Hello Again:
In my last post I informed you about down payment changes that are coming to the FHA program. I have now received the full changes, and when you thought it couldn't get any worse - think again: Here are the additional changes...
--> Raise the upfront premium from 1.75% to as much as 3%
--> Eliminate the ability to roll in to loans that don't charge up front premium
--> Increase monthly MIP from .55%
--> Reduce seller concessions from 6% to 3%
--> Raise minimum FICO score
--> Possible LTV maximums by FICO score
--> Increase accountability of FHA Lenders for fraud ( this is good!)
James Gage
Showing posts with label Probate investing. Show all posts
Showing posts with label Probate investing. Show all posts
Saturday, January 30, 2010
Friday, January 8, 2010
Real Estate Investing: Why People Are Not Successful
Hello Everyone:
Here we are beginning another year of real estate, so this month's real estate article will be devoted to starting off on the right foot. We will examine exactly what causes people not to be successful in real estate investing - enjoy and be well.
Why People Are Not Successful In Real Estate
By James A. Gage
Have you ever wondered why most people are not successful in Real Estate or achieve very limited results? All Real Estate techniques and strategies have a learning curve, even Lease Purchasing, AKA Rent to Own which I believe is the only way to control Real Estate. That being said, after you have grasped the strategy or the technique you want to implement - what now! The easy part was learning about the strategy, now comes the hard part which is Negotiating the deal. You can go to all the seminars, buy all the books and tapes on Real Estate investing and still fall flat on your face or come out on the short end of the stick - costing you time and money.
OK, OK if rah rah seminars, boot camps and positive thinking don’t work, what does? What's the SOLUTION?
To read the rest of this article click here
Here we are beginning another year of real estate, so this month's real estate article will be devoted to starting off on the right foot. We will examine exactly what causes people not to be successful in real estate investing - enjoy and be well.
Why People Are Not Successful In Real Estate
By James A. Gage
Have you ever wondered why most people are not successful in Real Estate or achieve very limited results? All Real Estate techniques and strategies have a learning curve, even Lease Purchasing, AKA Rent to Own which I believe is the only way to control Real Estate. That being said, after you have grasped the strategy or the technique you want to implement - what now! The easy part was learning about the strategy, now comes the hard part which is Negotiating the deal. You can go to all the seminars, buy all the books and tapes on Real Estate investing and still fall flat on your face or come out on the short end of the stick - costing you time and money.
OK, OK if rah rah seminars, boot camps and positive thinking don’t work, what does? What's the SOLUTION?
To read the rest of this article click here
Friday, January 1, 2010
Real Estate 2010
Hello All:
Well, here we are 2010! The past year was a great and profitable year for those of us who have taken our real estate investing and negotiating skills to the next level. In the coming year I will share with you, my faithful subscribers, some new strategies and tactics I'm currently using to bring in consistent cash flow in a down economy.
That being said, on behalf of myself and everyone here at Gage Consulting Group may the New Year bring you and yours many blessings and success in all your endeavors.
Happy New Year.
James A. Gage
Well, here we are 2010! The past year was a great and profitable year for those of us who have taken our real estate investing and negotiating skills to the next level. In the coming year I will share with you, my faithful subscribers, some new strategies and tactics I'm currently using to bring in consistent cash flow in a down economy.
That being said, on behalf of myself and everyone here at Gage Consulting Group may the New Year bring you and yours many blessings and success in all your endeavors.
Happy New Year.
James A. Gage
Thursday, December 24, 2009
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
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
Monday, December 21, 2009
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
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
Tuesday, October 20, 2009
Why clients don’t say YES. Real Estate Investing Tip
There are only 2 reasons, other than money, why clients don’t say YES.
#1 They don’t understand the information presented.
#2 They don’t see how it benefits them.
And the only way you’re going to know is by asking questions. Becoming a powerful communicator is the number one skill you need to be successful. The best part is that this is an easy and painless way to catapult your business to the top.
You can learn how to communicate effectively with anyone, really.
To be incredibly successful, you need to realize the person who makes the most money is the best communicator. Learn the principles of communication and practice them. Perfect the principles before you worry about learning specialized techniques for your particular business.
The communication skills you need to be successful in earning money are the same skills you need to be successful in any area of your life. I can tell you for a fact that the people you’re going to be talking to don’t care if you know every little thing about your topic, they care that you care about them.
If you show that you care about who they are, and what they need, and what they want, they will be incredibly forgiving of your level of knowledge of the product, or technique or whatever you’re discussing. Right from the beginning, even if you don’t have everything all figured out, you can be very successful just by caring about the people that you’re talking to.
#1 They don’t understand the information presented.
#2 They don’t see how it benefits them.
And the only way you’re going to know is by asking questions. Becoming a powerful communicator is the number one skill you need to be successful. The best part is that this is an easy and painless way to catapult your business to the top.
You can learn how to communicate effectively with anyone, really.
To be incredibly successful, you need to realize the person who makes the most money is the best communicator. Learn the principles of communication and practice them. Perfect the principles before you worry about learning specialized techniques for your particular business.
The communication skills you need to be successful in earning money are the same skills you need to be successful in any area of your life. I can tell you for a fact that the people you’re going to be talking to don’t care if you know every little thing about your topic, they care that you care about them.
