So I have a question for each of you. What is “already there” in your business that you could be taking advantage of but currently are not? All too often, we try to recreate the wheel or do an entirely new marketing campaign when sometimes it’s just as easy as finding what’s already there and actually using it.
I was on a call this morning with a pastor friend and he said, “It doesn’t matter if you have the greatest most powerful computer in the world if you don’t know how to or aren’t using 90% of the programs it came with.”
I think he’s so right.
So, what’s in your life or business already that could be even better with just a small tweak?
When I asked a student this recently, he brought up what he thinks might be the most important source for new deals that most of us overlook. He recently closed a short sale deal referred by an agent he hadn’t worked with before. One of the agent’s coworkers knew my student did short sales and told him to call. This was a CITI deal, the owner owed 430k, my student bought the house for 220k and sold it for 280k! After about a month of not hearing from the agent, my student decided to call him and ask if there were any other deals available. He was told that one of the agent’s associates would be calling him. Later that same day, the associate called and had four- yes, FOUR! -listings that were all delinquent and needed short sales. My student was told that the associate had heard such great things about the deal he was involved in that she would cooperate with whatever he said because she trusted him already. He is now meeting with her this week to get all four of the deals in motion!
It’s not always good enough to provide an awesome service or impress someone with a job well done if people are prone to forget about it two days later. Sometimes you gotta pick up the phone and ask them to return the favor! It could be the best marketing campaign available and it’s right at your fingertips.
During my coaching meeting this morning, one of my coaching students shared a strategy that he just used to pull off a $100,000 profit on a real estate deal he’s been working on. This is a GREAT story, so I just had to share it with each of you. This is actually a strategy that I used to teach, but it’s been a while since I’ve done this and truth be told, I almost forgot about it! He gave me a REALLY good reminder of how much money you can make using ONE SIMPLE strategy.
By the way, this is a strategy that’s required almost NO additional work than what he was already doing in his existing business. Click here to watch the video where I explain what he did in detail. You’re gonna love this one!
Have you ever struggled with getting yourself to take action with something that you know you really want to do, but just can’t see to get off your duff and do it? I know I have.
I also know that a lot of new investors out there struggle with this same thing. Many of which never get off their duff long enough to get out there and even start doing their very first deal. I’ve found that so many people get emotionally caught up in the details of step #7 when they haven’t even done step #1 yet. That being said, I put together a little audio clip of one simple strategy that I’ve used in the past to get me past this hump.
Take a minute and listen to this right now! You’ll be glad you did. Then, when you’re done, let me know what you think below. What do you think? Do you have something similar that you’ve been able to implement in your life that helps you take action, even when you’re not sure how to? (or what about when you don’t even want to?) Share your thoughts below.
Recently, U.S. home seizures rose a record 38 percent as banks processed backlogs. A record 269,962 U.S. homes were seized from delinquent owners in the second quarter as lenders set a pace to claim more than one million properties by the end of 2010, according to RealtyTrac Inc. Home seizures climbed 38 percent from a year earlier and five percent from the first quarter, the Irvine, California-based data company said in a July 15 statement. More than 1.65 million properties received a foreclosure filing, including notices of default, auction, and bank repossession, in the first half of 2010. That was up eight percent from the first six months of 2009.
“Foreclosures haven’t peaked yet,” Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts, said in a telephone interview. Unemployment suggests that bank repossessions may climb for another six to nine months, he said. Waning consumer confidence and the jobless rate, which was 9.5 percent in June, are holding back a housing recovery. The expiration of a federal tax credit for home buyers also cut demand, even as average borrowing costs for a 30-year fixed-rate loan set record lows. The rate was 4.57 percent last week, according to McLean, Virginia-based mortgage finance company, Freddie Mac.
“It’s not interest rates that will get us out of this, but jobs, Retsinas said. New defaults seem to have stabilized, but there’s still a lot of volatility overall.”
One in 78 U.S. households received a foreclosure filing in the first half of the year, and filings surpassed 300,000 for the 16th consecutive month in June, RealtyTrac said. Lenders seized a total of 529,633 homes — the final stage of the foreclosure process — in the first half of 2010, said Daren Blomquist, the data firm’s marketing manager.
