Archive for fec market news
Benefits Of Hiring A Real Estate Agent
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Buyers and resellers of houses sometimes wonder if it is worth it to hire a real estate agent. They think it is easy to sell their property just by posting ads in the net. The most common thing that happens is that it will take a long time for the property to get sold. This is why it is recommended that buyers and sellers of houses just hire real estate agents for easier buy and sell. Read on to learn about the benefits that real estate agents can provide.
Hiring professional real estate agents will give you the benefit of having their experience and knowledge about real estate. It is recommended to hire a real estate agent who knows what they are doing. You will benefit greatly from the experience that they bring to the table and you will also know a lot yourself.
Second benefit is real estate agents have a huge network that you can really use. They have a special relationship with other individuals who move around in the industry. You can have easy access to certain information like the best individual or company to assist you in terms of handling a contact. Information and access such as these will only be available if you hire a professional real estate agent.
The third and last benefit is a professional real estate agent is a good negotiator to get the best deal. These people have advanced trainings in terms of negotiating with people without dealing with the emotional attachment which usually occurs when someone sells their house. Having a real estate agent negotiating for you will ensure that you will get the best value for the money you are spending or get you the maximum amount if you are reselling your house.
These are just some of the benefits that you get from hiring professional real estate agents. The knowledge, professional network and negotiating skills that they bring to the table will benefit you greatly in terms of buying or selling a house. Real estate agents can help you sell and buy your dream house easily. You have to make sure that you consider all of these when you are thinking of either buying or selling a house today or in the near future.
When you are in the market for a home in Utah be sure to allow us to help you with our Orem real estate company. All aspects of finding the right home I can help and guide you when looking at American Fork, Utah real estate.
Bulk REO’s- Hot Real Estate Niche
Posted by: | CommentsBy Kenny Rushing- Guest Article Contributor
Buying and selling bulk REO’s is among the hottest real estate niches in the country right now. But this business is only a few years old, so the fact is not many people know how this business works yet.
Lucky for you, I have been one of the few investors in the country who has actually closed bulk REO deals and play in this market everyday. I like doing $1 deals with Bulk REO’s just as much as I do when buying and selling single REO homes.
However, I like doing bulk REO deals more because the profit potentials are much bigger.
In addition, the bulk REO business is far less competitive than buying single REO homes from REO agents. Most investors don’t understand how to make money with Bulk REO’s, or they think buying bulk REO packages are too risky.
“Isn’t Bulk REO Investing Too Risky?”
When you buy a pool of bulk REO assets from a bank, you are buying “sight unseen”. This is enough to scare away most traditional investors. Don’t worry, you’re about to discover how to take the risk out of buying Bulk REO’s.
Traditionally, most real estate investors are used to going out and physically inspecting properties themselves. I refer to these people as “touch & feel” investors. However, when you buy Bulk REO homes from banks, “touching and feeling” these homes are impossible to do when you’re contracting to buy 30-500 homes or more scattered across the country. Therefore, you have to depend on others to go out in each local market and inspect the properties for you.
I have been active doing Bulk REO deals for 15 months now. Traditionally, I am a “touch and feel” type of investor like many of my peers and it was hard for me to adapt to buying properties “sight unseen” and not inspecting a property before I contracted to buy. For that reason alone, I had no choice but to develop a system that would allow me to buy and sell Bulk REO deals without ever looking at a single property but still feel comfortable along the way.
“Why Are Banks Selling Off Bulk REOs?”
Due to the U.S. economic meltdown and foreclosure crisis, banks across the country are failing. This has created a unique opportunity to buy properties directly from banks like never before. Today, banks all across America have BILLIONS of dollars in defaulted loans. As I write this report, there are over 1,905,723 foreclosure filings right now. If foreclosure filings continue at this pace we would have exceeded the 3 million foreclosure filings the U.S had in 2008.
When a borrower is in default of their mortgage note, the bank will move to foreclose on their home. The mortgage note is now considered non- performing and becomes a liability on the banks balance sheets. Immediately the bank will hire an attorney to begin the foreclosure process.
