Seller Financing Opportunities

Since the mortgage meltdown sellers have decided to take matters into their own hands.  Everytime I look on the MLS I see more owner financing properties on the market.  The basic premise of the industry is that people will always need to buy and sell real estate.  But, as a buyer one must remember the old saying, "Buyers Beware", still holds true.

Remember, take caution purchasing from sellers when using less than orthodox, traditional lending methods.  Don't be vamboozled.  When purchasing from a seller one should insure any existing liens or emcuberances are either satisfied or agreeable with one's transaction.  Don't cut corners, trust in chance, or assume that all participants to the transaction have your best interest at heart.  I hear so many horror stories where trusting buyers have been swindled out of thousands of dollars attempting to purchase homes from less than honest individuals.

A few things that I would question in seller financing transactions are:

1. Who owns the home?  Are all parties represented and/or aware of the proposed transaction?
2. Is the home free and clear?  If not, non-approval assumptions were done away with by Pres. Reagan.
3. Are you being represented by a realtor or attorney?  Why or Why not?
4. Is the closing taking place at a title company? Why or Why not?
5. Are the terms of lending commensurate with available loan programs?

These are just of fewof the many questions I would ask.  There's also the value and condition of the home itself.  Currently, there's alot of great 'Owner Financing', real estate deals on the market.  Make sure to exercise due diligence and seek the advice of skilled professionals.

"Without counsel purposes are disappointed: but in the multitude of counsellors they are established." Proverbs 15:22

For a List of Owner Financed Homes in the Houston, Texas Area CLICK HERE!

Real Estate High Road!

Top 15 Ways to Build Your Subscriber List
Email marketing can be profitable for any business, no matter what kind of product or service you offer. It is significantly cheaper than other advertising methods and, if done right, helps build loyalty and trust with customers. As a result, you generate more sales and more profits!

The foundation for successful email marketing is a targeted, permission-based email list. Marketers call contact lists their 'goldmine' because it can generate much of their sales revenue. If you've built up a list of opt-in subscribers that are qualified and interested in what you have to offer, then you've completed the first step and are on your way. Now it's time to 'mine' for gold!

Below you'll find several list-building and retention ideas that will help you get the best results from all your email marketing activities:

Provide useful, relevant content. Your visitors will not give you their email addresses just because they can subscribe to your newsletter free of charge. You have to provide unique and valuable information that will be of interest or use to them.

Add a subscription form to every page on your website. Make sure it stands out so it is easy to find. If it doesn't look cluttered, you may want to include more than one on some pages. For instance, if your opt-in form always appears in the top-left corner of your site, you may want to add one at the end of your most popular articles.

Add subscription forms to your social media pages. Make sure that you don't waste this valuable source of revenue opportunities. Integrate your sign-up forms with Facebook and more!

Make it easy for readers to sign up. The more information you request, the fewer people will opt-in. In most cases, a name and an email address should suffice. If it's not necessary, don't include it here. You can always survey them once they're customers! We do recommend that you provide a link to your Privacy Policy however.

Publish a Privacy Policy. Let your readers know that they can be confident you will not share their information with others. The easiest way to do this is to set up a Privacy Policy web page and provide the link to it below your opt-in form. (Note: If you don't have one, put the words 'privacy policy generator' into a search engine and you should be able to find a suitable form to use.)

Provide samples of your newsletters and Ezines. This lets potential subscribers review your materials before they sign up to determine if it's something they'd be interested in.

Archive past newsletters and articles. An online library of past newsletters and articles is both appealing and useful to visitors and builds your credibility as an authority. In addition, if your articles are written with good SEO techniques in mind, they can increase traffic to your website through enhanced search engine positioning.

Give gifts subscribers can actually use. Offer an opt-in bonus for joining your subscriber list! Write an ebook or provide a PDF business report, or even hire a programmer to create downloadable or web-based software. But don't limit yourself to offering gifts to opt-ins. Give them out when your readers fill out a survey, provide a testimonial, success story, or a great product idea. Let them know when they can expect the next gift offer. Everyone likes to get something for free! And if you pass out 'goodies' throughout the year, your subscribers will feel truly appreciated − and that's good for business!

