Jul

28

How Losing A House Effects Your Credit And Your Ability To Buy Another House?

Filed Under Real Estate Investing, foreclosure | Leave a Comment

A question I’m commonly asked is what effect does a short sale, deed in lieu of foreclosure, or foreclosure have on my credit and when can I buy another house?

Believe it or not a short sale, deed in lieu of foreclosure, and foreclosure all have roughly the same impact on your credit score. In other words your credit score is going to be hammered.

Most new loans are resold to Fannie Mae and Freddie Mac and beginning August 1 Fannie Mae generally will not buy loans to borrowers involved in a short sale in the last two years. A deed in lieu of foreclosure is 4 years. A foreclosure is 5 years.

Although your credit score will be treated the same your ability to buy a house will vary greatly since most lenders sell their loans to Fannie Mae and Freddie Mac.

Why Do Short Sales Get The Best Treatment

Short sales are the preferential loss to lenders because it saves them the trouble of having to sell the house!

This is POWERFUL information because it gives owners an incentive to work with you for completing a short sale because they have a better chance of buying a home in two years instead of 5 years if the home is foreclosed on! And when you can complete short sale packages in minutes negotiating short sales because easy and routine.

Author: Gerald Romine

Jul

23

How To Use The Media’s Bad News To Make Money With Real Estate

Filed Under Real Estate Investing, foreclosure | 1 Comment

The news is filled with doom and gloom about real estate, real estate investing, and the economy.  Home values dropping. Foreclosures at record highs. Mortgage rate is up, etc.

If you read the news don’t believe the hype because contrary to popular belief we are in transition to a new economy, and you must choose whether to make the transition or to stand still. People are making money, big money right now.

Just last week a good friend of mine made over 30K on one little house deal. Here are his steps. 1) Bought REO. 2) Blow and Go (quick rehab normally 10K or less spent). 3) sell best property a little lower than comps(about 10-15K).  It’s quick and easy and the biggest catch is you might have to hold the property 90 days to meet lender’s seasoning requirements.

How To Make Money With Bad News In The Media

When you see a short article that serves your purpose (like the one below) send it to the lender with your short sale or REO offer.  Simply highlight the most important parts and let the article speak volumes for you.

Housing Distress Article Gerald Romine

In this case one paragraph talks about houses losing 25% of their value and that goes a long way to justify a low offer!

Author: Gerald Romine

Jul

18

Gerald Romine’s 10 Commandments For Success

Filed Under Real Estate Investing | 2 Comments

Recently I was asked to co-author a book with several other Maverick Entrepreneurs. This small group of entrepreneurs can be best described as people who blaze their own trail, overcome obstacles, find unconventional solutions, and simply writes their own rules for success. I was asked specifically to author a section about my rules for success.

My rules come from the significant life events I’ve experienced.

As I write this, I am now 38 years old, and during my life thus far I suspect that I’ve encountered more significant life events than most people ever dream about. Here’s some information about me:

I grew up in a lower middle class family in Prunedale, California. I’ve earned everything I ever received and very little was given to me.

I’ve worked for as long as I can remember. Whether it was milking goats, mowing grass, selling Amway(8 years old), cleaning houses, minimum wage fast food jobs, construction, licensed tennis teaching pro, Marine Corps, I’ve always been making my own money and way in life.

I’ve been very fortunate in my life.

Not all experiences have been desirable and my life has not been a fairy tale. But from all my experiences I have strived to learn something and moved forward towards bigger and greater things. I’ve found success as a real estate investor, professional speaker, author, and software developer and throughout all of life experiences, I have accumulated a number of rules that I live by. Well, I call them the 10 Commandments!

I’ve read and understand that original ideas are rarely original. My work is no different. The only credit to which I can claim is that I have learned from others and put their ideas to work for me.

Here are the 10 Commandments I Strive To Live By:

1. The Only Thing That Matters Are Results.
There are only two things in life, results and excuses and life does not care about the excuses.

2. Approach Everything You Do With Integrity.
Of all the things we have integrity is the only one you can give away and never get back.

