Real Estate Investing and Housing Trends

The subprime mortgage meltdown has not only hurt homeowners and investors, but thousands of people are losing their jobs at mortgage companies.

Here's the dirty details:

• More than a dozen mortgage companies have gone bankrupt this year as lenders cut off credit lines and investors who buy the loans stopped bidding except for the safest mortgages.

• At least 90 US mortgage companies have halted operations, filed for bankruptcy or sought buyers since the start of 2006, according to Bloomberg data.

• Accredited Home Lenders Holding Co., a subprime lender based in San Diego, whose sale to Lone Star Funds fell through, said it would stoptaking US mortgage applications and cut operations, with 1,600 people losing their jobs.

• London-based HSBC, Europe's biggest bank by assets, will cut 600 jobs at its US operations.

• Capital One Financial Corp. is closing its GreenPoint Mortgage unit and will cut 1,900 jobs.

• Countrywide Financial Corp. will cut 500 jobs, including layoffs at Full Spectrum and within the subprime lending unit of their wholesale lending division.

• Quality Home Loans, a California subprime lender, filed for bankruptcy today.

• Amstar Mortgage Corp., a unit of Houston-based Amstar Financial Holdings Inc., said it will close its doors.

Related Industry Job Losses Will Go From Boom To Bust

It's only reasonable to conclude that job losses will spill over into other related housing industries including home builders, Realtors, escrow companies, inspection services, construction workers and so on.  So time will tell just how many thousands of jobs will be lost due to the housing bust.  And if people don't have jobs to spend money, other industries related to consumer spending will likely experience job losses.

Can you, as a real estate investor, and these recently unemployed workers turn lemons into lemonade?

With an estimated 2 million foreclosures predicted, as I mentioned in yesterday's post, those former home owners will have to rent.  With so many renters re-entering the market, demand will likely push rental rates up and make more money for the property owner/investor.  So here's a game plan…

Seasoned and aspiring real estate investors have lots of opportunities

Commercial property investment is an excellent choice, either for investment or to live in. You can buy with as little as 10% down, even 3% for some property types.  You'll enjoy monthly cash-flow along with property appreciation.  I'd be happy to help you get your commercial loan to make your purchase.  Click here for details.

If you're one of the recently unemployed or foreclosure victims, why not find a money partner.  Your money partner puts up the down payment money and qualifies for the loan.  You put up your time, energy and know-how. You find the property, negotiate the deal and oversee the management. (If you don't "know how," educate yourself by getting one of the guides located in the Real Estate Investing Guide Section)   

You arrange with your money partner to live in one of the units so you have a place to live, either for a reasonable rent or for free as part of your partnership agreement.  Hold the property together for a period of time to enjoy some cash flow and appreciation. Sell the property and take your share of the profits to buy your next property on your own.  

Do You Have Bad Credit? If you've got some bad credit items on your credit report from being unemployed or mortgage lates or a foreclosure, you have some work to do to get your credit report looking good to get a loan for your next investment property you'll be purchasing on your own. So during the period of time your owning the property with your money partner, work on removing derogatory items on your credit report with the help of my recommended credit repair resources.  

Target Discounted Property - pre-foreclosures, short sales, fixer-uppers.  Buy below current market values - which is relative in a declining market so be cautious.

Target Bargainville Real Estate Markets - Put your money in Bargainvilles like the ones I mention in my posts.

Sources:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7xKv0fgGs7A&refer=home
http://www.bloomberg.com/apps/news?pid=20601087&sid=aWRK05wGf5CU&refer=home

Technorati Tags: money, finance, real estate, real estate investing,  housing market, housing trends, real estate trends,  mortgage lending

Related posts:

1. Investing In Real Estate - Where To Invest Right Now Investing in real estate - where to invest right now is on the minds of many real estate investors. Thousands of investors and home owners have lost money and their...
2. Real Estate Investing Update: Ford pick-up sales fall. Blame the housing slump! Huh? “The Biggest Slump in US Housing in the Last 53 years”, is the viewpoint of Angelo Mozilo, the CEO of Countrywide.  ”I’ve never seen a soft-landing in 53 years,...
3. Real Estate Investing Update: Are You Hedged Against the Housing Slump in Bubbleville? From the Real Estate Investment Center“‘It would be difficult to characterize the position of home builders as other than in a hard landing,” says Robert Toll, chief executive of...
4. Real Estate Investors Have Other Options While Mortgage Lending Woes Push Federal Reserve To Ease Market Fears Real Estate Investing and Housing Trends Update As Gomer Pile would say, "Surprise, surprise, surprise!" The US Federal Reserve unexpectedly approved a cut in its discount rate on loans...
5. No Credit and No Money Commercial Real Estate Investing Many real estate investors are turning to commercial property for investment opportunities instead of single family homes and condos. There are two categories of commercial investment property: Category...

Related posts brought to you by Yet Another Related Posts Plugin.