treasury department

 

 

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

——–

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

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

finding and flipping short sale properties.  We’ve had

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

 

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

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

 

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

———

PPIP comes under fire

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

 

Credit Card rules are a changin’

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

 

Leading economic index down .3%

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

 

More cash for car companies

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

 

Bailout fund running low?

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

 

Now on to our real estate investing education section…

 

Fortunes, Freedom and Fear – The Time are a Changing

 

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

Bob Dylan

 

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

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

 

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

 

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

 

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

 

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

 

See you at the top!

 

 

Chris McLaughlin

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

 

P.S.

 

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

 

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

 

P.P.S.:

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

http://www.youtube.com/shortsalesriches

and

http://www.willjohnmakeit.com

 

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

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

—

 

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

——–

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

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

finding and flipping short sale properties.  We’ve had

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

 

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

we explain it all Thursday @ 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/344712594

———

Loan modification program starts

The Treasury Department announced that the first six participants to sign up for President Obama’s loan modification program are JPMorgan Chase, which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo, $2.9 billion; and Citigroup, $2 billion.  The others are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million.  A statement issued by Wells Fargo said, “We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership.”  Left unsaid is the fact that now the second wave of foreclosures will begin, as banks decide which loans are worth trying to save and which are not.

 

Details of the loan modification program

Only loans where the cost of the foreclosure would be higher than the cost of modification will qualify.  The modification plan calls for the bank to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and the government would then kick in money to bring payments down to 31% of income.  Mortgage servicers (banks and mortgage companies) can also reduce the loan balance to achieve these affordability levels, and the government will share in the cost of the reduction, up to the amount the servicer would have received if it had reduced the interest rates. 

 

Treasury will not provide subsidies to reduce rates to levels below 2%.  In addition to subsidizing the interest rates, servicers will use Treasury funding to pay for incentives for themselves, homeowners, and investors.  The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current.  It will also give $500 to servicers and $1,500 to mortgage holders if they modify at-risk loans before the borrower falls behind.  Homeowners will even get up to $1,000 a year for five years if they keep up with payments.  The funds will be used to reduce their loan principals.  “We’re confident we’ll have enough money,” said Treasury spokesman Andrew Williams.  Of course you will…if you run out, you’ll just print more, right?

 

Housing starts down

The US Commerce Department said housing starts fell 10.8 percent to a seasonally adjusted annual rate of 510,000 units, the second lowest on records dating back to 1959, from February’s 572,000 units.  Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto, said, “While the situation in housing and in the labor markets is not necessarily deteriorating, it’s clear that there is no real sign of recovery whatsoever…taken together, both releases will put a damp on the nascent optimism we’ve seen in the markets in the past couple of weeks.”  Analysts had expected an annual rate of 540,000 units for March. 

 

JPMorgan beats expectations

JPMorgan Chase said its net income for the first quarter was $2.1 billion, or 40 cents a share.  This was down 10% from a year ago, but still beat expectations.  According to Thomson Reuters, analysts were only anticipating a profit of $1.38 billion, or 32 cents a share.  The strong investment banking performance was driven by a revenue surge in its fixed income division, but Chase’s credit card division reported a net loss of $547 million, down from a profit of $609 million a year ago.  The bank cited a sizable increase in allowances for loan losses and higher charge-offs, or loans the company doesn’t think are collectable.  CEO Jamie Dimon expressed interest in paying back TARP funds, and unlike Gold Sacs, says Morgan can pay them back without issuing stock.  After what some call Goldman Sac’s accounting sleight of hand, and KBW’s downgrading of Wells Fargo, it will pay to watch the details in this reporting. 

 

Initial jobless claims slow, but joblessness at a record high

The U.S. Department of Labor says initial jobless claims dropped to 610,000 in the week ended April 11, but a record 6 million-plus continued to file unemployment claims during the week ended April 4, the most recent week for which data are available.  That’s up 172,000 from the prior week’s revised tally of 5.85 million.  John Lonski, chief economist for Moody’s Investors Service, said he puts more of his focus on the continuing claims number:  “That tells you that things are getting worse and we’re going to see another rise in the unemployment rate, and that’s not good news.”  He’s right of course; a sinking ship doesn’t stop sinking just because its rate of descent slows down.  The job market is one of the most important foundations of the economy, and one of the greatest causes for concern.

