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I don't know where you guys live at but investment property over the next year or two is going to be some of the greatest opportuniies in a long while. Interest rates are just going to go up if you wait. Homes are selling at very low prices with tons on the market. The REO picture is just starting to grow, wait till May or June 2008, there will be boat loads. If you are buying REO properties start looking in November and bidding early. Banks will be trying to get rid of inventories. They are already feeling the pinch and reducing prices like I have not ever seen before in my investing career. I would like to sell mine to just get at all the bargains coming up. I work in Georgia and we haven't seen the break down of prices yet. It is slow and steady here. The stated loan is just about a thing of the past, but they are still doing them. If you have got money and good credit the sky is the limit, but you will pay a little higher interest rates for investment loans. Hey it's the cost of doing business, figure it into your investment strategy.Good luck..Bill (Don't wait to buy real estate, buy real estate and wait.)
Damn, I am 20 and I have a better credit score than you guys.
At 20, the majority of people usually have good credit because they live at home or rent, have a part time job, go to school and maybe have a few credit cards. As long as they make the payment on time they will have excellent credit.....they are at the building credit stage of their life.
As you get older and have more responsibility and more debt the credit scores can change and alter frequently.
Have you tried a traditional bank? I used one and they gave me a 7-year note - yes, very high payments but you will be set in 7 years. On a $75K property you can afford to bite the bullet. Also if you have a good amount of stock, you can get a loan against that...
Here in Dallas my rentals are great - I get calls all the time and they are fully leased. The last one on the market in August, I raised the rent $350 and I was bombarded with emails and calls. I rented it to the second couple to see it. And here things are still appreciating - the closer to downtown the better - my Lakewood/East Dallas area was up 9% in the last report - the Lakewood section is doing even better. We are lucky to have good schools and a variety of homes here. They go back to the early 1900s to new construction.
Depending on your credit record and how much income you have you can get rates still under 7% for conforming, non-conforming I'm not too sure about; If you can prove to the bank that you will stay current on the loan even if your investment goes south that would go a long way. Many banks have had investors just walk away from their properties and the banks are in some places reducing prices 30-40% and people still aren't buying, they want to avoid that at all costs, but still want to lend out money.
Dallas is an anomaly in this housing market my brother and I crunched the numbers and buying a house at market rate to rent out would give you positive cash flow starting the first month you rent it out basically. In the current market almost any anywhere you go that is unheard of, even with the falling prices and rising rents here in the Bay Area if you buy an apt complex the best capitalization rate is only 6.7 - 7%, when taxes, interest and maintenance is all written in you would have to take a tax writeoff for the loss for several years, condos and houses are much worse.
Of course housing is still cheap around there, people in Flower Mound, TX make an average income in the 6 figures, but houses still cost an average of around 250k - 300k, and this is one of the pricey areas.
While we may be entering an era of great buying opportunities -- what more has to dictate as to whether or not you should be participating, is whether or not you are prepared to do so. There may or may not ever be a right time, but most often you should be in a secure position and have a plan, both financially and strategically and perhaps otherwise.
I've been investing in real estate for many years. Every X number of years there is incredible buying opportunities, vis a vis the marketplace. However, my business is organic, thus there may be opportunities when the marketplace doesn't dictate it.
I'm a buyer, 365 days a year. If there is value, in one form or other, I am a buyer. However, that doesn't mean everybody else is. Even in so called bad marketplaces, there are still opportunities. Good luck.
With MyCommunity/HomePossible is zero down programs...and you will need a 620 to avoid High PMI payments.
FHA only requires 2.25% for a down payment
Quote:
Originally Posted by ProLogic
I don't think lenders are doing 0 down anymore. I could be wrong though.
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