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Understanding Volatility Versus Risk in Short Sale Investments

by Chris McLaughlin on April 16, 2009

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

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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{ 1 comment }

Some Banks Give Back TARP Funds

by Chris McLaughlin on March 11, 2009

Real Estate News & Commentary by Chris McLaughlin, March 11, 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/870900265

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/870900265
———
The government gives…and now the banks say no thanks. With all the scrutiny (much deserved, in my opinion) these banks have received lately, a few of the well capitalized banks that were asked to participate in the TARP program are now saying that they’d like to return the money and get out of the program. They are tired of the media spotlight, and even though the money came cheap, they don’t want Uncle Sam running their internal operations. So who’s nice enough to send us back the money?

Signature Bank of New York announced that it would return the $120 million it received from the government just three months ago. It indicated that the new restrictions on executive compensation weren’t palatable to them, so they’re ready to return the money. And the rumor mill for who else will return the money continues, but The New York Times reported today that TCF Financial Corporation, Iberia Bank of Lafayette, LA, Goldman Sachs and Wells Fargo are among those who may just give it all back.

So why did they take it in the first place? Actually the big boys like Goldman and Wells were asked to do so. Former Treasury Secretary Hank Paulson asked that all major financial institutions participate so that they wouldn’t be singled out for taking it and therefore a run on the bank would ensue.

The financial markets traded sideways most of today. As of 2:30 PM ET, the Dow Jones Industrial Average was down 38.47 to 6,888.02 and the Nasdaq was up 2.25 to 1,360.53.

Now on to our real estate investing education section …

“You can’t know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive.” Donald Trump

Whether you like Donald Trump or make a mad dash for the remote at the first sign of bad hair, one thing is certain…he thinks big and has been around the block a few times when it comes to real estate. Short sale investors should take note of the above words of wisdom from one of America’s larger than life billionaire real estate investors; trying to do everything your self is a recipe for failure when it comes real estate. Savvy short sale investors understand when to seek outside help and how to avoid the burn-out, excessive cost and time traps that often turn a would-be profitable enterprise into a money pit. The following represent the most common jobs best left to others:

Education. Like Trump said, there simply isn’t any way to acquire all the wisdom you need to make your business thrive; it would require all of your time and effort while leaving you little time to do anything else – like actually invest in short sales! Instead, team up with others that have the skills, knowledge and networks you need. Invest in the best information and education you can afford when first getting started then hit the ground running – your first deal will more than make up for the difference.
Sales & Services. Put a team of hardworking sales and service experts in your courtyard then deduct the cost from taxes. Very few people are able to break even when doing sales and service related work on their own; not only do they take longer and typically yield less impressive results since they are not experts in the area but the IRS excludes deducting for one’s own time unless you are a full-time professional in the area. When you calculate the total cost of hiring others to do the job for you, 9 times out of 10 you will come out ahead by taking the tax deduction and moving on to bigger and better things.
Renovations. While sweat equity may be the only way for some people to get into the game, renovations can be costly, time consuming and expensive to tackle on your very own. Calculate the cost of doing all the work on your own then get creative about hiring help; bartering, hiring day labor or independent contractors can drastically reduce the time required to get the job done at a fraction of the cost. Don’t forget, you can have a company perform all the screening, background, payroll and taxes on your behalf – another major time saver!

See you at the top!

Chris McLaughlin

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

P.S.

The Recession Proof Real Estate Investing webinar is this Thursday at 8:30 PM ET, 5:30 PM PST. Don’t miss out … click here:

https://www2.gotomeeting.com/register/870900265

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

     * 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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A Love Letter from Citigroup’s CEO

by Chris McLaughlin on March 10, 2009

Real Estate News & Commentary by Chris McLaughlin, March 10, 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 at 8:30 PM ET tonight:

https://www2.gotomeeting.com/register/496858047

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/496858047

———–
Can one letter make a difference?

That’s what it seemed like today. Positive words weren’t coming from our President or members of Congress, and yesterday’s interview with Warren Buffett, where the billionaire told everyone that our economy had fallen off a cliff, certainly spooked many investors. But Citigroup CEO Vikram Pandit sought to give his employees some good news about his battered company.

“I am most encouraged with the strength of our business so far in 2009. In fact, we are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007. In January and February alone, our revenues excluding externally disclosed marks were $19 billion,” wrote Pandit. The CEO further stated that its capital strength remained strong and that any “stress test” performed by the government should confirm that. The stress test is likely to take into consideration tangible common equity; Pandit notes that Citigroup has $81 billion in common equity and its tangible common equity ratio stands at 11.9%.

And a few more eyebrows were raised today about the CEO compensation for Wells Fargo’s John Stumpf. Wells Fargo took $25 billion from the Troubled Asset Relief Program but awarded its CEO Sumpf $13.8 million in compensation. This comes on the heels of an investigation by New York Attorney General into the bonuses paid to Merrill Lynch executives’ prior to the company’s sale to Bank of America.