Ask your subscribers to pass it on. Word of mouth is a powerful viral technique that works great with email marketing. If your subscribers find your content interesting, amusing or informative, they'll probably share it with their friends. This can be a great source of new customers, so make sure to remind them to 'pass it on'.

Let others reprint your newsletter as long as the content is not modified. If you're happy to share your content with the universe, then why not! Many webmasters and newsletter publishers are actively looking for high-quality content and, if they reprint your newsletter, you'll get new subscribers, and more traffic and links pointing to your site.

Include a 'Sign Up' button in your newsletter. If you're using plain text instead of HTML, be sure to provide a text link to your subscription page. You may feel that this is not required because the subscriber is already on your list, but remember that readers will forward your newsletters to others, or reprint them online. Make it easy for them to subscribe!

Add a squeeze page. A squeeze page has one goal − to acquire opt-ins and build your list. Think of it as a mini-sales letter to go along with your subscription or opt-in gift. It should feature a strong headline and a couple of powerful benefits that should make subscribers salivate to sign up! Once created, use a service such as WordTracker to find hundreds of targeted keywords, and promote your offer using pay-per-click advertising from Google, MSN and Yahoo. Now that should make a splash!

Include testimonials on your squeeze page. This is crucial. Put one or two strong testimonials from satisfied customers on your squeeze page. This can be in any format, but you may find that multimedia (audio or video) is more 'believable' and inspires more people to action. To further enhance believability, get permission to use actual customer names, locations and/or urls (Don't use 'Bob K, FL'). Add a note inviting others to participate. After all, it's free publicity!

Blog religiously. Blogging is a great way to communicate with prospects and potential customers, and creates a nice synergy with your email marketing. Be sure to include your newsletter sign-up form on each page of your blog. You can start a free blog at Blogger or WordPress.

Post on other blogs. Post thoughtful comments and information on similar blogs with a link to your squeeze or opt-in pages. Also comment on others' blogs through trackbacks. In most cases, your comments will be posted on their blogs with a link back to your site. This is an easy way to generate new traffic and subscribers, and get your brand out there!

How To Buy Tax Lien Property - STep-by-Step

Buy and sell homes easily using just your laptop or PC …
Even while laying in bed … and make $100,000's without
ever having to leave your home! - Guaranteed!!

The Difference Between a Short Sale and a Loan Modification

I was asked this question on one of my sites recently so, I decided to make it a blog post:

A short sale is where the original lien holder/lender agrees to accept less than the principal amount owed on the remaining balance of the mortgage loan. For instance, let's say the remaining balance on the loan is $100,000. In a short sale situation, the lender may agree to accept an amount quite less than the remaining balance i.e. $65,000. In such cases the reason for a reduction in the principle amount owed is usually because of depreciating property values in the same area as the subject property/property in question.

A Loan Modification is actually what the term means. The Lien Holder/Lender agrees to re-amortize the remaining balance of the loan. In this case the arrears/unpaid mortgage payments are rolled into a new lump sum and mortgage payments are re-calculated.

I acually specialize in loan modifications an have seen huge success reducing monthly payments for a great number of clients. Most recently, I helped a client lower payments from $1800 to $1100. Contrary to many naysayers...current economic conditions are perfect for loan modifications. The current administration is giving money away like drunkards. As the saying goes, "an economic disaster is a terrible thing to waste". I recommend you contact me and obtain the Obama Modification.

Whether you voted for Obama or not, a 2% mortgage is a hell of thing to pass up. All that's needed to qualify is for you to prove that you can't afford you current mortgage. Wow! That's a no-brainer. Take if from the Brainionare, this is a deal you can't afford to miss!

I was talking to a close relative who informed me that he was upset. He stated that he voted for the man and didn't qualify for all the free money currently in circulation. I told him that times have changed. It used to be that if you were stable and made plenty of money where you didn't need bank money, banks chased you down the street trying to loan it to you. Now days the system is bending over backwards to give breaks to individuals who who can't afford the homes they are in.