 

Now on to our real estate investing education section…

 

Understanding Volatility Versus Risk in Short Sale Investments

One of the most common mistakes made by novice and veteran short sale investors alike is to confuse volatility versus risk. Unlike the stock and bond market where the principle can go to zero, real estate always retains some type of inherent value. To put it another way, when dealing with stocks and bonds what goes up must come down..and when it does it can drop to zero never to return again. On the other hand, real estate can go down but rarely drops to zero. Companies can and do go out of business. Real estate is still standing. Even if the structure is totally eliminated the value of the raw land beneath remains.

 

This brings us to an important difference between volatility and risk. Risk involves loss. True loss of the type that wipes away fortunes over night. A company is here today but gone tomorrow…along with it the stocks, bonds and investments that represent a lifetime of work. Volatility is different. Volatility means prices can go up and down then up again. It is a function of time – not absolutes. Wait long enough and the inherent value of the land itself will retain some type of value. It might rise, it might fall. It might rise relative to the work able to be performed on it or it might fall related to the value of the interest rate used to finance it…but in all cases the volatility is relative. The land does not cease to exist.

 

Today there are two types of investors – those seeking a return of their capital and those still seeking a return on their capital. In large part, the difference has to do with where they have decided to invest their cash. Those that follow a traditional investment strategy (buy and hold stocks, bonds, treasury bills and keep some cash on hand for an emergency) are watching in utter dismay as they watch some of the biggest business concerns in the nation – indeed the world – drop to a fraction of their former value while others may simple cease to exist. The risk is very real and leaves traditional investors few options rather than attempting to park their cash into ‘safe’ federal treasury bills in an attempt to preserve their capital.

 

On the other hand, short sale investors are still indeed seeking actual returns on their capital – not merely a return of capital. While most are able to turn relatively quick profits, even those that made an early mistake are comforted by the fact that the long term risk is relatively minor…if in fact, even existent. While the price of a home and land may be volatile and subject to increase or decrease over any given period of time…it is equally likely to remain in existence. Unlike financial instruments where absolute loss is a very real concern, hard assets like real estate are primarily a function of time. The inherent value eventually returns.

 

Consider a worst case scenario for each of the following investments:

Stocks/Bonds: Worst case = cease to exist. Value drops to zero and unable to sell.

 

Cash: Worst case = cease to exist. Value drops to zero. Unable to spend (ie, confederate dollars).

 

Real Estate: Worst Case – price drops. Still can rent, sell, owner finance, plant crops or otherwise retain some form of value. Price never drops to zero as land retains an inherent value depending upon use, natural resources and other productivity.

 

See you at the top!

 

 

Chris McLaughlin

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

 

P.S.

 

Don’t miss our webinar Thursday at 8:30 PM EST, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/344712594

 

P.P.S.:

Check out one of the ShortSalesRiches students holding himself as well as us accountable to whether the system truly works!  Go here now to

watch the videos from John Michailids:

http://www.youtube.com/shortsalesriches

and

http://www.willjohnmakeit.com

 

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

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

—

Mid-Day Market News & Commentary by Chris McLaughlin, December 15, 2008
http://www.shortsalesriches.com/welcome.html

——
Tired of being sick and tired of this economy and all the negative news that goes along with it?  We have an amazing recession proof investing strategy that we’ll reveal to you on our webinar that we’re hosting tomorrow night at 9 PM EST.

Click here to be among the 30 spots that we have left:

https://www2.gotomeeting.com/register/578456918

 ——

All eyes were on the Federal Reserve today as the members of the Federal Open Market Committee sat down to debate whether to reduce rates even further.  The decision is due out tomorrow, and most analysts believe that Fed will cut an additional half percent, bringing rates to a historic low of .5%, with prime then becoming just 3.5%. 

