Posts tagged as:

low rates

The Fed Offers Some Comfort to Real Estate Investors

by Chris McLaughlin on January 28, 2009

Market News & Commentary by Chris McLaughlin, January 28, 2009
http://www.shortsalesriches.com/welcome.html

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It was an amazing night, and one that you didn’t want to miss.  It was all about making what is the worst economic environment that best opportunity of your lifetime.  We’ve got the replay available for the next 24 hours… go here now to watch it right now:

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

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In real estate related market news today…

Financial stocks took a turn upward today after the Federal Reserve provided some comfort to those policy wonks that analyze every word they say.  The Fed suggested that it would keep the federal funds rate low for “some time.” And the Fed offered some brighter news about the credit markets: “Conditions in some financial markets have improved, in part reflecting government efforts to provide liquidity and strengthen financial institutions; nevertheless, credit conditions for households and firms remain extremely tight,” the Fed said.

The Fed also suggested that it will be a purchaser of treasuries, which would bring down interest rates and hold them low for the time being, an effort that it aimed at stimulating demand for homes and also encouraging refinancing to reduce American’s debt burden and free up cash flow. 

The stage coach hit a big ditch on its way to report earnings this week.  Wells Fargo reported that it lost $2.83 billion last quarter, and took significant charges as it absorbs its purchase of Wachovia Corp.   The bank had made $1.36 billion in the year ago period.  The company was not immune to the Bernie Madoff scandal: it took a charge of $294 million for losses related to the multibillion dollar Ponzi scheme. 

Now, on to our real estate investing section…

Five Fast Ways to Fund Your Short Sale Empire

Are you an Average Joe just hoping to hang on to your job and making ends meet despite the faltering economy? Have you convinced yourself there is nothing more you can do to better your position in life than just sit by and wait for the other shoe to drop until you join the long lines of unemployment? Fortunately, not only are you wrong but the fact is, you are living in unprecedented times.

For the first time in decades there is now an opportunity to purchase real estate at a fraction of the cost with the benefit of low interest rates. Before you dismiss the idea of building a short ale empire of your very own as something reserved only for those with oodles of extra cash just waiting in reserve take time to keep reading. We will outline five fast ways to fund your short sales empire this year…it’s all you need to get started with the ShortSalesRiches course…

  1. Skip the New Big Screen for Super Bowl Sunday. Heck, you could be having so much more productive time that you skip the Super Bowl entirely; for less than the cost of upgrading to that extra large LCD or Plasma screen plus the price of beer and party trays you can afford to invest in an education that provides all the information you need to start buying and selling short sale foreclosures and discount real estate.
  2. Buy a coffee-maker and kick the Starbucks habit. Yes, we know it’s convenient to fall out of bed and buy a sugar laden caffeine rich beverage on the way to work but that extra $5 per day is more than enough to pay for tools and training to start with short sales. If your spouse does the same you might save more than enough throughout the year for a solid down payment along the way!
  3. Take a gourmet cooking class and eat in once a week. Not only will you save enough money to fund your short sales empire but it’s a great way to spend time with family and friends while eating better at the same time. Your waist-line and wallet will thank you!
  4. Go to the library once a week. It’s good for your mind and makes a super cheap date. Okay, admittedly this might work better for those of you who are married with children but you can save serious cash by rediscovering your local library. If you haven’t visited for awhile, you will be pleasantly surprised to learn that in addition to books most libraries rent videos, music, games and even have special events like story-telling for the children. Now you can save on media and entertainment while investing your time and effort into something that provides a great rate of return.
  5. Invest in yourself then pay it back with the profits. Sometimes it just takes a leap of faith; set your goals then give it a try. Pay yourself back with the profits from your first sale.

See you at the top!

