Posts tagged as:

barack obama

The Stimulus Package & Its Impact on Real Estate

by Chris McLaughlin on February 16, 2009

Real Estate News & Commentary by Chris McLaughlin, February 16, 2009
http://www.shortsalesriches.com/welcome.html

—-
“How to Exploit a Little Known Flaw in the Bailout
Package for a Six-Figure Payday!”  (But it’s only
good for the next 14 months…)

I don’t know why people haven’t caught on to this yet.
Because with this, you can forget fearing this recession,
and use it to your advantage instead! 

I’ll show you how, and it’ won’t cost you a cent. 

But there IS a catch – we fill up early, and there’s no
wait list.  And at last count, we only had 14 spots left.

Go and grab one of these last openings NOW, or miss out.
https://www2.gotomeeting.com/register/830662521

—-
President Barack Obama’s senior advisor assured the American public that the President has a “solid” housing plan that will stabilize housing prices and help prevent the tsunami of foreclosures that have come.  Speaking on Fox News Sunday Alexrod said that the President would announce this coming Wednesday his plan that will start “raising home values that have been plummeting.”  Axelrod said that the President’s plan will commit $50 to $100 billion to stem future foreclosures.

And the financial markets were closed this holiday, so instead of reviewing financial news that impacts real estate we’re going to provide you a quick overview of the Stimulus package in terms of the impact it will have on real estate investors and Realtors:

Homebuyer Tax Credit: The bill increases the $7,500 tax credit to first time homebuyers to a maximum of $8,000, but in a major change it does not require repayment of the $8,000.  The credit is available to those with adjusted gross incomes or no more than $75,000 or $150,000 if married and phases out up to $95,000 and $170,000 if married.  The definition of “first time” homebuyer is actually someone who hasn’t purchased a house in the last 3 years. 

In an effort to assist with home stabilization, the bill will force a recapture of the entire $8,000 tax credit if they home is sold within 3 years of purchase. 

FHA, Freddie Mac & Fannie Mae Loan Limits: The bill extends the increase in loan limits that were passed in 2008.  The limits are 125% of the median home price for the local area for FHA and $417,000 for Fannie and Freddie.  There are certain areas of the country where these limits are higher, however.  For example, Ventura County, California has a limit of $729,750 for both FHA and Fannie & Freddie—the maximum cap allowed.

Neighborhood Stabilization: An additional $2 billion has been allocated to the Neighborhood Stabilization Program (NSP).  This is an extension of the Community Development Block Grant whereby Realtors and investment groups can team with municipalities to purchase foreclosed homes in blighted areas and then resell them to families at or below 120% of the area median income, with 25% of the funds being used to families below 50% of the area income. 

USDA: There’s another $500 million for the existing USDA Rural Housing program.  That’s basically the only 100% program out there, so the extra half a billion sure will help get more people financed.

Now, on to our real estate investing section…

Confiscation of Wealth

Throughout history there have been those that learn how to preserve and even expand their wealth despite (or some may say because of) tough economic times while others merely persevere. The remaining masses find themselves growing ever less wealthy with each passing year through the confiscation of their hard earned wealth. Learn how short sales allow the average person to hold on to what they have earned by avoiding these common wealth confiscation culprits:

  1. Taxes. You have heard the saying there is nothing certain in life except death and taxes. While it may be true that you cannot avoid paying taxes, it is perfectly acceptable to minimize the amount of taxes that you legally are required to pay. Consider this, if you work for a living, the harder you work the less you bring home – proportionately speaking. That is because labor is taxed at a higher rate than other forms of profit. Transfer the source of your cash flow and instantly save 10, 20 or even 30 percent on every additional dollar you make.
  2. Inflation. As if taxes weren’t enough to grapple with, inflation is a slow force that steadily decreases the purchasing power of your dollar. As the government prints more and more money, it decreases the value of each original unit. Things like food, housing, raw materials and other basics become more expensive over time. Lest you think inflation doesn’t matter, consider this….the dollar has lost more than 90 percent of its purchasing power in the past 100 years. On the other hand, those who own tangible assets such as real estate are able to keep pace with the rate of inflation. It may go up or down for short periods of time, but eventually tangible assets always return to an inflation adjusted rate.
  3. Savings. This may initially sound counter-intuitive; after all, you have probably been told to save money and put it into an interest bearing account in preparation for retirement or a rainy day. Unfortunately, saving money puts it at risk for the dual hardship of both taxes and inflation rather than putting it to work. Consider this, if you placed $100,000 into a savings account that always kept perfect pace with inflation you would still lose money once you paid the taxes on the earnings. Add in transaction costs, holding fees and other expenses to realize you are unlikely to ever break event. The only way to build wealth is to generate an excess above and beyond inflation, taxes, transaction fees and other associated costs…this means you must put your money to work. The most common method has been via debt or leverage. By using a low interest fixed rate loan you can minimize volatility and risk while maximizing your ability to increase long term returns.

