Is the Non QM market a bubble?

Question

Hey All,I have a question for everyone who is currently involved and invested in the real estate market.

With private lenders becoming increasingly prevalent in this market place, will there higher risk privately securitized mortgage notes cause the same collapse as the previous government backed securities.

I see a lot of no income and no doc loans coming back onto the market, is this the writing on the wall that we should all be aware of? Thank You fellow investors 🙏🏼🍾 Rule#1 Never lose money.

Oscar Cardenas · Answer

Well, most private money is still careful in that they make sure the deal is worth the risk. Most of the deals hard money is in have a nice equity cushion for a quick break even sale if a downturn comes our way.

Big difference from the crash where lenders were loaning to anyone with a pulse for any deal.Plus the full equity cash out Refis of the past... Average equity sitting in homes is very high compared to before the crash.

My main concern is how much consumer debt is now held in Student loans which cannot be cleared with bankruptcy. They will lower minimum payments based on income and stop payments based on loss of employment but they will always be there (now with accumulated interest) to prevent real recovery when someone is back on their feet. I am wondering if the next crash will be more of a small crash followed by a slow decline.