Paulson Admits Mistakes

Mid-Day Market News & Commentary by Chris McLaughlin, October 16, 2008
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The Dow Jones Industrial Average made some positive movement forward today after new claims for jobless benefits came in lower than anticipated.  The U.S. Department of Labor said that unemployment insurance claims fell 16,000 to 461,000, which was below the general consensus of 475,000. 

 

U.S. Treasury Secretary Henry Paulson acknowledged missteps today in an interview with Fox news.  “We’re not proud of all the mistakes that were made by many different people, different parties, failures of our regulatory system, failures of market discipline that got us here,” Paulson said.  But the embattled former Goldman Sachs CEO sounded more confident about the future: “We will mitigate the impact on the real economy and we’ll get this financial system working again.”

 

The National Association of Homebuilders/Wells Fargo housing market index dropped 3 points to 14 in October, which was an all time low.  Last month the index was at 17, which was up from 16 in August.  Typically a rating of 50 or more indicates a positive environment; the index has been below 50 since May 2006.

 

Now on to our real estate investing system…

 

How to Find FDIC Real Estate for Sale

While many short sale investors tend to focus on local bank owned properties, don’t neglect FDIC asset auctions. Since fewer people are familiar with finding and buying FDIC owned assets, there tends to be less competition and thereby, lower prices. FDIC is often forced to assume the assets of individually failed banks; especially smaller entities which may not have been purchased or assumed by larger banking institutions.

Learn More

To find out about FDIC owned properties call 888.372.FDIC (3342), (800) 568-9161 or visit http://www2.fdic.gov/drrore/index.asp to perform a property search. FDIC properties are sold “as-is” by sealed bid. It is necessary to complete a “Purchaser Eligibility Certification” prior to submitting bids on certain properties- especially commercial or affordable housing units.  The FDIC updates the list of available properties on Monday so make a point of visiting weekly.

Big Bonus

One of the biggest “boons” to potential investors is the ability to obtain seller financing for the following types of properties:

·        Those selling for $500,000 or more.

·        Properties qualified as “affordable housing units”

·        Commercial and land properties of any price.

Rates are competitive and further reduce the need for bank financing – an especially attractive alternative for small investors trying to “move up” during a period of tightening lending standards.

To Participate

Each property will have a specific contact number to the broker or auction house required to find out more information. Remember, all FDIC properties are sold as-is so it is important to understand what repairs, back taxes or other costs may be involved. When submitting a bid package, it is possible to place a “low ball” offer for a property but keep in mind that the highest net bid typically is awarded the property. It is often a good idea to review prior property sales to get a basic idea of realistic prices as well as competition. If you have reason to suspect you may be the only bid, an aggressively low offer may become the basis for immediate equity.

 

More on Friday…

 

See you at the top!

 

 

Chris McLaughlin, J.D., M.B.A.
web: http://www.shortsalesriches.com/welcome.html
e-mail: info@shortsalesriches.com

Phone: (800) 452-7627

P.S.: 

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P.P.S.: If you really want to get started building your wealth, then take action today! A journey of a thousand miles begins with a single step. Take that step right now by clicking here:

 

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