Aug

28

Get Ready… The Real Estate Markets Are Going Down!

Filed Under Real Estate Investing, foreclosure | Leave a Comment

The worst is not over and if you think the real estate markets are in bad shape now it’s going to get a lot worse! Bad news for some and good news for investors that understand how to capitalize on the ever changing real estate markets.

Foreclosure rates are continuing at record levels and there is no end in site. Investors and homeowners of financial means have been hanging on and clinging to the hope and dream that things will soon turn around and get better. Many have been hanging on because they are financially sound, they are too proud to lose a home to foreclosure, or they were dreaming that somehow things would work out. They are waking up to reality in a cold sweat!

The homeowners and investors that have been hanging on and bleeding to death financially by supporting upside down houses are quickly coming to the conclusion that it is financially more prudent to lose a house to foreclosure because there is no point in riding the titanic to the bottom of the sea. If you have negative equity of 50K, 100K, or 250K it does not make sense to make payments on the loan when it would take years and years to recapture the losses by hanging on and hoping the prices return. Foreclosure has become a financial decision that now makes sense.

Walking away from an upside down house may ruin your credit now but many are discovering it is worth it to be rid of the negative equity that would lock them into losses for years! Because of this realization people are walking away from portfolios of houses that will be lost to foreclosure. The good news for investors is we can buy foreclosures and REOs for pennies on the dollar.

The next major setback for the market is effective October 1st the Housing Act prohibits seller-assisted financing (presumably this includes the Nehemiah program) and this will lock millions of would be homeowners out of the market and add steam to the housing melt down. How many buyers do you know that have 10% available for a down payment?

The good news? Seller financing will return in force. Banks will be forced to accept lower offers on short sales and REO’s as a matter of necessity and many will carry their own financing. Investors will dominate because they have the means, skills, and ability to buy properties.

In fact, it is already happening and there are greater opportunities now in this emerging market that investors can exploit. In many areas it is now possible to buy newer houses at price levels not seen since the 1990’s. Lenders are negotiating as low as 30% of the defaulted debt amounts. Houses are selling for amounts that provide great cash flow for rental properties.

The best part about the so called housing crash is that it has all been manufactured and is not a real reflection of the market. Bold words… maybe. But if you look at the situation intelligently you can see that there is no shortage of people who want to buy houses. What has created the ‘housing crash’ is the money supply has been turned off which prevents buyers from getting loans and buying houses.

It’s just like a water faucet and the availability of money has been turned off and a draught has ensued. And like a water faucet the availability of money can be turned on at any time and when that happens there will be a rush of buyers to take advantage of the lower prices and the rebound will be in full swing. Imagine the popularity of a new President that ‘turned on’ the money supply and rescued the housing markets. It could happen that fast.

With the changing times there will be a changing of wealth as there has always been throughout history.  While most become victims of choice a few will become wealthy by taking action and seizing  the opportunity.

Author: Gerald Romine

Aug

26

Attracting Real Estate Homeowners With Pain Campaigns

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The Real Estate Pain Campaign For Sellers

Pain and problems dominate the lives of people every day and as a result we are constantly looking for solutions to our pain and problems.

In real estate marketing we would be wise to use a formula to attract buyers and sellers. The PAS formula is a great model.

What is the Problem - Agitate - Solve Formula?

I first learned of this formula years ago from a copywriting guru and it has served me well over the years.

Identify a problem. Agitate the problem. Solve the problem.

The fact is people respond better to pain which is why so much marketing revolves around solving painful problems. Next time you are watching TV watch the ads closely and you’ll see they follow the PAS formula to the ‘T’ and focus on the problem, agitate the problem, then solve the problem which is to buy their product.  (a good example are the ProActive commercials dealing with the problem of how people feel ugly, feel embarrassed, but then by using ProActive they become beautiful and sexy).

In your real estate marketing be sure to fully capitalize on the PAS formula. Show the problem. Agitate the problem. Solve the problem.

For those of you using the ULTIMATE Real Estate Marketing System I’ve just added ‘The Pain Campaign’ and you can request it at no charge through the support desk.

This email campaign includes three letters that go out 6 days apart and not only follows the PAS formula but includes emails that capitalize on headlines with pictures that grab the seller’s attention.

The first email “Is Trying To Sell Your House Giving You A Headache?” has a picture of Bayer Aspirin and is built around the pain and headache of selling your house.

