Search This Blog

Thursday, January 28, 2010


First it was the sub-prime market and now experts agree, adjustable rate mortgages combined with rising unemployment and falling property values could create another economic storm capable of ravaging the weak economic recovery. Here's a quick breakdown of the ARM Storm-Tracker for those savvy investors "FOLLOWING ME" to beginning their planning:

Resetting Rates:
Current interest rates are at or near historic lows with 30 year fixed mortgages below 5 percent while ARM's are likely to readjust and drive the cost of monthly mortgage payments to double their former payments. Unfortunately, many current ARM holders do not qualify for refinancing due to changes in employment status, high loan to value ratios and increased debt to income percentages.

Evaporating Equity:
Not only did millions of Americans take out Adjustable rate mortgages but they built additions and over-improved their homes based upon loans. As home values fell, so did the equity reserves required to refinance their ARM mortgages. Whether it was a first mortgage with minimal down payment or a second (and even third) mortgage, lower property values have all but erased excess equity from a large number of buyers.

Cheaper to Walk:
Many homeowners are finding it less expensive to simply walk away from rapidly rising mortgage, rent for awhile then repurchase. According to industry experts, a significant number of homeowners are capable of making the mortgage payment but simply don't desire to do so given the cost of purchasing the same home after foreclosure. Current homeowners are eligible for FHA loans in as few as three years after default - creating an inverse incentive to continuing paying on a property worth tens (or even hundreds) of thousands dollars less than the existing mortgage.

Renting an Increased Option:
Throughout the nation lenders are getting creative in order to reduce the inflow of defaulting properties on their portfolio; one of the more popular options among existing homeowners is the ability to rent your current property for a specified period of time.

ReFi with an ARM?
It's true, the FHA has a 3.87 five year adjustable rate mortgage option designed to help keep payments affordable.
Unfortunately, it may simply delay the pain until interest rates continue to rise later. However, with a 2 percent cap on each adjustment/rate increase, it could conceivably buy time for those in unusual short term situations such as temporary illness, job loss of other large expenses. It also has the benefit of "buying time" for the banks and lenders who are in no hurry to acquire even more properties given the current backlog of non-performing properties in their portfolio.

What is a savvy investor to do? Get ready for the coming wave of ARM properties to hit the market. But more importantly partner up today with me, Be sure your credit is in place and position yourself to solve problems for both homeowners and lenders in need of a new start.

Angel Investors / Private Investors
Angel Investors

Saturday, January 16, 2010

Auctions have been capturing alot of headlines lately!

So people are trying to sell me on auction services and of course everyone is asking what is better:

What's Better - REO or Bank Auction?

Big nationwide auctions have recently made headlines but what is actually better for the average investor...REO or bank auctions? Let's take a few minutes to examine the pros and cons for each.

Title -

Purchasing a property via auction frequently entails a commitment to all outstanding debts including unexpected liens and other judgments in addition to those for which the auction is taking place. By purchasing a bank owned property you will typically have assurance of clear title or at least a complete awareness of other fees or liens due.

Occupants -
Property sold at auction frequently has tenants or prior owners still in place, causing new owners to engage in immediate action in order to take possession. Bank owned properties have often evicted former occupants thereby eliminating the need for out of pocket legal expenses. Just keep in mind, this is changing and some short sale investors have encountered squatters. On the other hand, depending upon you plans for the property, having paying tenants may be a strong positive.

Finance Terms -
Auctions require advance funding to be in place while bank owned properties may actually offer added terms or beneficial interest rates in order to move a non-performing property off their portfolio. Since it can cost a lot of money for a bank to keep a property on their books, one way they entice others to purchase is by negotiating the terms of the finance offers. This is especially true in areas where lenders may be limited by the number of homes they can release on the market (ie, federal regulations prohibit "dumping" in certain neighborhoods - often the same ones where many non-performing loans were originally written). By offering highly favorable financial terms, banks are able to shift properties off their books without continuing to drive down prices.

Bottom line -
Short sales are perhaps the best bargain of all but don't underestimate the value in bank owned properties. Auctions are a lot of fun but not always indicative of the best value especially for those just starting out or who only intend to purchase one or two properties.

