Posts tagged as:

merrill lynch

Bernanke Says Interest Rates to Stay Low

by Chris McLaughlin on March 18, 2009

Real Estate News & Commentary by Chris McLaughlin, March 18, 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 live on Thursday night at
8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/995947853

 

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/995947853
———

Interest rates will stay low

 

Economists predict Fed Chairman Ben Bernanke and his colleagues will hold the lending rate between zero and 0.25 percent for the rest of this year and for most, if not all, of next year to combat the recession we’ve been in since December 2007.  Of course with a lending rate this low, the Fed is just about powerless in the face of recession, but that’s not stopping them from meeting to talk about it.  The options still remaining are:  1) buying long-term Treasury securities, and 2) boost its purchases of debt issued or guaranteed by mortgage giants Fannie Mae and Freddie Mac.  Both options would help depress mortgage rates.  Hopefully they won’t adopt the latest fad on Wall Street as option number 3 — voting themselves bonuses.

 

Homebuyer tax credit now law

 

The homebuyer tax credit, one is one of 10 key provisions of the so-called American Recovery and Reinvestment Act, was signed by President Obama into law yesterday.  The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence between January 1, 2009 and December 1, 2009.  Home buyers won’t have to repay the credit, which they can apply dollar for dollar against 2009 taxes, and if there happens to be an unused portion of the credit, it will be mailed to the purchaser. 

 

Inflation rears its head

 

The Labor Department says gasoline prices and clothing costs leaped the most in nearly two decades in February, driving a rise in consumer inflation of 0.4 percent in February.  Core inflation, which excludes food and energy, rose 0.2 percent in February, slightly higher than the 0.1 percent rise economists expected.  Can anyone guess what it’s called when interest rates stay low while prices go up?

 

Mortgage applications jump – sort of

 

Mortgage refinancing applications jumped 30 percent in the week ended March 13 as the borrowing rate dipped 0.07 of a percentage point to 4.89 percent, tying the record low reached in early January in a survey that dates to 1990.  Of course purchase applications only rose 1.5 percent.  Refinancing requests represented about 73 percent of all mortgage applications last week.

 

Foreclosures up

 

Foreclosure filings are up 30 percent from a year ago.  The states with the highest foreclosure rates so far are Ohio, Oregon, Georgia, Illinois, Michigan, Idaho, Florida, California, Arizona, and Nevada, where a whopping 1 in every 70 households are in foreclosure.  Viva Las Vegas!

 

Merrill Lynch on the hot seat

 

As if AIG wasn’t enough, now Merrill Lynch is under the gun for $3.62 billion in 2008 year-end bonuses.  Rep. Edolphus Towns (D., N.Y.), chairman of the House Committee on Oversight and Government Reform, in an effort to determine whether the committee had been misled about the bonuses, sent letters to Bank of America requesting records of the incentive payments.

 

Now on to our real estate investing education section …

 

Top Ten Foreclosure States & Investing In Short Sales

Getting started in short sales and real estate foreclosures doesn’t need to take months; with a little help from your friends here at the ShortSalesRiches.com blog you can be making an offer on your first property in less time than it takes to open a new bank account to stash all that cash and big profits.  But should you focus your efforts on foreclosures or short sales? Does it really matter? Maybe more than you think.

First, let’s take a few minutes to find out where all the foreclosures are taking place. While every state has its fair share of foreclosures and potential short sale properties, according to Forbes, the top ten foreclosure states are currently:

1. California

2. Florida

3. Arizona

4. Nevada

5. Illinois

6. Michigan

7. Ohio

8. Texas

9. Georgia

10. Virginia

Now, back to the main question; foreclosures or short sales? While both may offer a real estate investor major profit potential, short sales provide the unique perspective of less competition. Never underestimate the hype and hysteria that takes over an otherwise sane buyer in the heat of the moment or during an auction. Fear and greed plus a good healthy dose of competition can drive a would be cash cow into the ground when dealing with auctions and foreclosure sales. Bidding wars are not unusual so be prepared well in advance. On the other hand, short sales often rely upon individual negotiations where time is on your side.