If you show that you care about who they are, and what they need, and what they want, they will be incredibly forgiving of your level of knowledge of the product, or technique or whatever you’re discussing. Right from the beginning, even if you don’t have everything all figured out, you can be very successful just by caring about the people that you’re talking to.
Monday, July 6, 2009
Real Estate Tip of The Month
Hello All:
Now is the time to get your properties sold! Why the hurry? The $8,000 home-buying incentive from the U.S. Government ends in December 2009, and if you are in a state that takes longer then 30 days to close - time to get those prospects!
Be well,
James Gage
Now is the time to get your properties sold! Why the hurry? The $8,000 home-buying incentive from the U.S. Government ends in December 2009, and if you are in a state that takes longer then 30 days to close - time to get those prospects!
Be well,
James Gage
Sunday, June 21, 2009
Real Estate Investing: Happy Father's Day
To all of you that are Fathers out there - Happy Father's Day!
I wish you a great day with your family.
Be well.
James Gage
I wish you a great day with your family.
Be well.
James Gage
Friday, May 8, 2009
Real Estate Investing Tip: RE Radio
Don't forget to tune in tomorrow morning to XM Satellite Radio, Channel 169 @ 9:45 AM, EST "Mind Yo Business Radio Program w/ Brian Higgins" I will be his guest, and we will be discussing what's happening with real estate investing across the country...
Sunday, May 3, 2009
Real Estate Investing: New Appraisal Regulations
New Appraisal Regulations Under Fire as of May 1, the responsibility for managing home appraisals will move to a middleman, known as appraisal management companies or AMCs.
Under new federal regulations, mortgage brokers and loan officers can’t directly order appraisals. Instead, they are expected to go through third-party AMCs, which are supposed to prevent them from pressuring appraisers.
The new rules have transferred the improper influence problem to these appraisal management companies, which are not regulated by anybody!
The marketplace is still vulnerable to appraiser pressure because the incentives are still there to get deals done and collect the fees.
Federal housing officials, who helped write the new laws, say they will hold AMCs accountable. Yea right, just like AIG, Citi, and all the others....
Under new federal regulations, mortgage brokers and loan officers can’t directly order appraisals. Instead, they are expected to go through third-party AMCs, which are supposed to prevent them from pressuring appraisers.
The new rules have transferred the improper influence problem to these appraisal management companies, which are not regulated by anybody!
The marketplace is still vulnerable to appraiser pressure because the incentives are still there to get deals done and collect the fees.
Federal housing officials, who helped write the new laws, say they will hold AMCs accountable. Yea right, just like AIG, Citi, and all the others....
Monday, April 13, 2009
Real Estate Investing: Tip of The Month
Hello Everyone:
Have you ever had a great real estate deal, but was unable to go through with it because it was in a flood zone & you couldn't get flood insurance? Or, you could get it through your agent, but you would have to sell one of your children?
Well, that is a thing of the past! The government has set up a program through FEMA to assist home owners and renters obtain flood insurance starting at $119.00 per year - please visit : http://www.floodsmart.gov/floodsmart for more information.
Be well,
James Gage
Have you ever had a great real estate deal, but was unable to go through with it because it was in a flood zone & you couldn't get flood insurance? Or, you could get it through your agent, but you would have to sell one of your children?
Well, that is a thing of the past! The government has set up a program through FEMA to assist home owners and renters obtain flood insurance starting at $119.00 per year - please visit : http://www.floodsmart.gov/floodsmart for more information.
Be well,
James Gage
Wednesday, April 8, 2009
Real Estate Investing : Article of The Month, Real Estate Success Strategies
The PMA “Secret”: It’s All in Your Execution
By James A. Gage
Do you find yourself struggling with keeping a positive mental attitude (PMA)? Does reading or watching the news make you feel like there’s no point in trying to sell or buy real estate? Did you attend a conference recently and come home all pumped up – only to feel like a deflated balloon a week later?
Yes, the standard advice for developing PMA works – i.e. read self-help books, attend conferences, have goals, etc. But, none of these tactics will work if you fail to act.
That’s why I believe the real secret to PMA is taking action – versus simply believing the universe will send you what you want. What do I mean by this? Here are my three tips for achieving action-based PMA:
1. Look for opportunities in negative data.
It’s a fact: we’re in a recession. And yes, the real estate industry has been hit – hard. You have two options: you can get very depressed and give up or you can figure out how to survive and thrive.
We live in a time when data is easily accessible and plentiful. Instead of ignoring the news, learn how to disseminate hype from fact. This means that you take “negative” data and look for trends and opportunities within it – or as I say, “go where they ain’t fishin’.” Even though 25% of people were unemployed during the Great Depression, you could still find millionaires because these people knew where to fish.
When foreclosures began to skyrocket, I didn’t look at the numbers of foreclosures only. I also noticed a huge surge in people renting because they were losing their homes and didn’t qualify for a prime loan. I remember thinking, “Woo, wait a minute. I have to change my strategy.”
I knew I could take my properties and turn them into traditional rentals and wait out the market – or I could make this negative data work for me – which lead me to really looking at my lease-to-own strategy.
I’d always done lease-to-owns but due to the rental data, I put my lease-to-own strategy on steroids – and it’s working. My first step was to place a small ad on Craigslist. Due to this ad, I received an unbelievable 150 calls! I haven’t seen the numbers I’m now seeing – ever.
