The 99% rule</h1> <article> <h1>The 99% rule</h1> <p>11 Feb 2010 15:28:41 GMT</p> Joker brokers, misrepresentation of packages, unauthorized use of POF�s, POF�s that can�t be verified, ghost REO packages, bank contacts that don�t exist, incorrect protocols, NCD, MFA, LOI, POF! Arrggh! Frustrated yet? After working with REO�s for nearly two years, I have tried to cleanse myself from the woeful misconduct and misrepresentation with my 99% rule. </article> <article> <h1>$10M REO CA bulk package just for you!</h1> <p>8 Feb 2010 01:27:56 GMT</p> Recently I received a call from a colleague regarding an REO bulk package he had received from a broker. The package was in Southern California offered at $6M or a discount of .60 of current value of $10M. My colleague asked my opinion about such a package. I told him that if it sounds too good to be true, it probably is. </article> <article> <h1>HUD acts to speed foreclosed properties resales</h1> <p>18 Jan 2010 00:37:39 GMT</p> The U.S. government is taking action to speed the resale of foreclosed properties by temporarily expanding access to Federal Housing Administration mortgage insurance, U.S. housing officials said. </article> <article> <h1>Wholesaling at trustee sales</h1> <p>26 Nov 2009 20:39:46 GMT</p> I often receive calls from buyers with lots of cash but nothing to buy from banks.There�s a lot of shared frustration for investors trying to find good discounted bank deals. Unfortunately, the opportunities to buy from institutions have dwindled to almost none from a year ago. Everyone wants California, Nevada, and Arizona at 60% � 65% but these discounts no longer exist. If you try buying from the banks today or Freddie/Fannie Mac, you can expect discounts of between 76% to 82%. But there are groups of investors who have devised some creative ways to get those discounts between 60% to 70%. </article> <article> <h1>Make money like the bank - 40% to 60% ROI in 12 months or less</h1> <p>17 Nov 2009 20:37:53 GMT</p> There is a lot of chatter about buying REO's and foreclosures, making a fortune in real estate, and getting rich quick. A lot of big promises and under-developed plans. Our program isn't one of these. We have a clear formula, backed by a strong team of professionals. As an investor, the more you know, the more you'll appreciate the value of what we offer. </article> <article> <h1>How to find buyers</h1> <p>4 Nov 2009 20:43:09 GMT</p> I often get asked how I built my investor list to 10,000+. I do a lot of networking and after almost eight years in the business, the list keeps growing. Here�s how I do it. </article> <article> <h1>Foreclosed Delusions</h1> <p>28 Oct 2009 20:42:17 GMT</p> During the high times of real estate, channels like HGTV and Bravo fostered our faith in a market of seemingly limitless escalation. An entire subgenre of television arrived � a spate of series promoting the idea that anyone with access to a line of credit could reap a fortune buying a house and selling it at a 100 percent profit. So how are those shows doing these days? </article> <article> <h1>The Dog Ate Your Mortgage</h1> <p>28 Oct 2009 14:28:44 GMT</p> When troubled homeowners and banks battled over delinquent mortgages, it wasn�t a contest. Homes went into foreclosure, and lenders took control of the property. Even so, banks and borrowers still do battle over foreclosures on an unlevel playing field that exists in far too many courtrooms. But some judges are starting to scrutinize the rules-don�t-matter methods used by lenders and their lawyers in the recent foreclosure wave. On occasion, lenders are even getting slapped around a bit. One surprising smackdown occurred on Oct. 9 in federal bankruptcy court in New York. Ruling that a lender hadn�t proved its claim to a delinquent borrower�s home, the judge wiped out a $461,263 mortgage debt on the property. That�s right: the mortgage debt disappeared, via a court order. </article> <article> <h1>Foreclosed Delusions</h1> <p>28 Oct 2009 13:38:47 GMT</p> During the high times of real estate, channels like HGTV and Bravo fostered our faith in a market of seemingly limitless escalation. An entire subgenre of television arrived � a spate of series promoting the idea that anyone with access to a line of credit could reap a fortune buying a house and selling it at a 100 percent profit. So how are those shows doing these days? </article> <article> <h1>Learn how to earn enormous profits from foreclosures</h1> <p>21 Oct 2009 21:02:07 GMT</p> There is a lot of chatter about buying REO�s and foreclosures, making a fortune in real estate, and getting rich quick. A lot of big promises and under-developed plans. Our program isn�t one of