Posted by Michael Morrongiello on August 29, 2008 at 18:47:59:
In Reply to: Re: Focus is on EQUITY & CREDIT these days posted by Bob Smith on August 29, 2008 at 08:15:22:
Bob:
I read the "tea leaves" differently...without sounding too self serving;Fannie / Freddie set the "tone" with their guidelines and parameters for the rest of the loan industry.
Right now they are "puking" up so many bad loans they bought and were forced to buy in these back door deals to bail out many of the banks and brokerage houses and for probably the forseeable future - they will not look upon INVESTORS kindly.
Regardless of whether this is an "official" bail out or not of Fannie / Freddie - Expect guidelines to become MORE STRINGENT not less. Here is just a tip of what are seeing right now;
Limitation on # of loans for investors, gifted or granted down payment restrictions for sellers to credit towards buyers, strict income documentation and debt to income documentation and ratio requirements, continued restrictive seasoning of ownership issues, restricted cash out refinancigs, and on and on...
If you BUY right, and then structure and sell to the "right" type buyer by manufacturing your own financing (again focusing on EQUITY and CREDIT - not the light down payment marginal credit buyers whose loans are currenthly being regurgitated of the past few years)- you will be able to continue to thrive.
2nd lien "paper" is often trading at 25% to 40% or less < on the dollar these days...
The time is NOW to learn about and implement more of your own financing into your buy / sell activities.
Continued best to your success;
Michael Morrongiello
Paper Practioner
www.sunvestinc.com
Author of the following home study courses;Paper Into Cash - The Convertible Currency - How to Effectively Create Marketable Real Estate Notes
&
The Unity of Real Estate & "Paper" - Advanced techniques for both the acquisition and disposition of properties using Real Estate "paper"
- Correction to max number of agency loans SoCalGal 20:12:20 08/29/08 (0)