Foreclosures Gone Wild.com
I am so excited about April 4, 2009. I have a Home/Office Warming Party scheduled on that day from 3 to 6 p.m. I will be giving away a Free 3 Day Vacation and Free Uncensored Secrets for a Successful Short Sale. All you need to do is RSVP at www.meetup.com/foreclosuresgonewild.com and then stop on by. You will be so happy you did you will be able to see a real live real estate investor’s office. Look forward to seeing you there.
Kimberlee Frank
Home Buyer Tax Credit
Proposed Home Buyers Tax Credit
As part of the President’s economic stimulus plan, there is a proposed change in the $8,000 tax credit that was passed by Congress last summer as a part of the Housing Recovery Act, giving first time home buyers a $8,000 credit that would require that the tax credit be repaid over 15 years. Basically a no-interest loan. Unfortunately, it did not seem to have much impact on the housing market. However, the new stimulus bill which was approved by the Senate this week would allow a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. Congress still needs to vote on it in the next 10 days though.
New Stimulus Plan – Will It Help to Jump Start Florida Home Sales?
We expect some version of this bill to pass so it’s good news for the Florida real estate market and the rest of the nation. Hopefully this will get the economy and home market jump started again.
Today’s Real Estate Market Strategies
If you are thinking of buying and flipping, or buying, fixing and flipping this proposed new stimulus plan could help you because it will help to increase the number of home buyers to buy your property. My proven realestate junkie strategies on flipping in today’s market have been helping my students tremendously right now. If you are going to use this strategy, then you have to be able to identify the right discounted properties or you will be sitting with the property for a very long time. You also need to know how to market the properties to sell quickly and for the highest amount and how to make sure you always have your pool of buyers lined up. If you bought a rehab property and are going to flip it, then you want to line up buyers/investors who are rehab specialists. You do not want to offer them a bad deal, because you will need these buyers again when another opportunity comes up, and you do not want to jeopardize your reputation with them.
If you are going to fix and flip, then my proven rehabbing strategies will be invaluable to you. Right now you should be compiling a list of vendors to help you with your rehabbing so you are ready to go and know upfront what your rehab costs are going to be even before you make your offer. Marketing the properties is important as well. With my proven strategies, you will not only learn the best ways to market rehabbed properties, but also the best places to advertise them.
Short Sale Strategies
For instance, if you are entertaining the thought of buying a short sale, my short sale course will give you a road map on how to find and negotiate your short sale property. Since a majority of the properties on the market right now are either short sale or REO’s, it is important to understand how the short sale process works. You will be provided with the necessary documents to submit to the seller and the seller’s lender as well as negotiating strategies and tactics to convince the seller and their lender why a short sale is the best solution for each of them. As part of the course, you will also learn how to apply my proven short sale negotiating strategies to deals where there is not only a first lender, but also a second lender. I just closed a deal similar to that. While it was a little more difficult, it’s not impossible if you apply my techniques.
For more information on investment opportunities in Florida, please contact me at www.RealEstateJunkie.com, and send me an email to schedule an appointment. For more information on my seminars and coaching programs, you can also visit my website at www.RealEstateJunkie.com.
Interests Rates Expected to Remain Low
Interests Rates Expected to Remain Low
With the U.S. Economy entering a second year of recession, it is expected this week that the Federal Reserve is going to keep interest rates at all time lows for awhile and possibly for the rest of the year. The Feds have been buying up piles of companies’ short-term debt which is referred to as commercial paper. They are making cash loans to banks so that banks will in loan money to consumers for homes, student loans, automobile and other items to stimulate the economy. They also started buying mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae to help the housing market. Congress and our new President are working to enact a $825 billion economic stimulus package.
This is all good news for investors/ buyers who have been experiencing the effects of the credit crunch. Also starting in February, there will be up to $200 billion available for auto, student and credit card loans as well small business loans. In order to accomplish this, the Fed will buy securities backed by those particular types of consumer debt. With more money available, the Fed is hoping this will result in lower rates on those loans as well.
