All Forum Posts by: Richard Warren

Most people aren’t able to do this, but offer to seller finance.

Case in point, I purchased an REO several years ago. I was into it for approximately $30k in all and it was worth $75-80k. I sold it very quickly for $85k with $20k down with the balance at 8% interest only with a three-year balloon. My risk was the $10k spread between what I had into it and the buyer’s down payment. To date I have earned more than that $15k in interest and the buyer expects to pay off the $65k note in a few months.

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Any fiat currency can go bust. That will happen when:

a) people around the world lose faith in the currency
b) there is another alternative that is perceived as safer

For more on the German inflation that was mentioned above see:

http://www.biggerpockets.com/renewsblog/2008/09/29/a-bag-of-money-to-buy-a-loaf-of-bread/

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Real estate clubs are a great way to go and they welcome “newbies†like yourself. You can find local clubs by following the links under the local resources on the left side of this page. You can also check out www.meetup.com. Just be aware of the club’s agenda, some are about networking while others are nothing more than sales pitches. Leave your wallet home and you should be ok.

Check this out:
http://www.biggerpockets.com/renewsblog/2008/06/30/getting-the-most-from-your-real-estate-club/

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NOW the banks are worried about who they lent money to. Had they properly qualified borrowers up front we wouldn’t have the mess we have now. So their knee-jerk reaction is to cut everybody’s credit. Hmmmm, the people who pay their bills responsibly are the ones that the banks make a profit on, so lets cut the credit of the responsible people. Nuts.

There is a whole lot more trouble ahead so fasten your seatbelts!

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I had a similar experience with Amex. In addition to my WAMU HELOC being cut by $100k, my Amex was cut as well. I had a $27,000 line that was cut to $10,000. Never missed a payment and a FICO in the mid 700s. I received a letter from Amex stating that the line was being cut because I had “high risk†loans on my credit report. These are investment property loans that have always been paid and the LTV averages 30%….but that’s high risk. Apparently anything that isn’t a loan on a personal residence is considered high risk regardless of the actual circumstances.

A source of funds that I'm using now is my solo 401(k), which allows you to borrow 50% of the value up to $50,000. At least there any interest goes back into my own account. Just shows that we need to adapt to the changing investment environment.

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Originally posted by Jeff Tumbarello:

We have been growing M3 and M2 by leaps and bounds since we inflated our way out of the REOS trust Crisis.

There is a lot that the Caped Crusaders of The Beltway don’t tell us. They have probably already figured out that they are going to inflate their way out of this mess. So the Government solution is to borrow, borrow and borrow, and when they’re are done, borrow some more.

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Don't panic.

This video explains it all:
http://patriotroom.com/fred-thompson-at-his-snarkiest-best/

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That was awesome, too bad it’s so true.

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It really comes down to what people expect. People buy a car without any expectation that it will appreciate in value. However, they fully expect that their house will only go up.

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There is no way to properly answer that question without knowing what you are attempting to do. Are you looking to hold rentals, flip, wholesale?

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