Rescue Main Street............NOT Wall Street

By
Services for Real Estate Pros with ThinkUp New Media

Government is not the "end all" answer to rescuing the plummeting values of Real Estate.

We the People...........specifically investors with cash (or other resourceful means), have the ability to buy affordable REO's and become part of a new wave of independent bankers (so to speak) rescuing Main Street.  Your investor can sell their REO for market value on a land contract to deserving families.  The investor (your client) helps:

  • protect the value of other homes in the REO property neighborhood
  • give buyers hope of home ownership without 20% down
  • buyer get into an affordable home with deposit equal to monthly rent
  • stabilize an otherwise deteriorating neighborhood
  • sustain collection of property taxes for civil services

With a land contract, the investor becomes the banker and charges (suggested) 10%.  Investors should consult with you to learn if land contracts or other similar sales can be offered in your state.  Income to the investor is considered ordinary income.  Investors should consult with a tax advisor before making any purchases as suggested in my blog posting herein.

It's great to tell your friends you just bought a $500,000 house for $300,000.  What a bargain.............that is, until you have to make monthly mortgage payments until the house is leased or sold.  I suggest working with banks and/or asset management companies to find REO's an investor or FIRST TIME investor could buy for cash.

WEALTH EVAPORATION is a major concern to everyone.  Low cost affordable cash flow REO's are a SAFE Place for Investors to PARK Their Money.

Entrepreneurs are resourceful; they always find a way to take action if you present the opportunities.  A few ways an investor may raise capital for an REO or other deeply discounted purchase are:

  • Cash
  • HELOC on primary residence
  • Retirement funds
    • Rollover to Self Directed IRA
    • Loan/s from 401K
    • Roth IRA
  • Corporate credit
  • Get a partner (friends, family, investment club)
  • Other

Your investor's may also:

  • Season the note 12 months and sell
  • Hold long term for cash flow as rental
  • Lease-to-own

The future of Main Street is really up to you.  I hope my ideas will help stimulate the Active Rain community to bring more ideas to help turn the tide.

As for the "Press" and their doom and gloom for the real estate market.............not one of them ever helped me pay my bills.  How about you? 

Do you have some ideas to share?

 

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Topic:
Real Estate General Information
Groups:
Investors
REO Foreclosures Turn-Key $29,900
Tags:
reo
reo bank owned
bank owned
foreclosures
rei
investing
real estate investment
investors
affordable housing

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Rainer
25,856
Manolis "Manny" Sfinarolakis
Keller Williams Realty

I agree with you on the investor wave of buyers who are and will soon be coming to the market place.  Just because banks do not give you mortgages as easily any more, doesn't mean and investor who owns a property outright would not want to take back a note and owner finance the property.  It would created great cash flow for the investor and provide a homeowner with an avenue to obtain a home.

I am actually going to a creative financing seminar in Boston from Nov 14-16 and will be learning more about these techniques.  Super excited!

Kind regards,

 

Manolis

October 26, 2008 04:16 PM
Rainmaker
1,324,339
Vickie Nagy
Broker for San Ramon, Danville, Dublin, Pleasanton
Vickie Nagy, Broker Associate Realty ONE Group BMC Associates | BRE#01363932
Yes. Cash flow is the target for investors. We're not there yet...and I hope prices stabilize witthout further drops.
October 26, 2008 04:30 PM
Rainmaker
362,833
Dean Moss
Dean's Team Chicago IL Real Estate Team
Dean's Team - Keller Williams Realty Partners Chicago IL

Mike -

Improving the housing market is key - and creating a favorable climate for investors will help fuel housing market recovery.

It seems fairly straightforward - how come many in Washington still don't get that?

DEAN & DEAN'S TEAM CHICAGO

October 26, 2008 05:12 PM
Rainer
3,419
Mike Macey
ThinkUp New Media

Dean -

Your question reminds me of that CB question truckers ask when they are trying to reach someone on the CB radio................"How bout ya good buddy, Ya got your ear's on?"

Or, as we layman like to say, "hello, anybody home?"  Lest we forget Verizon, "can you hear me now?"

I am partisan but that goes for all politicians.

 

 

October 26, 2008 05:27 PM
Ambassador
716,652
Mike Jones
Mike Jones NMLS 223495
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

Mike,

WELCOME to Active Rain!  Looks like you just jumped in and posted an exceptional first post on your blog.  Excellent!

Mike in Tucson

October 26, 2008 11:25 PM
Anonymous
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Rainer
3,419

Mike Macey

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