Rapid Real Estate Investing Results

Seriously, why is Obama picking just 5 states to help out with the foreclosure crisis to the tune of an additional $1.5 billion???

I do not understand this logic at all.
We already have programs in place to help with affordable housing.
The banks already have loan modification/workout groups and loss mitigation departments.
The banks will already do a short sale which, many times is a better solution for the homeowner than a loan modification. (This is not legal advice either, but the options are there).

See the article below.
http://cli.gs/zgjTyz

The administration and the government as a whole need to focus 100% of their attention on how they can spur the private sector to expand and create more jobs.
The clues are right there in the article folks.
(Hint, it’s not going to happen if you increase taxes)

It is all about jobs, JOBS JOBS!!!!!

We can’t spend our way out of this by throwing money at more government programs and handouts!

The private sector can get the economy going again if they have access to funding.
Right now, they can’t get the funding they need so they are not hiring.
Thus, no one is producing anything and since 10% of the country is not working (Actually much higher if you take into account the number of people that are not looking for work right now), no one is buying anything.

Look at the housing sector. The only reason that housing has had an increase in anything is because of the tax credit for home buyers. Without that incentive (A tax reduction incentive) the housing numbers would be abysmal.

How is dumping more money to save someone’s underwater mortgage going to help the private sector?
The only people that will help in the long run are the government workers (Which we keep getting more and more of) and the BANKS!!!

The big banks all made money last year right?
What did the banks do to actually help the economy though? Nothing.
They did not lend any money out.
We the people forcibly loaned the banks money and they turned around and horded it and bought smaller banks to get more access to your money.

The government needs to help small businesses get more funding and then step back and get their hands off the economy. Don’t increase taxes, don’t overhaul our insurance programs which will increase taxes and greatly expand government. They just need to back off. Spending tax payer money just so you can say we are doing SOMETHING is just plain stupid. Obviously, the stimulus program has not helped. Over the last year, what has happened? Has the economy gotten better? Unemployment numbers haven’t.

One thing the government is doing that I support is they do have some programs to help investors supply affordable housing and to rehabilitate commercial properties. Why do I support this? Because it puts construction crews to work and it creates safe, affordable housing. This helps spur the private sector.

If you want to join me for a webinar on some of the available Government Funding Options for Real Estate Investors, enter your name and e-mail address below.
I’ll be holding an encore call on Tuesday night, Feb. 23 at 9:00 PM EST.

Technorati Tags: Build my IRA, commercial real estate, funding solutions, government funding, investing education, real estate, real estate financing, real estate investing, real estate riches

Do you have homeowners calling your office that DO NOT want to lose their home?
Have you heard about doing loan mods? Many of you may have heard about them, but don’t know what they really are or who would be a good candidate for a loan modification.

This is an area that I want to know more about as well and have found someone that is an expert in this area. I know some of the basics, but I like to know more about a topic before I actually try doing something, I don’t like to just know a little bit and then try to wing it.

So, what is a loan modification?
A loan modification is when you work with a lender to modify the original terms of a note to bring them more in line with what the borrower can afford. Lenders don’t want everyone to know about these because they stand to lose a bunch of money. This is very understandable. However, in the back offices of the banks and mortgage companies, they are becoming more popular because it helps keep them from having to foreclose on a home when the borrower is underwater. The other reason they are becoming more appealing to the lender is because of our Government’s involvement in the banks affairs. That’s right, our Government is pushing lenders to do loan modifications as well. You may have even seen a headline or two about it, but it’s all very mysterious stuff unless you learn from an expert.

I have a webinar scheduled for Tuesday, November 3rd, at 9PM EST with Richard Geller, one of the truly cutting edge people in the Loan Modification industry. Richard has been doing loan mods and teaching loan modification for several years.

There is no charge for the webinar but we only have 200 spots.

Register here
http://RapidREIresults.com/loanmod

Richard is going to go over the following topics, plus many others.

* Loan mods and violations, forensic audits and how they fit in to get principal reductions – this is HUGE.
* You can still do loan mods for profit and Richard will show you how to do it LEGALLY, and why you would even want to!
* Why investor owned properties NEED loan mods and how to get them.
* Turning Cash-Flow Negative deals into Cash-Flow Positive
* Repairing your credit (or your client’s credit
* How to use loan mods to attract people who want you to buy their house as a short sale opportunity.

Plus, many other great tips. He will definitely over deliver on this webinar.

Don’t delay, register now, your clients need you to know this information and we only have 200 seats for this webinar.

Register here
http://RapidREIresults.com/loanmod

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Notice: While there is absolutely no charge for this webinar, since I’m referring you to this webinar, if you decide to buy something down the road from Richard Geller, I will likely get a commission on the sale. However, the fact that I have sent you over there, will NOT change your price at all, it is just a way for Richard to thank me for sending a potential customer his way.

