” I’ve been kicked around
Since I was born.
And now it’s all right. It’s OK.
And you may look the other way.
We can try to understand
The New York Times’ effect on man.”
Bee Gee’s Staying Alive
Getting the stop sign signal is really important to long-term success in driving… and real estate development.
A key component of rental demand is mortgage availability and preference or aversion to home ownership, so today I’m going to dive deeper into the availability question. Despite plenty of talk of their demise my bold prediction is: Fannie Mae and Freddie Mac will survive.
There are many who blame the whole sub-prime meltdown on Fannie and Freddie. Indeed the congressional commission responsible for doing a post-mortem on the sub-prime collapse fell predictably along party lines. In fact in my estimation the post-mortem based by political philosophy breaks down approximately like so:
Democrats: Wall Street did it.
Republicans: Government regulations (ergo Fannie and Freddie) are to blame.
Libertarians: The Fed did it. End the Fed.
Me: What about main street?
Why did the country have a group delusion that a mortgage set at 9% resting at 11% was a grand idea? The lack of clear answers and political bluster has led me to conclude that all contain elements of truth. Why does this matter to us here at BiggerPockets?
I am still trying to wrap my head around the scope of the renter nation. Is it just an ordinary phenomenon that will slightly alter the boom and bust cycle of multifamily? Is it an era…similar to when we moved from horse and buggies to model T’s? From a land yacht Lincoln Navigator to a Tesla?
In researching …read more