these. </article> <article> <h1>Buying locally vs. nationally</h1> <p>14 Oct 2009 21:55:51 GMT</p> For many investors, the very first question to ask before they buy is, "do I stay local or go national?" Of course new investors will always want to focus locally while the more experience investors look at both local and national markets. It really depends on your comfort level, your experience, and personal resources. </article> <article> <h1>Owners No More</h1> <p>11 Oct 2009 18:19:37 GMT</p> As many owners can attest, ownership has its drawbacks. Indeed, in the absence of a rising market to ease the pain of having property, owners might be excused for wondering what it would feel like to surrender the keys and become a renter again. Would it be a relief � or an unnerving loss of control? A comedown, or, in the aftermath of the housing debacle, a fashionable, politically correct choice? Moving from owning to renting seems to teach some people that they just weren�t meant to be renters, while others find it liberating. </article> <article> <h1>Buying at the auction</h1> <p>11 Oct 2009 17:29:57 GMT</p> In the old days, buying at auction at the county courthouse was usually an excercise in futility. Bank representatives were bidding up their properties close to FMV or simply bidding up to the amount owed on the note. Banks took back the properties, put them on the market and within a few weeks sold the property and recouped nearly the full amount of the forclosed note. These days, home values have plummeted and values are so depressed that banks are simply taking the highest price bid at the auction offered by investors and selling them off. The auction sales price is typically a fraction of what the previous note was and well under market value. It's like stealing candy from a baby. </article> <article> <h1>Which corporate structure should you use?</h1> <p>7 Oct 2009 16:13:42 GMT</p> When setting up your real estate investment services, there are several corporate structures you must choose from. Selecting the right one is crtical to your success. We examine the pros and cons of each one. </article> <article> <h1>Wholesaling vs...</h1> <p>2 Oct 2009 18:00:03 GMT</p> Throughout a bull and bear market, there is always one real estate investment strategy that has always worked for me, wholesaling. It is certainly not without its share of challenges but done effectively, it can provide you with a very nice return without the risks and responsibility of taking title. So how does wholesaling compare with other investment strategies? We discuss the pros and cons. </article> <article> <h1>F.D.I.C. Sells Failed Bank�s Troubled Mortgages</h1> <p>30 Sep 2009 14:45:38 GMT</p> Offering the lure of cheap government-guaranteed financing, the Federal Deposit Insurance Corporation moved on Wednesday to push its efforts to have private investors buy distressed mortgages from troubled banks. Agency officials announced that they had reached a deal to sell $1.3 billion in mortgages from Franklin Bank, a Houston-based lender that failed last November and was taken over by the F.D.I.C. </article> <article> <h1>Make money like a bank</h1> <p>27 Sep 2009 19:36:02 GMT</p> There is a lot of chatter about buying REOs and foreclosures, making a fortune in real estate, and getting rich quick. A lot of big promises and under-developed plans. How do you protect yourself? Where should you put your money? What type of properties should you invest in? What should my exit strategy be? There is one program that addresses all of these concerns offering a safe, secure and steady cash flow opportunity with a solid exit strategy. It's called contract for deed property programs. These programs offer affordable entry level prices for under $35,000; guaranteed monthly cash flow; no rehabbing; ancillary services such as sales and marketing, doc prep, inspections, property management and refinance services; and most importantly; 50% to 60% ROI. Let's look more closely as to how these programs work. </article> <article> <h1>How to sell an REO package</h1> <p>26 Sep 2009 20:12:21 GMT</p> Your a rep whose been working the phones trying to connect with sellers of large portfolios of REO assets. Your aggressive, your smart, your hip and your efforts are about to pay off. A seller finally agrees to let you represent a small pool they own. Congrats! Now what? You have buyers but have yet to sell anything and not entirely sure what the next steps should be. No problem. Let's walk you through the steps to wealth, glory and fame (okay, maybe just the wealth part). </article> <article> <h1>What's your exit strategy?