I have 5 Free videos for you to watch today as we kick off a BEAUTIFUL day.
These videos will show you how to become a true Transaction Engineer in today’s real estate market.
Go take a look at these 5 Real Estate videos today. They will not be available for free for long.
Today, Bank Of America announced they were putting a Halt To ALL Foreclosures in ALL 50 states.
This is incredible. I sense another bailout request rearing its ugly head due to this situation they have put themselves in.
It seems to me the only banks that aren’t worried about this potentially illegal or fraudulent foreclosure filings are the smaller community banks… you know, the one’s that don’t have any of our TARP money and are WAY more likely to be shut down by the bank regulators. This is just one more reason we should not be propping up the “Too Big To Fail” banks. They have no clue what is going on in their own organization. How could any outside regulator possibly understand the complexities in these giant banks. I think they are all wrought with fraud and illegal procedures that the public may never hear about. I say “Bring them back down to a sensible size.”
We should be promoting more community banks, not less of them.
I recently wrote an article about this very topic right here on my blog.
The only reason the smaller banks are getting shut down every Friday is because no one helped them out with TARP money. If they were able to get access to some “FREE” money just like BAC, PNC, ALLY/GMAC, and 5/3rd. etc., we wouldn’t already have 129 failed banking institutions in 2010.
Go read the article on Bank Of America halting their foreclosures and then leave a comment below or click here if you don’t see the “Comments” section and then scroll to the bottom of the page.
There was a great deal of jaw flapping about “Too Big To Fail” banks and why we allowed so many to reach the size and complexity of being in that category of “Too big to fail”.
Like most things in our world now, most people have their heads in the sand about our current financial crisis. I think many people believe that it really is over even though unemployment is still hovering around 10% nationwide and is even higher in some cities like Detroit, MI.
I’m concerned about this mindset but not surprised. I guess most people feel like there is nothing they can do about it so why worry. Others are just clueless that it is even still an issue.
The bottom line is, the banks are still under extraordinary pressure to tighten up there books and get their balance sheets in order. I don’t have all of the answers, but I do know that some are forcing, (maybe “Persuading” is a better word) many of their best customers, large performing commercial property owners, to refinance their loans with another institution.
Why in the world would a bank want to do this?
They need performing loans right? I mean, that IS their job right?
Find worthy borrowers and projects that they can lend their investors’ money to.
Yes, that is their primary objective in normal times. These are not normal times though. In order for a bank to stay off the radar of the federal and state regulators, they need to have a large amount of cash reserves on their balance sheet. That amount increases when they have troubled loans. They have to sock more money away when people stop paying on their loans.
That my friend is why the banks call commercial performing notes due. This allows the bank to raise the maximum amount of capital for one of their assets.
If you thought we were out of the “Banking Crisis”, check this out.
We have now reached 125 total closed banking institutions for 2010.
Apparently, these institutions were all NOT “Too Big To Fail”.
According to the FDIC website.
Maritime Savings Bank of Wisconsin had approximately $350 MM in assets.
Bramble Savings Bank of Milford, OH (Suburb of Cincinnati) had approximately $47 MM in assets.
In Georgia, three institutions were shut down and all three ended up going to the same acquiring institution.
Bank of Elijay, Elijay, Ga – $168.8 MM, in assets
First Commerce Community Bank, $248.8 MM in assets
The Peoples Bank, $447.2 MM in assets
The other bank that closed Friday was in New Jersey.
ISN Bank, Cherry Hill, NJ -$81.6 MM in assets
My question to you, are we just creating a larger number of midsize banks that may become “Too Big To Fail” themselves?
Or, are we in the middle of “Right Sizing’ the banking industry?
What should be done about the really big banks that were classified as “Too Big To Fail”?
Leave your thoughts below.
(If no comments section is below, click the title of the post up above and you will see the comments section).
How many more failed banks will we see this year?
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
____
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.
