How Does the Current Economic Crisis Impact the Bank’s Ability to Loan Money?
Channel: Real Estate Investing - Blair Halver & Jeff Kemmer
Date: 2020-04-10

We are seeing federal stimulus packages and bailouts in response to the economic crisis caused by the COVID-19 pandemic. Included in this, the federal government has bought back $250 billion in mortgage backed securities causing margin calls for mortgage lenders and leaving many people wondering how the bank will be able to continue loaning out money. The reason being, our economy depends on these banks, they’re simply too big to fail and the federal government will not let them go under.

Very similar to what occurred in 2008, our experts believe we will start to see the credit markets freeze up making it difficult for people to get access to home loans during this time. As we have mentioned in previous segments, this is why seller financing is so much more beneficial than relying on banks to provide funding for your real estate investments.

To listen to more firsthand experiences from real estate investors and entrepreneurs, what they learned from them, and their perspective, please go to blog.blairhalver.com!

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