nathan jurewicz

Forward this e-mail to your friends!  Then they can subscribe directly at the following link:  http://www.smartrealestatenews.com/

*** Follow Chris on Twitter–> http://www.twitter.com/mclaughlinchris

*** Join Chris’ Facebook Fan Page–> http://www.mclaughlinchris.com

******************************************************

The FINAL Short Sale Sensei webinar:

She was one of them.  She attended their office parties.

She’s sat down to dinner beside them.  Socialized and went

to sporting events with them.

 

If there’s a tactic or strategy the bank’s kept hidden from

investors, she knows it.  She’s the Short Sale Sensei. 

 

And she’s ready to spill the beans in a FINAL ENCORE this coming

Saturday, at 3 PM ET, NOON PST, on a fr-ee webinar, right here:

https://www1.gotomeeting.com/register/261917249

******************************************************

Pending home sales drop 7.6%

According to the National Association of Realtors (NAR), its Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, dropped 7.6% to 90.4 from a reading of 97.8 in December, and is 12.3% higher than January 2009 when it was 80.5. NAR said the harsh winter hampered home sales. “January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit,” said NAR chief economist Lawrence Yun. “Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the US, hampered shopping activity in February.” Analysts say extension of tax credit is doing little to boost pending home sales, and given that the Federal Reserve will end purchase of mortgage backed securities this month, the housing recovery is going to take time. “When you take away all the support from the housing market, the underlying demand for housing is a lot weaker than we thought,” said Mark Vitner, an economist at Wells Fargo Securities. “We clearly pushed some demand forward, and there wasn’t that much demand to pull forward anyway. The housing recovery is going to be very, very slow.” On a regional basis, the pending home sales index dropped 8.7% to 71.3 in the Northeast, dropped 13.2% to 102.9 in the West, dropped 8.9% to 81.2 in the Midwest, and dropped 2.1% to 98.1 in the South.

Construction of multifamily units to rise in 2010

Green Street Advisors, a research firm, says real estate investment trusts are likely to begin construction of multifamily units worth about $1 billion in 2010; this is a significant increase over the $100 million of development starts in 2009. This comes as a bit of surprise since apartment vacancy is at a record high and the unemployment rate is not expected to come down any time soon. Analysts point out that construction cycles of multifamily units run into a few years and companies have to start today and be ready when the market turns around. Companies are betting that limited supply of new units coupled with an improving economy will help the sector in another couple of years. After 2012 until 2015, “apartment REITs may generate the best property net operating income growth that they’ve seen in a very long time, maybe ever,” said Haendel St. Juste, a REIT analyst with Keefe, Bruyette & Woods. While the sector has significant risks, analysts believe things are getting better. “There’s an element of risk,” said Andrew McCulloch, an analyst with Green Street. “But if you were to go back a year, the outlook is much more clear today. Their confidence level in that eventual recovery is much higher.”

Analysts predict better times for commercial mortgage

The commercial mortgage market, which hit the lowest level last year since 2003, is likely to do better in 2010. Analytics firm Trepp, which monitors collateral performance on related commercial mortgage backed securities (CMBS), says the amount of commercial loans at least 30-days delinquent rose to 6.72% in February; this is the smallest increase in six months. In addition, the value of commercial real estate loans that collateralize CMBS increased to 76.7% of the original loan price through January 2010, up from 75.9% in December, according to Debtx, a research firm. Cushman & Wakefield, a commercial real estate (CRE) services provider, has predicted a 30% increase in global CRE investments in 2010. Analysts believe mortgages are the best option now for both high yields and safety, and will attract the attention of investors in 2010. David Hutchings, head of research at Cushman & Wakefield says investors aren’t shying away from the risk in CMBS. “While challenges clearly remain and a double-dip cannot be ruled out, a higher risk appetite among financiers and investors will continue to fire the market,” Hutchings said.