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html  

P.S.

This weekend’s webinar replay is right here…

http://www.webinarwizards.com/custom/index.cfm?id=170879

P.P.S.:

Find out how a widowed ex-Marine left with 2 children figured out how to make it work with commercial real estate by clicking here:

https://commercial.infusionsoft.com/go/invite/a181/

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalescoach.com
http://www.shortsalesriches.com/welcome.html
http://www.youtube.com/shortsalesriches
*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…

http://www.shortsalesriches.com/blog
*************************************************

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 4 different
     offices, supporting nearly 450 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

 

{ 1 comment }

Wall Street Scoffs At New Bailout Plan

by Chris McLaughlin on February 11, 2009

Real Estate News & Commentary by Chris McLaughlin, February 10, 2009
http://www.shortsalesriches.com/welcome.html

—-
“2 Careers That Boom in a Recession!”
I’ll tell you about one of these for fr*ee
in my no-charge, no-cost, no-obligation
webinar right here on Thursday night:

https://www2.gotomeeting.com/register/896320431

Why would I do that for no charge?  Because
I want a chance to tell you about the other
high-income opportunity, too.

And I can’t do it in an email.But If you’re finally ready to blast out of
this economic mess, then get a move on… I’d
hate for you to miss out, because we always fill
up a day or so early.  See if there’re any spots
left:

 

https://www2.gotomeeting.com/register/896320431
—-
So much for a honeymoon for President Barack Obama, at least when it comes to the economy.  Wall Street reacted to his bailout plan …and it wasn’t pretty.  Yesterday the market tanked … with the Dow Jones Industrial Average dropping 4.62% to 7,888.88.  Ouch.

Was it really that bad?  What happened was the typical “buy on the rumor, sell on the news” hype that’s common on Wall Street.  What folks need to realize, and what we’ve been saying in this e-mail for months, is that there will not be an easy fix.  There is no silver bullet that will take us out of this mess.  So the markets headed lower, as they were reminded that our economy is indeed in trouble.

Frankly, I’m rather disgusted with the junk that’s in the non-stimulus bill.  All of this spending by the government will lead to … you guessed it: massive inflation.  The government just can’t keep printing money.   Let’s hope enough pressure is added to Congress to make this happen.  They have to FIX HOUSING FIRST in order to have a true economic recovery.  Anything short of fixing housing just wastes billions of dollars without accomplishing the real objective: stabilizing housing prices, which therefore stabilizes banks.

And hey, guess what? We’re not in this alone, our friends in the UK are in the same boat. The head of the Bank of England said that Britain was in a “deep recession” and that economic growth would not likely happen until the end of 2009.  “The risks surrounding the central projection for growth are judged to be weighted heavily to the downside,” the Bank of England said.

And if you’d like to see some grandstanding today, make sure you don’t miss CNBC, as the CEOs from the nation’s leading banks appear before Congress.  And the typically brash and arrogant jet-setting CEOs were humble with all smiles today, with lots of love going to the government.  And one CEO stated the obvious.  Lloyd C. Blankfein, head of Goldman Sachs, noted:  “Many people believe — and, in many cases, justifiably so — that Wall Street lost sight of its larger public obligations and allowed certain trends and practices to undermine the financial system’s stability.”

Now, on to our real estate investing section…

Short Sales and Deflation

Is it going to be inflation or deflation? Maybe both. Whatever side of the fence you have been sitting on, short sales are likely to be the best solution for your financial survival. We have previously discussed the advantages of buying short sales and foreclosure real estate as an inflationary hedge but how does it hold up in the event deflation takes hold? Good question…and the facts might just surprise you.

First, it’s important to understand what deflation really is. Contrary to what some think, deflation is not merely a drop in prices – instead, it is actually a contraction if the volume of money relative to the goods and services available for purchase. Savvy short sale readers should immediately recognize two important considerations; the focus upon a contraction in volume and the inclusion of the word “relative”. This is why real estate tends to hold up very well in a deflationary cycle despite initial drops in price!