With a loan modification one does not need to qualify based on credit. Credit isn't even considered. Also, a reduction in income is favorable to one's modification package. Even though each lender has different guidelines, ....i.e. some don't modify second loans, some will try and force borrowers into forbearance, some will not work with third party entities, some will extend higher trial periods. I have the complete list of banks and their various guidelines. If you are needing relief from a high mortgage, I can help. I've even stopped several foreclosures.

If you are still in a adjustable mortgage or if your home has depreciated in value you are automatically approved! Your lender won't tell you this! Why? Because modifications are handled by the loss mitigation department and if you are making you payments on time guess what?.....You're not a loss to them....lol

Feel free to contact me with questions
dick.g9@gmail.com

Heating and Air Tips

Aug 14, 2009 6:59 pm US/Central
City Government Closed For Business On Monday

Raises for Houston top national level.

"Houstonians got bigger raises than workers in most other parts of the nation, according to data released Wednesday by the U.S. Bureau of Labor Statistics.
For the year ending in June, workers in Harris, Montgomery, Fort Bend and Galveston counties, along with eight surrounding counties, received an average 2.1 percent wage increase.
Nationwide, the average was 1.6 percent.
“Houston's economy in general is holding up better than the national economy,” said Cheryl Abbot, regional economist for the bureau in Dallas. “Or should I say that Houston's economy hasn't declined to the extent the national economy has.” READ ENTIRE ARTICLE....

Say No To Socialized Health Care

We should each take the time to read this most controversial health care bill. I found this bullet list on line. For a quick overview of the bill, simple cross check it out against some of the bullet points. I found this method much quicker than reading the entire bill. We are seeing something very historic in our form of government. It's called Mob Rule! It usually cycles after a long period of democracy.

Health Care Bill in Bullet Form:

48 Important Things to Know about Obama’s Healthcare Plan – no matter what your politics might be, you had better read them very carefully! This is the TRUTH about ObamaCare!
Page 22: Mandates audits of all employers that self-insure!
Page 29: Admission: your health care will be rationed!
Page 30: A government committee will decide what treatments and benefits you get (and, unlike an insurer, there will be no appeals process)
Page 42: The “Health Choices Commissioner” will decide health benefits for you. You will have no choice. None!
Page 50: All non-US citizens, illegal or not, will be provided with free healthcare services.
Page 58: Every person will be issued a National ID Health card.
Page 59: The federal government will have direct, real-time access to all individual bank accounts for electronic funds transfer.
Page 65: Taxpayers will subsidize all union retiree and community organizer health plans (read: SEIU, UAW and ACORN)
Page 72: All private healthcare plans must conform to government rules to participate in a Healthcare Exchange.
Page 84: All private healthcare plans must participate in the Healthcare Exchange (i.e., total government control of private plans)
Page 91: Government mandates linguistic infrastructure for services; translation: illegal aliens
Page 95: The Government will pay ACORN and AmeriCorps to sign up individuals for Government-run Health Care plan.
Page 102: Those eligible for Medicaid will be automatically enrolled: you have no choice in the matter.
Page 124: No company can sue the government for price-fixing. No “judicial review” is permitted against the government monopoly. Put simply, private insurers will be crushed.
Page 127: The AMA sold doctors out: the government will set wages.
Page 145: An employer MUST auto-enroll employees into the government-run public plan. No alternatives.
Page 126: Employers MUST pay healthcare bills for part-time employees AND their families.
Page 149: Any employer with a payroll of $400K or more, who does not offer the public option, pays an 8% tax on payroll
Page 150: Any employer with a payroll of $250K-400K or more, who does not offer the public option, pays a 2 to 6% tax on payroll
Page 167: Any individual who doesn’t have acceptable healthcare (according to the government) will be taxed 2.5% of income.
Page 170: Any NON-RESIDENT alien is exempt from individual taxes (Americans will pay for them).
Page 195: Officers and employees of Government Healthcare Bureaucracy will have access to ALL American financial and personal records.
Page 203: “The tax imposed under this section shall not be treated as tax.” Yes, it really says that.
Page 239: Bill will reduce physician services for Medicaid. Seniors and the poor most affected.”
Page 241: Doctors: no matter what specialty you have, you’ll all be paid the same (thanks, AMA!)
Page 253: Government sets value of doctors’ time, their professional judgment, etc.
Page 265: Government mandates and controls productivity for private healthcare industries.
Page 268: Government regulates rental and purchase of power-driven wheelchairs.
Page 272: Cancer patients: welcome to the wonderful world of rationing!
Page 280: Hospitals will be penalized for what the government deems preventable re-admissions.
Page 298: Doctors: if you treat a patient during an initial admission that results in a readmission, you will be penalized by the government.
Page 317: Doctors: you are now prohibited for owning and investing in healthcare companies!
Page 318: Prohibition on hospital expansion. Hospitals cannot expand without government approval.
Page 321: Hospital expansion hinges on “community” input: in other words, yet another payoff for ACORN.
Page 335: Government mandates establishment of outcome-based measures: i.e., rationing
Page 341: Government has authority to disqualify Medicare Advantage Plans, HMOs, etc.
Page 354: Government will restrict enrollment of SPECIAL NEEDS individuals.
Page 379: More bureaucracy: Tele-health Advisory Committee (healthcare by phone).
Page 425: More bureaucracy: Advance Care Planning Consult: Senior Citizens, assisted suicide, euthanasia?
Page 425: Government will instruct and consult regarding living wills, durable powers of attorney, etc. Mandatory. Appears to lock in estate taxes ahead of time.
Page 425: Government provides approved list of end-of-life resources, guiding you in death.
Page 427: Government mandates program that orders end-of-life treatment; government dictates how your life ends.
Page 429: Advance Care Planning Consult will be used to dictate treatment as patient’s health deteriorates. This can include an ORDER for end-of-life plans. An ORDER from the GOVERNMENT.
Page 430: Government will decide what level of treatments you may have at end-of-life.
Page 469: Community-based Home Medical Services: more payoffs for ACORN.
Page 472: Payments to Community-based organizations: more payoffs for ACORN.
Page 489: Government will cover marriage and family therapy. Government intervenes in your marriage.
Page 494: Government will cover mental health services: defining, creating and rationing those services.