</h1> <p>21 Sep 2009 15:45:58 GMT</p> It seems the discounts investors are purchasing at are simply unbelievable. It's mind boggling that houses are available for under $10,000. With any buy, comes risk and you know the old saying, "cheap can be expensive." The experienced buyers know exactly what they are buying and what they plan on doing with them after acquisition. Simply put, you need to know what your exit strategy well be before you stroke that check. </article> <article> <h1>Wholesaling your way to profits</h1> <p>20 Sep 2009 05:27:53 GMT</p> Are you interested in earning $3,000 to $10,000 per month or more buying and selling real estate without the risk of ownership or obtaining a realtor's license? There's a low risk approach to doing so without laying out large sums of cash. It's called wholesaling. </article> <article> <h1>REO Purchasing Guidelines</h1> <p>18 Sep 2009 14:31:18 GMT</p> You received a tape of REO properties. You've done an initial review and like what you see. The location is fine and the price is in line with your expectations. Now comes the time to make an offer to purchase. Depending on the types of deeds being conveyed will determine the purchasing process. Here's a guideline of what you can expect. </article> <article> <h1>How to buy from the bank</h1> <p>15 Sep 2009 14:45:37 GMT</p> Everyone wants to be direct to the bank when buying. Who wouldn't. You get the best deals. You negotiate directly with the bank asset manager. Properties are free and clear and you close quickly. This is what most buyers would like to hear but the reality is much different. Unless you are a large hedge fund with deep pockets and even deeper long standing relationships with banks, you will be sorely disappointed. So how does one actually buy directly from the bank. You have three choices. </article> <article> <h1>Top Ten Rehabbing Tips</h1> <p>12 Sep 2009 20:26:17 GMT</p> In my 8 years of real estate investing, I have sold bulk REOs, flipped houses via wholesaling, completed several short sales flip deals, and flipped numerous pre-construction properties. I also have rehabbed over 40 single family houses here in South Florida. So, although I am not doing much rehabbing at the moment, I thought I would share with you my basic top ten rehab tips. </article> <article> <h1>Those darn acronyms!</h1> <p>9 Sep 2009 22:13:14 GMT</p> A lot of real estate investors talk in code. Do you ever get the feeling like we are talking a different language? Have no fear, REI Blogger is here to save the day so you too can learn to master the fine art of "investmentspeak." We don't have many of them but here are the most important ones to know. </article> <article> <h1>The perfect package does not exist</h1> <p>8 Sep 2009 18:22:04 GMT</p> As I have mentioned in earlier postings (see "Why seller's don't compile"), I am often perplexed at the amount of requests received from buyers or their reps seeking REO packages with very specific requirements. Some are so specific, that even if I had the capability to compile, most are impossible to fill. Most sellers will stay away from filling any order, even if you can proof funds for a billion. Here's why. </article> <article> <h1>You got to bid it, to win it</h1> <p>8 Sep 2009 04:24:18 GMT</p> Buyers hate to bid. They want to know the price. Even when the do, a buyer will still submit an offer below the posted price. There are many reasons why buyers do this. They don't agree with the seller's BPO's; their due diligence discovers the FMV is less than what the seller states; the properties are in poorer condition; perceived market fluctuations and the list goes on. One way to resolve these issues is to put it out for bid without any pricing. No! Not a bid! Why when sellers decide to put out a package for bid, buyers get revolt? Fixed price gives a buyer more control but a bid price, well, that puts the control squarely back in the seller's hands and buyers don't like. Believe it or not, there are more opportunities to buy via a bid over a fixed price. </article> <article> <h1>The pass-through transaction</h1> <p>4 Sep 2009 18:14:18 GMT</p> When a "seller" wants to make their profit on a spread (the difference between two prices), they do so through a pass through transaction. Simply put, a reseller has a contract with a principal seller at one price than attempts to resell it to an exit buyer at a higher price. In a nutshell, the transaction simply passes from the principal seller through the reseller to the exit buyer with all reps and warranties conveyed. Here's how it works. </article> <article> <h1>What's wrong with BPO's</h1> <p>2 Sep 2009 15:38:59 GMT</p> BPO is an acronym for Broker's Price Opinion. In general, the term Broker's Price Opinion (BPO) is a method