Smart Real Estate News & Commentary by Chris McLaughlin August 24, 2010

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Existing home sales plunge 27%

Today’s report from the National Association of Realtors (NAR) shows that purchases of existing homes plunged 27.2 percent to a 3.83 million annual rate. The pace compares with the median forecast of a 4.65 million rate, according to a Bloomberg News survey.  The number of previously owned homes on the market rose 2.5 percent to 3.98 million. At the current sales pace, it would take 12.5 months to sell those houses, the highest since at least 1999 and compared with 8.9 months in June. The months’ supply of single-family homes at 11.9 months was the highest since 1983, NAR said.  Sales last month fell in all four U.S. regions.  Foreclosures are boosting the so-called shadow inventory, and competing with owners trying to sell properties.

Home seizures increased almost 4 percent in July from the previous month, with 325,229 properties last month getting a notice of default, auction or bank repossession, RealtyTrac Inc. said Aug. 12.  Residential real estate may keep struggling for the rest of this year, while into “2011 and beyond, it is difficult to determine,” Richard Dugas, chief executive officer at Pulte Group Inc., said in an Aug. 20 interview with Bloomberg Television. Pulte is the largest U.S. homebuilder by revenue.  “Demand is low across the country,” Dugas said. “You have record-low interest rates and excellent pricing, but consumer confidence eased. We really need the economy to improve and job creation to take hold before people feel comfortable stepping into a home.”

Credit card fees up

According to the market research company Synovate, the average interest rate on existing cards jumped to 14.7% last quarter, up from 13.1% a year earlier.  The jump created a dramatic spread of 11.45 percentage points between the average credit card interest rate and the prime rate — the largest margin in 22 years, according to Synovate.  Synovate study director Lauren Guenveur said the increase in interest rates was driven primarily by the Credit Card Accountability Responsibility and Disclosure Act of 2009. She said the so-called CARD Act gave credit card companies a limited amount of time to raise rates, “before they could no longer do so freely.” This put pressure on issuers to aggressively raise rates, she said.  Guenveur added that the recession and nation’s high unemployment were also driving the increase, because it was causing the default rate to go up.

“This is largely due to consumers still charging on their credit cards, but being unable to pay,” she said. “Default rates should remain high as long as unemployment remains high.”  Synovate reported that credit spending has increased, on average, by 6% in the first half of 2010 to $1,559, but still falls short of third quarter 2008 numbers, which Synovate describes as “the quarter prior to the financial meltdown.”  Offers for new cards reached a fever pitch last quarter. U.S. households received 640.3 million credit card offers in the second quarter, a surge of 83% from 349.1 million offers during the same period last year.  “Issuers are desperate to lock-in customers with good credit, so they will mail many offers to these households in order to gain their attention,” Guenveur said.

Real estate rip-off?

Many condo and townhouse dwellers are already familiar with resale fees — a fee due to the condo association or community when an owner sells. These charges fund common-area maintenance or provide a boost to reserve funds, which benefits the association’s homeowners.  But now, in some new developments, homebuilder contracts are including a 1% fee to be paid to them every time the house is sold — for 99 years. And the money doesn’t go for improvements or upkeep: It’s just money in the builders’ pockets.  That has the real estate industry and consumer protection groups up in arms. 

“It’s of no benefit to consumers,” said Kathleen Day, of the Center for Responsible Lending. “It’s another innovative way to price gouge. Every extra dollar they suck out of people’s wallets takes away from other spending. It’s not good for the economy.”  The issue has attracted the attention of Washington, where Rep. Brad Sherman, D-Calif., is leading a charge against the fees. “Consumers are not in a position to deal with another level of complexity, one that pits plain vanilla homes against ones that come with fees,” he said.  A coalition of real estate industry organizations and community groups recently sent a letter to Treasury Secretary Tim Geithner recommending that he not allow Freehold’s securitization plan to go forward.

It’s time to put grownups in charge

U.S. House Republican leader John Boehner is calling for the resignation of President Barack Obama’s entire economic team, including Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers.  “It’s time to put grown-ups in charge. It’s time for people willing to accept responsibility,” Boehner declared in remarks prepared for delivery in a speech in Cleveland.   “President Obama should ask for—and accept—the resignations of the remaining members of his economic team, starting with Secretary Geithner and Larry Summers, the head of the National Economic Council.” 

