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Monday, November 30, 2009

Private Investment (Cash, IRA, Stock or 401K) 9-15% Return on a "120 day" Investment

High Return Lowest Risk Investments "That You Control"
Why Private Money Investing Now?

This economy has created the perfect “storm” for Private Money Investing. With foreclosures at the highest rate since America was founded. Real Estate investors are seeing prices at an all time low. The problem most investors are facing is the lack of funding or private financial partners to make money with in the best market in history.

Ask yourself this simple question: Where are the 4 Million plus people that filed or lost there house to foreclosure this year (2009) going to live?

The Answer is simple: Investment properties....

Conventional lenders have significantly limited their programs on investment houses. Banks simply aren’t making investment loans right now. Investors are desperate for funding and have turned to private lenders for cash. Private lenders are earning higher returns on their money than ever before.

If you’ve been looking for an alternative to market investing or looking for the high returns from real estate, but would like to avoid the hassles of owning real estate; private money lending is the answer.

So, what is a Private Money Investing?

It is a loan made to a real estate investor that is secured by real estate.

Private Money Loan Investors are given a first mortgage that secures their legal interest in the property thus securing their investment. With my program the private investor has the first lien (ownership) on the property, is on title and the rehab draws are dispersed after each level of construction is completed.

We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. We offer low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 70% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment

Private investing offers:

 Steady Consistent Monthly Cash Flow
Payments can be made monthly, quarterly or annually

 More security Than Any Wall Street investment
All investments are secured by real estate; as well, as a personal guarantee

 9 to 15% Annual Fixed ROI
Current rates @ 12%

 Investment Control and Portfolio Diversity
Investments start @ 25k with no max.

 Short or Long Term Investment Opportunities
Investment terms range from 4 to 36 months

S/E Directed IRAs and 401Ks are welcome



" No one changes Anything, without risking Everything"

Monday, November 23, 2009


Opportunity Knocks: Are you the right fit / or know someone that is?

Real People with Money "Or can raise immediate capital" needed to make real profits!!


This opportunity is for real investors only, average investment is 50-55% LTV or $70,000 per property for complete renovations and supplies.

· All budgets are broken down into draws after completion of each individual stage. Draws are broken down in 4 stages of $17,500 per stage over a 4-6 week period.
· Average return on investment is 90 – 120 days.
· Average profit per project is $50-60k after all commissions and closing cost.
· 3 exit strategies for each project
· We pay cash for the home, investor secures property with 1st position lien until home is sold

Before Photos of Project Before Renovation (BEFORE)

Current Project Listing After Renovations (AFTER)

Click the following URL to see the listing:

This is the best blueprint in the industry, and only for real investors or brokers that have real clients. Please respond with full contact information for immediate consideration. Private investors, Hard Money or Private banking institutions or welcome to reply. For the institutions the 50/50 split does not apply but very lucrative points and interest will be made available

Here are the hard stats that justify my offerings to the right people.

As foreclosure filings continue their year-over-year growth of 19 percent in October, REO sale investors may wonder if now is the time to invest or if their investment dollars would be better spent later. Despite the dismal news that foreclosure filings grew 19% compared to a year ago, close inspection indicates overall foreclosures have declined three months in a row.

Some of the hardest hit states - and most popular short sale locations - including Nevada and Florida, actually saw year-on-year declines.

But frankly, I argue that those “declines” are simply because banks are attempting loan modifications that will likely not be successful in the end.

So, what is the real status of foreclosures? Here are a few facts to keep in mind when trying to decide whether to take the plunge now or later:

Highest Foreclosure States as of October 2009:

• Nevada - 1 out of every 80 units
• California - 1 out of every 156 units
• Florida - 1 out of every 168

Highest Foreclosure Cities as of October 2009:
• Las Vegas
• Major Cities Throughout California - several including
Merced, Stockton, Modesto & Others
• Cape Coral/Fort Myers
• Orlando/Kissimmee

Total filings for Q3 of 2009: 937,000 filings...

