Monthly Archive for January, 2007

Gearing up for a year of heavy foreclosures

Published on January 31, 2007 in General. 0 Comments

I heard some pretty daunting figures on the radio this morning regarding the predicted foreclosure rates.

The main issue here was the effects of subprime lending in what you could call some rather hasty lending practices. With the housing market bursting with opportunity it seems lenders were rushing to offer home loans to whomever qualified, which apparently was just about anybody.

According to the report on N.P.R. 1 in 5 subprime loan borrowers will end up in foreclosure in the coming year. The Center for Responsible Lending estimates that those number account for roughly 2.2 million homeowners falling victim to risky subprime lending across the nation.

It’ not just subprime borrowers either; the recipients of adjustable rate mortgage loans are also finding themselves in quite the bind. In many cases borrowers received high-risk adjustable rate loans packaged in an attractive low start rate. Many were approved without consideration of whether or not they could afford these loans after they would inevitably “reset” for the worst.

Forecasters estimate that over $1 trillion in ARMs will “reset” with increased rates this New Year, making 2007 quite the playing field for real estate investors nationwide.

The reason behind many of these adjustable rate mortgages heading into foreclosure is due impart to the difficulty of refinancing into a traditional 30-year fixed mortgage. Unfortunately, the homeowner’s payments would still be higher than their initial low monthly payments.

Additionally, many homeowners will not qualify for such refinancing due to the current housing market slump. In some markets home values are now less than what the homeowner paid when they bought the home during the real estate rush. Those who received 100% financing will especially be feeling the pressure this coming year.

On the upside the market is blossoming with opportunity in another realm. Investing in foreclosures will certainly be on any real estate investor’s to-do list for 2007. The rise in foreclosures will also provide affordable housing alternatives for those homebuyers left in the dust from the last real estate boom.

New GuReview Discussion Forum

Published on January 16, 2007 in General. 0 Comments

We have created a new Discussion Forum for students and seminar attendees of our featured gurus to post their opinions, views and comments.

Each featured guru has their own Discussion Forum which is located on their Bio page.

Please feel free to speak your mind and happy posting!

Sincerely,

The GuReview Team

Real Estate Investing Trends

Published on January 10, 2007 in General. 1 Comment

Considering real estate investing? Or looking for the next big idea in real estate? People nationwide are continuously searching for new ways to sink their teeth into the lucrative market that is real estate investing. Before you choose your next big move in real estate be sure to analyze current market trends and choose a strategy accordingly.

There are several avenues to take within the rather large realm of real estate investing. Whether you execute more traditional types of real estate investing such as buying low and flipping or accumulating rental properties, there are several profitable routes to take. Consider using a combination of strategies in order to diversify your real estate portfolio and ultimately maximize profits.

One significant trend forecasted for the coming years is the rise of foreclosure investing. Due impart to exotic loans and the rise of interest rates, the amount of foreclosures nationwide is predicted to sky rocket in the coming year.

Perhaps you’re more interested in a preemptive move? Along the same vein as foreclosure investing is the trend of pre-foreclosure investing. Some of the same sites that offer foreclosure lists also offer pre-foreclosure listings. You can even get helpful tips on approaching owners who are in a financial bind. With pre-foreclosure investing you can avoid the auctions and wield more control over your transaction.

With all the resources available online, foreclosure and pre-foreclosure investing is much easier than once considered. Some websites such as foreclosure.com contain listings for foreclosures and pre-foreclosures. They are the only site I know of that lists the two types of distressed properties separately facilitating much easier research. Foreclosure.com also has helpful tools and resources making them a one-stop real estate investment shop.

Along with foreclosure and pre-foreclosure investing seems to be the trend of holding the property as opposed to flipping and selling it right off the bat. Because the market has seen a rather abrupt slowdown the profit is no longer in the flip. Consider other options such as residual income from a rental property. Or it may be wise to invest more time and money to improve the property seeing as though there is no longer a need for conveyor belt housing.

Whatever your real estate flavor of the month may be, one thing is certain, real estate investing will always be a safe bet.

REI Product Review – Regular Riches Action Program

Published on January 3, 2007 in General. 0 Comments

I recently completed the Regular Riches Home Study course which was created by Andy Heller and Scott Frank. Their books, Buy Low Rent Smart Sell High and Buy Even Lower have been recommended by highly regarded resources as Kiplinger’s, Fortune Magazine and Inman news.

The package I received arrived with an abundance of materials. The package included 3 binders full of information, accompanying audio CD’s for each section, a couple of role paying type bonus CD’s, a resource packet with form letters and a real estate terms glossary.

Andy Heller and Scott Frank show step by step in great detail how to build and buy properties the right post foreclosure properties through a variation on the lease/puchase method. The material is comprehensive and comes in 3 binders with accompanying CDs.

One of the greatest details is how they demonstrate the highest amount you should pay for the properties you invest in, what they call the “Ceiling Price.” This allows the investor to calculate what they can afford, based on specific steps in the buying process. I found this very useful.

Another constructive part of the Action Program is how to pick your lease/purchaser and establishment and managing the lease/purchaser relationship. The contracts and documents are included with the program so you do not have to re-invent the wheel.

There were also additional CDs with the package which included role playing different scenarios when negotiating with banks, real estate agents and lease/purchasers as well as a separate package about contracts and documentation.

There is only one small drawback to the Regular Riches Action Program…there is such an abundance of material it is a 2-3 month undertaking to complete. This program is for serious investors who want long term investment success.