Real Estate Investing In The New World

Fastest Recovering Cities

Thu, 03 Dec 2009 03:12:31 GMT

Click here to see where yours is.

I hate compton

Thu, 03 Dec 2009 00:04:05 GMT

We are all ready to close. The buyer has been approved. Now the city had to do another inspection even though they just did one. A new inspector came out and came up with a few dopey things but said that our front enclosed porch is not permitted. Called John to fix the problem. We really don’t have to do anything because the buyer is taking the property in its “as is “ condition but am going to check on the minor stuff.

Holiday Fun

Tue, 01 Dec 2009 01:57:10 GMT

Spent thanksgiving in Denver with my favorite atty (legalwiz.com). Took a great blackmail video of him and his new band. Will show it at our workshop in Jan. Click onto the website for details.

Looks like we got loan approval and are ready to close on Compton. Yeah!!!!! Our backup buyer will be upset.

Looking into a new stream of income while we are waiting for those shadow listings.. If you want to know more about it, click here. We are having a meeting to find out more this Thursday at the Courtyard Marriott in Culver City at 6:30.

Closing on a new deal in L.A. It is zoned r-2. Anyone interested?

Fed expects a good year for housing

Thu, 26 Nov 2009 05:14:08 GMT

. Happy Turkey everyone.

http://realtytimes.com/rtpages/20091124_realestateoutlook.htm

Still no word yet

Wed, 25 Nov 2009 01:46:14 GMT

Mtg broker says we have loan approval but until i see it in writing with any conditions, it’s not a done deal. Things can still fall. Have to get pre-inspection approval from Compton. We are beyond the closing date so i am ready to threaten.

Four Reasons Why Hyperinflation hasn't hit yete

Wed, 25 Nov 2009 01:44:44 GMT

Take advantage of low interest rates while you can. This won’t last. Here is a great article explaining why.

“Everything we know about classic economic theory suggests the U.S. economy should be experiencing Zimbabwe-like hyperinflation right now, thanks to the nearly $2.2 trillion the U.S. Federal Reserve has pumped into the system.But we’re not…yet.

Classic economic theory says that money supply can be used to stimulate the economy and our central bankers seem to agree. That’s why they’ve pumped more than $1 trillion dollars into the economy, engineered countless bailout bonanzas for zombie institutions, put Detroit on life support, and delivered a bunch of financial Band-Aids to the trauma ward — all in a desperate bid to make Americans feel better about the global financial crisis.

To their way of thinking, the trillions of dollars have been a success. That’s why any meeting of the Group of Eight (G8) nations looks more like a mutual affection society with central bankers anxious to claim credit and backslap each other in congratulations for having avoided the “Great Depression II.”

But by taking the Federal balance sheet to more than $2 trillion from $928 billion 2008, they’ve created a situation that should have resulted in an epic inflationary spike to accompany the 137% increase in liabilities.

Yet that hasn’t quite happened.

Core inflation — which denotes consumer prices without food and energy costs — has actually decreased from 2.5% in 2008 to 1.5% presently. And that has many investors who have heard the siren call of the doom, gloom and boom crowd wondering if they’re worried about nothing.

So what gives?

Well, there are four reasons we haven’t yet seen hyperinflation:

1.Banks are hoarding cash. Despite having received trillions of dollars in taxpayer funded bailouts and lived through a litany of shotgun weddings designed to reinvigorate the shattered lending markets, most banks are actually hoarding cash. So instead of lending money to consumers and businesses like they’re supposed to, banks have used taxpayer dollars to boost their reserves by nearly 20-fold according to the Federal Reserve. The money the bailout was supposed to make available to the system is actually not passing “Go,” but rather getting stopped by the very institutions that are supposed to be lending it out. Three-year average annualized loan growth rates were 9.6% before the crisis; now they are shrinking by 1.8%, according to Money Magazine.