Bad U.S. economic data last week heightened concerns about a return to recession. Claims for new unemployment claims rose to a nine-month high and manufacturing activity in the U.S. mid-Atlantic region unexpectedly contracted.  Boehner has been a leading critic of Obama’s agenda, including his overhaul of the U.S. healthcare system, tightening of regulation on the financial industry and what Republicans’ denounce as his failed economic stimulus plan.  If Republicans take control of the House, he is in position to be elected as speaker, a post that would make him the chamber’s presiding officer and in charge of setting its agenda.

Stay away from MBS

Bank of America Merrill Lynch (BofAML) recommends investors remain underweight in agency mortgage-backed securities (MBS) although a widening of the option adjusted spread indicates otherwise.  Chris Flanagan, MBS/ABS strategist at Bank of American Securities, said the “continued bull flattening of the yield curve is the elephant in the room for agency MBS.”  Normally a widening of the option adjusted spread “makes the sector appear attractive,” but Flanagan said this “does not account for the substantial risk that we are on the cusp of a classic Fed-induced refinancing wave, where the magnitude of the wave once again surprises the MBS market to the upside and mortgages underperform.”  And an early indicator of this risk is this week’s break above 4000 in the Mortgage Bankers Association’s (MBA) refinancing index, according to BofAML. 

“Moves higher would be slower and more gradual than in the past, but we think investors should not underestimate the potential to move higher,” Flanagan wrote in the firm’s MBS: Securitization Weekly Overview.  Flanagan said with the Fed indicating the current ZIRP rate will remain in place for awhile, any flattening in the yield curve would require “a further, and still major, back-end rally.” And “by major, we mean something on the order of at least 100-150 bps,” he said.  “While we can think of a few, very good reasons that this scenario might play out,” Flanagan wrote. “We need to be clear that we are not making a rate call here. We are simply highlighting this as an asymmetric risk scenario for mortgages.”

Now for our real estate education section.. 

Does Your Marketing Use a Microphone or Megaphone?

Let’s face it, if you are like most real estate agents or investors, chances are your Internet marketing efforts either resemble a microphone or a megaphone. Both get the word out, but one does it a lot more effectively than the other. Find out if your message is loud and clear with this quick quiz:

1.Hub versus business card. Is your website a one stop shop for everything related to real estate in the area or a glorified business card?

Tip: A glorified business card may be sufficient for some endeavors but real estate is all about relationships. Even if someone isn’t able or willing to do business today, they might be tomorrow. Even more importantly, they probably know someone else who is ready to wheel and deal. Make your online presence felt by providing the information and tools needed to establish a long term relationship; become a central hub for communication.

2. Look Who’s Talking. What you say isn’t as important as what others are saying about you!

Tip: Find out what your reach is with social media and other websites. What good does it do to have a website if people aren’t sharing information with others? Make it simple to share and take the time to monitor what is being said about you from time to time.

3. Check the Pulse. Does your website even have a pulse?

Tip: Many people have no idea where their website or blog ranks, how many visitors they have or even who bothers to visit. Sign-up for some basic tracking software that provides some insight into who is visiting, when and what they are reading…then provide some more of it to keep them coming back. Add an RSS or other feed to allow users to get automatically updates without having to repeatedly visit.

4. What’s Your Grade?

Tip: If you have no idea where you measure up, visit www.website.grader.com (free) and www.37signals.com to see important details about your site or find terrific tools that are simple to use and have already been evaluated by others. Remember, the actual number of visitors isn’t as important as the sharing of information and long term relationships built online.

Make it easy for prospective clients to find you by expanding your total reach through a combination of blogs subscribers, social media websites, links to your site and of course…city specific keyword content.

See you at the top!

Chris McLaughlin
**************

Copyright Loss Mitigation Institute LLC 2010.

