What impact would a complete meltdown on the financial system have on your investing career?  Would it have an impact — or would you even notice?

In case you haven’t noticed, our financial system is struggling to recover from the near-collapse of Fannie Mae and Freddie Mac and the subsequent takeover.  Since then, there’s been an unending parade of bad news.  If things continue in the direction they’re heading, there seems to be widespread agreement that credit could be as hard to get as a parking space at the World Series.

Are you prepared if it happens?

Now is the best time to get your financial house in order, so if you haven’t started the time to act is NOW.  Fix any lingering credit issues because lenders are growing more and more selective about who they’ll work with.  This doesn’t mean you won’t be able to get a loan or that real estate makes a bad investment.  As a matter of fact, real estate makes even better sense with each passing day!

What it means is that you have to be is prepared.

You’ll still be able to get financing for your deals, but it will likely cost you a little more.  So you may have to spend a few bucks more than you had planned.  Here are three strategies that can help:

1.  Hard money lenders –they’ll charge you more, but with today’s low property values you still ought to be able to wind up with positive cash flow, in spite of the higher interest rates.

2.  Private money — Line up private money lenders.  They’ll still say yes when everyone else says “no” — if the price is right.  It takes a little work, but it can be worth the effort if you’re able to line up much-needed cash.

3.  Creative financing — Real estate investors are a verstile bumch.  If all institutional financing were to dry up in a day, you’d still be able to get creative in finding motivated sellers.  If you haven’t already, learn the ins and outs of how creative real estate finance works.

The mail still gets delivered when it rains.  There’s a financial storm brewing on the horizon and the wind has begun to blow.  Regardless of what happens to the credit markets, you can still take advantage of this unprecedented opportunity to expand your real estate empire.  Get out there and deliver your future!

Blessings!

Charrissa Cawley

Share This