Thread: quick question: whats your strategy for dealing with the mortgage meltdown mess?

Loan modifications are helping people lower their monthly payments so they can stay in their homes until other options are made available to them.

Short sales are helping people that need to get out of their homes but they are upside down.

Short Refi's will become more popular over the next few years as well.

We are using private lenders to fund investor deals in this so called meltdown. As for 1st time buyers, they still have options available to them with FHA.

Plus, if you focus on building your different lists then you set yourself up to be recession proof.


Nate Kennedy
VirtualREIMentor.com

Owner financing, subject to, L/P....anything but the banks...

I've had some good experiences with small, neighborhood banks, that only lend in that town/area/neighborhood. Most of them are so tied to those communities that they are still lending within them.
Alternatively, you could always go hard money for quick turnover loans.
Here's an article I like on surviving the slow real estate market, about scoring cheap deals and holding them as a landlord, if you're interested.
Best of luck to ya!

I have not experienced a "mortgage meltdown" personally. I bought my first investment property. I was able to finance it without problems. I will be looking into refinancing it with a conventional lender in January to get most of my money out of the deal (my current lender financed the purchase price + rehab costs). Last time I checked (2 months ago) I would be able to get the conventional mortgage without problems. I believe I will still be able to do it in January.

Well I am trying to garner as much seller financing as I can. This keeps my traditional credit open. Since the new rules only allow you to carry 4 mortgages. So, many are talking like the sky is falling and that real estate will soon be worth nothing. I say b.s. when we look back this is going to be an even better opportunity than the S and L crisis. Buy up everything you can that gives you a chance to cash flow. You will be set when things turn around.

I decided to get even deeper into the mess by adding residential mortgage loans to my list of offerings. The idea being that if I take the time to setup a good network now based on the one I already have of investors and realtors, when the market returns to a 'normal' level, I'll be able to prosper in that facet as well.

In my opinion, if you have investors, pick up the homes for cash and pay your investor an annual return on the money. Worse case scenario you can simply Seller Finance/Agreement for Deed with a decent Down Payment . Not too hard to find one of the millions that DON'T HAVE credit from a foreclosure BUT HAVE cash from not paying the mortgage that got foreclosed but still want to own. Once Seller Financed, the property is re-financed for the cash purchase and you move on to the next one. There is so much opportunity for this it's ridiculous.

If structured properly, the profits are made tax-free. I'm putting this together now. Not a solicitation. Simply a great concept.

I expect the economy will get a lot worse so I'm working more for buyers than sellers.