Almost everyone knows that the Fed has increased interest rates and will continue to to do so for the short to mid-term future. I call this a transitional time because we are moving from historically low interest rates and, as I write, it is difficult to tell what all of the impacts of higher mortgage costs will be. In this video, I discuss some of what I see happening and I try to project what may happen. Feel free to call me to discuss how these rates may impact you.
Based on what I now know (after nearly 40 years in the real estate business), if I were fresh out of college, I would approach my real estate purchasing differently.
First, I would purchase sooner. Instead of paying rent I would use that money toward a mortgage.
Second, I would buy low down payment properties that I could live in and I would have lived there.
Thirdly, once I fulfilled the lender’s owner occupancy time frame requirement, I would purchase another owner occupant, low down payment property and I would have moved into it.
Fourth, after moving into my next home, I would rent out my previous property.
I would keep doing this pattern until I purchased too many properties or my needs changed. Feel free to call me if you would like to discuss implementing a version of this plan.
Over the years, I have had many people wonder about buying foreclosures to get a good deal. Not only can it take a great deal of your time, because most of the sales require a Court confirmation to close and you many not end up being the ultimate buyer of the property. In this video, I discuss a specific sale in which four buyers purchasing a property as partners (all attorneys) could have have had a very bad day.