Additionally, buying a property prior to foreclosures results in reduced prices since the lender hasn’t been required to deal with months of unpaid mortgages, vandalism, paper-work and other problems. In general, the sooner you claim a property the more is saved – savings that pass directly to you. Short sales can sometimes generate greater profit potential than foreclosures although there are exceptions to every rule…and trust me, I’ve seen plenty of short sales end up as REOs after stubborn lenders refuse to drop their prices, only to see the property eventually sell for $100k less than was offered as a short sale!   Lucky for us banks are getting a little smarter.  But notice I said a “little” smarter.  They are still pretty dumb.

 

See you at the top!

 

 

Chris McLaughlin

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

 

P.S.

 

Don’t miss out webinar this coming Thursday night at 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/995947853

 

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

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

     * On twitter: http://twitter.com/mclaughlinchris
     * On facebook: http://www.facebook.com/addfriend.php?id=709199143

—

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Existing Home Sales Up 6.5% in December

by Chris McLaughlin on January 26, 2009

Market News & Commentary by Chris McLaughlin, January 26, 2009
http://www.shortsalesriches.com/welcome.html

——
It really isn’t as difficult as you might think it is … but it all starts with TAKING ACTION.  If you want something that you never had, you need to do something that you’ve never done, right?  So forget all the negativity, and forget all the turmoil.  More millionaires are created during times like these than any other time … so are you ready to make it happen?  If so, be one of the 40 spots that we have left for our Tuesday webinar at 8:30 PM EST / 5:30 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/323668815

———

In real estate related market news today…

The National Association of Realtors reported that existing home sales jumped 6.5% to a seasonally adjusted annual rate of 4.74 million units in December versus November’s seasonally adjusted 4.45 million units.   The results are still 3.5% below the 4.91 million units in December 2007.   The year over year period was not as kind, however.

For all of 2008 there were 4,912,000 million existing home sales compared to 5,652,000 sales in 2007, a decline of 13.1%. 

Lawrence Yun, NAR chief economist, said home prices continue to drop. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”

In other positive news, housing inventory dropped 11.7 percent to 3.68 million existing homes, representing a 9.3 month supply, which is down from an 11.2 month supply in November.   The national median home price in December was 175,400, which is 15.3% lower than December 2007’s $207,000.

And if you saw our blistering report on former Merrill Lynch CEO John Thain’s spending spree (he spent over $1.2 million on his office renovation last year), you’ll be glad to know that Mr. Thain stepped forward today and said he’ll personally pick up the tab.  Thain said it was a mistake “in light of the world we live in today” and that the renovations, which were incurred in early 2008, were “in a very different environment.”   Thain also said that the media was mistaken about Merrill Lynch’s bonuses, which he claims were 41% lower than 2007.

Now, on to our real estate investing section…

What’s Better – Silver or Short Sales?

When it comes to investing in alternatives designed to “hedge” your risk against the market, silver is a popular choice especially among many contrarian investors. Considered the “poor man’s” precious metal investment, silver has a long history of being used both as money and as an industrial metal. It’s also portable, easily liquidated and easy to store…but is it a solid investment? Given the choice, where would one rather invest their hard earned cash…short sales or silver? Let’s take a look and consider the evidence for and against each.

Common wisdom holds that both real estate and silver provide important protection against inflation…while it may be true that silver reached a high in excess of $50 (not adjusted for inflation) after the inflationary era of the 70’s, in large part it was due to a major move by the Hunt brothers in an attempt to dominate the market. Once that episode was put to rest via legislative intervention, silver experienced a continuous decline for the next 30 years…reaching a low of approximately $2.50 – NOT adjusted for inflation! Clearly, anyone holding silver and was forced to liquidate during that period of time would have lost money…in fact, silver recently reached a high of $21 during 2008 only to drop by over 40 percent just months later. However, silver requires no maintenance, upkeep, taxes or insurance to support so buyers can hold it for years without experiencing high transactions or holding fees.