How many free and clear houses would YOU need in order to ride off
into retirement?
The magic number I have always heard was 10 free and clear houses…
Is that number good for you? What’s your number?
So… what is a free and clear property?
Free and clear simply means there is no debt on the property.
So, all of the rent is coming in and going to property taxes,
repairs and then into your pocket.
When most properties only clear a few bills per month when managed
correctly, if you have no mortgage payment
that makes things work much easier.
Could you get there other ways? Well, of course. There are so
many ways to get there it is hard to list them all. However,
housing is a basic need. That’s why affordable housing is such a
strong investment but you MUST buy it right. You can’t pay retail
for ANY investment.
Smart stock traders know this. The smart one’s buy low and sell
high.
The stupid ones buy when prices are getting closer to peak value
and then end up selling on the downside. So, they buy too high and
then they sell too low.
With credit markets being so tight right now, everyone that is
selling is taking a big hit… including the banks. It does NOT
matter what asset class you are interested.
If you have capital, you are in good shape because you can hold on
until pricing recovers AND you can purchase now at deeply
discounted prices.
There are tons of people that MUST Sell in any market. It happens
because life happens. Even in the best of times, there are some
sweet deals made because people don’t want to go through the time
and trouble it takes to improve a property so they can get the most
out of it. So, they take a discounted sale price just so they can be
done with it. Those are the every day deals.
What if you could get a property with no mortgage right NOW?
A friend of mine, that runs a hedge fund focusing on Bulk REO pools
gets those deals all of time.
Would you like a free report that shows you how you can do this?
Click this link for the Bulk REO Secrets Report.
Think of this, how many people buy lottery tickets?
How much do people waste on those lottery tickets?
Well, I have news for you, this real estate market could be YOUR winning lottery ticket.
Heck, maybe you don’t like to learn new things?
Get out of your comfort zone and learn some useful information.
Get in the house giveaway here:
http://rapidreiresults.com/house
What could you do with a house with no mortgage on it?
Flip it quick to pay off some big bills?
Hold onto it for a while and collect the rents?
Hold it for 40 years and use it for retirement?
Hold it for a year or two and trade up later to a bigger, better
property, perhaps a multi-family building?
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.
For now, go check out Susan’s free report on the Secrets of BULK REO Investing
Did you realize there have already been 103 failed banking institutions in the United States this year?
They always happen on Friday… so expect to see a few more tomorrow.
I have been projecting out to the end of the year that we will have at least 180 failed banks for the year.
Is that a high number?
Let’s explore it. Below is a link to the FDIC website where they list all of the failed banks for the past 10 years. It’s a little bit top heavy don’t you think?
http://www.fdic.gov/bank/individual/failed/banklist.html
I will break it down by year because I haven’t done that for a while.
Year – Number of failed banks
2000 – 2
2001 – 4
2002 – 11
2003 – 3
2004 – 4
2005 – 0 (Yes that’s a Zero)
2006 – 0 (Another big goose egg!!)
2007 – 3
2008 – 25 (UH OH!!)
2009 – 140 (YIKES!!!!)
By July 24th in 2009 – We had 64 banks shut down
This year, by July 23rd – We have had 103.
Maybe you think things are slowing down a little now?… They aren’t. You watch.
By the end of 2010, we will have at least 180 failed banks… maybe more. Here is a little more detail about this year’s stats. You will notice that we aren’t slowing down, staying pretty steady if you ask me.
Month – # of bank failures in 2010
Jan – 15 Failed banks
Feb – 7
March – 19
April – 23
May – 14
June – 8
July – 17 (None just prior to the July 4th Holiday and we still have one more Friday to go as I write this)
Do you think the FDIC is concerned about this… or about the perception of the public?
I’m going to tell you that they absolutely are. Do you remember in October 2008 when the FDIC bumped up the FDIC Insured Coverage amount for deposits from $100,000 to a whopping $250,000? That was directly related to consumer sentiment about the stability of our banking system. It was a temporary measure to increase the coverage. They had said at the time this would be lowered back down on Dec. 31 2010 – projecting the crisis would be over by then.
