Oct

29

Major Changes To Short Sales With Lenders. Things You Must Know!

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How To Prepare Short Sale Packages

Lenders are freaking out and stressing out with short sales because of the current market conditions. In fact, there has been a major paradigm shift and lenders are accepting ridiculously low short sale bids and not even balking at paying real estate commissions.

The key is short sale contracts/offers must be packaged and presented to the lender/investor/loss mitigator/decision maker in the right format with all of the right documents to streamline and speedline the process.

To accomplish this give lenders a short sale package that does their job for them and makes it easy to sign off on your package without having to do research (www.kickassrealestatesoftware.com prepares perfect packages in 5 minutes instead of 5 hours).   All you want the lender to do is review your short sale package, order the BPO, and declare the deal a go!

The next step is to find a professional title company or closing attorney that specializes in short sale closings because they are worth their weight in gold.

How Much To Offer On A Short Sale

Because nobody knows how much further prices are going to fall it makes sense to make VERY LOW short sale offers to the lenders and it is not uncommon for lenders to accept 30% of the defaulted loan balance.

Let’s be clear… this is an aggressive short sale offer and MOST will be turned down but when you get one super short sale offer accepted it makes up for all the declines. You’re looking for killer deals and doing just a few per year will make you a wealthy real estate investor.

Take Action. Right now there are PHENOMENAL DEALS available in short sales and REO’s. With the glut of inventory you can make offers so low you will feel ‘weird’ until you experience the joy of success.

Make it happen then tell me about your success.

Author: Gerald Romine

Oct

17

Bar Stool Economics:

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Bar Stool Economics:

Suppose that every day, ten men go out for beer and the bill for all
ten comes to $100. If they paid their bill the way we pay our taxes, it
would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that’s what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the
arrangement, until one day, the owner threw them a curve. ‘Since you
are all such good customers,’ he said, ‘I’m going to reduce the cost of
your daily beer by $20.’Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so
the first four men were unaffected. They would still drink for free.
But what about the other six men - the paying customers? How could they
divide the $20 windfall so that everyone would get his ‘fair share?’
They realized that $20 divided by six is $3.33. But if they subtracted
that from everybody’s share, then the fifth man and the sixth man would
each end up being paid to drink his beer. So, the bar owner suggested
that it would be fair to reduce each man’s bill by roughly the same
amount, and he proceeded to work out the amounts each should pay.

And so:
The fifth man, like the first four, now paid nothing
(100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).

The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four
continued to drink for free. But once outside the restaurant, the men
began to compare their savings.
‘I only got a dollar out of the $20,’declared the sixth man. He pointed
to the tenth man, ‘ but he got $10!’

‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar,
too. It’s unfair that he got ten times more than I did!’
‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back
when I got only two? The wealthy get all the breaks!’

‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get
anything at all. The system exploits the poor!’
The nine men surrounded the tenth and beat him up. The next night the
tenth
man didn’t show up for drinks, so the nine sat down and had beers
without him. But when it came time to pay the bill, they discovered
something important. They didn’t have enough money between all of them
for even half of the bill!

And that, boys and girls, journalists and college professors,
is how our tax system works. The people who pay the highest taxes get
the most benefit from a tax reduction. Tax them too much, or attack
them for being wealthy, and they just may not show up anymore. In fact,
they might start drinking overseas where the atmosphere is somewhat
friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

For those who understand, no explanation is needed .

For those who do not understand, no explanation is possible.

Oct

10

Stock Market Pummels - Safe Money In Long Term House Rentals

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The stock markets are taking a beating. Media is hyping a recession. The place for safe money is in long term rentals that CASH FLOW. If you have not been shopping the markets start looking because the current prices are unbelievable in many parts of the country. A real estate investor just bought a 1400 SF 4/2 in the Phoenix area for 65K as an REO and that same house was over 250K three years ago! It will cash flow even with bad financing!

Now is the time to be on the hunt. You don’t need your own cash either. For more info join my newsletter at http://www.kickassrealestate.com.

Author Gerald Romine

Oct

1

It’s Up To Real Estate Investors To Move Where The Money Is Flowing!

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As the saying goes, I will eat steak tomorrow night as I choose regardless of what you do or don’t do; regardless of whether you eat steak or beans.

The same is true for the economy, the financial crisis, and the so called recession. Some people will be eating steak and others will be eating beans. Is this a harsh wake up call for you?

KNOW AND UNDERSTAND THIS

The same ocean of money is in constant motion; it just flows in different directions from time to time. It’s up to you to move where it is flowing!

Have the economic times changed? Absolutely. Is it harder to near impossible to get loans? Yes. This is the constant motion I’m talking about and if you’re old business model required loans then it is time to change models. It is up to you to move to where the money is flowing.

Right now short sales and REO’s are hot and if you are playing in this arena you need to have money to close or real estate investors to flip to and here’s a big surprise: People are still flipping houses and doing very well. Need proof… check out an auction or two and you’ll see folks paying a lot more than you would which means they are a source of potential buyers.

OPPORTUNISM

You, yes you, need to capitalize on the opportunity delivered by the so called financial crisis. Know that all UBER SUCCESSFUL Entrepreneurs and Real Estate Investors are opportunists. There is no difference between “good” or “bad” events in the value offered to opportunists because opportunists take action on the events given without prejudice.

If you are a real estate investor just starting out or even a seasoned pro be sure to get my FREE Online Real Estate Investing Course. There’s no strings attached so you don’t have any excuses.

Author: Gerald Romine