Professional Real Estate Investor Versus the "Flipper" By F Lanni At Isnare.com Ezine Articles

In one of the toughest Real Estate Times in U.S. History we will see the next new multi millionaires be made from buying real estate at over sold prices.. The professional real estate investors who foreseen a housing bubble never could have expected to see a crash of real estate and the magnitude of it.

The experts who knew that there were many so called "real estate experts" who played the flipping game by utilizing unprecedented easy lending practices by banks and mortgage companies either with no money down, or 3 -5 year arm,or in some cases a negative amortization loan thinking that they could just sell the home when it was finished or they thought it would appreciate enough to cover any negative amortization amounts. Well you can clearly see where this has led..

As bad as it may seem to the average person Real Estate in the Florida was showing some signs of improvement. There is no question that the run up in prices was far over done and a correction was warranted. I firmly believe that Real Estate has been oversold and there are many homes that have significant equity in them that when the credit lending eases again I think the Professional Real Estate Investors will be reward.

Banks in the mortgage lending business will have learned a lesson from what they are going through with all these bad loans and underwriting will be back to the way it use to be, Qualified people who could prove income, have the ability to put down 10% to 20% have their taxes escrowed, and maintain cash reserves of at least 6 months in the bank and prove it with documents will be implemented again. These no assets no verification loans will be non existent.

Although the government bail out plan doesn't directly help home owners, the federal government is willing to put our future taxes dollars on the line for bad mortgages that these banks recklessly wrote, and they plan on carrying these loans for 5 years or so because they feel there is a potential for the Real Estate market to turn around and actually make a profit on these homes. Isn't that the same scenario the "flippers" speculated on and look at the huge mess we are in now.

The Real Estate Market has had significant negative impacts around the world not just in the U.S. The credit tightening is a global issue and in order for this market to turn around the members of G-7 summit who are meeting this weekend need to come to an agreement that will be recognized an implemented world wide in finding the solution to easing credit.

I'm comfortable in saying that the Real Estate market will eventually turn around, i just won't speculate on when this might happen. According to experts they originally thought sometime in 2008 they were expecting to see the bottom, now it seems experts are predicting early 2010.

I think we are going to see more foreclosures than what was initially thought. With state taxes suffering, the economy tanking are we heading into Depression worse than in 1932?

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