Total notice of default filings for 2009: 3.8 million excluding Q4.

Number of adjustable rate mortgages scheduled to reset by 2012: 10 percent of all mortgages with the peak occurring in the second half of 2011. Remember, it can take several months to a full year before lenders take a property back.
Number of ARM borrowers that are currently delinquent on their mortgages: 20 percent.

Value of ARM loans due to reset by 2012: $1 Trillion dollars.
While the above information may seem to indicate a wait-and-see approach, it must be weighed carefully against the following information:

Low Reserves: The FHA or Federal Housing Administration announced on November 12 that their insurance reserves had fallen below their congressional mandate to only $3.6 Billion, down a full 72 percent from a year earlier and representing only 0.53 percent of the $685 billion in loans insured by the organization.

Translated to plain language = without intervention it could become more difficult to obtain FHA loans and banks holding high number of FHA insured loans are likely to further increase lending standards to offset the additional risk. Since FHA combined with Freddie and Fannie now underwrite 90 percent of all new mortgages, expect continued tightening of credit terms into the foreseeable future.

Bank Failures & FDIC: While not comparable to the S&L Crisis which eventually lead to the closures of hundreds of small lenders, the 120 U.S. banks that have failed this year have already depleted the FDIC funds; at the end of Q2 2009, the FDIC only had $10 Billion in reserves to "insure" over 4.8 Trillion in deposits...a dismal ratio of only 0.22 percent.

Low Rates: Despite the bad news, interest rates remain near historic lows making it more financially feasible to finance a REO sale for long or short term investment potential.

Tuesday, November 17, 2009

Deliquent Mortgages up 58% from one year ago!! Here come the Holidays.. Another reason to Rejoice!

3Q09 - Delinquencies up, rate slows

According to credit reporting agency TransUnion, delinquent mortgages were up 58% from 3.96% a year ago, and as of Sept. 30, 6.25% of U.S. mortgage loans were 60 or more days past due.
Two months delinquency is considered a first step toward foreclosure because it's hard for homeowners to catch up with payments at that point.

The rate of delinquency is slowing, however. (Funny how deliquencies are up 58%, but in the same article they say they are slowing...HMM could it be that it is the end of the year and they will just roll the stats into next year?) The rate was up 7.6% from the second quarter -- a much smaller jump than the 11.3% rise in the second quarter and a 14% rise seen in the quarter before that.

F.J. Guarrera, vice president of TransUnion's financial services division, says that while the slower rate is encouraging, the continual increase shows there are still a lot of problematic mortgages out there.

Mortgage delinquencies remain highest in the four states where the crisis has hit the worst: in Nevada, the rate reached 14.5%, up from 7.7% a year ago; in Florida, the rate was 13.3%, up from 7.8% last year; in Arizona, the rate hit 10.4%, up from 5.5% in 2008; and in California, the rate jumped to 10.2%, from 5.8% last year.
(I wonder what Stetaes I am going to focus on in the Future... Wow the majic 8 ball says we are already there!

Two things have to get better before mortgage delinquency rates start reversing themselves: home values and unemployment. "Until we see improvement in both of those areas, it's possible that it will take longer for delinquency to improve," Guarrera said.

Here Come the Holidays...Another Reason to Rejoice!

It's that time of year when families gather together for a good old fashioned feast, hours of football games and parades plus plenty of healthy debate. Whether you adore all your in-laws or can barely tolerate the thought of listening to stale jokes for one more year, chances are the holidays will still make any REO investor rejoice due to timing. Yes - timing.

It's a not exactly a trade secret but the holidays present the perfect opportunity for REO investors.

First, few buyers are making active offers during the holidays...and those numbers drop to near zero on Thanksgiving and Christmas Day.

However, research shows those same days are actually the best time to make an offer on a home. It seems most sellers are in a good mood and more generous so willing to accept a lower than anticipated offer.