Remember, real estate is a lagging indicator of an economy. It takes time to access the raw materials, build a home and sell it. It takes even longer to do so when builders have stopped building, lenders have stopped lending and producers have discontinued orders for supplies.  Although the price of homes has dropped over the past 18 months, the current credit contraction is expected to be short lived especially considering the massive spending programs currently being implemented by the federal government.

Right now, the volume of real estate sales has dropped so there are more goods (ie, homes) on the market. As demand continues to decline, fewer and fewer suppliers will build new homes. Everything from drywall to bathtubs will experience a contraction of volume resulting in less production and fewer sales. Some will go out of business while others will merely stop producing all but the most common examples. Eventually it will cost more to keep the business open than is being produced resulting in shortages.

While the initial focus of a deflationary cycle is on the short term drop in prices, fewer people take a long term outlook and realize the very real long term shortages that are likely to transpire. Unlike prior deflationary episodes, “Just in time” manufacturing and shoe-string inventories are likely to result in a much faster cycle of shortages. It is these same shortages that begin to create upward pressures on needed and necessary items such as housing.

In a nutshell, the short sale investor is wise to understand the deflationary lifecycle in order to recognize premium purchasing opportunities:

1.      Debtors are forced to cover losses by selling assets; in this case, banks are unloading “bad loans” to the federal government who is assuming these losses and printing cash to prop up banks.

2.      The total value of assets begins to decline as debtors sell for any price just to raise required capital.

3.      Dropping prices begin to impact other supporting businesses; credit tightens and production costs increase relative to profits further escalating the problem.

4.      Bankruptcy and lay-offs take place exacerbates the problem while resulting in further declines.

5.      Production costs outstrip profits. Companies begin to close and supplies, raw materials begin to grow scarce.

6.      People begin to focus on safe affordable housing, food, medicine and other necessities.

7.      Shortages take place in earnest as the excess inventory is insufficient for current demand.

8.      Demand once again exceeds supply – driving the cost of goods higher. Those holding available tangible assets can demand – and receive – top prices.

See you at the top!

 

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html  

P.S.

This week’s webinar replay is right here…for the next 8 hours:

http://www.webinarwizards.com/custom/index.cfm?id=170879

P.P.S:

Wow! This just ranked as the most watched real estate
investor training video ever in a single day!

It’s pretty obvious why once you see it . . .https://commercial.infusionsoft.com/go/mmic/a181/

 

Check it out now.

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalescoach.com
http://www.shortsalesriches.com/welcome.html
http://www.youtube.com/shortsalesriches
*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…

http://www.shortsalesriches.com/blog
*************************************************

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 4 different
     offices, supporting nearly 450 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

 

{ 0 comments }

New Financial Stability Plan Announced

by Chris McLaughlin on February 10, 2009

 Real Estate News & Commentary by Chris McLaughlin, February 10, 2009
http://www.shortsalesriches.com/welcome.html

—-

“How to Exploit a Little Known Flaw in the Bailout
Package for a Six-Figure Payday!”  (But it’s only
good for the next 14 months…)

I don’t know why people haven’t caught on to this yet.
Because with this, you can forget fearing this recession,
and use it to your advantage instead! 

I’ll show you how, and it’ won’t cost you a cent. 

But there IS a catch – we fill up early, and there’s no
wait list.  And at last count, we only had 6 spots left for
tonight’s webinar that begins at 8:30 PM ET, 5:30 PST.
Go and grab one of these last openings NOW, or miss out.

https://www2.gotomeeting.com/register/202760525

—-
The Wall Street Journal reported today that banks will receive what doctors commonly refer to as a “stress test” before receiving additional money.  The short of it: if you aren’t healthy enough to lend, you might not receive any more government aid.  We’re not going to do surgery on a patient that won’t wake up.  Treasury Secretary Timothy Geithner said: “We want their balance sheets cleaner, and stronger. And we are going to help this process by providing a new program of capital support for those institutions that need it.”  But banks need to start lending, else they won’t be getting additional help, since “every dollar of assistance preserves or generates lending capital above the level that would have been possible in the absence of government support,” noted Geithner.

At least the new Treasury Secretary is more sensitive to public perception than his predecessor.  The “Troubled Asset Relief Program” will now get a nice fluffy new name: the “Financial Stability Plan.”  Ahh, I feel better already, don’t you??

