Today I want to talk about my opinion of buying foreclosures.
People from all over the world know about the mortgage crisis Americans are going through, so I am assuming all Americans should know about it by now, thanks to the hard work of our media. They don’t stop talking about the recession, or how bad the market is, and how the banks are going under. I honestly don’t see how this can help our economy. Don’t get me wrong, I am not saying that the media should keep the truth from us. But how true do you think what they’re telling us is?
Recession? Really? I just went to Las Vegas twice in Oct. And guess what, I saw people gambling, and every casino hotel was still busy at nights. I was trying to book an airline ticket the other day, it was pretty hard to find a flight on the day I am planning to travel. Thinking about the recession that actually happened in the past, were people spending money like we are now? People are just nervous about the news they heard. It doesn’t necessarily make it true.
People are afraid of the recession so they tend to stop spending money on investments. I am not really into stocks, but I believe a lot of people have lost money in the stock market and now they’re afraid to buy more. I don’t want to invest in anything that I don’t understand how it works regardless of what other people say. There will always be people telling you what can make money. But you know what, I actually believe everything could make people money, but it’s not true that you can do everything profitable. Just do what you are good at and let others worry about the rest. Besides, if you could make all the money in the world, and nobody made any money, they wouldn’t be able to afford what you were selling anymore, would they? Okay, I’m little off track now. Let’s get back to stocks. What I was trying to say is, although I don’t understand how the stock market works, I do know that you shouldn’t follow the crowd. If everyone is selling and losing money, perhaps this is a good time for you to buy (again, don’t take my word for it. )
So, you may be wondering why I brought up the stock market if I am not interested in it personally. Because I want to make a point. People are losing faith in investing their money. I totally understand, but I really hope you don’t lose faith. There are many reasons, just off the top of my head, if everyone is “saving” money, that can only worsen the market and perhaps cause recession ( if you are thinking it’s already happening right now, then guess what, “saving” money certainly can’t help at all.) And, please take a moment here and think about this, if all you do now is “save money”, how is that going to help your financial situation, how is that gonna make you wealthy enough retire and never worry about the financial crisis again. If you only save money, it won’t last long, it will run out pretty quickly with “help” of inflation. So, please hear me out, you don’t have to believe me now, but you will someday.
Earlier, I mentioned that you shouldn’t follow the crowd. When everyone else is selling, you should buy. I’m a real estate person. And I can’t tell people enough that it’s always a good time to buy. Right now, it’s one of the best times in history. The media makes people scared to buy but encourages them to sell. In a way, the media is making it an ideal buyer’s market. Why not take advantage of that “negative news” and profit from it.
The truth of the matter is, there are always gonna be fewer people who will buy when the market is like this. And I honestly think, that’s the same reason why 10% of the population is holding 90% of the wealth in the entire world.
Okay, so let’s move on. Now let’s talk about the people who have guts and belief in the market. Some of them can’t qualify for a loan, and that makes them give up buying pretty quickly. Some can, but don’t know how. Like they heard in the news, banks are in trouble, banks are going under and all those things. It makes them THINK they are saving the banks or the world by making an offer. So they ask everything they think they can in the offer. Let me explain a bit more. They ask for seller concessions or closing costs, repairs and all the reports even home warranty. And they wonder why their offers aren’t accepted. They think banks are being unreasonable. Well, there’s a reason why foreclosures are cheaper than regular sales. Have you thought that maybe the banks don’t want to do all the disclosures or spend time dealing with all the reports or repairs? For any business, I think there’s a simple reason why it exists. I think if your business is something people want or need, and you can provide it to them, then you can do well. So, let’s crack the bank owned properties code together, shall we? Banks are busy already, and they are NOT in the business of doing real estate. So, let’s give them what they want and make the transaction go smoothly by taking over the “work”. On your second page of the Purchase Agreement, don’t ask banks to take care of everything. I can tell you this, this is something they care about more than the purchase price. So, you do the work, and pay less for the purchase price. I think that’d work for me.
So, learning how to draw a good purchase contract can be a key to making a “good” deal happen. Take a moment to think about how this works, other than just listening to the news or what others say. After all, you want to be better than average, don’t you? So, have some faith in yourself, and do what you think is right.
This post is only about my own opinion, if you’d like to share yours, please write to us by leaving a comment now. Thanks.
