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The worst is not over and if you think the real estate markets are in bad shape now it’s going to get a lot worse! Bad news for some and good news for investors that understand how to capitalize on the ever changing real estate markets.

Foreclosure rates are continuing at record levels and there is no end in site. Investors and homeowners of financial means have been hanging on and clinging to the hope and dream that things will soon turn around and get better. Many have been hanging on because they are financially sound, they are too proud to lose a home to foreclosure, or they were dreaming that somehow things would work out. They are waking up to reality in a cold sweat!

The homeowners and investors that have been hanging on and bleeding to death financially by supporting upside down houses are quickly coming to the conclusion that it is financially more prudent to lose a house to foreclosure because there is no point in riding the titanic to the bottom of the sea. If you have negative equity of 50K, 100K, or 250K it does not make sense to make payments on the loan when it would take years and years to recapture the losses by hanging on and hoping the prices return. Foreclosure has become a financial decision that now makes sense.

Walking away from an upside down house may ruin your credit now but many are discovering it is worth it to be rid of the negative equity that would lock them into losses for years! Because of this realization people are walking away from portfolios of houses that will be lost to foreclosure. The good news for investors is we can buy foreclosures and REOs for pennies on the dollar.

The next major setback for the market is effective October 1^st the Housing Act prohibits seller-assisted financing (presumably this includes the Nehemiah program) and this will lock millions of would be homeowners out of the market and add steam to the housing melt down. How many buyers do you know that have 10% available for a down payment?

The good news? Seller financing will return in force. Banks will be forced to accept lower offers on short sales and REO’s as a matter of necessity and many will carry their own financing. Investors will dominate because they have the means, skills, and ability to buy properties.

In fact, it is already happening and there are greater opportunities now in this emerging market that investors can exploit. In many areas it is now possible to buy newer houses at price levels not seen since the 1990’s. Lenders are negotiating as low as 30% of the defaulted debt amounts. Houses are selling for amounts that provide great cash flow for rental properties.

The best part about the so called housing crash is that it has all been manufactured and is not a real reflection of the market. Bold words… maybe. But if you look at the situation intelligently you can see that there is no shortage of people who want to buy houses. What has created the ‘housing crash’ is the money supply has been turned off which prevents buyers from getting loans and buying houses.

It’s just like a water faucet and the availability of money has been turned off and a draught has ensued. And like a water faucet the availability of money can be turned on at any time and when that happens there will be a rush of buyers to take advantage of the lower prices and the rebound will be in full swing. Imagine the popularity of a new President that ‘turned on’ the money supply and rescued the housing markets. It could happen that fast.

With the changing times there will be a changing of wealth as there has always been throughout history.  While most become victims of choice a few will become wealthy by taking action and seizing  the opportunity.

Closing News: The special on the Ultimate Real Estate Marketing Software ends on August 31^st at midnight. That’s an 87% savings on the best real estate marketing software on the planet. You’d be wise to get it while you can.

Special Offer: The Ultimate REM is still in Pre-Release mode and not being offered to the public… yet.  If you’d like an 87% savings I’ve reactivated the special code ‘UREM87′ that is good through the end of the month.  Go to www.kickassrealestatemarketing.com then on the order page enter ‘UREM87′ for the special.

Author: Gerald Romine

A question I’m commonly asked is what effect does a short sale, deed in lieu of foreclosure, or foreclosure have on my credit and when can I buy another house?

Believe it or not a short sale, deed in lieu of foreclosure, and foreclosure all have roughly the same impact on your credit score. In other words your credit score is going to be hammered.

Most new loans are resold to Fannie Mae and Freddie Mac and beginning August 1 Fannie Mae generally will not buy loans to borrowers involved in a short sale in the last two years. A deed in lieu of foreclosure is 4 years. A foreclosure is 5 years.

Although your credit score will be treated the same your ability to buy a house will vary greatly since most lenders sell their loans to Fannie Mae and Freddie Mac.

Why Do Short Sales Get The Best Treatment

Short sales are the preferential loss to lenders because it saves them the trouble of having to sell the house!

