Interest Rates And Wholesaling

[exec927]

With interest rates rising,someone told me that house values go down,and that you cannot wholesale properties when interest rates goes up,and that investors do not buy during the transition but only before and after....But Im asking can you wholesale when rates are going up,?Can you wholesale in any situation?//

Thanks
Jeff

[investinAK]

I have been told that wholesaling can be done in ANY market, in just about any situation, as long as you have a genuine deal with a decent spread. I am not telling you this based on MY experience though, just those that have told me this... :)

It sounds like you are mainly interested in wholesaling...You should check out Steve Cook's website, he has some GREAT articles, and if you like what he has to say, he also has some courses available I believe. (wasn't it you that asked about RE courses?) Here is the link to his articles page:

http://www.flippinghomes.com/articles/

Have fun!!

[exec927]

Thanks investinAK...Anybody else???

[Dan Auito]

Ryan is pretty much on the mark, when you find a property that is well below its retail value and can allow for a substantial profit margin to the investment buyer you can indeed sell in any market. They of course take into account the higher cost of money but still, if there is a profit after that, the deal will go on! :)

[exec927]

Thanks Dan.

Two replies is all I needed.I should block these people who are nay-sayers or who don't believe something can be done from myself.It is difficult when you actually pay attention and hear out these people.

Thanks
Jeff

[Just Information]

This is simply a statement with no foundation and lack of understanding the real estate market.

Two essential factors we need in life - Food and Shelter

This demand will never change

All-time High Existing Home Sales

All-time High New Home Sales

Housing Starts Highest since mid-1980s

Price Appreciation 7% to 9%

Inventories of Homes on Market at Historic Lows

Mortgage Origination at All-time High

Monthly Data for the U.S. and Regions www.realtor.org/Research.nsf/files/REL0404k.pdf/$FILE/REL0404k.pdf

Current volume and price data

www.realtor.org/Research.nsf/files/REL0404M.XLS/$FILE/REL0404M.XLS

You will find www.realtor.org a wealth of information

When someone starts off with this type of negative comments, I just simply agree with "I tell them for you it is a problem" but for me it is not an issue.

[exec927]

Thanks John.

So since mortgage origination is at an all time high.Is it a benefit to become a Loan officer or broker?To get some extra income of course?

Thanks and Godbless,
Jeff

[Dan Auito]

Spend that time attracting motivated sellers and you'll probably make 5-10 times the money. Not to mention your skills as an investor will grow proportionately.

I guess you could say your learning finance but you'll be watching the people across the desk cash the big checks. Ouch :wacko:

[exec927]

i totally understand that.I was thinking of becoming a loan officer so that I wouldn't have to ever worry about financing.I'am also thinking about becoming a contractor,real estate agent,commercial agent,appraiser,and broker.To help autopilot my investing,to be more knowledgeable, and to also get commission.what do you think about that?Would it get in the way in any way?

Thanks and Godbless,
Jeff

[Dan Auito]

Jeff, if you try and do all that your going to end up being a jack of all trades and the master of none, between the continuing education courses, ethics rules, dues and fees your going to be hog tied so tight you won't be able to make a move. Do what you do BEST and do more of it! Become the master and be known for that one thing. This is what all the greats profess again and again. I WILL say, that appraisers course wouldn't hurt though! :smiley:

[exec927]

Thanks Dan.

Ok,but what about just taking the courses and not getting licensed or certfied?Just to gain more knowledge and to learn?Kind of like reducing the risks because you are more knowledgeable and you know what you are doing?

Thanks
Jeff

[Dan Auito]

Nothing wrong with that, so long as the classes don't run on for eternity :thumbsup: Education is great, but those real estate agent classes are more about ethics, state agency laws, with very little practical investing keys. Also they just teach you how to pass the state test, so I consider that class to be a poor choice in spending ones time. The mort Broker will hopefully teach some finance and the appraisers course will definitely open up your eyes regarding how to evaluate properties to discern value!

[exec927]

Alright great advice.Ill take heed to that.

Thanks Dan


Jeff

[DionEvalueMortgage]

I agree with Dan! Don't spend too much time in class, it does not really teach you what you need to know. How to place your deal! Mortgage Broker class will teach you how the whole process works but your not an underwriter so who cares?

I interview many...many realtors who want to join our company because they just got their liscense. We generally do NOT hire them. Not worth my time!

Find a reliable mortgage broker or loan officer who will treat you right and advise you on your situations. Just as I find reliable Realtors or agents who will get the job done and not hold my borrowers in limbo.

People that try to do wear to many hats in this industry do not really impress me because just as in life you can not be a master of everything!

Your reliable guy will help you crunch your numbers and make sure your ROI is a return and not RED!

[Las Vegas Real Estate]

With interest rates rising,someone told me that house values go down,and that you cannot wholesale properties when interest rates goes up,and that investors do not buy during the transition but only before and after....But Im asking can you wholesale when rates are going up,?Can you wholesale in any situation?//

Thanks
Jeff

I think it depends on the economic climate of the market you are considering.

[David Leach]

i totally understand that.I was thinking of becoming a loan officer so that I wouldn't have to ever worry about financing.I'am also thinking about becoming a contractor,real estate agent,commercial agent,appraiser,and broker.To help autopilot my investing,to be more knowledgeable, and to also get commission.what do you think about that?Would it get in the way in any way?

Thanks and Godbless,
Jeff

This can work if you have LOTS OF TIME, but I generally wouldn't recommend it (this coming from a lender).

Also, you can have a "non arm's length transaction" that can create issues with many mortgage companies. It can even prevent them from working with you.