Why Real Estate, Right Now?

Lately the media has been pounding both the real estate industry and Wall Street, so why is it a good idea to buy real estate, right now, in this economy?

President Obama has three parts to his plan to fix the financial crisis. The first on his agenda is to fix the banking system so students can continue to get education loans, small businesses and entrepreneurs can continue to get business loans, and so the American people can fulfill the American dream of homeownership.

The National Association of Realtors (NAR) keeps statistics of the National Housing Cost. September of 1981 was the peak of the real estate industry of the late 70s and early 80s. Taking an average of the top twenty largest real estate markets (i.e. Los Angeles, New York City, Chicago, Orlando, Las Vegas, Phoenix, etc.), the NAR figured the COST ratio (income to cost of housing) was at a high of 63%!

That means, in order to purchase a home, it cost 63% of your income to pay your mortgage. In other words, if you made $5000/month, it cost $3150/mo for your mortgage payment. That is simply astronomical!

When the real estate market was at its peak just a year or two years ago, the cost ratio of housing cost to income had dropped to 39%. That was when we thought real estate was expensive.

Today, the cost needed to afford a home is 27%, an all-time low. It is cheaper to own a house today, in terms of price and income ratio, than it has been for generations.

It all has to do with supply and demand. Right now, there is a greater supply of foreclosures than there has been for years which is the perfect opportunity for investors to buy cheap. Folks, real estate is on sale right now!

Statistics prove that the real estate market will eventually go back up. And when it does, who will sell? The investors.

Warren Buffet, the richest man in the world, recently said in the New York Times, "So if you wait for the robins, spring will be over." He was referring to the investment market, which includes stocks and real estate.

"When the richest man in the world speaks, I listen and take notes. Even though this may seem to some like simple homespun wisdom, Mr. Buffett is perhaps the most respected investment adviser in America, if not the World. He started investing when he was a child and because of his passion and his focus, he is now worth over 50 billion dollars. [He recently said], "Buy American I Am." in the October 17th edition of the New York Times."(Taken from Real Estate Blog).

Buffet also said, "In short, bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price."

When should we start buying real estate? Right Now! It is the best time in history, for generations, to buy real estate. It's on sale and I'm buyin'!

Why is a Short Sale on Your Home a Good Idea?

A short sale on your home is a good idea when you are facing foreclosure and when you owe more on your home than what it is worth.

A foreclosure is one of the worst things you can possibly have on your credit. It is even worse than bankruptcy. How is that so you ask? Both a bankruptcy and a foreclosure stay on your credit for seven to ten years; however, it is a lot easier to start re-building credit and acquiring new loans after bankruptcy than after foreclosure.

In fact, it is nearly impossible to get a new loan, period, after foreclosure. If you can't pay for your home, then potential new creditors don't believe you can pay for anything - a credit card, car loan, etc. And they will not lend you money. After a bankruptcy, one can get a new loan (credit card/auto loan) within 6 months of bankruptcy and can buy a new home after two years out of bankruptcy.

A short sale is better on your credit than a foreclosure. It will stay on your credit for about three years, and it shows the banks that you made an attempt to make good on your loan. Instead of just leaving the home to the bank, it shows you were pro-active and responsible.

If you owe more for your home that what it is worth, it is also a good idea to sell your home as a short sale. Obviously, if you can stay in your home for a good five to ten years, the value of your home might go up, so you should probably wait it out. But if you can't wait for the value to increase and you need to sell, a short sale is a good idea.

Usually people who need to sell their home in a short sale must do so because of an ARM (bad loan), divorce, medical bills, death in the family, job re-location and loss of job.

If you find yourself needing to sell your home in a short sale or if you want to learn more about how you can help people who need to sell their home, email me at simplehbb@gmail.com or call our toll free number at 1-888-217-5791 (leave your name, phone number and email address and we'll call you back within 24-48 hours).

What is a Short Sale?

