Real Estate - Can we talk short-sales?

MiamiE · 04-07-2011, 08:38 PM

Jon I know a few investors who live by this philosophy. I think a lot of people got into ARM's, not for investment, but for primary residence without really having an idea what was ahead. Anyways I am not talking about an ARM, I am talking about 0-7% down, and a higher fixed rate. Not to mention, the example I am using is someone with existing assets, and great credit. Kind of makes sense. Less money out of pocket, and who really cares about the interest rate if you won't own it for very long. These people are still making money nowadays, at least down in this horrid market. Regardless if they finance or buy cash.

jmsremax · 04-07-2011, 09:38 PM

Erick, there are many people who live by this rule and have been very successful and I know others who lost everything. Some were using ARMs others weren't. There are so many variables that can play out and cause a snow ball effect (i.e. landlord or tenant(s) losing their job and can't pay their obligation). Unfortunately both investors and home owners were getting themselves into ARMs because lenders were basically giving them away at the time.

I just get tense when I hear people talk about low down payment, higher interest rates mortgages....it just causes flashbacks to 2008.

04-07-2011, 08:38 PM	#1
MiamiE I'm nuts for the place Join Date: Feb 2009 First Name: Erick Location: Miami, FL Posts: 2,892 Trading: (38)	Re: Real Estate - Can we talk short-sales? Jon I know a few investors who live by this philosophy. I think a lot of people got into ARM's, not for investment, but for primary residence without really having an idea what was ahead. Anyways I am not talking about an ARM, I am talking about 0-7% down, and a higher fixed rate. Not to mention, the example I am using is someone with existing assets, and great credit. Kind of makes sense. Less money out of pocket, and who really cares about the interest rate if you won't own it for very long. These people are still making money nowadays, at least down in this horrid market. Regardless if they finance or buy cash.

04-07-2011, 09:38 PM	#2
jmsremax Yet another Masshole Join Date: Nov 2009 First Name: Jon Location: MA Posts: 1,245 Trading: (19)	Re: Real Estate - Can we talk short-sales? Erick, there are many people who live by this rule and have been very successful and I know others who lost everything. Some were using ARMs others weren't. There are so many variables that can play out and cause a snow ball effect (i.e. landlord or tenant(s) losing their job and can't pay their obligation). Unfortunately both investors and home owners were getting themselves into ARMs because lenders were basically giving them away at the time. I just get tense when I hear people talk about low down payment, higher interest rates mortgages....it just causes flashbacks to 2008. __________________ Stock/Finance banter