• Search for:
• Real Estate Headlines
  • Failed Short Sales Exacerbate Foreclosure Losses For All [Housing ... - Seeking Alpha
  • Central banks fire new rounds to break bank lending logjam - AFP
  • The sky isn't falling, so it's no time for Ottawa to overreact - Globe and Mail
  • From subprime to stock swoon - Globe and Mail
  • Victorville California: A desert boom town goes bust - guardian.co.uk
  • Michigan to combat claims of possible suppression of voters - Detroit Free Press
  • Financial Meltdown 101 - AlterNet
  • Looking for the right time to buy a house - Shreveport Times
  • What it means: Words that define the downturn - Houston Chronicle
  • Corzine: Jersey may buy homes to stop foreclosure - The Star-Ledger - NJ.com
• Recent Posts
  • Stock Market Pummels - Safe Money In Long Term House Rentals
  • It’s Up To Real Estate Investors To Move Where The Money Is Flowing!
  • Bailout - If Only This Could Happen Instead!
  • How Banks Make Money & Why Real Estate Will Come Back Quickly
  • No Arms, No Legs, No Worries - Nick Vujicic!

The stock markets are taking a beating. Media is hyping a recession. The place for safe money is in long term rentals that CASH FLOW. If you have not been shopping the markets start looking because the current prices are unbelievable in many parts of the country. A real estate investor just bought a 1400 SF 4/2 in the Phoenix area for 65K as an REO and that same house was over 250K three years ago! It will cash flow even with bad financing!

Now is the time to be on the hunt. You don’t need your own cash either. For more info join my newsletter at http://www.kickassrealestate.com.

Author Gerald Romine

As the saying goes, I will eat steak tomorrow night as I choose regardless of what you do or don’t do; regardless of whether you eat steak or beans.

The same is true for the economy, the financial crisis, and the so called recession. Some people will be eating steak and others will be eating beans. Is this a harsh wake up call for you?

KNOW AND UNDERSTAND THIS

The same ocean of money is in constant motion; it just flows in different directions from time to time. It’s up to you to move where it is flowing!

Have the economic times changed? Absolutely. Is it harder to near impossible to get loans? Yes. This is the constant motion I’m talking about and if you’re old business model required loans then it is time to change models. It is up to you to move to where the money is flowing.

Right now short sales and REO’s are hot and if you are playing in this arena you need to have money to close or real estate investors to flip to and here’s a big surprise: People are still flipping houses and doing very well. Need proof… check out an auction or two and you’ll see folks paying a lot more than you would which means they are a source of potential buyers.

OPPORTUNISM

You, yes you, need to capitalize on the opportunity delivered by the so called financial crisis. Know that all UBER SUCCESSFUL Entrepreneurs and Real Estate Investors are opportunists. There is no difference between “good” or “bad” events in the value offered to opportunists because opportunists take action on the events given without prejudice.

If you are a real estate investor just starting out or even a seasoned pro be sure to get my FREE Online Real Estate Investing Course. There’s no strings attached so you don’t have any excuses.

Author: Gerald Romine

I’m against the $85,000,000,000.00 bailout of AIG.  In fact I am against ANY bailout at all but will admit that if you can’t beat them join ‘em and I will as a real estate investor find ways to profit from what I’m calling the “GREAT Socialistic Bailout.”

So to bring a point home let me share an alternative bailout program that makes more sense.

---

Original Author Unknown:

Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+  into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.  So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.  That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.  A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

• Pay off your mortgage - housing crisis solved.
• Repay college loans - what a great boost to new grads
• Put away money for college - it’ll be there
• Save in a bank - create money to loan to entrepreneurs.
• Buy a new car - create jobs
• Invest in the market - capital drives growth
• Pay for your parent’s medical insurance - health care improves
• Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+  including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG - liquidate it.  Sell off its parts.  Let American General go back to being American General.  Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can “never work.”

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .

And remember, The “We Deserve It Dividend” plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

---

Now Go Buy A House,

Gerald Romine

Note: I did not write the above article and the math error has been left intact.

