Rates are low but loans are very difficult to close. So many of my prospects are under-water or don’t qualify because of income and credit issues. It is hard to keep up a positive outlook when things are so tough. Is there going to be a light at the end of the tunnel? Chris from Nevada
Part Three: What Can You Do About The Future? Two weeks ago we talked about how the challenges we faced and then we spoke about planning for this year. But I find many questioning even the future of this industry. That is why I decided to address the state of real estate in our economic commentary this week and you can see that I am positive not only about the way the market is turning, but the long-term future regarding this industry. People will need places to live in the future and there will be a lot more people in the United States in the future. That is the bottom line. Your keys to future success?
Adjust your attitude. For the first time in our history, we are seeing people question the economics of purchasing real estate. When the market turns, these non-believers will fade away. But you must make sure your attitude is 1,000% behind home ownership now. It is those who are leaders who will drive the next up-cycle. Not those who lag the trends. Lead with your attitude.
See the opportunities. There are many opportunities right now and they will not fade quickly. Are you in an area in which homes are underwater? Then there are opportunities to become a short-sale financing or sales expert. Many don’t know that there is a clear alternative to walking away from their mortgage and that alternative may enable them to become an owner more quickly in the future.
Is there are a lot of bank-owned homes in your area? Then there will be opportunities to be a rehab expert. Are you familiar with FHA 203K and Streamline K financing?
Some foreclosures will become rentals. That means agents will be property managers but also loan officers will be financing investors.
New homes will have to be built. As builders start building more homes, smaller builders will again start up and they will be looking for agents to sell their homes and loan officers to finance their homes.
New agents will come into the business. These newer agents will not have relationships with loan officers and they will need education. Will you be there and ready to take advantage of this market?
Financing rules will loosen up. As the market recovers, there will be some loosening, but certainly not back to the days of the subprime boom. That means refinances you gave up on previously could be viable, opening up a whole new market. This may not happen all at once, but you need to monitor what is going on in this regard.
Immigrants will dominate real estate. Much of this growth will be through new immigrants, who will need rentals and through growth of previously immigrated families who will begin to purchase real estate. Are you integrated into these ethnic communities?
What do you think will be a growing area in this coming year as well as into the future? Leave a comment.