The New Normal
You can still get rich in real estate, if you're paying attention!
For the past three years we all have been hearing this “new normal” term thrown around like a Frisbee. What exactly does this mean to you and me as investors? Well, for one, if you miss the value of clearly understanding that EVERYTHING in the real estate business has literally changed almost over night, then you're setting yourself up to miss taking advantage of this "New World" opportunity.
Everything seems to be running along as usual, doesn't it? Nothing could be further from the truth. No matter what anyone tells you, highly successful real estate investors know that there has always been and will always be only two tracks running simultaneously in business – the inside and the outside track. If you’re not on one, you’re without question riding on the other.
The following is one distinction at the core of how I made so much money so quickly in the last down turn: You must become a “financial information interpreter.” Not only must you be aware of the actual changes in regulations and policies as they affect the real estate industry, but you must also develop your ability to interpret what those new changes mean and how will they impact your daily business. The more you do this, the better you will become at identifying what the next change will be and soon realize not all changes are detrimental or permanent.
In fact, most restrictive policies and guidelines which appear to be new today are actually old reactionary, politically-tainted ideas that have been taken out of the closet, dusted off, slightly rehabbed and presented to us as something brand new and in our best interest. (Kind of like how we sell a rehabbed, fixer upper.)
Since the institution of The Housing & Economic Recovery Act of 2008 (HERA), pressure has been placed on Fannie Mae, Freddie Mac and other lenders to fall in line and comply with federal law. And now the federal government (through Fannie Mae and Freddie Mac) has begun to enforce laws that require contractors doing business with them to reflect the ethnic make up of the areas they serve when deciding who will receive contracts for providing REO broker and short sale processing services.
This will impact how they deliver their REO inventory to the marketplace.
Consequently, the number of agents being approved to provide these services in my area has effectively increased the number of new REO agents by more than thirty percent. This is a tremendous opportunity for new real estate investors interested in buying REOs that presently do not have relationships with top REO brokers in the areas where they invest.
Being a “financial information interpreter”, I recognize this change as the very first step signaling the coming of the inevitable increase in listings of REOs and short sales which we, as investors, have been (impatiently) waiting for in the past three years.
I suggest you check out your own area and position yourself accordingly. Get out there and meet these new agents who have already started to receive an increase in their short sale and REO listings.
That’s what we’ve done and it’s already working.
Tony Alvarez is a successful real estate investor in Southern California who went from bankruptcy to making millions by working with real estate agents that specialize in selling lender owned (REO) foreclosure properties. Tony also teaches classes on how to get the edge making millions in this crazy unpredictable real estate market. Contact: www.TonyAlvarez.com; www.TonyAlvarezBlog.com
Negotiating Tip 114: Retreat Negotiations
March 29, 2019
Negotiating Tip 113: Activating Our Opponent
March 28, 2019
Negotiating Tip 112: Misconceptions
March 27, 2019
2021 Real Town The Real Estate Network