Factory orders rise 1.7%

According to the Commerce Department, new orders for goods manufactured in U.S. factories rose 1.7% in January; this is the ninth rise in the last 10 months. Orders for nondurable goods, including food, paper products, petroleum and coal products, rose by 0.9% in January while orders for durable goods such as computers, cars and machinery, rose by 2.6% in January. Manufacturers have been battered by the financial crisis and the recession hit demand for durable goods in the last couple of years. Orders for heavy machinery fell 9.2% in January after posting a 7.3% increase in December. “The culprit here is turbines,” said Michael Feroli, an economist at JPMorgan Chase. “You smooth it out and things weren’t as robust as they seemed in December, but maybe not as dire as they seemed in January.” The decline in orders for heavy machinery has not dampened economists’ outlook. The declines in orders of heavy equipment “don’t change our opinion that capital spending is recovering,” said Aaron Smith, an economist at Moody’s Economy.com. “There’s always a tendency for the turbines and generator category to be weak in the first month of the quarter and stronger in the last month and that trend is particularly strong for the first part of the year.”

Payrolls fall less than expected in February

The jobless rate remained unchanged at 9.7% in February compared to January. The Labor Department said employers cut 36,000 jobs in February; analysts had expected at least 50,000 jobs to be cut in February. On a sectoral basis, professional and business services added 24,000 jobs in February; manufacturers added 1,000, construction companies eliminated 64,000 jobs, financial sector cut 10,000, and the government cut 18,000 jobs. The Labor Department said it is difficult to measure the impact of winter storms on employment. “Nor do we know how new hiring or separations were affected by the weather. For those reasons, we cannot say how much February’s payroll employment was affected by the severe weather,” said Bureau of Labor Statistics Commissioner Keith Hall. Economists say the less than expected job cuts are an indicator that unemployment is easing. “We are almost there, the point where we are consistently adding jobs,” said Ken Mayland, president of ClearView Economics. “The economy is making incremental but broad-based gains towards improvement.” Since the start of recession, 8.36 million jobs have been lost and unemployment remains the single biggest challenge for President Obama.

Now on to our real estate investing educational section…

Friday File – 15 Minute Resolution

Today’s 15 minute resolution is to learn the basics about using Twitter.  Think you don’t need to set up a Twitter account? Better think again. Despite the somewhat frivolous sounding name, Tweeting is becoming big business as heavy-weight real estate investors like Guy Kawasaki and even the Donald (as in Trump) sign-on.

A few of the most frequently cited reasons for joining Twitter include:

1. Sell products or services…sounds like a good reason for real estate investors to join right there!

2. Stay in immediate contact with a large number of people…ditto!

3. Monitor your reputation in real time. Find out what people are saying and take steps to enhance your professional reputation along the way.

4. SEARCH – Learn to use this powerful tool as soon as possible. Visit http://search.twitter.com/ 

5. ADVANCED TWITTER SEARCH – Serious tools for serious investors. Localize your search by area, specific people, places or other criteria…real time information.

6. Obtain data on your own Tweets with the use of social media analytics like www.objectivemarketer.com.

So, now that you know just a few of the reasons why Twitter is so important, it’s time to put your 15 minute resolution into effect. This week take time to create a Twitter account if you don’t have one (it’s simple…just visit www.twitter.com) or pimp out your Twitter page if you are still making do with a plain vanilla template.

1. Visit www.twitterbackgroundsgallery.com to find an easy to use Twitter template or create your own. Be sure to make your contact information highly visible but keep it simple, clean and concise.

2. Use the url field! Seriously folks, a blue background is bad enough but make the most of all the marketing potential by populating the existing fields.

3. Have it done for you. Not a designer by nature? No need to worry…it’s easy to have a complete Twitter account fully set-up and waiting for you.

See you at the top!

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

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 

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

*************************************************
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 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
–

Forward this e-mail to your friends!  Then they can subscribe directly at the following link:  http://www.smartrealestatenews.com/

*** Follow Chris on Twitter–> http://www.twitter.com/mclaughlinchris

*** Join Chris’ Facebook Fan Page–> http://www.mclaughlinchris.com

******************************************************

We’re not allowed to release her name. Because she used to

work for the enemy.  And she knows all their dirty little

tricks.  Just call her the Short Sale Sensei…

 

This gal used to be well respected by banks.  She processed

nearly 10,000 short sales for lenders too big to name here.