Last week the Bush Administration proposed a $700 billion to $1 trillion rescue plan for the financial and real estate industry.  The heart of the plan is to purchase bad debt/loans from the lenders thereby relieving their bad loans so they can concentrate on making good loans (talk about a bailout funded by the taxpayer). Personally it is appalling that the government is going to spend 1 trillion dollars of tax money to bail out the banks.  This is the equivalent of you or I running up $250,000 of credit card and short term debt and the government wiping the debt clean.   Sure… it is great for the bank but don’t forget the bill is being footed by you and I the taxpayer. Plus, pumping huge amounts of dollars into the economy is a devaluation of our currency giving us less buying power. I’ve been a broken record that there has never been a housing crisis… just a money shortage that has been manufactured. Setting aside my personal opinion if we look at this from a purely selfish business standpoint as a real estate investor it can be a very good thing. The Banks Make Money Making Loans. If you don’t understand Fractional Reserve Banking you are handicapped in understanding the big picture - there is a good definition at http://en.wikipedia.org/wiki/Fractional-reserve_banking. To summarize fractional reserve banking means the bank’s loan money without having any of their own money collateralizing the loans then the banks collect interest and fees money created out of thin air.  If you deposit $10,000 the bank is able to make a loan of $80,000 and the bank collect points, interest and fees on money that did not cost them anything.  Their investment is ZERO in the loan.  I know this might sound crazy… but look it up and research the subject. The important thing to remember is banks are in the business of making loans.  With the tightening of money lending the strong banks are not only surviving but they are now getting government bailouts and when they start lending again in mass the surviving banks will have increased profits because of decreased competition. The one trillion dollar bailout for the economy signals a green light for the banks to start lending.  The government is not only taking the banks bad debt off the books but the government has taken over Fannie Mae and Freddie Mac which currently buys approximately 90% of the loans on the open market.  The translation is we have a taxpayer bailout AND the taxpayer through Fannie Mae and Freddie Mac will be buying the majority of the new loans! What To Do Right Now? Realize that a speeding locomotive does not stop on a dime.  Foreclosures will continue to rise and be offset by buyers coming back into the markets.  With time the course of direction will be turned as buyers rush to the market and properties will regain their values quickly. As a real estate investor stay close to the action.  Be on the lookout for real estate deals that can be bought for a fraction of their value, bought ’subject to’ and kept as profitable rentals, or for your own personal residence that can be bought at prices not seen in over a decade.  If you need to analyze deals or create any of the necessary paperwork check out The Ultimate Real Estate Investing System. Author: Gerald Romine

Today I received an email from Ralph Coslet who shared an inspirational story with me about Nick Vujicic - a giant of a man born without limbs. Ralph knows I love inspirational stories and this one is truly amazing.

Ralph thought of me because Nick Vujicic said the following:

“I want to become financially independent by the age of 25, through real estate investments, to modify a car for me to drive and to be interviewed and share my story on the ‘Oprah Winfrey Show’! Writing several best-selling books has been one of my dreams and I hope to finish writing my first by the end of the year. It will be called ‘No Arms, No Legs, No Worries!’”

Here’s a video about Nick you might enjoy:

After watching the video I called Nick’s office to volunteer my real estate investing software and counseling to Nick Vujicic if he is sincerely interested in real estate investing. He’s was out at a speaking engagement so I was only able to leave a message with his executive assistant and we’ll have to see what happens.

No matter what, Nick Vujicic is an inspiration and I hope you enjoy his story as much as I did.

If you think you have obstacles in your life this really puts things in perspective.

Author: Gerald Romine

Last night I played coed softball and we were beaten badly.  The coed league is a lower level league and the emphasis is on fun and having a good time which certainly was true for me.I’m naturally competitive and when I take an objective look at the team the reason we lost is clear.  Almost every player on the team is out of shape and not prepared to play.  I mean no disrespect to the other players but looking at their physical condition the problem is evident. They are out of shape and their performance is a direct reflection.  At 38 I’m one of the older players and in the best condition of anyone on our team.  Because I am physically prepared to play I’m able to excel.

Some people might see that as a harsh or egotistical statement but it is simply a statement of fact.  Those who are prepared thoroughly do better than those who are not.

The same holds true for real estate investing.  Those that are prepared with knowledge and systems will excel as a real estate investor while others fail. The question becomes how prepared are you for investing in real estate?

If you are unprepared and buy houses without having an understanding of the market, conditions, and sound investing principles it only makes sense that your success is based more on chance than making a sound investing decision. You’re failure is expected!

This is critically important in today’s real estate investing world.  If you look at the investors that are making money you will see that they have a system in place and are doing the same successful things over and over.

Why.

Because in real estate investing the math is critical. If you are buying a rental property what is your return on investment? If you are flipping properties what are your buy and sell ratios? In other words what are wholesale buyers paying for a property and if something goes wrong are you certain you can move the property for less and still make a profit?

