Archive for September, 2009
‘The Forecast Calls for Pain’: Despite Hopes, Anxiety Bedevils Housing
Wednesday, September 30th, 2009 | Uncategorized | No Comments
This is just a Wall Street Journal update on the current housing market. With so much news coming at us each day, on so many different fronts and on so many topics, I found this WSJ article helpful in providing a quick snapshot of the current market. The details are sobering, but for real estate investors there’s never been a better time to buy property. Many of us through our work help to restore neighborhoods with houses that people can actually afford. If you’re reading this post, chances are you’re one of those people . . . and quite frankly there’s not another business that I’d rather be in right now.
How do Short Sales Work?
Wednesday, September 30th, 2009 | Uncategorized | No Comments
There is a booming market developing in Real Estate called the short sale. An out product of untrustworthy loan granting, liberal equity loans, a decrease in real estate values, and a sluggish job market, many people are stuck in houses they can no longer afford to keep. In essence, their loan is more than the value of their house. They feel stuck between the rock ( aka the bank) and a hard place (aka their finances).
The solution is called a short sale. The term “short” does not mean quick or less time. It means “short” as in less money. For one reason or another, the bank is not going to recoup the amount of the loan on a sale. That is a given. It is going to come up short.
The last thing a bank wants is another foreclosure. They do not want the hassle of putting the property on the auction block and getting pennies on the dollar. They can not afford to assume that much loss over and over again. The bank officers know this and their desire is to get rid of these problematic properties as fast as possible. A short sale, or agreeing to say two-thirds of what is owed is a viable solution. If someone owes you a $100, wouldn’t you prefer to get back $75 or $80 now and walk away than to wait for months and then only get back $25? Of course you would, especially if you had loaned twenty or thirty folks each $100. That is the way banks see the situation as well. With so many foreclosures being plopped on their doorsteps, the bank officers would relish the thought of accepting payment in full upfront on a short sale. In fact, short sale is the preferred method used by banks to liquidate property
The amount of foreclosures and pre-foreclosures are on the rise at an alarming rate. It is not going to slow down anytime soon. Now is the time for a savvy investor to step in, negotiate short sales, fix up and flip houses. If you can get a once valued at $400k house for a short sale price of $309K, put in $15K of repairs and sell it for $370K, thus making a $46K profit, would you do it?
Without Prospects, They’re Prospectors
Thursday, September 24th, 2009 | Uncategorized | No Comments
I guess if you lose your house in California, you have two options. One might be just to find a good canyon along the Pacific and pitch a tent (one such individual has done this in my back yard!) The other is to head for the mountains and relive the 19th century. By far one of the most interesting stories I’ve read concerning what some people are doing after losing their homes.
http://www.msnbc.msn.com/id/32536094/ns/us_news-washington_post/
“But as the economy soured, their ranks were swelled by adults of working age, pulled by gold prices flirting with $1,000 a troy ounce — the highest in more than two decades — and pushed by unfortunate circumstance. While there is no way to quantify the trend, anecdotally it is clear that the jobless are showing up not only in California but also elsewhere around the country where gold has been found in the past.”
Roubini Warns of Double-Dip Recession
Thursday, September 24th, 2009 | Uncategorized | No Comments
Nouriel Roubini, aka Dr. Doom, was one of the few to get it right while everyone else enjoyed the Bush bonanza. Seriously, this guy was mocked for repeatedly suggesting that at a certain point in time there would be a comeuppance for the excesses of the previous 25 years. No one’s laughing now . . .
http://www.reuters.com/article/newsOne/idUSTRE57M29R20090823?
“Yet he warned that policy makers face a”damned if they do and damned if they don’t” conundrum in trying to unwind their massive fiscal and monetary stimuli to keep the global economy from toppling into a depression.”
Existing House Sales Far Worse Than Advertised
Thursday, September 24th, 2009 | Uncategorized | No Comments
Did anyone else react to the good news regarding the housing market with the same sense of disbelief I did? Take a look at this article by Barry Ritholz and see what’s really going on with the numbers.
http://www.ritholtz.com/blog/2009/08/existing-home-sales-not-as-advertised/
Think about it…prices are down sharply y-o-y; rates are at historic lows; moratoriums and modification initiatives have kept hundreds of thousands of foreclosures off the market; housing sentiment is worlds better; a tax credit is available; and still, y-o-y sales are flat for all intents and purposes and down 6.5% from weak 2007 levels when pricing was near the peak. Conditions won’t get much better than this in the future — what is it going to take to sell houses?
Are some elements of short sales bringing you down?
Monday, September 21st, 2009 | Uncategorized | No Comments
Are some elements of short sales bringing you down? Are you tired of paying transfer taxes on your A to B sale? Are you tired of not being able to sell to FHA buyers? Are you tired of additional liens attaching to the real property?
Do you wish there was an easier way?
Well, let me tell you, there is!
We have developed a system where a revocable living trust when used along with an option to purchase the real property can avoid many of the pitfalls with short sale transactions.
No, it won’t get you a faster acceptance from the lenders. We wish we could solve this problem. Once you have an acceptance from the lender and an offer from a qualified buyer, you will be able to close the deal, even if your buyer wants a FHA mortgage!
Yes, it will work in Texas, New York and even California.
We have developed this system over the past 6 years and we use it every day in our short sale business in Michigan.
We have to warn you, it isn’t simple. This is short sale applications at the graduate level. You will need to pay close attention to learn how to use it properly. That’s why we are going to offer it in a special launch October 12 and 13 in East Lansing, Michigan. We will spend two full days teaching you how to use the revocable living trust stealth option dove tail system, including how to explain it to realtors and to title companies. As an added bonus, we have included specialty documents we use in our short sale transactions such as a non HUD 1 settlement statement, verbiage to use when countering offers and limit your liability and an affidavit of final sales price. We will review all aspects of trusts as they pertain to the short sale business and go through the legal documentation necessary.
Just pay $500 to cover the costs of the meeting room, documentation and equipment rental. Join us at the East Lansing Marriott on Oct 12 and 13.
To Register
Go to www.strategicrealestatecoach.com/members and click on either the Platinum / Diamond or Master’s Elite section of the site. The links to register are on the home page of each of these membership areas.
To Apply to Platinum Coaching
Spaces are still available for high end coaching at the Platinum level. To apply, please click here
Getting Short Sale Leads
Thursday, September 17th, 2009 | Uncategorized | No Comments
Take a look at this Forum Discussion on our Membership Site:
DoveTail is Now Open!
Wednesday, September 16th, 2009 | Uncategorized | No Comments
The long awaited DoveTail Conference is finally here! If you missed Jeff Watson’s Webinar about the DoveTail, here is the replay:
This conference is only available to Platinum, Diamond and Master’s Elite SREC Members.
To Register for Platinum Coaching:
Spaces are still available for high end coaching at the Platinum level. To apply, please click here
To Register for DoveTail:
Go to www.strategicrealestatecoach.com/members and click on either the Platinum / Diamond or Master’s Elite section of the site. The links to register are on the home page of each of these membership areas.
It is being held at:
Marriott East Lansing At University Place
300 M.A.C. Ave., East Lansing, Michigan 48823
517-337-4440
Oct. 12th and 13th
$500 – plus 10% of the net spread for the first 10 deals using the dovetail method and 5% of the net spread for the next 10 deals using the dovetail method
$5,000 – (less the $500 conference fee) for full use plus support / coaching
Visa and Mastercard only