Of course, it doesn't hurt that home prices tend to drop to a twelve month low each December and sellers are very serious about selling - or at least getting a good offer- before the end of the year. People have a mindset that wants closure by the end of the year so having a signed contract on hand provides the peace of mind the need and want to get on with the rest of their life.

To shy or busy to drum up business on an actual holiday?

Try the first Tuesday of the beginning of the month. Not only has the bank made yet another mortgage payment but they didn't receive an offer from anyone that happened to view the home over the prior weekend. Likewise, if you miss house-hunting during December, wait until early January to present really lowball offers; banks, brokers and sellers alike know few people want to trudge through rain, sleet and snow while looking at homes plus the first of the credit card balances are beginning to come due after the big holidays.

Think of it as one more way to motivate sellers and bankers to accept an offer without the need to beg borrow or plead. Instead, point out the obvious to them - the bills are piling up, fewer homes tend to sell and it could be a long, cold and hard winter if they opt to wait it out rather than accept your bid.

Finally, one last word of advice when presenting a holiday offer for a REO home; use a bid that ends in a zero such as $75,000 rather than a precise number such as $75,497. Research shows people perceive precise numbers as lower and amounts ending in 000's as higher. The reality may be quite the opposite but like the old adage - perception is everything.

Friday, November 13, 2009

Friday Words of Wisdom!! KISS Rule (keep it simple stupid)

Typical Friday conversation with a knucklehead led me to remind people that investing like most things in life is simple,

Keep to the rules I have talked about in the past but before anything "how do I know if a property is a good deal?" (this was the question asked to me four "4" different times this morning from a potential investor / NOT!)

How to quickly know if a property is a good deal

Here’s a handy method to get a good idea, at a glance, if a property is worth a closer look…

This is called the “price per square foot” method you can use to quickly evaluate a deal:

Take the price of a house

Divide it by it’s square footage

The number you get will be a benchmark by which to evaluate that property by.

House price/square footage= price you own the home for!


OK seriously:

For example, if most the houses in a certain square mile are worth about $150/sf, then if you find a deal that is $120/sf then you may want to look into it. Likewise, a deal that is $150/sf or over, you can pass on right away.

Some things to keep in mind:

Attics and basements are usually valued lower–so if a house is 2,500sf but half of that is unfinished basement, the price per square foot will be lower–maybe that’s why it’s $120/sf instead of $150/sf.

Upgrades and damage may not be taken into account.

The property location will play a big role in the price.

Verify the square footage–sometimes garages are included, sometimes they aren’t.

Sometimes it’s just the “living” areas.

The amount of land the property sits on makes a difference.

Can you rent part of it out? Rental income adds value to a property.

Know your neighborhood

The important thing to get to know one area very well, and then branch out from there. Start with the neighborhood you live in. In a future BLOG I’ll talk about having a “farm area” that you’ll get to know really well. Farm Area definition: meaning something you invest in and grow, like raising crops "you get out what you put in".

Getting started

Your local county records office (if they have it online that’s even better) and are two places to start to get a feel for the price per square foot of a particular area.
The numbers on these web sites are not always completely accurate, but they’re great for getting an overall average price per square foot on any given neighborhood.

Keep in mind that the price per square foot method is just a quick look at any property. Use it just as a way to reject obviously bad deals or as a green light to look into a deal more closely.

I will use one of my homes as an example so you can see how I look at a house:

Property example:

Purchase price $20,000
Square feet: 1300 square feet

$20,000 / 1300 = $15 per square foot

$70,000 renovation budget

$70,000 / 1300 = $53.85 per square foot (brand new)

Total cost into home: $68.85 per square foot

Average home in area selling for $107 per square foot!!!


This is a real formula and a real home!!

Houses selling in the neighborhood, are not new, do not have the ammeneties that mine does but are selling at $107 per square foot.

We list ours at $107 per square foot and it sells immediately!!!



$38.85 X 1300 SQUARE FEET = $49,595 CASH PROFIT

Now let me ask you the reader a question,


Have a great weekend, e-mail me with any questions!!

