The American dream is to have full ownership of your primary residence, paid free and clear AND to acquire more real estate as investments and do the same. To obtain this you must learn the laws of money and how it can work for you.
Now is the time to buy. If you are not credit worthy or dont have the cash now, start getting your credit together and start saving cash to buy. The ability to procure financing from a bank or financial institution is based on 4 factors;
1. Credit - You need to have between 3-4 tradelines that are current on their payments.
2. Capacity (Income) - You must QUALIFY for the loan. This specifically means that whatever amount of money you want to borrow, based on your income, will depend on your ability to pay the loan back.
3. Cash - You must have a downpayment. The 100% financing programs are available, but don't rely on them. A good 5-10% downpayment should get you in the door. Some banks want to see 2-3 months of reserves (PITI)
4 Collateral - The property must appraise for whatever the purchase price is of the house. This has been a serious issue in 2008 because of the numer of foreclosures currently available on the market.
If you don't already have one, find a local realtor and have them get you in contact with a mortgage company that has programs for you to get approved.
The REAL investors are slowly starting to come out and buy real estate at a cheap price. There are several ways to gain wealth in real estate, but I am starting to believe that the buy and hold strategy is the best one. As long as you BUY RIGHT than you should have several exit strategies just in case things dont go as planned.
I am working with several real estate investors now (With cash) that are putting in offers that the banks are starting to consider and I can't believe some of the numbers that they are getting them for. The key now is CASH and Relationships.
CASH IS KING - If you have access to funds than you should be investing in real estate NOW, because even if the market doesnt recover until after 2012, if you BUY RIGHT it doesnt matter.
How to buy right in any market......coming soon.
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