What's the car market have to do with Real Estate?

People are always asking me when is the real estate market coming back? I always tell them to look at the automotive sales upswing. All the data I've collected in showing that the sales were really doing well, and it's a down market why is that? Why is that?

The reason why automotive sales are doing so well is because people can get loans on those vehicles. It's pretty simple if you have decent credit to go down get a new auto loan with a very minimal down payment. The great part is it only takes a few hours to know if you're going to get a loan on your new car. You can also have a trade-in, that may get you a zero down payment on your new vehicle. So people flock to the automotive industry to buy their new vehicles because they know they can. The other reason is it's quick and easy. No appraisals, no underwriters, and all your questions and forms are filled out right there.

In the investment real estate world there is a lot of people who want to buy investment real estate or retail real estate. In fact they have decent credit and they like owning their own home. The problem in real estate is getting a loan, it is very hard to do that sometimes. Imagine if you had to get an appraisal on your car and have an underwriter sign off on that appraisal. That would not be the end you still have to get a second appraisal and the lowest price would be the appraisal of that piece of property. Then you have to supply all your bank statements and financials to the loan industry to get those in underwriting. Hopefully they get to it before all those documents become obsolete and they need them updated because they've left them on their desk too long. If they find something that they don't like you have to write in endless explanations of why you did what you did. After all that you have to get a clean title and hopefully you get the best interest rate on that property. Imagine if you had to get loans on cars like this, would you do it? Would there market be doing as well as it is today?

The good news is I believe that new loan specifications will be coming out by the end of this year, and it will be a lot easier to buy property. So the ones that can get the real estate at these ridiculously low prices will prosper when they do change the loan requirements. That is why I like staying with the most affordable type of investment real estate on the planet. I also want to be over 15% on my net rental returns and highly desirable areas to live in.

So buying today at these low prices will make it easier for me and my investors to make substantial profit in the near future. Buying today in my opinion is a great time to buy because of the low prices. All these properties can do is go up in price and help you build your retirement nest egg so you can live a great retirement and life. Check out the properties we are currently doing at Rooftopvideo. Brett young Valley Realty