On the other hand, real estate has also been considered a long term hedge against rising rates of inflation. While real estate does require maintenance, insurance and property taxes to be paid on an annual basis it is also possible to offset or support the property through income generating activities such as rentals – without having to liquidate the property itself. While real estate also experienced major gains during the inflationary era of the 70’s…and a corresponding drop in many areas of the nation during the early 80’s…the majority of real estate holdings held their own during the interim years.

To compare silver against short sales, let’s take a long term outlook of what would have happened to $100,000 invested into each during 1980…

Average price of silver in 1980 was $48 which would purchase 2,083 ounces of silver. Today, the price of silver…NOT adjusted for inflation…is $11.30. That same 2,083 ounces of silver would be worth $23,538. Adjusted for 29 years of inflation and the actual purchasing power would be substantially less. Clearly the silver investor would not be pleased by the ‘hedge’ provided by silver.

Now let’s take a look at $100,000 invested in real estate during 1980. The average cost of a brand new home was $68,700 so you could have purchased 1.5 new homes or approximately 2 average sized re-sale homes. Even accounting for the dramatic declines in housing prices experienced throughout 2008, the average cost of a home still stands at roughly $180,000 or nearly 3x’s the original selling price of a home. Take time to calculate the numbers for yourself; any way you work it, short sales come out on top. Decide for yourself which is the wisest path to profit for the coming years: silver or short sales? Remember, all that glitters isn’t gold or silver…sometimes it’s real estate.

 See you at the top!

 

Chris McLaughlin

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

P.S.: It really isn’t as difficult as you might think it is … but it all starts with TAKING ACTION.  If you want something that you never had, you need to do something that you’ve never done, right?  So forget all the negativity, and forget all the turmoil.  More millionaires are created during times like these than any other time … so are you ready to make it happen?  If so, be one of the 40 spots that we have left for our Tuesday webinar at 8:30 PM EST / 5:30 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/323668815

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

 —

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Merrill Lynch’s Thain Gets Flushed Down a Commode on Legs

by Chris McLaughlin on January 23, 2009

Market News & Commentary by Chris McLaughlin, January 23, 2009
http://www.shortsalesriches.com/welcome.html

——
It really isn’t as difficult as you might think it is … but it all starts with TAKING ACTION.  If you want something that you never had, you need to do something that you’ve never done, right?  So forget all the negativity, and forget all the turmoil.  More millionaires are created during times like these than any other time … so are you ready to make it happen?  If so, be one of the 18 spots that we have left for our Saturday webinar at 3PM EST / 12 PM PST entitled “Recession Proof Real Estate Investing: How to Buy Property with no out of pocket costs!”

The link is right here, so jump on this now:

https://www2.gotomeeting.com/register/859239149

———

In real estate related market news today…

Shame. Shame. Shame.  The guy who seemed to have an unblemished reputation just got thrown out … for going on a absurd spending spree and concealing how bad things really were. 

Yes, if AIG’s parties weren’t bad enough (we’ve discussed those at extensive length, go to our blog and search AIG), Merrill Lynch’s former CEO, John Thain, was fired yesterday by his new boss, Bank of America’s CEO Kenneth Lewis.  There were several reasons for the firing, but chief among them was the fact that Thain spent billions of dollars in late December on employee bonuses.  The normal protocol was to pay the bonuses in January, but apparently Thain wanted them paid before the Bank of America merger closed.  It caught Lewis off guard, and he was ticked.

Why?  Well Merrill Lynch lost a whopping $27.08 billion dollars during 2008.  Yet their total compensation package was $15 billion, a reduction of just 6% from the year ago period!  Think about it folks … you lose $27 billion, sell your company to Bank of America for pennies on the dollar compared  to what you used to be worth, get billions in government aide, but still pay these morons billions in bonuses?  This is the epitome of the fleecing of America.

And it gets worse.  The quarterly loss was much more than Merrill executives had told Bank of America when they agreed to buy–Merrill Lynch lost $15.31 billion in just the fourth quarter.  And according to the Wall Street Journal, Thain jetted off to Vail, Colorado when it all hit the fan.  Way to lead, John Thain!

