Foreclosures
Be a Pro By Learning These 5 Things
Sunday, March 25th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
There are certain characteristics or traits that every successful real estate investor looks for in an area before buying a home, whether to rehab, retail or wholesale. Knowing these five things can make a significant difference in the success of your exit strategy and in turn, impact on your profits.
These are all things that me and my coaches have been telling SREC students for years, because they can really make a big impact on your business. They are all elements that factor in to your investing sweet spot:
- Learn local pricing – Make sure you understand pricing trends in an area. What is the average home price here, compared to neighboring towns? You’ll not only learn which areas are in demand, but also understand what is considered fair pricing.
- New roads, shopping centers and schools – Where there is a new infrastructure being put in place, there is growth and the hint of an up-and-coming area, making existing homes more desirable.
- Find low-tax alternatives – A community’s tax structure can greatly impact your investing decisions. A community with a low tax structure will be more desirable than one nearby with a higher tax structure. Beware of communities that seem overcrowded – a tax increase to pay for infrastructure improvements may be on the horizon.
- Good schools – Strong school districts are a prime signal of a desirable area, especially to parents with young families.
- Outer suburbs – It’s no secret that with big cities usually comes big home prices. So that’s the time to look to the outskirts and snag the good deals while you can, because it’s just a matter of time before the population spreads beyond the city limits.
To learn more, click here.
Time to Get into the Rental Game?
Sunday, March 25th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
This is good news for anyone who is looking to get into the rental property business. Zillow recently released their Zillow Rent Index which examines the home rental markets around the country. Despite falling home values, the median rent rate increased 3% from January 2011 to January 2012.
That 3% number is much higher in many markets, in some cases matching the home value decline rate. For instance, in the Minneapolis-St. Paul market, home values fell just over 8%, but rent rates rose 11%. We’re seeing similar numbers in Chicago, with values dropping over 10% but rent increasing by 9%. According to Zillow Chief Economist Dr. Stan Humphries, “A thriving rental market will stimulate home sales as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the values of all homes.”
To read more, click here.
BOA Settles, Brings Mortgage Relief to 200,000 Homeowners
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Last week, Bank of America announced that they were reducing the amount owed for 200,000 underwater homeowners. This is huge for the homeowners, because it means a chance to eliminate the underwater portion of their mortgages. The anticipated average reduction is $100,000.
Homeowners are eligible for the reduction if they were at least 60 days delinquent on their mortgages serviced by BOA, as of January 31, 2012. This $1 billion deal is part of a recently announced government foreclosure settlement with top service providers. This move will reduce the overall amount BOA owes in penalties from its $3.25 billion foreclosure settlement.
This arrangement will only apply to loans owned by BOA or private investors, but not ones owned or backed by the GSEs, FHA or Dept. of Veteran’s Affairs.
860,000+ Foreclosures Completed in 2011
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Recently, CoreLogic released their annual National Foreclosure Report. Corelogic is a leader in providing financial, real estate and consumer data used by top industry experts. In this report, they provide information on foreclosures by month, total foreclosure inventory and delinquency rates.
Their findings include the five states with the highest foreclosure rates. The leaders are no surprise – it’s the states we’ve seen over and over that are struggling with foreclosures: Florida (nearly 12%), New Jersey (6.4%), Illinois (5.3%), Nevada (5%) and New York (4.7%). The five states with the lowest foreclosures included Texas (1.3%), Nebraska (1.1%), N. Dakota and Alaska (.8%), and Wyoming (.7%).
Collectively, five states accounted for nearly 50% of all completed foreclosures around the country. Of the top 100 markets in the country, 32 experienced an increase in foreclosures versus a year ago. The overall number of homeowners who are more than 90 days late on their mortgage payments declined, from 7.8% in January 2011 to 7.2% in January 2012.
This shows that there is still a big opportunity for real estate investors to help homeowners who are facing foreclosure and need viable options to help them out of their situations.
To read the complete report, click here.
Proposed Bill Would Prevent Foreclosures with Faster Short Sales
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
This is good news for real estate investors. Last month, three Senators (Murkowski, Scott Brown and Sherrod Brown) together proposed a bill called the “Prompt Notification of Short Sale Act,” which, in essence, is designed to speed up the short sale process.
It would require “a written response from a lender no later than 75 days after receipt of the written request from the buyer,” In turn, the response must include one of the following decisions: acceptance or rejection of the offer, a counter-offer, need for extension (only one permitted) with estimation of when a decision would be available. If this process were violated, the buyer would be entitled to $1000 plus reasonable attorney fees.
This bill could be just the thing to help improve the short sale process, which is notoriously long – generally 6-9 months.
To read more, click here.
ACCELERATED INVESTOR: “9 Short Sale Exit Strategies” Webinar Training ON DEMAND!