This is POWERFUL information because it gives owners an incentive to work with you for completing a short sale because they have a better chance of buying a home in two years instead of 5 years if the home is foreclosed on! And when you can complete short sale packages in minutes negotiating short sales because easy and routine.

Author: Gerald Romine

The news is filled with doom and gloom about real estate, real estate investing, and the economy.  Home values dropping. Foreclosures at record highs. Mortgage rate is up, etc.

If you read the news don’t believe the hype because contrary to popular belief we are in transition to a new economy, and you must choose whether to make the transition or to stand still. People are making money, big money right now.

Just last week a good friend of mine made over 30K on one little house deal. Here are his steps. 1) Bought REO. 2) Blow and Go (quick rehab normally 10K or less spent). 3) sell best property a little lower than comps(about 10-15K).  It’s quick and easy and the biggest catch is you might have to hold the property 90 days to meet lender’s seasoning requirements.

How To Make Money With Bad News In The Media

When you see a short article that serves your purpose (like the one below) send it to the lender with your short sale or REO offer.  Simply highlight the most important parts and let the article speak volumes for you.

In this case one paragraph talks about houses losing 25% of their value and that goes a long way to justify a low offer!

Author: Gerald Romine

Banks have a real big ugly problem because foreclosures are at record highs, property values are falling, there is a shortage of real buyers, and once they foreclose on a property it becomes there dead asset. What’s a bank to do???

When the market was booming banks scoffed at the idea of selling properties at a discount through foreclosures or REO’s. Many banks laid off most of the loss mitigation staff because they had grown fat and lazy with the market boom. But oh how the times have changed.

Short sales are now hotter than ever and I’m going to let you in on a dirty little short sale secret. Sometimes a bank can do a shortsale and sometimes they can’t . You see… it all depends on who the “investor” is on the loan, if it is tied to a security, and a few other important behind the scene facts most investors are never privy too.

To keep it simple just understand that a bank could have two houses side by side with the exact same loan balances and with one house they can short sale and with the other house their hands are tied and they can do little or nothing other than foreclose on the house.

Does that mean you should not pursue short sales? No! It means you should understand that the “bank” is not always calling the shots. Personally, I love short sales because you can get some TREMENDOUS BARGAINS… But today I’m going to focus on REO’s because not only can you get phenomenal deals they can be quick and easy too!

ANALYZING and MAKING OFFERS On REO PROPERTIES LIKE A PRO

Whether you are buying a house to live in, to hold as an investment, or to flip for a quick profit, knowing your profit BEFORE your offer is the key to making a great deal! As easy as this sounds most investors do not take the time to “run the numbers” on a property before making an offer and in today’s market it has never been more important because with the changing markets you could go into a NEGATIVE EQUITY position if you do not buy right.

Bottom line is you have to run the numbers and know your profits before you even make an offer.

The Art Of Presenting The Offer

Let’s face it, nobody likes to lose money!

While it is true that the banks are writing off losses faster than the ink can dry that does not mean the bank is going to just give you an REO property for pennies on the dollar. The key to your REO success is presenting the offer in such a manner that the bank sees your offer as a fair and reasonable solution to their problem of holding a non performing asset – AKA a vacant house that is bleeding them dry.

Sounds simple enough, but presenting the right offer to the bank is not nearly as easy as you think. The key is to do the bank’s job for them and put together “the right” package presented in the right manner with the right words so it is easy for the bank to JUSTIFY accepting your offer.

Basically, you are doing the banks job of justifying your offer for them. When you make the REO departments job easy to say yes then it goes without explanation that your offers will be accepted faster.

Fortunately there is the Ultimate Real Estate Investing System available where it takes you just 5 short minutes to analyze and put together near perfect REO offers that are worded and justified so the bank can easily say yes and accept your offers!

