- This topic has 4 replies, 1 voice, and was last updated 9 years, 4 months ago by Anonymous.
- April 27, 2011 at 4:32 am #199536AnonymousInactive
I’ve gotten to know a few amateur RE investors in SoCA who have purchased residential properties during the RE meltdown. They have met with varying degrees of success. What I find interesting is they are all at near break even to negative cash flow on an annual basis. And they all have an exit strategy of getting out in 3-5yrs and at that time making their profit on the investment.
Some areas have more investor activity than others but what happens when all these investors want to exit the market? Theoretically the RE market and economy will be stronger in a few years which also means higher interest*rates. How will people afford larger mortgages at higher rates in 3-5yrs when today so many struggle to accumulate a 20% down and stretch to make payments?
I see a lot of investors getting burned and ending up with large losses or holding properties with negative cash flow for longer than they planned.
- April 30, 2011 at 12:50 am #414989AnonymousInactive
try washington mutual,and jp morgan
- April 30, 2011 at 12:50 am #414990AnonymousInactive
- April 30, 2011 at 12:50 am #414991AnonymousInactive
WOW! I hope you have money down and the credit (680 at least or better) to pull this off. I don’t know who exactly is going to do $ 10M (that’s ALOT for a residential property), but be prepared for the appraisal fees (at that price I KNOW they are going to request 2 appraisals) between $ 2k and $ 6k apiece. If this is not a one unit you may be able to do it as a commercial loan.
- April 30, 2011 at 12:50 am #414992AnonymousInactive
You will probably want to work with a broker instead of dealing with a retail lender. When you deal with a retail lender it’s like going to McDonald’s, you get what they have on their menu at their prices. A broker has 30+ lenders to shop with.
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