Condo Hotel Article Archive » Subprime Market’s Status | Condo Hotel Blog

Subprime Market’s Status

In the radio episode of Making Money in Real Estate with Joe Aldeguer last July 07, 2007, the group talked about the subprime market’s status. Lending restrictions has now been tightened because of its meltdowns. Joe explained why New Century Financial and Fremont, one of the nation’s biggest subprime lenders, are shutting down. It is because Wall Street banks are now cutting the funding and it results to a lot of foreclosures.

The group believed that people going into foreclosures had misused the financing tool thus they went into wrong direction. What they stated is that those people who are into adjustable-rate mortgages, or ARMs, can refinance into another ARM instead of jumping into another program like 30-year fixed rate. H. Allen, TME’s Director of Finance, said that the mortgage is a tool that you need to use to your advantage and to better your situation.

Joe shed some pointers on how to avoid foreclosures:

You have to keep an eye on your mortgage and see when is the adjustment;
Refinance before it’s too late;
Read the fine prints, you might want to hire an attorney when buying a property to look at the actual documentation;
It’s much better that you must have a good advice from a good advisory service company. Speak with a licensed advisor, call 1.800.FUNDS34 (1.800.32637.34)

On the other hand, despite of the doom and gloom situation happening in the market right now, they mentioned that a real estate investor’s thinking is “opportunity”. There are some bargains and it’s a great time to look and take advantage of those properties. Pete Becker pointed out that if you go to a mortgage or real estate professional, make sure that everything that you do fits into your financial plan.

Joe also mentioned that Hilton Hotels Corporation recently got bid from Blackstone Equity for almost $26 billion. The team’s business model is the same with The Hilton Corporation which is the hotel industry. Also, they mentioned that name recognition in hotels is important because there is equity behind each name.

Five basic principles in Financial Planning that Peter Becker shared in his Becker’s Beat section:

Elimination of debt. Bad debts like car payments, etc.
Establishing an emergency fund. Just in case something comes up you will have the money to do that and not to put into credit card. The group wants you to have at least three months of your income and six months at the best and a side account;
Proper protection. The group wants you to have life insurance;
Retirement and college planning. They believe that you have to have about 15 times your income for the last year of your retirement;
Taxes – Figure out what’s your tax bracket and talk to your accountant and have them tell you what’s your retirement going to like with the taxation added into it.

The group also introduced Mike Ditka Resort in Orlando, Florida which got a rating from Travelocity is 4.8 out 5. The group is working with other projects with very high occupancy rates in Orlando and South Beach Florida, Las Vegas, Cancun and Cabo Mexico. They’re partnered with The Morgans Hotel Group in their South Beach project.

Joe Aldeguer’s projects gives the opportunity for the average person to get into the same business model and concept that the super wealthy is doing so if you are interested in any of these projects, take advantage of the following free workshops:

Upcoming Free Workshops:
August 04, 2007 – Chicago
August 11, 2007 – Los Angeles (Introduction to Condo-Resort Projects)

To get more information, you can call 1.800.FUNDS34 or apply online at Funds34.com Making Money in Real Estate with Joe Aldeguer radio show airs every Saturday on WLS 890AM Chicago’s Talk Station, 10:00 a.m. to 12 noon.