This little posting was in our Realtor newsletter this week. This spells incredibly opportunity for those of you doing short sales, but only if you have the funds available to take advantage of these deals. Read on. . .
Many Homeowners are “Underwater”
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According to a report by First American CoreLogic, at least 7.5 million American homeowners are “underwater borrowers,” meaning they owe more on their mortgages than their homes are currently worth.
This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5 percent more than the mortgages they’re paying on them.
The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater.
…Nevada is home to the highest number of underwater borrowers, with 48 percent of homeowners having negative equity. Michigan follows with 39 percent.
New York is faring best at 4.4 percent.
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[SOURCES: Real Estate Research Center; CNNMoney.com]
Be sure to have your private lenders cash ready to finance these deals. We have lined up several lenders with large amounts of cash to close on short sale opportunities quickly. We only need the cash a short time and by having the funds readily available we’re able to “make hay while the sun shines!”
NOW is the time to profit from this market. Don’t sit on the sidelines whining about how great it used to be. Take this opportunity to increase your wealth tenfold.
If you read my last blog post about “using Twitter” and you are new to the whole Twitter experience you’re probably thinking, “ok great, but how do I use this in my business?” Good question and one that I’m still trying to figure out myself. As I mentioned, I’m pretty new to this whole social media thing and I struggle regularly with ways to use it in my business.
Here’s what I have found. The social media outlets are all based around building relationships and caring about others. It’s not about worrying about your bottom line, but about providing valuable, quality information and content. If you care about others whether it be buyers, sellers, or potential lenders and you provide good information to help enhance their lives. You’ll build a following and they’ll tell their friends.
So, what’s all this have to do with Ashton Kutcher? Read more
Marketing is always the key driver to running any business. We always need to be thinking about how we can differentiate our strategies to get ahead and stay current. A lot of my clients ask me all the time if there are any new methods to sourcing private money for real estate deals. Sometimes there are new approaches and sometimes the old, proven methods still work best. Below are the top 5 that I’ve seen the best results from when sourcing new private money sources:
1. Small Aggregate Lending Sites – These sites are put together and funded by other individuals who want to make a return on their money. An example of this is Prosper.com. This site will pool individuals’ money together and bet on you based on your profile to negotiate the interest rate, etc. Their limit is $25K loans but these are great for funding renovation and/or holding costs when you buy a property subject to the existing loan, the seller finances the property on a first mortgage, or you want to renovate a rental that you have. In today’s market another great strategy is making up the back payments on a foreclosure deal and taking it over subject to the existing financing. The great deal about these Prosper.com loans as they aren’t secured against the property.
One of the things I tell investors all the time is how important it is to stay in touch with people. This applies to sellers that you’ve met with who weren’t quite ready that day; buyers that you have in your database; and particularly, most particulary to private lenders or potential private lenders.
The dirty little secret behind finding private lenders isn’t really a secret at all. In fact, it’s basic common sense smart business practices. Read more
Tim sent me an email today explaining a good deal he had just lined up. The sellers are 4 months behind on payments, it’s a decent loan (30 yr. fixed @ 6.5%), and there is about $50,000 in equity that the sellers are willing to walk away from. Tim explained “subject to” to them and they are fine with it they just want to get out. So, Tim shoots me over the specifics and asks me if I would do the deal. Based on the details that I saw I told him Read more