Sunday, March 11th, 2012 | Foreclosures, Real Estate Investing, Real estate short sales, Short Sales | No Comments
www.surveymonkey.com/s/acceleratedinvestor
3 Steps to Involve Private Investors, Squeeze Out Freddie, Fannie
Sunday, March 11th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Attention private real estate investors: The FHFA recently released a 3-step plan to lessen the role of Freddie Mac and Fannie Mae in the mortgage industry and shift it to private investors. Since 2008, when Freddie and Fannie were placed in conservatorship by the US Treasury, they have received more than $180 billion in taxpayer support. To date, there is no resolution in sight, so the terms of the conservatorship need to change. Together, they guarantee 3 of every 4 mortgages.
- Build a new infrastructure that allows private investors to participate in the secondary market. This would include “national standards for the mortgage securitization process“ to be used to develop the mortgage market.
- Transfer mortgage credit risk from Freddie and Fannie to private investors. Several plans are already in place to see that this happens. One includes a “gradual increase in guarantee fee pricing so the price is closer to the level expected if mortgage credit risk was based on private capital.” Another proposes loss-sharing plans to have investors bear part of the credit risk.
- Continue efforts to prevent foreclosures and make mortgage credit available.
To read more, click here.
Loans are Bank-Friendly, Not Borrower-Friendly
Sunday, March 11th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Even though there are signs of hope in the economic recovery, the housing market still has a long way to go. Of the 55 million mortgage holders in the US, industry experts predict that as many as 10 million will default by 2018. While there have been some attempts by the government to reduce the burden on the mortgage holders, all it really did was extend payments or reduce interest rates, not address the crux of the problem, “unsupportable debt loads.”
Experts explain that investors are out up to 70% when homes are foreclosed upon. But when the total amount owed is reduced by a quarter, there is a much lower risk of foreclosure. “If you save a borrower, you save an investor.”
Mortgage holders Fannie Mae and Freddie Mac will not entertain any kind of principal reduction – they are refusing to take the immediate write downs that would be required, preferring to delay the financial hardship in exchange for a potential rebound. “Many servicers refuse to consider them because their fees are tied to the amount of principal rather than to the ultimate payback to investors. And banks often hold second mortgages for the loans that they service. Principal reductions typically require them to take total losses on those notes.”
Today’s rules do not favor the investor or borrower, but are very advantageous to big banks.
To read the complete article, click here.
Looser Credit Standards Brings Housing Hope?
Sunday, March 11th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
According to the analytics firm, Capital Management, the housing crisis will actually end this year, thanks to looser credit standards and availability for borrowers. Borrowers are required to have a credit score of 700 or higher to obtain a mortgage loan. This is consistent with numbers from a year ago. In addition, banks are “lending amounts up to 3.5 times borrower’s earnings,” up from a low of 3.2. Capital Economics also points to the loan-to-value rations that are looser, 82% vs. 74% in mid-2010. This is their “clearest sign yet of an improvement in mortgage credit conditions.” Despite the improvement, approximately 8% of applicants fail to qualify for a mortgage loan. Capital Economics warns that these signs are not enough to generate notable house price gains.
To learn more, click here.
Cool Way To Earn $7,500 This Month
Tuesday, February 14th, 2012 | Commercial Real Estate Investing, Foreclosures, Real Estate Investing | No Comments
I want to introduce you to my friend Matt who I’ve known for about 2 years. He’s a 10 year investing veteran who’s completed over 125 + real estate transactions with an average of $7,500 per transaction.
Today he focuses almost exclusively on owner financing deals where he can acquire houses with no money down, no loans in his name and no risk.
I’m interviewing Matt on Wednesday. On the Owner Financing training webinar we will be pulling back the curtain on Matt’s business to show you how he’s done it.
Register and listen to the interview here at 2pm est / 11am pst:
https://www2.gotomeeting.com/register/616087178
OR
Register and listen to the interview here at 9pm est / 6am ps:
https://www2.gotomeeting.com/register/854228546
Once you call in to the interview you will see Matt’s system for closing 2-5 of these deals a month.
You will learn:
*How Matt gets sellers and buyers to fill out his “Magic Sheets” where he automatically collects, sifts and sorts through their data to see which house they will buy.
*How Matt gets 2-4 referrals a month from centers of influence like realtors and insurance agents to sellers who otherwise couldn’t sell and are ultra motivated to liquidate with owner financing strategies.
*The “Secret Weapon” for generating leads to vacant properties where lease option strategies and owner financing extracts the top price and largest profits for you.
*Why these owner financing leads will never go away regardless of the market so you can focus on this strategies for generating quick cash regardless of how many foreclosures there are.
*Why these are the easiest real estate deals to close and get paid $7,500 in the next 16 to 60 days.
Plus Matt will be walking us through his “Owner Financing Investor Blueprint”, his contacts, his marketing and how he closes deals lock tight with no risk.
Here’s a preview of the “Owner Financing Investor Blueprint”
Register and listen to the interview here at 2pm est / 11am pst:
https://www2.gotomeeting.com/register/616087178
OR
Register and listen to the interview here at 9pm est / 6am ps:
https://www2.gotomeeting.com/register/854228546
See you tomorrow,
Josh
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