The many new private lenders out there who want to fund projects with me always ask: Are we there yet? and I reply: Where? After a little chuckle they yell: the bottom! A report by Deutsche Bank last week shows still more price drops to come. All the statistics in the world will never predict a true bottom. That's because there are too many unknowns and secrets.
The first and most important one is: What will the banks do? No one knows. All we can do is use all the information we do have and make an intelligent plan. The key piece you need to know is what are your exit strategies? Do you have a plan A, B and C? You should evaluate each real estate investment with plans in hand.
If your plan is to buy and hold for the long term, how will you get out if you need to sell short term? Will the property have enough equity? What is your cushion or safety net? Answer these questions and others and you will have a secure, profitable real estate transaction. To find out how download our free report www.PrivateLendingED.com - All the best!
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