2. Look for inspiration outside of the real estate industry.
If you read history, you’ll know that downward trends, no matter how severe, always pass, so it’s important to get your head out of real estate, real estate, real estate and into other sources of inspiration – not just for positive mental attitude but for a fresh perspective.
One place I find inspiration is in my children. If I don’t stay positive and proactive, they won’t have a future.
I listen to John Maxwell, a former pastor and International motivation speaker, who is very down to earth and practical. He talks about how we’re not reinventing the wheel and how the struggles we’re going through now we’ve already done. He helps me keep things in perspective.
And, I take specific theories for living and apply them in different ways. For example, I’ve transferred the concept of homostatius ( def: physiology metabolic equilibrium actively maintained by several complex biological mechanisms that operate via the autonomic nervous system), a medical term for keeping the body in balance at all times.
PMA gurus talk about not hanging around with negative people. Applying the principal of homostatius, I’ve learned that I don’t want to hang around with those people who use extreme PMA techniques.
You can find lots of real estate gurus who have what I call “real estate diabetes.” They push the ultra positive things to the hilt and when you try to follow their advice, you end up “failing,” which brings me to my third tip:
3. Set realistic and achievable goals.
It’s very easy to go to seminars and get all pumped up with a “yes, I can!” attitude. You get a huge shot of adrenaline – then five days later you crash as you realize you’re still in the same rut.
You want to think “big” and push yourself, but you also have to set milestone goals that you can realistically achieve. If you’re currently making $100K right now, setting a goal to make $1 million in 12 months is unrealistic.
Instead, set a goal to make $1 million in five years and then set milestone goals to achieve it, and keep working until you achieve your goal (while celebrating those milestones).
There is absolutely nothing wrong with trying new strategies and failing. Where many people do go wrong is trying new things, failing – and then giving up. Successful people, on the other hand, have can-do attitudes in the face of failure, and will persevere until they achieve their goals.
Keeping a positive mental attitude does begin in your head, but it’s manifested in your actions: search for opportunities where none seem to exist, look for inspiration and advice from successful people outside of the real estate industry, and set realistic goals that you can achieve. You’ll find that it’s much easier to keep a PMA every day.
By James A. Gage
Do you find yourself struggling with keeping a positive mental attitude (PMA)? Does reading or watching the news make you feel like there’s no point in trying to sell or buy real estate? Did you attend a conference recently and come home all pumped up – only to feel like a deflated balloon a week later?
Yes, the standard advice for developing PMA works – i.e. read self-help books, attend conferences, have goals, etc. But, none of these tactics will work if you fail to act.
That’s why I believe the real secret to PMA is taking action – versus simply believing the universe will send you what you want. What do I mean by this? Here are my three tips for achieving action-based PMA:
1. Look for opportunities in negative data.
It’s a fact: we’re in a recession. And yes, the real estate industry has been hit – hard. You have two options: you can get very depressed and give up or you can figure out how to survive and thrive.
We live in a time when data is easily accessible and plentiful. Instead of ignoring the news, learn how to disseminate hype from fact. This means that you take “negative” data and look for trends and opportunities within it – or as I say, “go where they ain’t fishin’.” Even though 25% of people were unemployed during the Great Depression, you could still find millionaires because these people knew where to fish.
When foreclosures began to skyrocket, I didn’t look at the numbers of foreclosures only. I also noticed a huge surge in people renting because they were losing their homes and didn’t qualify for a prime loan. I remember thinking, “Woo, wait a minute. I have to change my strategy.”
I knew I could take my properties and turn them into traditional rentals and wait out the market – or I could make this negative data work for me – which lead me to really looking at my lease-to-own strategy.
I’d always done lease-to-owns but due to the rental data, I put my lease-to-own strategy on steroids – and it’s working. My first step was to place a small ad on Craigslist. Due to this ad, I received an unbelievable 150 calls! I haven’t seen the numbers I’m now seeing – ever.
2. Look for inspiration outside of the real estate industry.
If you read history, you’ll know that downward trends, no matter how severe, always pass, so it’s important to get your head out of real estate, real estate, real estate and into other sources of inspiration – not just for positive mental attitude but for a fresh perspective.
One place I find inspiration is in my children. If I don’t stay positive and proactive, they won’t have a future.
I listen to John Maxwell, a former pastor and International motivation speaker, who is very down to earth and practical. He talks about how we’re not reinventing the wheel and how the struggles we’re going through now we’ve already done. He helps me keep things in perspective.
And, I take specific theories for living and apply them in different ways. For example, I’ve transferred the concept of homostatius ( def: physiology metabolic equilibrium actively maintained by several complex biological mechanisms that operate via the autonomic nervous system), a medical term for keeping the body in balance at all times.
PMA gurus talk about not hanging around with negative people. Applying the principal of homostatius, I’ve learned that I don’t want to hang around with those people who use extreme PMA techniques.
You can find lots of real estate gurus who have what I call “real estate diabetes.” They push the ultra positive things to the hilt and when you try to follow their advice, you end up “failing,” which brings me to my third tip:
3. Set realistic and achievable goals.
It’s very easy to go to seminars and get all pumped up with a “yes, I can!” attitude. You get a huge shot of adrenaline – then five days later you crash as you realize you’re still in the same rut.
You want to think “big” and push yourself, but you also have to set milestone goals that you can realistically achieve. If you’re currently making $100K right now, setting a goal to make $1 million in 12 months is unrealistic.
