Breaking Real Estate News: Foreclosures

Hello All:

James Gage here with breaking real estate investing news; it seems Florida has put foreclosures on the fast track!According to CNN, Duval County (which is Jacksonville) has hired retired Judges to push foreclosures along at record speed. It seems Duval County along with others state wide are getting rid of the foreclosure backlog by having these hired Judges rule on Foreclosures from filing to sale at an average of 2 minutes per case! The average Judge will hear and render a decision on a whopping 35 or more cases a day.

Sounds to me like there will be a lot of challenges going on at the Florida Supreme Court level to these retired Judges verdicts. Is it me or does anyone else think that the bank and or mortgage companies have something to do with this process? I understand the frustration on both sides of the coin, but I was always taught if you are going to do something make sure you do it right the first time, and it seems to me that 2 minute hearings don't fit the bill.

As for us real estate investors, this means it's time to brush up on our REO strategies.

Until next time be well and to your success.

James Gage

PS: For more great tips and strategies click here to join our FREE Newsletter.

Breaking Real Estate News: Foreclosures

Hello All:

According to CNBC on Friday, another banking giant has placed a hold on foreclosures in 23 states! Who is that giant? JP Morgan! As in the other banking institutions, this does not mean they will not do any short sales, rather they will be very selective and turn around times might be a little longer then normal. This is where your negotiating skills come in - you have to be at the top of your game with every submission.

To learn how you can take your negotiating skills and turn them into seed money for your real estate transactions please visit: www.NegotiatingForALiving.com

Be well and happy investing.

James Gage
www.JGage.com

Foreclosure News: GMAC

Hello All:

GMAC announced today that they are halting all foreclosures and issuing a hold on selling all REO (Real Estate Owned) properties! What doe this mean? It means that they have finally seen the light!!! They have figured out that the more foreclosed properties they flood into the market for sale, the less money they will make on these properties because of market saturation. Is this a good move on their part? I say No!

My logic is this, a little bit of something, is better then a whole lot of nothing. What I mean to say is, that what are you going to do with these properties, hold them for the next 25 years, waiting for the housing market to improve? The way I see it the housing market will not rebound until unemployment retracts, government clues us in on the tax structure after January 2011, and we start supporting and encouraging small businesses to flourish.

So, in conclusion, I would say that short sales are still possible with GMAC you just have to be at the top of your Negotiating game.

For more information and tips on leveraged real estate investing and negotiating for profit, please visit our website and sign up for our Free newsletter: Click Here

Until next time - be well.

James Gage

www.JGage.com

Real Estate Investing : August 2010 Article of the Month

How to Prevent Wasting Your Valuable Time As A Real Estate Investor

No matter where you are on the financial ladder or your position in society, we all have something in common, and that is, we all have 24 hours to utilize in a day. With that in mind how many times have you found yourself chasing your real estate investing tail? How much time have you invested in deals that go no where but down the drain?

This is what I suggest you do before you even attempt to look at a property. A few weeks ago I sent you a link to a video I did on how to do a mini-title search, which shows you what kind of liens, judgments and or encumbrances are on the property, so you may figure those factors in when evaluating a property. You can view that video at : http://www.youtube.com/watch?v=BAV0aPhPl-c

Now the question arises; what happens if your state doesn’t provide this type of data available online. Here is a way around that problem! Get 1 or 2 Realtors that you use for the viewing of investment properties and have them do the leg work for you at the courthouse; teach them what I have shown you on the video. Make sure they understand the process for gathering the data before you expend any of your valuable time looking at properties. That being said, the Realtor must do 2 things for you before you agree to meet with them and view the property: 1. verify the property is still for sale and has no other offers pending, and 2. make sure you have a list of all liens, judgments and encumbrances that appear on the property.

If you follow theses simple steps you will leverage your front end time of your real estate investing plan.

Hope this helps.

James Gage
www.JGage.com

Real Estate Investing: Will Pregnancy Prevent You From Getting a Loan?

Hello All:

There has been a lot of talk about banks and mortgage companies denying loans to women who are pregnant or have just delivered- is this true? Face value it might look that way, but it just isn't so - let me explain.

