Market News & Commentary by Chris McLaughlin, January 23, 2009
http://www.shortsalesriches.com/welcome.html
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It really isn’t as difficult as you might think it is … but it all starts with TAKING ACTION. If you want something that you never had, you need to do something that you’ve never done, right? So forget all the negativity, and forget all the turmoil. More millionaires are created during times like these than any other time … so are you ready to make it happen? If so, be one of the 18 spots that we have left for our Saturday webinar at 3PM EST / 12 PM PST entitled “Recession Proof Real Estate Investing: How to Buy Property with no out of pocket costs!”
The link is right here, so jump on this now:
https://www2.gotomeeting.com/register/859239149
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In real estate related market news today…
Shame. Shame. Shame. The guy who seemed to have an unblemished reputation just got thrown out … for going on a absurd spending spree and concealing how bad things really were.
Yes, if AIG’s parties weren’t bad enough (we’ve discussed those at extensive length, go to our blog and search AIG), Merrill Lynch’s former CEO, John Thain, was fired yesterday by his new boss, Bank of America’s CEO Kenneth Lewis. There were several reasons for the firing, but chief among them was the fact that Thain spent billions of dollars in late December on employee bonuses. The normal protocol was to pay the bonuses in January, but apparently Thain wanted them paid before the Bank of America merger closed. It caught Lewis off guard, and he was ticked.
Why? Well Merrill Lynch lost a whopping $27.08 billion dollars during 2008. Yet their total compensation package was $15 billion, a reduction of just 6% from the year ago period! Think about it folks … you lose $27 billion, sell your company to Bank of America for pennies on the dollar compared to what you used to be worth, get billions in government aide, but still pay these morons billions in bonuses? This is the epitome of the fleecing of America.
And it gets worse. The quarterly loss was much more than Merrill executives had told Bank of America when they agreed to buy–Merrill Lynch lost $15.31 billion in just the fourth quarter. And according to the Wall Street Journal, Thain jetted off to Vail, Colorado when it all hit the fan. Way to lead, John Thain!
But then CNBC reported yesterday the absurd spending that Thain did throughout 2008. What could be absurd? Well, how about $800,000 to hire a decorator, Michael Smith (who happens to be decorating the White House for $100,000 right now), to decorate his office. How about $87,000 for an area rug, four curtains for $28,000, and a pair of chairs for $87,000. And my favorite: a commode on legs for $35,115! Enough said. And kudos to Lewis for firing this guy when he did. Had he not fired him, it probably would have been Lewis’ job on the line anyhow.
Now, on to our real estate investing section…
Poverty Mentality? Learn to Break the Bad Habit & Plan for Success
Is a poverty mentality keeping you from breaking into short sales? Learn how to break bad habits like a negative attitude, poor financial outlook and other self defeating behaviors that keep you in the poor house rather than planning for prosperity. Investigate your own money-mindset by answering the following items truthfully:
1. Do you find yourself seeking the approval of friends and family on a regular basis?
2. Do you find it difficult to separate fact from fiction especially when it comes to finances?
3. Do you expect the government, insurance, benefits or someone else to “come to the rescue” when times get tough?
4. Do you expect to fail or believe things are left to “fate”, “chance” or pure “luck” rather than hard work and informed decisions?
5. Do you find it unusually difficult to invest rather than gamble with money? For example, are you more likely to buy a lottery ticket or go to Vegas than purchase an information product that can teach you how to profit from your time?
6. Do you believe hard labor is the only way to get ahead in life?
7. Do you think riches and wealth are just for those fortunate enough to have “connections” or be “born with a silver spoon”?
8. Do you apologize or dismiss your success rather than gracefully accept the praise and credit?
9. Do you find yourself getting excited by something only to feel stupid later once someone disagrees with your position?
10. Do you fear change and find it difficult to leave the past behind?
If you find yourself answering yes to these statements, it’s time to set aside the negative attitude and begin replacing it with a positive mindset. Don’t allow fear and negativity to control your financial future. Success is a choice – not a simple random chance.
