Monthly Archive for June, 2008

Celebrity Foreclosure Justice

Published on June 18, 2008 in General. 0 Comments Tags: , , , .

There has been a lot of press lately about the amount of recent foreclosure filings across the country, with extra fuel being provided by some famous (and infamous) celebrity homes entering the foreclosure process. But is this sparking flames on a fire that has already been contained? And, is all the hoopla justified?

Michael Jackson, the self-proclaimed “King of Pop” almost lost his infamous Neverland Ranch in California to foreclosure. (An investment company stepped in at the 11th hour and took over the loan) Jose Canseco, Ed McMahon, Rep. Laura Richardson of California and Evander Holyfield have properties that are in the foreclosure process. Some are financially strapped and can no longer afford their homes, while others are throwing in the towel and simply walking away.

Some homeowners are walking away from their properties because they owe more than the property is currently worth. Most celebrities can probably afford to lose one property. More than likely, the property up for foreclosure is not their primary residence. Because of WHO they are, they are able to financially recover from a foreclosure loss a lot faster than the average homeowner losing their house to foreclosure.

99% of people go through varying degrees of financial strain in their lives (some more than others). Logically, these bumps in the road of life will hit the rich and famous on occasion. The media jumps on these stories because it sells papers, magazines and boosts TV ratings. The media intimates that if it happening to the rich and famous, we must really be in crisis.

The reality is that only about 2% of ALL mortgage loans are somewhere in the foreclosure process. A majority of homeowners who enter the foreclosure process work out a deal with the lender to save their home from being foreclosed. Some areas of the country are actually seeing an increase in property values and a decline in foreclosure filings. However, these statistics are conveniently left out of media reports – surprise, surprise.

Real estate has always been a reliable investment and will continue to be for a long time to come. In fact, smart and successful investors are buying up the bargains now because they know appreciation is a short time away. It is great time for “buy and hold” investors.

Lease Option real estate investing is becoming a more common strategy for smart investors in this market. A Lease Option investment strategy means signing a lease contract on the property “with an option” to buy with a potential buyer.

There are many details involved in this strategy. It is always a good idea to consult with a real estate attorney before signing any agreements.

A mentor or expert in this strategy can also be helpful in gaining insight into the Lease Option investing strategy. For additional information, see the GuReview.com experts, Andy Heller and James Gage who specialize in this niche.

Oh The Wonderful World of Short Sales

Published on June 16, 2008 in General. 1 Comment Tags: , , .

Short Sales is one of the most popular terms in real estate today. What is a short sale? – It is the obtaining a property for a smaller amount than what is owed on it from the lender.

Because of recently declining prices in homes, banks and lending institutions are making more deals than they have in years making short sales a great opportunity for everyone involved. The huge increase in short sale activity is due to the increase in subprime lending and the Adjustable Rate Mortgages that were written over the last 5 years that are resetting at astronomical rates.

Because these homeowners are now unable to afford their mortgage payments and the homes are worth less than what they paid, they are looking for ways to avoid foreclosure and get out of a potentially bad situation. Enter the short sale….

There are several strategies to find a good deal through a short sale. GuReview.com has a distressed homes search and there are over 480,000 properties in preforeclosure as of today across the country. This is a good place to start researching potential deals in your area. Here is the link to search properties:

foreclosures.gureview.com

There are several methods to contact the properties you have identified as potential deals. Some investors send postcards or letters to these homeowners with catchy marketing phrases to get them to call. Bandit signs are also an effective strategy to market your services and get potential deals. Post the signs in the general areas that you want to target. Some investors actually go knocking to the homeowner’s door to check out the property and see if they may be interested in selling the property.

You have some great possibilities, now what? You know the profitability is there. There are many nuances and details in negotiating and putting together the short sale package to the bank. This can be a daunting and overwhelming process.

Hang in there and stay determined. A good piece of advice? Don’t try to do your first deal on your own without knowing the exact steps you need to take and give you confidence to close the deal. Take a short sales course or seminar to get the information your need. Attend a bootcamp or get a mentor. There are many educational options – the knowledge you gain will provide endless opportunities.