All Rights Reserved.

http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches 

http://www.smartrealestatenews.com (subscribe to this newsletter)

*************************************************
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 reselling of distressed homes.  Owns
      portfolio of nearly 100 high-value, high-profit
     properties
    * Owner of one of Florida’s largest Real Estate firms,
     running 4 different offices, supporting over
     400 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
    * Follow me on Twitter: http://twitter.com/mclaughlinchris
    * Join my Facebook Fan Page: http://www.mclaughlinchris.com
–

Mortgage rates rise for second straight week

Real Estate News & Commentary by Chris McLaughlin, July 31, 2009

http://www.shortsalesriches.com

* Follow me on Twitter: http://www.twitter.com/mclaughlinchris
“Lazy Person’s Way to Pre-Foreclousre Riches”

Since putting this system to work instead of me, I’m

slaving away at the beach with sun screen on my arms,

and my cell phone at my ear for a full, uh, 20 hours

a week.

Life’s not so tough when others willingly do your work.

And the earnings?  Out of this world!  See how I do it

anywhere I want from my iPhone… and it won’t cost you

a cent:

https://www2.gotomeeting.com/register/341684874

Mortgage rates rise for second straight week

According to Freddie Mac, the average 30-year mortgage rate rose to 5.25% this week from 5.2% last week. Last year at this time, the mortgage rate averaged 6.52%. The mortgage rate has risen from a record low of 4.78% earlier this year on account of a rise in Treasury yields. The yield on the benchmark 10-year Treasury is currently hovering at 3.70%. “Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed those yields,” said Frank Nothaft, Freddie Mac’s chief economist.

Rates on 5-year, adjustable-rate mortgages averaged 4.75% this week while rates on 1-year, adjustable-rate mortgages averaged 4.8%. The rates do not include add-on fees. Analysts say that a further rise in mortgage rates does not bode well for the housing market which is struggling to get out of slump. The Federal Reserve has set a goal to buy up to $1.25 trillion of mortgage backed securities, $300 billion of Treasury securities and $200 billion of agency debt in 2009. The purchases, which are more than half-way completed, are aimed at lowering borrowing costs for homeowners.

IRS warns against homebuyer tax credit fraud

The Internal Revenue Service (IRS) has carried out the first prosecution related to fraud in the homebuyer tax credit program. A tax preparer based in Jacksonville, Fla. has pled guilty to falsely claiming the $8,000 first time homebuyer tax credit on a client’s tax return. The preparer’s client either didn’t buy a home or they didn’t qualify for the credit. Experts advise taxpayers to use services of reputable tax preparers.

Taxpayers are ultimately responsible for the accuracy of their return whether they prepare it themselves or use services of a tax preparer. Fraudulent returns may result not only in payment of back taxes but also in penalties and interest. “We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”

The economy shrinks at a slower pace in the second quarter

According to the Commerce Department, the U.S. economy contracted by 1% in the second quarter of 2009, after dropping 6.4% in the prior quarter. Economists are seeing signs of recovery but are concerned about lack of consumer spending. “We’ve definitely turned the corner but it’s going to be a slow, agonizing recovery,” said John Silvia, chief economist at Wells Fargo Securities. “We’re just not going to get the job growth that politicians promised and people expect. The consumer doesn’t want to spend a lot.”

Companies have been reporting encouraging financial results in the second quarter of 2009. Analysts say that the stimulus spending by the government doing its bit for economic recovery, however, unemployment continues to be a cause for concern. “The United States economy has found bottom but will be slow in recovering as unemployment continues to be a drag on consumer spending,” Andrew Liveris, chief executive officer of Dow Chemical. The economy has lost 6.5 million jobs since the recession began in December 2007.

“Cash for clunkers” program so popular that it has run out of money

The Car Allowance Rebate System (CARS), also called “cash for clunkers,” is a program that offers car owners a subsidy up to $4,500 if they purchase cars and vans that are more fuel efficient than their older cars. The program is so popular that it has run out of cash within the first week of its introduction. The Transportation Department has asked auto-dealers to stop taking applications under the program. Robert Gibbs, the White House press secretary, said: “We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored.”

Analysts say that car sales will reach a 2009 high in July account of the program. “The incentives coupled with already high car company discounts have put a new automobile within reach of consumers that would have shopped for a used vehicle,” said Joe Barker, an analyst at consultant CSM Worldwide. Dealers have submitted applications on behalf of consumers seeking rebates on about a quarter-million vehicles. “Two hundred and fifty thousand vehicles in four weeks?” said Bailey Wood, a spokesman for the National Automobile Dealers Association. “One word comes out of my mouth: Wow.”

