Keeping Things In Perspective – No Better Time To Be An Entrepreneur

By Amy Ransdell

First, let’s all acknowledge the elephant in the room…according to the National Bureau of Economic Research we have been in an official recession since December 2007 that will likely be considered the longest and likely to exceed the reach of the last three “mini” recessions. With the combination of massive government spending, less encouragement for consumer spending with mandated costs to homeowners, unemployment rates soon to sky-rocket, Cap-n-Trade restrictions on the future housing market and new appraisal restrictions….we are surely facing an immeasurable economic crisis yet to come, a continuing housing crisis, higher taxes, and eventual interest rates back in the double digits…..Aghhhh!

Despite all of that, this recession also brings OPPORTUNITY. As unemployment continues to rise with some states hitting historic highs and as our government continues to spend us backwards, it is time to think outside of the box. Why work for companies that are being forced to lay-off and cut benefits? Why operate within traditional real estate rules …have you watched fellow real estate agents leave the business? Traditional equals scary. It is time to let your entrepreneurial spirit grow your short-sale skills into a lucrative business set to weather any storm.

There has never been a better time for growth than now—between the housing crisis providing a NEED, the specialized skills you possess that answers that NEED, current favorable loan incentives and interest rates, and the plethora of available talent to build a great team at a fraction of the cost.

Where NEED meets OPPORTUNITY:

• The U.S., as a whole has seen a 21.9% decline in home values for properties purchased by homeowners within the last 8 years. As a national average, homeowners who bought before then could have equity in their home provided they did not perform a cash-out re-fi. (NAR)
• The # of US households on the verge of losing their homes has soared with nearly 15% of all-use homes—more than 1.5 million homes in the 1st half of the year going into foreclosure.
• Nationally, 1 in every 380 homes received a foreclosure notice in June.
• Nationally, 1 in every 84 homes received a foreclosure filing sometime in the first half of the year.
• Foreclosure filings were up 33% last month over June of 2008 and 5% greater than in May. (RealtyTrac)
• There are proportionately more ARMs given to strong credit buyers that are facing foreclosure than sub-prime loans given to the credit unworthy.
• Of the 4 million homes targeted by Obama’s plan for modification assistance, only 325,000 have made it and some lenders are saying it is less costly to foreclose than modify.
• Reports have the unemployment rate reaching 10% by years end and is measured as high as 20% if you consider more accurate measuring methods.
• Some states have hit unemployment rates not seen for 25 years. (WSJ)
• The Federal Reserve has projected that there will be no return to full employment until 2015. (AJC)
• The Cap-n-Trade Bill is set to eliminate even more jobs, erode more disposable income, blow-up the appraisal process, and throw increases in costs and time-lines into the housing crisis.

On a positive note: the tax credit has stimulated home-buyers and there is still time to take advantage, interest rates are still low, and lending restrictions are lessening.

There are homeowners in distress in every market, every price range of property, from every background and situation. By reaching out , this recession is easily your opportunity to control your income.

As agents and investors, we are all entrepreneurs at heart. We create our sources of income and are not dependent upon a boss or the economy. As entrepreneurs, we control our destiny and are much more likely to emerge from this recession profitable.

Did you know that the net worth of entrepreneurs is five times that of the traditionally employed according to the US Federal Reserve? For more real estate industry articles visit www.RealEstateBusinessMentors.com or visit www.AskBobLachance.com for any real estate questions.