Real Estate - The Velocity of Money

This lesson is really adapted from Robert Kiyosaki's book, "Who Took My Money?" I strongly encourage investors to read this book. He writes that the Velocity of Money is the one reason why rich get richer and the average investor risks losing it all. I agree.

From Robert's book, he writes "As a professional investor, I want to...
1. Invest my money into an asset.
2. Get my money back.
3. Keep control of the asset.
4. Move my money into a new asset.
5. Get my money back.
6. Repeat the process."

Signs of A Recovering Housing Market in 2013

The housing market recovery in the U.S. during 2012 was helped by the bottoming out of home prices, record-low rates, decline in foreclosure activity and healthy rental markets. Real estate analysts are pleased with the directions things seem to be heading and are anxious to see what 2013 has in store for the industry. The following are signs of a recovering housing market.

Subprime Mortgage Crisis and It's Ripple Effect

Experts are of the opinion that the mortgage crisis is perhaps the biggest financial shock the country has been subjected to following the Great Depression of the 1930s and early 1940s. The subprime mortgage crisis in USA which erupted due to the bursting of the housing bubble did not leave the major economies of the world unscathed. The International Monetary Fund (IMF) anticipates that the country's GDP growth would be approximately 0.6% in 2009.

How People Are Trapped In Subprime Loans In US

Subprime lending was one of the rapidly growing sections of mortgage market and lenders provided scope of home ownership to those who were not able to qualify for conventional loans. But collapse of numerous subprime lending institutions & increasing rate of delinquency among borrowers has raised concerns about the abusive lending practices that some subprime lenders are engaged in.

Subprime Mortgage Lending - What's Good About It?

In recent months, the media would lead us to believe that the risks and damages possible in subprime lending have ruined everyone who has chosen this kind of mortgage. While there have, indeed, been many catastrophes in this area, not all cases of subprime lending fall into this category. Some subprime lending benefits do exist.

Subprime Mortgage Lending - What Are Its Effects?

Subprime lending is really nothing new. It was originally designed to enable people with less-than-sterling FICO scores to purchase homes, cars, and other items for which they couldn't get conventional loans. Also known as "second chance" lending, its purpose was to provide responsible individuals with a second chance to become homeowners.

What is Subprime Loan

A subprime loan is a mortgage loan that is made to an individual with poor or bad credit. These are typically individuals that would have poor credit scores of 620 and below.

Because of their poor credit scores, subprime borrowers do not qualify for traditional loans or government loans such as FHA and VA loans. And currently, subprime loans represent 15% to 25% of the total mortgage market.