 

She was one of them.  She attended their office parties.

She’s sat down to dinner beside them.  Socialized and went

to sporting events with them.

 

If there’s a tactic or strategy the bank’s kept hidden from

investors, she knows it.

 

And she’s ready to spill the beans in an ENCORE TODAY,

Thursday, at 3 PM ET, NOON PST, on a fr-ee webinar, right here:

 

https://www1.gotomeeting.com/register/815788648

******************************************************

Mortgage applications rise as interest rates fall

According to the Mortgage Bankers Association (MBA), its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, rose 14.6% for the week ended February 26, from the earlier week. The Refinance Index rose 17.2% from the previous week while the seasonally adjusted Purchase Index increased 9.0% from one week earlier. The increase was due to a drop in loan rates — the rate on 30-year fixed-rate mortgages dropped to 4.95%. “Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent,” said Michael Fratantoni, vice president of research and economics at MBA. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.” Analysts say the surge in mortgage applications is not an indication of long-term recovery, given the current levels of foreclosure and unemployment. “We are seeing positive signs of some form of life, but it is not significant and the recuperation period is going to be significant because these are dramatic declines” in housing, said Vickie Lester, president of mortgage servicing at RoundPoint Financial Group.

Home prices rise 5%

Clear Capital, a provider of real estate data, says home prices climbed 5% nationally in February from a year ago. The prices grew 2.3% in January on an annual basis. Among metropolitan areas, Providence, Rhode Island saw the highest rise of 6.1% from the earlier quarter. California had 5 of the 15 highest performing markets. The rise in prices is likely to be sustained as the tax credit deadline approaches in April. “If the increase in demand that preceded the end of the last tax credit is any indication, home prices may dip only slightly into negative territory before getting an added boost before the April tax credit deadline,” said Alex Villacorta, senior statistician at Clear Capital. The firm has expressed optimism despite the likely impact of REOs – properties that go back to the mortgage company after an unsuccessful foreclosure auction – on home prices in the coming months. “Although many markets have seen a slow down in price gains, I’m encouraged that prices have remained positive through the first two months of the year despite all the negative economic news and threat of more REOs hitting the markets,” Villacorta said.

Hovnanian returns to profitability

Hovnanian Enterprises, a real estate development company, posted a profit of $236.2 million for the quarter ended January 31, compared with a year-earlier loss of $178.4 million. The result includes a $5 million write-down on land and other items, compared with $132 million in write-downs a year earlier. This is the first quarterly profit since 2006. Hovnanian operates in 18 states, including California, Arizona and Florida, the worst-hit states. The company’s net contracts, excluding unconsolidated joint ventures, decreased 5% while the average price grew 14%.

The company’s contract backlog as of January 31 was 1,593 homes, down 4%, with a value of $505.4 million. The cancellation rate dropped to 21% from 31%; this was the company’s lowest cancellation rate since the second quarter of 2005. Ara Hovnanian, Chief Executive of Hovnanian, sounded cautiously optimistic about the company’s prospects for the near-term. “We are pleased to see the market for new land deals begin to thaw out a bit and we continue to diligently pursue new land opportunities where we can make normalized returns based on today’s home prices and sales absorption levels,” said Hovnanian. “I’m not trying to brush off concerns in the marketplace. There are risks, and the risks are real.”

Service sector’s best performance since December 2007

The Institute for Supply Management (ISM) said its index tracking the service sector rose to 53.0 in February from a reading of 50.5 in January. This is above the estimate of 51.0 made by economists. A reading above 50 indicates economic expansion while a reading below 50 denotes contraction. The February reading is the highest since December 2007. The services sector accounts for about 70% of America’s economic activity. “We’re starting to see a broadening of the economic recovery,” said Richard DeKaser, chief economist at Woodley Park Research. The data “are encouraging, to say the least.” Dean Maki, chief U.S. economist at Barclays Capital, said: “Spending by consumers and businesses is growing again, though not at the pace prior to the financial crisis. Generating service-sector employment is quite critical to the broader economy.” Unemployment is the biggest concern. Given the current unemployment level, it may take years and not months for the sector to recover in a sustained manner. “Business feels better, there is no question about it,” said Macy’s Chairman and Chief Executive Officer Terry J. Lundgren. “We still have high unemployment, and I still see tight credit on consumers.” Nine industries, including information technology, arts, transportation and retailing, saw growth in February while 8 industries saw a fall in output.