Well, until I just continued reading the WSJ article, where it noted that RBC Capital Markets research shows that over 1,000 banks could go under in the next few years, which is triple its prior estimate.  But guess what?  Many of them should absolutely fail.   That’s how capitalism works, folks.  If a bank took unnecessary risk, and leveraged itself with bad assets, at some point the markets have to correct themselves and those that were in trouble need to be punished for being dumb, and those that made the right moves should be rewarded with increased market share in loans and deposits.  If not, then you simply create a moral hazard again where companies take unnecessary risk because they know Uncle Sam will come and bail them out again.

Meanwhile, last night there was a press conference that sobered up anyone sitting around drinking a few beers.  They got a douse of frank talk from President Barack Obama.  In a televised address, the new President did little to calm fears; rather he talked of the “profound economic emergency” our country faces.  The President that normally talks of hope was clearly tightening his message to the critics of his economic stimulus plan: “The plan is not perfect. No plan is. I can’t tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans,” he said.

Actually, Mr. President, many in the real estate trenches that have been living this recession and feeling the pain think that the House Democratic plan does little to stimulate housing demand and is full of so much pork that it could feed every human being on Earth with bacon from now until the end of time.  But the Senate plan, which at least includes at $15,000 tax credit for home buyers, will make some headway even if we want to waste billions on silly projects like putting new grass on the National Mall.   So what I can say with complete confidence is that if you don’t fix housing, you’re blowing billions of dollars trying to keep people employed who will just be out of work once the pork runs out.  Fix Housing First! ‘Nuf said.

Now, on to our real estate investing section…

What’s Better – Short Sales or Gold?

Historically gold has served as a store of value throughout most of history so it should come as no surprise it is a favorite among contrarian investors and those seeking a safety “hedge” against both inflation and deflationary pressures…but does gold really measure up to its reputation? Before putting their hard earned money into the hands of an ETF or placing big orders for bullion, short sale investors and others seeking real returns on their money would do well to evaluate the actual numbers – not just the hype. Let’s begin by examining a few facts:

During the last bout of major inflation, the average price of gold went from $41 per ounce in 1971 to over $610 in 1980 before reaching a high of $875 per ounce. Today, gold is selling for approximately $900 per ounce…a mere 50 percent increase in 29 years. Adjusted for inflation gold would need to be selling for $2,000 to $2,500 per ounce in order to reach its former high’s…clearly, not a solid investment for those seeking “safe” returns. On the other hand, in 1971 the average home sold for roughly $28,000. By 1980 the average selling price increased to roughly $75,000 and by 2006 the average American home was selling for over $240,000. Despite the recent downturn in the real estate market, homes are still selling (on average) for over $180,000.

To provide some perspective, in 1980 it required approximately 85 to 122 ounces of gold to purchase the average home in the United States whereas today you would need 200+ ounces of gold to purchase the average discounted home. Additionally, gold provides zero tax advantages when holding and depending upon the form, may be lost, stolen or require additional storage fees. On the other hand, real estate provides favorable tax advantages and may generate additional cash flow through rentals, leasing or sales of raw materials and assets included in the purchase price of the property.

Further complicating the issue is the advent of ETF’s (Exchange Traded Funds)  or other paper-backed gold proxies. Unlike taking physical possessions of gold, the use of ETF’s, gold stock and other substitutes may allow investors to take advantage of leveraging to increase profits while eliminating much of the storage issues surrounding gold however, the resulting “I.O.U.” negates much of the “safety” surrounding gold as an investment hedge. Real estate provides investors and opportunity to use leverage while taking physical possession of an actual tangible assets – not merely some type of I.O.U.. Even experts agree the amount of physical gold is nowhere near the sums required to fulfill even a fraction of the obligations currently outstanding; hence, the disparate trading between physical sales of gold versus paper gold sales in the recent months.

In summation, investors searching for tangible assets with real rates of return would do well to turn to short sales above gold especially during uncertain economic times.

See you at the top!

 

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html  

P.S.

This week’s webinar replay is right here…for the next 8 hours:

http://www.webinarwizards.com/custom/index.cfm?id=170879

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalescoach.com
http://www.shortsalesriches.com/welcome.html
http://www.youtube.com/shortsalesriches
*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…

http://www.shortsalesriches.com/blog
*************************************************

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 4 different
     offices, supporting nearly 450 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

 

{ 0 comments }

Keeping Track of Time to Improve Your Bottom Line

by Chris McLaughlin on January 20, 2009

  1. Market News & Commentary by Chris McLaughlin, January 19, 2009
    http://www.shortsalesriches.com/welcome.html

    ——
    Forget the headlines, 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 12 spots that we have left for our Tuesday webinar at 9 PM EST and 6 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/877086531

    ———

    President Barack Obama was sworn in on this historic day, as an estimated 2 million people gathered in Washington, DC to witness the first African American to hold the highest office in the land, as he was installed as the 44th President of the United States.  Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America: They will be met,” the new President stated.