My ULTIMATE Real Estate Investing System will go a long way in helping you become a great investor that makes sound financial investments. It will analyze your deals, prepare all of the paperwork, and open you up to a world where real estate investing is easy and systematic.

If you are serious about investing be sure you have and use this system.
www.kickassrealestatesoftware.com

Author: Gerald Romine

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.

Author: Gerald Romine

The Real Estate Pain Campaign For Sellers

Pain and problems dominate the lives of people every day and as a result we are constantly looking for solutions to our pain and problems.

In real estate marketing we would be wise to use a formula to attract buyers and sellers. The PAS formula is a great model.

What is the Problem - Agitate - Solve Formula?

I first learned of this formula years ago from a copywriting guru and it has served me well over the years.

Identify a problem. Agitate the problem. Solve the problem.

The fact is people respond better to pain which is why so much marketing revolves around solving painful problems. Next time you are watching TV watch the ads closely and you’ll see they follow the PAS formula to the ‘T’ and focus on the problem, agitate the problem, then solve the problem which is to buy their product.  (a good example are the ProActive commercials dealing with the problem of how people feel ugly, feel embarrassed, but then by using ProActive they become beautiful and sexy).

In your real estate marketing be sure to fully capitalize on the PAS formula. Show the problem. Agitate the problem. Solve the problem.

For those of you using the ULTIMATE Real Estate Marketing System I’ve just added ‘The Pain Campaign’ and you can request it at no charge through the support desk.

This email campaign includes three letters that go out 6 days apart and not only follows the PAS formula but includes emails that capitalize on headlines with pictures that grab the seller’s attention.

The first email “Is Trying To Sell Your House Giving You A Headache?” has a picture of Bayer Aspirin and is built around the pain and headache of selling your house.

The second email is “Are You Getting Indigestion Trying To Figure Out How To Sell Your House?” has a picture of Pepcid Antacid and is build around how upsetting it is to try and sell a house in today’s market.

The third email is “Who else is sick and tired of hearing their friends complain about not being able to sell their house?” and has a picture earplugs and is built around hearing from friends and the media about the dismal real estate markets.

Now you can see why we call it the “Pain Campaign”! This email can also be converted to a letter campaign and top marketers will replace the pictures with inexpensive product samples making it a bulky/grabber campaign.  Both work exceptionally well.

Author: Gerald Romine

Questions keep coming at me about the the power meeting we just had with guys like Frank McKinney, Carl Banks, Aymen Boughanmi, Yanik Silver, Mike Filsaime, Carrie Wilkerson, Terry Wygal, Rich Desich, and the rest of the Mavericks. Some names you may recognize and others have build massive businesses very discretely.

This select group comes together to share business ideas in an intimate setting. It’s just hard to build a better business and friendship relationships than experiencing fun and extreme events together.  How can you compare a boardroom to riding a bus for 3 hours and talking business then mountain biking together.  The conversations, business ideas, and friendships are formed quickly in an environment that is hard to replicate anywhere else.

I roomed with Doug Doubler and he’s famous for selling over 200 million dollars worth of condo’s using just 20K in google ads.  Crazy!  The insights he has on the business and what he shared were amazing.

Check out the video and you’ll get a taste of the most powerful business meeting I’ve ever attended.

Side Note: The music is from the movie “Deliverance” and for those on the trip it has a special meaning.  (Yanick, you’re twisted… but we’re all laughing now.)

Author: Gerald Romine

It is Monday and I’m back from a wild business adventure in Aspen Colorado!

Imagine hanging out with some of the best businessman in the world to talk business then taking off for some White Water Rafting, Rock Climbing, Rappelling, Extreme 4 Wheeling and some pretty wild mountain biking. My body is beat up. (Later I‘ll tell you about the wasp attack I experienced when I stuck my hand in their nest while rock climbing)

Talking Real Estate With Frank McKinney (Gerald Romine - Black Hat)

Later this week I‘ll post some pics from the trip including my “Double Heisman” with a two time Superbowl winner!

I’m part of several mastermind groups that come together with one purpose in mind. Business! And while we may partake in some fun activities we take our meetings and education very seriously! Not only do we share ideas amongst ourselves, we bring in some of the finest businessmen in the world to help us with their experience and knowledge. All done in a small and intimate setting.

