Hang on people! I must admit, we get caught up in the FORECLOSURE, SHORT SALE, DISTRESS PROPERTY talk and business. We sometimes forget the MAJORITY OF PEOPLE are not in distress on their mortgages. THEY MAY BE TIGHT, there may be PAIN in the household, but there alot of people who have EQUITY and really could add to their family wealth or CREATE family wealth in this market! What do I mean? Well look at these two basic examples:
1) What if I have some equity in my home and could take part of it and purchase a property for lets say $120,000. Let say I had to put 25% down which would be $30,000. That means I am financing $90,000. What if I was able to get 5.5% interest rate for a 30 year mortgage? That would make my payment approximately $ 512.00 month NOT INCLUDING taxes and insurance. Lets say this is a 3 BEDROOM HOUSE that I can rent for $1500 a month. That is $1,000 a month of possible positive cash flow. Is this scenario realistic? ABSOLUTELY! Think about it that is $12,000 a year of positive income......What could your family do with an additional $12,000 a year? What if you used it to pay off the mortgage on EITHER of the properties? What if that $12,000 a year went into a "safe" investment vehicle or what if you saved it and could now purchase ANOTHER property generating the same rate of return? JUST A THOUGHT.
2) Maybe you are not looking to invest and maybe your home is worth less than it was 5 years ago, but suppose you purchased it 15 or 20 years ago and there are homes you like that would have cost you 1 million dollars previously, but now are worth $600,000 or so. Is that possible? ABSOLETYLY! What if you could sell your home and put enough money down on that newer, dream home and have the same or close to the same payment you have for that current home you never took money out of? JUST A THOUGHT.
There is activity going on in this market place OUTSIDE of distress properties. TAKE ADVANTAGE OF BOTH! Remember my slogan: No matter what you are going through in life, it is a temporary condition, and it truly is a great life! God Bless.
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