The Fed Chairman Say Bubble Has Burst.
Yesterday in his comments to congress Fed Chairman Ben Bernanke said that the he thinks the housing sec was cooling and slowing.
"The Fed must tread carefully because of the slumping housing sector. Commerce Department data released Wednesday showed that housing starts for single-family homes were down 6.5 percent last month, and 13.8 percent from last June. Further rate increases could turn a chill to a freeze." He believe that higher intrest rates are creating a buyers market.
After those comments the big networks began running stories about slow markets and high foreclosure rates.
So how do you plan to react to this news. Buy and hold, look for more rentals, buy foreclosure and hold longer for smaller profits? Just wondering.....
Panic,
Do you really think that pay is to blame? I think much like stocks or oil there has been a lot of speculation. It is that old saying when the local cabbie and shoe shine boy are giving tips and talking about an investment it is time to have moved on. I was at my highschool reunion and so many were talking about how in the last year they had gotten into real estate. Made me worry. While real estate is local you can see a lot of the same signs as the tech crash. My 2-cents
The process is called assigning a property. You need a special sales contract to assign this home to your friend. You title co. is your friend and they can help you draft a contract. One must work those relationships at the title co in order for them to help you but once you start doing more properties they will want your buisness. Some time being knew to the industry is to your advantage. Tell them your new and you need advice on how to word the contract then get your friend to sign it. Drop it off at the title co and walk away. Set a closing date and its as easy as looking on the calander for when you want your $$$!
You can do one of two things:
1.) Sell the property to your friend for 650K
2.) Secure the property under contract, then use an assignment contract to transfer the deal to your friend.
You have been told in an earlier post which has the best tax advantage.