All Forum Posts by: Joseph M.

Yeah I don't see the point of hard money lenders that are going to ask for the same requirements as Fannie or a bank. It seems like they want to have their cake and eat it too. I guess they can do want though.

Another thing is that many REOs that are a good deal need work and they are often listed as "not being ale to qualify for traditional financing" so it seems it is better to pay the additional points and interest (for the short term) rather than missing out on the deal.

This is why I cringe when I hear about billions of tax payer dollars being used to "stop foreclosures". All the people that are scared of real estate now are the ones that are going to be eager to purchase a bunch of properties that don't cash flow when the newspapers, tv ,etc tells them "now is the time to buy". This could be the opportunity of a lifetime to acquire cash flow properties.

The media and their friends tell them that "real estate is risky now" and that's what they believe. If values have fallen greatly, most of the risk has been taken out.

It is an attempt to make average Americans feel better..but i'm sure they will find loopholes around it. These execs have already looted literally hundreds of billions..maybe trillions of tax payer money...$500,000 is too much anyways.

This doesn't sound like too great an idea as it seems filled with restrictions that could impede or slow down the sale of homes as well at the rehab ,etc.

I know a lot of these programs restrict purchase from 'regular investors' , but I think this is a mistake. Investors generally have their own money in the game so it is in their best interest to get the properties into livable condition or find someone who will be willing to do the rehab.

We need to create incentives for 'mom and pop' investors like us on this board , I don't think the local cities are going to be able to effectively manage a large number of properties.

Also why should we be using tax payer money for these organizations to do this work. Then we have to pay salaries for all these people. It just over complicates the issue.

I agree that banks generally don't want to hold on to REOs, but I wonder how the TARP money is changing their attitude. It seems with banks receiving so many billions that they might be less motivated to sell off their REOs.

I wouldn't totally rule out California as there are areas that have really been hit by foreclosures such as Kern county where prices have really come down. Homes that sold for over 200k in 06' down to 50k or less. Rents for 3bed homes seem to be around $1000/mo . Might not be as good as something out of state but within a 2 hour drive of Southern CA. Better than buying something for $300,000 that would barely rent out for $2000 a month.

When I looked at Vegas and Phoenix recently I was amazed how much prices have come down there as well. I would say understand the area before you invest anywhere.