Not surprisingly, the downturn in our economy; the current recession, dropping real estate prices; along with stocks being bearish for quite some time, there has been a lot of money pushed to the sidelines. According to E-Trade, at the end of 2008, cash in money markets and bank accounts had reached nearly $9 trillion or 74% of the value of all publicly traded stocks in the U.S.! That was the highest such ratio since 1990.
So, what does this mean for you in your real estate business?
I recently met a young investor who was asking me a good deal of questions about the presentation we use when meeting with potential private lenders. We got to talking about the entire process, what I say, when I say it, how I find potential lenders, the approach we use, the whole thing. I was sharing some nuggets with him when he told me about his presentation. You won’t believe what he said.
This little posting was in our Realtor newsletter this week. This spells incredibly opportunity for those of you doing short sales, but only if you have the funds available to take advantage of these deals. Read on. . .
Many Homeowners are “Underwater”
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According to a report by First American CoreLogic, at least 7.5 million American homeowners are “underwater borrowers,” meaning they owe more on their mortgages than their homes are currently worth.
This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5 percent more than the mortgages they’re paying on them.
The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater.
…Nevada is home to the highest number of underwater borrowers, with 48 percent of homeowners having negative equity. Michigan follows with 39 percent.
New York is faring best at 4.4 percent.
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[SOURCES: Real Estate Research Center; CNNMoney.com]
Be sure to have your private lenders cash ready to finance these deals. We have lined up several lenders with large amounts of cash to close on short sale opportunities quickly. We only need the cash a short time and by having the funds readily available we’re able to “make hay while the sun shines!”
NOW is the time to profit from this market. Don’t sit on the sidelines whining about how great it used to be. Take this opportunity to increase your wealth tenfold.