The second email is “Are You Getting Indigestion Trying To Figure Out How To Sell Your House?” has a picture of Pepcid Antacid and is build around how upsetting it is to try and sell a house in today’s market.

The third email is “Who else is sick and tired of hearing their friends complain about not being able to sell their house?” and has a picture earplugs and is built around hearing from friends and the media about the dismal real estate markets.

Now you can see why we call it the “Pain Campaign”! This email can also be converted to a letter campaign and top marketers will replace the pictures with inexpensive product samples making it a bulky/grabber campaign.  Both work exceptionally well.

Author: Gerald Romine

Aug

19

Maverick Training Video - Aspen Colorado With Gerald Romine

Filed Under Hiking, Real Estate Investing | Leave a Comment

Questions keep coming at me about the the power meeting we just had with guys like Frank McKinney, Carl Banks, Aymen Boughanmi, Yanik Silver, Mike Filsaime, Carrie Wilkerson, Terry Wygal, Rich Desich, and the rest of the Mavericks. Some names you may recognize and others have build massive businesses very discretely.

This select group comes together to share business ideas in an intimate setting. It’s just hard to build a better business and friendship relationships than experiencing fun and extreme events together.  How can you compare a boardroom to riding a bus for 3 hours and talking business then mountain biking together.  The conversations, business ideas, and friendships are formed quickly in an environment that is hard to replicate anywhere else.

I roomed with Doug Doubler and he’s famous for selling over 200 million dollars worth of condo’s using just 20K in google ads.  Crazy!  The insights he has on the business and what he shared were amazing.

Check out the video and you’ll get a taste of the most powerful business meeting I’ve ever attended.

Side Note: The music is from the movie “Deliverance” and for those on the trip it has a special meaning.  (Yanick, you’re twisted… but we’re all laughing now.)

Author: Gerald Romine

Aug

18

The Real Estate Market & What Gerald Romine & Maverick Frank McKinney Are Saying

Filed Under Real Estate Investing | 1 Comment

It is Monday and I’m back from a wild business adventure in Aspen Colorado!

Imagine hanging out with some of the best businessman in the world to talk business then taking off for some White Water Rafting, Rock Climbing, Rappelling, Extreme 4 Wheeling and some pretty wild mountain biking. My body is beat up. (Later I‘ll tell you about the wasp attack I experienced when I stuck my hand in their nest while rock climbing)

Frank McKinney, Gerald Romine, Terry Wygal, Mike Filsaime, Mike Hill, Tim Warren, Valerie Young, Yanik Silver, Mike Dillard, Joe Barton
Talking Real Estate With Frank McKinney (Gerald Romine - Black Hat)

Later this week I‘ll post some pics from the trip including my “Double Heisman” with a two time Superbowl winner!

I’m part of several mastermind groups that come together with one purpose in mind. Business! And while we may partake in some fun activities we take our meetings and education very seriously! Not only do we share ideas amongst ourselves, we bring in some of the finest businessmen in the world to help us with their experience and knowledge. All done in a small and intimate setting.

Frank McKinney – The Maverick Daredevil Artist

Graduating high school with a 1.8 GPA and digging sand traps by hand Frank is not the guy you would have picked as most likely to succeed.  After teaching tennis in Florida(Frank and I have teaching tennis in common) Frank realized the money was in real estate and became a RE investor back in 1986 and made $7,000 of his first fixer.

After playing in the fixer business for years he moved into the spec house business and has gone on to sell a 50 million dollar spec houses and currently has a 130 million dollar spec house for sale.  Talk about brass balls… they guy‘s got them because when you build a 130 million dollar spec house that means you don‘t have ANY buyer in mind.

The best part about our mastermind groups is the intimacy that can be found with 30 people. An informal setting. The ability to speak one on one with everybody. And sharing dinner, drinks, and conversations with like minded individuals and superstars like Frank McKinney.

The Key Points I Took From Frank McKinney:

  1. Read the book: Blink: The Power of Thinking Without Thinking by Malcolm Gladwell
  2. Frank controls the marketing of his properties.  He does not and will not delegate the marketing of his houses to anybody else. While his time is valuable on of the most important things he does is write the copy to sell his houses!
  3. Be A Market Maker.  If Frank would not of believed in himself and believe what others said he would have never made it.
  4. Don’t Live Between The Railroad Tracks.  You have to get out of your comfort zone. Things happen when you make them happen.
  5. Be Overhead Adverse.  Funny coming from a guy that builds a 135 million dollar house be Frank is absolutely overhead adverse and constantly monitors expenses to make sure things stay in check.