Great Time for Buyers/Investors
If you have never invested in real estate before, here is your chance to get in while the interest rates are at all time lows, the prices are affordable and there is a large choice of properties to select. If you have cash, even better.
Real Estate Leads to Long Term Wealth
Although we are in a down and declining real estate market Nationwide, the Florida real estate market is near bottom and therefore it’s a good time to buy Florida properties. Real estate is one of best investments which lead to your long term wealth. I teach you to purchase real estate with no money and resell it making a profit of $20,000 to $30,000. Real estate appreciates if you hold on to it long enough and you can generate a steady monthly cash flow from investment property at the same time.
Mentoring and Coaching
What if I told you that you could retire in 2 years by following my real estate strategies, wouldn’t you want to know how and have a burning desire to get started right away?
Well I am going to tell you how to do this. If you are a first time buyer, then you may want to work with a mentor or coach to get started and to help you avoid making costly mistakes. I teach my students my proven real estate investment strategies based upon changes in today’s real estate market. Having a support system and mentor that will help you achieve your real estate goals and dreams is the best way for you to become a successful real estate investor.
I am looking for individuals to work within my office as a realtor, investor or partner to take their business to the next level. I presently have 50 plus homes for sale that have short sales completed looking for Realtors to help sell the properties.
Smart Investors
Successful investors adapt to the market and change their investment strategies accordingly. Smart investors have been focusing on bank owned REO’s and short sale properties as well as purchasing foreclosure properties at auctions at rock bottom discount prices. The Florida market has many opportunities to offer investors/buyers right now, and you should take advantage of the many discounted properties, a number of which are luxury and vacation properties. I recommend for new investors not to buy a fixer right now unless you are able to do the work yourself because there are so many updated and remodeled properties as well as new homes that are currently available at distressed prices, why go through the headaches of dealing with contractors and sub-contractors and cost overruns and delays? These are some of the strategies my students are focusing on right now that are giving them the results they are looking for.
For more information on investment opportunities in Florida, please contact me at www.RealEstateJunkie.com, and send me an email to schedule an appointment. For more information on my seminars and coaching programs, you can also visit my website at www.RealEstateJunkie.com.
Today’s Real Estate News
Today’s Real Estate News
A few items that I wanted to talk about. The first is the latest pending home sales index for November 2008 released by the National Association of Realtors (NAR), which is a good indicator of what to expect in the housing market in the next couple months. Next, the fact that mortgages rates are at near 50 year lows. With such low rates, investors should be taking advantage and buying property now. The third item is pending legislation that would affect the bankruptcy code and consumer mortgages. Lenders and industry experts are debating whether the legislation would be beneficial or not right now.
NAR PENDING HOME SALES NOVEMBER 2008
According to the National Association of Realtors, the national pending home sales index (“PHSI”) report for home sales under contract in November 2008 fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October 2008, and is 5.3 percent below November 2007 pending contracts which were 86.9. Regionally, in the Northeast, the PHSI dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. In the South, the index declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2, but the good news is it remains 19.3 percent higher than November 2007. The NAR reported that the current index is the lowest since the series began in 2001. Much of this is as a result of the economy and job losses as well as the record number of foreclosures and short sales. The index is usually a good measure of what is going on in the real estate market as pending home sales typically close 30 -60 days after signing.
Lawrence Yun, the NAR’s chief economist said “…December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.” … With a proper real-estate focused stimulus measure, home sales could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country. Stable home prices will, in turn, lessen foreclosure pressures and lay the foundations for a solid economic recovery as the nation’s 75 million homeowners regain confidence….” December’s number will be released on January 26, 2009.
In my opinion, many of those sales have been falling out of escrow because they were not qualified and serious buyers to begin with. The short sale process is frustrating to the average buyer because lenders are taking too long to approve them, and the buyers decide to walk away so as a result many homes under contract in short sales are not closing. The other reason is the lenders are not approving the short sale offers and some are counter offering at high prices that are way above market. The average buyer does not know how to negotiate the right way with the lender and even if they have a realtor, unless the realtor specializes in short sales, they are at a disadvantage also.