But then CNBC reported yesterday the absurd spending that Thain did throughout 2008.  What could be absurd?  Well, how about $800,000 to hire a decorator, Michael Smith (who happens to be decorating the White House for $100,000 right now), to decorate his office.  How about $87,000 for an area rug, four curtains for $28,000, and a pair of chairs for $87,000.  And my favorite: a commode on legs for $35,115! Enough said.  And kudos to Lewis for firing this guy when he did.  Had he not fired him, it probably would have been Lewis’ job on the line anyhow.

Now, on to our real estate investing section…

Poverty Mentality? Learn to Break the Bad Habit & Plan for Success

Is a poverty mentality keeping you from breaking into short sales? Learn how to break bad habits like a negative attitude, poor financial outlook and other self defeating behaviors that keep you in the poor house rather than planning for prosperity. Investigate your own money-mindset by answering the following items truthfully:

1.      Do you find yourself seeking the approval of friends and family on a regular basis?

2.      Do you find it difficult to separate fact from fiction especially when it comes to finances?

3.      Do you expect the government, insurance, benefits or someone else to “come to the rescue” when times get tough?

4.      Do you expect to fail or believe things are left to “fate”, “chance” or pure “luck” rather than hard work and informed decisions?

5.      Do you find it unusually difficult to invest rather than gamble with money? For example, are you more likely to buy a lottery ticket or go to Vegas than purchase an information product that can teach you how to profit from your time?

6.      Do you believe hard labor is the only way to get ahead in life?

7.      Do you think riches and wealth are just for those fortunate enough to have “connections” or be “born with a silver spoon”?

8.      Do you apologize or dismiss your success rather than gracefully accept the praise and credit?

9.      Do you find yourself getting excited by something only to feel stupid later once someone disagrees with your position?

10.  Do you fear change and find it difficult to leave the past behind?

If you find yourself answering yes to these statements, it’s time to set aside the negative attitude and begin replacing it with a positive mindset. Don’t allow fear and negativity to control your financial future. Success is a choice – not a simple random chance.

Because it is a choice – you can control your financial future by taking the time and energy required to educate and inform yourself about short sale investing then put together an action plan for success. In fact, you can change your life as rapidly or slowly as desired simply by putting an end to the defeatist mentality that keeps most people in poverty their entire lives. Instead, find out how easy it can be to transform your negative mindset into a positive force for your financial future.

Time is Money – Keeping Track of Time to Improve Your Bottom Line

You have heard it said “time is money” and no place does that hold more true than when investing in short sales real estate.  Have you ever stopped to calculate the cost of your actual time? What about the value of that same time? Most people sell their time in exchange for as little as $7.15 per hour (minimum wage). Take time to really let that set in…envision the last day of your life with your loved ones by your side. Would you trade that last hour for $7 – pre-tax!?! Of course not. Yet each and every day people shuffle to and from work, spend hours each week in traffic and plow through jobs that leave them mentally and physically exhausted in exchange for a few dollars per hour.

Let’s work in reverse and assume you want to generate an additional $1,000 per month or $12,000 per year – after tax. What are your options? Well, if you are in the lowest income bracket (currently 15 percent) and went to work for yourself – you would need to earn an additional $$1,400 per month to bring home just under $1,000 per month. At $20 per hour (roughly the average hourly income) that would require an additional 70 hours per month or the entire year …assuming it didn’t push you into a higher tax bracket!

What about short sales? Is it possible to make $12,000 from just one deal? Of course! That plus much more is entirely possible – in fact, it is done on a regular basis. How much time does it take to find, place a bid and purchase your first short sale property? Probably less time than it would require in your first month of part-time work above….and the first time is the toughest! Once you understand the process and your financing is in place, each subsequent deal becomes easier and easier.

What would happen if you just turned one solid short sale deal each year? For ease of numbers let’s just call it $10,000 a year. For less than one or two week’s worth of work you could reduce household debt, afford a great vacation, save for retirement or pay for the kids college without having to spend all your time away from home.

Finding the time to begin investing in your financial future is as simple as 1-2-3.

1.      Cut the cable and invest 3 months worth of the savings into education. Now you have the time and money required to educate yourself on the basics of short sale investing. Simply transfer the money you would normally spend on those premium cable channels into information that will transform your financial future.

