Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
Real Estate Wealth Protection Through Short Sales
Is a sharp correction in store for the real estate market? Fannie Mae, the largest buyer of mortgages in the US, is worried. They recently warned that the probability of a housing bust has risen sharply in certain parts of the country. Fannie Mae and Freddie Mac financed about 43% of new home mortgages last year. That's down from 53% the year before. Fannie and Freddie only buy "conforming loans" In these days of easy money and competition for borrowers... morelenders are selling mortgages to non-government sponsoredloan buying companies. They have less stringent lending standards. That means more risk as it allows home buyers with poor credit records or unconfirmed income to qualify for mortgage loans. Listen to this! 24% of the sub-prime loans sold to non-conforming buyers in 2004 were adjustable rate mortgages with an interest only feature. And... these mortgages are not restricted to less expensive houses. The share of jumbo mortgages loans ($359,650 & up) accepted without full documentation increased from 27% in 2001 to 51% in 2004. Fannie Mae warns that the real estate collapse of the late 1980s was preceded by similar patterns. Some point out that the real estate bubble is effectingvalue in just certain areas. But they don't understand thatjust 22 of the most expensive metropolitan markets in theU.S. account for 35% of the total value of the country's residential real estate. If those markets begin to collapse they will shock realestate values everywhere. What should you do if you are sitting on fat real estatecapital gains. First... make plans now. Once a correction (crash) begins you will have a hard time gettingout of your property. Values plunge and buyers disappear. If you don't believe there will be more than a little dipin real estate appreciation and you want to hold on to yourproperty... here's an idea. Use the stock market as insurance. How do you do that? Find real estate stocks and do short selling. Well managedthis can be an effective strategy. If real estate values continue to climb you still own yourproperty and continue to accumulate capital gains. If real estate values begin to fall you sell short selectedstocks and profit from the decline, which balances the loss in the value of your real estate. You protect your realestate gain... and maybe even come out ahead on the strategy. An ETF is an Exchange Traded Fund. That's a basket of stocks that trade under one symbol just like a stock. You can quickly buy, sell or short an ETF through an online broker in seconds. You have instant liquidly... somethingyou don't have with real estate. Two ETF's that you could be ready to short sell would be: IYR - A basket of real estate stocks IYF - A basket of financial stocks. Lots of areas would be hard hit by a down turn in realestate including: banks, mortgage lenders, utilitycompanies, materials suppliers and especially homebuilders. The stocks of leading home builders that would sufferduring a real estate bust include: Brookfield Homes - BHS; Yes, short selling is a radical strategy for the smaller real estate investor, but aren't you the one who needs the gain protection the most? You may find a local stock broker that would give you some help, but you should understand some basics about thestock market and trend following. You can easily learn that here... http://digbig.com/4dxys Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com
MORE RESOURCES: |
RELATED ARTICLES
The Nose Knows If you plan on getting the most from the sale of your home you better be sure it can pass the "sniff" test. Let's face it your home should smell good. Investment Real Estate: An Inexpensive Way To Get Started If you are considering getting involved in investment real estate, let me offer some of the amazing information available in my wealth-building system, Winning the Mortgage Game. In several parts of my system, I outline a strategy for getting started in investing in real estate, without being a landlord. Maui Realtors: What You Need To Know Maui is a great place for families of any size. However, before you plan a move to Maui and contact those Maui Realtors, there are some considerations that you should take care of. How to Afford Your Dream Home Is it your dream to one day own a holiday home in the sun; a beautiful house where you can escape, relax and be free of the worries that seem to go hand in hand with every day life?Well, you're not alone!A recent survey by a well known mortgage lender in the UK revealed that up to one in three Britons not only dream about owning a home in the sun but fully intend to make that dream a reality some day. And in the US the number of Americans planning to one day buy that ideal second home haven is now up to three in ten people. Purchasing Florida Investment Property And Various Considerations Purchasing Florida Investment PropertyConsidering researching the purchase of Florida Investment Property or properties for sale in central Florida? Do you find yourself wishing you didn't have that lawn to mow and the constant upkeep on a home? Purchasing Florida Investment Property can relieve you of all those household chores but purchasing a Florida Investment Property requires you do some homework. You need to know what you are looking for in a Florida Investment Property. Understanding Real Estate Terminology Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. What Makes Fractional Shares Different from Owning Other Kinds of Vacation Properties? Fractional shares ("fractionals") are sometimes confused with other vacation property options, such as time shares and condo hotels. While there are similarities, there are a number of things that make fractional shares unique, and thus suited for a certain type of vacation property buyer. Tenants in Common (TIC) Tenants in Common is a way of sharing ownership of property among two or more people. Each tenant holds an undivided interest in the property, and each tenant may own a different size portion of the property. Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business? These real questions on buying undeveloped land are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy."Question 1. Talk to a Lender Before You Sell Your Home If you're looking to sell your home quickly, and for top dollar, the best thing you can do is to be able to offer your buyers some sound financing options. That's why developing a relationship with a lender can be the key to a quick sale, and to more money at closing. 10 Tips for Investing in Distressed or Foreclosed Properties 1. Search on the world wide web for distressed or foreclosed properties as a starting point. Personal Branding Techniques for Real Estate Agents and Brokers Branding can be done to any product, or any person. Before undertaking an exercise in personal branding, however, consider your distinctive strengths and abilities and what they offer the market place. Real Estate Investing - The Marvel Of Home Depot And Lowes Repairing a rental home (or your own home) use to require running down to the local hardware store or to the nearby building supply house. After several stops around town, you found everything you needed to solve your maintenance problem. How to Get Started in the Real Estate Game Fixing and Flipping Houses If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what to type of property to buy. Many real estate investors make millions turning ugly houses into dollhouses. Real Estate Investment 2005 - The Hottest Countries for Investment in 2005 Whether you are a real estate investor looking for a steady and 'safe' investment in a proven market or a real estate speculator willing to gamble on the unknown and undiscovered in the hopes of gaining a significant ROI (return on investment), this article covers the real estate investment hotspots for 2005.A recent UK government report discovered that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, and this trend does not seem to be limited to the UK nor does it seem to be slowing down!The global stock markets seem to be in decline, there is a worldwide pension crisis looming and we have uncertainty in the Middle East, in the UK the housing market is unaffordable, possibly over inflated and unlikely to bring significant returns for investors late in on the game and so more and more of us are looking further a field for our investment opportunities. How to Sell Your House by Lease Options Many people buy a house then have to move within a few years, due to divorce, relocation or financial difficulties. Without any equity though, it can be nearly impossible to find buyers and you still have realtor fees to contend with. Before You Buy A House - Top 10 Tips There are serveral things you need to think about and check on before you buy a house. Even looking at so many houses can be confusing. Things To Consider Before Buying a Condo Hotel or Resort Residence Resort home ownership, such as condo hotels and fractional shares is different from typical home ownership. So it is important to ask certain questions before signing the purchase agreement on a resort property. Is Housing and Real Estate Bubble Hype Irrational Exuberance? Not so, says the author of this article and four real estate books including the recent "1001 Tips for Buying and Selling a Home". The upside of the hype is for real estate consumers and investors. Take The Guess Work Out Of Your Wholesale Property Purchases We have become very concerned by the number of readers writing to us asking how to determine which are the wholesalers(*) that can be trusted. Why are we concerned? Because when we dig a little deeper, we realize that they are buying properties based solely on the recommendation of the wholesaler. |
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2012 |