And Then the Roof Caved In: How Wall Street Greed and Stupidity Brought Capitalism to Its Knees by David Faber

[Spicer Matthews]

I have been on a recent rant lately about real estate books. As we all know there are many good ones out there and many bad ones. What most of them tell us is how to buys and sell and get super rich or whatever. If they even go into getting financing they typically stop at "Call your bank and they will give you a loan". They never describe what really happens to your loan, why banks are so willing to give you loans (or at least use to). This is very important information.

You might ask your self: "Why do I care, I either get a loan or I don't". The reason you care is not about your self, it is about who is going to buy your property and when you are going to sell it. Over 90% of real estate transactions have financing. If what is happening on wall street affects the ability for your buyer to get a loan there is going to be less demand, which will increase days on market, and lower property values.

I am all for reading every Real Estate book you can get your hands on but I also think it is very important for Real Estate investors to read about and study the markets the support the financing of Real Estate. Below is what I think is a must read. David Faber (a CNBC reporter) does a great job of talking about all aspects of how we went into a decline. He walks you through when you first purchase a loan all the way through to where you loan ends up. He walks you through the complex levels of what happens when you purchase property simply at each level.

And Then the Roof Caved In: How Wall Street Greed and Stupidity Brought Capitalism to Its Knees by David Faber

And Then The Roof Caved In