Posted by Bill Gatten on November 06, 1998 at 16:24:53:
Karp,
That’s exactly what I was going to say!
Bill
SubPrime Meltdown - Posted by karp
Posted by karp on November 04, 1998 at 17:43:26:
Okay, I know this has been discussed lately but I want to add my 2 cents.
Today I have seen 2 subprime lenders go under.
I have had 4 rate sheets come in saying that the subprime prices are no longer valid and that you should add
at least .5 point to the 30 year fixed and .375 to the 15 year government or fixed.
Folks, this meltdown is serious and I know for a fact it affects a bunch of you. If you are messing around thinking about pulling some equity or doing a refinance, I strongly recommend takinng action now, while rates are still good. Even more importantly do it now while there are still sub-prime comapnies around to serve your needs.
This shakedown has only started and may last a while.
Sorry for the seripous post- I know its out of character.
Sincerely,
Karl Hartley
Re: SubPrime Meltdown - Posted by Sydney
Posted by Sydney on November 08, 1998 at 06:10:28:
I have a source of sub prime money. I LOVE to hear this kind of news because it is great for my business!
Re: SubPrime Meltdown -L/O Opportunity - Posted by Chuck D
Posted by Chuck D on November 04, 1998 at 22:07:28:
Since I’m just starting out I may be all wet, but if this continues, wouldn’t lease optioning present a good opportunity? I would think there would end up being a number of houses that are not going to move traditionally if the lower end credit borrowers are taken out of the picture.
Any thoughts or am I nuts.
Chuck
Re: SubPrime Meltdown - Posted by phil fernandez
Posted by phil fernandez on November 04, 1998 at 18:39:49:
karp,
I hear ya. Called a local mortgage broker today. She is all done dealing with B and C type credit buyers. It may shake out that if you do not have good credit, forget about buying a house. I sense this is just the start.
Is there an opportunity here for us. I would say yes, as long as you buy right ( low ) and offer your buyer owner financing. We might be the only game in town.
Re: SubPrime Meltdown -L/O Opportunity - Posted by Marvin Seawood
Posted by Marvin Seawood on November 05, 1998 at 06:18:03:
Chuck,
The lease optionee (or assignee) must eventually go to
the bank (We give them a year.). I would not sell on a
lease option if I did not believe the tenant/buyer was
capable of qualifying within the time frame set forth
in the l/o agreement. Yes, you will find more people
who agree to carry the financing - you then stay in the
middle and provide owner financing to the end user.
Marvin
Re: SubPrime Meltdown - Posted by karp
Posted by karp on November 04, 1998 at 18:50:00:
No doubt. There is opportunity here especially for us investors. I have often drawn the analogy between real estate investors and “market makers” on the exchanges.
We are the ones who keep things going whern everyone else bails.
As investors we will make money no matter what; it’s just a matter of realigning our compasses back to the old school and leaving the financial institutions out of it for a while.
Thanks,
karp
aka Karl Hartley