What do we do to slow down the cycle? I'm really not sure because,....the time clock has started. Once the time clock starts and the system learns that it can become a self-contained entity, totally oblivious to the requests of it's subjects, then self actualization begins to take place. The system has orders to follow. There's a higher power who has commanded the system to do certain things. The mixure of clay and iron is quickly dominated by the iron part of the mixture.

Suddenly, carbon based life forms and entities are poising a danger to the system. The masses are but cattle. They seem to easily after lies. One could hope and may think that placing republican politicians in office during next elections would solve the problem. I dunno, I think this is incorrect. I don't think at this point the outcome can not be slowed down. This system's ultimate goal and command is world domination and to that effect men whose breath is in their nostrils are merely pawns.

Other Related Readings.
Daniel 2nd Chapter
Ocher
Ochlocratic Form of Government

I thank God that these events are also signals to those who are willing, that God's system of government is also available for immediate access.

Big Money In Commercial Fixer-Uppers!

I just got off the phone with a Minister in SW Houston who's going thru a divorce. He's selling an old run down commercial structure that was once used for as a health care facility. The amazing thing is that he just wants out. He's flexible with price and terms.

This started me to thinking about the vast opportunities available in off the road...off the beaten track commercial property investing. There's more opportunity than there is demand. I wanted to post a few thoughts on how to find these great values.

How do you find these gems?

Just look for yourself. As you're riding around town put 2 + 2 together. I kicked myself for one of the deals that I didn't take action on. I guess it was 3 or 4 years ago when Pastor Joel moved his mega church into the old Houston Summit also know as the Compaq center. I remember driving past there tons of times and noticing this run down commercial complex near to that location. I used to say to myself...."somebody is gonna get rich off that complex." Well guess what? Every commercial property owner in close proximity to Lakewood Church is raking in big buck! The area has changed so drastically that I can't even tell which structure is in the same location as that old run down building. So, look for opportunities where others don't.

Never assume that the distressed property isn't for sale. If you can contact the owner and negotiate a deal before it's listed, you can reap huge rewards.

