I was sitting in my office today beside our mortgage lender when a fellow agent started inquiring about a buyer he had who wanted to purchase a three unit investment property and live in the one with no money down and a 502 credit score. He was asking if there is anything that she can do. As they were discussing this another agent walked by and said,
"Don't be doing deals that will cause another crash in market in three years."
The agent who had the buyer was very upset that the other agent had said this, and said, "I'm sorry I don't only work with high-end clients."
It got me questioning though, obviously this deal was going to be a tough deal for him to get his buyer funded. In this slow market we all are desperately trying to save every deal and make them all work. Not only for ourselves, but also to represent our buyers and sellers, but what if we are only setting ourselves up for another real estate crash.
We are creating a cycle, by trying to jump start the real estate market again and getting all our buyers financing. We are inevitably creating a future crash.
I know personally I have done a few deals within the past month that my buyers barely qualified to purchase. I'm sure that everyone is doing these deals. I don't want to turn buyers away and I think everyone deserves the opportunity to purchase a home, but it's a double ended sword.