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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (40698)	9/5/2005 9:39:30 PM
From: X Y Zebra	Respond to of 306849

well... the market is the market... if rates are 5 or 6 or whatever the hell they are... (particularly on a fixed rate) and if one nows what are the skills that are needed to come up with the needed $$ to cover the obligation.... what are you going to do ? it is either you jump in or not... there are no guarantees for anything... in the end, we will all be dead... so for now... those who took the plunge, say 5 years ago, are now as happy as pigs in mud... and all the whaling about the armaggedon scenarious ? well... who knows... as for 799,000 and payment of $3,500 well that's the arithmetic... you cannot fool numbers.... them are them... and quite frankly i do not think many lenders lend money based on how good the BK laws are or not... i think (i am not a lender) they look at it at the quality of the borrower and the collateral.... one thing yu cannot possibly see on many transactions are things like additional collateral or reciprocity in deposits with the borrower.... using the sample above.... if 3,500 buys you one month of payment, then take 3,500 x 24 = 84,000 so if you have stashed away 84,000 in reserves, it gives you a good comfort zone to bet that a purchase of 799,000 may appreciate some over a 2 year period.... meantime, you are living in that investment... and no, i am not suggesting that every borrower has 84,000 stashed away... i am just giving you some other angle by which transactions could be built.... i mean... how many people had way more than 84,000 in the market... where is that money now, as opposed to money invested in the RE market (on a reserve basis).... take it from there....