3. Life Isn’t Fair.
You make your own breaks. The only definition fair should have to you, is something that you pay when you get on a bus (i.e., fare).

4. You Must Have A Dream.
We all have a dream, but most people give up on their dreams and then lose the ability. Without dreams there is little to strive for. If you don’t have a dream you can’t make your dream come true! As long as you have your dreams you have a reason for life! Never lose your gift of dreaming.

5. Learn Continually.
When you stop learning you start dying. Always embrace self improvement.

6. Be Accountable To Yourself.
Don’t blame the problems in your life on other people. You made your life what it is by the decisions you have made; take credit for the good and the bad. Life is self manifested, make it what you desire.

7. The Price Is The Price.
There is a cost(time, money, effort, etc) associated with everything. The real question becomes: “Are you willing to pay the price to get what you want?”

8. Of All Your Talents Determination Is The Most Important.
Determination alone accounts for more success than all the talents of men combined. The reality is talent is relatively easy to find, but determination is a treasure few possess or are willing to develop.

9. Success Is A State Of Mind.
One is not successful because of what they achieve; they are successful because of how they feel.

10. Be Humble.
Judge yourself at least as harshly as you judge others.

Author: Gerald Romine


Jul

11

How Hard Core Real Estate Investors Vacation

Filed Under Real Estate Investing | 2 Comments

Could you handle a 53 lb pack in the desert sun and hiking over 40 miles in 5 days? Now that’s what I call a vacation!

For those of you that don’t know me personally I’m going to give you an inside look at my personal life and my most recent vacation. There won’t be much on real estate investing but there will be plenty on having a winning attitude and living life to it’s fullest.

Ok, I’ll admit it… I’m an adrenalin junkie. I like pushing my body, have a huge sense of adventure, love the outdoors, and am still a big kid at heart. While others around me grow old it just takes somebody to say “I dare you” and my ears perk up. I refuse to stop having fun and am thankful that real estate gives me opportunities to see and experience the world.

It had been three years since I last hiked into Havasupai and I was really looking forward to having a family vacation. My Mother, brother(a throwback hippie but darn good contractor), Tiffany, and six year old son were all game for the trip. My 10 year old daughter was suppose to make the trip but let’s just say an ex-wife threw a wrench into those plans and it did not happen.

Havasupai is one of the most beautiful places in the world but admittedly it is in the middle of nowhere. You have to park at a dead end road then hike in 11 miles to a campground that has no amenities or even electricity.

How remote is Havasupai? Two miles from the campground is the town of Supai and even the mail comes in on a Mule Train. No kidding… it’s that remote. And I’m thankful because the remoteness makes it a truly special place visit and get away from the world. No electricity, no phones, no amenities unless you packed them in.

For those not as adventurous you can ride a mule or hitch a ride on a helicopter but our group was the tough and adventurous type. The cast included my Mom who’s 64 and she’s a tough old German. She started me in real estate many years ago and we’ve logged countless hours on projects when I used to be a rehabber. I’ve watched her work many men into the ground trying to keep up and I owe my work ethic and determination to Mom. My Mom and I have logged quite a few hikes together including Mt. Whitney which is the highest mountain in the continental United States(it’s 25.2 miles and we did it in one day with a full pack – she’s tough).

Then there’s my brother Mike. We could not be more different! He’s a throwback hippie and a lot more conservative. He works out of necessity and I work out of drive. As different as we are personally we get along great and he taught me more about the construction trade then I care to admit. In his younger days he cycled(10 speed with saddlebags) across the US as well as Europe so he’s pretty tough in his own right.

My son Adrio is 6 and the little guy was impressive. As a parent I teach real world practicality and I don’t believe in babying kids. Adrio had to haul in his own pack and it was 25% of his bodyweight. He had the vacation of his life and never complained even though I hike at a fast pace and rarely slow down. I was so proud as a Father of what he accomplished and the best gift was the self confidence he gained from the hiking and doing everything himself.

And last but not least was Tiffany making her first backpacking trip. She’s a trooper and her pack was 33% of her bodyweight which is A LOT. In her normal life she’s a girly girl who likes to look pretty and takes an hour to get ready for everything but being raised in Texas she’s used to hard work and loved backpacking even if she didn’t get to do her hair.

