Archive for the 'General' Category

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Plan for Success in 2009

Published on December 11, 2008 in General. 1 Comment Tags: , , .

It’s the most wonderful time of the year – the holiday season is upon us and the year will come to a close before we know it. We have all tried to stick to those New Year’s resolutions, but how often do we fail? A few years ago, I decided to forego the negativity of New Year’s resolutions and start focusing my year on my goals. In this article we discuss realistic goal setting to format a plan for success in 2009.

Make sure you are setting a goal you truly want to accomplish – this sounds simple enough. In real estate, it is important to have a lot of knowledge about your local market and the type of investing you want to focus on (and make a living doing it!). If you set a goal this year to learn to close short sales quickly, make sure you have working knowledge of the short sale process. You should ask yourself whether you really want to pursue this or are you jumping on someone else’s bandwagon?

Aim high - Even if you do not reach the entire goal, if you are serious and work hard to attain your goal you will still accomplish a large portion of what you set out to do.

Write down your goals - they should be as detailed as possible without any negative connotations. For instance you write, “I want to make $250,000 income this year with real estate.” This is a general goal without much detail on how you will accomplish it. To be more concise you write, “I want to flip a minimum of 25 houses this year in Anytown, USA with a minimum profit on each transaction of $10,000.”

Keep your goals to yourself. You may encounter negative feedback from others (like fellow investors, family or friends) who do not share your philosophy. You should share your goals with your mentor or coach if you have one. They can steer you in the right direction and help you to achieve your goals and keep you in a positive frame of mind.

Are the decisions you are making helping to achieve your goals? – Before you make final decisions, you should always pose this question to yourself. If the decision is going to bring you further away from achieving your ultimate goal, you should rethink that decision. It sounds easy, but people often make decisions on the spur of the moment without thinking through the process.

Review your goals often. – It is important to review your goals on a regular basis so you can measure each small success. Making a few mistakes along the way is part of the process and will help you to hone your goal-setting skills.

Use Your IRA to Invest in Foreclosures: 5 Things You Need To Know

Published on September 24, 2008 in General. 0 Comments Tags: , , .

By Jeffrey A. Roth, Equity Trust Company

Investing in a foreclosure property with your IRA can be a great way to increase your available funds to make deals and possibly grow any earnings tax-free. Yeah, tax-free earnings. For those veteran investors (and learned newbies), tax-free earnings is exactly what you have been looking for. That is one of many benefits of investing with your self-directed IRA that can help build your wealth portfolio.

Here are a few points everyone needs to know to help get started:

1) Get that foreclosure.
Your IRA can purchase a foreclosure property which could free up other available funds for additional investments. Notice the ‘Your IRA’ part of that statement. Since your IRA owns the property, all expenses that go into the property must come from the IRA account. Because of this, your IRA can reap certain tax advantages (#4). If your IRA doesn’t have enough to own and maintain an investment property outright, you could always own a specified portion of a home through a partnership (undivided interest) or look into non-recourse loans.

2) Go ahead, sell it or rent it out!
If you decide to rent or sell a property, that decision is completely up to you. Either way, it will help you reach your investing goals if you’re using a self-directed IRA. The funds received from a sale or income from renters would go directly toward growing your IRA account, which in turn, will help you make more out of your investments.

3) Tax-Advantages!
The two types of IRAs, Traditional and Roth, have different tax advantages. With a Traditional IRA investment, you would not have to pay tax on any earnings until you started making qualified distributions at 59.5 years old. The idea is that you could possibly be in a lower tax bracket at that time and enjoy the fruits of your labor with less tax applied than you do today.

The Roth IRA allows you to grow all earnings tax free (meaning you never have to pay tax on it) since the money used to fund the account is ‘after-tax’. Paying tax later at a lower rate (Traditional) or not ever paying tax on earnings (Roth) makes that foreclosure investment look even better, doesn’t it?

4) Where’s your IRA at?
To invest in foreclosures with your IRA it must be a self-directed IRA. Unfortunately, most financial institutions will not allow you to self-direct your IRA investments because they want you to invest in their stocks, mutual funds, and bonds portfolio. To get out of that trap and start choosing where your money is invested (i.e. foreclosures), you need the assistance of a qualified and experienced self-directed IRA custodian. A custodian acts on your behalf to facilitate your self-directed investments through IRAs, 401ks and other small business retirement accounts.

5) Do your research.
Self-directing IRA investments in real estate is perfectly legal and has been since 1974. You should be aware of the guidelines the IRS has published about IRAs (IRS Publication 590. You wouldn’t invest in a home without knowing about the property, would you? Knowing your investment funding options should be treated the same way. Consult your financial team (custodian, CPA, and/or lawyer) to learn as much as you can to maximize your investment’s tax benefits.

Do some homework, find the right self-directed IRA custodian, and free up additional capital to start growing your foreclosure investments tax-free! Using a self-directed IRA is a great way to build out your investment portfolio and reach your financial goals.

