Please read this entire post because I want you to know what is going on..
I’m trying to stay pretty low key with you, but I also want to remind you of something before you take off for the long weekend.
This is me writing to you because I’m genuinely concerned about where we are heading.
The other day I let you know about a report that I’m offering to folks looking for commercial real estate funding or business funding.
Even if you are not looking for commercial or business funding, I would recommend checking it out. I think you will get some great ideas even for a residential loan request.
I can not help you right now with funding on residential (I’m working on it though), but I think it has some great ways to help you out, just translate it to what you want funding for in residential and then take that to a local community bank, private lender or hard money lender.
http://GetCommercialFundingHelp.com
Leave some comments on my funding blog once you have a chance to look it over.
Go to the first link up there for the report and then leave your comments at the second link.
Please Leave Your Comments over here
http://myrealestatefunding.com/blog/commercial-real-estate/who-else-wants-to-know-how-to-get-your-commercial-real-estate-loan-request-approved
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Now, back to my “Decision Time” subject.
Why decision time?
118 bank failures this year. It’s only Sept. 3rd!!!
Last week the FDIC took a break from the shut downs.
I would not be surprised if they take a break tonight either since it’s a holiday weekend.
If they do, watch out next week bankers!!!
I heard from someone very close to the financial “Experts” the other day that over 1012 banks are on the FDIC watch list right now.
That’s after we had
2008 – 25 failed
2009 – 140 failed
2010 – 118 failed (and still counting)
Still over 1000 on the watch list? Ouch!! That is a big number considering there are only 7932 banks insured by the FDIC.
To be sure, no one really knows how many are on the “Watchlist” exactly except for the FDIC and it’s cronies.
Compare today with the S&L crisis from 1989-1995 – 747 “Resolved” or closed thrifts with over $390 billion in assets.
We have 283 closed banking institutions in our current crisis and it is FAR from over.
Don’t believe me, here is the FDIC failed bank list.
http://fdic.gov/bank/individual/failed/banklist.html
This is a very interesting article written in the Wall Street Journal two years ago on Sept 17, 2008. It discusses the crisis as it was unfolding then and what the writers believed should be done about it.
http://online.wsj.com/article/SB122161086005145779.html
Here is the wikipedia article documenting the S&L crisis of the late 1980′s.
http://en.wikipedia.org/wiki/Resolution_Trust_Corporation
Well, listen, the world is not going to end today or any day soon if you don’t get in to Bulk REO. I firmly believe this is a great opportunity for right now though based on our current economic environment. You need to be buying as low as possible and offering either very competitive rental rates or very competitive wholesale prices to the rehabbers in your target market. I can’t think of any way to do this consistently or more efficiently other than through Bulk REO.
To be VERY CLEAR here. Like anything in life that’s worth ANYTHING, this takes WORK!! Your banker is not just going to roll over and hand you the keys. You need to know what to say to get them to talk. It takes negotiation skills too, but you use those everyday anyway right? Wouldn’t you rather negotiate one big package rather than one individual house? Your efforts will pay off MUCH better.
Let’s also be clear about THIS. NOBODY is paying retail anymore. We have too much inventory everywhere. Housing starts need to stop until existing inventory is absorbed by the marketplace by new households, new families, people moving back out of Mom & Dad’s place, etc. So, if you want to make anything, you need to be buying stuff on the super super cheap.
If you are looking for a way to really make an impact in your real estate business, then this might be what you are looking for. There is no doubt in my mind that banks need the help of smaller investors to come in and help them dispose of blocks of properties quickly.
If you could pick up 10 houses for even 60% of their “As Is” current value, meaning you already have a 40% discount even if a rehabber was to buy it from you to fix it up, do you think that would help? There are ways to slice and dice bigger packages into smaller packages, basically wholesaling packages of deals to small investors that want to maybe pick up 5 or 10 houses to rent out.
It’s like you being the wholesaler to Costco or Sam’s Club. You sell to them in bulk, then they sell at a discount in a little less bulk to someone else. It’s called the Distribution Channel and it’s a necessary part of any business. You can become one of the links in the distribution channel or you can continue to be toward the end of that channel.
It’s up to you. The banks go ahead and list properties all day long for 90% of As Is value. They don’t sell… they sit there forever unless a homeowner comes in and thinks they are getting a great deal. Bulk REO is the way for you to tap into the “Shadow Inventory” that the bank doesn’t want to put on the market yet. They don’t want to flood the market.
In many cases they don’t even want to take title to the property. That’s where you get into non-performing note buying as well.
The reason they don’t want to take title is because then the bank becomes liable for anything having to do with the property. I’m totally serious, I have had banker’s tell me that is what they are doing. One that I dealt with had 30 houses in one portfolio of one owner. The guy defaulted on all of his mortgages and was still taking money from people in cash for their first month’s rent, then he would disappear and not pay the bank. No background checks, no application, nothing, for ALL 30 houses.