Planned layoffs drop in February

According to a report released by Challenger, Gray & Christmas, a consultancy, planned job cuts announced by U.S. employers dropped 41% to 42,090 in February, from the 71,482 layoffs recorded in the previous month; this presents a 77% drop from 186,350, a year earlier. The report states that job-cut total in February is the smallest since July 2006. Analysts believe it will take some time before hiring starts to grow. John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said: “Employers have shifted away from downsizing and are poised to start adding workers. It may be a couple of more months before hiring begins to surge.” Pharmaceutical companies, with 17,687 announced cuts, and government and non-profit agencies, with 4,628, led all industries in reductions in February. The economy is limping back from its worst downturn since the 1930s, but economists are concerned about the unemployment rate which is expected to average close to 10% this year.

Now on to our real estate investing educational section…

Whole Life Financing For Dummies

Have you been sitting on the sidelines waiting to accumulate cash to start investing in short sales? There are faster, easier and more efficient ways to raise needed funds but one that is gaining a great deal of support is the use of whole life insurance as a finance vehicle for short sale investing.

Whole life insurance is often considered a “bad buy” among traditional investment guru’s including notables such as Dave Ramsey and Suzy Ormon…indeed, for the average American struggling just to get by, any form of life insurance is often viewed as a luxury rather than necessity. However, those with the foresight plus a little time on their hands to crunch the numbers soon realize a whole life policy isn’t always a bad investment…in fact, held long-term it can be the most economically viable option. Beyond the basic death benefit, there are other very real rewards to be gained from a whole life policy including the use of low-cost financing.

Basically it works like this; once a participating whole life policy is purchased and capitalized or funded, the dividends eventually cover the cost of the policy itself. Additional paid in full riders can greatly increase the initial funding of the account to grow the cash balance to a desirable level. At this point, the policy can be borrowed against for any desired purpose…including the purchase of real estate. A contract is established that delineates the “interest rate” to be charged on the loan and the time period in which it is to be repaid.  Meanwhile, the policy continues to receive dividends based upon the complete cash value of the policy essentially creating an exceptionally low cost source of funds. In fact, the policy owner benefits in several ways since the payments (with interest) are paid directly back into the whole life account. Interest can be used as a write-off for the real estate expenses while simultaneously, excess payment amounts paid back into the whole life policy are used to purchase additional paid-in-full premiums thereby increasing the death benefit and available source of future cash value in the account.

Not only does the account continue to grow, pay dividends and collect the full payments back into the account but insurance is considered a protected asset in many states and taxes are deferred until the withdrawals exceed the amount paid into the policy. Because dividends are considered a ‘return of premium’ rather than distribution of profits, they are not subject to typical taxes.

If you own a whole life insurance policy, take time to carefully consider the feasibility of using a policy or cash value loan to dramatically enhance your individual real estate portfolio. By establishing favorable repayment terms and recapturing the interest rates into your own account, it’s possible to act like your own banker while building a strong real estate investment portfolio.

See you at the top!

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

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 

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

*************************************************
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 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

Forward this e-mail to your friends!  Then they can subscribe directly at the following link:  http://www.smartrealestatenews.com/

*** Follow Chris on Twitter–> http://www.twitter.com/mclaughlinchris

*** Join Chris’ Facebook Fan Page–> http://www.mclaughlinchris.com

******************************************************

We’re not allowed to release her name. Because she used to

work for the enemy.  And she knows all their dirty little

tricks.  Just call her the Short Sale Sensei…

 

This gal used to be well respected by banks.  She processed

nearly 10,000 short sales for lenders too big to name here.