Frank McKinney – The Maverick Daredevil Artist

Graduating high school with a 1.8 GPA and digging sand traps by hand Frank is not the guy you would have picked as most likely to succeed.  After teaching tennis in Florida(Frank and I have teaching tennis in common) Frank realized the money was in real estate and became a RE investor back in 1986 and made $7,000 of his first fixer.

After playing in the fixer business for years he moved into the spec house business and has gone on to sell a 50 million dollar spec houses and currently has a 130 million dollar spec house for sale.  Talk about brass balls… they guy‘s got them because when you build a 130 million dollar spec house that means you don‘t have ANY buyer in mind.

The best part about our mastermind groups is the intimacy that can be found with 30 people. An informal setting. The ability to speak one on one with everybody. And sharing dinner, drinks, and conversations with like minded individuals and superstars like Frank McKinney.

The Key Points I Took From Frank McKinney:

1. Read the book: Blink: The Power of Thinking Without Thinking by Malcolm Gladwell
2. Frank controls the marketing of his properties.  He does not and will not delegate the marketing of his houses to anybody else. While his time is valuable on of the most important things he does is write the copy to sell his houses!
3. Be A Market Maker.  If Frank would not of believed in himself and believe what others said he would have never made it.
4. Don’t Live Between The Railroad Tracks.  You have to get out of your comfort zone. Things happen when you make them happen.
5. Be Overhead Adverse.  Funny coming from a guy that builds a 135 million dollar house be Frank is absolutely overhead adverse and constantly monitors expenses to make sure things stay in check.

My head is still buzzing from the last week! Luckily I survived the wasp attack and I’ll be sure to fill you in on what’s happening in the real estate investing world and why Frank McKinney and I are excited about the market and what’s coming.

Author: Gerald Romine

PS – Frank and I agree that the news media is full of BS and does not accurately reflect the market and what is really happening.  Frank hasn’t slowed down and you shouldn’t either!

I like to talk straight with people and it seems that every guru is talking about this being a great time to buy properties. That’s true. But most of the so called guru’s are offering the same old tired crap that worked great in 2005 but ain’t working now.

Remember when you could buy any house and turn it for a profit? Remember when people were buying spec houses and the values were going up 50-100% in the time it took to complete construction? Those days are gone. What’s more is those days were filled with a lot of risk because if you bought at the wrong time you were left holding the bag. Many were, and many still are nursing their wounds.

Today it is a foreign market to most people. BUT, for those of us that have been in the game for a long time it is simply a return to a market where you buy based on real investing fundamentals with one major difference. Money is a lot harder to come by for investors, for homeowners refinancing, and for new home buyers.

There are three main ways to make money in today’s real estate market.

One. Flip Houses. Contrary to popular belief flipping houses is alive and well. Focus on DEEP discounts and moving houses fast to investors that can close quickly. There are fewer REAL buyers so you need to have a strong deal to move properties quickly.

Two. Buy and Hold. Yea, that’s right being a landlord is and has always been profitable. Sexy it’s not but profitable it is. IF you live in an area where you can cash flow properties after all expenses are taken into account(management, maintenance, taxes, insurance, repair allowance, debt service, etc) owning properties is very lucrative.

Rehab and Retail. Right now I have buddies making a killing with rehab properties in the current market while everybody else is whining and crying. How do they do it? They have a simple model to buy blue collar houses that are at the bottom of the median price range where the labor class of America lives. They only buy houses at a deep discount, spend approx 10K with a “blow and go” rehab, then retail the property as the best house in the area for less than what other houses are for sale. In short they are selling the best house in the neighborhood for a steal of price and can do so because they bought right.

THE KEY TO SUCCESS

The secret to being successful in today’s market is sorting through all the junk properties (or bad financing on good properties or over financed

properties) for sale and focusing on properties that can be bought that meet your criteria. Put another way the key is target marketing so attract properties that can be bought at the right price or terms.

Unfortunately most people rely on themselves to find deals and that simply does not work. You’ve got to have a SYSTEM in place where you can throw a bunch of leads into the system and wait for the good deals to call you up already pre-qualified.

I know you’re skeptical that such a system exists. I don’t blame you.You can’t just go believing everything that anybody says… especially on the internet.

I know that people like you want PROOF that the ULTIMATE Real Estate Marketing System is a top product.

That’s why I posted real videos and screenshots of the system in action on this page…

www.kickassrealestatemarketing.com

There are over 17 videos, pictures, and even an email from the system to show you how it works. Check them out and you’ll see that the ULTIMATE Real Estate Marketing System is everything I say it is!

Author: Gerald Romine