In addition to attorney’s fees, if the homeowner in default fails to pay the hazardous insurance policy, the property taxes and neglects to maintain the property, the bank will have to step in and pay those expenses as well.
Some banks have thousands of these properties and the financial burden is enormous. At this point the bank wants nothing more but to get rid of this money pit!
The timeline to foreclose on a property will depend on if the property is located in a judiciary or non-judiciary State as we discussed in the Foreclosure Frenzy article. In a non-judiciary State, the process to foreclose is much faster and can be done in 2-3 months, while in a judiciary State the process normally takes about 6-12 months.
Once the court has issued a “Notice of Judgment” in a judiciary State or a “Notice of Trustee Sale” in a non-judiciary State, the bank will move to sell the property at the foreclosure auction. The foreclosure auction is normally handled by the local Sheriff’s office. At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney working on behalf of the bank.
If this occurs, and the opening bid is not met, the property is deemed a REO or “Real Estate Owned”. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.
Banks have become accustomed to using this process to sell off foreclosure homes to remove them from their books. These homes are considered “toxic-assets”. Today, due to the U.S. foreclosure frenzy, banks are plagued with these toxic-assets while the courts that handle these foreclosure proceedings are backed up making the foreclosure process take longer then ever before.
With Federal Regulators breathing down the throats of banks to do something about all the defaulted loans on their books, banks are now seeking other non-traditional ways to get rid of their toxic assets……such as selling their non-performing notes and pools of Bulk REO properties to investors.
This new approach of bundling up Bulk REO properties and selling them at steep discounts saves the banks the headache of continuing to pay for the property taxes, hazardous insurance, utilities, maintenance cost and more importantly, removes the toxic assets from the banks balance sheets enabling them to stay in compliance with Federal and State bank regulations.
“What Are Bulk REOs?”
Bulk REO’s are foreclosed properties that banks own. Some of the homes may be currently listed with an Agent while others may not. Banks are not in the property management business. They are in the lending business and want these toxic assets off their books. Therefore, this has created a tremendous opportunity for investors who know how to play in this market.
A bulk package is also referred to as a tape. These tapes contain tens or hundreds (sometimes thousands) of REO properties. A tape is nothing more than an excel spreadsheet list of properties.
“Can I Do $1 Deals With Bulk REOs?“
Yes, in fact you can get started trading Bulk REO deals without any money. Let’s learn exactly how this can be done.
There are several ways to make money buying and selling bulk REO’s. Your options are either:
- Brokering Bulk REO Deals
- Buying Bulk REO Properties from Banks
Brokering Bulk REO Deals…
Brokering Bulk REO deals is much easier to do than buying them from banks. A Bulk REO Broker or Trader (some people refer to them also as Syndicators) acts as a middleman between the seller of a Bulk REO tape and a buyer. It is important to note that a professional license is NOT required to broker Bulk REO deals.
The great part about brokering Bulk REO deals is that you don’t have to use “Cash or Credit” to get started. Nor do you need an office, staff or car for that matter and you can do it part-time from the comfort of your home. Brokering Bulk REO deals only requires that you have a telephone, fax machine and a computer.
- Computer: Will be used to network with other Bulk REO Brokers, Bankers and Investors online.
- Telephone: Will be used to communicate offline with the people you network with online.
- Fax Machine: Used to send and receive all the documents and contracts when doing these deals.
“How Do I Get Started Brokering Bulk REOs?”
The first thing you have to do is understand the role of a Bulk REO Broker so you can find your niche to play. There are two types of Bulk REO Brokers. The first is a Seller’s Rep and the other is a Buyers Rep.
A Buyer’s Rep works exclusively with buyers who are looking to take down tapes. They match their buyers with sellers of Bulk REO tapes and charge a fee for their efforts for finding product for their buyer to purchase.
A Seller’s Rep works exclusively with sellers looking to sell Bulk REO tapes. The seller may be a bank, private equity fund, hedge fund or a private investor. The seller’s rep will get paid a fee for their efforts at finding a buyer to buy the tape from the seller.
Some Brokers work as both buyer and seller reps. The hat they wear will depend on what lead source they have. If they have a source of product for sale, they may become the seller’s rep. If they have a serious buyer of Bulk REO product they may wear the hat of the buyer’s rep.