 

She was one of them.  She attended their office parties.

She’s sat down to dinner beside them.  Socialized and went

to sporting events with them.

 

If there’s a tactic or strategy the bank’s kept hidden from

investors, she knows it.

 

And she’s ready to spill the beans in an ENCORE tomorrow,

Thursday, at 3 PM ET, NOON PST, on a fr-ee webinar, right here:

 

https://www1.gotomeeting.com/register/815788648

******************************************************

Number of bank failures this year: 22 and counting

Last week, regulators closed 2 banks, bringing the number of bank failures to 22 so far this year. The banks which were shut down are Carson River Community Bank, based in Nevada, with $51.1 million in assets and $50 million in deposits as of Dec. 31 and Rainier Pacific Bank with $717.8 million in assets and $446.2 million in deposits as of Dec. 31. The Federal Deposit Insurance Corporation (FDIC), which insures up to $250,000 per account at member institutions, will take a hit of over $100 million on account of the 2 failures. FDIC says the number of troubled banks jumped to 702 in the fourth quarter from 552 in the earlier quarter. Nearly one in every three banks reported a loss in the latest quarter. Amid recession and a rise in delinquent loans, the pace of bank failures has been rising, from 25 in 2008, to 140 in 2009, and to 22 in just the first 2 months this year. Banks are likely to incur as much as $300 billion in losses on Commercial property loans in the near-term, according to a recent report by the Congressional Oversight Panel, the watchdog that monitors financial bailout. With the economy not showing any signs of sustained recovery, the FDIC’s insurance fund is expected to take a hit of over $100 billion in the next four years.

Construction spending falls 0.6%

According to the Commerce Department, construction spending in the U.S. fell for a third straight month by 0.6% to $884.13 billion in January; construction spending dropped 1.2% in December. Nonresidential buildings in the private sector dropped 0.9% in January, while state and local government construction dropped 0.7%. Federal construction spending rose 1.9% to a high of $30.68 billion in January, increasing for the fifth straight month. Spending on private home buildings rose 1.3%. While housing starts rose 2.8% in January from December, construction permits, an indicator of future projects, dropped 4.9%. New home construction which rebounded strongly in the third quarter of 2009 seems to have lost some momentum. The economy was pushed into its worst slump since 1930s on account of the housing collapse. “We haven’t really seen much improvement in housing,” said Michael Englund, chief economist at Action Economics. “Residential construction is still weak. On the non-residential side, builders are hesitant to go along on new projects and banks are reluctant to provide the capital.”

Will Simon’s bid for General Growth attract antitrust?

Simon Property Group, a large owner of malls presented last month a $10 billion offer to buy General Growth Properties, another mall operator. Simon has offered to pay $7 billion towards General Growth’s unsecured debt. In addition, Simon would pay $6 per share to General Growth’s shareholders and spin off General Growth’s residential-development division, which Simon values at $3 per share. The deal, if it goes through, would create a single entity which would control about 520 malls in the U.S. While analysts wonder if the bid would invite antitrust concerns, David Simon, the Chief Executive Officer of Simon, said such concerns are unwarranted. “No way. Not even close,” said Simon. “Retail real estate is so diverse. There are so many options for retailers. We’re competing with the Internet. You have Wal-Mart [Stores Inc.], big-box retailers, department stores. I just don’t see it being a big issue. But there’s an education process I think the industry is going to have to go through.” General Growth is not interested in accepting Simon’s bid and has countered Simon’s bid with a plan to receive funding from Brookfield Asset Management Inc., a Canadian property investor.

HARP gets extension for 12 months

The Obama administration introduced the Home Affordable Refinance Program (HARP) last year to help about 4 to 5 million borrowers who have little or no equity in their homes. The program, administered by Fannie Mae and Freddie Mac, refinanced 190,180 mortgages in 2009 with loan-to-value between 80% and 125%. The program which was set to expire June this year has been extended by 12 months. Edward DeMarco, acting director of the Federal Housing Finance Agency, said the program has been extended to June 2011 in order to “support and promote market stability and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios to 125%.” Analysts have been critical of the program and say it has had a limited impact so far. “The overall volume last year was an embarrassingly small amount. I don’t think it will make a big difference” to have the program extended, said Thomas Lawler, a housing consultant.