2.      Set aside the time to get started. If you normally watch television every night for an hour or two; replace it with short sales prospecting. If you are more of the weekend football warrior than trade an off-season for a new financial future by spending your days scouting real estate. Whatever works best is the right method for you – just do it!

3.      Stop dreaming and start doing. Seriously, take action. Planning only goes so far but action is where the rubber meets the road. Make it a priority to fill out the paper work and put what you have learned into practice. Commit to doing at least one short sale deal then make up your mind whether or not it was worth it. Chances are you will wonder why it ever took you so long to begin!

See you at the top!

 

Chris McLaughlin

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

P.S.: Be one of the 18 spots that we have left for our Tuesday night webinar Saturday at 3 PM EST / 12 PM PST entitled “Recession Proof Real Estate Investing: How to Buy Property with no out of pocket costs!”

The link is right here, so jump on this now:

https://www2.gotomeeting.com/register/859239149

Copyright Loss Mitigation Institute 2009.

All Rights Reserved.

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

 —

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Why Bank of America Needed More TARP Money: Mark to Market Accounting Rules

by Chris McLaughlin on January 16, 2009

Why Bank of America Needed More TARP Money

Market News & Commentary by Chris McLaughlin, January 16, 2009
http://www.shortsalesriches.com/welcome.html

——
This is your year, right??  Let’s make it happen!  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 23 spots that we have left for our Saturday webinar at 4 PM EST and 1 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/783035902

———

Even before taking the oath of office President elect Barack Obama got what he wanted for Congress.  The US Senate voted yesterday to release the second half of the $700 billion TARP fund, and the incoming Obama group has planned to allocate between $50 and $100 billion toward foreclosure prevention.  In a positive sign for Realtors and investors looking for buyers, the new President’s team has signaled that stimulating buyer demand for homes is a priority, possibly by reducing interest rates even further is part of such a strategy.  We’ll have to wait for more information to come.

Bank of America announced its worst financial performance in 17 years today – they lost $2.39 billion.  Ouch!  The bank also announced that it would take on another $20 billion in TARP money.  Why?  Two words: Merrill Lynch.  As  Bank of America readies itself to buy the brokerage firm, the bank is discovering that the “mark to market” write downs, an accounting rule that requires Bank of America to write down assets to their existing market price, not the price that they might be worth if you took the time to sell them.  How does this accounting rule affect banks? 

Let me give you an example.  Let’s say Merrill Lynch has a billion worth of mortgage backed securities.  Let’s also say that 25% of those are now in default, but 75% of them are paying just fine and are on time.  You would think that the valuation of the securities would be $750 million or less, right?  Well, given how mad investors are with the rating agencies they just don’t want them on their balance sheets.  Period.  So what would be considered $750 million worth of good loans are now worth $100 million at today’s market value.  No one wants them: they are toxic at any price!

Now let’s assume the Merrill Lynch has to recognize these assets on their financials.  What used to be a billion is now $100 million in the current market.  So even though the securities would be worth a lot more than $100 million if they were to go through an orderly process of selling off the assets, the bank is required to report it based on what it is worth now—in an illiquid market.

Now understand that we got these new “mark to market” rules after the Enron scandal, and they do have validity, because without them banks can essentially lie about what their assets are.  But in this instance, when extraordinary circumstances have created tremendous illiquidity, many banks are frankly being forced to unfairly write down assets that will be worth much more than their current liquid valuation. 

If the new Congress wants to save some taxpayer money, they should modify the mark to market accounting rules to have an outside appraisal identify what they assets are really worth versus forcing banks to mark down assets that are viewed as toxic. 

Now on to our real estate education section…

Unemployment Claims Crashing Websites – Create Your Own “Safety Net”

As pink slips pile up, jobless claims have become so prevalent they are literally crashing websites and phone systems as workers rush to file unemployment claims. New York, Ohio and North Carolina were forced to shut systems down completely due to heavy volume; considering the average unemployment wages are less than $400 per week or roughly $1,600 per month (or less), one might wonder if there is a better way to create your own safety net.

