January Home Sales

Hello All:

January home sales are in! Guess what? According to all the media outlets 37% of all sales were foreclosures!! It seems that investors are swooping in and buying up investment property. Is this a good idea? I am often asked that, and to be honest there is no generic answer! It depends on a lot of factors and what geographical area you reside. I would say a good rule of thumb would be if you can get an investment property and make $500.00 or more positive cash flow each month after paying your obligations - pull the trigger.

Some would say they would be happy with $200.oo positive cash flow per month, I say, that would replace 1 hot water heater after installation - get my drift. That's why I love lease options; all the benefits of ownership, without owning the property - it's about control.

Until next time be well.

James Gage

Real Estate Investing News: Robert Kiyosaki

Robert Kiyosaki said today on the Alex Jones Radio Show, that if you owe more then your home is worth you should walk away from your mortgage, even if you can make the payments!!!!! He further stated that this is what the financial elite do and that's why they have the money they have; if it doesn't perform dump it!!!! What great financial advice - huh!!!!

That will fix the housing market mess won't it Robert????

For sound real estate advice click here for my Free Newsletter.

Be well and let's make things great again.

James Gage

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

Breaking Real Estate News: Foreclosures

According to CNBC Foreclosures last month were the highest since the housing crisis began! What does that mean? It simply means that home values will take another hit to the downside and housing inventory will sky rocket, forcing those who are trying to sell their homes to either drop their asking price, stay put, attempt to rent it out or get foreclosed upon if they can not make the payments.

Is there any good news? Yes of course for those of us who are leveraged investors, and use the power of Lease Options and Assignment Strategies.

For a Free Subscription to my Leveraged Real Estate Investing Newsletter click here

Until next time be well.

James Gage

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

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

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

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

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

Real Estate News

Right now on CNN, a honesty man by the name of John Adams, a real estate broker, agrees with me, that the real estate market is on "life support"! Finally, some validation on what I have been saying for the last several months from the main stream media. As I have said, the government must extend the home buying tax credit past November of this year, and even extend it to people other than first time home buyers or we will see a reversal of the halt in the declining home prices and values we are seeing across the country.

Until next time, be well.

James Gage

Real Estate Investing: Why The Up Tick in Foreclosures?

Hello All:

You may be asking yourselves why foreclosure filings are accelerating again? The answer is simple; when President Obama took office in January of this year, most mortgages companies place a moratorium on foreclosures. What this means is that until they figured out what he was going to due about a potential rescue plan for home owners, the best course of action would be to place everything on hold.

Now that the President has revealed his plans, the moratoriums have been lifted and the foreclosures have resumed. Truth be told the President's plan hasn't really helped the majority of individuals facing foreclosures, due to the fact that it is a voluntary program for the banks and mortgage companies.
In my humble opinion if they wanted to really help people facing foreclosure they would have passed the "Cram Down Provision" which would have allowed bankruptcy Judges to decide the fate of individuals facing foreclosure.

Creative Real Estate Investing: Part 2 2009 Predications for Our Economy

Hello:

My last post I promised to give you what I believe is the answer to combating my 2009 Predictions on the economy and the real estate investing industry which we are a part of.

The previous post is just a few elements of what I see happening in 2009, I hope they don’t happen, but 90% of my predictions last year have unfortunately have come true…

The good news here is if you start planning and taking steps with the info I have given you in these few lines you will be able to survive the storm, Remember, even in the “Great Depression” there were people who profited and actually became millionaires.

So what do I suggest?

1. Become a leveraged investor through the use of lease options, assignments of short sales and probates.
2. Buy silver to hedge against inflation - it is getting ready for a big move per ounce.
3. When investing in the stock market use “Options” – play the cycles, get in and get out.
4. Play the cycles in the Forex market.

Until next time be well.

6 Red Hot Tips When Negotiating a Real Estate Purchase

Negotiating may be the most critical part of the real estate purchase process. Being able to strike an advantageous deal with the seller virtually guarantees your profit. Negotiating is both an art and a skill that you will master with time and practice; I call it the “Million Dollar Skill”. Here are six tips to get you on your way to profitable transactions.

