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How to Safely Buy Real Estate in Troubled Times

By
Real Estate Agent with PLACE, Brokered by eXp Realty. Member, Group 46:10 Network AZ Lic# SA663942000

While the down turn in the market has affected tens of thousands of people negatively, there is an upside.  I want to be very sensative to those that have taken great losses in this market.  If it's any consolation, I took a very big loss myself in more ways than one as the market tanked. I am happy say that I had no part in any of the shady loans that were written over the past several years.  I had people on more than one occasion tell me about this person or that person who made all of this money as a lender, wondering why I wasn't lving like a king.Well, some of those people are actually headed to jail, and thankfully I have a very clear conscience.

So now it's rebuilding time for both those that lost homes and those that never were able to invest in a home of their own.  There are several strategies out there for both the first time buyer and those that are recovering to acquire propperties.

For first time buyer, I say talk to a lender and see where you stand. You might be surprised to know that you can still buy a home with a decent interest rate, with very little out of pocket (3% is ideal).

If you have had a loss, such as a foreclosure or bankruptcy, then things will be very different for you.  For the next 2-3 years as you recover, your best bet is one of the following:

  • Owner Financed Properties
  • Rent To Own Properties
  • Lease Purchase Properties

Each has it's ups and downs, but most of all make sure you are ready for the committment.  Not owning a home is not the end of the world.  In fact, if you are going to buy, make sure you are buying for the long haul, because while it is a great time to buy, there is not guarantee that you will see much of an increase for some time to come.A great book to help you recover is The Bankruptcy Mortgage Book. It gives you all you need to recover, and it also details each of the above scenarios.

 

 

Comments(8)

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Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate

Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.

Jun 25, 2008 01:49 PM
Stefan Geyer
SOA Realty - Aurora, CO

Thanks for your post and welcome to Active Rain!

Jun 25, 2008 02:05 PM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Jun 25, 2008 02:52 PM
Scott Magaw
The Bill Kennedy Team - Keller Williams Realty - Spartanburg, SC

Welcome to Active Rain!  This is a great community for sharing as well as learning. I hope that you enjoy your time here, and I look forward to reading some of your future posts!

Jun 25, 2008 03:53 PM
Crystal Corr
Keller Williams Greenville Central - Simpsonville, SC

Welcome to Active Rain. I hope you will enjoy it and learn as much as I do from it! Happy Blogging.

Jun 26, 2008 02:37 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi, welcome to Active Rain! I hope to see more of your blogs in the future. Learn from others, share your knowledge and experiences and enjoy yourself! Take care! ---Kirk.

Jun 26, 2008 03:05 AM
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent

Welcome to ActiveRain. Congratulations on your first post. Get around and check out the community, you'll quickly figure out how to supercharge your blogging skills.

Jun 26, 2008 03:38 PM
Neal Barnes
Starstate Realty - Killeen, TX
Broker, REALTOR, ABR, CRS, GRI, SRES, SRS.

Hi Anthony - Welcome to ActiveRain.  I look forward to reading your future post.  Have a great day!!!

Oct 28, 2008 04:13 PM