As it turns out…there is! Short sales offer investors of any background the ability to take their financial future into their own hands rather than stand in line waiting for the government to provide minimal income replacement. It doesn’t require a lot of money, time or extensive training to create your own safety net with an income stream as high or low as desired.

In less time than you might spend on “hold” when applying for a Michigan unemployment benefits (average hold time of four hours according to some clients), you could be well on your way to submitting an offer on your first short sale transaction worth thousands – or even tens of thousands. With a straight 12 months of job losses, 2008 is shaping up to be the worst on record in over 50 years. 

Learn how to create your own safety net with these short sale related resolutions for the new year:

1.      Do it daily. Each and every day do something toward growing your short sale empire. It doesn’t need to be a lot but you should get into the mindset of profit and success.

2.      Try something new. Once you master a formula that works (like the one provided by ShortSalesRiches) then continue to refine it and add to your portfolio of tools and resources.

3.      Expand. Begin small then build a base by incorporating new areas, different types of real estate or other potentially profitable relationships.

4.      Educate. Never stop learning. Find a mentor and learn from others as you go along. Share your knowledge with others along the way.

5.      Add a subscription. Find a source of reliable, pertinent and up-to-date information like that provided by the ShortSalesRiches.com/blog to keep a pulse on the trends.

6.      Query like crazy. Set a personal “outreach goal” for the next month to revitalize and jump-start this year’s success.

7.      Embrace the Internet. Learn how to use it then stick to it. If you don’t have the time to dedicate to doing it all yourself then hire someone to help. It’s an investment in success.

8.      Don’t be fearful. During tough economic times there is a tendency for people to run for cover and settle for less – often much less – rather than bet on their own skills and tenacity.

9.      Get organized. Stop procrastinating and take the time needed to put everything in its place, set up the tools you need and start using them.

10.  Be a bit of a brag! Yes, when you have a success it is important to pat yourself on the back…just be selective. While you are making thousands or tens of thousands of dollars on short sales, don’t expect your unemployed brother in law to be thrilled for you. Instead, teach him how to join you in creating a long term safety net and life you love.

See you at the top!

 

Chris McLaughlin

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

P.S.: Be one of the 23 spots that we have left for our Saturday webinar at 4 PM EST and 1 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/783035902

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Foreclosures Up 81% in 2008 And They Keep Coming…

by Chris McLaughlin on January 15, 2009

Market News & Commentary by Chris McLaughlin, January 15, 2009
http://www.shortsalesriches.com/welcome.html

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This is your year, right??  Let’s make it happen!  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 42 spots that we have left for our Saturday webinar 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/783035902

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This shouldn’t be a surprise to anyone reading this real estate investing newsletter, but it is official: foreclosures jumped 81% in 2008 according to RealtyTrac.  The numbers are a little frightening when you consider the impact: one in every 54 homeowners received a foreclosure filing.  And over 2.3 million properties went into foreclosure last year.  “Clearly the foreclosure prevention programs implemented to date have not had any real success in slowing down this foreclosure tsunami,” stated James J. Saccacio, the CEO of RealtyTrac.

Shares of lending giant Bank of America were under pressure today, dropping over 16%, as the Bank readies itself to absorb Merrill Lynch & Co.’s losses.   The bank will receive an additional $10 billion on TARP funds, on top of the $15 billion it received in October, in order to provide adequate capital to absorb Merrill Lynch. 

And not all banks are losing money … at lease not JP Morgan Chase.  The bank, which purchased Washington Mutual last year, reported a profit of $702 million, which was down from $2.97 billion in the year ago period, or a 76% decline.  CEO Jamie Dimon said “If the economic environment deteriorates further, which is a distinct possibility, it is reasonable to expect additional negative impact on our market-related businesses, continued higher loan losses and increases to our credit reserves.”

Now on to real estate investing news…

News You Need to Know for 2009 – FHA Short Sales Easier than Ever!

As if increased minimum wage laws and ultra-low interest rates weren’t good enough, short sale investors will be downright delirious to learn about changes to FHA laws set to begin in 2009. On December 24th, 2008 the Department of Housing and Urban Development (HUD) released “Mortgage Letter 2008-43”….despite the inconspicuous title, this is a powerful boon to every short sale investor in the nation.