Hiking In

Wanting to beat the heat we started hiking in at Midnight which is the earliest we could start based on our permit. Most people will start the hike in the early morning or at daybreak but the desert heat is not something anyone should take lightly and having made this hike before I was confident this was the easiest way to get everyone in safely. And for a six year old nothing could be cooler than hiking in with a headlamp.

We made great time and reached the town of Supai in under 4 hours. Mom was a little dehydrated and not used to the heat but overall we were in good shape.

Once in the town of Supai you have to pick up and pay for your permits. At four in the morning I ran into the sister of the manager of the tourist office and she said they normally open around 5:00 AM so we decided to wait so I would not have to hike two more miles into the campground then come back for the permits.

At 8:00 AM the office was still not open and we were informed it would open in about an hour. Reservation time I guess. Tiffany and I decided to stay back and get the permits and the rest of the group hiked in ahead of us.

To Be Continued…

I would love to hear your comments on the article and feedback from the pictures!

A Few Pictures From the trip.

Author: Gerald Romine

Jul

8

The Secret Profits Of REOs and How To Do REO Deals Like A PRO

Filed Under Real Estate Investing, foreclosure | Leave a Comment

Banks have a real big ugly problem because foreclosures are at record highs, property values are falling, there is a shortage of real buyers, and once they foreclose on a property it becomes there dead asset. What’s a bank to do???

When the market was booming banks scoffed at the idea of selling properties at a discount through foreclosures or REO’s. Many banks laid off most of the loss mitigation staff because they had grown fat and lazy with the market boom. But oh how the times have changed.

Short sales are now hotter than ever and I’m going to let you in on a dirty little short sale secret. Sometimes a bank can do a shortsale and sometimes they can’t . You see… it all depends on who the “investor” is on the loan, if it is tied to a security, and a few other important behind the scene facts most investors are never privy too.

To keep it simple just understand that a bank could have two houses side by side with the exact same loan balances and with one house they can short sale and with the other house their hands are tied and they can do little or nothing other than foreclose on the house.

Does that mean you should not pursue short sales? No! It means you should understand that the “bank” is not always calling the shots. Personally, I love short sales because you can get some TREMENDOUS BARGAINS… But today I’m going to focus on REO’s because not only can you get phenomenal deals they can be quick and easy too!

ANALYZING and MAKING OFFERS On REO PROPERTIES LIKE A PRO

Whether you are buying a house to live in, to hold as an investment, or to flip for a quick profit, knowing your profit BEFORE your offer is the key to making a great deal! As easy as this sounds most investors do not take the time to “run the numbers” on a property before making an offer and in today’s market it has never been more important because with the changing markets you could go into a NEGATIVE EQUITY position if you do not buy right.

Bottom line is you have to run the numbers and know your profits before you even make an offer.

The Art Of Presenting The Offer

Let’s face it, nobody likes to lose money!

While it is true that the banks are writing off losses faster than the ink can dry that does not mean the bank is going to just give you an REO property for pennies on the dollar. The key to your REO success is presenting the offer in such a manner that the bank sees your offer as a fair and reasonable solution to their problem of holding a non performing asset – AKA a vacant house that is bleeding them dry.

Sounds simple enough, but presenting the right offer to the bank is not nearly as easy as you think. The key is to do the bank’s job for them and put together “the right” package presented in the right manner with the right words so it is easy for the bank to JUSTIFY accepting your offer.

Basically, you are doing the banks job of justifying your offer for them. When you make the REO departments job easy to say yes then it goes without explanation that your offers will be accepted faster.

Fortunately there is the Ultimate Real Estate Investing System available where it takes you just 5 short minutes to analyze and put together near perfect REO offers that are worded and justified so the bank can easily say yes and accept your offers!

