House Buying Coaching For Ownership and Investing

Here's the situation:

While Houston and Dallas rank 6 and 1 in the nation for commercial real estate growth, the commercial real estate field is very bleak.

North County times reports that: Banking analysts warn that the nation could be swept by a wave of foreclosures of apartment buildings, retail outlets, industrial space, and office complexes in the coming year.

So we just lowball and short sale all these properties right?

Sam Zell who made billions of dollars in commercial real estate doesn't think that will work, especially with apartment complexes not having much equity at all.

His suggestion: Invest in the debt!

Same can be applied in residential real estate as well. This is different from a short sale. Here the note is actually being sold for a discount. Different department all togethe

Standard and Poors reports that it will take at least 3 years for the REO Back log to clear out.

With mortgages continuing to fail at a faster rate than REOs (Bank owned real estate) are being sold, we're heading into a serious back log of properties well into the next few years as well as diminishing home prices.

With the continued under performance of the Home Affordable Modification Program, home prices will continue to go down well into the end of 2010.

Bad news all around.

Homeowners need continued help with Loan Modifications and be well informed and educated as to its use so Loan Modifications don't simply turn into forestalling the inevitable.

Real Estate Investors will also need to watch how they buy. Investors don't want to overextend their purchasing not knowing which way prices will go.

A nice mix of wholesaling (limited risk while earning a nice income) as well as buying at a sizeable discount can help limit risk as well as get you in on a buyer's market that won't be seen for years to come.

Dennis

Builders are trying to cash in on the home buyer tax credit- building up spec homes in hopes to lure first time homebuyers and 'move up' buyers as well.

These buyers come from somewhere and if they're buying these new homes, they're not buying existing homes. It's an emotional move as brought out in the Wall Street Journal article, but is it the right one for people?

Remember how we got in this mess in the first place!

Buyers still have to be careful and not buy just because they can or because there's a deadline to beat.

I've included direct links to IRS forms that new buyers will have to fill out if they will be taking advantage of the tax credits (see Tax Credit category on the right)

Current home sellers can add to the attractiveness of their home by providing financing through lease to own programs or owner financing.

Here's a link to a Free Rent to Own Ebook.

We all have a responsibility in how we get out of this housing crisis.

Dennis

Well, we all knew the housing dream of a few years ago was too good to be true.

We were right and it turned into a nightmare.

According to Housing Predictor:
The new wave of foreclosures is already impacting markets in Southern California, Arizona and Nevada where the crisis triggered some of the worst housing deflation in the country. A new crop of ALT-A loans backed by Fannie Mae, Freddie Mac and the FHA are showing high levels of default. Nearly 4-million other mortgages are at risk of foreclosure in 2010 from subprime and what were newly created mortgage products developed by bankers that helped trigger the crisis.

Additionally, equity in homes have been slashed in half! and Bank of America is foreclosing on folks left and right.

An estimated 15 million more foreclosures are due in the next 5 years while current government measures have only helpd 66,000 people modify their existing loans.

There are solutions we can provide as investors:

From Forbearance, Loan Modifications, Short Sales, and SubjectTo Techniques that can save homes, protect credit, or even give homeowners a fresh start.

The Key is having the knowledge about these options at your disposal to provide the needed help

Dennis

Some of my best deals with huge equity have been through probate deals where there were no mortgages on the property.

Here's the secret to getting probate deals from probate attorneys.

You have to be in the club.

You'll hit a brick wall when you try to go in the front door so just like with any clubs, you need a referral.
 What you do is get another attorney that you have done business with or knows you to write you a referral that you can mail to other attorneys.

All you need is one.

This puts you in the club, because now one of the members is vouching for you.

I use this technique myself and had to stop because I couldn't handle them all.

Dennis