Decade After Housing Peaked: Owners Richer, Renters Hurting

[313 wayz]

what about first time buyers with decent credit?

FHA loan. 3.5% down. Alot better than 20% down.

Also, I think the minimum credit score needed is 620 for FHA loans, so that helps out people who have had credit challenges in the past

 

[EmM HoLLa.]

Hey, Whoever wrote that article is an asshole and doesn't know what they're talking about. It's not about how much money you have to put down on a house. It's about that credit score. I can get anyone on this forum to meet the requirements for an FHA loan that only requires 3.5% down payment on a home.

Foreclosures are akin to gold my niggas. Buy them while you can. To put it into perspective, a 300k house is about to be foreclosed on for a say 90k debt. Foreclosures stay on credit reports for up to 7 yrs unless bankruptcy, but who wants that on the credit report right? You offer that person the full 90k and some restart money say 35k. That's 125k investment for a property that's worth more than twice that. Other people's Debt can make you a millionaire.

Can we get more detail into this?. How do you go about making such an offer to a homeowner that is going through foreclosure?.

1.Pre-foreclosure list

2. Once you have that list, mailing campaign. Pretty much; I know times are difficult and this is a sensitive situation. I'd like to offer my services whether it's getting you a new mortgage (never done that) or purchasing your home before its foreclosed upon. Yadda Yadda yadda, sincerely me

3. You'll get that call

4. Go see the home find out the details about how much they owe.

5. Find out how much the house is worth/rents for.

6. Make an offer

7. Secret shit. I swear I should be charging for this. Most of the time I'll get a foreclosure and do seller financing back to the original owner. Seller financing you become the bank, you set the terms and interest rates. So one was, I paid 75k for a foreclosure on a house that was worth 185k. I took a payment of 25k down and they pay 1000 in rent per month 30 yr fixed, balloon in 5. Remember I only paid 75k for this place already got 1/3 of that back and in a few years all of that will be a hell of a profit. Long term ill make about 95k-105k, or if they refinance they can pay me out sooner in a lump sum. Tons and tons and tons of ways to make smart real estate mobes.

Just now seeing this!.. Preciate the knowledge!..

 

[kingblaze84]

I never understood the benefit of long term renting.

Most people don't have a choice because they don't have enough money to buy a home.

Remember, home ownership doesn't just mean that you're paying a few dollars more than you would if you rent.

After the mortgage crisis, most banks aren't going to approve potential buyers for mortgages without a significant down payment.........which is usually 20% of the purchase price.

Even on the low end, a $200,000 house is going to require a down payment of $40,000.

If the average person is just living paycheck-to-paycheck by paying rent, they won't be able to save enough for a down payment on a home.

Basically, most people are renting out of necessity.....not choice.

Exactly, most people can't afford down payments like that. And banks are hesitant to give loans to just anyone for good reason, many people lost jobs or got jobs that didn't pay as well as the job they lost and couldn't afford the mortgage payments. Banks don't want to make that mistake again. The crazy thing is childcare for many people is even more expensive then the rent, that makes buying a home for many even harder.