Short Sales Can They Still Be Done Successfully?

I'm asked on a regular basis, Jim, can the average investor still do Short Sales, or has that market opportunity played out? The answer is No! Let me qualify my statement. You can be successful with short sales as long as you know what you're doing... That being said, there are numerous gurus out there claiming that you can get these deals done in 30 days or less - that just isn't true!! Actually the truth is, that it may take at the very least 90 days!

So, that's why I tell my students that it is imperative that they have multiple deals in the pipe, so when one closes the next one replaces it on the profit train. Remember, not all deals close, so if you are doing these deals one at a time, you better think about getting a job at the "Golden Arches" AKA McDonalds.

For more information on how I do successful short sales click here.

Real Estate Investing Wishes

On behalf of myself and everyone here at Gage Consulting Group we wish to wish you and yours a Merry Christmas and a Happy Hanukkah.

As we rest and spend time with our loved ones and families, let's get ready to make 2010 the best year yet!

Peace be with You.

Jim Gage

Creative Real Estate Investing Resources

Hello All:

I know everyone, including me, is doing their last minute Christmas shopping and that's all that is in our cross hair's - but....
I would ask everyone to take a few minutes and ask yourself what 2010 will look like for you in relation to real estate investing. Will 2010 be the same as 2009 for you? Are you burned out on real estate investing clubs, real estate tele-seminars and real estate boot camps?

If you are, then you will want to sign up for my Free Newsletter, which will also get you immediate access to all my e-mails that I send my fellow investors; information that shows you step by step how I invest in real estate with 100% leveraged techniques! If your interested in making a change in 2010 click here to receive your cutting edge creative real estate information.

Until next time.

James Gage

Experts Conclude Further Deterioration of Mortgage Securities in 2010

Despite signs that the U.S. economy is now on a slow path to recovery, collateral performance will continue to be weak for all U.S. structured finance sectors next year, Fitch Ratings said in its 2010 outlook report. The firm expects downgrades to continue for residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized debt obligations (CDOs), though at a slower pace than during the debilitating days of the recession.

For more breaking real estate news click here to sign up for our Free Newsletter.

Until next time be well.

James Gage

The Three Cardinal Rules of Negotiating Real Estate Transactions

You can find hundreds of books on the art of real estate negotiation . . . but pardon my frankness, many of these books offer stale strategies and tactics that just do not work.

For example, in many books you can find the ABC rule – “always be closing.” That is, you want to have a bunch of deals in the works and you want to get to “yes” as quickly as possible in order to close that deal.
However, getting to “yes” ASAP means you leave out a bunch of steps in the middle, such as carefully pre-qualifying your prospect by asking lots of questions. (I call this process “Getting to ‘no’ first – meaning, you weed out those who aren’t serious about a deal).  

It’s also why I’ve simplified negotiation down to three cardinal rules: the person who mentions price first loses, get to know your opponent before meeting with him or her, and always get your agreement in writing.

Negotiation Cardinal Rule #1: The person who mentions price first loses
When I first started doing lease options, I had a woman call me to see if I had a specific type of property that she could then lease to own.  She had $8K put aside but unfortunately at the time, I didn’t have anything in inventory that met her requirements. A few weeks later I found a property and called her about it and said that if she liked what she saw after doing a drive by, we could do business that very day.
She ended up loving the property. We did the walk through and as she and I talked, I knew that $8K was sure money in my pocket.
“Jim,” she said. “I have a problem. Remember how I said I had $8K? The problem is I don’t have $8K.”
My heart fell clear to my stomach and my knees went soft. “Uh oh,” I thought.
She then went on to say, “I don’t have $8K, I have $10K. Is that ok?”
Now, I if had opened my big mouth and had said at the beginning of our negotiation talk, “I’ll need a check for $8K,” I would have never learned she had an additional $2K in her pocket. The moral being – never be the first person to talk about price.
Instead, ask lots of open-ended questions that will give you solid information in order to determine where people stand. For example, when I’m talking to a person who is looking for a house or a lease option, I ask questions such as, “It sounds like you’re living in a great place. Why do you want to move?” (What I’m really asking is, “Are you a deadbeat?”)
Or, if I’m sitting at someone’s kitchen table and he’s spilling his guts to me about his house going into foreclosure, I ask, “If you’re able to sell the property, what you would you be comfortable asking for it?” Having the property owner tell me first what he wants for the property is akin to him showing me his cards before he makes a bet. In other words, it gives me the advantage.

To finish the rest of the article click here

Real Estate News: Will FHA Loans Become More Expensive For Home Buyers?

The problem is simple; with foreclosure rates skyrocketing, the FHA has had to pay out more and more insurance claims to the mortgage companies. Part of every FHA loan is the mortgage insurance premium (both upfront and monthly). The upfront mortgage insurance premium is paid (who would have guessed?) upfront at closing. However, it is possible to roll that premium into your financing (so many people don't actually bring that cash to the closing table).

The monthly mortgage insurance premium is a monthly fee tacked onto your your mortgage payment. Like other insurances, you're paying today, in case something goes wrong tomorrow. In the event a home buyer defaults on their loan and the house is foreclosed on, the lender gets paid out of the FHA funds that are built up through the collected of these mortgage insurance premiums.

So somebodies got to pay; guess who....