I have acted as both the buyer and seller rep and made money. However, I prefer to wear the seller’s rep hat because my strength is creating marketing advertisements that sell Bulk REO product. Last month I closed on a small Bulk REO deal and made $25,000 working as a seller’s rep. It only took 4 hours of work to get this deal done.
Let me explain how this deal worked:
- Step 1 – Find The Product
A Bulk REO private seller called me about a small 24 home nationwide tape he had just taken down from a bank. He was asking $300,000 for the tape.
- Step 2 – Find A Buyer
I passed on taking down the tape myself but decided to call a buyer I knew who was interested in taking down a nationwide tape. My buyer was very interested.
- Step 3 – Arrange A Conference Call
I arranged for my buyer and seller to talk about the particulars of the deal. The buyer provided verifiable Proof of Funds (POF) to my seller and the tape was sent to him via email.
- Step 4 – Due Diligence
The buyer conducted his due diligence in 3 days and moved forward to take down the tape.
- Step 5 – Master Fee Agreement
The seller and I signed the Master Fee Agreement to pay me the difference between the seller’s price of $300,000 to me and my sale price to my buyer for $325,000.
- Step 6 – Contract & Closing
The buyer executed a contract and made arrangements to close the next day. Once the funds were sent to my seller’s Title Agent, I picked up a check for $25,000.
The worst part about brokering Bulk REO deals is finding REAL buyers and sellers. Most of my time is spent filtering through the fake buyers and sellers of Bulk REO’s. There are lots of fake buyers and sellers of Bulk REO who care nothing more than to waste your time.
~ Kenny Rushing, House Hustler
About Kenny Rushing…
Kenny Rushing is a remarkable tale of a life turned around. A resident of Tampa, Florida who is an evolving account of transformation that is simply extraordinary. Kenny is best known for the moving story of his humble and troubled beginnings, and his phenomenal success as a real estate investor – in spite of the seemingly insurmountable odds he faced. He is a phenomenally successful real estate mogul, civic leader and devoted philanthropist. His company, Rehabbers Superstore, Inc., now grosses millions of dollars per year through real estate transactions and investments. Kenny Rushing is quickly becoming known for the life transforming impact his uncommon wisdom is having on the lives of those who have benefited from his knowledge, wisdom, training and coaching. His goal over the next five years is to teach 1 million people how to achieve financial independence and flip their life through real estate investing.
Kenny Rushing is a living testament that: If KEN Can Do It – So KEN You!
Non-Judicial Foreclosure Phases (Trustee Sales)
Posted by: | CommentsPhase One-
Borrower is Delinquent/ Pre-Foreclosure Stage
Borrower misses a payment and emerges delinquent after the grace period on the loan. Lenders prefer to get paid and avoid the costly foreclosure process if at all possible.
Phase Two-
Default Filed by Lender/(NOD) Notice of Default Stage
If the borrower isn’t capable of bringing the loan current in Stage one- the lender will file a NOD at the county recorders’ office. The borrower will also get a copy of the executed NOD.In some states this document is called a Demand For Sale by Public Trustee.
It’s important to note that if the borrower has the funds to cover the back payments and late fees, they can still reinstate the loan at this point. Should the borrower reinstate the loan, the foreclosure process is halted and if not, the process continues.
Phase Three-
Notice Of Sale
The term Trustee Sale refers to the auction conducted by the trustee of the deed of trust for that particular borrower/property/loan. During this stage, the lender records a Notice of Sale and advertises the pending foreclosure sale of this property. In California, the borrower has up to five (5) business days before the sale date to reinstate the loan.
Phase Four-
Public Auction/ Trustee’s Sale
The Trustee auctions the property off to the highest cash bidder at the courthouse steps- opening the bid at a predetermined amount. If someone bids higher than the opening bid and produces the cash or certified funds, they are awarded the property at that point and a new Trustee Deed is obtained.
Phase Five-
Redemption Period
During the Redemption Period, the borrower can submit the full amount(of what was owed, fees and costs) to the trustee and get the subject property back. Because of the redemption period, the new buyer or investor must wait out this window of time in the event that the homeowners redeems the property.