Some of the places that you can look:

Online services, Realtors, Property Managers, Attorneys and Accountants, Lenders, and as mentioned above...driving around town.

That's all for now gotta go to work! Leave a comment if you want regular updates on this topic. I'm going to discuss some really good stuff.

What's a Hard Money Loan?

From Wikipedia, the free encyclopedia:

A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds based on the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers.
The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and not yet qualifying for traditional financing. Whereas hard money often refers to not only an asset-based loan with a high interest rate, but can signify a distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring.

Many hard money mortgages are made by private investors, often in their local area. Usually the credit score of the borrower is not important. The loan is purely against the collateral of the property. Typically the maximum loan to value is 65-70%. That is, if the property is worth $100,000 you can borrow $65,000-70,000 against it. This low LTV is to cover the lender if the borrower does not pay and they have to foreclose on the property

Loan structure
A hard money loan is a species of real estate loan collateralized against the quick-sale value of the property for which the loan is made. Most lenders fund in the first lien position, meaning that in the event of a default, they are the first creditor to receive remuneration. Occasionally, a lender will subordinate to another first lien position loan; this loan is known as a mezzanine loan or second lien. Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the loan-to-value or LTV ratio and typically hovers between 60-70% of the market value of the property. For the purpose of determining an LTV, the word "value" is defined as "today's purchase price." This is the amount a lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be sold in a one- to four-month timeframe.

This value differs from a market value appraisal, which assumes an arms-length transaction in which neither buyer nor seller is acting under duress. Below is an example of how a commercial real estate purchase might be structured by a hard money lender:65% Hard money (Conforming loan)20% Borrower equity (cash or additional collateralized real estate)15% Seller carry back loan or other subordinated (mezzanine) loan

Cross collateralizing a hard money loan
In some cases the low loan to values do not facilitate a loan sufficient to pay the existing mortgage lender off in order for the hard money lender to be in first lien position. Because securing the property is the basis of making a hard money loan, the first lien position of the lender is usually always required. As an alternative to a potential shortage of equity beneath the minimum lender Loan To Value guidelines, many hard money lender programs will allow a "Cross Lien" on another of the borrower’s properties. The cross collateralization of more than one property on a hard money loan transaction, is also referred to as a "blanket mortgage". Not all homeowners or commercial property owners have additional property to cross collateralize. Cross collateralizing or blanket loans are more frequently used with investors on Commercial Hard Money Loan programs.

Commercial hard money
Commercial hard money is similar to traditional hard money, but may sometimes be more expensive as the risk is higher on investment property or non-owner occupied properties. Commercial Hard Money Loans may not be subject to the same consumer loan safeguards as a residential mortgage may be in the state the mortgage is issued. Commercial hard money loans are often short term and therefore interchangeably referred to as bridge loans or bridge financing.

Commercial hard money lender programs
Commercial hard money lender and bridge lender programs are similar to traditional hard money in terms of loan to value requirements and interest rates. A commercial hard money or bridge lender will usually be a strong financial institution that has large deposit reserves and the ability to make a discretionary decision on a non-conforming loan. These borrowers are usually not conforming to the standard Fannie Mae, Freddie Mac or other residential conforming credit guidelines. Since it is a commercial property, they usually do not conform to a standard commercial loan guideline either. The property and or borrowers may be in financial distress, or a commercial property may simply not be complete during construction, have its building permits in place, or simply be in good or marketable conditions for any number of reasons.
Some private investment groups or bridge capital groups will require joint venture or sale-lease back requirements to the riskiest transactions that have a high likelihood of default. Private Investment groups may temporarily offer bridge or hard money, allowing the property owner to buy back the property within only a certain time period. If the property is not bought back by purchase or sold within the time period the commercial hard money lender may keep the property at the agreed to price.

Traditional commercial hard money loan programs are very high risk and have a higher than average default rate. If the property owner defaults on the commercial hard money loan, they may lose the property to foreclosure. If they have exhausted bankruptcy previously, they may not be able to gain assistance through bankruptcy protection. The property owner may have to sell the property in order to satisfy the lien from the commercial hard money lender, and to protect the remaining equity on the property.