Credit card companies defend use of arbitration

Credit card companies view arbitration as a method to avoid going to court and consequently reduce legal costs. Credit card companies include an arbitration clause in their agreements with consumers which waives a card holder’s right to sue. The Obama administration proposes to ban arbitration clauses in credit card agreements in order to strengthen consumer protection. Card issuers are opposed to the proposal. “Arbitration is a valuable way for consumers and businesses to resolve disputes in a very low cost and fair manner.

Take it away and consumers will suffer,” said Kenneth Clayton of the American Bankers Association. Consumer advocates disagree with this view-point. A study by Public Citizen shows that credit card companies do not enlist the arbitrators who rule against them. According to the Public Citizen report, among cases with an arbitrator appointed by the National Arbitration Forum, 94% resulted in decisions which favored the business. John Ulzheimer, president of consumer education for Credit.com, says a ban on arbitration clauses will expose banks to costly lawsuits and ensure that banks follow the new credit card regulations.

Now on to our real estate investor education section…

GeoDemographics 101 for Short Sales Success

Never heard of geodemographics? Don’t worry, you probably aren’t alone. However, despite the rather convoluted label, the essential information contained in this incredibly powerful tool is able to take your short sale investments to the next level. Think of it like direct marketing on steroids. Geodemograpics allow you to locate your target population with near surgical precision then tailor a custom-made marketing message designed to elicit top results. Before we get into the tools of the trade on how to get started using geodemographics, it’s important to understand a few facts:

1. Locating the right clients is the first step in success. Negotiation, sales and closing the deal all come later but will never matter as much as the ability to locate the “hot targets” before the competition.
2. There are over 250,000 neighborhoods in this nation with an average of approx 280 households per neighborhood. Locating your niche allows you to concentrate a message that appeals to your target market with the highest possible “conversion” rate.
3. Geo = location + Demographics = Population Data. Learn how to use data about the given population of each neighborhood in order to design and refine your message.

So, what are the basic steps to performing geodemographic research? It’s actually fairly simple once you know how. Begin by estimating the size and composition of your target area. Age, gender, marital status and life-status (retired, single, family etc) all provide important insight into what is important to them and what they will likely be searching for in terms of real estate. Excellent sources of neighborhood data are available for free at www.census.gov or by calling your local HUD office. Commercial resources include www.claritas.com, www.maponics.com or http://bp.mlsli.com/neighborhood.htm.

Next, design and refine a message created specifically for your target market. It should be engaging and effective. Start with several versions to determine which garner the most response – once you find out what works, stick with it!

Property designed geodemographic research can tell you all about your target audience including where to meet them, where they most often eat out (McD’s or true gourmet), where they shop and even other influential networking opportunities with service providers such as accountants or tire shops. Imagine how nice it would be to grab the best clients simply by printing up placemats for a local diner or handing out business cards at a local dry cleaner. Believe it or not, these were exactly the types of networking and marketing activities that tend to yield the best results when combined with highly targeted and effective data.

Finally, use a feedback loop to further refine and clarify both needs and opportunities as you collect more data. Remember, whether you sign or not, all information is important. Eventually you will develop a clear picture of the personality profile of those most likely to seal a deal, walk away or refer others.

See you at the top!
Chris McLaughlin

http://www.shortsalesriches.com

Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

http://www.shortsalesriches.com

http://www.shortsalescoach.com

http://www.sixfigurebpo.com

http://www.reomillionaireclub.com

http://www.youtube.com/shortsalesriches (Watch out latest video!)
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 reselling of distressed homes.  Owns
portfolio of nearly 100 high-value, high-profit
properties
* Owner 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
* Follow me on Twitter: http://twitter.com/mclaughlinchris
* Add me on Facebook: http://www.facebook.com/mclaughlinchris