In the event the homeowner redeems the loan,the trustee refunds the money paid by the purchaser at the auction and the title is returned to the homeowner.
Learn more about Examining Trustee Sale Debt Here
Learn about Trustee Sales Bid Tips Here
As Expected, Pending Home Sales Take A Drop
Posted by: | CommentsExperts predicted the home sales to take a dip once the the homebuyer credit lapsed at the end of April and they were more than accurate.
According to the National Association of Realtors pending home sales fell off with the expiring deadline which allowed buyers to submit their signed purchase contracts to to take advantage of the extended home buyer tax credit.
There were three solid months of strong gains resulting from the surge of qualified buyers making the best of the tax credit prior to the fall off.
The National Association of Realtors (NAR),reports that pending home sales dropped a disastrous 30% in the month of May. Their Pending Home Sales Index, which measures signed sales contracts but not closed sales, plunged to 77.6 from 110.9 in April.
The data reflects contracts and not closings, which normally occur with a lag time of one or two months. Upwards of 180,000 buyers who signed contracts by April 30 may have missed the June 30 closing deadline for the tax credit. However, Congress passed legislation yesterday to extend the deadline for delayed contracts and President Obama is expected to sign.
Lawrence Yun, NAR chief economist had this to say ” Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June,” he said. “Surprisingly, though, some local markets such as Portland, Maine, and Jacksonville, Fla., actually experienced an increase in contract signings from a year ago without the tax credit.
Here’s what Lawrence Yun had to say 1 month ago
“Existing-home sales that close in June will remain elevated, but we’ll then see a notable decline for July and August.”
Congress also reauthorized the National Flood Insurance Program. Many lenders were hesitant to approve mortgages on homes needing flood insurance without congressional action and numerous sales have been on hold. The action is retroactive to a temporary authorization that expired May 31, and also is expected to be signed by the president.
Yun noted the tax credit has broadly stabilized home prices. “Without the tax credit, there will be more aggressive price negotiations between buyers and sellers. The key test on whether the housing market can stand on its own without stimulus medicine will depend critically on private sector job creation in the second half of the year. We’ll also keep a close eye on market conditions on the Gulf Coast.”
Here’s what Lawrence Yun is saying Now…
Through May of this year 495,000 net private sector jobs have been created; NAR’s forecast for employment growth is about 1 million additional net new jobs over the balance of the year and another 2 million in 2011.
“If jobs come back as expected, the pace of home sales should pick up later this year and reach a sustainable level of activity given very favorable affordability conditions,” Yun said.
“In most areas of the country there will be no sharp snap back in home prices in the upcoming years, although some local markets have experienced double-digit gains this year,” Yun said. NAR forecasts the national median home price to rise only 4 percent cumulatively over the next two years.
“One factor that could lead to price acceleration in upcoming years for some markets is if the very low levels of new home construction were to persist for another year or two,” he added.
The PHSI in the Northeast fell 31.6 percent to 67.0 in May and is 14.8 percent lower than May 2009. In the Midwest the index dropped 32.1 percent to 70.8 and is 20.2 percent below a year ago. Pending home sales in the South fell 33.3 percent to an index of 82.5, and are 14.4 percent lower than May 2009. In the West the index declined 20.9 percent to 85.3 and is 15.1 percent below a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
NOTE: References to local markets are from unpublished data. For more information, please contact the local association of Realtors®.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
Existing-home sales for June will be reported July 22 and the next Pending Home Sales Index will be on August 3; release times are 10 a.m. EDT.
Protected: FREE e-book: “Windfall Profits Wholesaling Houses”
Posted by: | CommentsI was wondering how I could improve my Credit Scores ?
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Question by Jessica H: I was wondering how I could improve my Credit Scores ?
I messed up my credit back in 2003 and now My credit Score is between 510-550. What can I do to improve my score most of it will drop off in the next 1-2 years by my credit Report. The reason I ask is that I just got married and had a baby and would like to get a House in a 1 or 2 years .Any suggestions?
Best answer:
Answer by . .
