Bail Out? What does this mean to us?

Hello Friends,

Wow...is our country in a mess. The bail out is the only thing on the news right now. What is going to happen???

Here are my thoughts...

As I am sure you know that Washington Mutual went under last night.The problem with the bail out is that it appears to bail out banks, not homeowners who are facing foreclosure. What will happen is that the government will buy up all the inventory the banks hold. I believe that all the purchased properties will then be dumped as cheap as possible to free up money and begin repaying the loans given.

Bank-owned properties will be cheap and easy to buy for a while...Once the bank-owned properties are off the books of the bank, the banks will start to lend money again...being more cautious than before.

By jump starting the lending industry...it should give our economy a boost. The problem is that millions of people are in foreclosure right this minute and no one is talking about how to STOP the foreclosures.

I am hoping that banks will do loan modifications with distressed homeowners and give them a fresh start.Unless the interest only and adjustable loans are dealt with, we will be right back in trouble very soon.

We are advising our students to find homeowners in distress, do the short sales, and then flip properties to landlords or start building rentals for long-term wealth. For the students who can afford it, rentals are a good option because when values go back up - you will be sitting on a goldmine.

In the mean time new investors need to flip to landlords - not rehabbers. Rehabbers are having a hard time because they sell retail and can't get people approved for loans.

I think people should focus more than ever on real estate. Most of the millionaires who came out of the great depression made it in real estate...

Now is NOT the time to bail out..it is the time to gain extreme wealth...

I will be back blogging next week and will keep you posted daily...

Have a Blessed Day,

Dwan
www.theieu.com