Instead, set a goal to make $1 million in five years and then set milestone goals to achieve it, and keep working until you achieve your goal (while celebrating those milestones).
There is absolutely nothing wrong with trying new strategies and failing. Where many people do go wrong is trying new things, failing – and then giving up. Successful people, on the other hand, have can-do attitudes in the face of failure, and will persevere until they achieve their goals.
Keeping a positive mental attitude does begin in your head, but it’s manifested in your actions: search for opportunities where none seem to exist, look for inspiration and advice from successful people outside of the real estate industry, and set realistic goals that you can achieve. You’ll find that it’s much easier to keep a PMA every day.
Tuesday, March 17, 2009
Creative Real Estate Investing: Housing Strats Surge or Did They?
Hello All:
Well, Wall Street is doing back flips on today's surprising surge in housing starts of 22.2% ! But if you look a little deeper you will find the surge is based on speculators who are building apartment building complexes; anticipating increased demand for rental units.
I'll give you my take on what that means for you and me as creative real estate investors on my next blog entry.
Be well,
James Gage
Well, Wall Street is doing back flips on today's surprising surge in housing starts of 22.2% ! But if you look a little deeper you will find the surge is based on speculators who are building apartment building complexes; anticipating increased demand for rental units.
I'll give you my take on what that means for you and me as creative real estate investors on my next blog entry.
Be well,
James Gage
Monday, March 2, 2009
Real Estate Investing Article:Recipe for Successful Real Estate Investing
Yes, I did say recipe, not a cookie cutter formula. You see in my humble opinion cookie cutters are good for one thing – making cookies! Each real estate transaction that you will do will have some things in common, however, most have different logistical and or legal considerations, which make each transaction unique.
Sense most recipes usually have one or more interpretation by the chef(s); here are my essential ingredients to a successful real estate transaction.
1. Know Your Market: This can not be stressed enough in these challenging investing times. Know what investing strategies and techniques will work for maximum profit and leverage in your geographical area.
2. Know Your Exit before you go in the Entrance: Another words, know what you will do with the property before making an offer or instituting a leveraged investing strategy such as a lease option.
3. Budget 20% Above “Fix Up Cost” Estimates : Why? Unforeseen circumstances! In contractor lingo that means “we didn’t know the walls were horse hair plaster, when we gave you the quote”. You get the idea, it’s better to over budget and pocket the overage, rather than start financially hemorrhaging because your profit margin is shrinking faster then the balance in your IRA account due to “unforeseen circumstances”.
4. Be Pro Active: Stay in the game. If you’re working with a real estate agent don’t leave it to them to handle the deal. This is especially true with short sales; most real estate agents don’t know how to facilitate a short sale, so in order to get a YES from the bank you must insert yourself into the equation. Ask questions, demand answers and know who the players are and how to contact them.
5. Have Your Buyer or Tenant In Place: Contrary to some modern day gurus who tell you to find and complete the deal, and people will magical appear to buy or occupy your property – that just doesn’t make good financial sense. Does the movie “Pacific Heights” ring any bells?
My take is to have someone waiting in the wings who is already pre-qualified and is looking for that particular property, in that particular neighborhood. This ingredient goes hand in hand with ingredient # 2 at the beginning of this article, so before you sign on the dotted line for any property make sure you have a winning investing plan in place.
There you have it my essential ingredients to a successful real estate transaction; use them and never worry again about coming out on the short end of the real estate investing stick.
To your success…
Sense most recipes usually have one or more interpretation by the chef(s); here are my essential ingredients to a successful real estate transaction.
1. Know Your Market: This can not be stressed enough in these challenging investing times. Know what investing strategies and techniques will work for maximum profit and leverage in your geographical area.
2. Know Your Exit before you go in the Entrance: Another words, know what you will do with the property before making an offer or instituting a leveraged investing strategy such as a lease option.
3. Budget 20% Above “Fix Up Cost” Estimates : Why? Unforeseen circumstances! In contractor lingo that means “we didn’t know the walls were horse hair plaster, when we gave you the quote”. You get the idea, it’s better to over budget and pocket the overage, rather than start financially hemorrhaging because your profit margin is shrinking faster then the balance in your IRA account due to “unforeseen circumstances”.
4. Be Pro Active: Stay in the game. If you’re working with a real estate agent don’t leave it to them to handle the deal. This is especially true with short sales; most real estate agents don’t know how to facilitate a short sale, so in order to get a YES from the bank you must insert yourself into the equation. Ask questions, demand answers and know who the players are and how to contact them.
5. Have Your Buyer or Tenant In Place: Contrary to some modern day gurus who tell you to find and complete the deal, and people will magical appear to buy or occupy your property – that just doesn’t make good financial sense. Does the movie “Pacific Heights” ring any bells?
My take is to have someone waiting in the wings who is already pre-qualified and is looking for that particular property, in that particular neighborhood. This ingredient goes hand in hand with ingredient # 2 at the beginning of this article, so before you sign on the dotted line for any property make sure you have a winning investing plan in place.
There you have it my essential ingredients to a successful real estate transaction; use them and never worry again about coming out on the short end of the real estate investing stick.
To your success…
Tuesday, February 17, 2009
Creative Real Estate Investing: New Short Sale Formula
I received an e-mail today from a fellow investor asking me if I had made any changes to my short sale formula I use to submit offers to banks and mortgage companies; as a matter of fact I had and now I am sharing it with you my faithful newsletter subscribes.