In some cases, banks are trying to avert foreclosure by modifying loans or attempting short sales, a situation in which a property is sold for less than the amount owed. That’s pushing down the number of new default notices even as lenders “clear out a backlog” and seize more homes, James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement.
The number of properties that got a filing from April through June totaled 895,521, a four-percent drop from the previous quarter and barely changed from one year ago. Total filings for the year are forecast to exceed three million, according to the data company.
“While the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” Saccachio said.
In the United States, Nevada had the highest foreclosure rate, as one in 17 households received a filing in the first half of 2010. The number of properties that got a notice totaled 64,429, down 13 percent from the previous six months and six percent from a year ago.
Arizona ranked second at one in thirty households, and Florida was third at one in thirty-two. Rounding out the ten highest rates were California, Utah, Georgia, Michigan, Idaho, Illinois, and Colorado. California led in total filings as 340,740 properties got a notice, down fifteen percent from the previous six months and almost thirteen percent from a year earlier, according to RealtyTrac.
Florida was second with 277,073 properties, down nine percent from the previous six months and up three percent from the first half of 2009. Arizona was third at 91,484, down almost two percent from the previous period and up by a similar proportion from a year earlier.
Other states among the ten highest totals were Illinois at 85,223; Michigan at 78,509; Georgia at 71,949; Texas at 64,883; Nevada at 64,429; Ohio at 59,927; and New Jersey at 36,542.
RealtyTrac sells default data from more than 2,200 counties, representing 90 percent of the U.S. population.
Adapted from an article by Dan Levy, July 15, 2010. You can email him at dlevy13@bloomberg.net.
Apparently, Fannie Mae has decided to change up the rules a bit. Now borrowers who are facing foreclosure have a little different set of rules as to when they can expect to be able to qualify for another loan and purchase another house.
My good friend Devon Andrich is a real estate attorney who lives in Phoenix, Arizona. I’ve known him since I was 17; we worked together flipping pancakes at Bob Evans. Sometimes it’s hard for us to believe how far things have come in a relatively short period of time.
When I was spoke in Arizona last month, Devon shared some unique strategies on negotiating short sales with banks. He knows his stuff, and as I listened to him, it was hard to believe this was the same guy who used to play “Think Fast” with me at Bob Evans. (“Think Fast” is a game where one person would throw something, such as an egg or pancake, at another person during our busiest part of the business day. The thrower had to yell “think fast!” before the item went airborne, and the catcher had to immediately drop everything he was doing and catch the random flying object.)
After I returned from Arizona, Devon shared a report that he wrote entitled “When to Walk Away”, and with his permission, I’m now sharing it with you. You can check it out by clicking here.
As you’ll see, you always know where you stand with Devon. On one hand I agree with most of what he wrote. On the other hand, the reason people feel bad and experience these emotions is because they have signed and PROMISED to repay their loans, and now they aren’t living up to their promises.
In my opinion, however, if someone is behind on payments, it IS their fault. They are the ones who failed to plan and didn’t have enough savings to handle their house payments and the unexpected things that may arise. They are the ones who chose (most of the time) not to put any (or enough) money down on their original purchases. They signed loans that they probably never read before signing.
For these reasons alone, they are obligated to pay their mortgages if they are able to. If they can’t, they can’t; then they need to consider alternatives, such as short sale, etc… But ultimately, they have made serious commitments that they need to follow through on whether they want to or not.
So what do you think? I’m curious to hear your thoughts on this. Is Devon right on with his approach? Please leave a comment below.
We all know that many people around the country are struggling financially, many are even facing foreclosure. Terry Hoskins found himself in this same position, but he took a different tack. Now, in addition to facing financial problems, he may be looking at jail time.
So what you think? Did Terry do the right thing? Or is he absolutely NUTS and deserves to go to jail? Leave a comment and let me know.
WASHINGTON – Dec. 1, 2009 – The Obama Administration, through the Treasury Department, announced new housing guidelines yesterday. While a series of announcements highlighted different programs, the National Association of Realtors (NAR) focused on changes that will make it easier for real estate associates to deal with short sales and “deeds in lieu of foreclosure.”
The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA), and it’s part of an existing initiative, the Home Affordable Modification Program (HAMP). HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which cover over half of all U.S. mortgages; however, Fannie and Freddie will issue their own versions of HAFA in coming weeks.
