My career began in a city that was once a national powerhouse.
In 2002 when I became licensed, the national real estate market was relatively healthy, it was booming in the diamond (Western) States, however I noticed in my county..Genesee County, people were losing their jobs by the tens of thousands at a time..the collapse of the automotive industry in the Flint area was devastating to the local and surrounding communities.
The auto workers serviced the doctors, lawyers, dentists, grocery stores, and virtually everything else.
When those layoffs, pink slips, position eliminations, whatever they called it, happened, created this ripple effect..
The typical household was fortunate to have 2 incomes that may total over $140,000 per year as supervisors respectfully. In a place where cost of living is very low, this would enable many families to have the typical lifestyle: two new cars, General Motors of course, $150,000 mortgage at least, cabin vacation home up north, 4 kids, 2 of them in college.
What happens when suddenly you start going to work and your friends, family and neighbors are all losing their jobs?
Besides the overall obvious personal struggles this causes between families and couples, financial strains, and of unfortunately deciding which bill to pay this month, one of the first “luxuries” to be affected were their kids’ college tuition..the extra savings funds were needed to live on, with no security from a company that took their youth, that promised that it would be there for them, had suddenly changed its tune, changed its direction and its loyalty…
After the credit card bills and medical bills became delinquent, lastly came the mortgages..the vacation homes, and it’s toys that went with it..then eventually any personal rental properties became liabilities as the mortgages began to “adjust” and “reset” terms that many Americans grew to despise. Reaching into your shrinking savings to pay the difference of a mortgage to house another family just wasn’t an option anymore..so course those renters lost their homes as well.
Now you are doing whatever you can every month to make this escalating payment, of course you run to your mortgage broker, and ask to get some of your “equity” out..then you realize you had equity, because of course your mortgage broker would love to re-finance you again..but he tells you that you don’t qualify anymore..besides..the value of your property has decreased 50%..and with your debt ratio off the charts, with your drawer full of maxed out credit cards, which has lowered your credit score to below 600, now what to do?
Where does it end?
Most filed bankruptcy, kept their properties a bit longer, then eventually lost their American Dream before they even got comfortable saying they had achieved it. It pains me to tell this story because it’s not a work of fiction. It happened to me, it happened to my friends, and to my family.
Trouble out West?
This story is familiar I’m sure. It happened in Flint about 5 years before it reached the West coast, I originally moved to California in 2007-2008 the market was red-hot..but talks of the bubble bursting was the usual industry gossip..
Not being familiar with San Diego, I knew it’d be a struggle jumping out as a new agent, so I decided to start training to become a mortgage loan officer, I watched from the inside my career choice starting to implode once again! Same thing happened..the rush to obtain credit amidst an impending economic Depression lead people to their trusted bankers once again, only to be turned away. Overnight my job was gone.
A new perspective
Watching a couple full real estate cycles in my 17-year career has given me a complete understanding of the industry. I have witnessed this business break people down, revealing their true financial positions, and it was not pretty. I always wondered how people could afford such a nice car, all those luxuries, beautiful home and etc.. to discover that people would live off of their home equity line-of-credit was eye-opening!
When I first started in this business, they lied to me and told me that property never loses its value. I know better now.
When I was a young real estate agent at RE/MAX, in Grand Blanc I wanted desperately to be in position like the top foreclosure agents, I too wanted to be direct to the banks and get their foreclosure listings..I knew I could sell those properties! But I was too inexperienced to connect the dots. A decade later, I’ve had lots of experiences with banks and financial institutions concerning loan modifications, short sales, etc.
My quest to be Direct was fueled by all this passion.
The current state of the market is looking very positive
Here it is July 2019, and we can see massive market improvement. people have gained equity again. And yes they are rushing out to get that money..can’t say I blame them, somehow their equity has been hiding for 10+ years..
Investors know what this means, as the market improves inevitably the private lenders has started loosening their guidelines to qualify, and guess what?
All you guys who got so rudely displaced from your homes or lost investment homes years back can start to qualify and buy again!
Many past millionaires loss their shirts from this recent “recession”. That means NEW millionaires will be made!
The stage has been set. The cards are on the table.
It’s time to reclaim the Dream, not in a corny cliche’ kind of way, but being real, sick and tired of being sick and tired. Doing the same thing expecting different results. We were all affected in some way by this “robbery” of our dreams. OK. those big bankers got us. Let’s get back up and learn from our mistakes and play the game smarter this time.
Building wealth through home-ownership considering the security of investment, low technical knowledge needed, low-interest rates right now, all add up to an amazing ground floor opportunity. The chance to buy properties that cost monthly $200-$600/per month but rents for $900-$1,300 guaranteed every month is simply a no-brainer. These can be bought in the South, Midwest and Southeast.
Start building your rental portfolio now!
Hiring a contractor and property management company isn’t very hard either, both of which are eager to earn your business right now! Building a portfolio of income generating rental properties away from your home area does not need to be complicated.
Real estate is the main way to build wealth, and to acquire it, applying for a mortgage to get pre-qualified is a great start. Also if you have access to hard capital right now, would be just as easy.
Some hot markets outside of the obvious Southern California sub-markets: San Diego, Los Angeles, Riverside & Orange Counties right now are: Alabama, Atlanta, Florida, South & North Carolina, Arizona, Texas, Indiana, and Georgia.
Investors are seeing great returns with common strategies that include fix-and flip, fix and hold for income, and land contract/lease options.
This is the redistribution of wealth you’ve been waiting for. Don’t lose your opportunity!
With the connections of mentors, I have been able to establish direct relationships with private real estate companies, banks and off-market asset sources that have over 2,000 assets nationwide.
Currently living in San Diego, California, enjoying the weather..
I have made it my mission to help rebuild America one property at a time! One community at a time.