Credit Crunch

It finally happened. As one who generally feels immune to the inane chatter of the local and national news it took some time, but I have fallen victim to not one but two national threats; swine flu and the credit crunch.

2 plus weeks after the pig flu I am feeling much better but my cash reserves are more guarded than ever. One of the things that allows people to make money in real estate is called leverage. Simply put you control an entire asset but it only cost you 20 percent down. I have played this game quite well and am far from any kind of difficulty and at the same time I am going to have to change my game plan to buy my next property.

Dear Chase Bank,
I, and people like me, are not the problem. My credit score is 815 and just because I did a good job showing Uncle Sam how much money I "lost" in real estate last year is no reason to punish me. Perhaps if you left these decisions up to people rather than an equation we would not me in this mess. People are harder to lie to than equations.
Much Love,
Ben
So anyway. Moving forward, anticipate that credit, even secured home equity credit will be more difficult to obtain. Tighter loan to value numbers as well as debt to income ratios could be your downfall. Keep more cash on hand for emergencies and planned large expenses. In good times and in bad, cash is king.

Incentive equals motivation?

My wife Sandy and I are already homeowners so why should we not be able to take advantage of the governments offer for an 8000$ tax credit? I say it's a bunch of hooey and if I were not reaping the benefits of the credit on the back side I would be angry. So here is the deal. If you qualify, buy a house so next year you won't be angry like I am now.

There is no time like the present to buy a home. On an starter home that $8000 amounts to almost 10 percent. Even if we are not at the bottom, do you really think you could lose 10 percent by buying now versus a year from now. I say it would be tough, even if you tried. . If you are any where near ready, team up with a broker an get to work.