Legal and regulatory issues
From inception, the hard money field has always been formally unregulated by state or federal laws, although some restrictions on interest rates (usury laws) by state governments restrict the rates of hard money such that operations in several states, including Tennessee and Arkansas are virtually untenable for lending firms.

Commercial lending industry
Thanks to freedom from regulation, the commercial lending industry operates with particular speed and responsiveness, making it an attractive option for those seeking quick funding. However, this has also created a highly predatory lending environment where many companies refer loans to one another, increasing the price and loan points with each referral. There is also great concern about the practices of some lending companies in the industry who require upfront payments to investigate loans and refuse to lend on virtually all properties while keeping this fee. Borrowers are advised not to work with hard money lenders who require exorbitant upfront fees prior to funding in order to reduce this risk. If you feel you have been the victim of unfair practices, contact your state's attorney general office or the office of the state in which the lender operates.

Hard money rate
Hard Money Mortgage loans are generally more expensive than traditional sub-prime mortgages. However, all mortgage loans are not necessarily considered to be a high cost mortgage. Generally a hard money loan carries additional risk that a borrower is aware of. Rather than selling the property a borrower will opt to keep the loan and if a lender is willing to assume some of the risk by offering a hard money loan.

Interest rate on hard money
The rate is not dependent on the Bank Rate. It is instead more dependent on the real estate market and availability of hard money credit. As of 2007, and for the past decade, hard money has ranged from the mid 11%-17% range. When a borrower defaults they may be charged a higher "Default Rate".

Hard money points
Points on a hard money loan are traditionally 1-3 more than a traditional loan, which would amount to 3-6 points on the average hard money loan. It is very common for a commercial hard money loan to be upwards of four points and as high as 10 points. The reason a borrower would pay that rate is to avoid imminent foreclosure or a "quick sale" of the property. That could amount to as much as a 30% or more discount as is common on short sales. By taking a short term bridge or hard money loan, the borrower often saves equity and extends his time to get his affairs in order to better manage the property. Hard money is expensive, but cheaper than a partner!All hard money borrowers are advised to use a professional real estate attorney to assure the property is not given away by way of a late payment or other default without benefit of traditional procedures which would require a court judgment.


I Know Where to Find Hard Money
Call Now!

Dick Green #479053
Triad Realty and Mortgage
936-441-8539

Great Time For Investors!

"It's also boom time for the companies that can supply those investors with financing when they need it.
"This is an absolutely wonderful market environment to be in," says Frank Sharp, who heads Watershed Renovation Capital, in Alexandria, Virginia. "

Read Entire Article....

Certain commercial mortgage-backed securities now eligible collateral under TALF

The Federal Reserve Board last week announced that, starting in July, certain high-quality commercial mortgage-backed securities issued before Jan. 1, 2009, will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF). The TALF is designed to increase credit availability and support economic activity in part by facilitating renewed issuance of consumer and business asset-backed securities (ABS) and CMBS. See the Fed's press release on this topic.

Obama Modification Guidelines

Obama Home Affordabilty Modification Program Guidelines

Publish at Scribd or explore others: Real Estate Business & Law mortgage foreclosure

Why Commercial Real Estate?

Why You Need To Start Investing In Commercial Real Estate by Scott Scheel
People often ask me how I got started in commercial real estate, and I tell them that it was a conscious decision for me. Most people who begin investing in real estate start off with single family residential properties because that is what they are most comfortable with. They tell themselves, "All I need to do is a couple of deals a month. I'll make myself five or ten thousand dollars, then at the end of a very few months most of my problems will be taken care of." They do not really understand...

Read Entire Article

FEEL LIKE GAMBLING?

Everyone has been asking me to tell them where the big money is at. I believe that there is enormous wealth opportunities for current risk takers. Do your home work, trust the numbers, then take action. Invest in areas that have traditionally done well and increase the odds of success.

Take for instance Galveston, Texas which was recently devastated by Hurricane Ike. Galveston's location makes it a real gem. A good friend, from one of the title companies in Houston told me that fortunes are sitting like diamonds in the sand on the coast of Galveston.

