Real Estate Joy Ride

Its the end of the world. This is it. You need to crawl under your desk and get into the fetal position. Your financial future is ruined, little Billy will never go to college, suburban housewives will soon take to the streets rioting and looting... surely chaos and "pandolerium" will ensue.

I actually find several people with a similar view. But I can't fault them, I'd buy into it as well if I only received my information from sensationalized reports, stories, and articles found in our news mediums.

How did this happen? Why is this view so prevalent? Indulge me for a minute...

Imagine you are driving in your car-radio blaring, wind in your hair-not a care in the world. And if you let me stretch a little, not a care for the speed limit either.
(Some regional real estate markets were let loose, unchecked. Perceived value and supply inflated the demand.)

Caution thrown to the wind, you sustain your speed. Just like Micheal Schumacher, you begin your attack on the upcoming corners.
(Demand is sustained at unprecedented levels, traditional money sources decide to alter their lending guidelines and buy into the over-valuation of property by placing large amounts of their portfolio into dangerous, poorly underwritten notes.)

In the corner you loose control, the car is sliding sideways.
(The percentage of foreclosures rise, mortgage companies become land owners, supply increases, and home values start to fall.)

You quickly flip the steering wheel in the opposite direction in an attempt to regain control, and the car wildly swings the other way.
(It becomes almost impossible to get a loan, many mortgage products disappear, values remain in flux.)

You slowly bring the car back under control. Your heart is pumping so fast, adrenaline makes you tingly all over, and now wisely you slow down, turn down the radio, and continue your journey.
(Values return to the normal range, underwriting guidelines are reinstated, Supply and Demand are kept in check.)

Now back to today. Two of the main factors of the real estate problem of 2007 was with no doubt, INFLATED VALUES and UNDERWRITING GUIDELINES.

Thankfully, central Texas, unlike Miami and California, avoided both.

http://tinyurl.com/36rz3a

So, crawl out from under your desk and tell little Billy he can still go to college. Sound judgment and portfolio diversification is the key. Find out more at:

http://www.stallionfunding.com/