Know the Property

You should know as much as possible about the real estate purchase you’re about to make. This knowledge comes from researching the neighborhood and knowing how the property compares to others around it along with the cost of potential repair items you may find.

Know the Seller

The best way to learn more about the seller is to listen; use the 75/20 rule, listen 75% of the time and speak 25% of the time! People will be more likely to volunteer information if you give them a chance to talk. But if you aren’t finding out what you need to know, ask questions. Understanding the seller’s situation and their possible flexibility will help you negotiate financing options as well as price.

You also need to find out what the seller’s motivations are. Why are they selling? Or in the case of foreclosure what circumstances brought them to this unfortunate situation. Understanding the reasons behind the sale can help you structure a deal that meets their needs and yours.

Think Win-Win

The best real estate purchase deals result from negotiations that seek to provide something to both parties. There are certain things you want out of the deal and certain things the seller wants in order to sell. Every real estate purchase has several facets. If you can give the seller something they want, that will increase your chance of getting something you want.

Negotiate Terms, Not Just Price

Price is not your only negotiating point. Sometimes the terms of the deal are more important to the seller than the price. Once again, if you can address the seller’s needs in a real estate purchase, your offer will be more persuasive.

Maintain Control

If the seller counters your offer with an offer of his own, don’t let things spiral out of control. Prepare for counter offers by starting your negotiations low and have plenty of concession points. Don’t focus on price, but use other aspects of the deal in your negotiations. Don’t re-negotiate things that have already been decided.

Be Prepared to Move On

Don’t walk away from an attractive real estate purchase without offering your best deal, but know when it’s time to walk away. There will always be another property.

As you can see from these tips, negotiating a real estate purchase is more than two people in a room. Negotiations are won or lost in the preparation. Achieving the outcome you desire depends on your research and mental preparation.

Until next time – be well.

James Gage

Real Estate Tip of The Month : Short Sale Pre-Foreclosures

Hello All:

Here is your July real estate tip of the month. When dealing with pre-foreclosures, and deciding whether to do a short sale, find out up front if the mortgage had PMI insurance! Why? If you were active in real estate investing in the late 80s early 90s when we were in a foreclosure cycle, but at a much lesser magnitude, most mortgages hadPMI insurance. This allowed lenders to take back properties and turn down the majority of short sale offers, and bring those properties into their REO inventory - thus lessening there financial exposure.

What's different in this cycle we are experiencing is that do to creative loans like 80/20s, the cushion is not there! So it stands to reason, if you know how to navigate the short sale process you will be able to get unbelievable deals ( just make sure you have someone in the wings to buy it).

If you stumble upon a deal that has PMI insurance you may want to move on to a property that doesn't have any! That doesn't mean that it is impossible to negotiate a good deal; just more complicated. If you would like to take your short sale skills and tactics to the next level, please do not hesitate to take a look at my investing tools at http://www.JGage.com and click on investing tools or products.

Be well.

New Resource: Negotiating For A Living

Hello All:

I hope you all had a safe and pleasurable 4th of July. Please forgive me for being away from the blog for the last couple of weeks, but I have been busy finishing up a web site that I have been trying to get up for a year or so! That being said, most of you know I have a background as an Arbitrator, which caused me to bring those negotiating skills into my successful real estate investing, and which I have imparted to my mentoring students.

I have started http://www.NegotiatingForALiving.com to teach individuals to do what I have done for 21 plus years! If you are looking for great way to fund your real estate deals, you owe it to yourself to stop by www.negotiatingforaliving.com and watch my video on negotiating for a living.

Until next time be well.

James Gage

TOP 10 REASONS TO BECOME A BETTER NEGOTIATOR IN REAL ESTATE & EVERY OTHER ASPECT OF YOUR LIFE! Part 4

Number 4 of our 10 points deals with: Avoid being cheated or ending up on the short end of the stick.