Here’s what happened when John Pierro used the Ultimate Real Estate Investing System to make an REO Offer:

“My Very First Offer Using UREI”

“I can describe my very first offer I made on an 2 Family REO property using the UREI software. The offer was accepted on the first try because of the Justification that UREI explains for you. I was actually expecting to receive a counter offer from the bank, and was prepared to go up an additional 10K. To my surprise the offer was accepted at $ 204,343.00. The ARV(true property value) on this property is $ 380,000. I spoke with the REO agent afterwards and she was blown away, and said she had never see an offer quite like the one I provided, she (REO AGENT) went on to say it made her job a whole lot easier, because the bank called her, and ask her opinion and she was able to justify it by simply confirming what was written on the offer as the bank rep followed along.” John Pierrro - Ronkonkoma, New York

The Advantage of REO’s Over Short Sales

When attempting a short sale the cooperation of the lender and property owner are required to complete the short sale. The bank does not own the property and the only power they really have is to foreclosure on the note (which takes time) or to negotiate a short sale or other workout program. In short the bank may want to work something out but because the bank is not the property owner they have limited options.

Buying REO properties can be much easier because the bank is the owner and they alone make the decisions to sell the house. Once a property becomes an REO the bank now becomes responsible for property upkeep, HOA dues, utilities to have the property show ready, property insurance, etc. Once the property becomes an REO the bank has real property owner expenses and for most banks the only option is to sell the property. And since banks make their money by creating and servicing loans they want/need to get rid of REO’s fast so they can be in the loan making business and not have the expenses, risks, and liabilities of vacant houses. REO properties are prime for major SWEET deals!

Not since the 1980’s have we seen REO opportunities like we have in today’s market. So long as the foreclosure rates are high the REO opportunities will be plentiful. For an REO buyer the part is we are in an election year and much of the real banking fiasco is being swept under the rug as politicians battle for the presidency and control of the house and senate. This translates to the banking fiasco not being answered anytime soon and no end in sight for REO Investors to make extreme deals and profits.

The REO Investing System

The Ultimate Real Estate Investing System(UREI) is the most complete real estate investing system ever created and includes a NEW REO Module. Go here for more information on REO’s and UREI.

Note: The New REO Package has just been released and is not shown in the above link… but is part of the system.

EXISTING UREI SYSTEM OWNERS can request the NEW REO MODULE be uploaded to their account free of charge by completing a support ticket request for the REO PACKAGE for Existing UREI Users.

Author: Gerald Romine

When I first heard the news that the FHA waived the 90 day seasoning rule I thought it was cause for celebration because right now approximately 90% of the buyer loans are reported to be FHA loans. Dropping the 90 day seasoning requirement would be huge for flippers and the market in general.

Say it Ain’t So Joe!

The government who thinks they know more than anybody else put the 90 day seasoning requirement in place for FHA Loans because they thought this would deter flipping schemes. Chalk this up as another government screw up.

Seasoning had nothing to do with “flipping” schemes because the value of a property is determined by the property and not the time it has been owned. If an investor buys a 100K property for 50K and wants to sell it the next day for 100K what’s the problem. Definitely not the seasoning or time the property was owned.

The real problem has been fraudulent appraisals. After all, it is the appraiser setting the value for the new loan. The problem is obvious to anyone of intelligence… which by default rules out the government.

Check The New Waiver From HUD For Yourself

Who Really Benefits?

The lenders. Big surprise right? The bottom line is the lenders are now able to sell their REO’s that were acquired by foreclosure to FHA buyers without having any seasoning requirements. Which brings us back to the government screwing things up again. Funny how the lenders can quick turn a property but you and I cannot buy and sell a property with an FHA loan unless it is seasoned for 90 days.

What About Investors?

No change. You still can’t buy and sell a property to an FHA Buyer unless you meet the seasoning requirements.

Author: Gerald Romine

If you are already actively buying and selling houses in the current market consider this message an update of what you are already experiencing in the market.

If you are NOT currently an active real estate investor you will find this message helpful to move you from thinking about taking action to improve your income and life…to actually taking action to do so.

**********************************************

First, I want to start off with a WARNING:

This is a warning that you could easily be locked out of possibly the biggest real estate buying opportunity ever due to sheer ignorance. The truth hurts and before you discredit those harsh words realize I am not trying to sell you anything.

Have the markets changed? Definitely.

Is it harder to get financing on properties? Absolutely.

