gregorygarver.com

[Brandon]

Ok, I recently stumbeled accross "The Inverse Purchase" system by John Alexander. I did some research there is a lot of debate on the net about it. Some say it's legal, some says it's illegal. Well, I am past that because I have had 2 real estate lawyers, and an accountant look at it, and it's all legal. There are also about 5 more ways to do basically the same thing and it still be legal(at least in Georgia). So please, no comments about it not being legal! Alright, so here is my question...With this program your working with sub-prime lenders. How hard is it to get sub-prime lenders financed now? I know there is a lot in the news about the sub prime market being in trouble. But, have they just tightened up on their money and requiring better qualified sub-prime buyers (higher credit scores, more income, longer job history)? or is the sub-prime market coming to a halt or what?Is there still a chance to make money in this market? Is it just a little harder now? or what?

[newmexicorealestateforms3]

Because of the messes created by the so called creative loans made in the subprime industry and the lack of regulations on them the Feds got caught with their pants down on this one and now there is a rush to put a damper on the previous practices. They overreacted and now began by now putting the squeeze on all lenders mandating a higher standard of qualification before lending which meant a whole bunch of people who would of qualified under the regular lending qualification have been thrown into the sublending category and there is no money for them. In my opinion the lenders that are involved in these subprime loans are loosing on the average of $60k per loan that they foreclose if you look at all the costs involved and the opportunities lie in acquiring those foreclosures and either working with the original borrowers on a lease or buyback agrement or just selling them owner financing if you acquire them at a real price. Something like this happened back in the early 80's when the oil industry went belly up and everyone adjusted by selling everything they could seller financing.My opinion, and opinions are like lawyers everyone has one.

[Yanswersmonitorsarenazis]

The subprime market is a disaster right now, as is the "Alt-A" reduced documentation stuff. It'll settle out eventually, but there's basically no zero-down money left for anyone with weak credit. Probably need 640-660 scores or higher, full-doc only.A couple years ago, you could get 100% stated income financing with a 580 score. Can't imagine how those loans didn't perform...So, if you think this works, great. Finding buyers can't be easy right now.