Mortgage applications drop to near 7-month low

Real Estate News & Commentary by Chris McLaughlin, June 17, 2009

http://www.shortsalesriches.com

“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 live Thursday night at
8:30 PM ET, 5:30 PM PST:

https://www2.gotomeeting.com/register/502677691

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/502677691

Mortgage applications drop to near 7-month low

According to the Mortgage Bankers Association, its Market Composite Index, a measure of mortgage loan application volume, decreased 15.8% last week on a seasonally adjusted basis, from a reading of 611.0 a week earlier. A sharp rise in mortgage rates in the last few weeks has sapped demand for housing loans. Last week, the 30-year fixed-rate mortgage, excluding fees, averaged 5.50%, down 0.07% from the previous week, but higher than the all-time low of 4.61% in March this year. “When rates move in volatile swings like this, it is critical (that) borrowers look for competitive rates — competition in this environment keeps mortgage companies honest,” said Cameron Findlay, chief economist at LendingTree.com. Refinancing activity dropped, 23.3% last week from the earlier week. Kevin Walker, CEO of MortgageReport.com, said homeowners with adjustable-rate mortgages will be particularly hit because of their impending re-set dates approaching, just as rates are trending higher.

Mortgage modification program off to a slow start

The Obama administration introduced the Making Home Affordable program in March to allow troubled borrowers to lower their mortgage rate to as low as 2%. While experts believe that the program holds a lot of promise, it is yet to take off. People who have applied for help under the program have not heard if they will receive it. In New York, The Center for New York City Neighborhoods, a public-private agency, has facilitated 400 applications for the Making Home Affordable program. So far, only 100 of those mortgages have been modified; the rest are pending with the lenders, with many applicants waiting more than 60 days for a response.

“The promise of this program is enormous,” said Rafael Cestero, the commissioner of the Department of Housing Preservation and

Development in New York. “It’s a brand-new program and it’s a very complicated issue, but we all share the feeling that it’s been moving too slowly.” Treasury Department says it is doing its best to expedite the process. Meg Reilly, a spokeswoman for the Treasury Department, said the department is “establishing a hotline for homeowners, looking for new tools to expedite this process, working with communities to get the word out about resources available to homeowners.”

Demand for bankruptcy judges

As the number of bankruptcy cases increase amid the recession, courts are finding it difficult to keep pace. Bankruptcy filings have been rising steadily, at 38% from 2006 to 2007 and 31% from 2007 to 2008. “In the 12-month period ending March 31, 2009, there were approximately 1.2 million bankruptcy petitions filed — nearly double the number of petitions filed in 2006,” said Barbara Lynn, chair of the bankruptcy committee of the Judicial Conference of the United States. Judge Lynn appeared before the House Judiciary Subcommittee on Commercial and Administrative Law in support of the Judicial Conference’s 2009 bankruptcy judgeship recommendations. “Our judicial resources are strained,” Judge Lynn said. “And the cost to society of an overburdened bankruptcy system, especially in this economic climate, is enormous.” The Judicial Conference has urged Congress to create 13 additional permanent bankruptcy judgeships, convert 22 existing temporary bankruptcy judgeships to permanent, and extend 2 existing temporary bankruptcy judgeships for 5 years. According to the Federal Judicial Center, an education and research center for the federal courts, there are currently 324 bankruptcy judgeships in the country.

Card companies settling for less on delinquent accounts

Hit by rising defaults, credit card companies are changing their internal guidelines to salvage whatever they can from delinquent accounts. According to analysts, default in credit card portfolios could cross 10% this year, amounting to a loan loss of $70 billion. Card companies, which have traditionally scorned at cutting deals with customers, are looking at the option of salvaging something as against losing everything. During boom time collection agencies were interested in buying delinquent accounts from card companies for as much as 15 cents on the dollar. When the economy boomed even those with a high level of indebtedness could pay something. In this recession, credit card companies can hope to get just about 5 cents on the dollar for delinquent accounts. “Now it’s the card company calling you and saying, ‘Let’s talk turkey,” said David Robertson, publisher of the credit industry journal The Nilson Report.

Recovery? What recovery?

While we eagerly look for “green shoots” to spot signs of economic recovery, some economists see “yellow weed.” Nouriel Roubini, the head of economics research firm RGE Global Monitor, said currently there are few engines of economic growth given that consumers are tapped out. “In addition to green shoots there are also yellow weeds,” said Roubini. Roubini believes that the fiscal stimulus plan is inflationary and could lead to negative economic cycles similar to what the world saw in the 1970s.