So, I've been watching Galveston. What I've discovered is real exciting. I hope you checked out the preceeding link. The information contained in it makes Galveston's real estate a winning lottery ticket. I missed out on this offer but I've discovered a couple of much better transactions....one right on the beach.

Anyway, if anyone wants a winning lottery ticket.................contact me.

KnowledgePlex Article

Julianne Pepitone

CNN Money

December 3, 2008

Mortgage applications more than doubled in the holiday week ended Nov. 28, the Mortgage Bankers Association said Wednesday, as government bailouts led to sinking interest rates. In the weekly report, the Market Composite Index - the association's measure of mortgage loan application volume - surged 112.1% on a seasonally adjusted basis from the week earlier.

On an unadjusted basis, the index increased 51.4% from the previous week; it was down 21.9% from a year earlier, the report said. Results include an adjustment to account for the Thanksgiving holiday.
Rates plummeted following the Fed's announcement that it would buy debt and mortgage-backed securities from mortgage finance companies Fannie Mae and Freddie Mac, according to Orawin Velz, associate vice president of economic forecasting, in a statement.

"Many of those on the sidelines decided to quickly jump in and take advantage of lower rates before they began to rebound," Velz said. The Mortgage Bankers Association said 30-year fixed-rate mortgages fell to 5.47% this week. That's was down from 5.99% last week. Rates on 15-year fixed-rate mortgages fell to 5.13% from 5.78%, the report said. The rate on a one-year adjustable-rate mortgage declined to 6.61% from 6.87%.
Copyright 2008 Cable News Network All Rights Reserved

Anfractuosity Protection

How does one protect him or herself from the effect of such an anfractous economic market? By sticking to the basics. Buy for one and Sell for two. Don't stay on the sidelines....like the Lottery motto, "You gotta be in it, to win it!". I talked to one of the manager's in the U.S. Postal system. She told me something that real got me thinking. She said that every 1 cent increase in gas prices equated to about 500 million in Postal Service operational overhead. Granted, this conversation took place during the height of our recent inflated gas price ordeal. But think of it...if that's the case for the Postal Service, then what will be the effect of recent lowered gas prices on the overall national economy? It has to be monumental! I started a thread in BiggerPockets a while back on the gas prices issue and was amazed at some of the posts I received. It was a real eye opener.

Here's a few facts that might make the astute investor consider the possibility of real estate as a viable alternative to the current market instability.

1. Current mortgage rates are at a 30 year low. Money for qualified buyers is cheaper than it's been in 30 years.
2. Existing real estate to include new construction is on the average 22% less than true values and many sellers are more than negotiable.
3. The decreasing cost of gasoline is equivalent to approximate 300 billion dollars worth of economic stimulus.

The past economic melt-down was signaled by distinctive signs. Even so the U.S. market has began it's natural process of cicatrization. My suggestion is strike while the iron is hot and leave the hackneyed excuses to the faint at heart. I think it was Warren Buffet who said that he reacts with caution when others are greedy and forges forward courageously when the multitude cringes in fear. It's good advice! The time to act is Now! Don't wait too late!

Deuteranopia A Useful Atribute

I was listening to one of the radio talk shows yesterday. It was a Financial Management program. A high percentage of the call-in listeners expressed the same concerns. To wit: "I'm nearing retirement age and have lost much of my retirement in the stock market!.....What do I do?" The host of the show, a Financial Markets Expert, repeated the same response which was, "Don't take your money out of the market....redistribute your portfolio. Stay in the stock market. Call our office and we'll help you". It was sorta funny in a sad kind of way. Some of the people calling in were even current clients who had lost money with their firm.

I sell real estate and mortgage products. I'm going to tell you that the best place to put you money is in real estate. That's a given! Car Salesman will tell you that the best time to purchase a new car is now. Even though the stock market is experiencing a major meltdown, Stock Brokers will tell you that the best place for you money is in the market. You be the judge.

I'm reminded of a lesson I learned as a youth. Never want the wares presented to you by a con-artist. Don't envy the wealth of another. Don't desire the wine when it's calling you even though it looks such a nice red in the glass.

