Are we going to return to the times of Jimmy Carter. If the banks don't have money to lend, then what? In the old days business took place with trading something that represent value. Maybe a couple of pigs to repair the wagon. We have moved on from paying your dentist with eggs, and a side of ham. So if lenders tighten up what are our options.
To start with, a lot of owners do have equity in their properties. I remember the second piece of property I bought in Maui, was an agreement of sale. I was able to put 20% down and use my cash to build my home with. The seller was happy to receive the 20% in cash and interest only till I refinanced my completed project. With interest that you can receive with your money sitting in the bank, Maybe you become the bank with a Purchase Money Mortgage, and you collect the interest. I am thinking we need to be thinking outside the box. So just maybe this will be a winning factor for buyers and sellers.
Steve Nickens R(S), GRI, ABR
The Wailea Group LLC
3750 Wailea Alanui, Suite 5WE
Wailea, Maui, Hi 96753