THE  AMERICIAN  DREAM

Each of us has within us this dream. But how do we get our piece of it? How do we get to purchase that first home? The average American will own four homes in a lifetime. Some may never own a home, but we all desire to own our own home.

Homeownership is at an all time high in the late 1990’s and the early 2000’s. Why do some people get to own a home and others do not?

First each and everyone can own a home but not everyone will. Owning a home is work, you cannot just push a button and say fix it. If you hire all the work to be done you will be broke and it will cost money. If you say, “I would rather rent because it’s the landlords job to keep it fixed” you will never get ahead. Home ownership means making sacrifices, just like it’s easier eating out than to cook every meal.

Shortly, I will talk about all the various people I have come into contact with over the past 25 years in the real estate business who want to own a piece or two. I own many pieces of real estate it’s my retirement. I don’t have to worry about the ups and downs of the stock market. My rentals will bring a nice retirement check each and every month.

My goal is to retire early; it too is everyone’s dream. When you turn 25 you say I want to retire when I’m 40, when you turn 35 you say I want retire when I turn 50. I turned 45 and said when I’m 55 I’m outa here. I just turned 50 and I think this time I might make it, 55 and I’m outa here. But we will see…

Home Buyers can be broken up into several categories, First time homebuyers, Moving up homebuyers, Buyer who are restarting there life, divorce, remarried, deaths, beginning Investors and seasoned Investors. Within each group you have the W-2 wage earner and the 1099 self employed.

Lets explore how all purchases work. Well do you or don’t you need any credit? I believe you do not. Some people will disagree with this, but think for a moment. When was the last time Grandma’s house picked self up off its foundation and went on vacation? The answer is never. That’s the beauty and the secret of the Real Estate it does not move. So the lender can expect the property to be there forever. As long as it’s insured the property will have only minor wear and tear. It’s not like a TV or car or boat. Those possession can be anywhere in a matter of minutes. This is why lenders are so willing to lend on home loans and you do not need any credit. The credit is the home. If don’t make the payments and your lender can get the property back.

Before most of us were born, including me, in 1929 the stock market crash. This event brought about big changes in peoples lives. Before 1929, did you know no one ever paid off a home? The few home that were paid were from people handing down a home from one generation to another. The stock market crash changed everything for everyone.  In 1935 a new governmental program was created known as Federal Housing Administration (FHA). A program designed for home ownership. Even today almost all home loan programs are modeled after the granddaddy of them all. Now as we journey on we will talk about everyone’s first home.