Roubini said the Federal Reserve completely missed the magnitude of the credit crisis when it unfolded but eventually become “creative” and “aggressive” to limit the damage due to credit debacle. According to Brian Fabbri, chief U.S. economist at BNP Paribas, even if the economy recovers, it will not amount to anything significant. Fabbri expects unemployment to reach 11% by next year and hence consumers will not have much to spend. “I think we’re going to wind up with an anemic decade,” said Fabbri.

Guess what? If Fabbri is right … it is time to get started in real estate investing. The only bail out you’re gonna get is your own …

Now on to our real estate investor education section…

The Sights & Sounds of Short Sale Success

Advertisers know what makes the average buyer tick so learn how to position properties for profit using the same techniques. It’s not as hard – or as expensive – as you might imagine once you understand the how and why behind the magic.

The Scent of Money – Every smell a dollar bill? It has a distinctive odor that most people eventually learn to associate as pleasant. The same goes for a new car and even books. In fact, the sense of smell is often associated with specific products and for good reason – it’s able to elicit powerful emotions. So, how can you use this to sell a home for more money? Baking cookies only works for family oriented homes or those with a nostalgic touch. You may want ozone for homes with a great mountain view; try sea salt (hint – use a salt lamp) for a home or condo within walking distance to the ocean and use an earthy musk or pheromones for a bachelor pad.

Use Attractive People – Yes, sex really does sell so make sure the people in any advertisement are attractive and targeted to your age group! If you are buying or selling properties in a retirement village get a good looking but older “model”; likewise, pay attention to the ethnicity, age and gender of your target audience and make sure it’s reflected in all flyers, website or other marketing material. People tend to pay attention to those that look like themselves so don’t over-do it…putting a picture of an expensive car in the driveway of someone that owns a Honda will only make them feel out of place.

Small Improvements Matter – How many times have you bought the latest and greatest gadget simple for a relatively minor upgrade? Face it – advertisers know it works. They release the base model first then charge for upgrades or other versions to differentiate from the pack. Make sure to add a few personalized or unique touches to each property even if it is a home in a cookie cutter subdivision. Those minor changes can add up to big profits by making the home feel special and different. Don’t forget to really advertise that fact rather than take it for granted!

Welcome to your Life – Selling a home for top dollar doesn’t just mean showing buyers a place to store their stuff and sleep at night; instead, introduce them to their new (and improved) life. Think it’s impossible because the home is in a working class neighborhood? Emphasize family and friends with affordable lifestyle. Suburban blight your big problem?

Focus on the convenience and upward mobility afforded by the sprawl. Those fortunate enough to face homes with character, charm or other unique situations simply need to find out why those that desire to live in the area think it has to offer – remember, even if you don’t agree chances are someone does. Paint a picture of how the property offers a lifestyle they will love and keep your own ideas to yourself.

The Sound of Prosperity – Ideas on what constitutes good music about but one thing almost everyone agrees upon is the sound of cool, hard cash.

Translated into short sales, that means eliminating negative sounds especially during initial showings. Don’t try to second guess what they might like; nothing is more annoying that music or other sounds you don’t like (or volume); instead, simply focus upon removing all distractions by providing a source of white noise or silence.

———

See you at the top!

Chris McLaughlin

http://www.shortsalesriches.com

PS:

“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 live Thursday night at
8:30 PM ET, 5:30 PM PST:

https://www2.gotomeeting.com/register/502677691

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/502677691

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalesriches.com

http://www.shortsalesrichesturbocharged.com (SOLD OUT)

http://www.shortsalescoach.com

http://www.sixfigurebpo.com

http://www.reomillionaireclub.com

http://www.reoempire.com (NEARLY SOLD OUT)

*************************************************
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 reselling of distressed homes. Owns
portfolio of nearly 100 high-value, high-profit
properties
* Owner 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
* Add me on Twitter: http://twitter.com/mclaughlinchris
* Add me on Facebook: http://www.facebook.com/mclaughlinchris

 

 

Real Estate News & Commentary by Chris McLaughlin, April 21, 2009
http://www.shortsalesriches.com/welcome.html

——–

No money, no credit – but an honest desire to succeed? 