Thursday, November 12, 2009

Seven Key Rules for REO / SHORT SALE Investing!!

Foreclosure flipping can be deceptively simple even for novice investors but that doesn't mean it is risk free.

Like any investment strategy, a bit of intelligence can go a long way. Here to help get you up to speed are the seven most important rules for intelligent investing:

1. The Greatest Risk to Your Return is YOU!
Repeat this every day until it sinks in. Nobody else is to blame for your failure or success but both are within your grasp. Recognize how your actions and attitudes either work for or against your success on a daily basis then get busy building wealth.

2. Don't Hire Advisors Without Value.
Mentors, information products and advisors are essential but make sure they will actually add value rather than just costing you more in the long run.(95% of the people that want to learn, work for you or partner really are only there for themselves and will only cost you time and money out of your budget.
**Ask your self this: Did this person bring money, credit, or physically work and rebuild the house with you. If the answer is no to any of these dump them like a hot potato. They are leaches and will do nothing but drain your budget.

3. Ignore Short Term Noise.
The media thrives on generating chaos - its entertaining but not necessarily good investment advice. Learn how to see beyond the madness to see true opportunity. They make money by telling stories, we make money by rebuilding the community. Houses don't lie reports and writers do!

4. Manage Expectations.
Learn how to crunch the numbers, generate profit potentials, remain liquid and tackle taxes to keep expectations in alignment. If you find your numbers are "off" then understand why and how..then fix it. If they are consistently off then you don't have a math have an attitude issue to work with. Likewise, learn how to manage the expectations of others - from sellers to bankers it is important to keep the lines of communication clear.

5. Don't Confuse Investing with Entertainment or Speculation.
Hey, REO's really are fun once you get a system in place but that doesn't mean you shouldn't treat it like business. Avoid ego trips, power plays or any type of games -keep the speculation for the tracks and entertainment for poker night.

6. Reduce Costs - Maximize Write-Offs and Enhance Profits at each and every step.
Do not allow yourself to fall into the pattern that it doesn't matter (Everything and every penny matter, speaking from personal experience I just had a project manager cost me 20k over budget because he just wanted to stand around and order people to do things instead of doing it himself).
A little extra here and a little extra there add up to big differences in the bank account over the long haul.

7. Focus on Real Returns.This isn't Monopoly money. Focus on after cost, after tax, after inflation, actual risk adjusted real returns on every dollar invested. That is the final measure of risk versus reward so make sure it accurately reflects your total investment. While the government might be satisfied to play games with inflation adjusted returns, don't believe it for a minute.

Saturday, November 7, 2009

Humor for saturday!

Dont make me send my daughter over to collect the rent!!

Video name: The Landlord

It is hilarious!!!

Loan Modifications / Short sales don't hurt credit scores!

WOW!!!!! Are there really still this many people that are this stupid...

Ok today's teaching session will cover the consequences of each program. To make sure that anyone involved with me is crystal clear on both of the options so no one ever has to bring these questions up to me ever again.

Short sale: A short sale is when the seller agrees to work with an agent that will negotiate and sell there house at a discounted rate (that the bank has excepted) to another end user or investor. The seller has now lost there home and has to move on into a rental. (the only people that benefit from this are the real estate agent, the bank and the new buyer)

*no one should ever suggest to there client to short sale a property. Short sale strategies are for idiots. They only benefit the buyer (us, not the seller, them)

Now for a customer that has found themselves upside down in there home, there interest rate adjusting but can afford there house payment if the loan was modified to a correct rate the true and only program that will work for them is a Loan Modification.

Loan Modification: A loan modification is for any homeowner in today's market that wants to lower there monthly payment and restructure there loan to the current value of there home in today's upside down real estate market. (like Short sale programs, there are tons of agents/ brokers offering loan modification programs. They are only out for a quick buck and like short sales less than 4% are ever effective)

That being said Loan modifications do work, but if you choose to save your home, lower your payment and set your interest into a fixed position only go with a Loan Modification through an attorney.

