With a barrage of bad news spewing from every media outlet, the consumer psyche is going through some "altered states" right now.   Real Estate in 2008 is oh, so different from the "good ol' days"...

If you are doing business the way you used to, wake up and smell the ...  !!!

I've compiled a list of my observations of this market and ideas to help improve your productivity.  Please add some more suggestions of your own!

•1.                  Short sales, foreclosures and REO's.  Three very different entities.  If you still don't know which one is which, get yourself educated right here on AR.  Just go under the "Search" tab and type in each term, then read the hundreds of blogs AND the comments on each subject.  This is Street Real Estate 101, Baby, make no mistake about it!

•2.                  Lease To Own, Lease With Option To Buy.  This is a great vehicle for first time buyers, or buyers with bruised credit.  Many lenders will convert a Lease To Own Agreement, properly seasoned for one year, into a regular loan.  Tell your "Lease To Own" clients to ALWAYS pay by check (to create that paper trail lenders need for that conversion), and to ALWAYS pay on time.  Statistically speaking, 50% of the Lease To Own Buyers walk away from the deal without buying, and the Seller gets to pocket the extra money and sell the property again, so it's an easy sell for the Sellers as well...

•3.                  Owner Financing:  With the Lender's Goody Bag almost empty, this one is becoming more enticing than before.  You can amortize the loan over 30, or even 40 years to get the payments down, and make it all due in 2-3 years.  Hopefully by then, the Buyers have cleaned up their credit and convert that loan to a conventional one.  Hopefully if the market turns by then, they'll have some equity in the property, which will make it that much easier.

•4.                  Contract of Sale, Land Contract of Sale:  I've seen them done even with a mortgage in place; just know that if the lender finds out about it, they can call the loan due.  Easy way to get into a property even when you don't have all your ducks in a row.

•5.                  Fractional Ownership:  Why buy the cow for a pint of milk?  For vacation properties it just makes sense.  Create your own fractional ownership by creating a TIC (Tenancy In Common) with your friends, or family.  You all share in the joy and responsibility of ownership for a very affordable price.

•6.                  Invite your favorite Lenders to speak to your group with regularity.  The mortgage rules and regulations change almost daily.  Without the money, there is no business, honey!  Learn all about the current trends in lending.

•7.                  Familiarize yourself with 1031 Exchanges.  Don't be a do-do bird!  This is the vehicle most investors use; you simply can't be ignorant about it... 

Short sales: Yes!  Sell yourself short by not changing your practice to refect today's Real Estate Environment: NO!

If you have any other bright suggestions to add here, please do so!  Bright ideas help us all!  

Myrtle Beach Homes by Mirela Monte                                Join The Optimist Group!