Now on to our real estate investing education section …

Numbers to Know – Personal Debt to Personal Assets Ratio

As short sale investors seek funding to purchase distressed and below market value properties, one important number to know is one’s own personal debt to personal assets ratio. Lenders and banks of all sizes are increasingly cracking down on marginal buyers so prepare to put your best foot forward by making it easy to lenders to like what they see.

The Personal Debt to Personal Assets ratio is easy to calculate and puts a positive spin on many small buyers just breaking into short sale investing. By providing a quick ratio that summarizes the total debt to total asset value, the bank is able to determine how much of your assets are financed versus equity positions. This can also be very useful for seasoned investors that have large equity positions but still carry large loans.

How to Compute

To calculate the personal debt to personal asset ratio simply tally up the total of your personal debt then divide by the total of your personal assets. The final number will be the ratio. For example, let’s assume you hold a current mortgage plus other debt in the amount of $250,000 with a household income of $50,000.

Based strictly upon your debt to income ratio you could be considered a marginal buyer. On the other hand, if you held other assets free and clear in the amount of $750,000 then the personal debt to asset ratio would show $250,000/$750,000 or only 33 percent rage. That means for every .34 cents in debt you owe, you have assets of $1 available. The lower the ratio the better since it shows an alternative source of potential collateral above and beyond that of the real estate in question.

How to Use

Use the personal debt to personal asset ratio rather than debt to income ratio if you have high equity positions, own valuable assets or real estate outright, have low income levels (for example, a fixed retirement income or variable self-employment income) but desire the ability to demonstrate ample assets to secure funding to purchase short sale property. Avoid this ratio is you are already over your head in debt or have a very high income which may be better reflected in the debt to income ratio instead.

How Do You Measure Up?

.80+ = Find another measure…this doesn’t present you in the best light

.60 to .79 = A tough sale to prospective bankers without an extremely compelling deal in today’s climate

.40 t0 .59 = Do-Able once you find the right lender. You are in a solid position with enough equity to cover the new loan even if the value dropped to zero (a highly unlikely proposition).

.20 to .39 = Strong position.

0 to .19 = Expect the royal treatment as lenders scurry to secure a gold-mine like you for their portfolio.

Make sure you sign up for tonight’s webinar at 8:30 PM ET, 5:30 PM PST. Do so my clicking here:

https://www2.gotomeeting.com/register/496858047

See you at the top!

Chris McLaughlin

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

P.S.

Don’t miss this great video testimonial about short sale coaching:

http://www.youtube.com/watch?v=CFp0ylr3mQI&feature=email

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

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

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

     * 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

—

{ 0 comments }

Dow Plunges Below 7,000 as AIG Lost $61 Billion and Needs More

by Chris McLaughlin on March 2, 2009

Real Estate News & Commentary by Chris McLaughlin, March 2, 2009
http://www.shortsalesriches.com/welcome.html

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You know the drill. Hey mom, can I have another dollar? Well, it wasn’t quite like that, but the folks over at insurance giant AIG are coming back and asking for more, and the fact that the government gave the insurance behemoth $150 billion and still needs to up its allowance has investors panicked.

The financial stock got hammered today – Citigroup down 11%, Bank of America down 14%, and Wells Fargo was down 13%. So they hit the panic button and began to SELL. And the Dow Jones Industrial Average now stands below 6,900 for the first time in over a decade. The Dow has been cut in half – in October 2007 it stood over 14,000 and today is below 7,000.

AIG had received a whopping $150 billion from the government so far (Uncle Sam owns 80% of AIG), but it needs more – to the tune of $30 billion more. After all, AIG lost $61.7 billion in its fourth quarter. And its CEO, Edward Liddy, told CNBC that he can’t rule out having to come back for more: “It really depends on what happens to the capital markets from here,” he said. “Back in September we had a liquidity crisis of unbelievably large proportions, and that’s been stabilized. Our cash liquidity is fine right now, but now because the capital markets are in such a freefall we’re fighting another issue, which is do we have enough equity to support the debt that we have.” That’s CEO speak for heck yes we’re coming back for more!

Now, let’s back up for a little reflection on where we stand today with our nation’s economy, and its impact on the overall real estate market…

Let’s first thank President Obama.

He’s the most popular president since Reagan. Or Kennedy.

And I just love the guy! He’s making me and my students millionaires. And his latest budget proposal is going to make it even easier for you to have the same success that we’ve been having.

So let’s talk about how his new budget proposal’s going to make you rich…

See, this economic mess starts and stops with toxic mortgages. It’s that simple. It’s what caused the chain reaction that took down banks, credit, consumer spending, and even the Wall Street hedge funds that bought “commoditized” mortgages.

Here’s the facts: any government spending that does not address fixing bad mortgages will not fix the economy. You cannot spend your way out of debt. It’s that simple!! So let me repeat it for any politicians who may be reading: You cannot spend your way out of debt.

If you don’t believe me, try it!

Understand this: if any bill coming from “Disneyland on the Potomac” doesn’t address bad mortgages, it’s only going to divert money away from the problem. Waste precious resources. And deepen the recession.

Onward.

