Lex Levinrad Real Estate Investor, Speaker, Author & Mentor

On this podcast episode I talk about one of the most frequent questions I am asked lately, which is: "Is the real estate market going to crash"? While I don't think it's going to be like 2008 (although there is a very small chance it could be), the more likely outcome is a pullback in prices that will entice buyers back to the table. The main difference between 2008 and now, is that the reason that we got into the financial crisis back then was because banks had made very bad loans to borrowers that should not have been getting approved for mortgages. There were No Income/No Job Loans (Ninja Loans), and No Income/No Assets (Nina Loans). Literally anyone with a pulse could get approved for a mortgage and "stated income" and "no doc" loans were very common. Many of these loans were adjustable rate mortgages which reset at a higher Interest rate and some of them were even negative amortization loans. We all know how that ended with the 2008 financial crisis (very badly). I suggest you watch the movie "The Big Sh