No one else, just like every loan modification I have done for friends, family and my other investors. The only effective way to negotiate the modification is through the attorney directly to the bank.

Hmmm: Why is Adam sharing this information with us??????????????????????????????

The reason I am sharing this information with you is because I am tired of people approaching me everyday, offering me super good deals on short sales, telling me how much money I can make convincing people to short sale there house, and in general looking at how many new foreclosures pile up everyday.

So I have now given all of the guys offering me these short sales, something better to do with there time than to steal peoples homes and dreams.

How about now guys you go save mom and dad's house from foreclosure. Come on do something good for the community, Ya I know it doesn't pay as much as the short sales, but man it sure saves a lot of families from being homeless.


Watch out short sale gurus, there is a new kid in town to start showing people the truth behind your little program.

Now another point I want to address with everyone that was brought to my attention was the question about how a Short sale vs. Loan Modification will effect your FICO?

Short sale agents tell there customers that short sales will not effect your Fico score. This is the biggest crock I have ever heard. 1st of all you cannot enter into a short sale with the bank until you are 3 payments behind. Meaning in layman's terms you have not paid for three months. Can anyone say Fico score going down...

"Sarah Davies, vice president of VantageScore, at the Loan Modifications Conference now underway in Dallas, Texas, says restructuring plans on a mortgage, whether in the form a forbearance or Loan Modification, have a relatively insignificant effect on the consumer’s credit score. VantageScore measures the generic consumer’s credit score and his or her likelihood of slipping into 90-plus day delinquencies on a scale of 501 to 990. If a servicer reduces a consumer’s original loan amount from 10-to-30%, the consumer’s credit score is only increased by three to 18 points, depending upon the consumer’s initial standing. Borrowers in the top-tier of credit scores, averaging an 862, receive only a three-point increase. Lower tier borrowers, in the 625 range, can receive an 18-point jump. The credit score increases because the total amount of debt owed is reduced, and the borrower becomes inherently more reliable, Davies said.

However, foreclosure, bankruptcy and short sale can more severely affect the consumer’s credit score. If a borrower, who maintains good credit, is foreclosed, his or her credit score can decrease by as much as 140 points. Bankruptcy for someone in good credit standing results in a reduction of 365 points from the consumer’s credit and a mark on the file for seven to sometimes 10 years, Davies said.

So kids lets scream it once for the cheap seats:




Loan Amounts: $250,000 to $10,000,000 and higher
Available in all states

Property Types: SFR / OO / NOO

Loan Type: Refi, no Cash out, same lender

Credit: NONE, no FICO required

Doc Type: Full Doc or Stated Income, self employed ok

Benefits to the Borrower: Avoid Foreclosure, Lower payments, Lower balance

Exit Strategy: Needs to be in place, only good for 3-5 years

First Lien: 90% LTV, even 100%

Start Rate: 1% - 5%

Prepay Penalty: 0-3 yrs hard

Average cost: $2500-3000


current pay off: 500,000
IO 9%
Monthly payment $ tba
value: $ 300,000

In that scenario we would target a $ 300,000 new principal balance with an interest rate of 2-5%.

There is absolutely NO guaranty your lender will modify your loan.
But we will work hard for you.
Our Lawyers will talk to your lender directly, to ensure every effort and area is covered.

We have a 90% success rate.

It will take you approximately 2 hours to collect your paperwork,

after that it will take us approximately 90 days to get a modification done.

Here is a list of the lenders we have the highest closing ratios and relationships with:

Citigroup Inc
Bank of America
Goldman Sachs Group Inc
JPMorgan Chase & Co
Morgan Stanley
MetLife Inc
Wells Fargo & Co
PNC Financial Services Group Inc
US Bancorp
Bank of NY Mellon Corp
SunTrust Banks Inc
State Street Corp
Capital One Financial Corp
BB&T Corp
Regions Financial Corp
American Express Co
Fifth Third Bancorp

E-mail me for an application and lets save your home today!!