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 : 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 & Facebook

http://www.facebook.com/home.php#/james.gage?ref=profile

I have a new fan page on Facebook. Join now. After you join, you can post pictures, ask questions of the group, and meet interesting people just like yourself!

When you go there, you will see that I have posted a lot of tips and stratergies on creative real estate investing.

And the best part is that I started posting secret discount codes there! These are codes to secret sales that are only shared with my Facebook fans.

Here is the link:
http://www.facebook.com/home.php#/james.gage?ref=profile

I'm actually online on Facebook right now. So, I'll see you there. Have an outstanding day!

Be well.
James Gage
www.JGage.com

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

Lease Option Investing

Hello All:

Don't forget to tune in tomorrow morning to hear yours truly nation wide speak about why now is a perfect time to use Lease Options in controlling investment real estate with little or no money!!!!!

Now Every Saturday Morning !

XM Satellite Radio Channel 169

"Mind Yo Business Radio Program w/ Brian Higgins"

Time : 9:45 AM, EST

Topic : " The Economy & Leveraged Real Estate Investing "

Real Estate Investing: March Housing Numbers

Hello Everyone:

March 09 housing numbers are in! Existing home sales are down 3% over Feb 09 sales, with foreclosures up 49% over last year at this time.

Hot spots for foreclosures: Las Vegas, NV , Florida, Charlston, SC and IL; in fact 1 out of every 22 homes in Vegas are in foreclosure - scary!!!

That being said, now is a great time to get involved in lease options, it's the ultimate escape clause with control without ownership! For more information on lease options please visit : http://www.jgage.com/rent-to-own.htm

Be well,

James Gage

Creative Real Estate Investing: Fannie Mae raises loan limits for investors

Hello All:

Here is some breaking investing news...

Fannie Mae has announced on their website that the 4 loan limit has been removed, and, under certain circumstances, will allow an investor to have up to 10 loans.
This is great news for investors who are picking up foreclosures and keeping them for rental or selling on lease options.

Check out FNMA's website :

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf

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.

Creative Real Estate Investing: 2009 Predications for Our Economy

Hello all:

As I do every year I would like to give you what I see happening in the coming year in our economy.

1. You will see gasoline prices increase once again.
2. You will see oil prices escalate once again as speculators and corporations manipulate the oil and oil futures market !
3. You will see unemployment increase further towards 10% or more !
4. You will see the stock market increase to Dow 10,000 or even 11,000 in the months following the installation of the new President, after the optimism is gone and reality sets back in the stock market will retreat back into negative territory. We could possibly see Dow 6,000 before all is said and done !
5. You will see Gold escalate to $1600.00 or higher an ounce !
6. You will see the further devaluation of the U.S. Dollar against other foreign currencies !
7. You will see a temporary stabilization of the housing market, and then we will return to the downward trend in home valuations and the foreclosure arena !
8. You will see more banks fail and more bank mergers, until we end up with 1 or 2 banking institutions. Note: this may take an additional year or two !
9. You will see your state and local taxes escalate, because federal funding will be greatly reduced or cut off entirely, not to mention business revenue paid to the states will greatly be impacted because they will be going out of business in alarming numbers !
10. You will experience inflation on the rise in every aspect of our economy !

These are just a few 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…

In my next blog post I will give you some ideas on how you can profit from the continuing decline in our economy.

Creative Real Estate Investing: New Real Estate Cylce In Play!

Hello All:

I hope everyone had an enjoyable Thanksgiving holiday and didn’t eat too much turkey – I know I did…

Many of you have asked me to let you know when I see another real estate trend/cycle developing, so your wish is my command.

What I am seeing is just starting to develop, that is, another real estate tsunami in the making – Commercial Real Estate ! I was very reluctant to call this cycle until I could confirm this with solid data, and now I have! If you’re an investor stay clear of commercial properties unless you use 1 of the 3 strategies I lay out:

1. Unless you have someone waiting in the wings to lease or buy said property- don’t touch it with a 10 foot pole!
2. You can negotiate it 35%-40% under Fair Market Value
3. You can use a Lease Option to secure the property; remember it’s the ultimate escape clause!

Now there is an exception to every rule, and commercial real estate is no exception. That being said, you will hear people and guru’s hyping up commercial real estate as the last frontier for investor’s to invest. But I believe that we will soon see massive empty commercial dwellings with tumble weeds blowing through them due to the following reasons:

• Consumers are holding on to more of their income; people are becoming savers again.
• Christmas sales will be much lower then forecasted causing retailers to close stores.
• If big retailers who use leverage to buy are feeling the pinch what does that mean for “Mom & Pop” stores.
• More people are turning to the internet, rather brick and mortar stores.
• Businesses are filing for bankruptcy at an alarming rate, and start up businesses are at a 35 year low!