 

Chris McLaughlin

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

It was an amazing night, and one that you didn’t want to miss.  It was all about making what is the worst economic environment that best opportunity of your lifetime.  We’ve got the replay available for the next 24 hours… go here now to watch it right now:

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
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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
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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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Mortgage Rates Hit Nine Week Low

by Chris McLaughlin on December 31, 2008

Mid-Day Market News & Commentary by Chris McLaughlin, December 31, 2008
http://www.shortsalesriches.com/welcome.html

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You really can make a huge six figure income … even a 7 figure income … with no money out of your pocket in the deepest recession our country has ever faced.  How?  Well, you asked and we listened … some of you said that 9 PM ET webinars were just too darn late for you!  So we’re holding one this Saturday … at 4 PM EST: 

https://www2.gotomeeting.com/register/703821628

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Happy New Year’s Eve!

Good news for those looking to lock in rates!  Mortgage rates continued to drop this week, as Freddie Mac reported that rates continued to drop consecutively for nine weeks in a row.   Rates for a 30 year fixed mortgage dropped to 5.10% , down from 5.14% for the previous week.  “Interest rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all-time record low since Freddie Mac’s survey began in April 1971,” Frank Nothaft, Freddie Mac’s chief economist stated. 

And the good rate news has lenders busier than they’ve been in a year.  The Mortgage Banker’s Association index of mortgage application activity held steady this week at 1,257.7, which is its highest level since July 2003.

Now on to our real estate investing education section…

Hidden Environmental Incentives

While most short sale buyers or investors are well aware of potential pitfalls when working with environmentally sensitive properties, it is also a good idea to become familiar with hidden profit sources when purchasing properties. Here are the top methods for making more money simply due to environmental management trends:

Open Spaces. When possible, search for properties adjacent to open spaces. Conservation areas, buffer zones and even properly maintained or landscaped drainage areas sell for nearly 13 percent more than similar properties not adjacent to an open space. Open spaces represent more land, less congestion, less noise and other irritants for buyers without the higher property taxes making it an appealing resale potential.

Acreage. Search for properties located near or adjacent to acreage to realize almost 17 percent greater return on your investment compared to similar sized/area parcels. The prime size is typically 2 to 3 acres of land; anything larger is likely to be considered farming and actually subject to decreased values rather than increases.

Wetlands. Contrary to popular wisdom, properties located or classified as wetlands averaged a .3 percent increase compared to non-wetland designations. While the buyer should always be aware of potential restrictions or other environmental limits upon use, wetlands also represent “mandated” quiet zones for many buyers searching for peace and quiet.

Combinations. By combining open spaces, small acreage plots and even a wetland area it is possible to increase property values by 1/3 or more. Short sale investors presented with an opportunity to purchase on a neighborhood or community that utilized this type of planning versus another neighborhood of high density track homes will disproportionately benefit in the long term by purchasing in the environmentally sensitive community.

What to Avoid. While open spaces, acreage and wetlands represent prime purchasing opportunities, there are environmental pitfalls to be avoided if possible.

Farmland. While farm land represents a tremendous buying opportunity for other reasons, for the purpose of residential real estate it is well known to reduce property values of adjacent parcels by over 13 percent. It only makes sense; few people desire the exposure to unpleasant odors, pesticides, diesel trucks and other common pitfalls associated with farming.

Major Roads. Another common profit buster is a property located within 20 meters of a major Interstate or other highway. While the path of progress can transform an undesirable property into a future mall location or commercial milestone, the long term developmental and others costs can be out of the reach of the ordinary owner creating an inverse incentive for years.

Not in My Backyard. Despite the convenience and easy commute, there are many major construction projects deemed less desirable for residential properties. Common examples include nuclear power plants, prisons and manufacturing plants.

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See you at the top!

Chris McLaughlin
http://www.shortsalesriches.com/blog

P.S.:

Are you ready to get 2009 rolling?  Then it is time to come to our LIVE “Recession Proof Real Estate Investing” webinar this coming Saturday at 4 PM EST, 1 PM PST:

https://www2.gotomeeting.com/register/703821628

P.S.S.:

Have you seen the hilarious “Short Sale Kid Gets a Holiday Haircut.”  Don’t miss this challenge issued by Nathan Jurewicz:
http://www.youtube.com/shortsalesriches

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