Real Estate Investing Tip: Lease Options

Unfortunately, the current economic situation has made it challenging to buy houses with traditional methods; why not look into Lease Options, AKA Rent to Own?
Click Here to find out !

and in the words of Forrest Gump: "That's all I have to say about that...."

James Gage

www.JGage.com

Breaking Real Estate News: Condo Sales

Breaking Real Estate News: Condo sales down 23% from last year, according to CNBC ! Don't be troubled though; there are always opportunities in every market - you just need to know where to look ! Where do you look?

For more up to the minute real estate investing news, sign up for our Free Newsletter by Clicking Here

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: Should You Buy Title Insurance?

Hello All:

Just a quick post to answer a question I received today. The question: " Should I but title insurance both when buying and selling a property?" You should always buy title insurance on all transactions! You should never just rely on research done by the title company, they are human and can miss something and report the title clean, and when you get ready to sell something from previous owners pops up. If you don't have that insurance -YOU are on the hook! Believe me it happens; it happened to me with the first house I purchased.

So don't forget to buy that insurance, you will be glad you did.

Be well.

James Gage

www.JGage.com

Real Estate Investing: Real Estate Reminder

Hello All:

Just a quick reminder for those who are trying to sell a property. The first time home buyers credit of $8,000 will end this month! So that being said all contracts must be executed by April 30, 2010, and closing must happen prior to July1, 2010.

Also, the $6,500 Move-Up / Repeat Home Buyer Tax Credit will expire on April 30, 2010 as well.

Good luck and happy investing.

James Gage

Real Estate Investing: Lease Option, Rent to Own

Hello All:

Hope this post finds you and yours in good health. Many have asked me when I have a discounted item from my real estate investing series available to let them know...

Rumor has it my Lease Option, Rent to Own Program which retails for $495.00 is on EBay for $197.00!!! Click Here to be brought to the EBay link to find out more information.

Be well.

James Gage

Real Estate Investing: Question of The Month

I just received this question in my e-mail box, so I thought I would share the question an answer with you.

James,

I’m sure you get this question a lot, but is now a good time to purchase a home?

Bob Gomez, Spokane, WA

This is what I responded back…

Hi Bob:

Thanks for the e-mail. Wow! That’s a loaded question, but I will answer it best I can.

First, only you and only you know what you can financially tolerate for a mortgage payment; but I must stress that according to my budget criteria I teach people, only a maximum of 35 % of your income should be set aside for housing! If you can not find anything that falls within those parameters, I would suggest that you consider purchasing a duplex or multi-family and live in one of the units while getting your mortgage paid for you (you will be essential living for free) and receive all the tax deductions, while saving money towards a larger down payment – which will lower your mortgage payment.

Secondly, if you are going to pull the trigger and purchase a home, I suggest you plan on staying in it for at least the next 10 years! Hopefully, that will be enough time for the housing market to give you a big chunk of equity.

Finally, there are a lot of great deals out there for individuals wanting to become homeowners – not investment property; at least not at this point in time. Let me qualify my last statement. There is always an exception to every rule, but great investment property deals are few and far in between without using leveraged investing techniques such as lease options and assignments.

I believe in the near future there will be opportunities for those of us that have cash to get great deals after the 3rd wave of foreclosures makes an appearance.

I hope this helps Bob.

Be well.

James Gage

For more great tips and strategies 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

Real Estate Investing: Where to host your real estate website?

Hello All:

The question always comes up when I talk to people about their real estate web sites (if you don't have one, you should, but we will leave that for another post), where do you host yours? Well, before I tell you where I host mine, I would tell you why I host mine there; then you can make up your own mind.

There are many hosting services that charge as little as $3.95 a month for hosting, but then charge you for having e-mails and increased bandwidth! I don't know about you but I don't want to be nicked and dimed every time I turn around.

Below I have listed what I believe you must have included or supported with your hosting service:

--> Up time, meaning, your website has to be guaranteed up and running on the web greater then 99% of the time. That's unfortunately what happens when you go with these sub par services.

--> Multiple e-mail accounts included

--> 24/7 Customer Service at no additional charge

--> Able to host multiple websites, if you chose, on the same account without paying for an additional account.

--> Statistics Page: You need who is coming to your site and when, so you can see how effective your marketing has been - again at no additional cost.

These are just a few of the benefits I think every hosting service should be giving their customers at no extra cost. That being said, I get the all the above and more for $7.95 per month! If you would like more information Click Here

Real Estate Investing: Assignments Made Easy

James Gage here with Gage Consulting Group hoping that
this blog post finds you and yours in good health.

How would You like to make 3,000 – 7,000 thousand dollars
per real estate transaction, even in a down market, without
owning or financing the property? Well if you said Yes, then
continue reading below...