This is just a brief schedule of indicators supporting my call – there are at least 50 more…

I have been accused in the past of being the type of person that looks at a glass half empty Nothing could be further from the truth, actually, I look at it half full also! I want to be a balanced investor, looking at best case and worse case scenarios, thereby allowing me to make educated and balanced decisions on my investments. That is how I have been able to survive the last 21 plus years as an investor in changing trends and cycles; now I pass on my observations to you my fellow investors.

Until next time – may all your investments be profitable.

Be well,

James Gage

www.JGage.com

PS: Don’t forget my 50% Holiday Sale on all my leveraged Investing products – sale ends December 24, 2008

http://www.jgage.com/Real-Estate-investing-shop.htm

Creative Real Estate Investing: Happy Thanksgiving

On behalf of myself and everyone at Gage Consulting Group http://www.JGage.com , we wish you a Happy Thanksgiving to you and yours.

James Gage

Creative Real Estate Investing: Is The Bailout Going To Help The Real Estate Market?

In the words of Larry Birkhead ( Anna Nicole's ex boyfriend) " I told you so!!!
I have been shouting from the roof tops to investors for the past 24 months on the financial tsunami which would hit our economy; not only did I call the sub prime market, but I also said that after the banks started bleeding, this crisis would expand the into the insurance industry- this has happened as we have seen in the past several weeks. But what now?

The government is proposing a 700 billion dollar bailout, which at the end of the day will be more like a couple of trillion dollars with all the pork trimmings that the politicians can think of putting in. Correct me if I'm wrong, but these are the same politicians and administrators that got us into this mess in the first place, and now are asking for unrestricted, unsupervised card blanch with our takes dollars to fix what they created in the first place - " I was born at night, but not last night!"

As many of you know I am a Conservative Independent, so I don't have a horse in this race or in the present administration, but I know something has to be done. That being said, I don't think this bail out is going to solve the problem; in my humble opinion it has a 25-30% chance of success!
In the short term we may see some temporary signs of possible improvement, but this will be erased when this tsunami spreads to the credit card and unsecured loan industry, followed by the home insurance industry, followed by the market sustaining a severe correction, which will finally result in the dollar being at par with the Peso!

But in all this bad news there is light at the end of the tunnel ! Keep investing short term with lease options, and in the stock market play puts and calls on the indices on the giant move swings we have seen in weeks gone buy. Pay down or pay off your mortgages if possible and start putting an emergency fund aside if you haven't already done so.
Finally, look at buying silver to hedge against any possible unforeseen disaster; gold is to high but silver is a great value at the time of this post.

Be well and stay leveraged.

James Gage

Real Estate:U.S. House Price Decline Could Be Worse than Great Depression, Economist Says

Hello All:

This head line just crossed the wire, and did my e-mail box get flooded with nervous investors! Hopefully they will read this blog post, because to answer all of them I would certainly get carpal tunnel syndrome.

I want to put every investors fears to rest and state here for the record : "every negative, brings with it a positive!"
I have said numerous times on this blog I think we are at least 24 month away from a bottom to this cycle. That being said, I would not be purchasing property now unless you can obtain it for 35% under fair market value, or in the case of rental property, you need a big positive cash flow of at least 40% debt to profit ratio.

Or, you can do what I do and use lease options to invest! If the deal and or the market goes against you, you can escape without financial harm to your investment portfolio!

To your success,

James Gage

Looking For A Career Choice or Change? Why Not Consider Creative Real Estate Investing?

Are you wondering how to choose the right occupation whether you're doing it for the first time or changing careers? Well you came to the right place! Choosing a career can be confusing at best.

There are hundreds of career options out there. How do you make a career choice when you don't really know what you want to do? Does it seem like an insurmountable task? It's not. Yes, you will have to put some time and energy into making your decision, but your effort will be well worth it in the end.

How Do You Choose the Right Career?

Choosing a career is an involved process that is based on a number of things, including your interests, skills, work-related values, and personality.

Whether your goal is a full-time business or a steady, part-time income stream, Gage Consulting Group (GCG) will show you innovative and proven ways to profit and work from your home with a career in the lucrative creative real estate investing industry. Explore the pages of my web site http://www.JGage.com and discover which avenues are right for you!

That being said, browsing the internet there are literally thousands of business opportunity resources and a person often gets overwhelmed by the sheer choice of programs, and services.

When looking for a business opportunity you should look for 7 primary qualities:

1. Integrity : Does the company have a reliable track record/history?

2. Value : Is the company providing a valuable service/product?

3. Training : Do they provide you with quality one-on-one training and materials?

4. Support : Is it easy to contact them and do they reply in a timely fashion?

5. Compensation : Is your effort rewarded in a timely manner (Return On Investment)?

6. Investment : Does the opportunity require tens of thousands of dollars to get started, and years for you to recoup your initial investment?