If you are searching for REO properties I am including a link for the properties directly from the banks. Review them and if you have any questions or need help growing your business let me know. We are opening offices Nationally but only one netbranch / partner per state!

Click on the link below for the list of properties for sale in your area: Most people would charge thousands for this list and inventory!!!
AltiSource Homes - formerly Ocwen

JP Morgan Chase Bank REO (also includes Wells Fargo properties):

M&T Bank REO:

Wachovia REO:

SunTrust REO:

Compass Bank REO:

Fannie Mae REO:

Freddie Mac REO:


Regions Bank Properties

Citibank REO

SBA Properties

FDIC Real Estate Owned

BB&T REO (Branch Bank and Trust)

Beal Bank Commercial REO

GRP Financial Services Properties

People's Bank REO,,1355,00.html

National City Mortgage REO

Taylor Bean REO

Downey Savings & Loan

Beal Bank



Compass Bank

Fannie Mae


Fidelity National Financial

First National Bank of Alaska

First Preston

Freddie Mac




HSBC Commercial


Kennedy Funding

Kentucky Housing Corporation

Keystone Asset Management

Lexington State Bank

M&T Bank

Mortgage Lenders Network

New South Federal Savings Bank

PNC Bank

Private Financial Services (Bank of OK)

Regions Bank

REO Trans

Security National

U.S. Department of Agriculture

U.S. Government Home Sales

Virginia Housing Development

Wells Fargo Commercial

Zions Bank

Angel Investors / Private Investors
Angel Investors

Wednesday, January 6, 2010

Can you sell a house over the phone! Does your realtor make 3% commission for doing nothing? The answer is Yes!!

Much has been written about secrets to telephone success for all types of sales but rarely is it possible to obtain all the best possible tips in one convenient place. Here at my blog I make a practice of providing information you can really use in your day to day investing techniques so without further ado, here are the top eight secrets to phone success for REO investors. I am sure you are all aware that I am not a big fan of people that expect to get paid for doing nothing. So make sure you try selling your own projects to have a better understanding of what is involved. Craigslist, postlets and signs are very inexspensive and the same tools that realtors use. Just save you up to 7%!!

1. UP the Ante.
Buyers who call to inquire about homes listed in advertisements with a price listed can usually afford more. Research indicates most people responding to an ad with a listed price tend to be more conservative and searching for bargains. Make a point of asking about upper limits then provide enticing alternatives whenever possible.

2. Downsize.
Buyers calling about homes with signs in front are usually at - or above - their upper limit. Research indicates prospective buyers that respond to yard signs often have lower income or credit scores. Be sure to screen callers carefully and have other more affordable options available.

3. Ask questions.
The person who asks the most questions tends to be "in charge" of the conversation. Be prepared to ask plenty of questions when responding to a call or inquiry; it's a good way to begin building a list of potential prospects.

4. Follow-Up.
Experts have found that buyers and sellers rarely tend to call back but will respond to information that meets their search criteria. Make it a priority to gather relevant information then follow-up whether via email, phone or standard mail.

5. Ask.
Always ask buyers if they have a house or other property for sale. Even if you don't make an offer, it could become an important part of the negotiation process. It's also a quick way to generate a little extra cash or goodwill by making a referral to your favorite agent or broker.

6. Don't Make Assumptions.
Investors tend to have clearly defined goals so it can be difficult to realize that both buyers and sellers may have little idea what they really want. Don't make assumptions - instead, realize that lack of information is a rampant problem among many Americans. Be prepared to provide information, examples and education
to make the deal work.

7. Compare the Competition.
Most of the time, both buyers and sellers will have other ads circled. From time to time savvy REO investors should know the local competition both in terms of what is for sale and the amenities offered. Don't shy away from comparing your property or service against others - just be sure to do it in a positive way that reflects information.

8. Sell a Service - Not a House!
This is a common mistake among novice REO investors. Remember, every contact is an opportunity for present or future clients so make the most of it. Rather than responding about a specific property, learn to develop a relationship instead. After all, once the caller has rejected the property they have typically rejected your service. Differentiate yourself by providing solutions to their problems rather than just information on a single property.

See you at the top!