My head is still buzzing from the last week! Luckily I survived the wasp attack and I’ll be sure to fill you in on what’s happening in the real estate investing world and why Frank McKinney and I are excited about the market and what’s coming.

Author: Gerald Romine

PS – Frank and I agree that the news media is full of BS and does not accurately reflect the market and what is really happening.  Frank hasn’t slowed down and you shouldn’t either!

Aug

12

The Big One In One Day - Mt. Whitney!

Filed Under Hiking | 1 Comment

Saturday, August 9, 2008: Up at 2:30 and on the trail at 3:15 AM. What lies ahead is summiting Mt. Whitney, the highest summit in the contiguous United States with an elevation of 14,505 feet.

Starting at Whitney Portal with an elevation of 8,360 feet the day would call for a 22 mile round trip hike with an elevation gain of 6,145 feet.

The easiest and most popular way to get up the mountain is the “Mt. Whitney Trail”. The trail itself is “easy” (in the sense that it is well traveled and there is no danger of falling or getting lost), it is a physically demanding hike to say the least. Because the Mt. Whitney Trail ascends to the highest point in the continental US, oxygen is a priceless commodity. Much of the trail — including the last several miles to the summit — are over 13,600′ in elevation where every step can be a challenge. Many who attempt to summit and return in one day simply don’t make it due to altitude sickness, dehydration, running out of daylight, adverse weather, or simply running out of gas.

Here’s a few pictures from the trip I thought you might enjoy.

Author: Gerald Romine

Aug

6

The Real Estate Market Is Hot. Are You?

Filed Under Real Estate Investing | Leave a Comment

I like to talk straight with people and it seems that every guru is talking about this being a great time to buy properties. That’s true. But most of the so called guru’s are offering the same old tired crap that worked great in 2005 but ain’t working now.

Remember when you could buy any house and turn it for a profit? Remember when people were buying spec houses and the values were going up 50-100% in the time it took to complete construction? Those days are gone. What’s more is those days were filled with a lot of risk because if you bought at the wrong time you were left holding the bag. Many were, and many still are nursing their wounds.

Today it is a foreign market to most people. BUT, for those of us that have been in the game for a long time it is simply a return to a market where you buy based on real investing fundamentals with one major difference. Money is a lot harder to come by for investors, for homeowners refinancing, and for new home buyers.

There are three main ways to make money in today’s real estate market.

One. Flip Houses. Contrary to popular belief flipping houses is alive and well. Focus on DEEP discounts and moving houses fast to investors that can close quickly. There are fewer REAL buyers so you need to have a strong deal to move properties quickly.

Two. Buy and Hold. Yea, that’s right being a landlord is and has always been profitable. Sexy it’s not but profitable it is. IF you live in an area where you can cash flow properties after all expenses are taken into account(management, maintenance, taxes, insurance, repair allowance, debt service, etc) owning properties is very lucrative.

Rehab and Retail. Right now I have buddies making a killing with rehab properties in the current market while everybody else is whining and crying. How do they do it? They have a simple model to buy blue collar houses that are at the bottom of the median price range where the labor class of America lives. They only buy houses at a deep discount, spend approx 10K with a “blow and go” rehab, then retail the property as the best house in the area for less than what other houses are for sale. In short they are selling the best house in the neighborhood for a steal of price and can do so because they bought right.

THE KEY TO SUCCESS

The secret to being successful in today’s market is sorting through all the junk properties (or bad financing on good properties or over financed

properties) for sale and focusing on properties that can be bought that meet your criteria. Put another way the key is target marketing so attract properties that can be bought at the right price or terms.

Unfortunately most people rely on themselves to find deals and that simply does not work. You’ve got to have a SYSTEM in place where you can throw a bunch of leads into the system and wait for the good deals to call you up already pre-qualified.

I know you’re skeptical that such a system exists. I don’t blame you.You can’t just go believing everything that anybody says… especially on the internet.

I know that people like you want PROOF that the ULTIMATE Real Estate Marketing System is a top product.

That’s why I posted real videos and screenshots of the system in action on this page…

www.kickassrealestatemarketing.com

There are over 17 videos, pictures, and even an email from the system to show you how it works. Check them out and you’ll see that the ULTIMATE Real Estate Marketing System is everything I say it is!

Author: Gerald Romine