Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
mrudd44

What Gives

Recommended Posts

Can someone shed some light on financing options- hard money is no longer truly hard money. I would like to purchase Detroit single-family homes and hold them. This place is a gold mine if you have money to buy and hold here. The rents are high to realize a great cashflow. There are great deals listed that can be purchased quickly and at a great price with cash. Lending institutions has made it nearly impossible to do simos. What gives? And why isn't there much activity on this forum. Did everyone give up? I thought the point of the forums was to help one another get through this b.s. :glare::rolleyes:

Share this post


Link to post
Share on other sites

What gives? The credit markets have dried up. CitiBank is battling to stay afloat. Other banks have gone under. Lenders are burdened with uncollectible debts and loans, and wary to loan out any more money. It's hard enough to get a mortgage if you're looking to buy an owner occupied property with ten percent down. Investor loans in areas the lenders consider risky, (Detroit, for example), are even more difficult to obtain. Try going to small, local lenders in the area where the properties you want to buy are located. I think you'll have a better chance getting funded.

As for the lessened activity on the board, that's a reflection of the real estate market, too. I suspect many folks have decided this is not a good time to be involved in real estate. They're wrong, of course. But perception is reality. And it's not only here. Most every real estate board I know has seen a marked drop off in activity. And a few gurus I have spoken to have all said that sales of their products these days is all but nonexistent.

Share this post


Link to post
Share on other sites

I've noticed the same scenario on the other boards as well.

However, this forum has been a constant flow of activity and

discussion ever since I joined up in 2003.

Although it's not as active as yesteryear, it still remains

my personal fav.

 

As Michael stated, there is a correlation with the real estate market

and real estate discussion boards.

 

I think what Michael has been doing with his rental/marketing deals

is ideal for stagnant home sales.

Something I'm fixing to ramp up in my area (with a small addition/twist)...not that I need to, but

the Playstation 3 gets mundane after a while and I'm saving up for

a new HD TV.

Share this post


Link to post
Share on other sites

Thanks guys and gals for the great responses. MichaelC, I fully agree but I just don't understand the logic behind lending right now. And the government hasn't made things better by pouring billions into the mortgage industry to not lend to those on "mainstreet". What's the point? I thought the purpose was to unfreeze not create glaciers. I started investing in 2002-2003, wrong time! I wish I could've picked up a few homes for 3k- 10k- my properties would have cash flowed a whole hell of a lot better. Thanks for the advice regarding checking local banks- they have tightened all the way as well. I used a few banks and hard money here- paid them back and everything- they won't lend to investors anymore. My private investors are scared- everyone wants a return in 30 to 60 days and don't trust buyers can get a mortgage. I think this is the time millionaires are made. Buy and hold- what do you all think?

Share this post


Link to post
Share on other sites
My private investors are scared- everyone wants a return in 30 to 60 days and don't trust buyers can get a mortgage. I think this is the time millionaires are made. Buy and hold- what do you all think?
I'm sensing the same thing from private lenders, too. Fear is running rampant on Main Street. I've been working a few potential private lenders who, under different economic conditions, would be eager to participate. But when push comes to shove, they are ultimately deciding to play it safe and keep their funds in a CD, even if it's paying 3.5%. :rolleyes:

Buy and hold is probably the best play right now, assuming you are buying at a good price, and the property cash flows from the outset.

Share this post


Link to post
Share on other sites
Can someone shed some light on financing options- hard money is no longer truly hard money. I would like to purchase Detroit single-family homes and hold them. This place is a gold mine if you have money to buy and hold here. The rents are high to realize a great cashflow. There are great deals listed that can be purchased quickly and at a great price with cash. Lending institutions has made it nearly impossible to do simos. What gives? And why isn't there much activity on this forum. Did everyone give up? I thought the point of the forums was to help one another get through this b.s. :glare::rolleyes:

 

Shoot me an email and I'll see if I can help you. I lend and purchase in Detroit. But I may be able to just give you a few pointers that may help you.

Regards,

Adam

mosaicrealestate@aol.com

Share this post


Link to post
Share on other sites

×
×
  • Create New...