Here’s what happened when John Pierro used the Ultimate Real Estate Investing System to make an REO Offer:

“My Very First Offer Using UREI”
“I can describe my very first offer I made on an 2 Family REO property using the UREI software. The offer was accepted on the first try because of the Justification that UREI explains for you. I was actually expecting to receive a counter offer from the bank, and was prepared to go up an additional 10K. To my surprise the offer was accepted at $ 204,343.00. The ARV(true property value) on this property is $ 380,000. I spoke with the REO agent afterwards and she was blown away, and said she had never see an offer quite like the one I provided, she (REO AGENT) went on to say it made her job a whole lot easier, because the bank called her, and ask her opinion and she was able to justify it by simply confirming what was written on the offer as the bank rep followed along.”

John Pierrro - Ronkonkoma, New York

The Advantage of REO’s Over Short Sales

When attempting a short sale the cooperation of the lender and property owner are required to complete the short sale. The bank does not own the property and the only power they really have is to foreclosure on the note (which takes time) or to negotiate a short sale or other workout program. In short the bank may want to work something out but because the bank is not the property owner they have limited options.

Buying REO properties can be much easier because the bank is the owner and they alone make the decisions to sell the house. Once a property becomes an REO the bank now becomes responsible for property upkeep, HOA dues, utilities to have the property show ready, property insurance, etc. Once the property becomes an REO the bank has real property owner expenses and for most banks the only option is to sell the property. And since banks make their money by creating and servicing loans they want/need to get rid of REO’s fast so they can be in the loan making business and not have the expenses, risks, and liabilities of vacant houses. REO properties are prime for major SWEET deals!

Not since the 1980’s have we seen REO opportunities like we have in today’s market. So long as the foreclosure rates are high the REO opportunities will be plentiful. For an REO buyer the part is we are in an election year and much of the real banking fiasco is being swept under the rug as politicians battle for the presidency and control of the house and senate. This translates to the banking fiasco not being answered anytime soon and no end in sight for REO Investors to make extreme deals and profits.

The REO Investing System

The Ultimate Real Estate Investing System(UREI) is the most complete real estate investing system ever created and includes a NEW REO Module. Go here for more information on REO’s and UREI.

Note: The New REO Package has just been released and is not shown in the above link… but is part of the system.

EXISTING UREI SYSTEM OWNERS can request the NEW REO MODULE be uploaded to their account free of charge by completing a support ticket request for the REO PACKAGE for Existing UREI Users.

Author: Gerald Romine

Jul

1

The Elephant In The Room And How It Effects Real Estate Investors

Filed Under Real Estate Investing | Leave a Comment

As you can see from the subject about this article, it’s about the so-called elephant in the room…the economy, and the dreaded ‘R’ word (Recession). Economists are arguing over technicalities. The news media has had us deep in a recession for months. People do seem troubled by gas and grocery prices.

Some of you may be wondering about the title and what exactly is meant by “The elephant in the room”? The expression is most often used in sales and the elephant is the big objection that is in the customers mind. Nobody is speaking about it… but the elephant is definitely in the room and on people’s minds. (For real estate investors the elephant in the room is how do I sell my house.)

Right now that elephant is the economy and the so called media created Recession we are experiencing. Do I buy the so called recession? Not for one minute. Are people hurting financially? Of course, but there are always people hurting financially! In fact most people live beyond their means and spend more than they make so any “bump” in the economy becomes a mountain.

I just came back from hiking the Grand Canyon and the permits for the campground were oversold for the entire month of June! Realize where I go is a 6 hour drive to a parking lot in the middle of nowhere, you then hike 11 miles in to a campground that has no electricity or running water, and you have to pack everything in and out on your back with a pack. Oversold for the month of June and June is the HOT season when most people do not want to go. Where’s the recession?

And with my family in town for the weekend we went out to Joes Real Barbeque on Friday and The Good Egg on Saturday and both places were packed with HUGE lines and waiting lists to be seated.

The question really becomes “What are you going to believe?”

Do you want to let the news and media do the thinking for you and simply believe what you are told or do you have your own brain that is capable of thought and drawing your own conclusions?

As for me, I’ll believe there is a recession when the grocery shelves are empty and there are long lines to get into the grocery stores to get the basic necessities like food!

Now Go Buy A House!

Gerald Romine