P.S. Do you have a website for your business yet? What about your own domain for your business e-mails? Raise your businesses credibility and get your own domain name. It’s easy to do.
24×7 support, world class service.
http://www.RapidWebDomains.com

Technorati Tags: Bank negotiation, credit repair, lender Negotiation, Loan Mod, Loan Modification, short sale invest, short sale investing

This topic is constantly debated on the mass media channels. Despite the efforts of the Obama Administration, we are not at the bottom of the housing market slump yet. We have seen some shortening of the Days on Market for homes in many areas. However, I feel that this is largely due to the $8000 tax credit for first time home buyers. The fundamentals of the economy just are NOT there to support a decrease in days on market. You don’t see long term inventory shrinking when Unemployment has nearly doubled all across the country. The only reason inventory has shrunk is most people are not trying to sell their home unless they are in either a distressed situation or they are moving out of the area. What used to be caused by a “credit problem” has now turned into a very real employment problem.
Going forward, we have many factors still fighting against a recovery in the housing market.

1) High Unemployment
2) Decrease in available credit
3) Tighter credit standards for individuals and businesses
4) More foreclosures coming
5) Lower demand for home purchases due to the expiration of the tax credit.

The First Time Home Buyer Tax Credit is increasing sales of lower priced homes in many areas. Why the lower priced homes? Because that is where first time home buyers are able to spend their money. Especially if they are young and at the start of their careers. The other force driving this is uncertainty of the job market. If a first time home buyer is looking for a home and being smart about their purchase, they are going to buy something they are sure they can afford, plus the banks are going to look more closely at their income and require a minimum of 3% down (On an FHA loan, more on a non-FHA). The only no-money down financing available to homeowners is the RD loan (Rural Development) which is administered by the USDA. Well, let me qualify that statement, you could get a no-money down, 100% financing home from a savvy real estate investor that is offering this in his/her own programs.

Folks that already have their own homes are not interested in selling right now unless they have to because it’s very unlikely they will ever get what they have invested in the home. The only way someone is going to get more than what they paid is if they have been there for 10 years or more. Why? Because, that is where home prices have fallen to in many areas, not all areas, but many many areas throughout the U.S.

As some unscientific prooof of this idea, I have tenants that just moved out of one of my homes a couple of weeks ago. They had been looking for a home to purchase for well over a year after moving here from out of state. They complained several times that they just could not find anything that was going to work for them. Most of the homes they were looking at were run down to some degree, an indication of a very distressed market. They did not want to go in and have to dump a lot of time and money on their next home. They were willing to spend money on a home they didn’t need to do any work to but they couldn’t find a home in good shape for their price range. The median price range in my neck of the woods is around $200,000. They were looking in the $300,000-$350,000 range. The people that own those priced homes are mostly sitting tight because they know that with all of the foreclosures everywhere, they will not get what they need from their home to be able to close without losing a bunch of money.

If you are a Real Estate investor, you need to seriously consider this when purchasing a home for investment purposes. My recommendation is to only go back for comparable sales a maximum of 6 months. Don’t complain about an appraisal that has only gone back 6 months.

I would even look at prices of homes selling up to 12 months ago just to see if they were lower then, because I think we are artificially high right now in some areas and if prices have risen since last winter, we are going to see some dipping back down again. Yes, that’s right, I said it. We are artificially high in some areas of the U.S. even though the market is down across the country. The reason I believe we are artificially high is because the $8000 Tax Credit is creating artificial demand, or it is just pulling demand forward that normally may have waited until next year to purchase.

How could we possibly be high in some areas? Because, we have not seen the peak of foreclosures yet. The government and the Mortgage Bankers Association are urging ‘Workout plans” such as forbearance agreements and loan modification instead of Short sales and foreclosures. Why would they do that? My theory is, this is one last attempt to grab more money from their customers before statistics catch up and they lose their home anyway. Do you know what the percentage of successful forbearance and loan workouts have been historically? They are rather low. Here is the general problem. You have a stressed home owner that is trying to get back in the good graces with their lender. The lender says, “sure, we’ll work with you. Your payments will increase while you catch up your loan.” Homeowner, “Great, I can do that” but they are really thinking “Wow, I’m already behind, how am I going to afford a larger payment?”

This is especially true now with unemployment numbers where they are right now. At close to 10% unemployment in many areas, many people are taking jobs with lower pay just to get back to work. How is that person supposed to afford a HIGHER payment?

Buckle up everyone, we are not done with this roller coaster.

We still have many adjustable rate mortgages that will start adjusting upwards over the next 2 years. That will put a further strain on the housing market.

See thie Smart Money article for further discussion.
http://www.smartmoney.com/personal-finance/real-estate/Why-Loan-Modifications-Often-Do-not-Work/#

Technorati Tags: First Time Home Buyer Tax Credit, forbearance, Foreclosure, Home prices, short sales