Hey Dean Graziosi here. Have you seen the headlines on absolutely everything out there. We are in the worst real estate market in ages maybe ever. Foreclosures are rising faster than banks can handle and prices have dropped for sure. I don’t think they will drop much further but I would bet to say they will be going sideways for a few more years. If you are hoping that this down cycle is over and the market is going to turn soon and start going straight up, I would say to reevaluate the situation. We are in a down market for sure with no quick turnaround in site.
There are lots of reasons that we are currently in a down cycle in real estate. In fact this is nothing new – real estate has been going through cycles since it started being bought and sold. But we are in a very unique place in time. Because of interest rates, economy and basically just the cycling of real estate I am pretty confident we would be in a down cycle right now no matter what. But we hit a huge down cycle. The likes of which are unmatched. WHY? Irresponsible loans by banks. In my Think A Little Different course and my Be A real Estate Millionaire book I teach you how 100% financing, interest only loans and 3 year arms can be an investors best friend. But for the regular person buying a home for them and their families these loans can be devastating. And unfortunately that is what is happening to so many Americas right now.
They got in to a house with no money down, with a low fixed rate for three years and paid interest only. Well those loans are coming due and it is causing peoples payments to go up 20% to 100%. In fact there is over 1.5 Trillion dollars in 3 years arms coming due and people just can’t make the payments and this is causing about 28,000 foreclosures a week to hit the market.. Staggering numbers!!! I am not writing this entry to bash banks - -but if I was I bet to say that just like the credit companies getting in trouble for over charging on interest rates I truly believe banks will soon come under the spotlight for letting unethical mortgage brokers offer loans to people they knew would default in 3 years so they could make the quick buck. If you are in this situation I am sorry. Remember to focus on solutions not eh problem and there are defiantly solutions out there.
Now on the opposite end of the spectrum with all this craziness I have explained as fast as I can explain. I don’t think there has ever been a better time in history for the average person to make a fortune in real estate. Foreclosures are abundant, banks are overloaded and interest rates are still very good. And what’s even better is that there are strategies to make buying foreclosure a win-win for everyone. You can relieve someone of a payment they can’t handle and STOP the foreclosure process, you can take a property off of the banks hands that they do not want to own and you can buy homes for pennies on the dollar and rent or sell them for huge profits. This is not the time to be running away from Real Estate rather running towards it…
Do yours elf a favor this week. Go online or go to your local town hall or courthouse and get a list of properties in your area that are in default (Late on payments but not foreclosed yet) and/or foreclosure listings and see how much opportunity their actually is.
Here is a quick thing you can do that I give to my real estate students a few days before they even get my course in the mail to help them set a foundation for long lasting success. Go to www.deansfaststart.com and check it out. You will love the exercise no matter what you are doing right now.
Best Regards
Dean Graziosi
P.S. check out my new book Be A Real Estate Millionaire at Amazon
P.P.S – Please excuse my horrible grammar. I could definitely not make a living with those skills. But when it comes to real estate then I can help you thereJ