I hope this helps you do many successful short sales.
Be well,
James Gage
PS: Don’t forget tomorrow at midnight ends my 50% off offer on my “Probate Investing Made Easy Package” normally priced at $37.00, but yours for $18.50 when you enter promo code 555 on the check out page :
http://jgage.com/probate-investing-made-easy.htm
The “New” Making a Short Sale Counteroffer
“Crunching Numbers “
The following is excerpted from proprietary material created by James A. Gage of Gage Consulting Group, LLC, www.JGage.com
Copyright © 2009, not to be reprinted or reproduced without the consent of GCG.
Although some of your initial offers will be accepted, you must also be prepared if the lender rejects your offer. Just because your first offer is denied does not mean that the deal is dead. This is now the perfect opportunity to learn precisely what you have to do in order to close the short sale.
The first thing you will want to do before making another offer is find out from the lender exactly why the first offer was rejected. Here are several key factors that may result in your offer being rejected.
1. They will not net the required amount needed to justify accepting your short sale offer. Simply speaking, your offer was too low!
2. The lender is adamant that they can do better waiting for a better offer or foreclosing on the property.
3. They do not agree with the terms of your contract or net sheet.
4. The loan is government insured and therefore they are protected against a foreclosure.
5. The investors of the loan are asking for more money to close out the loan.
6. You tick the loss mitigations rep off so bad that the last thing they want to do is help you.
7. The hardship was not proven enough to persuade the lender to accept a short sale.
8. The lender would like to explore alternative payment options with the homeowner instead of doing a short sale.
9. Your offer was much lower than what the BPO assessed the house for. This is another example of your offer being too low.
These are just some of the reasons you may get from the lender for your short sale being rejected but the main thing to remember is that you must at least probe and find the exact reason why.
I can confidently say that the main reason your short sale offer will be rejected will be because the offer is too low. Remember, the lender’s number one priority when doing a short sale is how much money they will net.
The best way to find out how much the lender needs to net is to just ask! Once you identify the right loss mitigations rep you can simply ask:
"How much do you need to net if we agreed to a reasonable short sale offer?"
Will the lender tell you how much? That is to be determined after you ask the question. The point is that you will never find out unless you throw it out there.
Even if you don’t find out initially, the next best time to ask is prior to the counteroffer.
You want to start and maintain a constructive dialogue with the loss mitigations rep where you are constantly probing for information that will determine what your best offer will be.
When I do short sales, I mainly develop my initial offer based on how much equity or profit I want to make with each deal. However, from time to time when I’m preparing a counteroffer I use a formula to help me come up with the most accurate guess on what I think the lender is willing to accept. If used correctly, this formula alone will more than pay for the price of this course 1000 fold.
Here it is...
Step 1: I take the estimated or actual BPO amount or the value of the house, based on the comps then multiply that number by 65%.
Example:
$175,000 (Estimated BPO value) X 65% = $113,750
Step 2: I then take the number I got and multiply it by 92%
Example:
$113,750 X 92% = $104,650
If this were an actual deal, I would use this final number or something close to give me my counteroffer amount. Although I have reason to believe that the lenders use a similar formula when they determine the amount they are willing to accept on a short sale, I cannot say that this is exactly it.
I do know that this formula does two things.
1. It gives me a calculated number to use for my initial offer or counteroffer.
2. It allows me to breakdown to the lender how I came up with my offer.
Be resilient yet realistic when making your counteroffers. Understand that it may not stop with the first counteroffer. You may have to counteroffer a 3rd or 4th time just to get the amount down to where the lender feels comfortable to accept. At times it may only be hundreds of dollars that you are negotiating.
If you are game for a strategic a methodical approach to negotiating your offers you can always use my 3 step approach to getting your offer accepted.
Step 1: The first offer will be used to get the number that you and the lender are negotiating down to tens of thousands.
Step 2: The first counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within thousands.
Step 3: The second counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within hundreds. Usually at this point, the lender is the most flexible and the loss is obviously not as great.
Another thing to consider when determining your counteroffer is if in fact it even makes sense to offer one. Sometimes the lender is non-negotiable and will only accept what they will accept. Period!
If this is the case does it make sense to continue trying to persuade someone who is not willing to work with you? You have to make that decision on a case by case basis.
The most important thing to remember when making your counteroffer is that the deal has to make sense for you. I’ve seen investors get their short sale accepted but fail to agree to an amount that is highly profitable.
Like I mentioned, I cannot determine the value of your time and effort. That is something that you must decide, but I can say that short sales are big money deals and if you are making offers that do not put a lot of money in your pocket you are probably leaving it on the table for someone else to enjoy.
To your success,
James A. Gage
www.JGage.com
http://jgage.com/probate-investing-made-easy.htm
I hope this helps you do many successful short sales.
Be well,
James Gage
PS: Don’t forget tomorrow at midnight ends my 50% off offer on my “Probate Investing Made Easy Package” normally priced at $37.00, but yours for $18.50 when you enter promo code 555 on the check out page :
http://jgage.com/probate-investing-made-easy.htm
The “New” Making a Short Sale Counteroffer
“Crunching Numbers “
The following is excerpted from proprietary material created by James A. Gage of Gage Consulting Group, LLC, www.JGage.com
Copyright © 2009, not to be reprinted or reproduced without the consent of GCG.
