When is the Real Estate Market going to turn around?
Some experts say that the housing market will not turn around until late in 2011.
One thing for sure is that there is a lot of profit to be made in foreclosures. Either buying foreclosures to hold (which I have done many times) , selling foreclosures as a professional (the commission is often double, I did this thousands of times) or buying foreclosures to live in with your family (I haven’t done that…yet).
The positive side of foreclosures is that the word has never
been in the collective conscience of the American home buyer to this degree ever before. I mean if CNN and the other news channels did as much to promote Coca-Cola as they do promoting foreclosures it would cost Billions!
So the bad news is actually good news if you use it to your advantage. With quadruple the homes going into foreclosure; there are a lot of opportunities to be had, especially when the home buying market is weak. If you have cash, can get some cash or can borrow some cash….buy.
A friend of mine is buying houses every week or so at 30 to 45 cents on the dollar. Even if he just resells them at 65 cents on the dollar he makes a tidy sum.
I personally hate to sell assets, especially during a weak market, but if you have access to only a little money and don’t have the ability to borrow, a little can become a lot just by buying and selling and repeating the process. I have had a lot of success selling HUD foreclosures.
There is nothing better than selling a home and being paid double commission. I mean why would I do anything else?
HUD pays up to 5% commission and so does the VA so selling a house pays more and as far as I am concerned they are easier, which means I can sell more of them.
In short, no one knows when the market is going to turn around. But not knowing should not stop you from acting. It hasn’t stopped me or my friends.
Reading the article correctly you pick up one large clue. It was written by a Real Estate Agent as HUD, FHA, VA, FHMA does not pay commissions to a buyer that is not a Real Estate Agent, even if there is no Real Estate Agent Involved, do not expect to get a discount, in fact unless you are a real estate professional, a license does not make you a "professional" in knowledge just legal to get paid, I would not suggest trying it without a GOOD Real estate Agent, and there are far less good ones than licensed ones, same for Loan Agent's, orginators, Brokers, etc., so when times are easy, it is not hard to answer a phoine and say ues it is a great time to refinance, or buy as rates are low, but if you are in a market that is still falling, or has a hidden overhang of waiting to be filed foreclosures, the low-down is quickly wiped out, also a quick resale, appriser's are required to note any, including recent forclosure purchases, in considetring the value even just listing the property has an impact, it also impacts every other house in the area, so the implied "flippimng" is not as easy as he author makes it sound, first off lenders have become much more strict in their requirements, they can always be stricter than FHA, FNMA, tc. even if selling to them as too many of them got burned and the last thing they want is another forclosure, so many are erroring on the side of too strict while pre-2007 they were basically giving loans away on what was called NINJA ideas No-Income, No-Assets, Just Apply, too bad that was also the training most Loan Orginators got, as well as Real estate Agents, also watch out for Dual Agency, or who the Real Estate Agent represents, they will protect their commission and try and take both sides if they are ametures with a license, a little knowledge is a dangerious thing and too many lay-men tthink a license equals knowledge and professionalism after all "the bank would not have given me the loan unless they thought i was qualified" is a common excuse you hear from the pre-2007 (lenders strated tightenin well before the crash was recognized by the makority of people as they saw ttheir loans from 1-2 years bfore suddenly start going bad or a large increase in 1st or early payment period defaults which 1 30 day late FHA loan can hold up the pool certification on millions of dollars of other loans thus makeing the entire pool ineligible for dale to Ginnie mae, the majority of FHA and VA loans are sold there in pools, though individual loans can be sold usually the buyer does not want to buy another lender's problems, so "Double commisions why would I do anything else." Well the fact that a huge number of Real Estate nAgents are very porrly trained, as are a lot of Loan Agent's, their sole goal is the commission, not always their client's best interest, the same can be said about a lot of Loan Orginators. So I am sure I will get s lot of negative feedback I owned a Mortgage Bank, am a qualified FNMA, FHLMC, FHA DE, and VA Automatic Underwriter and spent time working every department including being the top Loan Orginator for several straight years, it helps when you know how to underwrite better than most underwriters, and I shuttered when I would hear some of the comments made before the current economic coditions as I had first hand experience with bad markets and good and back to bad yet so often I would hear a Real estate Agent say "Real estate in ________ area never goes down, yet I had dealt with drops larger than the current drops in that exact market, you try and call smeone that paid 0,000 for a "Luxury Resort Condo 5 years before and the appraisal just came back at ,000 yet their Agreementof Sale orLand Contract or Contract for Deed due to the seller is 0,000, you would be surprised at their shock, then dismay , and of course the real estate Agent is long gone with their commission.;' So read the article carefully as it is obvious the author is NOT HUD but a real estate agent. "There is nothing better than selling a home and being paid double commission. I mean why would I do anything else?
HUD pays up to 5% commission and so does the VA so selling a house pays more and as far as I am concerned they are easier, which means I can sell more of them." <== True but only if you are a Real estate Agent, and they can represent themselves and get paid, so can Loan Orginators but they get paid differntly and not by the Seller in this case HUD, FHA, VA.
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HUD pays up to 5% commission and so does the VA so selling a house pays more and as far as I am concerned they are easier, which means I can sell more of them." <== True but only if you are a Real estate Agent, and they can represent themselves and get paid, so can Loan Orginators but they get paid differntly and not by the Seller in this case HUD, FHA, VA.