Are you sitting down? I hope so!
I have been reading more then a few articles lately that seem to be trial balloons sent up by the Adminstration regarding homeowners and foreclosures. One article recently talked about the Government paying for the mortgages for homeowners who have lost their jobs... and there have been several others in the same vain.
Here it appears that the Government wants to allow homeowners who loose their homes to foreclosure to be able to RENT the property back from the banks. And... as I stated in the title, Peter, I Cannot Imagine a Worse Scenario!
Lenders today are ill equipped to deal with the many challenges they now face, and now the Government wants them to become landlords. It's not going to happen! In my experience, tenants by nature are a challenge... and now you have a situation where you just took someones home, but you tell them they can continue to live in it. I just don't see this working.
What happens when these new renters stop paying rent? Will they get evicted? I doubt it. And how will all of this play out in those states like Maryland and others that have some very "pain in the butt" foreclosures laws? You know the ones where you can't rent a home back to the homeowner who was just foreclosed on.
I don't have all of the answers... but there may be some opportunities here. But with that being said however... it looks like our "cheese" may be moved yet once again.
So... what to do?
As I have said before... uncertain times create very certain opportuines. You just have to be open to them!
And... owning income producing properties is where some great opportunities are in today's market. In fact, I had one investor tell me that he thought the home ownership rate which I believe is around 68%, could drop down to the mid-forty percent range. While I think that is a bit radical... I am very certain that the homeownership rate is going to fall... but the need for a roof over the heads of 300,000,000 plus people will not.
If you are of the same opinion as myself and others and would like to explore buying and owning rentals to re-build your wealth and provide a hedge against inflation then come join me next week, Tuesday July 21st as I am going to spend 3 hours on the topic of "Re"-Building Your Wealth through Income Producing Properties.
The details to attend are provided below.
Oh... and if you want to see how to completely renovate a 5-unit apartment building and a few other homeowner properties then come join us for our next Rehabbers Lab. It will be held on Saturday July 25th, 2009. To sign up just click the link below.
I hope to see you at both events.
To Your Success...
Pete
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