This tip is straight forward – do your homework. What I mean is, before you enter into any negotiation do some research on your opponent or the person or person (s) that represent their interests. Let me explain …

When lawyers get ready to defend a litigation, one of the first things they do after reading the case file or complaint is research where the opposing attorney went to school, when they graduated and what firm they work for ( this is done via a lawyers state resource known as “The Red Book” ).

Why is this done? Simple, get a leg up on their opponent! Let’s break it down so you will be able to apply it to any venue.

Question: Why does the lawyer care where his opponent went to school?

Answer: All education is not the same, or at least in the eyes of some. Say a lawyer from Harvard is going against a lawyer from a local, small town law school; even though you and I know some of the best people in the industry are from small schools and do laps around Ivy League graduates – they don’t!

So therefore, the Harvard graduate is going to point out where he or she graduated at every juncture, hoping this will psychologically affect their opponent causing them to roll over because they are out of their league- AKA “their out of their league”.

Question: When they graduated?

Answer: Again the opposing attorney wants to know whether he is dealing with a seasoned veteran or someone wet behind the ears. Can you see how important this information can be; remember novices make foolish mistakes.

Question: What firm they work for.

Answer: Once again if their opponent is from a small firm or hang their own shingle, the experienced lawyer, if part of a larger firm asks the opposing counsel over to their firm for the negotiations. Why? The psychological factor – home court advantage, along with the intimidation factor.

I think by this example you can clearly see how you can add this into any situation or industry you are negotiating for or in so you don’t end up on the short end of the stick.

Be well,

James Gage

TOP 10 REASONS TO BECOME A BETTER NEGOTIATOR IN REAL ESTATE & EVERY OTHER ASPECT OF YOUR LIFE! Part 2

Number 2 of our 10 points deals with : "Achieve Desired Outcomes". This is where most negotiators go wrong and settle for whatever they can get in the negotiation process. The number one reason negotiators do not achieve the desired outcome they hope to achieve is because they fail to stick to their negotiating plan, and default to their opponents agenda. The kiss of death to any negotiator is to allow your opponent to take control from you during the negotiating process; it’s better for you to either stop the negotiations or ask for a break! You could use a ploy such as: “ I would really like to postpone this meeting until I have assembled some more information or documentation, so I may provide the most up to date and correct resources or numbers etc……”.

If you would rather just have a break use something like this : ask for a bathroom break, tell them you have to make an important phone call or start talking about something that has very little to due with the subject matter at hand – this in the legal arena is called a “side bar”.

The ploy or break allows you time to get back on track with your agenda and start with a clean slate. This will hopefully break or interrupt your opponents stride and or thought process and allow you to get back on track.

In conclusion, in order to achieve the desired outcome : 1. Never loose control of the negotiations; if so use a ploy or a break technique.

2. Always stay on track with your plan and never give control of the negotiations over to your opponent. Keep these 2 points in mind and you will always achieve your desired outcome.

Be well,

James Gage

TOP 10 REASONS TO BECOME A BETTER NEGOTIATOR IN REAL ESTATE & EVERY OTHER ASPECT OF YOUR LIFE! Part 1

Number 1 of our 10 points deals with : "More Personal & Professional Profitability". Plain and simple, it means the better negotiator your are the more your bank account will increase.

The first mistake people make is thinking that sales and negotiating are 2 different animals - nothing could be further from the truth. We need to treat negotiating as if we are a commission based sales person, that every step of the negotiating process is a matter of putting food on the table.
With that in mind we must change the way we approach the negotiating table and forget about getting to "yes" and get to "no" as soon as possible in order to make maximum profit and leverage time to our greatest benefit.
Instead of dealing with prolonged negotiations, determine upfront whether your time invested will bear fruit or establish whether you are on a hopeless quest leading no where. If you probe your opponent, you sound be able to know based on pointed questions, within 5-7 minutes, if you will be able to accomplish a winning negotiating session; this holds true in real estate, business transactions and personal venues.

" Negotiating is a "Million Dollar Skill".

Until next time be well.

James Gage