For those of you who somehow managed not to be engrossed by this less than climatic title, here are the major changes coming soon to a FHA/HUD foreclosure near you!

  1. Elimination of the clause calling for 63 percent or greater property appraisal versus debt. Now properties can appraise at any value and still be eligible for the program.
  2. Increased Net. Instead of the former 82 percent net based upon appraisal value the new limits will be 88 percent if sold with 30 days, 86 percent if sold within 60 days and 84 percent thereafter.
  3. Increased Closing Costs on Short Sales. Although not a lot – FHA will now allow up to 1 percent of closing costs rather than the former zero.
  4. Increased Seller Incentives. Again, although not a lot this will at least allow sellers a reasonable down payment toward a rental home by putting up to $1,000 in their pocket at closing.
  5. Increased Lien Allocations. Junior liens up to $2,500 are now allowed – just one more tool that helps sweeten the pot for short sale investors interested in pursuing FHA/HUD homes.
  6. Removal of Repair Limitations. This is one change that could potentially add up to thousands depending upon the required maintenance on the home. This opens the doors to many homes that would otherwise be ignored due to excessive damage.
  7. Exceptions to Non-Owner Occupant Requirements. This is on a case by case basis but opens to the door to rental properties formerly excluded from the program.

To learn more or read the release for yourself visit: http://www.brokencredit.com/wp-content/uploads/2008/12/fha-pre-foreclosure-short-sale-guidelines.pdf

New Year’s Resolutions for the Short Sales Investor

Admit it. Your New Year’s resolutions look a lot like last year’s list don’t they? If you are like most people then near the top of your list is “get in shape” followed by some type of ambiguous financial goals. The trouble with most New Year’s resolutions is they fail to energize, motivate – or even make sense. When was the last time you REALLY got excited about cutting back or doing without? Rather than emphasize the negative, it’s time to create a realistic list of positive goals designed to make a lasting difference in your life. Here are some more tips designed to transform wishful thinking into reality for the coming year.

  1. Write it Down. Researchers have discovered the mere action of taking the time to write it down increases the odds of actually putting the plan to work.
  2. Tell it to Others. Commit to the plan of action by making it known to others; whether in person, via telephone or simply as part of an online discussion. Let others know of your goals.
  3. Be Specific. Get into the nitty-gritty details; duration, specific amounts, locations or other pertinent information should be spelled out in as much detail as possible.
  4. Measure Continuously. Set a schedule to measure progress on a continuous – and frequent basis.
  5. Work toward it Daily. Make it a regular part of your routine to do at least one item toward your goal on a daily basis throughout 2009.
  6. Dare to Dream. Don’t discount your own dreams or ability to profit…it is what excites and motivates people to take action. While the rest of America is sitting on the side-lines while the greatest buying opportunity of a generation sits in front of them, those who dare to dream of a better life are capitalizing upon it.
  7. Get a Mentor. It is important to banish negativity from your vocabulary and personal goals; while a healthy dose of constructive criticism is always warranted – that is quite different from negativity. Constructive criticism is born of information and experience while negativity stems from fear. Surround yourself with knowledgeable professionals who are successful in the short sales field rather than those to fearful to take action.
  8. Educate Yourself. Information and education are key to growing in any field. In fact, common wisdom holds it takes a minimum of 1,000 hours to become fully informed about any given topic. To put this into perspective, 1,000 hours is the equivalent of 25 weeks of full-time work. Fortunately, you don’t need to start from scratch. Benefit from the wisdom of others that have gone before you and customize it to your own situation.
  9. Invest in Success. Perhaps one of the biggest mistakes most real estate investors make is failure to invest in success. Whether it is your time, money or simply opportunity cost required to put short sales real estate to work – the fact is you must make up your mind to invest in your own success before anyone else will follow.

See you at the top!

 

Chris McLaughlin

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

P.S.: Be one of the 42 spots that we have left for our Saturday webinar 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/783035902

 

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