According to recently released reports, real estate sales are at a severe low. There are more houses on the market than ever before. Real estate agents are telling us that it is a “buyer’s marketâ€. If this is so, then why are real estate agents looking for second jobs. Take as an example Anthony Mercadante from Las Vegas, Nevada. He has taken a job doing marketing for a web based promotions company. Why, because even in one of the fastest growing markets in the country the homes have just stopped selling.
Have people stopped trying to buy homes for themselves? No. Have real estate investors all of sudden changed their course and started investing in things like maps that claim to lead to buried treasure? No. So where does the answer lay?
The standards of the lending industry have changed dramatically over the past six months. A raise in interest rates which have caused many properties to go into foreclosure status. What was once thought of as creative financing has now evolved into a ship sinking under the weight of its own debt. In an effort to ward off fates similar to American Home Mortgage Investment Corp. who has recently filed for bankruptcy, lenders have taken outrageous steps like sending out blanket e mails to mortgage brokers stating that if an applicant has two properties under their own name they can simply forget about getting approved for a third or fourth property.
Even those with 750 plus FICO scores have experienced the pinch. Take James Hughey, one of our nation’s top business advisors, as an example. Recently he attempted to purchase a second home. Even with strong personal credit and positive cash flow Mr. Hughey had to answer a never ending series of questions; many of these not even having to do with him or the property in question. The good news is that he was able to purchase the home however; everything was still up in the air up until thirty six hours before closing.
It is no longer possible to build even a modest real estate portfolio using your personal credit in today’s lending market. The cycle of refinancing and then acquiring more property is now a fantasy. The solution to the problem rests in an often untapped resource. Many investors and business owners have heard of the benefits of incorporating. More and more of these people are discovering that by building the credit of the entities that they have incorporated they are able to purchase more properties and help their business grow. They are accomplishing important goal: Separating their business’s credit from their personal credit. No longer are they judged by their personal score. Their business is able to not only do more and return more money; it can purchase properties with mortgages all on its own.
For more information visit:
http://www.fasttrackcredit.com
Or call 1-800-910-9919