    If your neighbor is a loan officer or banker with lots of their wealth tied up in their 401(k), today is unlikely to be as uplifting as it is for Democrats welcoming their new leader to the White House.  Banking stocks were absolutely hammered in early trading.  A brief recap at noon prices:

    Bank of America plunged 19.64% to 5.77.

    Citigroup slid 9.43% to $3.16

    J.P. Morgan Chase dropped 11.48% to $20.18

    Royal Bank of Scotland was down 11.21% to $10.30

    Regions Financial reported a record $6.24 billion dollar loss in its fourth quarter versus a $70 million dollar profit in Q4 2007.  “Although we’re encouraged by steps the government has taken to stabilize the housing market and revitalize the economy, there is no quick fix for credit quality issues currently plaguing the financial services industry,” Regions CEO Dowd Ritter said in a statement.

    State Street, a large money manager for institutions, indicated that it needed to raise additional capital and that its profit dropped 71%.  The company’s stock had a free fall today, plunging 49% to $17.97.

    Now on to our real estate education section…

    Back to Basics: The Numbers and Nothing but the Numbers

    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!

    Take action now:

     http://www.shortsalesriches.com/welcome.html

    And I really will… see you at the top!

     

    Chris McLaughlin

    http://www.shortsalesriches.com/welcome.html  

    P.S.: Be one of the 12 spots that we have left for our Tuesday night webinar TONIGHT at 9 PM EST and 6 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/877086531

    P.P.S.:  Our good friend Dan Stojadinovic always
    talks about how specialized knowledge
    is one of the critical aspects of becoming
    successful as an entrepreneur, but did you
    know that your specialized knowledge can
    be sold online, and not just your
    specialized knowledge, but anyone’s
    specialized knowledge, and some of
    Dan’s students are making a 6-figure income
    and higher using principles he teaches? 

    First check out the tip we shared,
    but also make sure you log in and
    find out what Dan is teaching everyone:

    http://learninfoproducts.com/NathanJurewicz

    Copyright Loss Mitigation Institute 2009.

    All Rights Reserved.

    http://www.shortsalescoach.com
    http://www.shortsalesriches.com
    http://www.sevenfigurereo.com (sold out!)
    http://www.youtube.com/shortsalesriches
    *************************************************
    Finally, a blog for Real Estate professionals
    that want up-to-the-minute news, & how it impacts
    us and our market…

    http://www.shortsalesriches.com/blog
    *************************************************

    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

     

{ 0 comments }

Construction Spending Drops, Black Friday Shoppers Solid

by Chris McLaughlin on December 1, 2008

Mid-Day Market News & Commentary by Chris McLaughlin, December 1, 2008
http://www.shortsalesriches.com/welcome.html
——
It isn’t about what the economy is doing … it is about how you respond to it! Can you imagine that there’s a way to actually make tons of money in this market, literally a recession-proof investment strategy? Yes, you don’t need capital. You don’t need good credit. You just need a plan. And we’re gonna show you that plan, on Tuesday night. But there are only 50 spots available, so grab yours now:

Recession Proof Investing Webinar (Tuesday, 9 PM EST, 6 PM PST):
http://www.recessionproofinvestingwebinar.com  
—–
The financial markets were jittery this morning after the Institute of Supply Management index of manufacturing activity dropped to 36.2 in November from the reading of 38.9 in October. The drop represented the lowest reading in 26 years, spooking investors who for the most part were pleased with reports that holiday shoppers were buying.

ShopperTrack RCT, a firm that tracks sales for over 500,000 retail outlets, indicated that sales rose 3% to $10.6 billion compared to the Black Friday in the year ago period.

Around noon the Dow Jones Industrial Average was off 371.40 to 8457.64 and the Nasdaq was off 79.14 to 1,456.43.

The U.S. Department of Commerce announced today that construction spending dropped 1.2% for the month of October, a larger decline than the .9% many analysts had expected. Housing construction dropped by 3.5%, a larger drop than the decline of .5% in September. Most analysts attribute tightening credit as the leading factor causing the declines.

