DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

Residential real estate investors are in for happy days ahead.  In fact, investors will soon enter heretofore impossible territory.  Conservative estimates drawn from the U.S. Treasury Department, Zillow and Radar Logic clearly illustrate that the government will soon have more than 3.1 million Real Estate Owned Properties to manage and sell.

As usual, the nation’s taxpayers will be paying for damages incurred by the country’s lax and irresponsible lending practices.  Remarkably, the proponents of these practices have tarnished the public confidence in financial institutions but have created millions of multi-millionaires along the way. 

The employees who developed the high-risk, low-doc loan packages worked for such companies as Goldman Sachs, Lehman Brothers and Bank of America, among others.  The typical Goldman Sachs employee earned a resounding $630,000 last year. 

Of course were it not for the American taxpayer which gave the company $10 billion in a direct loan and another $10 billion through an AIG loan repayment, the company would have closed the doors.  It is good to know that companies like AIG, which has cost the American taxpayer more than $180 billion so far, can afford to repay Goldman Sachs for what was clearly a poor investment while Goldman cannot help out any of the homeowners the company duped.  It is the classic example of American greed.

Now the federal government will be forced to come to the rescue again.  Other than the financial companies that packaged those dreaded low-doc loans and then sold them over and over again, the next group of winners stands to be residential investors.  The new-age investors who can learn to deal with the government’s cumbersome paper trails and slow decision making abilities stand to make big returns on relatively small investments.

The reason is that the U.S. government cannot afford to maintain these properties.  Frankly, investors may soon see favorable financing terms that will exceed their wildest expectations.  If you are an investor, get your REO presentation kit together.  If you have never invested in real estate before, this is the best chance you will ever have.

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