a plan to successfully pyramid a real estate fortune!

Why would we want to pyramid real estate in the era of foreclosure?

The most obvious answer is that we’re not Steve Jobs! Though out our history most fortunes big and humble have been made in real estate. 

Real estate is security! You don’t get foreclosed on because you own real estate, you get forecloses on because you defaulted! Real estate is security, default on rent and you can be homeless in as little as three (3) days depending on your state, default on a mortgage and it takes months, again depending on your state and possibly many months more depending on your lender!

You don’t get forclosed on because your equity flew the coop! Equity only matters when you purchase a house and when you sell a house! The monthly benefit and rents are not dependent on some times fleeting equity.

When you bought a home for it benefits those benefits don’t change with the cycling of real estate values.

When you bought a house to rent, based on cash flow, in most markets rents have been very stable or gone up, because of the demand created by those who defaulted on their mortgages. Rentals keep paying when there is no equity, try to get that from a bank account or stock portfolio!

A pragmatic opportunity / pyramiding 2012... Real estate pyramiding! When your Great Grandparents and most of your Grandparents and Parents got married they pragmatically bought a small "starter home" they bought what they could afford rarely what they wanted to end up with. They set up house keeping made their mortgage payments each month as a matter of pride! They saved what they could, they amortized their mortgage (systematically paid down their loan) and hoped for a little appreciation/inflation and when nature took it’s course (It did or you wouldn’t be here to read this!) They out grew their starter home they sold it and bought a bigger home with the proceeds. Those that could might buy a rental house or two. They paid their mortgage with the rents, got to pocket a little extra spending cash. They saved what they could, they amortized their mortgage (systematically paid down their loan) the hoped for a little appreciation/inflation and when they had enough equity they harvested the equity either by selling the house or borrowing against it to by another rental property, getting more cash flow and more spendable. Ether route is what we call "Real estate pyramiding!" Pyramiding pragmatically using a small doable investment to build towards your dream.

Pragmatically, doing the doable! Pragmatism is not settling for what’s available it’s using what’s available to move towards your goal!

You have choices you can make some pragmatic Land Lord’s payments for him and fill his gas tank or you can build a future! Every one has to live some where and even if your parents let your girlfriend, with her ticking clock move in they’re likely to change the locks as you progress towards the normal 2.4 progeny.

Real estate can still be pyramided!

Two weeks ago I had the distinct pleasure of meeting with Jill Stonebunner from Wellsfargo Bank, here in Houston. (713-577-2525) Jill is a specialist, she and her staff work on only one loan program the very loan program I’ve been promoting as the best opportunity in real estate over the last three years!

I’m not a fan of FHA, but I’m pragmatic and FHA 203k is simply the very best opportunity in today’s market.

FHA 203k, allows a home buyer to purchase a mansion in the ruff, with one loan and have the money to imeatly upgrade it to it’s maximum potential!

FHA 203k lets you buy with only 3.5% of the future/finished value down!

FHA 203k loans are at today’s low rates.

FHA 203k can sometimes be had with as low as a 580 credit score almost always with a 620! Those with a 680 are a shoe in.

It is said that the profit in real estate is made at the time of the deal, it’s true for those that have a plan, the rest depend on luck! FHA 203k, is such a plan. When all you can be sure of is the equity you create, not the appreciation/inflation you pray for. FHA 203k allows the Joe Paycheck to compete with the best of them!

FHA 203k is an owner occupied program! FHA 203k buyers are going to live in their new home for several years then as their needs grow they can use the equity they created, the loan amortization and any blessing available from appreciation/inflation to pyramid themselves towards even bigger dreams.

It is now as it always has been, the wise man pragmatically does the doable while moving towards his goal!