And in good news for drivers…national gas prices are now $1.82 a gallon, a price not seen since January 2005. This “energy dividend” is likely to assist many companies that were struggling with higher fuel costs. But for those interested in real estate, let’s hope this doesn’t mean buyers want to drive around to even more homes!

And finally, for the political junkies reading this…Senator Hillary Clinton officially was nominated by President Elect Barack Obama to be his Secretary of State. Obama is keeping Defense Secretary Robert Gates and nominated retired Military General Jim Jones to serve as National Security Adviser.

Now, on to our real estate investor education section…

Indicators and Indices: Information You Need to Know

There are two types of investors in this world: those that follow the masses and those that remain independent. Guess which type typically makes the most money? While many investors that go against the common trend of the day are considered contrarian investors, a more apt description may simply be “informed”. Given the recent melt-down hitting Wall Street and Main Street, only those that have a true understanding of current events will have the stamina, rational and readiness required to profit while others panic.

To that effect, one bit of information every short sale investor needs to know is how to “read” these common indicators and indices. While no single index is able to provide a full picture of current events, taken together the information is useful to demonstrate trends in the market. Here are a few lesser known indices to keep an eye on in the coming months:

Barron’s Confidence Index. Experts tend to think of bond investors as a bit more sophisticated and savvy than stock traders (in general) and therefore able to identify stock market trends earlier. This weekly indictor is not as well known to the common investor but eagerly tracked by “those in the know”. The index divides Barron’s 10 top-grade corporate bonds by the yield on the Dow Jones 40 bond average. Because top grade bonds have a lower yield than lower-grade bonds the index is always below 100 with an average range between 80 to 95; this week – the end of November 2008, it sits at 46.4 as compared to 78.8 only a year ago.

Tip: Most analysts believe there is a “lag-time’ between Barron’s Confidence Index and what stocks will be doing in 3-6 months. Expect the “flight to safety” to continue into early next year and keep an eye out for future reversals.

OFHEO Price Index. The Office of Federal Housing Enterprise Oversight publishes data of major interest to every short sale investor or real estate professional. The most recent data released on November 25th, 2008 shows home prices continued to slide during the past summer by an average of 6.0. However, since the cost of other goods and services increased by 6.7 percent, the inflation adjusted rate of decline actually approached 13 percent over the past year. Despite this dismal news, some states actually showed an increase including North Dakota (4%), South Dakota (3.9%), Texas (3.2%), Alabama (2.8%) and Oklahoma (2.8%).

Tip: The OFHEO utilizes Fannie and Freddie data to derive its data; obviously, given the recent government intervention into these programs the data may be skewed and does not reflect transactions outside of these quasi-governmental programs.
Index of Bearish Sentiment.

Although this index not housing specific, it can provide a useful tool for tracking trends in the general financial and/or economic environment. In a nutshell, this index provides a means of tracking reversals of official recommendations; ie, when the investment advisory service recommends a specific action then it is time to do the opposite.

So for example, if there are 200 total investment advisory services and 100 are bearish then the index would show 200/100 = 50%. This index is used to track the future trends of investors by using a contrarian perspective. When 42 percent or more are bearish then the market will go UP. When 17 percent or fewer are bearish the market will go DOWN.

Tip: Real estate investors can use this as a quick gauge to measure contrarian sentiment in their own markets or as a sub-set of REIT’s, builder stock etc…remember, investor advisory services follow trends rather than make them since by definition, they tend to report on what has happened in the market.

More on Tuesday!

See you at the top!

Chris McLaughlin

P.S.:

If you have the chance make sure you jump on this link now, to get the insight into why the foreclosure market is going to be THE PLACE to invest:

http://www.shortsalesricheswebinar.com  

Don’t miss it – everyone that has watched it says it is perhaps the most useful tool in understanding what’s going on in the real estate market, and how to make money in today’s environment.

P.P.S.: Join us for our next webinar, this Tuesday, December 2nd at 9 PM EST/ 6 PM PST:

A Recession Proof Real Estate Investing: Making Money in ANY Economy!

We’ll show you how to make money with no credit, no capital, and no holding costs! Think we’re crazy? Find out now!

http://www.recessionproofinvestingwebinar.com  

We’re limiting the webinar to 50 registrations to give individual attention to those who join … so jump on this link to register:

http://www.recessionproofinvestingwebinar.com  

{ 0 comments }