First off this has nothing to do with pregnancy. There is nothing new here at all. We are talking about mortgage guidelines! We are in a Full Documentation World now and they, the banks and mortgage companies need to document income and employment.
Here is how Employment and Income is verified by the powers that be:

• Review pay stubs, W2's etc... If the stubs mention disability or maternity leave it is a red flag

• Call the employer: "Does Jane Doe work there?" This call is often made just before closing since guidelines require a "fresh" verification. If the borrower is on a temporary leave it WILL cause a problem.

Why? It is pretty simple, mortgage guidelines require income streams to last at least 3 years to be considered for qualifications. Maternity leaves are not permanent income, they are often only for a few months and may only be a form of short term disability.

Will a loan be denied if some one is on maternity leave? No, But the closing may be postponed until the borrower returns to work. The guideline has always required a pay stub to prove the borrower has returned to work. This is not just for Maternity leave, it could be for any form of temporary disability.

This is not a discrimination item; it is purely an income issue. It is also Mortgage Banking 101... The basics that have been in the underwriting guidelines for decades. So be careful of what you read, and the source is important as well. A lot of the uproar was from an article floating out in the media that sensationalized guidelines as if they were some new 2 headed beast, The media often takes the side of an issue that will sell things rather than inform accurately.

Now that we have that straight happy investing.

To your success,
James Gage

Real Estate Investing: How to do a Title Search before viewing a property

Check out my video on " How to do a Title Search before you go to a property", find out the information you need before viewing a property: Click Here

Breaking Real Estate News: Foreclosures

Hello All:

I have some breaking news for you on the real estate investing front! Foreclosures for the first quarter of 2010 are up 19% according to CNBC!

You maybe asking yourself how can this be, when the stock market is rallying and breaking the 11,000 mark. Well, it’s simple! Most of the money coming in to the stock market is foreign money, looking to make a quick buck on this temporary stock market rally. Remember, also today we were told that unemployment unexpectedly increased – yeah right.

So what does that mean to you the investor? It means the 3rd wave of foreclosures I have been predicting is starting to come to pass. As always, in any cycle, there is opportunity to be found, if you just look. There will be more short sale, assignment and lease option opportunities for all of us to make a boat load of cash; if you know what you’re doing….

To learn how to benefit from this cycle, click here and sign up for my Free Newsletter.

Until next time, may all your deals be profitable.

James Gage

Real Estate Investing: Beware of Short Sale Companies

I have come across more than a few companies that claim to be “experts” in short sale negotiations, only to find that not only is the information they provide not accurate, but sometimes they are just out-and-out scams. Most are newly formed companies, with no true experts on site. Typically they’re just trying to take advantage of the current market. I know of a company in GA that tells real estate investors that they will negotiate short sales on their behalf for $1,800.00 per transaction and the investor gets to keep all the profit! Only one problem; they close less then 1% of the short sales they are given.

We are in a time where many people are desperate financially and emotionally, and there are those out there who are eager to take advantage of people in these types of situations. Granted, there are some agencies out there that are good, legitimate short sale companies but, you have to know the difference between the good and the bad.

So what is the answer? Learn how to negotiate short sales yourself! Yes, it's possible to learn to negotiate short sales, as an investor or on behalf of someone else.

If you are ready to learn how to negotiate short sales correctly please Click Here

Until next time.

James Gage

Breaking Real Estate News: Governement to Stop Foreclosures?

Hello All:

Get this, President Obama is thinking of stopping all foreclosures (except for investors of course)! What will happen is a government organization will tell the banks and mortgage companies when and if they can foreclose!!!! Does this make sense? Not only will this give the government another slice of power over the free market system, but it will cripple the housing market. The bigger question is who will pay for this? Banks and mortgage companies will close in record numbers; they will not be able to balance non performing properties.

So what is the answer? Unfortunately, we have to allow the market to correct itself! That means foreclosing on those who can not benefit from loan modifications, and assisting them into the rental market.

This is precisely why I strongly suggest that investors use leveraged invest techniques with little to no risk such as "Assignments Made Easy" Click Here for more information.