Guess what… they just made it permanent. Well, actually it was made permanent by the “Dodd-Frank Wall Street Reform and Consumer Protection Act” signed on 7/21/2010 by the President, see the press release below.
http://www.fdic.gov/news/news/press/2010/pr10161.html
So, who are these banking institutions that are failing? Well, they are NOT the big banks. You know, the “Too Big To Fail” banks like Bank of America, Citi, Chase, Wells Fargo. Nope, these banks all got their whopping tarp money and are making a TON of money off of zero or nearly zero interest loans from the FED.
The banks that are failing are YOUR neighborhood banks. You know, the one’s with only 2 or up to maybe 10 branches. Those are the majority of the failures. This is all getting swept under the mat on the news. Nobody is even covering it. Why is that? Do you think they are being told to “Pipe Down” about the bank failures?
This would be newsworthy in any other year. For some reason, the news media does not care about it.
Well, I have an idea for you. Go talk to your local bankers and let them know what you do. See if there is a fit for you to help them or some of their clients.
If you are a Realtor, maybe you can help them with their marketing.
If you own a landscaping company, maybe you could help them clean up their REO properties to give them some curb appeal.
Are you a contractor? See if you can do some work on the houses to make them show better on the inside or outside.
If you are out of work, there IS work to be done. I’m totally serious!
Maybe, if the bank won’t pay you upfront, you could do a little profit sharing with them or negotiate with them to get paid when they sell the property.
Or, if you have no work right now, maybe you could use one of these properties as a showcase of your talents. Create a history book of the property, what you did and how it turns out.
What if there was a way that you could not only help your local bank get out of trouble, but also help the local property owner get new funding?
There is a lot of work ahead of us all to get this economy going. Housing is a huge opportunity, but start out slow if you are just getting going.
When will the bank failures end?
On Friday, July 16th, 2010, the FDIC announced 6 (SIX) more bank failures. We are currently up to 96 failed banks for the year and we’ve barely passed the half way mark.
For the record, if you haven’t been paying attention to this trend, last year we had 140 failed banking institutions… that was for the whole year!
If we stay on the current pace, and I’ve mentioned this before, we will close out 2010 with a whopping 180 failed banking institutions!
If you don’t think the banks are motivated to deal real estate, you are completely wrong. They just can’t let on that they are.
The bank executives and negotiators are motivated just like you are motivated when you have an investment property to sell or lease. It’s a game of cat and mouse though. They can’t let on how motivated they are because then the sharks start circling. They MUST cover up the blood in the water as much as possible and paint as rosy of a picture as they can, otherwise they will be finished MUCH faster than anyone wanted and it will not do your community any good to have more failed institutions. It puts people out of work and lowers the number of lending institutions.
To be VERY clear, I do NOT wish harm on any of these banks or bank executives. My point is, they need to sell and if you can present a deal that makes sense and that they can live with, they WILL do the deal.
You will NOT get anywhere if you walk in like you are all high and mighty and expecting them to bend over for you. It’s not going to happen. They will usher you out the door faster than you walked in and likely will NEVER do business with you. Show your local banker some respect.
Build relationships with them and let them know what you can do to help them out. They may just let you know about a property they are having trouble moving and then you can continue to build your business relationship from there.
If you would like to have a free report to see how you can work with some of these banks to help negotiate loans and get funding through groups that ARE lending, go check out this free report I have for you.
http://MyRealEstateFunding.com
Take a look at that report and we will have a webinar you can watch for more information.
Happy and Profitable Investing.
The topic of real estate short sales has been a hot topic for many years in the real estate investing world.
There is an opportunity to create a win for the homeowner, the bank and for you as the investor.