Are investors making money? Yes… and lots of it. Are you???

Between my involvement in the market and the feedback I get from successful investors using the Ultimate Real Estate Investing System I have an understanding of what’s really happening in the markets like no other.

Now, I want to tell you about what’s really working in the real estate markets.

1) Short Sales: With record foreclosures and REO properties backing up the lenders are seeing the need to play ball and move short sales whenever possible. Make no mistake that short sales are a REAL opportunity and unbelievable deals are being done. Understand that some lenders are easy to work with and other lenders are nearly impossible. UREI users have a distinct advantage because it takes less than 5 minutes to prepare complete short sale packages and if you are in the short sale game be sure to have an efficient system.

Note: UREI users are even getting short sales accepted on properties that are current on the payments.

2) Subject To: A VERY successful strategy in today’s market is to find a price range of a properties that will cash flow as rental property then go after that range with offers to take over the existing financing.

Example: A 3/2 in Phoenix may rent for $1000 per month. Searching the MLS I found 67 homes in the city of Phoenix that are 3 bedrooms and 2 baths and have 1000 square feet or more with a price that is under $90,000. The lowest priced property is $37,500! The second home is $45,500 and is an REO offering a $1000 bonus to the buyer’s agent.

Let’s look at the possible numbers for a house with a $90,000 loan. If the loan was a 30 year fixed at 6.5% the monthly principle and interest payment would be $569. Add another $200 for taxes and insurance and the PITI would be $769. If the property rents for $1000 per month the cash flow after reasonable expenses would be positive and let’s assume $100 per month. Not bad for a nothing down deal and taking over the payments.

Huge opportunities abound and subject to’s do not require you to get new loans or qualify for financing.

3) REOs: I can’t say enough about the opportunities to buy REO properties. Banks are leading the pack with price reductions and the opportunities to make once in a lifetime deals are everywhere.

WHY IS THIS SO IMPORTANT?

For many, for a growing number of would be real estate investors, the news about a bad economy is keeping them out of the market and stopping them from what may prove to be the biggest opportunity and fastest way to wealth ever presented through real estate!

The three types of investing outlined above can be the solution to negative developments and news in the real estate industry that we are constantly bombarded with by American TV and media.

It can permit profitable focus on small niches or sub-niches of the real estate market.

I’ve put hundreds of real estate investors on this fast track, one way or another, and I’m on top of the markets daily and aware of the latest developments.

You may think real estate success is beyond you in the current market but you may change your mind if you learn to focus on what’s really working and ignore all of the media noise. And if you have any thoughts of actually building a thriving real estate investing business that can secure your financial future now is the time to tune in and get involved.

Author: Gerald Romine

Note: Your comments are encouraged.

Why are bankruptcy’s so hot?

The truth is most people hear bankruptcy and because they do not understand much about the process they give up thinking it is too difficult or that they need a lot more knowledge to pursue bankruptcy investing. That’s BIG Mistake #1.

The second big mistake is people think that a bankruptcy real estate investor deal is a longshot deal because you have deal with the BK court, petition for releases, etc. While that can be true that IS NOT what Mark and Caryn do with BK’s!

Mark and Caryn specialize in Bankruptcy Properties that have just been released from bankruptcy and when you understand why they specialize it will make perfect sense that you do the same.

Here’s What’s Critical To Understand

When you do what Mark and Caryn do you are targeting specific properties that have been released from the bankruptcy and now the seller/owner is under the gun to get things done. Many of the properties will be lost to foreclosure in days or weeks and at this point the seller recognizes the bankruptcy game is over and they are either going to get something or nothing… but they do not have time to hold out and stall or they get the big goose egg.

Here’s The Best Part

This segment of bankruptcy property has virtually no competition! Think about it and it is easy to understand why. Just start asking the investors you know how many of them have bought a bankruptcy property and you’ll quickly discover it is a rarity. Not because it is hard but because virtually nobody understands what to do and how to do it.

So do it NOW!

Do yourself a favor and watch this video for the education. You’ll be glad you did.

Bankruptcy Secrets Webinar.