Bankruptcies drop in the U.S.

BankruptcyData.com says only 5 public companies filed for Chapter 11 or Chapter 7 bankruptcy protection in February, compared to 19 in the same period in 2009. In January, 12 public companies filed for bankruptcy while 11 public companies went under in December. Bankruptcies of large companies — with more than $1 billion in assets — have slowed down. In 2009 about 25% of the companies that filed for bankruptcy had assets over $1 billion while so far this year only 19% percent of the total 16 bankruptcy filings have had more than $1 billion in assets. The improved economic situation and buoyancy in capital markets are helping companies stay afloat. Analysts however warn that the scenario is not entirely rosy and more bankruptcies can be expected. “Last year was like a tsunami, but this next phase will be more like a rising tide; consistent and steady,” said William Snyder, a managing partner with CRG Partners. Analysts feel capital restructuring can help companies only to a limited extent. In the long run, what really matters is operational efficiency. Alan Cohen, chairman of Abacus Advisors, a turnaround and restructuring firm, said: “You can correct a balance sheet by manipulating debt into equity, or reducing debt, but unless the entity focuses on improving operations, they’re going to have a tough time.”

Now on to our real estate investing educational section…

Parkinson’s Law & Short Sales

Cyril Parkinson must have been an astute student of human behavior especially when it came to economic trends and traits; a British Civil service employee, Parkinson originally noted the tendency for bureaucracies to expand over time…an observation sure to be noticed by short sale buyers waiting for approval from big banks. In fact, many of the Parkinson’s observations seem to apply especially well to short sale investments including:

“The demand upon a resource tends to expand to match the supply of the resource”

Think about “easy credit”. Without easy credit and lax lending terms many people would not have bought homes they were unable to afford to begin with; it’s also why modification programs simply won’t work in the majority of situations. Despite decades of government intervention designed to make everyone a homeowner, the ratio of renters versus homeowners tends to remain the same over time. Essentially the current situation can be considered a correction back to the “mean”.

“The amount of time in which one has to perform a task, is the amount of time it will take to complete that said task”

Again, how many last minute approvals have you encountered recently? While procrastination isn’t limited to bankers or brokers, it’s certainly alive and well in today’s economic arena.

So, how can you use Parkinson’s Law to your advantage? It’s simple…

1. Expedite Deadlines…for yourself and others. Rather than wait until the last possible moment, start setting deadlines ahead of time for both yourself and others. This not only reduces stress but tends to put you back in control of sluggish situations and lagging negotiations.

2. Put a “product” back into productivity…rather than outline a “to-do” list, start measuring actual outcomes instead. For example, set a date to have all your social media marketing up and running then clearly define what it should consist of and look like. If you aren’t able to get it done by a specified date, pull in the big guns and have it done for you; remember, the objective is to  achieve a final outcome or goal rather than just “make busy work”.

3. Calculate the value of your time…then hire out others to do at least the bottom 20% of the least profitable errands and chores. By consistently doing this on a regular basis it is possible to increase your personal productivity and hourly time value by well over 20 per annum.

See you at the top!

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

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 

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

*************************************************
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 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
–

Forward this e-mail to your friends!  Then they can subscribe directly at the following link:  http://www.smartrealestatenews.com/

*** Follow Chris on Twitter–> http://www.twitter.com/mclaughlinchris

*** Join Chris’ Facebook Fan Page–> http://www.mclaughlinchris.com

******************************************************

We’re not allowed to release her name. Because she used to

work for the enemy.  And she knows all their dirty little

tricks.  Just call her the Short Sale Sensei…

 

This gal used to be well respected by banks.  She processed

nearly 10,000 short sales for lenders too big to name here.

 

She was one of them.  She attended their office parties.