Pay off your debt, start with those that have highest interest first. NEVER be late on payment (being late on ANY bill can also get reported..not just creditcards). Pay as much as you can, not just minimum balance (interest will kill you and will take even longer to pay it off) Keep your credit card debt as close to 0 as possible or at the very least less than 30% of your total credit line at all times..
What do you think? Answer below!
Do’s, Don’t s and Types of Credit Cards
Posted by: | CommentsReal Estate Investors Use Credit Cards much of the time.
There are three main types of credit cards that are common in America. They are travel and entertainment cards such as American Express or Diners Card.
Credit cards are ubiquitous in our lives.
These have to be paid in full at the end of the month and are liberal on spending limits.
The second major cards are the bank cards such as Master Cards, Visa, GM, and Ford cards sponsored mainly by the banks. The bank defines spending limits, which in the bank parlance, is known as the credit lines, and each offers different terms and conditions. Banks offer a choice of payment methods, either pay the balance in full with no interest or pay a minimum part or some part of the balance with a finance charge.
The other major type of card is the retail store cards such as Sears, J.C. Penney, Shell or Mobil. These cards, known in some countries (the ones from gas companies) as fuel cards are only accepted in specific countries and usually do not have annual fees. There is a wide disparity in the terms and conditions for the cards.
Different types of credit cards offer several different options, depending on what your needs are. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, you should review a few of your options.
There is a lot of truth in the advice that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme replaying in your mind. And you would do good to remember the following too.
Do’s.
Always plan for the purchases that you need and those that you want. You need the essentials, and you want everything else. The ability of making a distinction might help you plan wisely.
If caught up in financial difficulties, it’s always good to talk to the issuer who might re-schedule your payments. If you simply default, that only helps to build up an unfavorable credit history and you might find yourself being denied credit next time.
Unless it is an emergency, staying within your credit limits will help you a great deal. If you must spend over the limit, ensure you are within the manageable levels, say within 30 percent.
And if your mails are flushed with more favorite deals than you currently are enjoying, you may approach your issuer for a better deal. They want to retain you as their customer, so they will listen.
Dont’s
Do not use your credit card to make house hold purchases. It’s expensive in the long run
Do not just pay the minimal amount. You will end up paying exorbitant interest. The quicker you clear the debt the better.
Do not use the credit card to purchase things you can’t afford…and if you find yourself in trouble- drop us an email and we’ll put you in touch with our resident credit expert Hannah Fliegel.
Resources
I am in a problem fixing credit score. How can I fix credit score?
Posted by: | CommentsQuestion by Malorie: I am in a problem fixing credit score. How can I fix credit score?
I am in a problem fixing credit score. How can I fix credit score?
I have been trying to fix my credit score for the last two week. But I have no clear idea, how to fix it. Please help me, how I can fix credit score?
Best answer:
Answer by Renny76
I’ve also been trying to improve my credit score. I’m learning that it takes awhile to improve a credit score but it can be done. Your credit score is based on several things such as: the total number of accounts you have, what type of accounts, any occurring late payment fees, outstanding debts, filing bankruptcy and age of accounts. Often creditors take into consideration whether or not you own your home and if you’re currently employed, and length of employment. Creditors then take all of these factors and combine them together using a credit scoring system to come up with your credit score.
You can improve your credit score by always making your payments on time, or before the due date, if possible. Work on paying off any outstanding debt. Pay down credit cards and never exceed your credit limits. Don’t apply for more credit cards until you pay off the ones you currently use. Ideally, it’s best to have no more than two credit card accounts. Usually excessive credit card balances and overdue accounts seem to be the two most common negative factors when it comes to a low credit score. Hope that helps!
Give your answer to this question below!
Q&A: what are some good credit building strategies?
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Question by Alleyviper: what are some good credit building strategies?
I’ve been out of work for about six months and got behind on my bills and now I trying to get caught up. But now I got to repair and rebuild my credit and good tip on how to get started. For what an accountant want I can get it done myself I hope. what are some good tips for getting it done
thank you all for your help
Best answer:
Answer by vickie_1152
I would pay off my smaller bills first, then use that extra money and put on the larger ones until all paid.
What do you think? Answer below!