That’s all it takes to get into the lucrative business of

finding and flipping short sale properties.  We’ve had

people go from zero to six figures in less than six months! 

 

See if there’re any spots left for this webinar this

tonight at 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/530620442

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PPIP comes under fire

Inspector General Neil Barofsky, a fierce skeptic of the bailout schemes, has come out with an official report expressing concern over Tim Geithner’s Public-Private Investment Partnership (PPIP).  In a report issued today, the report said “The sheer size of the program ($2 Trillion) … is so large and the leverage being provided to the private equity participants so beneficial, that the taxpayer risk is many times that of the private parties, thereby potentially skewing the economic incentives.”  Under plans unveiled by Treasury, for every $1 of private investment, Treasury would invest $1 and could provide another dollar in a nonrecourse loan. That money could then leverage a loan from another government fund backed mostly by the Federal Reserve, a step that Barofsky said would dilute the incentive for private fund managers to exercise due diligence.  Barofsky recommended that Treasury not allow the use of Fed loans “unless significant mitigating measures are included to address these dangers.”

 

Credit Card rules are a changin’

President Obama will meet on Thursday with administration officials and credit card company executives to press CEOs to adopt practices designed to protect consumers.  In the meantime, existing legislation, designed to ban card companies from abruptly jacking up interest rates and fees and prevent young adults from getting credit cards, will be going ahead in Congress.  But even if Congress doesn’t pass the legislation, Federal Reserve rule changes set to kick in next year would stop higher interest rates from being imposed when consumers are late paying unrelated bills.  The changes also stop companies from averaging finance charges from two previous cycles, a practice that dings consumers who carry a balance and pay it off.  This year, credit card legislation made it out of a Senate committee, but just barely, by 12-11.  The Senate bill is even tougher than the House bill, preventing credit card issuers from raising interest rates and fees even if the consumer’s general credit risk goes up.  A top industry advocate, Scott Talbott of the Financial Services Roundtable, said that if credit card companies can’t charge fees and interest based on general risk, all card holders will have to pay more because customers with good credit scores will have to subsidize those with weaker credit scores.  “It’s going to reduce credit and make it more expensive for everyone,” he said.  “That’s not what we need for the financial markets.” 

 

Leading economic index down .3%

The Conference Board’s Leading Economic Index declined 0.3% last month, showing the recession may persist through the summer.  The drop was steeper than the 0.2% analysts polled by Reuters were expecting.  It also fell 0.2% in February, which was originally reported as a 0.4% drop.  Over the last six months, the index has fallen 2.5%, compared to the smaller 1.4% drop for the previous six months.  The Coincident Index, a measure of current conditions, fell for the third month in a row, by 0.4%, primarily due to declines in employment and industrial production.  The Lagging Index, which provides a glimpse backward, has been on a downward trend since July 2007, the Conference Board said.  Its 0.4% decline in March was caused by weakness across all of its components, which include duration of unemployment, inventory levels, and outstanding loans.  “The recession may continue through the summer, but the intensity will ease,” said Ken Goldstein, an economist at the Conference Board.  Hey, where have we heard that before? 

 

More cash for car companies

An independent oversight report on the Treasury Department’s corporate rescue fund said the Obama administration will extend $500 million to Chrysler through the end of April as it tries to reach an alliance with Fiat, and up to $5 billion through May to help General Motors restructure outside of bankruptcy.  The UAW, which represents about 26,000 workers at Chrysler and 62,000 at GM, and is under pressure along with bondholders and banks to help Chrysler and GM slash debt so they can restructure.  The central issue for the UAW and the car companies is reaching an accord on restructuring the finances of a multi-billion-dollar retiree health care trust.  GM said on Monday it would cut another 1,600 salaried jobs by May 1, as part of a plan to slash its global salaried work force this year by about 10,000, or 14 percent.  GM also aims to cut 37,000 hourly jobs worldwide by the end of the year.

 

Bailout fund running low?