Imagine what those houses looked like when the bank started to investigate!!!!
They were a total train wreck. The bank did NOT want the responsibility of those houses. They were all in deplorable condition. We could not come to terms with them because the trustees at the bank couldn’t swallow the loss that we were wanting them to take. Not sure what is going on with those right now. This happens every day of the week.
If the bank doesn’t take title and they just let it sit there, vacant and deteriorating, the mortgage holder stays on title and is technically still responsible for anything that happens at the property.
But I digress. Earlier this week I told you about two options that you have out there to learn how to do this.
I’ve taken enough of your valuable time today, so briefly, here are some highlights about the two programs I told you about.
My friend Susan has her Bulk REO program.
http://MyBulkReoSecrets.com
It’s a solid course and is less than $200 right now. (This could change at any time, but as I write this e-mail, on the morning of 9/3/2010 it is still under $200).
Susan believes in empowering you to go out and do this stuff on your own.
It’s very much a do it yourself program and she shows you how to find the packages and how to find people to buy Bulk packages from you.
It’s possible that you want more than what she has to offer.
Download her report at that link up there and then compare for yourself what Kenny has put together for you compared to Susan’s program. Several of my subscribers jumped on Susan’s program earlier this week. If you did and we haven’t talked about it, please let me know. (Yes, I get credit for the purchase and will probably be able to take my wife out for a half a dinner at some point because of it. 
)
Kenny Rushing announced a price slashing and a payment plan the other day for his Bulk REO Trader Secrets program, actually right after I sent you my last e-mail. (Notice I didn’t send you 18 e-mails about it like some people did, informed, not overwhelmed, that’s what I’m going for here).
http://rapidreiresults.com/bulkreo
You have 30 days to check it out and if you aren’t happy, you can return it. He also offered a 6 month, do your first deal and get double your money back offer. That is a very cool offer and Susan does NOT have anything like that. At less than $200 though, she is not making enough to be able to do that.
One of the big differences between what Susan is doing and what Kenny is doing has to do with their business focus. Susan is into many different aspects of real estate.
Bulk REO is NOT her only business. It is something she knows a great deal about though.
Kenny is 100% into buying bulk REO and part of the advantage of him doing this is he’s wanting to increase his deal flow. If he can get 100+ people sending in Bulk packages for him to look at, naturally he is going to be able to do more business. Thus, the double your money back offer. Pretty cool if you ask me. You might be thinking, why don’t I just submit deals to him and not buy the program? Great question! His focus is to make sure you know exactly what you are doing so you aren’t wasting his time or yours chasing and submitting junk deals. If he has say 100 deals sent to his team, he’s got to pick the best ones to work on. This training will show you how to not only find the best deals but the best way to present them to the fund that will potentially buy them.
So, in closing, if you think it’s something you might want to get into, at least go grab Susan’s report and watch her first video to see what it’s all about by clicking here.
http://mybulkreosecrets.com
Then, go take a look at Kenny’s offer and do your own comparison, your own due diligence, and see if this is right for you.
http://rapidreiresults.com/bulkreo
I hear that he is closing it down tonight so he can get back to focusing on his main business and helping the new students out. Teaching takes a ton of time and that is why you always see hard deadlines for these programs when they come out. It takes a good bit of time and money to put these training programs together. If they can more efficiently deliver it to folks at the same time rather than having 5 people start this week, 5 next week, 5 the following week, so on and so forth, then that is pretty smart I think.
You don’t want to learn this stuff from someone that is just a professional trainer. You want to learn it from someone that is doing it every day as their main business. Kenny’s focus has to be on buying Bulk REO, not on teaching it. He has a fiduciary responsibility to his fund investors to keep the business moving, not get too distracted with other stuff.
I hope this has helped you be a more informed consumer, whether it is for Bulk REO or for your funding needs.
Also, if you know of a great commercial property that is for sale, let me know. We are currently looking for strong commercial properties and performing commercial real estate notes.
To your success,
Marshall
P.S. Don’t forget to leave a comment on my blog here.
P.P.S. I will be hosting a webinar soon to show you how to use your retirement funds to invest in real estate without getting a penalty from the IRS. Can you imagine how quick you could build your IRA if you could flip a few deals in your retirement account… especially in a Roth IRA.
Quick links update for this post.
http://GetCommercialFundingHelp.com/funding <—- How to get your funding approved.
http://rapidreiresults.com/bulkreo <—- Link to Kenny’s program if you want to see it.
http://MyBulkReoSecrets.com <—- Link to Susan’t report that I HIGHLY Recommend.
Make it happen!!
Disclosure: This is a commercial message and you should assume that if you purchase something from one of my posts or from a link you click on from this site, that I will be compensated in some form.
I only post links for products I have check into thoroughly or am already using myself. My posts also contain valuable info that won’t cost you a dime either though,
so stay tuned.
You CAN Make Bulk REO Investing and Trading your business.
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