See the article below discussing some of the current trends in the banking industry.
http://money.cnn.com/2010/03/29/real_estate/short_sale_explosion/index.htm?postversion=2010032914
I personally have stayed away from short sales for the past year or two because the banks have been less than helpful getting them done. Some take many many months to get a shortsale approved.
However, there is a new trend in the banking industry due to the financial strain that these bad loans put on the bank and it’s balance sheet.
Guess what, bank regulators do NOT like to see non-performing mortgage notes on a banks books. It looks REALLY REALLY bad and this is why we are currently seeing between 3-7 bank closings EVERY SINGLE week. As the problem grows on the banks books, the regulators tend to get a little, ahem edgy about it.
The FDIC has to insure the deposits at these banks and when they see a bank going South in a hurry, they step in, shut it down, transfer the assets over to a seemingly stronger bank or create a special holding entity until they can find a buyer for the assets.
So, with bank closings increasing at a rapid pace (More closings will occur this year than we have seen at least since the S&L crisis). See the article below on the S&L Crisis, striking resemblance to what we are going through today.
http://en.wikipedia.org/wiki/Savings_and_loan_crisis
If you would like to learn how to start an ACTUAL real estate investing business helping underwater homeowners to shortsale their homes, save their credit and help them move on, register below for a free video below.
That video will show you how to turn many people’s lives around by helping them
get past the foreclosure trap and still be able to make money as well.
________________________________________
UPDATE: Since we couldn’t do the webinar last Thursday due to the weather, see my next post regarding what is now available.
http://rapidreiresults.com/wordpress/?p=553
This latest post explains how to get the special report on funding commercial real estate deals with hedge funds, both for your own deals and for finding funding for other investors.
________________________________________
Thursday Feb 11th at 9pm eastern time. You MUST register
and I’d do it RIGHT NOW:
Check out this video from Marcus and Millichap president Harry Green where he weighs in on the state of commercial real estate.
Back to our webinar info:
Here’s what you’ll learn:
UPDATE: **************************
Sign up now and get access to the replay webinar.
You will be automatically sent the information to get to the replay, plus the special report will be sent to you.
*********************************
* How to enter the secretive realm of the
hedge funds, to connect them with money making
opportunities right in your neighborhood right now
* How to benefit from the commercial real estate
crash, without investing a dime in buying or selling
properties
* How to find deals with almost no work, so you
simply introduce someone to a private equity
fund or hedge fund and get a guaranteed
commission that can be enormous
* How to find a lender as opposed to yet another broker.
The difference? You’ll have access to the direct
decision-makers on the loans you want funded. And
they’ll have access to private equity and hedge fund
investors because everyone is participating in the
loans, not brokering them to someone else
* How to submit a deal so that there is no further work
required on your part
* A simple “back of the envelope” way to know
that a deal is likely to fly, and when it’s not.
* What makes a good deal or a bad deal
* How to go to networking meetings and find deals
right and left
* How to connect applicants with lenders with a simple
two page form guaranteeing you will get paid, so that
is ALL you have to do, you’re done, and someone else
makes you money while you move on or pursue your hobbies
and spend time with family.
* How to make the big money in “commercial
loan modifications” and “workouts”
Register for the webinar here:
BTW. This training webinar alone is easily worth thousands to a
person who is willing to take the action steps and there MAY not
be ANY replay:
Full Disclosure: While Richard and I are covering a ton of great
stuff on the call, he can’t possibly teach you everything you
need to know in a 1-2 hour webinar.
There is an offer at the end to get further training and support
from Richard and his team. If you decide to purchase his program,
my company will be compensated and you’ll be helping me feed the
children (The Moreland Children, 4 with a 5th one on the way .
Get this though, if you decide to purchase the program, I’m going
to include a very special bonus to help you with your online
marketing as well. You’ll be able to apply this bonus to ANY
type of business you are doing online.
Remember though, there is no obligation to purchase anything
and the webinar alone is going to be worth some serious money.