Author: Gerald Romine

I could not resist the urge to reply to a real estate agent that thought foreclosures and short sales would be the death of the real estate market and went on to beg everybody to vote for the President that would fix the mortgage mess. Just another example of somebody with a victim mentality wanting somebody else to come to the rescue.

Here’s my unedited response:

You’ve got the wrong approach there my friend. Short sales and foreclosures are not the death of real estate markets they are a result of the current real estate market.

The fact is if buyers must have 100% financing to get a loan then MAYBE they shouldn’t be buying! Here’s a revolutionary idea… how about if people started spending less than they make and saving money so they would have a down payment, rainy day stash, etc.

I get that bank financing is hard to come by for most buyers but where one door closes another opens. I have properties I’d like to sell but it is better to hold them now and be in the buying mode looking for deals.

And one does not need bank financing to buy properties. Alternatives include cash, subject to, private money, hard money, and owner terms.

As an agent a LONG time ago I remember simultaneous note purchases and this is still a possibility for owners and agents if they get creative. Have you ever carried a real estate commission in the form of a note?

Wake up, this is nothing new and some of us have been there before and could tell you some real war stories about 23% interest and banks offering financing like it was “you name your terms.”

Best thing for the market is if the government stays out of it and it is left to correct itself. And PLEASE, what could the President do to fix this mortgage mess? Throw more taxpayer money at it?

Gerald Romine

Today I had to be in the bankruptcy court because a seller wrongly included a property that was not longer theirs in a bankruptcy filing as a way to stay in the house payment free. A real sleazy thing to do.

So we show up to petition the court for a release and what a surprise, the seller doesn’t show up and the judge releases the stay per our request.

This is one example where the former owner was doing something very wrong… especially considering that they were hours from losing the home to foreclosure when they took out a private money loan in the first place.

That aside, there can be legitimate uses for bankruptcy and many real estate investors have decided that bankruptcy was the right tool for them to start over after having made some bad investment decisions.

How To Establish Credit After A Bankruptcy

1. 1. Apply for a secured credit card. Forget the other advice because this will save you time and frustration.
2. 2. Charge everything you can on the secured credit card without going over the limit. Pay the card off every month.
3. 3. Open a savings account and set aside a certain amount into the account every month. Don’t touch this money… just let it grow.
4. 4. Check out www.annualcreditreport.com. You’re able to get a free credit report but make sure you agree to see the report for 30 days or you may not be able to access the report later.
5. 5. Find and dispute all negative reports online. State reasons and be sure to add personal statements whenever possible. Repeat every 20 days. Repeat challenges every 20 days!
6. 6. Repeat steps 4 and 5 every 3 months until you have the desired results.
7. 7. Simple as this sounds be sure to PAY your accounts on time.

Author: Gerald Romine

Gerald Romine’s Kick Ass Training Call For Real Estate Investors. The Easy Way To Profit With Real Estate Bankruptcy Join us for a Webinar on May 14th

Frustrated with how much you’re not making as a real estate investor? Tired of trying to get a deal from the foreclosure list? Wishing you could market to sellers who are unknown by other investors? That’s exactly what Mark Klee & Caryn McKinney discovered in the bankruptcy niche market. They’ve made a fortune in real estate investing through bankruptcies and you’re not going to want to miss this ONE time event where I bring in Mark and Caryn to our training call to show you how to take advantage of Bankruptcy Profits!. Wednesday May 14, 2008 Eastern: (9:00-10:30 PM) Central: (800-9:30 PM) Pacific: (6:00-7:30PM) Reserve your Webinar seat now at: Kick Ass Real Estate Bankruptcy Webinar With Gerald Romine, Mark Klee & Caryn McKinney

IndyMac bank has adopted a new policy of charging $300 for real estate
investors to submit a short sale. This is absolutely insane for Indymac bank or
any lender to expect an investor to flush $300 down the toilet.

