Do real estate headlines blur in your mind?  What is this all about?  How did it happen?  Is all of this confusing?  How does the real estate investor, or a person wanting to buy their own house proceed?

How did it happen?  What's it about?  It's about instant gratification!  Any one 50 and over will remember being taught, that you have to work hard, save, work hard, save.  But, in the last 10 years, we as a society have said, "we know you want it, let me give it to you right now".  We have said the American dream does not have to be a dream, you can have the dream of home ownership right now.  No, you don't have a penny saved, no, you don't qualify for that large of a mortgage, but we will give it to you anyway.  I say "we" because although the lending market plays a big part in the availability, the consumer has been "fool hardy", in believing a pay day would never come.  Other parts of consumer debt go on the same principles.  Charge now, pay 10 times the price later.  At least for a while, the time is gone that anyone who can contact a lender can get a loan. I really dislike the commercial being run by a loan broker that says, "people are smart", then suggests loans that would not be wise to get.  Especially when people are trying to buy their own residence, emotions can rule higher than common sense.  Many people have been caught in this trap, and now have their credit damaged by foreclosure, or other credit dings.  Self employed, and real estate investors often already have a harder time getting financing. If you have excellent credit, which many people do, it is reported you will not have a problem getting a loan.  However, unless there is enough funding available for loans, there won't be loans.  Fox news reported today that some people that have been approved for a loan, and have a closing this week or next are being called and told there will not be a closing as scheduled. To make it more confusing, unemployment is down, and the economy is considered good.

REAL ESTATE INVESTORS, CONSUMERS, AGENTS, AND BROKERS
1. Buy at least 10% below the current market value, in many cases more of a discount would be prudent, and hold as a rental, or lease option.
 2.  To fund that purchase,
      a. look to buying by subject to,
      b. or assuming a loan, (like FHA)
      c. ask for owner financing on all or part of the purchase
      d. use owner financing with a sale of the note at closing, (or later on)
      e. use your own cash for a large down payment, or total payment
      f. cash from a private individual lender.
 3.  If you plan to buy, fix up, and sell, you should offer the same creative ways of financing to get a sale made, especially in the starter home category. 
You may be able to borrow from a mortgage lender, but keep these creative methods of buying in mind in case funds are not available.  At this time we don't know how long the credit crunch will last, but I feel it will be a while before lending institutions will feel comfortable about making loans like they have in the past few years.  I will be posting more information about these alternative methods of financing in the next few days.

Will a 20 something ever be able to purchase a house?  Yes, maybe, but it may go back to the proven methods of working, and saving, developing good credit, and delaying the gratification of purchasing your own home until enough money can be put down, on a starter house, (not a McMansion).

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Here are speedlinking links to articles I have written previously, and other bloggers, and news sources, that relate to this subject.   

Too Little, Too Late, or Too Much?

Do People Give Houses Away?

The Smart Investors Advantage-Owner Financing

Rental Housing Heats Up

Getting Foreclosure Help

Georgia Lawyers Stranded By HomeBanc

Biggest Housing Slump Ever?

Countrywide taps $11.5 billion Credit Line