And no decision yet from the Treasury Department or White House on how to bail out the Big 3 Automakers after Congressional talks failed last week.  Bush is considering using the $700 billion bailout package for the automakers, but opposition from others in the government has slowed any announcement of a deal.  In particular, Federal Reserve Chairman Ben Bernanke sent a letter to lawmakers last week indicating that he was “extremely reluctant” to lend to the car manufacturers. 

Now, on to our real estate investing commentary …

Do You Hear What I Hear?

During this most festive of holiday season, the sound of “cha-ching” normally rings just as loudly as that of the carolers and party-goers but this year is different. In fact, instead of singing and the sound of cash registers ringing the average short sale investor is more likely to hear wailing and gnashing of teeth from investors both near and far as the Federal Reserve reports that Americans have lost $2.8 Trillion in Net Worth…since last quarter!

Meanwhile, charge-off and delinquency rates for residential real estate loans have reached 1.45 for all banks and a whopping 1.66 for the 100 largest banks. Delinquency rates for residential real estate have now surpassed 5.08 for Q3 of 2008; the highest rate for residential real estate in over 25 years. With the economic news at home sounding so lackluster, it might lead some to seek returns in the foreign exchange markets. So, should potential short sale investors sink funds into global money market accounts or continue to pursue opportunities here at home in the current “buyers market” for real estate?

If the news domestically is hard to hear then consider the global perspective; entire nations are going bankrupt. Iceland, Hungary, the Ukraine, Pakistan and others are either facing bankruptcy or in the midst of a massive bail-out by the International Monetary Fund (IMF).  Lest you think “it can’t happen here” consider this; Argentina went bankrupt as recently as 2001 as did Russia in 1998. Once an economic powerhouse, Germany has gone bankrupt twice in the recent past including 1923 and 1945. With interest rates in excess of 20 percent, Argentina is attempting to inspire investors to take a chance on investing in their nation; to date, there has been an apathetic response at best.

According to Stephen Jen, a currency specialist with Morgan Stanely, a 1 percent drop in growth could reduce the flow of capital to “threshold countries (those in a financially precarious situation) by more than half! Should this transpire, the IMF would not have enough reserves to “bail-out” each individual nation resulting in Argentina style cycle of events including frozen bank accounts, withdrawal caps, hyperinflation and social unrest. Dare to guess which nation “guarantees” the IMF slush fund should it run dry? Yep-the good ole USA. So much for “Plan B”. As these threshold nations face economic disaster, the trading partners and surrounding nations would be exposed to further strain…setting the stage for a global economic meltdown.

Experts such as Nouriel Roubini are already calling for the most severe global crisis since the Great Depression while others like Ron Paul are openly questioning the Federal Reserve about contingency plans in the event of global economic collapse. Plain and simple; fiat currency around the world is risky business even with the prospect of double digit returns. On the other hand, real estate has historically fared well even during dollar devaluation.

Don’t let me get you down … my point in writing this is only to show you that real estate is the SAFE investment right now, and if we have a method that shows you how to buy low and sell fast, wouldn’t that be of great help to you?

See you at the top!

 

Chris McLaughlin

http://www.shortsalesriches.com/blog

P.S.:

Are you ready to crack the law of the lid?  Are you ready to get serious about your business and wealth heading into 2009?  If so, you have to go now and watch Nathan’s youtube video!  Leave some comments on it …this is AMAZING to watch, and all TRUE:

http://www.youtube.com/watch?v=KQu75ne01Vg

After you’ve watched it go here and learn how to make serious money in a recession:

http://www.webinarwizards.com/custom/index.cfm?id=170027

Mid-Day Market News & Commentary by Chris McLaughlin, November 10, 2008
http://www.shortsalesriches.com/welcome.html

Don’t miss this webinar!  We’re holding another webinar on The Top 12 Strategies for Short Sales Riches this coming Tuesday at 9 PM EST, 6 PM PST.  This is something you just don’t want to miss!  Register today:
https://www2.gotomeeting.com/register/324799291

——
The market was higher in morning trading as investors cheered a $586 billion stimulus package from the government of China.  The China bailout is seen as assisting many of the multinational US companies such as Caterpillar or General Electric.   But the sheer size of the stimulus package gives many hope that the US government will also propose a stimulus package that will jump start consumer confidence as well as housing demand.