7. Recession Proof : Can it be profitable in an up, down or side ways economic market?

All these qualities are important when choosing a business opportunity.

Too many people jump in to an opportunity such as MLM ( Multi Level Marketing) that promises them mountains of gold, only to find that they have been ripped off after the opportunity seems to have disappeared into thin air or has gone bust.

Another opportunity being marketed is that of the franchise. A franchise business is a method a company uses to distribute its products or services through retail outlets owned by independent, third party operators. The independent operator does business using the marketing methods, trademarked goods and services and the "goodwill" and name recognition developed by the company. In exchange, the independent operator pays an initial fee and royalties to the owner of the franchise.

The company that grants the independent operator the right to distribute its trademarks, products, or techniques is known as the franchiser. The independent, third party business person distributing the franchiser's products or services through retail or service outlets is called the franchisee. The franchiser charges hundreds of thousands of dollars for a license, and in addition may require annual payments to continue using their name and trade marks.

What ever business you choose to get involved with make sure it meets your budget and expectations! There is nothing worse then starting a business that becomes un-enjoyable, unprofitable, and finally becomes a 80 hour torture chamber.

Understanding & Using Hard Money

James Gage here with Gage Consulting Group hoping that this e-mail finds you and yours in good health.

If you're head is still spinning from the recent news about the trouble with Fannie & Freddie Mac, the collapse of Indy/mac Bank on Friday, and the changes in the lending marketplace, and you're wondering how the heck you can finance your investments with the lending industry running scared from anyone but the best buyers, you won't want to miss out on "Understanding & Using Hard Money".

Banks are even tougher these days with who they're lending to, and they're looking more and more at your credit. What if you have less than perfect credit, don't know how to best present your deal to the bank, want to get commercial financing, would like a line of credit for your business and investments, or are confused by the new real estate investing loan requirements and how you can use them to your advantage?

Before I let you go to read over my exactly what this CD contains, many individuals have called me and ask if I would put together a step-by- step CD on "Hard Money" well your wish is my command. I have put together a CD on that very subject please visit

the following link for more information http://www.jgage.com/hard%20money%20CD.htm

but it doesn't stop there!

Normally priced at less then a few trips to Starbucks at $29.95, it is a great value if I do say so myself.

But for the next 3 days (July 13 - July 16 ) I am extending to you, my faithful newsletter subscribers the astonishing price of only $14.97! That's a whooping

50% off my normal website store price! Enter promo Code 555 on you order/check out page to receive your discount.

After July 16 it will return to the normal price of $29.95.

You maybe asking, why am I doing this? Simple, I am committed to getting this information into as many investors hands as possible, thereby getting our properties financed or under control, not only does that increases our bank accounts $$, but it will also help our economy hopefully stabilize.

So please visit the link provided for more information on this jam packed CD :

http://www.jgage.com/hard%20money%20CD.htm

Also, as a thank you bonus I am including: A HARD MONEY CHECK LIST AS DESCRIBED DURING THE CD PRESENTATION. GET YOUR INFORMATION ORGANIZED FAST; THIS WILL CUT OFF HOURS OFF YOUR DOCUMENT PREPARATION TIME FOR THE LENDER.

Don't forget promo Code 555

To your success,

James A. Gage

www.JGage.com

With this CD which is jam packed full of information you will never have to worry about getting or controlling a property again.

What you will learn on this powerful CD :

On this CD James, along with a veteran hard money lender go over in detail the following topics:

• What is Hard Money?
• The Process.
• Why using Hard Money is cheaper then getting a partner!
• When it is not appropriate to use Hard Money.
• How to use Hard Money with Single Family Rehabs, Multi-family, Acquisition and Rehab, Commercial Acquisition and Rehab/Construction, Land / Subdivisions, Condo Conversions, Flips and Short Sales.
• How to use Hard Money properly.
• Guidelines & Requirements.
• Myths vs Truths about Hard Money.
• Terms
• Documentation needed for a deal review
• Costs
• Where to find ethical Hard Money lenders.
• What questions to ask and what references to ask for.

And of course like all of James's products you will receive much more.

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.

TOP 10 REASONS TO BECOME A BETTER NEGOTIATOR IN REAL ESTATE & EVERY OTHER ASPECT OF YOUR LIFE! Part 3

Number 3 of our 10 points deals with: Maximize financial returns, while creating the edge in negotiations.

The person who mentions price first always ends up on the losing end of the stick. Let’s think about that for a moment. Is it a true statement? Over my 20 plus years of negotiating for a living and real estate investing I can say without reservation absolutely Yes!

Let me explain. When you make the initial offer you give up the ability to see how flexible your opponent is regards to the issue being negotiated, in addition your first offer may be too high and your opponent may accept it on the opening round.