Now comes our commander in chief, bless his heart, to make matters worse. And before you accuse me of Obama bashing, hear me out…

He’s proposing reducing mortgage deductions on your income tax return. Simply put, he’s raising your taxes if you have a mortgage. The National Association of Realtors, the National Association of Builders, and the Wall Street Journal all say it will cause housing values to slump further. Granted, the tax boost is only on the so-called “rich,” but all three sources unanimously agree that it will slam the middle class too.

Call it trickle-down poverty.

So know this: Obama’s course of action only means more foreclosures, more short-sales, more BPOs, more REOs… can you see why I’m loving it?

Yep, the worse the housing market gets, since we have the absolute best foreclosure and pre-foreclosure systems available, the richer my student’s get.

Easy money, that’s what it is.

Find out for fr*ee how they’re doing it here, and why it’s easier than you may think…

https://www2.gotomeeting.com/register/834885107

By the way, I wasn’t kidding when I used the “m” word. There are actual millionaires being made with our strategy. You can see why our fr*ee webinars are jam-packed. I keep hoping that we will have more lines available. But after a move like his latest one, I’ve got an open $500 bet that any openings will fill up even earlier than usual. Any takers?

I hope so … now on to our real estate investor education section…

What’s Better – Short Sale Real Estate or a 401-k/Other Retirement Account?

Common wisdom says you should work 30 or 40 years, participate in a corporate retirement plan and then hope and pray you have enough funds set aside to carry you through retirement and into old age. Unfortunately, fewer people than ever have access to a defined benefit plan leaving them alone in the fight for future profits.

In addition to the ever declining defined benefit plan, job stability is a increasingly viewed as a relic of a bygone era. In fact, recent research finds most workers remain on a job for less than 5 years….a number of importance since many vesting programs take 5 to 7 years. Against all odds, some Americans make it to retirement while working at the same company but even then, retirement benefits may not be the big help expected.

Given the prospects of spending ones retirement years in poverty, reliance upon Social Security benefits and pension plans or investing in real estate what is the best course of action? Let’s compare the pro’s and con’s of each starting with what can (and does) go wrong with traditional retirement accounts.

Risk #1 – Corporate bankruptcy. Beginning with Enron, millions of retirees and other workers have watched in despair as their former nest eggs shrink due to economic stressors or even outright fraud. Worse, corporations are beginning to shed high cost benefit plans by filing bankruptcy on non-profitable portions of the operation. Restructuring that places non profitable segments of the corporation into subsidiary status is on the rise in order to salvage the company while allowing future obligations to float.

Compare short sales where you control when to hold, when to fold, when to sell and even how often to buy and at what price. Why rely upon others for the financial security needed during retirement when you can count on yourself instead?

Risk #2 – Future Taxation. While many retirement plans are tooted as the best way to reduce the tax hit by deferring taxation into the future when you are likely to be in a lower tax bracket, there is no guarantee that tax brackets will remain the same. In fact, most experts agree the current trend toward inflated debt is likely to result in increased taxation many years into the future. Even worse, discussion surrounding “means testing” is already taking place leading some experts to predict high taxation on future retirement withdrawals well into your retirement years.

Consider your short sale options where you can buy or sell at any time without pre-payment penalties, early withdrawal fees or other costly options designed to part you from your hard earned profits.

Risk #3 – Redundancy. Workers with company invested retirement plans suffer a double risk in the event of a job loss; not only does their income suffer but so does their retirement plan. How many times have you been told to diversify your retirement? It’s a cornerstone to minimizing risk – yet millions of Americans are at greater risk than ever due to the economic downturn by working and investing with the same company.

Short sale real estate provides a much needed diversification for workers worried about how an economic down turn may impact their employer or sector of the industry. Consider the benefits of investing in short sale real estate as a way to increase profits, reduce risk and protect your financial future.

See you at the top!

Chris McLaughlin

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

P.S.

Don’t miss this great video testimonial about short sale coaching:

http://www.youtube.com/watch?v=CFp0ylr3mQI&feature=email

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

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

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

     * 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

—

{ 0 comments }

The Fed Offers Some Comfort to Real Estate Investors

by Chris McLaughlin on January 28, 2009

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

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

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

———

In real estate related market news today…

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

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

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

Now, on to our real estate investing section…

Five Fast Ways to Fund Your Short Sale Empire

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

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

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

See you at the top!

Chris McLaughlin

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

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

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

http://www.shortsalescoach.com
http://www.shortsalesriches.com/welcome.html
http://www.youtube.com/shortsalesriches
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Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…

http://www.shortsalesriches.com/blog
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About the author:

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month

   * Long-time authority on real estate investing
      and rapid flipping of distressed homes. Owns
      portfolio of nearly 100 high-value, high-profit
     properties

    * Owner and Supervising Broker of one of Florida’s
     largest Real Estate firms, running 5 different
     offices, supporting nearly 500 agents, uniquely
     positioning him to help thousands of investors
     make money in the biggest market opportunity ever!

     * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
     in Real Estate Investing, Entrepreneurship, and
      Wealth Building

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