2.The United States exports inflation to China, which remains only too happy to continue to absorb it. What this means is that low priced products from China help keep prices down here. And this is critical to something that many in the “China-is-manipulating-their-currency” crowd fail to grasp. If China were to un-peg the yuan and let it rise by the 60% or more it’s supposedly undervalued by, we’d see jump in prices here in everything from jeans to tennis shoes, toys, medical equipment, medicines, and anything else we import in bulk from China. Chances are, the shift would not be dollar-for-dollar or even dollar-for-yuan, but there’s no doubt it would be significant. Many economists I’ve talked to privately think 25%-35% is probable. So the next time you hear a “Buy American” extremist, you might want to share this little inconvenient truth.

3.Consumers are still cutting back. Therefore, the spending that normally helps pull demand through the system is simply not there. I don’t how things are in your neighborhood, but where I live, people are still cutting back. Indeed, data from the U.S. Department of Commerce and the Federal Reserve Board shows that consumer spending growth averaged 1.4% a year prior to the crisis and is now shrinking at a rate of 0.7%. What this means is that people have figured out that it’s more important to save money than it is to spend it. And, given that consumer spending makes up 70% or more of the U.S. economy, this is a monumental change in behavior that all but banishes the last vestiges of the “greed is good” philosophy espoused by Michael Douglas as Wall Street pirate Gordon Gekko in 1987.

4.Businesses continue to cut back rather than hire new workers. Therefore, wages and wage inflation figures are lower than they would be if the economy was truly healthy and the stimulus was working. This is especially tough to stomach because it means people are still being marginalized, laid off and “part-timed” instead of being hired. And that means that most of the earnings growth we’ve seen this season has come from expense reductions rather than top line sales growth — and those are two very different things. But while this is tough, it’s also helped keep inflation lower than it would otherwise be. Prior to the financial meltdown, job growth averaged about 1% a year over the last three years whereas now it’s falling by 4.2%.”

getting a new committment

Tue, 24 Nov 2009 02:44:48 GMT

from the back up buyer/ Lender giving me the run around. Been there- done that. They keep on saying it’s coming but no commitment. The realtor is an idiot because she did not even ask for an extension so i have no obligation to go forward. Will give them to the end of the month. Have to look at CAR contract to make sure i give them proper notice.

Thank goodness for the seminar that Paul Samarin, Esc did for us. Now i know how to handle those pesky little clauses.

Possible trouble

Mon, 23 Nov 2009 01:51:57 GMT

Buyer’s app submitted to underwriting a few days ago but no word yet. Broker not returning calls. That is not a good sign. In addition, the speaker at our sat members only meeting was talking about special down payment assistance programs and he said the one my buyer is getting has problems. Monday will be 30 days which is the deadline. We will send a letter telling them they have until the end of the week or we are cancelling. Of course we will first make sure our 2nd buyer is still ready to go.

working on new deal

Thu, 19 Nov 2009 22:41:58 GMT

Got a line on another deal. It’s in south central so i have to make sure of the values. Going to write a check and then do a double close for the hard money refi.

Want to keep this one. Want to be a partner? No money needed.

Prices up in S. Cal

Thu, 19 Nov 2009 17:32:27 GMT

click here to read story

Working on getting next deal. Trying thrrough leads from bird dogs and mls.

Also preparing card campaign for fsbos and some local advertising. Many folks are behind with great loans that i want to take over subject to,

Some personal stuff

Mon, 16 Nov 2009 21:13:58 GMT

Spent the week in florida moving my mom to a nursing home. (not willingly) Came back with bronchitis so i spent the weekend in bed.

Good news is that my property sale is moving along. Hope to close this week. Need another one. Who has something for me? It’s tough right now to find a real steal.

Open to a flip or a partnership or just money at high interest.

FHA broke again

Sat, 14 Nov 2009 01:22:21 GMT

The FHA doesn't make loans but insures lenders against defaults on mortgages that meet standards set by the agency. The volume of loans insured by the agency jumped 75% in the 2009 fiscal year, which ended Sept. 30, as lenders shied away from risk and as policy makers used the agency to help jump-start the ailing housing market.

http://online.wsj.com/article/SB125805015607445691.html?mod=djempersonal

Always check every detail of your closings.

Wed, 11 Nov 2009 20:02:11 GMT

Still in Florida moving my mom. Waiting for loan approval for our sale. I need to be on top of everything. Have to check every detail. Trust no one.

