Real Estate Investing Trends & Cycles

Published by James Gage, www.jgage.com

Considering real estate investing? Or looking for the next big idea in real estate? People nationwide are continuously searching for new ways to sink their teeth into the lucrative market that is real estate investing. Before you choose your next big move in real estate be sure to analyze current market trends and choose a strategy accordingly.

There are several avenues to take within the rather large realm of real estate investing. Whether you execute more traditional types of real estate investing such as buying low and flipping or accumulating rental properties, there are several profitable routes to take. Consider using a combination of strategies in order to diversify your real estate portfolio and ultimately maximize profits.

One significant trend forecasted for the coming years is the rise of foreclosure investing. Due impart to exotic loans and the rise of interest rates, the amount of foreclosures nationwide is predicted to sky rocket in the coming year.

Perhaps you’re more interested in a preemptive move? Along the same vein as foreclosure investing is the trend of pre-foreclosure investing. Some of the same sites that offer foreclosure lists also offer pre-foreclosure listings. You can even get helpful tips on approaching owners who are in a financial bind. With pre-foreclosure investing you can avoid the auctions and wield more control over your transaction.

With all the resources available online, foreclosure and pre-foreclosure investing is much easier than once considered. Some websites such as foreclosure.com contain listings for foreclosures and pre-foreclosures. They are the only site I know of that lists the two types of distressed properties separately facilitating much easier research. Foreclosure.com also has helpful tools and resources making them a one-stop real estate investment shop.

Along with foreclosure and pre-foreclosure investing seems to be the trend of holding the property as opposed to flipping and selling it right off the bat. Because the market has seen a rather abrupt slowdown the profit is no longer in the flip. Consider other options such as residual income from a rental property. Or it may be wise to invest more time and money to improve the property seeing as though there is no longer a need for conveyor belt housing.

Gearing up for a year of heavy Foreclosures

Published by www.jgage.com

I heard some pretty daunting figures on the radio this morning regarding the predicted foreclosure rates.

The main issue here was the effects of subprime lending in what you could call some rather hasty lending practices. With the housing market bursting with opportunity it seems lenders were rushing to offer home loans to whomever qualified, which apparently was just about anybody.

According to the report on N.P.R. 1 in 5 subprime loan borrowers will end up in foreclosure in the coming year. The Center for Responsible Lending estimates that those number account for roughly 2.2 million homeowners falling victim to risky subprime lending across the nation.

It’ not just subprime borrowers either; the recipients of adjustable rate mortgage loans are also finding themselves in quite the bind. In many cases borrowers received high-risk adjustable rate loans packaged in an attractive low start rate. Many were approved without consideration of whether or not they could afford these loans after they would inevitably “reset” for the worst.

Forecasters estimate that over $1 trillion in ARMs will “reset” with increased rates this New Year, making 2007 quite the playing field for real estate investors nationwide.

The reason behind many of these adjustable rate mortgages heading into foreclosure is due impart to the difficulty of refinancing into a traditional 30-year fixed mortgage. Unfortunately, the homeowner’s payments would still be higher than their initial low monthly payments.

Additionally, many homeowners will not qualify for such refinancing due to the current housing market slump. In some markets home values are now less than what the homeowner paid when they bought the home during the real estate rush. Those who received 100% financing will especially be feeling the pressure this coming year.

On the upside the market is blossoming with opportunity in another realm. Investing in foreclosures will certainly be on any real estate investor’s to-do list for 2007. The rise in foreclosures will also provide affordable housing alternatives for those homebuyer's left in the dust from the last real estate boom. So what does this spell for the real estate investor? Opportunities beyond you wildest imagination, if you utilizing short sale investing techniques in foreclosure situations.

Schumer looks to prevent foreclosures in New York

Published by JGage.com April 20, 2007

With more than 91,000 New Yorkers in danger of losing their homes to foreclosure by the end of 2008, Sen. Charles Schumer (D-N.Y.) is looking to put an end to the subprime loans that are causing the problems, according to a recent article on NYDailyNews.com.

In fact, an analysis by his office revealed that an estimated 1.8 million American families, including nearly 23,000 in New York City and 19,000 in Nassau and Suffolk counties could face foreclosure within the next two years when their subprime loan rates increase.

Here’s a snip from Mr. Schumer :

“For thousands, the American dream of homeownership has turned into an un-American nightmare. Thousands of middle-income and lower-income New Yorkers were tricked into borrowing these loans, and they are loans designed to fail. The first step is making sure that borrowers are protected from these usurious lenders. It’s long past time that we ensure that American families are protected from loans that promise them the world and then bury them in debt.”

To address the problem, Schumer recommends a response on the federal level that includes:

• establishing a national regulatory system to target “rogue” mortgage lenders and brokers;
• eliminating “liar loans” by creating a suitability standard for borrowers;
• prohibiting prepayment penalties, stated-income loans and “pick a payment” gimmicks that coerce borrowers into signing higher loans than they cannot afford; and
• creating a state foreclosure prevention task force.

It’s important to note that bad loans are not the only factors that contribute to foreclosure increases. Illness, divorce, job loss and other personal issues often affect distressed homeowners and cause them to fall behind on mortgage payments.

Furthermore, not all subprime loans result in foreclosure. Many educated investors are doing short sales and making big profits, if they know what their doing: to find out how you can cash in on this cycle please visit: www.jgage.com/shortsales.htm

It’ll be interesting to see how the interests of homebuyers and lenders are both represented if and when tighter restrictions are implemented.

Stay tuned.

James Gage

Re-Play of Last Nights Tele-Seminar

Hello Fellow Investors:

Just a quick note to let you know that last nights call was filled to capacity; many of you have e-mailed me and said you were unable to get on the call. We had 1500 bridge lines which filled up very quickly due to the subject matter of lease options and short sales.

That being said, I have sent up an auto re-play for those of you that were not able to access the call last night. This line will be functional only for a few days, after that it will be available via CD on my web site. Here is the information on the re-play : 602-294-1265, you will be automatically connected to the seminar.

Be well,

James Gage

Free Tele- Seminar Tonight !

Hello All:
I wanted to take this opportunity to invite you to my free tele-seminar I'm doing for Foreclosures Mass tonight on the subject of " How to Use Lease Options & Short Sales in a Down Real Estate Market". Again, this is a totally free event jam packed with information- no fluff here.

The seminar will begin @ 8:00PM EST, call in number is 507-726-3200, pin number 11449#; at the time of this posting we had over 1400 people signed up nationwide - please phone in 5-10 mins prior to reserve your line.

Hope to hear from you tonight.

Be well,

James A. Gage

Hello & Welcome

Welcome to all my fellow real estate investors and soon to be investors; thank you for taking time out of your busy day to spend some time on my blog.
I started this blog to give you a no non-sense opinion and educational resource that can be used by the new or seasoned investor. Please take advantage of my 20 + years of real estate investing and One-on-One real estate mentoring experience by visiting this blog often.

I want too hear from you! Please e-mail me with the topics you are most interested in and I will do my best to give you the most up to date information on the topic.

Thanks again for stopping by my blog.

To your success,

James Gage