that a Real Estate Broker uses to estimate the value of a property. With each package of properties, the BPO price is usually listed but understand, these BPO's are very subjective and not an exact science. </article> <article> <h1>Why sellers don't compile</h1> <p>2 Sep 2009 00:49:40 GMT</p> Whenever I speak to an investor for the first time, I am always asked two key questions. First, am I direct to the seller and second, do I compile? The answer to the first question is yes but the answer to second question is no. There are many reasons why but the most important one is that unless you have a billion dollars, are an ex-banker with an extensive relationship to banks over a 20 year period, none of the banks or sellers will compile for you. This, of course, is a bit of an exaggeration but highlights the challenges of compiling. </article> <article> <h1>Where investors are buying</h1> <p>1 Sep 2009 16:02:42 GMT</p> Every investor is seeking a great deal but for many, they look to specific geographical areas. Some are state specific while others are region specific. What is so appealing about these areas and why are they buying there? </article> <article> <h1>Types of resellers</h1> <p>1 Sep 2009 13:13:25 GMT</p> A reseller�s goal is to obtain access to package through a direct relationship with a seller for the purpose of buying it at one price and then reselling it to an exit buyer for a higher price. Their profit is the spread in between. Some resellers are worth their weight in gold while others are are not. How do separate the good from the bad and how do you read between the lines so you are not lead down a path of frustration and disappointment? </article> <article> <h1>Chicken and the egg</h1> <p>1 Sep 2009 04:46:56 GMT</p> A buyer has reviewed the package and would like to submit an offer to the seller. The seller explains to the buyer that they have it under contract with the bank and will sign a purchase agreement with the buyer once they provide proof of funds. However, the buyer will only proof funds once the bank contract can be verified. The reseller will not provide any proof of contract until the buyer shows proof of funds. Buyer thinks reseller can't proof the contract and the reseller thinks the buyer can't proof funds. Neither party is willing to take the first step. Here lies the chicken and the egg. </article> <article> <h1>What the discounts really are</h1> <p>27 Aug 2009 22:30:10 GMT</p> You�re a real estate buying trying to buy at a discount. You certainly are not going to buy them off the MLS at 80% � 90% of FMV. Your plan is to purchase directly from the banks or private sellers, so you need to know what type of discounts you can expect to receive. Well, here they are. </article> <article> <h1>Why banks won�t sell for less</h1> <p>27 Aug 2009 22:03:42 GMT</p> Many buyers assume that they more they spend on acquisition of a bulk REO package, the better the discount they will receive. Truthfully, this ain�t Wal-Mart. Banks are notoriously firm when it comes to their discounts. You take it or leave it. This may come as a shock but you have zero leverage with the banks and you are in no position to negotiate better discounts. Why you ask? One reason; blame our government for giving the banks billions. </article> <article> <h1>The NCND</h1> <p>27 Aug 2009 15:03:09 GMT</p> Ahh, the non-circumvent non disclosure agreement. Why do we have them? If buyers and sellers will still circumvent you, what is the point? Well, for one thing, it gives those bringing the opportunity some measure of comfort knowing that there is something in writing should they have to take legal action. An NCND is designed to help ensure that the reps opportunity will not be pursued by the buyer without the reps's involvement. However, having one does not always guarantee protection. </article> <article> <h1>Own-ward Bound?</h1> <p>27 Aug 2009 13:58:02 GMT</p> As the housing bubble inflated, the math increasingly favored renting. House prices went up and up while rents stayed relatively flat, meaning you could get a lot more bang for your buck by choosing a lease over a deed. Now, with the housing market in a pulp, the tables are turning. </article> <article> <h1>How to avoid the daisy chain</h1> <p>27 Aug 2009 00:36:45 GMT</p> Say hi to Daisy. She�s hot! Now that I have your attention, this unfortunately is not the Daisy we are going to discuss today. Waaaaahh! We are, however, going to talk about the less sexy version of Daisy, her evil twin known otherwise as the dreaded daisy chain (egads!). </article> <article> <h1>The BILLION dollar deal</h1> <p>26 Aug 2009 03:10:01 GMT</p> That's billion with a B. Yes, there are billion