Although some of your initial offers will be accepted, you must also be prepared if the lender rejects your offer. Just because your first offer is denied does not mean that the deal is dead. This is now the perfect opportunity to learn precisely what you have to do in order to close the short sale.
The first thing you will want to do before making another offer is find out from the lender exactly why the first offer was rejected. Here are several key factors that may result in your offer being rejected.
1. They will not net the required amount needed to justify accepting your short sale offer. Simply speaking, your offer was too low!
2. The lender is adamant that they can do better waiting for a better offer or foreclosing on the property.
3. They do not agree with the terms of your contract or net sheet.
4. The loan is government insured and therefore they are protected against a foreclosure.
5. The investors of the loan are asking for more money to close out the loan.
6. You tick the loss mitigations rep off so bad that the last thing they want to do is help you.
7. The hardship was not proven enough to persuade the lender to accept a short sale.
8. The lender would like to explore alternative payment options with the homeowner instead of doing a short sale.
9. Your offer was much lower than what the BPO assessed the house for. This is another example of your offer being too low.
These are just some of the reasons you may get from the lender for your short sale being rejected but the main thing to remember is that you must at least probe and find the exact reason why.
I can confidently say that the main reason your short sale offer will be rejected will be because the offer is too low. Remember, the lender’s number one priority when doing a short sale is how much money they will net.
The best way to find out how much the lender needs to net is to just ask! Once you identify the right loss mitigations rep you can simply ask:
"How much do you need to net if we agreed to a reasonable short sale offer?"
Will the lender tell you how much? That is to be determined after you ask the question. The point is that you will never find out unless you throw it out there.
Even if you don’t find out initially, the next best time to ask is prior to the counteroffer.
You want to start and maintain a constructive dialogue with the loss mitigations rep where you are constantly probing for information that will determine what your best offer will be.
When I do short sales, I mainly develop my initial offer based on how much equity or profit I want to make with each deal. However, from time to time when I’m preparing a counteroffer I use a formula to help me come up with the most accurate guess on what I think the lender is willing to accept. If used correctly, this formula alone will more than pay for the price of this course 1000 fold.
Here it is...
Step 1: I take the estimated or actual BPO amount or the value of the house, based on the comps then multiply that number by 65%.
Example:
$175,000 (Estimated BPO value) X 65% = $113,750
Step 2: I then take the number I got and multiply it by 92%
Example:
$113,750 X 92% = $104,650
If this were an actual deal, I would use this final number or something close to give me my counteroffer amount. Although I have reason to believe that the lenders use a similar formula when they determine the amount they are willing to accept on a short sale, I cannot say that this is exactly it.
I do know that this formula does two things.
1. It gives me a calculated number to use for my initial offer or counteroffer.
2. It allows me to breakdown to the lender how I came up with my offer.
Be resilient yet realistic when making your counteroffers. Understand that it may not stop with the first counteroffer. You may have to counteroffer a 3rd or 4th time just to get the amount down to where the lender feels comfortable to accept. At times it may only be hundreds of dollars that you are negotiating.
If you are game for a strategic a methodical approach to negotiating your offers you can always use my 3 step approach to getting your offer accepted.
Step 1: The first offer will be used to get the number that you and the lender are negotiating down to tens of thousands.
Step 2: The first counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within thousands.
Step 3: The second counteroffer will be used to either close the deal or get the number that you and the lender are negotiating within hundreds. Usually at this point, the lender is the most flexible and the loss is obviously not as great.
Another thing to consider when determining your counteroffer is if in fact it even makes sense to offer one. Sometimes the lender is non-negotiable and will only accept what they will accept. Period!
If this is the case does it make sense to continue trying to persuade someone who is not willing to work with you? You have to make that decision on a case by case basis.
The most important thing to remember when making your counteroffer is that the deal has to make sense for you. I’ve seen investors get their short sale accepted but fail to agree to an amount that is highly profitable.
Like I mentioned, I cannot determine the value of your time and effort. That is something that you must decide, but I can say that short sales are big money deals and if you are making offers that do not put a lot of money in your pocket you are probably leaving it on the table for someone else to enjoy.
To your success,
James A. Gage
www.JGage.com
http://jgage.com/probate-investing-made-easy.htm
Monday, February 16, 2009
Creative Real Estate Investing: Go where they aint fishin...
James Gage here with Gage Consulting Group hoping that this e-mail finds you and yours in good health.
One of my greatest mentors, who made a great impact on my life, was a gentleman by the name of Paul Gutierrez. Paul was an average Joe by today’s standards, hard working with limited education, but what he lacked in classroom hours he made up one hundred percent in wisdom.
He was the one that told me one day while we were fishing “ Jim, you gotta go where they aint fishin”...
That phrase has guided my investing strategy for over 22 years and I would now like to pass it on to you, so you too can also profit like I do from this simple phrase.
That being said...
What are you going to do to improve your real estate investing business in 2009?
I know that this is a question that many of us are asking ourselves this time of the year as spring approaches.
Many of us made New Years resolutions last month – are you keeping them?
Did you know that one of the best kept secrets to not breaking a new year's resolution?
Not making them!
WHY WAIT UNTIL NEXT JANUARY 1ST TO MAKE A COMMITMENT TO IMPROVE YOUR INVESTING IN THESE CHALLENGING TIMES?
Why not start this evening...You know February 15, 2009.
Get a jump on all the other people who are going to Wait until next year!