If you're head is still spinning from the recent changes
and trends in the real estate investing marketplace, and
you're wondering how the heck you can make any money in
this environment without a bag full of cash, then you
won't want to miss out on :

"Assignments Made Easy!"

Banks are even tougher these days with who they're lending
to and what they will finance and they're looking more and
more at your credit and how many years of experience that
you have as an investor!
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, have no substantial cash to put into a deal as a
down payment, or are confused by the new FHA and Prime loan
requirements.

This is the exact process I use in one of my investing
modules for consistent cash flow on a monthly basis.


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 DVD & CD on
"Assignments", well your wish is my command. I have put
together a DVD & CD on that very subject please visit
the following link for more information:
http://snipurl.com/ugk22
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 4 days (Feb 21 - Feb 24 ) I am
extending to you, my faithful newsletter subscribers
the astonishing price of only $18.50! That's a
whooping 50% off my normal website store price! Enter promo
Code 999 on you order/check out page to receive your
discount.

After Feb 24th it will return to the normal price of
$37.00.
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 your
bank accounts perked up to where they should be!

So please visit the link provided for more information
on this jam packed DVD & CD package:
http://snipurl.com/ugk22

Also, as a thank you bonus I am including:
My Step by Step Assignments Made Easy Guide, which will
walk you through the process A-Z.
Don't forget promo Code 999

To your success,

James A. Gage
www.JGage.com

With this DVD & 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 with this powerful package :

On DVD 1 James, goes step by step on how to:
• Choose the appropriate document, for the right deal.
• Fill out each document correctly !
• Protect yourself from litigation in every deal!
• Protect the money you make on each deal, if the deal
doesn’t close!
• And much, much more…

On the CD of Forms, James provides all the contracts you will
need to do any deal, whether a straight transaction or Lease Option
assignment. Each document can be modified on your computer to suit
the structure of any deal.

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

Real Estate Investing: Lease Options

Hello All:

I was asked today what is option consideration in relation to a lease option? Option consideration is the money you collect from a tenant buyer, usually 2%-5% of the agreed upon sales price, which is held outside of escrow, to secure the property. Option consideration is non-refundable and used against the remaining balance owed at closing. Many times proof of option consideration can be used when the tenant buyer decides to exercise their option and make application for financing!

For more information on lease options Click Here .

Until next time.

James Gage

Breaking Real Estate News: FHA Changes Guidelines.

Hello All:

I don't think the government can see past their own face! You would think with the housing inventory that's out there right know, that the last thing the government would do is make thinks harder for individuals to get FHA mortgages. But guess what? They have! As of Friday January 22, 2010, this is what they did in a nutshell...

-> To be able to make a down payment of just 3.5 percent on an FHA-insured loan, homebuyers would have to have a minimum FICO credit score of 580, rather than the current 500 FICO outlined in FHA guidelines. New borrowers with less than a 580 score would have to put down 10 percent on a home purchase.

Thanks Washington for making a tough environment even tougher.

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 Investing: Don't forget to apply for your Abatement !

Hello All:

Don't forget to apply for your real estate abatement's before the end of the month! January is usually the month that cities and towns allow owner's of real estate to apply for a reduction/abatement of their real estate property taxes. On real estate have owned or presently own I apply every year. The procedure is simple, go or call your local tax assessors office and request an Abatement form, fill it out in detail and send it in. In about 30 - 60 days you will receive an answer on how much you were given off your tax bill.

The key to getting your request for abatement accepted is how good your reason for abatement is; you just can't say I want a reduction because...
Rather, you have to make an argument for them in order for acceptance, such as :

-> The value of your property has dropped dramatically
-> You purchased the property for less then assessed value
-> The property is not worth what the town or city has assessed
-> The property hasn't been physically assessed for greater then 3 years
-> Use category has changed or is no longer valid

and so on, you get my point.

You may also want to note that you recognize that the assessment is based on the previous year (they always are 1 year behind ), but your argument still holds true.

For more great tips and real estate strategies click here to sign up for our Free Newsletter.

Until next time -be well.

James Gage

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

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

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.

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

The Three Cardinal Rules of Negotiating Real Estate Transactions

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

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

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

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

To finish the rest of the article click here

Breaking Real Estate News: Housing Data

Hello Everyone:

Oct existing sales are up! However, when you break down the numbers what does it really tell us? According to CNBC : 33% of existing home sales are attributed to first time home buyers, 50% to real estate investors and the remaining 17% to normal market buying.

So what does this all mean? On face value it looks like great news, but when you put it together with last weeks news of : 10% of American home loans are either in default or 30 days or more behind! Could this be budding proof of my prediction of a 3rd wave of foreclosures on the horizon? Only time will tell...

Until next time be well.

James Gage