Because it is a choice – you can control your financial future by taking the time and energy required to educate and inform yourself about short sale investing then put together an action plan for success. In fact, you can change your life as rapidly or slowly as desired simply by putting an end to the defeatist mentality that keeps most people in poverty their entire lives. Instead, find out how easy it can be to transform your negative mindset into a positive force for your financial future.
Time is Money – Keeping Track of Time to Improve Your Bottom Line
You have heard it said “time is money” and no place does that hold more true than when investing in short sales real estate. Have you ever stopped to calculate the cost of your actual time? What about the value of that same time? Most people sell their time in exchange for as little as $7.15 per hour (minimum wage). Take time to really let that set in…envision the last day of your life with your loved ones by your side. Would you trade that last hour for $7 – pre-tax!?! Of course not. Yet each and every day people shuffle to and from work, spend hours each week in traffic and plow through jobs that leave them mentally and physically exhausted in exchange for a few dollars per hour.
Let’s work in reverse and assume you want to generate an additional $1,000 per month or $12,000 per year – after tax. What are your options? Well, if you are in the lowest income bracket (currently 15 percent) and went to work for yourself – you would need to earn an additional $$1,400 per month to bring home just under $1,000 per month. At $20 per hour (roughly the average hourly income) that would require an additional 70 hours per month or the entire year …assuming it didn’t push you into a higher tax bracket!
What about short sales? Is it possible to make $12,000 from just one deal? Of course! That plus much more is entirely possible – in fact, it is done on a regular basis. How much time does it take to find, place a bid and purchase your first short sale property? Probably less time than it would require in your first month of part-time work above….and the first time is the toughest! Once you understand the process and your financing is in place, each subsequent deal becomes easier and easier.
What would happen if you just turned one solid short sale deal each year? For ease of numbers let’s just call it $10,000 a year. For less than one or two week’s worth of work you could reduce household debt, afford a great vacation, save for retirement or pay for the kids college without having to spend all your time away from home.
Finding the time to begin investing in your financial future is as simple as 1-2-3.
1. Cut the cable and invest 3 months worth of the savings into education. Now you have the time and money required to educate yourself on the basics of short sale investing. Simply transfer the money you would normally spend on those premium cable channels into information that will transform your financial future.
2. Set aside the time to get started. If you normally watch television every night for an hour or two; replace it with short sales prospecting. If you are more of the weekend football warrior than trade an off-season for a new financial future by spending your days scouting real estate. Whatever works best is the right method for you – just do it!
3. Stop dreaming and start doing. Seriously, take action. Planning only goes so far but action is where the rubber meets the road. Make it a priority to fill out the paper work and put what you have learned into practice. Commit to doing at least one short sale deal then make up your mind whether or not it was worth it. Chances are you will wonder why it ever took you so long to begin!
See you at the top!
Chris McLaughlin
http://www.shortsalesriches.com/welcome.html
P.S.: Be one of the 18 spots that we have left for our Tuesday night webinar Saturday at 3 PM EST / 12 PM PST entitled “Recession Proof Real Estate Investing: How to Buy Property with no out of pocket costs!”
The link is right here, so jump on this now:
https://www2.gotomeeting.com/register/859239149
Copyright Loss Mitigation Institute 2009.
All Rights Reserved.
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Finally, a blog for Real Estate professionals
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About the author:
Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.
* As the top Florida foreclosure and pre-
foreclosure expert, he oversees more than
100 short sale & REO closings each month
* Long-time authority on real estate investing
and rapid flipping of distressed homes. Owns
portfolio of nearly 100 high-value, high-profit
properties
* Owner and Supervising Broker of one of Florida’s
largest Real Estate firms, running 5 different
offices, supporting nearly 500 agents, uniquely
positioning him to help thousands of investors
make money in the biggest market opportunity ever!
* Highly sought-after speaker, consultant, and
seminar leader for current trends and hot topics
in Real Estate Investing, Entrepreneurship, and
Wealth Building
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