Investors on the other hand are taking advantage of the discounted prices and are buying pre-foreclosure and short sale properties because there are so many good investment opportunities right now, especially in Florida. Since I have been negotiating real estate deals for a very long time, I have been able to pass on my negotiating talents to students that I coach and mentor. If you follow my simple short sale and pre-foreclosure negotiating techniques, you will be able to negotiate the deal you want with any lender.
The NAR and other real estate industry experts have voiced their opinions that the government needs to pass some legislation that would speed up the short sale process helping to move some of the inventory and preventing more foreclosures and home sale declines. I agree that something needs to be done soon. I wouldn’t be surprised if we see some legislation on the horizon soon with new guidelines. Currently, it takes approximately 60 days to get an answer from the lender, and many times the lenders don’t approve the short sale offer, which delays it even further by having to make counter offers or the buyers just walk away and finding another deal leaving the distressed homeowner at square one.
An important negotiating tactic to keep in mind when you are negotiating with a distressed homeowner in a short sale is to tell them that you will close on the deal, and you are willing to wait for their lender’s approval. Since you already did your due diligence before you made your offer, and you have decided that the property is the right investment for you, there is no reason for you to back out of the deal if the numbers make sense. However, sometimes they don’t and you have to know when to walk away. That’s what makes a successful investor- being able to recognize a good deal and passing on the bad ones. You don’t want to make a mistake that will cost you money for years ahead. I teach my students how to avoid costly mistakes and benefit from my years of investing experiences.
Mortgage Rates at Near 50 Year Lows
With near 50 year lows in mortgage rates, now is the best time for buyers/investors to take advantage of the many opportunities out there to purchase discounted properties. Yes credit is tight, but with the government’ stimulus packages and recent legislation passed and pending, it should not be a problem for savvy investors to find financing. If you have cash, all the better.
Changes in Bankruptcy that Will Affect Homeowners
The other item that I thought was worth mentioning is the current legislation that the government is working with on together with the Bankruptcy Coalition of the Financial Services Roundtable, a group comprised of Citigroup, JP Morgan Chase, Well Fargo, Bank of America and other leading banks and lenders which would allow bankruptcy judges to adjust mortgages for at-risk borrowers. Although Citigroup initially opposed the plan, they have agreed to supports measure to help homeowners stay in their homes. There are a few other proposed rules and guideless as well for homeowners. Only existing mortgages will be eligible; homeowners will have to certify they tried to contact their mortgage holder lenders regarding loan modifications before filing for bankruptcy; and only major violations of the Truth in Lending Act will cause lenders to forfeit their claims in a bankruptcy. Those who support the legislation believe this will streamline some of the complicated bankruptcy rules and help homeowners.
If you live in Florida or other homestead states, and you have filed a homestead on your primary residence, the homestead laws protect your primary home from being foreclosed upon in most circumstances anyway. For more information on the bankruptcy laws, you should consult a bankruptcy attorney.
Opponents of the legislation include The American Bankers Association who have expressed their opinion that the proposal to give bankruptcy judges broader authority to modify mortgage terms could end up making home loans more expensive and less available.
In 2008, there were an estimated 1 million personal bankruptcy filings. Out of those approximately 580,000 had mortgage debt, and there are approximately 50 million residential mortgages currently outstanding in the U.S., which total more than $10 trillion of debt according to consumer research firm SMR Research Corp.
As you can see the numbers are staggering. With so many homeowners being displaced and having to either sell their homes or losing their homes, there is a huge need for rental properties. You as the investor can help fill that need by buying discounted properties and renting them or leasing them with an option to purchase. This is especially a smart investment strategy right now in areas like Florida, which have been hard hit by declining home prices and the economy.
Other industry sources say that the legislation will most likely affect mortgages that are packaged into bonds, which are about half of all outstanding home loans. Mortgages that are already held on bank balance sheets will most likely be renegotiated prior to bankruptcy according to industry sources.
The legislation is still to be debated so stay tuned.