Only $109.6 billion in resources remain in the government’s $700 billion financial rescue fund, but Treasury Department officials said they expect the fund will be boosted over the next year by about $25 billion as some institutions pay back money they have received.  Geithner said the Bush administration had committed $355.4 billion in resources before it left office, and the Obama administration has since committed an additional $30 billion to AIG and $5 billion to auto suppliers, bringing the total for what the administration termed “exceptional assistance” to $152.4 billion.  Another $218 billion has been committed to banks to bolster their capital reserves.  So far, that program has disbursed nearly $200 billion to more than 500 banks nationwide with more applications pending.  Former Treasury Secretary Henry Paulson had once set a goal of having $250 billion disbursed to banks.  Oh well, if we run out of money we can always just print more, right?  It’s all the rage.

 

Now on to our real estate investing education section…

 

Fortunes, Freedom and Fear – The Time are a Changing

 

The line it is drawn
The curse it is cast
The slow one now
Will later be fast
As the present now
Will later be past
The order is
Rapidly fadin.
And the first one now
Will later be last
For the times they are a-changin.

Bob Dylan

 

While the media continues to report the decline of real estate, the rising vacancy rates among commercial holdings and the trend toward lower returns on rentals or other investments, short sale investors are still managing to bring in big bucks. Given the ultra-low returns on dollars, stocks, bonds and other traditional investments one would wonder why the American public hasn’t taken a second look at historically low interest rates and realized a correction will take place sooner or later.

Amazingly, it’s simply because they don’t truly believe in change. Most American’s today believe the buy and hold strategy of faithfully putting away a few dollars for a rainy day will fund a decent lifestyle. Work at a job and start a 401-k to assure an easy and comfortable retirement. Let stock brokers and fund managers handle your hard earned money for you…like Madoff and others who “know best” what how to best put your money to work.

 

Rather than profit from the time-tested value of land and real estate, they would rather take a chance on “buy and hold” stocks and bonds. Indeed, rather than think for themselves or open their eyes to the massive challenges facing the nation as a whole, they would rather leave their future retirement and the lives of their children to the provision of Uncle Sam. Unfortunately, history tells us this is not the road to wealth – few governments in the world have ever provided more than a subsistence existence to the population and all Ponzi schemes eventually fade away.

 

No dear reader, the current financial order may not survive…and neither may millions of more retirement accounts or pension funds. Consider the roaring 20’s…it was a time of unprecedented economic prosperity, massive gains in real estate, easy credit, luxury and growth. The nation was intoxicated by parties, the industrial improvements of the day and most of all…the expansion of riches due to financial instruments like stocks and bonds. Then, like now, it went south. Newspapers and media reports indicate some opted for suicide, others lived a life of poverty never to recovery while a few – very few indeed – went on to make family fortunes that survived until the present day.

 

Who were those that thrived while others were lining up outside of soup kitchens? Those that bought land and other hard assets for pennies on the dollar. The examples don’t end there; remember the scene in “Gone with the Wind” where the father tells a stubborn daughter the only thing worth fighting for is the land. It’s more than a quaint idea…it’s the stuff fortunes and freedom are made from. Britain was built on the acquisition of land. The Greek and Roman empires only recognized the rights of their “free” citizens…all of which were landowners. In fact, going back for thousands of years the single item of value which differentiated the wealthy and free citizens from the rest is land…or in today’s vernacular – real estate.

 

Like the old Bob Dylan tune, the order is rapidly fading and those that are first are likely to come up last as financial guru’s give way to the time tested road to riches gleaned from real estate. Real estate might be slow right now but it will later be fast.  The nation elected a new President on the podium of change. The financial figures have fallen one by one and indeed, the line is drawn. Learn how to profit from the change rather than rely on past promises by learning how to control your own financial future with short sale investments.

 

See you at the top!

 

 

Chris McLaughlin

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

 

P.S.

 

Don’t miss our webinar tonight at 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/530620442

 

P.P.S.:

Check out one of the ShortSalesRiches students holding himself as well as us accountable to whether the system truly works!  Go here now to watch the videos from John Michailids:

http://www.youtube.com/shortsalesriches

and

http://www.willjohnmakeit.com

 

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

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Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
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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 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

     * On twitter: http://twitter.com/mclaughlinchris
     * On facebook:

http://www.facebook.com/addfriend.php?id=709199143

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