She’s sat down to dinner beside them.  Socialized and went

to sporting events with them.

 

If there’s a tactic or strategy the bank’s kept hidden from

investors, she knows it.

 

And she’s ready to spill the beans, TODAY at 3 PM ET, NOON

PST, on a fr-ee webinar, right here:

https://www1.gotomeeting.com/register/815788648

******************************************************

Fannie Mae seeks $15.3 billion in bailout money

Fannie Mae, the country’s largest mortgage financier, says it needs another $15.3 billion to tide over the current housing crisis. The company posted a staggering loss of over $ 70 billion in 2009 compared to $ 58.8 billion losses in 2008. Fannie’s losses were mainly on account of $11.9 billion in credit expenses, which included bad loans and costs incurred in maintaining foreclosed properties. The company also took a $5 billion write-down on low-income tax-credit investments. About 5.38% of Fannie’s single-family loans were more than 90 days delinquent, up from 2.42% a year earlier. Total nonperforming loans of the company were $216.5 billion at year-end, compared with $119.2 billion in the prior year-end. Fannie has so far received over $ 60 billion in bailout money. While the company expects to see an improvement in its performance this year, losses are likely to continue through 2010. Fannie and Freddie Mac have played a key role in implementing the Obama administration’s initiatives to stem the rising tide of foreclosures. Michael Williams, Chief Executive of Fannie Mae, said foreclosure prevention was a top priority. “Our overriding objective is keeping people in their homes whenever possible.”

Orleans Homebuilders files for bankruptcy

Orleans Homebuilders, a Pennsylvania-based housing developer has filed for bankruptcy under Chapter 11. Orleans had $440 million of assets and $498.8 million of liabilities as of December 31. Jeffrey Orleans, Chief Executive, said the company is looking for a buyer through a negotiated sale or court-supervised auction. The company’s revenue dropped by about two-thirds over the last three years — from $1 billion in 2006 to $322 million in 2009. The company defaulted on a $350 million credit facility last month after failing to get an extension of maturity of its debt. Orleans said it had $311 million of cash borrowings outstanding, excluding letters of credit. Orleans joins a long list of real estate companies that have filed for bankruptcy so far. “There’s been an enormous bubble in commercial real estate, and it has to come down,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, the watchdog that monitors financial bailout. “There will be significant bankruptcies among developers and significant failures among community banks.”

Mortgage insurance claim-denials on the rise

According to Moody’s Investors Service, claim denials by mortgage insurance companies have risen to 25% in the recent past from a historic average of about 7%. In the face of drop in new business, mortgage companies are increasingly getting finicky about honoring claims on defaulted loans, and this in turn is increasing transaction cost to servicers and investors. According to Moody’s, Bank of America (BoFA) recently filed a lawsuit against MGIC, a mortgage insurer, claiming the insurer improperly denied claims from BofA’s servicer unit. While the lawsuit is still on, mortgage insurers are becoming more confident in denying partial or whole claims from servicers and Moody’s says the industry can expect continued high rescission rates for the future. According to the Mortgage Insurance Companies of America, the 14,378 mortgage insurance policies issued in January 2010 had a total value of $4.16 billion, and this was lower in volume and dollar terms than any month in 2009. While the BofA-MGIC lawsuit continues, Moody’s believes servicers’ rebuttal efforts “will be less forceful and will have little impact on claim denials. RMBS transactions that carry pool policies (partial or full) are likely to receive little benefit from them.”

A $150 billion package to reinstate jobless benefits

According to the Department of Labor, about 400,000 people will lose unemployment benefits in the next few weeks on account of the Senate blocking the extension of jobless benefits. Sen. Jim Bunning (R., Ky.), blocked the extension, saying the cost of extension (around $10 billion) is not offset by cuts elsewhere to the federal budget. Senate Democrats are now seeking to get around Bunning’s objection by pushing a bill containing several measures aimed at stimulating job growth. The $150 billion measure includes $81 billion to extend unemployment benefits, such as Cobra subsidies to help the unemployed buy health insurance, for the rest of this year and $25 billion to help prevent layoffs. Senate Finance Chairman Max Baucus, a Democrat, said the bill would “put cash in the hands of Americans who could spend it quickly, boosting economic demand.” The other measures in the bill include provisions unrelated to job creation, such as a $7 billion plan to prevent, for seven months, a 21% scheduled cut in Medicare reimbursements to doctors, a $1-per-gallon tax credit for biodiesel fuel and a $6.6 billion credit promoting corporate research and development programs. The bill is likely to be sent to the House for approval this week or next.