If you are forced to put an initial offer on the table, make sure it is a low ball offer which will demand a counter offer from your opponent.

Be well,

James Gage

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

Why become a better Negotiator? The answer is SIMPLE !!

When you improve your negotiation skills and techniques, you will gain the ability to increase your value in every aspect of your life simply by increasing the effectiveness of your communication skills. Contrary to popular belief negotiators are not born, they’re made through real world training! Here are just 10 reasons for you to improve your negotiating skills, especially in these uncertain financial times…

1. Improve personal and professional profitability.

2. Achieve desired outcomes.

3. Maximize financial returns, while creating the edge in negotiations.

4. Avoid being cheated or ending up on the short end of the stick.

5. Out smart and maneuver around difficult negotiators and their tactics.

6. Enter into every negotiation whether in person or on the phone with confidence.

7. Know when and how to walk away from a negotiation, while leaving the door open to future negotiations.

8. Learn to get to the No’s, before you get to the Yes’s.

9. Turn every cultural, economic differences into assets rather than liabilities.

10. Earn a six figure income on a part time basis by using your negotiating skills.

For the next 10 blog posts I will expand on each one of the above reasons, which will take your negotiating skills to the next level!

Be well,

James Gage

Question of The Week: Lease Options and Repairs

I received a question from one of my mentoring students today, so I thought I would share my answer with you my faithful blog readers.

The question was this “can we, as lease purchase investors require our tenant/buyers to repair items that break or need maintenance during their option period?” The simple answer is Yes; if you structure it properly! The reason this question came up is that my student went to his local REIA club meeting, and heard an attorney say it was illegal to do so. It is only illegal if you include such language in the traditional residential lease, but since we are sandwiching the property, we always use 2 contracts – an option, and a residential lease. Within the confines of the option agreement we place language that states that repair/maintenance issues of x amount are the responsibility of the Optionee, and in order for them to be able to exercise their option down the road they must agree to the language of the contract. If they default they not only lose their option consideration, but they are on the hook for the repair and eviction procedures could follow.

I hope this was useful information.

James Gage

Would You Like To Know Why Lease Options, AKA Rent to Own Are Excellent For Real Estate Investing?

By James Gage

As the real estate market evolves and changes, there are fewer mortgage loans available and fewer people who qualify as the factors for qualification become more stringent. Having less than perfect credit puts, a cramp on the ability to obtain the necessary financing for a traditional home purchase, but that does not mean that fewer people want to settle into a home and become a homeowner. Real estate investors are learning that they can benefit from this situation and make a profit by offering nontraditional means of obtaining a home to those with credit that is not well established or is less than satisfactory to a mortgage lender.

Lease options, aka rent to own homes, are a great source of income for the creative real estate investor who wishes to make money while helping those who cannot get into a home with their own credit to realize their dreams of owning a home. Lease options work much like a leasing a vehicle, only on larger terms. It benefits the tenant buyer who cannot obtain a mortgage to purchase the home by offering them the opportunity to build their credit and make the choice to purchase later while also assisting the investor by maintaining an additional source of income for the duration of the lease period.

When a car is leased, there is a nonrefundable deposit paid to the dealership that equals a percentage of the car's value. This is also done in a lease purchase or rent to own agreement and is referred to as the Nonrefundable Option Payment, securing the tenant buyer's ability to choose whether or not to purchase the home at the end of the lease contract agreement. As with a vehicle, there is a lease contract signed in which the tenant buyer agrees to make a payment of a certain amount each month for a predetermined length of time, usually 12 months. This can be done in a manner that includes payments to be credited toward the purchase of the house or not, depending on how you want to set up the lease.

Finally, at the end of a car lease, the driver has the option to finance the remainder of the "balloon payment" owed on the vehicle in order to purchase it or to turn it back over to the dealership. In real estate, when working with a rent to own or lease option contract, this is referred to as the Option to Purchase contract, in which the tenant is given exclusive rights to purchase the real estate property without you offering it to the highest bidder first without obligating them to purchase when the lease is up.

If the option contract was signed so that the payments made during the lease period were credited toward the purchase of the home, the tenant buyer will need to obtain a mortgage loan equivalent to the remainder of the purchase price originally agreed upon. If there were no rental credits, the tenant buyer will need to obtain the entire purchase amount.

Lease options and rent to own housing are excellent ways for a real estate investor to make a lot of money because there are three different sources of money coming in, all of which add up to a sum greater than the original investment by far. You put little money into the purchase, and in exchange, you receive an up-front payment, monthly installments, and finally a purchase payment equal to an amount greater than you paid. I structure all of my deals so I get paid at the beginning of the deal, the middle of the deal, and at the end of the deal – what more could an investor want !