Twin Cities housing index flat for August

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: September 16, 2011 - 8:07 PM

A new residential real estate gauge from the University of St. Thomas shows little sign of recovery in the market.

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mrobespierreSep. 17, 11 2:52 PM

I have been investing in real estate for over 10 years. I never starting holding properties until 2008 when I spotted obvious quirks in the market (ie buying for 50% less than replacement cost). Since 2008, I have been able to buy properties at 25% LTV and a few even lower than that. All of them have positive cash flow. I would love to buy more and hold onto them, but I simply cannot get suitable financing. Lenders have made it nearly impossible for real estate investors to get long term financing on investment properties where the LTV exceeds 33%. This means, the balance has to be funded with cash. After 4 or 5 deals, the average investor is going to bet out of financing. The banks just are not making loans. If the government really wants to help out the real estate market; 1) help investors get financing. Investors account for 30% of sales right now and they could chew through a huge amount of bank inventory if they could get financing; 2) compel lenders to lower credit standards for retail buyers; right now the hoops that a mortgagor has to jump through is absolutely insane; and 3) get the Feds and states to STOP SUING THE BANKS, we need them to make loans, not spending billions on legal fees and settlements.

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