Quote:
Originally Posted by Brandon Hoffman
How in the heck do you close 17 houses a month and not have any money? That agent sounds like she is clueless.
And the interest only and other bad financial decisions people in that article is made. Stories like that make me appreciate the education I have and the information that I share with my clients.
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I was wondering the same thing. Unless she was working in new home sales for a builder. And then she buys TWO houses with 100% interest-only ARM's! Did the article say how long she'd been a real estate agent? Phoenix and those outlying areas had been a really hot market, but even in early 2006 there were signs things were definitely starting to slow. By mid-summer it was pretty obvious to anyone tracking sales.
I always think buying in a new home subdivision can be risky, unless the development is nearing completion. There were a lot of warning signs that the agent should have been looking at -- lack of infrastructure, too many new home developments going in too quickly, etc. There's always a reason for prices being so much cheaper than other areas.
Much better to buy less house in an established neighborhood . . . WITH a conventional mortgage. If you need an interest-only loan, or you don't qualify for a decent interest rate, then you should rent and get your finances in order first before buying. There's nothing wrong with a little patience. It's okay to have to wait for something once in a while.
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