Treasury says government finances deteriorated in 2009

The Treasury Department said in a report the government’s financial position, reported on an accrual basis, continued to deteriorate in fiscal 2009. On a net basis, the government had a shortfall of $11.46 trillion in the year ended September 30, 2009, compared with $10.2 trillion in 2008. The net operating cost rose to $1.3 trillion in 2009 from $1 trillion in 2008. Treasury Secretary Tim Geithner said: “The increase was largely due to increased costs for mandatory spending programs, such as unemployment insurance, Social Security, Medicaid and Medicare benefits, continued investment in the economic recovery effort, and more than a $400 billion decrease in tax revenue due to the economic downturn.” According to the report, “in the absence of policy changes, large and increasing primary deficits” will lead to an increase in the government’s debt burden. While there is a need to stimulate the economy, economists are concerned about the deteriorating fiscal situation. Federal Reserve Chairman Ben Bernanke has warned that if deficits are not brought under control, the confidence of investors who buy government debt will drop.

Now on to our real estate investing educational section…

“Must Know” Metrics for Real Estate Investors

The daily news is filled with economic indicators but which ones really matter  the most to the average real estate investor? Of course, they all contain valuable information but data doesn’t mean the same thing to every industry. Reduce the mental clutter and learn how to focus on the data that does matter with these “must know” metrics for real estate investors.

1. Housing Starts – Published by HUD and/or the Census Bureau, housing starts are one of the most important long term metrics every real estate agent, broker and investor should know and understand. The number of housing starts provides a very clear indication of future growth as well as supply and demand.

2. Inflation vs Interest Rates – It is essential to know the true inflation rate versus the current interest rate. Negative “real” interest rates (ie, when inflation is higher than short term market rates) is a red flag that a downturn in the economy is a likely.

3.  Vacancy/Rental Rates – Whether you buy and hold or simply flip every property, knowing the current supply/demand for units helps keep prices in order. New home buyers and investors alike often desire homes in specific area of a specific size so don’t just glance at the raw numbers; instead, obtain up to date data on specific zip codes or neighborhoods of interest.  Obtain this information from the Census Bureau and the Bureau of Labor Statistics.

4. Impact Fees & Other Taxes – Although local in nature, here is an often neglected area that can add thousands to the bottom line especially in areas that experienced rapid growth over the past several years. Impact fees in many areas now exceed the original purchase price of a vacant piece of property making even the most downtrodden homes profitable investments.  Likewise, regional growth (or lack thereof) as well as in-filling or expansionary trends remains an important indication for real estate trends in any given area.

5.  Consumer Sentiment – Every investor knows consumers are fickle; never underestimate the power of psychology and consumer sentiment to move a market. Nationwide and local data are equally important. People tend to feel less optimistic during winter months especially during the holiday season…more optimistic in summer months after those heavy credit card bills are paid off from the year before. Use it to your advantage when buying or selling.

6. Home Sales – New and existing home sales remain a fundamental measure both as a nationwide indicator and local indication of real estate “health”. Be sure to differentiate between site built homes, manufactured homes, condos and other forms of real property as well as various price levels.

7. Mortgage Applications – The Mortgage Bankers Association or MBA tracks this index in order to provide up-to-date information on the housing market. Four week moving averages provide a much more robust picture than weekly averages so it’s best to get a general update each month rather than focus too closely on any given week.

8. House Prices – The HPI or House Price Index is published by the Office of Federal Housing Oversight and is considered the gold standard for resale data.

See you at the top!

Chris McLaughlin
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Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

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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 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
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