My conversation would be something like… “Let me get this straight… you want
me to pay you $300 for the privilege of you saying no and taking my $300. Do I
look like and idiot? Here’s something for you to think about. Right now I’m
holding the deed on the property in escrow pending our negotiations on a short
sale. How about if you pay me to release the deed to you won’t have to wait 3
months to file foreclosure, 3 months for the foreclosure process, miss at least
6 months of payments, and hope the borrower does not file bankruptcy which
delays your losses indefinitely all while the value of your security is dropping
like a rock. Did you want to review my short sale package or play or watch the
values drop on your security?”

Check out my video real estate tip for more information.

Get the latest Flash Player to see this player.

For as long as I can remember I’ve wanted to go skydiving. Why? For the same reason people climb mountains… because the opportunity is there! The thrill of freefalling from 12,000 feet at 120 MPH and then floating down to earth just has an undeniable appeal for the adventurer in me.

Today would be the day my skydiving dream came true.

When we arrived at the Skydiving Hanger in Coolidge, Arizona, there was an old Cessna 182 (a tiny plane designed to seat 4 people at the most) sitting in front of the hanger. The engine cover was off and it was undergoing some kind of mechanical repair. Obviously, that wouldn’t (couldn’t!) be our plane. We wondered aloud what type of plane we’d be jumping from today.

Our wonderful experience was scheduled for 9:00 AM, and, from what we could tell, the jump crew was in a state of recovery from a fun night before. It must have been a blast — the pilot did not arrive until 11:00 AM, and the state of the jumpmaster’s eyes told us he too had a long and interesting night.

Before we could jump, we had to watch a skydiving video. It details all the disclaimers that have to be signed. The bottom line of the disclaimers: there could be a malfunction with the plane, parachute, instructor, or act of God and you could die.

I remarked to Denny, an attorney, that their insurance must be very expensive. He nodded in agreement. And then I noticed on the title of the disclaimer that the company is “uninsured.” Huh. Interesting. Maybe I’m crazy, but none if this mattered. Why? Because if you go skydiving you’re nuts if you don’t realize that death is a possibility (even though statistics tell us driving a car is far more dangerous).

While waiting for the pilot to arrive, we filled the time. We talked about real estate investing and then Denny and I found a bench press and did a quick chest workout. Finally the pilot arrived and it was time for the first jump of the day.

I quickly volunteered to jump first. When the jumpmaster discovered I was an “Adrenaline Junkie” he asked me if I wanted to “Drive the Lamborghini” today. Sounded like fun to me! Fast cars are great! I quickly agreed without really understanding what I was agreeing to. Turns out the “Lamborghini” is a smaller, more maneuverable parachute. You come in at a (much) higher speed because there is less drag created by a small parachute.

Most people wear a jumpsuit, but it was over 100 degrees and I chose to wear my street clothes. Soon it was time to board the skydiving plane. Guess what? It was the little Cessna 182 that was now back together. In fact, much of the passenger area of the plane was now literally held together by duck tape! Great confidence-builder!

I jumped into the plane along with the pilot, cameraman, and jump instructor. After a 15-minute climb, we were ready to jump. The surrounding air temperature was a comfortable 60 degrees. The time had come. With a few butterflies in my stomach, I bravely stuck my feet out the door and onto a small metal step. A quick count of, “1-2-3,” and the jumpmaster and I were in a freefall 12,000 feet from the earth below.

We fell forward, positioned ourselves with bellies toward the ground, and were soon traveling downward at 120 MPH. Supposedly the freefall lasts about 50 seconds, but it goes by in the blink of an eye. Finally, the chute opened and I was given the steering controls to the Lamborghini-style parachute. I steered for a few hard turns left, right, and then made a pretty tight corkscrew. As the ride neared the end the jumpmaster took the controls for the landing.

Landings can be dangerous if you don’t slide correctly. You could easily break a leg or ankle. It is tricky to coordinate if you’re coming down at a high rate of speed and you need to quickly lift your legs up, then set your feet down to slide to a stop. Our approach to the ground was fast, and luckily, our landing smooth.

My first skydiving ride took only about five minutes but is an experience I’ll always remember!

So what did I think of my experience? Well, it was not what I expected. I had been looking for an adrenaline rush and instead had a very peaceful experience. An experience I enjoyed immensely and will do again and again.