summary
Tight credit is not the sole factor in making the rental property investment niches a wise choice, and with the right systems in place, says Kent Clothier of Real Estate World Wide, investors can create success under any market condition. Continue reading
prREACH
Apr 22, 2014 /prREACH/ -- San Diego, CA. (April 22, 2014) -- Dr. Kenneth T. Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley, recently wrote a revealing article which was published in the Foreclosure News Report, on why some prospective homebuyers are being compelled to rent, stating that the reason is that lenders are unwilling to approve 30 year mortgages at the current rates of interest.
"Prior to the economic downturn, a 620 FICO with 5 percent down was an insurable prime loan," writes Rosen. "In today's conventional market, 680 is the new 620. That line of demarcation is simply too high, and squeezes too many families into higher-cost loans or out of the housing market completely. We are concerned that many low and moderate-income families will be forced to remain renters not by their own choice, but as a result of the cumulative impact of regulatory rules seeking to create a limited risk environment." Other organizations, as well, have come out with similar studies. The Urban Institute, for example, released a recent report which suggests that as many as 1.2 million people per year are not getting mortgages because of tight lending standards.
However, opines Peter Miller, contributing writer for RealtyTrac, it is likely much more than that.
According to Miller, when combining the following factors: unemployment or underemployment, reduced income, an increase in cash purchases, stunted consumer confidence, household formations, and the nearly 7 million people that lost their homes to foreclosures after the mortgage meltdown, a better explanation may be that people, in many cases, are still unable, or uninterested, in new mortgage financing.
Regardless of the multitude of reasons, it is clear that real estate investors who are interested in buy and hold properties for rental income may be on the right track.
Kent Clothier, CEO of Real Estate World Wide says that despite the "inventory shortage" there are still plenty of opportunities out there for the investor, who has the right tools in place, to easily find and purchase investment properties.
Real Estate World Wide (REWW) is a widely hailed as one of the best real estate education companies in the nation, but it has also become known for its cutting edge development of real estate data systems that help investors find motivated sellers, get easy access to private lenders and, for those who are flippers, build a buyers list of cash purchasers.
Say's Clothier, "no matter what's going on in the market; whether its tight lending policies, shortage of inventory, or up and down foreclosure rates, there is always an investment niche that fits well with what the market is doing; you just have to know how to tap into it. With education and the right systems, any investor can succeed in this business and build wealth "
Those who are interested in growing their real estate investment business can visit Real Estate World Wide website today to learn more about the systems and training products they have to offer.