What I am about to reveal is a little used strategy to make money in real estate.
No...it is not Bankruptcy!
Yes...there are very few people using this strategy.
Yes...many of these properties ALREADY HAVE EQUITY!
Yes...you will learn a TON on how to expand this lucrative strategy.
Yes...you can implement this strategy as early as next week!
What is it?
PROBATE INVESTING MADE EASY
Discover The Proven Steps To Buy Property 50 -60 Cents On The Dollar even in a down market through Probates !
Nationally known real estate investor James Gage will show you :
How to buy property 50- 60 cents on the dollar
How to find properties
How to negotiate like a seasoned pro
What paper work is involved in the transaction
How to turn Probate property around in record time
with this jam packed CD Package – “Probate Investing Made Easy” .
James takes the mystery and uncertain out of this lucrative, leveraged real estate investing technique.
Before I let you go to read over exactly what this package contains, many individuals have called me and ask if I would put together a step-by- step affordable Probate package on Probate investing, well your wish is my command. I have put together a step by step compressive package on that very subject please visit the following link for more information:
http://jgage.com/probate-investing-made-easy.htm
but it doesn't stop there!
Normally priced at less then a few trips to Starbucks at $37.00, it is a great value if I do say so myself.
But for the next 3 days (February 15 - February 18 ) I am extending to you, my newsletter subscribers the astonishing price of only $18.50! That's a whooping 50% off my normal website store!
Enter promo Code 555 on you order/check out page to receive your discount.
So please visit the link provided for more information on this jam packed Probate Made Easy Package :
http://jgage.com/probate-investing-made-easy.htm
Don't forget promo Code 555
To your success,
James A. Gage
www.jgage.com
With this jam packed informational package you will never have to worry about how to invest with Probate properties again.
What you will learn with this powerful Probate package :
On CD 1 James, will teach you the ABCs of successfully Probate investing:
* How to buy property 50- 60 cents on the dollar
* How to find properties
* How to negotiate like a seasoned pro
* What paper work is involved in the transaction
* How to turn Probate property around in record time
On CD 2 you will receive James’s Power Point presentation that he uses to teach people One-On-One how to invest with Probates, This presentation will be a timeless resource for you to refer back to.
And as a bonus, you will receive the very letter that James uses to this day for contacting the individual(s) in the Probate process!
And of course like all of James's products you will receive much more.
http://jgage.com/probate-investing-made-easy.htm
One of my greatest mentors, who made a great impact on my life, was a gentleman by the name of Paul Gutierrez. Paul was an average Joe by today’s standards, hard working with limited education, but what he lacked in classroom hours he made up one hundred percent in wisdom.
He was the one that told me one day while we were fishing “ Jim, you gotta go where they aint fishin”...
That phrase has guided my investing strategy for over 22 years and I would now like to pass it on to you, so you too can also profit like I do from this simple phrase.
That being said...
What are you going to do to improve your real estate investing business in 2009?
I know that this is a question that many of us are asking ourselves this time of the year as spring approaches.
Many of us made New Years resolutions last month – are you keeping them?
Did you know that one of the best kept secrets to not breaking a new year's resolution?
Not making them!
WHY WAIT UNTIL NEXT JANUARY 1ST TO MAKE A COMMITMENT TO IMPROVE YOUR INVESTING IN THESE CHALLENGING TIMES?
Why not start this evening...You know February 15, 2009.
Get a jump on all the other people who are going to Wait until next year!
What I am about to reveal is a little used strategy to make money in real estate.
No...it is not Bankruptcy!
Yes...there are very few people using this strategy.
Yes...many of these properties ALREADY HAVE EQUITY!
Yes...you will learn a TON on how to expand this lucrative strategy.
Yes...you can implement this strategy as early as next week!
What is it?
PROBATE INVESTING MADE EASY
Discover The Proven Steps To Buy Property 50 -60 Cents On The Dollar even in a down market through Probates !
Nationally known real estate investor James Gage will show you :
How to buy property 50- 60 cents on the dollar
How to find properties
How to negotiate like a seasoned pro
What paper work is involved in the transaction
How to turn Probate property around in record time
with this jam packed CD Package – “Probate Investing Made Easy” .
James takes the mystery and uncertain out of this lucrative, leveraged real estate investing technique.
Before I let you go to read over exactly what this package contains, many individuals have called me and ask if I would put together a step-by- step affordable Probate package on Probate investing, well your wish is my command. I have put together a step by step compressive package on that very subject please visit the following link for more information:
http://jgage.com/probate-investing-made-easy.htm
but it doesn't stop there!
Normally priced at less then a few trips to Starbucks at $37.00, it is a great value if I do say so myself.
But for the next 3 days (February 15 - February 18 ) I am extending to you, my newsletter subscribers the astonishing price of only $18.50! That's a whooping 50% off my normal website store!
Enter promo Code 555 on you order/check out page to receive your discount.
So please visit the link provided for more information on this jam packed Probate Made Easy Package :
http://jgage.com/probate-investing-made-easy.htm
Don't forget promo Code 555
To your success,
James A. Gage
www.jgage.com
With this jam packed informational package you will never have to worry about how to invest with Probate properties again.
