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Friends, everywhere we turn: we hear, or see how bad the real estate market is. Everyone is looking for solutions! but before we can fix something we need to know how we got here in the first place. Now I am not a speaker, or entertainer and I have never done a radio show, but I thought it would be a good idea so that I could share my views with others, at the same time see if others share my views. I am not an expert in any field but I am a real estate investor in the local Miami Fl. area. Here in S. Floirda the market has turned up side down in a flash, and of course when things go wrong what's the first thing we do, we start to point the finger to show who did it. I guess that makes us feel good. Anyhow let's start our journey and see where it takes us.

My mother use to tell me, Son if it's not broke then it does not need to be fix. Now I remember these words right around the time that our government wanted to rasie the interest rates. I asked why would they want to do that when things are going well not great but well. So the increase began not much but slow, this started around the late part of 2005 if my mind serves me right. By the time 2006 hit some investor friends of mine were betting on when the next rasie would be and what shape would the real estate market fall in. Sure enough rates started to clime from about 5 3/4 for a 30 year fix to about 63/4 in the midlle of 2006 then all of a sudden the market slowed down some people started to get scared and a wave of slow buying was sweeping the country.
Now don't get me wrong, there were people out there still buying homes in record numbers, And we were in a sellers market for sure, some people were buying to upgrade others were buying their first home then there were those that were buying homes they knew they could not afford on a regular basis but becasue some mortgage lenders were coming up with some great deals they were buying $600K homes with a budget of $70K to $90K a year. So here in South Fl people that were buying these high end homes started to complain about the Taxes being so high. Now the real estate agents that were having trouble selling homes put the blame on the appraisers they are marketing these homes way to high. By now the news media are all over these stories and they are getting better mean while the rates were about to reach another level. Now everyone has slowed down buying real estate to the point of standing still, I mean nothing is moving. By this time everyone is looking for and answer as to how was it that this could happen, we were doing so good  and it's been months and agents and mortgage brokers are not making money nothing is moving like I said. 

Ok so enough of the bad news heck you don't need me to bring it up, you could read or watch the news hear your radio and you'll hear the same bad news.
What amazes me, is that no one is really doing something to fix the problem. The problem could be fixed the same way it got started. Now as I watch the politicians fighting for our votes to be elected president of this great country, all of a sudden they have the answer on how to fix the problem. These were the same people that were in office when the rates started to go up. The more I look at this whole mess the more I wonder if this whole mess was not plan by our government. After all they are the ones that have the power to rasie rates.

So let's fix the problem. Cut down the interest rates a  few whole points not at the slow paste that they are lowering the rates right now, it almost seems like they are trying to test lowering the rates enough to where the market will jump back to what it was a few years ago. Next, freeze all foreclosures process for main residental homes, and allow all these loans to be refinanced with better rates and lock these rates at 30 to 40 years and set a time period for when this process should start and when it should end. Do not allow mortgage programs with interest only payments to be placed on first time home buyers, Place a realistic measure on appraisal so that appraiser can't mess up something the the tax rate book. Well I could use some input, like I said I am not an expert and this only my ideas from being in the trenches buying and selling homes.

Our next Blog is going to show you who is doing great in these bad times any why.