The key to this market in my opinion is to go against the grain. Deuteranopia blocks out the tendency of an individual to be attracted to green. It actually blocks out the ability to distinquish colors in the green, yellow and red hues. Greed and envy is often characterized by the color green. The color yellow is often attributed to fear and everyone knows that red is sometimes used to represent hate. Let us all desire a taste of Deuteranopia in this current market. Not falling for false promises, free from fear, and not allowing past failures or broken promises of pie in the sky to stop us from achieving a successful destiny. I thought it was a funny analogy using colors.

As for where I would put my money......real estate in traditionally stable markets! I also recommend that you invest in eternal projects. I have always contended that the best place to invest is in one's own family. Or, I don't know how many of you readers believe the Bible. Myself, I'm a Christian and believe much can be learned in relation to financial matters from scripture. I think this current market will correct itself eventually. What we're currently seeing is the framework being laid for a coming global joining of three major components...economics, political and religious. With that in mind I recommend another temporarily safe place to put you during this transition which is gold and silver. But bare in mind that the fulfilling of God's word spoken in the Bible in the Book of James 5: 1-5 will surely come to pass. Take a few minutes to read it if you can spare the time.

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STARTER INVESTOR SPECIAL!!!! MAKE $7,500 QUICK!!!

I just got off the phone with the owner of a small house in Tennessee. She wants to sell her 3 bedroom 2 bath home as-is for aproximately $16,000. The home need $5,000 in repairs and is worth $45,000 to $50,000 once repaired. I asked the seller if she would accept a contract contingent upon the inclusion of and or assignee as one of the prospective purchasers. She stated that it would be o.k. I myself would rather work on transactions close to home but, am willing to turn this transaction over to anyone who might be interested for a minimal fee of $200 prior to pursuing it. I actually figure one could probably sell this property for 50 cents on the dollar without doing repairs for a quick $6 or $7 grand. If you want info the the property email dcgreen@houstonhotdeals.com with QUICK $7,500 in the subject line.

Knowing When to Hold 'Em!

I'm on the MLS daily searching properties in the Houston and surrounding area. I'm amazed at the number of great deals hitting the market. This current market has presented valuable purchase opportunities for every price point. I was talking to an agent early this morning who's property was selling for $68,000. It's part of a 9 or 10 group of single family homes owned by one investor. The properties are selling for around 65 to 68 cents on the dollar.

I often send out generic e-mails to short-sale, pre-foreclosure, and foreclosure listed properties asking whether or not they would consider even further discounts off the listed extremely short, short price. Occasionally, they respond with YES!!! PLEASE SEND US AN OFFER!!!

I'm currently working on a transaction where the builder really doesn't care what the selling price is. He stated that whatever the lender would approve as a short sale, he would be willing to sign off on. So I'm recommending that all of my potential customers make sure to purchase properties well under value in traditionally stable areas also be prepared to hold on to properties for at least 5 to 7 years.

Here's an article containing some great purchase tips!


Buying Smart(Housing : U.S.) 10/31/2008
SAN ANTONIO (San Antonio Express-News) – Those wishing to buy a home under the current economic conditions may be glad they did, as long as they are wise in selecting their location.

Barry Nystedt of the National Association of Exclusive Buyer Agents predicts that values in many coveted communities very gradually will begin rising during the next six to 12 months. In areas where the economy is weak, however, he says prices could remain stagnant for three years or longer.

“Right now there are too many properties for sale in lots of places. But in areas where inventories are starting to tighten, you should soon begin to see signs of recovery,” he said. Industry experts give homebuyers a few things to consider when selecting a neighborhood. Among the things a buyer should look for are:

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Who Wants $100,000?

I'm so excited about this new listing! It's a quick money maker for the right individual. I'll give you a brief overview here on the blog. For more information, you will need to e-mail me. The property is located in one of Houston's Historical neighborhoods. It was originally purchased by one of my clients under valued a couple of years ago. At the time of purchase, the property value was worth approximately $210,000. The same client then spent $40,000 plus in building upgrades converting the property into a salon. The current tax assessed value of this property is $180+ and it's estimated market value, (business included is $325,000+).

Here's where it gets good! The seller only wants $175,000. For more info: dcgreen@houstonhotdeals.com