If you haven’t heard, the subprime market is a disaster these days. “Latest count of major US mortgage lenders that have croaked since late 2006” has now reached a disastrous number: 50

We’re staring some scary circumstances in the face as investors and while I fear some of the consequences with interest rates and diminishing programs for investors, I realize there is still hope.

It’s important to recognize that as lending laws and rules tighten up and change, so does the market. More and more sellers are left with homes on the market for longer periods of time and as a result, the prices are dropping because people can’t get the loans they once could. So, the financing has actually gotten a little bit more fun these days. Now, you’ve got sellers who are dying to move their properties and not only will we be able to get better prices in many markets, we’ll also be getting terms that work to our advantage as investors.

For all your damsels in distress, never fear. Seller Financing is here.

In the wake of so much turmoil, those who are on top of their game will recognize that there is a “time and a season for everything” under the sun. Ladies and gentleman, it’s time for the sellers to start coughing up some better terms.

So, for all you nervous investors, lay your worries to rest. The investment market just got a little bit more fun.

Stop by your local desperate seller for better prices and more interesting terms.

 

4 Comments on It's a Dark Dark World

APR
06
2007
245,807 Points 5 Featured Posts Localism Sponsor Outside Blog
Agents today have no recolection of 18% plus interest rates. The late '70's and early '80's were the fun times. Articles of Agreement was the only way (ie. land contract, contract for deed). Agents with cash buyers could name their price. Problem today is that Buyers can't rub 2 nickels together.
3:25pm • #1
Derek, good luck and hang in there. I remember paying 24 % for commercial loans for my company, a public utility. We were financing a large project and had some subordinated loans that carried that rate for a while. David, could you write a post to explain some of the terms you mentioned in greater detail. I'm sure there are a lot of agents and others who would be happy to read it.
4:04pm • #2
168,775 Points Outside Blog

24% wow that is amazing !!!!! The highest rate i ever closed on was a 13.99 % and that was a hard money first lien.

Eddy

6:47pm • #3
1 Featured Post
Good thoughts, guys. It's funny to hear you older guys discussing those higher interest rates because most of us have never experienced those types of rates. Thank God for that!

I don't think we're headed for times like that at this point, but just don't want investors to lose hope in the market when their information is really based on a lack of knowledge and experience.  
8:43pm • #4

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Derek Guyer

Indianapolis, IN

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