Importance of having a good escrow agent

Thu, 05 Nov 2009 00:39:28 GMT

My property had to be in my name according to the jerky hard money lender. So i was concerned that the state will withhold 3% of the sales price as they are allowed to do if it is not an entity. So i called my escrow agent and she is going to transfer it to a trust before i close to avoid this.

Non Judical states let lenders off the hook

Thu, 05 Nov 2009 00:37:30 GMT

http://realtytimes.com/rtpages/20091104_nonjudicial.htm

The buyer

Tue, 03 Nov 2009 23:05:20 GMT

came through but only with a lot of pushing on my part with the realtor and the lender. It’s amazing how incompetent some people are. The poor buyer would have lost the deal if we had not intervened. I gave him 7 days to remove the inspection contingency. He had no idea what was going on. In that time period, he also had to give me proof of funds to close. Yes– we can do that just like the lenders do. We got down to the wire. The realtor did not have the form that removes the inspection contingency so i wrote one for her.

Now they are talking about some things that need to be fixed. No way, jose. If you pay attention to the details, you are in the driver’s seat.

unbelievable

Mon, 02 Nov 2009 22:40:41 GMT

The genius property manager i had in Biloxi that i kept only because they had a tenant for me, let them move in with a pro-rated first month rent. YOU NEVER DO THAT. They pay the whole first month and you pro rate the 2nd month. This is a pro?

Unfortunately we have a deal

Sat, 31 Oct 2009 00:57:54 GMT

The first buyer came through with the proof of funds and removal of inspection contingency in time so we have to tell the 2nd FULL PRICE BUYER with better terms-no. Bummer!!!

This is so much fun. We also had a third realtor who wanted to make an over price offer. There really is a shortage of decent houses on the market. They are mostly reo uglies. Buyers love my gorgeous taste.

Knowledge of CAR form

Fri, 30 Oct 2009 23:27:27 GMT

This stuff is sooooo important. You have to check every line in the contract and it’s different for buyer and seller. Since i have not used their contract in so long, i am rusty and made some oversights. A few years ago we did an all day seminar with Paul Samarin, Esq. who is an expert in this. We have a few copes left. Boy do you need this. Click here for more info.

What you don’t want to do is keep your property off the market for someone who can’t close. You also have to limit the time for inspections. All this stuff is really really important to know.

Our buyer is flaky and so i gave him 7 days to complete what he needs to do. There is special paperwork that needs to be completed in that time frame. Since i am sharper than the realtor, i am holding their feet to the fire– especially since i have another full price offer from a more qualified buyer.

halloween idea

Fri, 30 Oct 2009 21:03:31 GMT

how about giving every trick or treater that comes to your door a “WE BUY HOUSES” flier.

In vegas with my coach

Fri, 30 Oct 2009 02:01:50 GMT

Every successful person i know has a coach. I just spent 2 days with min and the others in may group. We exchanged ideas and learned tips from the master. James Malanchuck is the best at marketing and business organization. I really get a lot out of these sessions.

So do you have a coach?

2nd full price offer

Tue, 27 Oct 2009 21:12:40 GMT

This one is better because no contribution on our part. So net to me is better. First guy won’t cancel yet. He says he has the money but i don't know about that. Following CAR form to the letter of the law. Will make sure he does what he has to in the time allowed. You guys need to read every word of it.

Fun and games.

credit card bs

Tue, 27 Oct 2009 02:47:37 GMT

Did you get one of these? My citi credit card is changing my int rate to 30%. I am never late or over my limit.

There are buyers galore out there

Mon, 26 Oct 2009 23:47:51 GMT

I am reassured. We have gotten 3 full price offers, and more on the way. Would love over bids but don't think it would appraise higher. Now trying to get the best net to us. Realtors are blown away by the gorgeous job i did fixing and staging it.

So gang, get the deal, fix it cute and you will get full price offers up the gazoo. This is at the the low end. No wonder there are so many investors picking up these low priced deals. You can either hold for cash flow or sell for a hefty profit.

ON TO THE NEXT ONE!!!

Check on crooked corp

Mon, 26 Oct 2009 17:57:01 GMT

Great website to investigate people and corps under investigation. click here