dollar deals available to billion dollar buyers every week... and I am the tooth fairy. Every so often I receive a call from a rep that has access to the FDIC and billions of dollars in REO�s and Notes. All that is required is executing their NCND and providing a proof of funds (POF). The rep will then put my buyer in direct contact with the attorneys representing the FIDC. Perfect!! Well, not so fast. </article> <article> <h1>Bank vs private seller</h1> <p>24 Aug 2009 14:06:03 GMT</p> Unless you have a billion dollars, a twenty year relationship with the bank and a plan to rule the world , banks don�t want to talk to you. Seriously, why would a bank want to trade with a buyer they know nothing about and have absolutely no banking relationship with? Why does everyone think buying bulk directly from the bank is the answer? If you are successful enough to be able to trade with the bank, then you have gone where most buyers never will. There is an alternative � buying on the secondary market from private sellers. Here are the pros and cons of both. </article> <article> <h1>BE the buyer</h1> <p>25 Aug 2009 04:55:10 GMT</p> I receive a lot of calls each day, approximately 60-70 so my days are pretty full most of the time. I talk to my sellers often updating and reviewing new inventory. I respond to calls from reps who are out there trying to find me buyers. But, the most important calls are from direct buyers. I have buyers who are looking for a package less than $500K and ones seeking $100M or more. Buyers, of course, are the most important calls but not all of them are equal. Most reps I talk to are thrilled to find a buyer, any buyer, that they can represent so some times they are blindsided by the potential opportunity of representing a buyer. </article> <article> <h1>Joker Brokers</h1> <p>22 Aug 2009 14:12:13 GMT</p> Brokers are a dime a dozen and I use the word loosely. They could be licensed realtors, brokers, atttorneys, investors, intermediaries or ex governors of Alaska (whose name shall remain anonymous). There are many good brokers out there who do a great job of buying and selling but when it comes to selling bulk REO packages, buyer beware. </article> <article> <h1>How to sell your REO bulk package</h1> <p>22 Aug 2009 14:11:54 GMT</p> You just picked up a bulk REO package of 25 houses in Florida but you live in New Jersey. You bought them at a great price and you want to resell them. Now what? </article> <article> <h1>Florida Wonders Which Way Is Up</h1> <p>21 Aug 2009 14:11:35 GMT</p> Ever since the 1920s Florida has been cast as the place people go to escape contemplation, not to indulge in it. But in the past year, from Pensacola to Miami Beach, Floridians have been soul searching. And for good reason. The state�s decades-long binge on real estate has given way to empty homes in rich and poor neighborhoods alike. And yet if the Sunshine State is a larger-than-life reflection of where the country is heading, then the nation is still stuck, scared and uncertain of how far it wants to stray from the status quo. </article> <article> <h1>Why banks won�t sell bulk REOs to you</h1> <p>20 Aug 2009 14:11:03 GMT</p> I often receive calls from buyers who are distressed because they have been trying to buy bulk REO packages but have thus far been unsuccessful. Find out why. </article> <article> <h1>So you wanna sell REOs</h1> <p>19 Aug 2009 14:10:46 GMT</p> Markets got you down? Can�t wholesale? No money in flipping? Can�t sell your rehabs? What�s an investor to do these days? Well, the short answer is find a strategy that works in the current market. So if we are in a strong bull market, buy and flip those houses. If we are in a bear market, buy and hold them long term. Pretty simply right? In a perfect world, yes but not this one. The answer is REOs. </article> <article> <h1>REO defined</h1> <p>19 Aug 2009 14:09:59 GMT</p> So what�s an REO? Nope. It�s not those delicious cookies with the cream filling (although I must admin I have a weakness for them). An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. </article> <article> <h1>Cleveland rocks! Really?</h1> <p>18 Aug 2009 14:09:38 GMT</p> With a 4.1% increase, Cleveland posts strongest monthly performance among indexs 20 cities. </article> <article> <h1>Welcome real estate investors!</h1> <p>18 Aug 2009 14:08:34 GMT</p> There is such an incredible opportunity for real estate investors to maximum returns in any market providing that you pick the right opportunity and the right exit strategy. Unfortunately, there is just so much information overload and too many opinions to lead you astray. Where does one turn to? REI Blogger of course! </article> </main></body></html>