Comments on: Dow Collapses Because of Bad Credit?? http://credit-millionaire.com/qanda/dow-collapses-because-of-bad-credit Sat, 22 Nov 2008 08:29:42 +0000 http://wordpress.org/?v=2.6.2 By: Jeanette http://credit-millionaire.com/qanda/dow-collapses-because-of-bad-credit#comment-217 Jeanette Thu, 02 Aug 2007 03:55:25 +0000 http://credit-millionaire.com/qanda/dow-collapses-because-of-bad-credit#comment-217 Hi Donna, Thank you for this heads up. And, thanks for your great credit book. Joy, Jeanette<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('217','Jeanette'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('217','Jeanette','Hi Donna,\r\n\r\nThank you for this heads up. And, thanks for your great credit book. \r\n\r\nJoy,\r\n\r\nJeanette'); return false;">Quote</a></div> Hi Donna,

Thank you for this heads up. And, thanks for your great credit book.

Joy,

Jeanette

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]]> By: Donna Fox http://credit-millionaire.com/qanda/dow-collapses-because-of-bad-credit#comment-211 Donna Fox Wed, 01 Aug 2007 16:48:54 +0000 http://credit-millionaire.com/qanda/dow-collapses-because-of-bad-credit#comment-211 Jorge, Wow, that was fast. I expected a little more lag time on the rate increase from the dow debacle (I love that name) I expect that we're going to be in a period of credit tightening. That is, that the availability of funds will decrease and the cost of funds increase. It's simple supply and demand at work. One thing we need to remember is how good we had, and will still, have it. The cost of funds in the US is still dramatically lower than anywhere else in the world. We've been spoiled. I've said that in the period from 1996-2001 a monkey could have made a fortune in real estate. It was easy. Properties were plentiful, real estate was cheap and interest rates are low. Now is the time that separates the "serious investors" from the "get rich quick" seekers. So, first, what do I see in the future? Well, as Las Vegas, formerly the land of opportunity for investors because of the new construction, has become the #1 city in the nation for foreclosures from those very same investors, I think level heads will prevail. Those who got into the game and paid retail expecting double digit appreciation have gotten out of the game (or they are being forced out now) and are licking their wounds. Investors that sought out forced appreciation (but distrssed sell retail) are still in good shape. They aren't making as much money that they did per deal, though, so they will need to develop some automated systems to allow them to do more by doing less (enter http://www.RealEstateBackOffice.com ) Will it still be possible to get credit in the millions? Yes. Will the process be different? No. Will the requirements be different? absolutely. Look for higher credit score requirements, lower LTVs and higher personal and deal-based cashflow And now, more than ever, is the time to highlight your multiple streams of income to give lenders confidence. Donna<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('211','Donna Fox'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('211','Donna Fox','Jorge,\r\n\r\nWow, that was fast. I expected a little more lag time on the rate increase from the dow debacle (I love that name)\r\n\r\nI expect that we\'re going to be in a period of credit tightening. That is, that the availability of funds will decrease and the cost of funds increase. It\'s simple supply and demand at work.\r\n\r\nOne thing we need to remember is how good we had, and will still, have it. The cost of funds in the US is still dramatically lower than anywhere else in the world. We\'ve been spoiled.\r\n\r\nI\'ve said that in the period from 1996-2001 a monkey could have made a fortune in real estate. It was easy. Properties were plentiful, real estate was cheap and interest rates are low.\r\n\r\nNow is the time that separates the \"serious investors\" from the \"get rich quick\" seekers.\r\n\r\nSo, first, what do I see in the future?\r\n\r\nWell, as Las Vegas, formerly the land of opportunity for investors because of the new construction, has become the #1 city in the nation for foreclosures from those very same investors, I think level heads will prevail.\r\n\r\nThose who got into the game and paid retail expecting double digit appreciation have gotten out of the game (or they are being forced out now) and are licking their wounds.\r\n\r\nInvestors that sought out forced appreciation (but distrssed sell retail) are still in good shape. They aren\'t making as much money that they did per deal, though, so they will need to develop some automated systems to allow them to do more by doing less (enter http:\/\/www.RealEstateBackOffice.com )\r\n\r\nWill it still be possible to get credit in the millions? Yes. Will the process be different? No. Will the requirements be different? absolutely.\r\n\r\nLook for higher credit score requirements, lower LTVs and higher personal and deal-based cashflow\r\n\r\nAnd now, more than ever, is the time to highlight your multiple streams of income to give lenders confidence.\r\n\r\nDonna'); return false;">Quote</a></div> Jorge,

Wow, that was fast. I expected a little more lag time on the rate increase from the dow debacle (I love that name)

I expect that we’re going to be in a period of credit tightening. That is, that the availability of funds will decrease and the cost of funds increase. It’s simple supply and demand at work.

One thing we need to remember is how good we had, and will still, have it. The cost of funds in the US is still dramatically lower than anywhere else in the world. We’ve been spoiled.

I’ve said that in the period from 1996-2001 a monkey could have made a fortune in real estate. It was easy. Properties were plentiful, real estate was cheap and interest rates are low.

Now is the time that separates the “serious investors” from the “get rich quick” seekers.

So, first, what do I see in the future?

Well, as Las Vegas, formerly the land of opportunity for investors because of the new construction, has become the #1 city in the nation for foreclosures from those very same investors, I think level heads will prevail.

Those who got into the game and paid retail expecting double digit appreciation have gotten out of the game (or they are being forced out now) and are licking their wounds.

Investors that sought out forced appreciation (but distrssed sell retail) are still in good shape. They aren’t making as much money that they did per deal, though, so they will need to develop some automated systems to allow them to do more by doing less (enter http://www.RealEstateBackOffice.com )

Will it still be possible to get credit in the millions? Yes. Will the process be different? No. Will the requirements be different? absolutely.

Look for higher credit score requirements, lower LTVs and higher personal and deal-based cashflow

And now, more than ever, is the time to highlight your multiple streams of income to give lenders confidence.

Donna

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