Posts Tagged ‘Bank negotiation’

Bad News… More Bank Failures

Jan 30th, 10 / 1 Comment

Hey, did you hear the news?

Unless you get direct updates from the FDIC, you probably haven’t heard this yet. SIX (6) banks went belly up on Friday. That is a total of 15 for the year!! Last year, we only lost 140. Yeah right, ONLY 140. That was a HUGE number. This year is going to be an even bigger year of banks closing. I’ll bet that we see between 200-250 banks get shutdown.

So… WHO do you think is the most motivated seller out there right now? They don’t want you to know it and they put up a great front, but the banks and other lenders are the MOST motivated sellers for today and likely for the next 2-3 years. Why are they so motivated?

It’s simple actually, but not intuitive. The banks are getting hammered by the FDIC right now, so much so, the FDIC can not even keep up with the numbers of banks that they need to close. If the FDIC had the manpower and a way to handle it all, they would likely get it all over with quickly like ripping off a band-aid… but they can NOT handle all of the volume.

The Office of Thrift Supervision is one of the agencies that goes in and examines the banks’ books. If the bank is found to be out of compliance in the number of performing loans to non-performing loans and the amount of cash on hand, they have serious consequences.
So serious in fact, if the deficiencies are not corrected quickly, they come in and close down the bank. That is why you can bank on at least 2-5 banks closing on any given Friday right now.

What’s even worse, to help correct the issue, banks are calling commercial loans due to build up their cash reserves. The strange thing is, they are calling the PERFORMING LOANS due!!! They are then taking significant discounts on even performing loans just to raise cash. The reason the call commercial loans due is because they CAN. It is written into most of the commercial loans out there that the bank can call them due.

So, how can YOU take advantage of this situation?

If not more importantly, how can you HELP in this situation? Well, you and I are not going to fix this problem ourselves, it is just too big. However, there are several ways to help sellers, the banks and your own wallet in this economy. First, you need to arm yourself with the knowledge and the capital to get it done.

Good news!! If you are already dabbling with commercial real estate, or you think you’d like to, there are many ways to get involved. I suggest start small, learn the language and get relationships.
I will be hosting some webinars over the next several weeks to help you in that education process.

Also, if you missed my webinar on Thursday night, go below for the encore call.
You’ll see why once you get a chance to see it.

My guest has a way to accelerate your involvement in commercial real estate by hooking you up with funding straight from Government agencies that MUST lend this money out. In fact, they added an additional $4.5 Billion to this amount in 2009… Tons of it is still available.

If you tried to get on the call Thursday and couldn’t get connected, I would like to apologize. We had an issue with the original webinar link so we had to create a new meeting. A few people e-mailed me to let me know they connected but only saw a blank screen. So, I’m very sorry about the issue. To make up for it, Tuesday night I’m hosting an encore webinar.

Anyway, enter your name and e-mail address below for the replay.

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Enter your name and e-mail address here for access to the encore of our webinar on Government Funding Solutions for Investors and Developers. It happens Tuesday, February 23rd at 9:00 PM EST, 6:00 PM PT.


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We covered a TON of the questions that everyone sent in during the registration, and some of mine, too.

Of note, Sean went over:
• Low Income Housing Tax Credits
• HUD Programs
• Section 8
• The effect of the economic stimulus bill on us investors
• What the foreclosure bill has done to the market
• How much government money is available to us
• Soft financing programs
• Real live case studies
• And so much more

Full Disclosure: While Sean covered some great content on the call and there is no charge for the webinar, he can’t possibly teach you everything you need to know in a 1 hour webinar. There is an offer at the end to get further training and support from Sean.
If you decide to purchase his program, my company will be compensated and you’ll be helping me feed our children. :)
Just need to let you know that.

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commercial real estate, Commercial Real Estate Investing, Funding Solutions, Funding Sources For Real Estate Investors, real estate investing, Uncategorized

FHA Waives 90 Day Seasoning Rule

Jan 17th, 10 / 0 Comments

This is great news!
While I’m not an attorney, the legal speak in the pdf below tells me that FHA is now going to allow a buyer using FHA financing to purchase it even if the seller has not been on title for a minimum of 90 days.

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

The 90 day seasoning rule was instituted to try to keep “Illegal flips” from occuring. I have “illegal” in quotes because it is only illegal if someone is committing fraud by getting an appraiser to appraise the property for MUCH higher than the real value of the property.

This is totally illegal and I’m pretty sure you can be put in jail for that. Again, I’m not an attorney so don’t take my word for that.

However, the way most of these transactions are happening is this. An investor purchases a property either from a bank or from a homeowner in distress at a substantial discount because of the distressed situation.

Banks do NOT want to spend money to fix up foreclosed homes.

Homeowners that are having trouble making house payments do not want to make repairs either. They are struggling just to pay their bills.

Why would they continue to repair a home they are likely going to lose in foreclosure anyway?

So these properties NEED an investor buyer to step in and buy the home and rehab the home back to move-in ready condition.

Well, in these times of tight credit, it’s next to IMPOSSIBLE to get a decent rate on a long term loan for an investor. So, rather than holding the property as a rental, the investor fixes up the home using high interest loans.

The investor then turns around the property and finds an end buyer that wants to live there. Typically, the end buyer still gets a really good deal on now an updated home rather than a distressed property.

Well, when FHA decided to implement the 90 seasoning rule, that eliminated a TON of buyers, especially first time home buyers that typically rely on FHA programs to get in with low down payments.

They don’t typically have extra money to fix up a home.

So, I welcome this change for everyone involved. It is going to speed up the acquisition of these distressed properties because now the investor will have an easier time finding a buyer.

What do you think of this plan?
Leave some feedback below.

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Uncategorized

Negotiating With Lenders – Loan Modifications

Oct 30th, 09 / 2 Comments

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

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Forbearance and Loan Modifications, Short Sale Investing & Pre-Foreclosure, Uncategorized

Are You Trying to Figure Out How to Buy Bulk REOs?

Sep 15th, 09 / 0 Comments

Foreclosures up, prices down, blood bath…
Enter the sharks.

Savvy investors live by the motto – “buy low, sell high”.
Prices are low, they smell blood… they’re buying.

I’m not talking about investors that buy a property or two.
I’m talking about hedge funds and large investor groups that buy in bulk…
millions of dollars at a time…
at a discount (of course).

Then there’s the lenders…
lots of “nonperforming assets” on their books threatening their livelihood.

They’re not set up to efficiently sell them off one at a time.
But they do like to off load them in bulk (like they used to do with mortgages).

Here’s the good part – for you:
Become a matchmaker and collect a generous bounty ($25,000, $50,000 or more).

Want to know exactly how to…
* find the lenders,
* find the investors,
* make the deal,
* collect a fat bounty

Just sign up for our newsletter and I will give you access.

Spend 90 minutes – not months or even hours – and you’ll know how.
AND have all the tools and proven scripts you need.

But I need to warn you: this opportunity is because of a temporary market dislocation. I honestly don’t know how long this golden goose will be laying eggs. But right now the omelettes are fabulous.

Bulk REO Secrets – right on point… right to the point… follow this bread crumb trail to huge, fast, easy profits…

Sign up for our newsletter and I will give you access to the page.

Marshall

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Distressed Real Estate and Debt, real estate investing

Join My Newsletter List and Get the Following: 1) My $97 eCourse on marketing your RE Biz. 2) Priority Notification of upcoming training calls. 3) Post your properties on my website.

Join My Newsletter List and Get the Following: 1) My $97 eCourse on marketing your RE Biz. 2) Priority Notification of upcoming training calls. 3) Post your properties on my website.