Well after all the hype about a housing turn around, seems like we're not really out of the woods yet.

Home prices have taken a dive for the 4rth month in a row.

SandP Chairman said "The rebound in housing prices seen last fall is fading," . With the Home Buyer tax credit about to expire, we may be in trouble.

Makes you wonder why restrictions are placed so heavily on investors who can actually move inventory, get the houses fixed up and sold either creatively or traditionally.

A Temporary hold on the 90 day seasoning rule helps, but investors have been hampered by lease option and owner financing restrictions as well.

It would be nice to get some help.

What do you guys think?

Bird Dogging
Tax Lien Investing
Deal Funding
Loan Modification
With the residential real estate debacle, comes the commercial free fall. A great opportunity also exists in the commercial market, with refinancing not working and more and more properties becoming abandoned by owners that simply can't deal with them any longer.

The LA Times had a great article on getting into this arena.

Some of the points I really appreciated were:
- Having plenty in reserves
- really ge to know the area
- understand the problem with the property as to why it is not currently profitable
- do your own homework
- see if the property is up to current code.
I comented on that:

Thanks so much for this article.
I appreciate the insight on making sure the property is up to code. That applies to all areas of real estate. With any properties that violate codes the city/county may view it as a dangerous building and look upon it with even more scrutiny. That can increase your repair amounts by a large margin and can even put a halt to work while the necessary permits are pulled.
Not a happy thing.

I would advise to start with apartments that are owned by mom and pop owners. You can get some nice deals here and work out owner finanicing as I have done. It's just a step above residential, and many of your current techniques work in this lower range of commerical properties.


Real Estate Investing A-Z
The Housing Predictor came out with an article claiming that stronger measures will be needed to prevent millions of homes from going into foreclosure.

The approach recommended is something similar to the New Deal approach FDR took during the Great Depression.

Are we at that point yet? Maybe not, but we're definitely getting there. Recent Obama initiatives may place a hold on foreclosures until banks have proven that they have assisted homeowners via the current programs available.

With 5 million homes foreclosed on already and another 15 million at risk of foreclosure, something has to happen. Banks are taking a wait and see approach since they don't know what Obama will do.

Home sellers and real estate investors can work together on loan mods and other creative ways to sell homes quickly should that be what the home owner wishes to do.



Bird Dogging
Tax Lien Investing
Deal Funding
Loan Modification
Now the question is, how do you do that?

Folks have been getting appraisals for years. While they are helpful and many times necessary, real world real estate investors know you have to do your homework as well.

You can make sure your numbers on the value of the property you're buying by doing this. It's quick, easy, and FREE.

Here's what you do:
Find the "area specialist" for the neighborhood your prospective investment property is in. You do this by finding the person that has sold the most houses in that area in the past 6-12 months. Contact them and put them on your side, possibly hinting at letting them sell your home when you're ready.

These folks are the experts. They know what the neighborhood is like, and the price changes from street to street. You can't get much more accure than that.

Hope it helps


Bird Dogging
Tax Lien Investing
Deal Funding
Loan Modification
I read an article at http://ow.ly/1dfh7. It was really a testimonial of a seller in Austin, Texas that couldn't sell their home and went with a real estate investor/professional who did the deal and did it right.

What stood out to me was how the real estate investor provided the home owner with 3 options with which the house can be purchased.

This is genius! There is not a "NO" option here at all!
The seller can only pick from three different options, that will sell the house to the investor.

Best thing about it that we can learn is that the investor LISTENED to the homeowner's needs which were the basis for getting this deal done.

Very nice work.


Real Estate Investing A-Z
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Just in from Housing wire:

New Obama initiative may help homeowners get more time and may even prevent foreclosure on their homes.

Here's how: the proposal would Require Lenders to evaluate the homeowner as candidates for the Home Affordable Modification Program (HAMP).

Here's the kicker. If the homeowners do Not qualify, they may even get another 30 days after receiving the no-qualify letter for Home Affordable Modification Program (HAMP).

This can definitely save some homes- or at least buy some more time. Homeowners armed with this knowledge can forestall foreclosure or work closely with a real estate investor should they feel that selling their home is the best option.

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
Hey guys,

Just giving you a heads up on the proposed HUD mortgage SAFE act. HUD ID 2009-155

It looks as if they are trying to limit Owner Financing to Home owners that actually live in the home they are trying to Owner finance.

Otherwise, they are looking to require licensing from people that they would then view as 'originating a loan'.

As you know that can really hamper some of our creative financing techniques.

Whether this passes remains to be seen. Either way, now is the time to start formulating strategies that work within the bounds of the proposal.

Government has tried to limti real estate investors in lease options, owner financing and title seasoning issues.

We'll survive this as well.


PS Here are some proposed ways you can get involved right now:

The following information is extremely important!

HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT

HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. The proposed HUD Rules interpreting the federalSAFE mortgage act can be viewed at www.regulations.gov  Use the search parameter "HUD" and the keyword “safe”.  Please review and comment regarding the impact of this broad interpretation of the law. 

 “In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certainstatutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified."


As you may recall, we lobbied hard last year to maintain the right for individuals to make up to five seller financed transactions per year before being subject to mortgage originator licensing, etc...  However, that law was passed subject to the Department of Housing and Urban Development's (HUD) approval of the law as "compliant" with the intention of the federal law.  If any state does not have a compliant law, the SAFE act allows HUD to implement licensing for the state.  HUD has since issued proposed rules.  In a nutshell, seller financing would no longer be allowed for non-owner occupied homes.

 How YOU can help:

 We learned about the publishing of the rules very late in the process... and the deadline for comment is upon us on February 16.  However, we desperately need for thousands of REIA members across the country to go on record with HUD on this issue.  We will be working to try to affect this law in other legislative ways, but cannot hope to gain traction unless our members have clearly communicated that they are opposed to this portion of the rules. This is your chance to be counted on this issue.


PLEASE SUBMIT YOUR COMMENTS TO HUD!  We have less than one week to flood this system with comments.


Follow these simple steps:

1.  Logon to www.regulations.gov   You will see two white boxes for searching

2.  On the left box labeled "Document Type", pull the menu down and select "proposed rules"

3.  On the right box labeled "Enter keyword or ID", enter "safe mortgage".  Then, press search

4.  Locate the blue search result "FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ...." To read the rules, click on this title.  You will be taken to another page. You will see "views".  You can click on PDF file or another symbol which will show you the rule document online. 

5.  On the right of the screen, click on "submit comment"

6.  Complete the form providing required information and your comments and then submit

What do you say?

Say what you feel, but say it politely!   The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own.  Some ideas from others:

• bank loans are not available on some types of properties

the tight lending climate has made bank financing "out of reach" for many

• seller financing is an "age old" tradition based on private property rights

• these rules would prohibit even partial seller financing - i.e. a "seller second"

• according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear

• an estimated 6 million Americans own a property other than their own primary residence

an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties

• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing

• approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventory

We've heard a lot of hope lately of finding the bottom to the housing collapse, however new reports from Housing Predictor indicate we may actually see another down turn!

Why? High unemployment, 2.4% downturn in the US economy and failures in the government.

Michael Lea, professor of finance at San Diego State Unversity actually said that 'the dam will break and we will see a significant increase in foreclosures'.

Now that's scary!

What do do ? It's still an excellent time to be a housing investor. Reading articles such as this also shows that you need to buy right and build in profits when you buy- not just relying on appreciation that may not come for a while.

Be more conservative in your after repair values and give yourself some more breathing room when it comes to holding time from purchase to sale or rental.