Attention Real Estate Agents! – Get Free Leads and Paid for Driving Traffic

Published on June 9, 2008 in General. 0 Comments

By adding a few simple lines of code to your website, you can now have free buyer leads delivered to your Inbox – at no cost – And get paid to boot!

Here’s how it works – the user searches for distressed properties on your website using Foreclosure.com’s Lava technology. When the user wants to see the local search results, a contact form appears. When the user enters in their name, phone number and email address their information gets emailed directly to your Inbox.

And the best part? When the user signs up for a subscription to Foreclosure.com they will pay you a 25% revenue share for the life of every subscription. There’s nothing to lose – and leads and revenue to gain.

So what are you waiting for? Copy and paste the below link into your browser to sign up:

http://affiliate.foreclosure.com/index.htm

Foreclosure.com is America’s largest provider of preforeclosure, foreclosure, bankruptcy, tax liens and for-sale-by-owner listings. Foreclosure.com is the most accurate and up-to-date database available on the internet. With a comprehensive Learning Center, real estate agent tools, educational opportunities, free calculators, forums and property alerts, Foreclosure.com is THE place to get the facts on distressed properties.

Savvy Investors Find Great Opportunities

Published on June 9, 2008 in General. 0 Comments Tags: , , .

“The way you make money is not following the herd. Lower prices mean greater investment opportunities because there are more motivated sellers and more deals coming on the horizon. Now is definitely the time to buy … but to buy smart.”

That philosophy, spoken by Robert Shemin — Wall Street Journal best-selling author, nationally renowned speaker and major real estate investor — is at the root of successful foreclosure investing in the market today.

An increase in foreclosures translates to more available investment opportunities. And more available investment opportunities creates competition, driving down real estate sales prices across the board.

Here are five strong strategies that Shemin has put together:

1. Buy to hold — Historically, long-term investors almost always do well. A long-term investment strategy is five to seven years plus. Medium is six months to five years and short-term is less than six months.

2. Buy cash flow — Speculators take a chance on rapidly appreciating properties and risk a softening market; however, investors look for investments that produce cash flow from day one. Be an investor … go for cash flow.

3. Find secret appreciating markets — Look for areas that didn’t appreciate a lot in the past four years and are now steadily climbing or where there is strong job growth. These translate to housing demand and are the best-kept secrets in real estate.

4. Uncover “hidden” markets — There are exciting markets within markets that make strong investment opportunities. For example, the Las Vegas market is very soft right now, but in the low- to moderate-income there is a strong demand for new homes (starter homes) in the $200,000 to $250,000 range. So there is a strong market within a weaker one.

5. Buy international — Don’t be afraid to invest in other countries. Do your homework. Talk to other investors. Go to a seminar. Then make your choice.

He has been involved in more than 1,000 real estate transactions throughout his successful career. To find out more about Robert Shemin and his investment strategies, see his Bio Page.

Profiting from Real Estate Investment Clubs

Published on June 9, 2008 in General. 0 Comments Tags: , , , .

Real Estate Investment Clubs (REI Clubs) have long been touted as an excellent means of learning about real estate investing, finding deals and networking with other investors. It is important for beginning investors to find clubs in their area that are reputable and have a dedicated group of members and hold regular meetings and networking opportunities.

Trustworthy clubs will let you attend your first one or two meetings for free. Here are some more tips to finding a great REI club to help you start your real estate investment business:

  • Beware of the Sell-fest – there are a few bad apples out there that are only out to sell you an expensive product or training course. Make sure your REI Club provides value and good education tools as part of the small yearly membership fee. The average annual fees for individual range between $100 – $250 a year. If you club charges over $300 you should probably think of trying another club.
  • Good REI Clubs have ACTIVE and EXPERIENCED investors as members. Research here is important. Clubs that have skillful investors as members are a goldmind for great deals, tips and in many cases – mentoring. At meetings you will also find real estate agents and brokers who specialize in buying and selling for investors, contractors and other industry related services.
  • Before collaberating with aynone on a deal, get to know them and ask for a couple of references. Finding a knowlegeable investor to be your mentor when you are starting out, may help you avoid costly mistakes.