My New Blog

Buyers Market????

By: Nino Brown (asknino@asnffinancial.com)

Is it really a buyers market? Clients ask me this question frequently. They wonder with interest rates rising, banks failing and flexible mortgage programs disappearing; how can anyone get a mortgage? Well, that is precisely it; not just anyone can get a mortgage! The lack of qualified borrowers has caused the real estate market to take its first decline in values in over 40 years. Now add in the record number of real estate foreclosures; this has enabled qualified borrowers to pick up quality properties in every state at substantial discounts. Please note, that this is not just limited to residential properties. Smart investors should look at mixed –use and commercial properties as possible investment strategies. These properties can be picked up at the largest discount because even fewer qualified borrowers exist in this market thus further driving down values. Also remember that mixed-use and commercial properties also demand a higher cap rate meaning that they generate higher returns on investments than residential properties.

3 things to do to get started:

1) Don’t be scared: There is a difference between being scared and being cautious. Always be cautious, but if you are scared, you will continuously miss out on opportunities.

2) Be prepared! Have your game plan set before you get started. From contract negotiation to loan execution; have all your ducks in a row!

3) Get some leads. You can find leads by calling your local banks and hard money lenders and negotiate short sales with them before the properties get to foreclosure. Also meet some investors; many of these investors are strapped with properties they can not sell.

Ask Nino??? – send questions to asknino@asnffinanical.com

Mr. Brown, I am a sophomore in college and I would like to get started in the real estate business. How should I get started? – Eric Patowski, University of Miami