Photo courtesy of Let Ideas Compete’s photostream via Flickr

null

We were cruising along at the speed of molasses one second and the next I landed back in the saddle with a hard thump. I instinctively grabbed the saddle horn to keep from hitting the ground and with my hands still tightly gripped around it, I quickly slipped my feet back in the stirrups and re-adjusted myself in the saddle.

This tall, muscular, grey speckled horse was about as laid back as they come. Always lagging behind all the other horses on every trail ride, he’d get slower and slower until I’d put my feet in the stirrups and tap his flanks a little to make him catch up with his buddies. It was something I never minded, though, because I love a slow, relaxing ride through the beautiful Ozark mountains. But nothing ever spooked him until today. A little trickle of water about 3″ wide was running across the trail and Jasper suddenly felt a need to jump over it!?

We turned around and I looked for what caused him to jump, but there was only one little stream of water. At that point, I thought maybe there was some sort of wild life, like a rabbit, that had been in the trail and then jumped into the bushes to hide. Since it was important for me to know what had spooked Jasper, I decided to try walking over the water again. Without hesitation, he confidently stepped forward like nothing was wrong. After about 4 steps we reached the water and he suddenly crow-hopped over the water again! He didn’t seem all that spooked or scared, so why did he jump over the water instead of stepping over it? I was especially puzzled because he had not problem crossing rivers with water up to his belly! LoL

It was obviously lesson time for Jasper, so we went back and forth over that tiny stream of water about 30 times until he was so totally bored and unbothered by it that he even stepped in it a couple of times. Lesson learned. Good boy, Jasper.

The next day I contacted his previous owner and asked about his little crow-hopping escapade only to be told that nothing in particular had happened that made him start jumping over water that way as far as they knew. They just never went to the trouble of teaching him out of that particular bad habit. But it was usually puddles rather than streams of water, so they’d just walk around the puddles because stepping in or over them wasn’t gonna happen without a “lesson time”. So, essentially, they took the lazy way out and let him keep his bad habit and I inherited it.

I believe this is also why so many politicians in this country continue their offensive habit of making campaign promises they don’t keep after we’ve voted them into office. We don’t teach them out of their bad habits by voting them out of office for not keeping their word to us. But we’re not here to talk politics, so I’ll get back on topic. Sorry for the digression. :)

Photo courtesy of Tambako the Jaguar’s photostream via Flickr

null

You’ve heard the term “there’s safety in numbers”? Well there’s “power in numbers” too. And the mortgage lenders are taking a beating right now from all directions. They’re thrashing every which way, trying to survive the giant puddle they’ve stepped in up to their armpits. While they’re in crisis mode, why not jump in the game and position yourself to profit from riding the market back up? Obviously this is the right time. The trick will be to get in at the right price in the right location with the right terms. History has consistently shown us that the real estate market always recovers, coming back stronger each time. So we already know what the future holds.

Currently we have the best buyer’s market ever and you probably won’t see another one like it in your lifetime. It’s also the biggest foreclosure market ever. Yes – even bigger than during the Great Depression.

Some say there’s no point in doing short sales in this market, but rather to focus on bank owned properties that have already been foreclosed on. I tend to disagree, but that’s just my perspective. I believe both strategies are still viable in this market in the right situation with the right property if we keep our eye on all the variables and adjust accordingly. I’m especially in favor of creating a win/win situation with homeowners who are up to their elbows in alligators because of the current economy.

Let’s talk price now. We’ll say you have a credit score of 750+, or your parents do, and they’re willing to help you get your first house.

If you don’t have a 750+ credit score please, please get started right away on making that happen for yourself.

Let’s also say you’ve got a 25% down payment saved up, although that’s not necessary in every situation. These things alone give you a powerful edge in every market. In this particular market, it’s like having a super sonic advantage.

The lenders are in extreme liquidation mode right now for residential properties. The commercial real estate market “correction” is tumbling right on the heals of the residential market. In fact, commercial real estate prices have fallen about 40% since the fall season of 2009. Because the financial market is experiencing this unprecedented avalanche of events, you’d be smart to get in the game as soon as possible. The free fall in residential property values is noticeably slowing down and will soon begin to reverse. Buy low now so you can sell high later.

For REO’s (Real Estate Owned by banks) make a deep discount offer. Don’t be afraid to insult a lending institution. The institution isn’t human, it doesn’t have feelings. It’s not like making an offer to an individual homeowner who has emotional attachments to their house. And if your Realtor is wimpy and doesn’t feel comfortable with deep discount offers – get a different Realtor. Remember – You’re in Charge!

The lending institutions are having a fire sale right now. They’re selling bundled packages of REO residential properties to investors for as low as 2-5 cents on the dollar!

Previously, the going rate for a bundle of REO’s was 10-20 cents on the dollar. They typically won’t go this low for one property at a time, but I wouldn’t hesitate to offer $25,000 or so on a $100,000 property if the circumstances support it.

So get brave and make a deep discount offer on an REO. “As is” can be a problem on these, so cover yourself by adding appropriate contingencies in the addendum. If you need some suggestions, let me know and I can share some that I’ve successfully used.

If you can find a property that hasn’t been taken back by the bank yet, but the homeowner is desperate to get out of it because it’s on the fast track into foreclosure, make an offer for a short sale purchase. This way you could potentially buy your first home at a deeply discounted price and, at the same time, you’d be helping the homeowner out of a terrible bind. Just know going in that the bank may not go for as deep a discount on short sales as they might on REO’s.

Now, step over the stream and into the game. Be cautious, not afraid. Be smart, not stuck in fear of the unknown. Your financial future will thank you. Remember – You’re in Charge!

Does this seem doable to you? Or do you have questions that need to be answered first? Feel free to share your thoughts and questions. I may not know the answer to your question, but I will do everything possible to find a viable answer for you as soon as possible.

No related posts.

Like this post? Subscribe to my RSS feed and get loads more!