What you will learn with this powerful Probate package :
On CD 1 James, will teach you the ABCs of successfully Probate investing:
* How to buy property 50- 60 cents on the dollar
* How to find properties
* How to negotiate like a seasoned pro
* What paper work is involved in the transaction
* How to turn Probate property around in record time
On CD 2 you will receive James’s Power Point presentation that he uses to teach people One-On-One how to invest with Probates, This presentation will be a timeless resource for you to refer back to.
And as a bonus, you will receive the very letter that James uses to this day for contacting the individual(s) in the Probate process!
And of course like all of James's products you will receive much more.
http://jgage.com/probate-investing-made-easy.htm
Tuesday, February 3, 2009
Creative Real Estate Investing: Stop Drinking The Kool Aid !
Hello All:
Did you read the headlines today? Chrysler sales plunge 55 pct; GM, Toyota also down !
Is it just mean or did we, the tax payers, just bail out the big 3? Why yes we did...
Answer me this, why on earth would anyone keep investing money into a losing business model; can anyone tell me the answer to this seemingly million dollar question?
But that is exactly what real estate investors have been doing in these challenging investing times. Let me explain...
For far too long during this cycle I have witnessed countless investors drinking the "Kool Aid" of these so called Gurus trying to convince individuals to hand over the hard earned cash to learn about a strategy that can not possible work in this economic cycle. I understand that people like to surround themselves with winners, but most are just glorified salesman and have no interest in your success - just your wallet.
Some may say that James Gage is jealous of those hundreds of thousands of dollars made in cramped hotel rooms for 2-3 days of work. Nothing could be farther from the truth! I have purposely structured my business model in such a way that I can work One-On-One with people while I continue to do my own deals. Not only doing I think that the individual mentorship approach is the only way for maximum success, but I believe that only one who chooses to teach another, anything, you must be actively involved in it while you are teaching that individual.
So that being said, join with me today and vow to stop drinking the Kool Aid in every aspect of your life.
Did you read the headlines today? Chrysler sales plunge 55 pct; GM, Toyota also down !
Is it just mean or did we, the tax payers, just bail out the big 3? Why yes we did...
Answer me this, why on earth would anyone keep investing money into a losing business model; can anyone tell me the answer to this seemingly million dollar question?
But that is exactly what real estate investors have been doing in these challenging investing times. Let me explain...
For far too long during this cycle I have witnessed countless investors drinking the "Kool Aid" of these so called Gurus trying to convince individuals to hand over the hard earned cash to learn about a strategy that can not possible work in this economic cycle. I understand that people like to surround themselves with winners, but most are just glorified salesman and have no interest in your success - just your wallet.
Some may say that James Gage is jealous of those hundreds of thousands of dollars made in cramped hotel rooms for 2-3 days of work. Nothing could be farther from the truth! I have purposely structured my business model in such a way that I can work One-On-One with people while I continue to do my own deals. Not only doing I think that the individual mentorship approach is the only way for maximum success, but I believe that only one who chooses to teach another, anything, you must be actively involved in it while you are teaching that individual.
So that being said, join with me today and vow to stop drinking the Kool Aid in every aspect of your life.
Tuesday, January 6, 2009
Creative Real Estate Investing: Post Follow Up
James Gage here hoping you and yours had a great holiday season. As many of you know, my faithful blog subscribers, I had blogged about what I believe is the next financial tsunami – “Commercial Real Estate” ! Needless to say, I received many e-mails asking me to expand on my comments and my take on the best way to approach commercial real estate. Not only will I expand, but I will give you my take on commercial and residential leases.
In fact I was speaking to a friend of mine who is looking to open a business in the next 30 days in
Wednesday, December 31, 2008
Creative Real Estate: Happy 2009
Happy New Year!
As we look forward to the great opportunities of 2009 in real estate I want to share with you an e-mail that was sent to me; it said …
94% of people dwell on the negative, and 6% see an opportunity in nearly everything that comes their way.
I'm looking forward to 2009. I'm convinced it will be a year of great opportunity, as it will also be a year of great change and paradigm shifts!
The best advice I can give is to "prepare for change". Keep a level head, work-out what is working and what is NOT working, mix this with an opportunity, and change accordingly. If your horse is dead, get off it and find another (I'm into riding several horses at a time). If your horse is wounded, then decide if you are going to fix it or shoot it. BUT whatever you do – DO SOMETHING - take action.
Good business is a combination of hard work, commonsense, grit determination, and gut feeling.
Talk with you soon.
James Gage
www.JGage.com
As we look forward to the great opportunities of 2009 in real estate I want to share with you an e-mail that was sent to me; it said …
94% of people dwell on the negative, and 6% see an opportunity in nearly everything that comes their way.
I'm looking forward to 2009. I'm convinced it will be a year of great opportunity, as it will also be a year of great change and paradigm shifts!
The best advice I can give is to "prepare for change". Keep a level head, work-out what is working and what is NOT working, mix this with an opportunity, and change accordingly. If your horse is dead, get off it and find another (I'm into riding several horses at a time). If your horse is wounded, then decide if you are going to fix it or shoot it. BUT whatever you do – DO SOMETHING - take action.
Good business is a combination of hard work, commonsense, grit determination, and gut feeling.
Talk with you soon.
James Gage
www.JGage.com
Wednesday, December 24, 2008
Merry Christmas & Happy Hanukkah
On behalf of everyone at Gage Consulting Group, we wish you and yours a Merry Christmas. May the coming weeks entering the New Year be a time of refreshening and redefined goals and business plans for a prosperous 2009.
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