Until next time - be well.

James Gage

Short Sales: Pre-Foreclosure News

Hello All:

New federal guidelines that give lenders a 10-day limit in which to respond to purchase offers on short are in play! Sound to good to be true? Yep, it only applies to banks that have received TARP funds. Also keep in mind that if they do respond to the offer in the 10 day window, plan on a 60-90 day or longer closing date - you will still have to go through the whole process!

For more up to date real estate information as it happens go to www.JGage.com
and sign up for our Free Real Estate Investing Newsletter.

Until next time, be well.

James Gage

Breaking Real Estate News: More FHA Changes

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

Foreclosure News

Hello All:

I just got off the phone with a real estate attorney friend of mine that confirmed what I have been telling you, my faithful readers for the past 3 months! What's that you say? That the 3rd wave of foreclosures has begun to raise its ugly head. He said he can't handle the amount of individuals coming to him seeking loan modification/foreclosure help on properties that have first and second mortgages on them (AKA Prime loans). Also, individuals with home equity loans that are in default are starting to become more numerous!
Most individuals have been living off their credit cards hoping to trend water until a turnaround in the economy; but most have run out of time. My attorney friend said the average credit card debt he is seeing is between $50K - $200K; that means we will also see an uptick in bankruptcies!

If this trend continues, which I don't see any evidence it won't, we will see commercial foreclosures sky rocket! Fasten your seatbelts; this is going to be a bumpy ride…
Remember, those who can recognize trends and patterns, and act on them quickly will always make money in any economy.
Until next time be well.
James Gage

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 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....

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.

Short Sales: U.S. Treasury set to finalize home "short sales" plan

Hello All:

Here is breaking news on short sales: http://news.yahoo.com/s/nm/20091002/bs_nm/us_treasury_foreclosures_plan

Be well.

James Gage

Short Sale Considerations

The majority of the time this blog is devoted solely to real estate investing from an investor’s point of view, however, during this post I will address the homeowners’ position in terms of short sale considerations. That being said, a short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer, you will not qualify for a short sale. So even if you meet all the other criteria, it is possible that no one will buy the short sale. It is also dependent on the lender accepting the buyer’s offer. If the lender rejects the offer, a short sale will not take place.

• Tax Consequences
• If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.
• You should speak to a real estate lawyer and a tax accountant to determine the amount of short sale tax consequences, and whether you can afford to pay those taxes, if any.
• Blemished Credit Report
• A short sale will show up on your credit report. It’s a pre-foreclosure that has been redeemed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction. Experts say the drop in your FICO score is identical to a foreclosure reporting.

Real Estate Tip of the Month- July 2009

Real Estate Tip of the Month

Watch out when purchasing or lease optioning newer construction, say within the time frame of the last 5-7 years. Why? In a rush to fill demand during the housing boom, many builders cut corners and did very substandard workmanship! Now, these practices have come back to haunt home owner’s and sellers of both residential and commercial property in the form of expense repairs; in some cases repair costs surpass the current value of the property!

So what can you do as an investor or home buyer if you are debating purchasing or lease optioning a property referenced above? Make sure you get a good home inspection by a reputable company, and have an expert evaluate any areas of concern that the home inspector may note on their report. Remember, contrary to popular belief, the home inspectors job is just to give a general opinion on the shape and condition of the property, any “red flags” that he or she points out should be addressed by an expert in that particular field of concern.

You may want, if available in your geographical area, to purchase a home warranty on the property you are purchasing or lease optioning. These policies protect you, the owner, from footing the bill for major repairs or replacements of costly appliances in and on the dwelling. You can research via a search engine on the web, such as Google, and do a search under “Home Warranties”, and choose a plan that is right for your situation and budget,

Until next time – be well.

James Gage

Real Estate Investing: Lease Options

Hello All:

Rumor has it, that my Lease Option Home Study Package is on EBay for $197.00 !!!! It regular retails on my website for $495.00, what a savings...

Here id the link : http://tinyurl.com/msf4ko

Be well.

James Gage

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.