• 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

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

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

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