While HAFA’s goal is simple – increase the number of short sales and “deeds in lieu of foreclosure” by simplifying the process – the rules are complex, and it comes with 43 pages of guidelines and forms. Among other things, HAFA:
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed.)
• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors.
The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on Dec. 31, 2012.
How do you think this information will affect your business? (And by the way, it WILL affect your business whether or not you’re even doing short sales yet…) Please post your response below and I’ll provide some feedback once I hear from you.
In my latest deal that closed on Friday, there were many things
that happened from the inspection that most of the people doing
rehabs might have overlooked. Part of my teaching style in my
systems and live events is to teach you things that you would
not have realized on your own.
Sometimes you must look very hard at a property to find the little
things that will add up and may cost you thousands of dollars
you had not intended to spend. I teach how to do property
inspections…one of the most important tasks that will save you
big bucks if you know what to look for. See, the buyer will hire
a property inspector to list the defects of your property as a
tool for getting a discount on the deal or will attempt to
get you, the seller, to pay for these repairs. Here’s what we had
to recognize on my last deal.
First, the gutters did not have a nice line to them. They had
sagging areas that made the property look as if it would be best
to replace the gutters,which would have cost around $800.
But for under $20.00, I got some gutter brackets that attached
with a screw gun and had a helper use a 2 x 4 stud to push up on
the gutters to get them back in line as I screwed the brackets
tightly into the fascia board. This made the appearance 100%
better and saved about $780.00.
Next problem was something that most would have missed seeing,
unless you have a trained eye. Some siding had been replaced
due to moisture rot on the bottom of the house around the entire
exterior. (Probably from the gutter situation). An inspector would
have picked up on this and made a big deal out of it. You see,
siding must not touch the ground around the house. This makes for
easy insect infestation, such as termites, and also stops some
loan institutions from financing a deal with this situation.
Commonly, siding must be about 6 inches from the ground to be
considered correct. To save money, we did not tear out the siding
and start over. We got on both ends of the side portions of the
house and measured up six inches from the ground, and then snapped
a chalk line that marked the siding all the way across each side
of the house. Then we adjusted the blade on our skill saw to _
inch and used it to trim the bottom six inches off the house. This
now was acceptable for the inspection.
The toilets in the house seemed as if they could be kept if they
were given new working parts on the inside. I put newspaper around
the bottoms and flushed a few times, then left the newspaper
overnight. When we returned the next day, we found that the paper
had absorbed some water. This indicated that the wax ring in both
toilets had been seeping a little. So by the time we added
up the moving parts or guts to be replaced, then the wax rings and
then the plumbers labor cost per hour, it was actually cheaper to
just buy new toilets. The new ones came complete with all new
parts, most installed already. Therefore, it takes the plumber
less time at his hourly rate to install new toilets rather than
rebuild the old ones. It also looks good to the buyer to see
brand new fixtures.
The cabinets were stained dark brown and had a thin layer of poly
on them. They really needed a fresh look to avoid replacing them.
I have written previously on how to prep and paint stained cabinets
for a nice white look but this is a also a great way to give a
brand new look for under $5.00. In most any store that sells
cleaning supplies you can find a product called “Old English Scratch
Remover”. Pour this dark oil onto a white terry cloth rag and
rub it over the entire cabinet area. This will not only blend in any
light and dark areas but will also give the appearance of freshly
stained and varnished cabinets. This one tip will save you easily
about $1000.00 and is one that you will use over and over in your
investing career.
Last, was the big killer. If overlooked this could easily cost you
several thousand dollars and, in many cases, it’s a deal breaker if
you do not replace it. It is also something you should use as a
discount when buying the house as an investor. Either way,
somebody is likely to have to pay for this replacement. I am
talking about polybutelyne water piping. Usually identified by
its blue coloring, this piping has a reputation of breaking and
leaking, causing thousands in water damage. Though many houses may
have it, nobody wants it. Not only is it unpopular, it’s expensive
to replace. But using the techniques I teach in Rehab 101 we got
our estimate to replace the entire pipe in the house and the
underground service from the street down from $7995.00 to about
half the cost at $4200.00. That’s a great savings on just that
item alone. So be careful not to overlook a house’s “fine print”
when you do your initial walk around. Look beyond just what you
think you see and learn to look for the less obvious repairs that
could make or break a good deal.
