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Our mortgage rates -- an all time lows but are people buying homes and if so where do I yes tiny -- all founder and president of team investments with us now.
There behind somewhere.
Yes clearly not in New York music -- -- -- I -- I have -- well interest rates are low prices are -- the light bulbs going on people are seeing that this is the opportunity.
States that went way up came way down and are now bouncing on the bottom Arizona Nevada Florida act.
Those are really the states that are really seeing slight increases cash by as though this this just the investors look flippers of electrical in the coming in buying cheap with cash.
Wait for this rebound turned a profit.
Yes but -- longer term -- than they where back in the that you're not holding them for thirty days and making a big profit making exchange.
-- -- five your holds these you're buying for cash -- so that you're making that extra income.
You know with your job with everything else you're buying.
And this is extra income for in line rental income yeah -- right interesting so we're not flipping you're not seeing people coming in and flipping these homes you're saying that experts flat.
I do not advise anyone any novice real estate investor to flip the home right now there is too much risk and we have to make wise decisions in the real estate industry and we've made so -- bad decisions -- -- real estate -- it is time to make -- it's.
So this is a buy and hold game this is not a flip game for any -- -- -- give you perfect example -- I bought at auction for fifteen years in Arizona.
I the other day I went I haven't bought in two years because price they're running the prices up the other day I went to bed at 146 the house at auction sold for 210.
-- Brit that's ridiculous -- a pub bad -- so that's people just not knowing the market again so.
Have a good professional know what you're buying an -- buying for have -- end goal.
Still a lot of inventory of -- though right a lot of inventory and still a lot of underwater homeowners eleven million -- -- matter how much.
He said something in the in the commercial break I found really listing is that.
Some of the cash is coming in for these homes is not necessarily the big time investors little white liquid cash -- -- this is parents cashing in.
Money to get cash -- its right to.
There are seeing this opportunity they've lived through these cycles they paid 18% interest rates -- they see that 3% and what's great about mortgages right now is FHA you don't have to have reserves and you just have to have the down payment and the mortgage insurance.
And three and half percent down.
With conventional loans you have to have money -- -- bank yup but you can still get in with 5% down.
So this is really if you have good credit and a job there by verifiable in -- it's time.
-- that time but you have to willing to pay the mortgage insurance premium often on those well yes you do.
OK so let's talk about our areas quickly when do you see that our -- turning around New York Florida even Florida the places that got stuck in the robo signing mess I think you have a good three to five years how because you have to clear that inventory.
States like Arizona that we're nonjudicial we didn't have the robo signing to -- So our inventory is being eaten up by investors -- homeowners where is this you have a wild before you see that inventory starts stabilize that president who learned.
The -- under the diet I'm gonna die in my house anyway this matter what happens.
Kinda like values are great thank you a team investments life house in the belly of the son of things you know what -- we age that you my house design and you don't -- to -- thing.