All Forum Posts by: Praveen Kumar

As property investors we have to find innovative solutions not only to survive but thrive.

There seems to be no point in blaming the government, the banks or the market situation.

The situation will remain challenging till such time finance which is the life blood of property remains tight. As property investors we have to keep our ears close to the ground to see the slightest shift to take advantage of the situation.

I have written two articles that may help clarify what might happen in the near future [LINK REMOVED] and [LINK REMOVED]

I hope you enjoy my research.

Praveen

Interest rates will start rising as soon as the economy stabilizes. Fix your rate at the first sign of increase in ARM.

Go for a transferable mortgage in case you wish to sell the property in couple of years time.

Praveen

In the current market when there is possibility of prices going down further the correct strategy will be to rehab and hold. If you can resell and make a profit then it is fine but you can not bank on it.

No statistics or data can define your strategy. It will remain a subjective judgment as there are so many forces at play. Not one economist predicted the crash of 2008.

Plan for the worst scenario and take advantage of any opportunity that comes along the way.

Buy below value, rehab to increase value and hold in the current market.

Praveen

Firstly find the best company in the area. Good real estate companies generally recruit qualified agents. Then within the company find the top performing agent for the past 3 years in the area where you wish to purchase the property.

Praveen Kumar

The owners owe a very high amount to the lender and this will restrict your ability to negotiate until and unless the vendor has deep pockets to take the loss.

According to you this is not a foreclosure or a short sale. So who is going to take the loss? Definitely not the bank at this stage.

The gap in the asking price and your offer is so large that it will be impossible to close the gap by increments of $5000.

You should firstly condition the real estate agent as to where you are so that he can get you a realistic feed back from the vendor. Based on the feed back you should make up your mind if it worth your time and effort to pursue the deal.

Praveen