A Short Sale is an investment strategy in the pre-foreclosure arena. An investor can make significant profits when purchasing pre-foreclosure properties by discounting existing mortgages.

Essentially, the bank has begun the foreclosure proceedings which can take anywhere from 21 days to 120ish days (depending on which state you live in). The home has not been foreclosed on yet, but it is in the process of being foreclosed on.

The bank does not like it when it has to foreclose on a property because the property becomes a non-performing asset which means the bank must keep $7 for every $1 loaned. If the loan is $100,000, then the bank has to keep $700,000 on hand to protect the asset. That means they cannot loan the $700,000.00 that they could loan prior to a home foreclosure. It makes it difficult for the banks to continue lending and that is part of the reason why our economy is in such dire straits right now. Another example, in a home foreclosure that has $1,000,000.00 mortgage, the bank has to keep $7,000,000.00 in liquid assets (cash) in the bank that cannot be loaned out! That's 7 million dollars that, before the foreclosure, could finance several home loans.

In order to prevent a foreclosure to occur and to prevent the $7 for every $1 of a home loan to be tied up in the bank, the bank is willing to take a discount on the mortgage. That means, if the home loan is $100,000.00, the bank might settle the debt with an offer that is around 80% of the home value. In other words, if the home is actually worth $100,000.00, the bank might take $80,000.00 and settle a mortgage loan debt of $100,000.00.

Right now, in our current economy, homeowners are faced with the reality that their home is worth less than what they can sell it for. In this market, short sales are a very common way for a homeowner to sell his/her home if he/she needs to sell. Basically, the homeowner sells his/her home for less than what is owed with the bank's approval.

For more information on how you can learn more about short sales, how to profit from short sales, how to negotiate with the bank, how to contact prospective clients, how to effectively communicate and work with a seller, how to determine what to offer on a short sale, e-mail your contact information to simplehbb@gmail.com or call 1-888-217-5791.

Short Sales, Making Money with Pre-Foreclosures!

Since the economic decline, my husband and I have been working on pre-foreclosures and foreclosures as a real estate investment strategy.

Last August, we attended a Real Estate Investment College that has literally changed our lives. We received the "meat and potatoes" of how to's in many different real estate investment strategies, including short sales.

The short sales course, taught by two very successful short sales practitioners, taught me everything I need to know to successfully approach, negotiate and complete a short sale deal.

By November of 2008, we picked up three short sale deals. Each profiting us between $10,000 to $15,000.00.

Consistently, we have been able to create at least one or two deals per month by watching the Notice of Default lists, approaching the potential clients, interviewing clients, negotiating with the banks and marketing the homes for double closings.

We have read a lot of books, gone to other seminars, but none of the education we received before even compares to the education we are receiving now at the Real Estate Investment College.

To learn how you can learn more about short sales and other pre-foreclosure strategies, and attend the college too, call us at 1-888-217-5791 or email us at: simplehbb@gmail.com.

Learn How YOU Can Make Money In Real Estate Too!

We have a simple, proven system to help you learn how you can make money in Real Estate. We teach over 30 different Real Estate Investment strategies that work in any economy.

A few of our strategies include:
- Foreclosures
- Short Sales
- Creative Financing
- Buy & Hold
- Fix & Flip
- Multi-Family
- Real Estate Negotiations
- Pre-Foreclosures
- Legal Strategies
- Understanding Mortgages
- And more . . .

Most people don't get into real estate because of 3 reasons: Money, Knowledge and Time. We can solve all three of those for you with our world-class education system.

If you are sincere in your desire to learn how you can make money too, fill out the information questionaire at the bottom of this page and we will contact you within 24-48 hours to set up a time when we can get together to discuss our system in more detail, and show you how you can succeed in making more money too.

There is no cost and no obligation to learn about our system - at least you will be more aware of the options that are available to you.

Send your Resume to: simplehbb@gmail.com . We will contact you within 24-48 hours to talk to schedule an interview where we can learn about each other - your background and skill sets and our system.