Meanwhile, the nearly trillion dollar bailout is getting spent faster than many folks can count.  The Federal Reserve and the Treasury Department announced another $40 billion will be committed to help bail out AIG, making the total bailout of the insurance giant around $150 billion.   The additional $40 billion comes out of the $700 billion recently approved by Congress.

In other bailout news, Fannie Mae announced that it is burning cash and might need some more government help.  The mortgage-finance giant reported a staggering $29 billion dollar loss in the quarter.  Ouch.

And shares of automaker General Motors (GM) slid to a 60 year low today after analysts forecast that the company may run out of cash in April 2009.  Analysts slashed their price targets for the company, with Barclays now targeting GM at $1 a share and Deutsche Bank taking its price target to $0.  Some stock commentators believe that there will be limited government intervention to possibly bailout the automakers. 

Circuit City filed for bankruptcy protection.  The nation’s electronics retailer will shed 700 jobs and will close approximately 20% of its stores.  

Yeah, it was a bunch of bad news today … but don’t let it get your down, just learn more about short sales and REO properties.   This is your time.  This is your moment.  Make it happen for you.

I just love this quote I found:

“God grant me the serenity to accept the people I cannot change, the courage to change the one I can, and the wisdom to know it’s me.”  - Unknown

So now that you know it’s you, and that this market is what you make of it, let’s talk about the seven mistakes most Realtors and investors make with short sale investing.

The mistakes in short sale investing might come as a surprise to many in the real estate industry; after all, the media is filled with news about escalating bankruptcies, banks dissolving overnight and loss of consumer confidence…obviously it’s a buyer’s market.  Unfortunately, availability doesn’t translate into information so the majority of would-be buyers simple don’t understand the who, what, how and why of short sales as evidenced by the seven biggest mistakes below:

1.     Thinking rather than doing. Short sale investors that think about buying but don’t actually ever get around to putting a plan into action are not buyers or investors – just dreamers. Stop procrastinating and take action.

2.     Failure to follow the rules. Each and every bank, buyer or broker has a process that must be followed. One of the advantages of dealing with Short Sales Riches is the ability to learn a proven system that gets results rather than having to start from scratch.

3.     Improperly presenting your case. Make no mistake about it; successful short sale negotiations require a solid presentation to the buyer and the bank. Fortunately for you, there isn’t any need to recreate the wheel – simply adopt what has been proven to work and begin building your own short sale profits.

4.     Failure to take risk. Playing it safe has a time and place but there are times in life when risk is rewarded; ask yourself, how have your stocks and bonds performed over the past few years? Is your job keeping pace with inflation? Can you afford to retire if the current financial trends continue? If you are like most Americans then it is time to take a chance on something different; something you are able to control, something everyone needs.

5.     Substituting Attitude for Accomplishment. With enough credit cards and lines of credit it’s easy enough for nearly anyone to “act” wealthy but when times get tough suddenly things fall apart. Successful and wealthy individuals may not always look rich but they have staying power and actual accomplishments to prove their net worth. Forget finding fame and fortune overnight – success is typically the product of planning, preparation and tireless pro-activity. 

6.     Last minute thinking. It never fails; a flood of offers at the final hour. Unfortunately, last minute thinking puts you into direct competition with all the other procrastinators and eliminates the opportunity to fix potential problems that may arise. Instead, jump in early before the sleepers wake up.

7.     Putting all your hopes into one property. This is particularly true of short-sale newbies; don’t fall in love with a property. Keep your options – and mind- open to different types of properties. Keep the real objectives in mind; profit potential.

More tomorrow…

See you at the top!

 

Chris McLaughlin, J.D., M.B.A.
web: http://www.shortsalesriches.com/welcome.html
e-mail: info@shortsalesriches.com

Phone: (800) 452-7627

 

P.S.: You are going to be on our Webinar tomorrow night aren’t you?  As Jim Rohn said: “If someone is going down the wrong road, he doesn’t need motivation to speed him up.  He needs education to turn him around.”  Get that education now:

https://www2.gotomeeting.com/register/324799291