Jeffrey A. Roth is the Real Estate Channel Manager at Equity Trust Company. Equity Trust Company is an experienced self-directed IRA custodian with 34 years of service and is recognized as an industry leader with over $3 billion in managed assets. Learn more about self-directed IRAs at http://www.trustetc.com.

Ordinary Joes and Real Estate Pros Make Money In Today’s Market

Published on September 5, 2008 in General. 0 Comments Tags: , , .

Faced with ballooning mortgage payments and the threat of bank foreclosure, more and more homeowners and investors are turning to real estate auctions to sell houses quickly, easily, and for a fair price.

In today’s sluggish economy, auctions are becoming increasingly popular. And this trend shows no sign of slowing down anytime soon. Real Estate Auctioneering is a niche growing in popularity. Just turn on the TV late at night and you will see what I mean. Those late night commercials promoting a local real estate auction are hard to miss.

Real Estate Auctioneering companies are seeing an upward trend in real estate professionals who want to learn how to conduct auctions. With a bit of training, you can learn how to conduct an effective real estate auction. This a a new way for savvy, resourceful real estate investors to capitalize on a growing trend.

Real Estate professionals who are trained auctioneers can also be consultants with homeowners on how to market their properties for a quick and equitable sale. They can also help homebuyers with information on what to do at an auction and get the best deal.

With all the recent publicity more and more homeowners anxious to sell and they want more information on how to get their home in a local auction. Will you be the first real estate professional in your community to jump on this opportunity?

For more information on real estate auctions and how to become an auctioneer, go to AuctionMentoring.com

Opposing Views on Fannie and Freddie

Published on July 17, 2008 in General. 0 Comments Tags: , , , .

The news on July 11th that Freddie Mac and Fannie Mae are in trouble sent the markets into a tizzy and stocks plummeted. Now that the government has decided to step in and help bail them out, there are a multitude of varying opinions on how this will affect lending practices and the different tactics that arise to accommodate these changes.

The NAR (National Association of Realtors) has the following statement on their website, “The National Association of Realtors® welcomes the strong response this weekend by the Treasury Department and the Federal Reserve Board in response to the market turmoil and apparent overreactions that began last week affecting Fannie Mae and Freddie Mac. The health of the American economy depends on Fannie Mae and Freddie Mac and the steps taken by the U.S. government make clear that the role of Fannie and Freddie, in making fair and affordable mortgage loans available for home owners and home buyers, must not and cannot be interrupted.

“We support the federal government’s actions and authorization to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in the financial markets. Fannie and Freddie play a central role in our housing finance system, and we agree that they must continue to do so as we work through the current housing correction.”

Lyndon Larouche is a top economist and former presidential candidate who has somewhat “predicted” the downfall of Fannie Mae and Freddie Mac. He issued a statement this past weekend, “The financial system is already dead. It cannot be saved.” LaRouche expanded: “If any of the reports of a planned bailout of the two big mortgage lenders, by the Treasury Department or the Federal Reserve are true, I say, ‘Forget it.’ Any such efforts to delay the funeral of the present global financial and monetary system will only make matters worse. A bailout will cause an accelerated hyperinflationary explosion, far worse than the hyperinflation that hit Weimar Germany in the autumn of 1923. Back then,” LaRouche continued, “Germany had a gun pointed to its head. The gun was called the Versailles Treaty, and Germany had no choice. Today, the United States has a choice. I spelled out the choice in numerous recent locations.” He goes on, but you get the point.

We have already seen a tightening in mortgage approval standards. Proof of income, higher credit scores and minimum deposits are now required. The tightening in lending practices will more than likely continue for the next couple of years.

Is this the “end of the world” as we know it? Certainly not! Buying and selling real estate is a permanent part of our existence. People will always have a need to buy/sell property. They change jobs and have to move, have more children and need more space, or a family member passes away. Economic shift may put a pothole (sometimes a deep one) in the middle of the road, but the road will never close on real estate.

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.

    • Building Your Team of Real Estate “Superstars”

    Published on January 14, 2008 in General. 0 Comments

    Bulding a real estate team is recommended by many successful real estate investors. Having a trustworthy team of professionals alleviates professional real estate investors with an important asset – time. Some real estate investors try to do everything themselves, creating a shortage of their time to chase after the next great deal. Thriving real estate investors build a team they can rely on and trust. The following are some team members to consider when deciding to grow your business and building your real estate team.

    An REO and Investment Agent – An experienced investment agent can be a powerful ally. They find the best deals in your market.

    Your Mortgage Broker – Good to have a mortgage pro on your side. When you use the same broker for every deal, they will do their best to get your qualified for the best loans.

    A Contractor – A good and reliable contractor is a valuable asset on your team and can advise you on repair estimates and may even make you aware of a deal-killing issue before you close.

    There are many other specialists and experts that can make great associates in your real estate business. It is critical to every investor to know how to choose the best professionals in their local markets. Leap Into Prosperity is an upcoming event that is full of information on building your dream team of real estate Superstars. They have also put together 6 of the nation’s top national trainers that are flourishing in today’s real estate market.

    For more information please visit www.leapintoprosperity.com.