The fraudulent schemes continues to taint our real estate market. In July the Arizona Attorney general filed suits against 11 real estate professionals, including the real estate broker of a prominent Re/Max franchise in AZ. Attorney General Goddard described this incident as “among the worst abuses of vulnerable consumers that I’ve seen in my time as attorney general”.
The real estate professionals named in the suit are:
1. AZI Rent2Own, LLC
2. RTOSearch.com
3. Tucson Mortgage, LLC
4. VinLan Ventures, LLC dba Re/Max All Executives
5. WGA Enterprises, LLC
6. William Anastapolous, owner of Tucson Mortgage, LLC
7. Amaury Leon, loan officer of Tucson Mortgage, LLC
8. Thomas Piazza, loan officer of Tucson Mortgage, LLC
9. Andrew Silverstein, former agent of Re/Max All Executives
10. Vince Volpe, broker of Re/Max All Executives
11. Anthony Zandonatti, owner of AZI Rent2Own, LLC and RTOSearch.com
According to the AZ Attorney General the scheme started with attracting investors to buy homes that would then be managed by some of the defendants through a rent-to-own program created by their companies. According to Goddard, the investors were lured by promises of easy, worry-free investment returns; most became involved because little or no down payments were required; their involvement in the transaction or subsequent management was minimal; and they were told they would receive investment income from eventual renters.
Goddard also claims many of the investors were not qualified to obtain the loans, but through the actions of several defendants they were able to secure the money to purchase the homes anyway. In most cases, he said, the investors’ loan applications were falsified without their knowledge.In addition to this, novice real estate investors were lured to these easy opportunities to buy rental properties, then the group mentioned above would default on the loans causing the properties to be foreclosed and resulting in substantial harm to the borrowers.
Sunday, August 23, 2009
Saturday, August 22, 2009
When Pessimism Prevails, It's Time to Get Rich
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
Colin L. Powell
You read the news, watch the TV, and talk to your neighbors and you will find that there are still too many people being pessimist about the economy and the housing market. They cannot be blamed, many investors lost their shirt in the worst decline in real estate value in the last twenty years. Unfortunately many families have suffered the lose of their homes and many American have lost hope. Consumers are nervous and people aren’t sure what to do.
In troubled times like the one we are living, many banks have closed the flow of financing into the economy and people are more than likely sticking cash under the mattress instead of making purchases. I’m here to tell you that that’s the wrong strategy. To explain the reason why, I’m going to remind you of the first rule of successful investment strategies – Buy Low and Sell High. During my early years in real estate, those wiser than me would tell me that the profits in real estate investing are made in the buying and not in the selling.
It is that simple. When certain markets start to dive, the smart investor begins to purchase. This is true in the stock market as well as the real estate market, ask Warren Buffet. The smart real estate investor, is now studying great opportunities, he/she does not just make purchases without doing analysis and research. The key to successful real estate investing is in the good decision making. The smart real estate investor is not buying under pressure, since he/she knows her market and knows what is the right price to pay for the property.
Remember the wise words of Robert Kiyosaki, in his article When Pessimism Prevails, It's Time to Get Rich states it best: “Opportunities this big don't come along often, so this is your time to get rich.” This is done best by doing research, learning some, doing some more research and learning some more. Then and only then, will you be able to make sound decisions based upon sound research. Happy hunting!
Colin L. Powell
You read the news, watch the TV, and talk to your neighbors and you will find that there are still too many people being pessimist about the economy and the housing market. They cannot be blamed, many investors lost their shirt in the worst decline in real estate value in the last twenty years. Unfortunately many families have suffered the lose of their homes and many American have lost hope. Consumers are nervous and people aren’t sure what to do.
In troubled times like the one we are living, many banks have closed the flow of financing into the economy and people are more than likely sticking cash under the mattress instead of making purchases. I’m here to tell you that that’s the wrong strategy. To explain the reason why, I’m going to remind you of the first rule of successful investment strategies – Buy Low and Sell High. During my early years in real estate, those wiser than me would tell me that the profits in real estate investing are made in the buying and not in the selling.
It is that simple. When certain markets start to dive, the smart investor begins to purchase. This is true in the stock market as well as the real estate market, ask Warren Buffet. The smart real estate investor, is now studying great opportunities, he/she does not just make purchases without doing analysis and research. The key to successful real estate investing is in the good decision making. The smart real estate investor is not buying under pressure, since he/she knows her market and knows what is the right price to pay for the property.
Remember the wise words of Robert Kiyosaki, in his article When Pessimism Prevails, It's Time to Get Rich states it best: “Opportunities this big don't come along often, so this is your time to get rich.” This is done best by doing research, learning some, doing some more research and learning some more. Then and only then, will you be able to make sound decisions based upon sound research. Happy hunting!
Thursday, August 20, 2009
Home construction up for 5th month in a row
There are recent news that continue to show improvements in the current housing market. Based on the reports issued by the government last week, the economy got a boost as more home buyers are walking into model houses and signing contracts. Furthermore, builders are hiring workers to address the expected demand for new homes. This is in turn helping with the employment situation in the United States. US builders in July broke ground on homes at the fastest pace when compared to the last eight months. This is a sign the housing market is healing as the economic contraction eases. Housing starts rose 2.7 percent to an annual rate of 598,000, the third straight increase, according to the median forecast of 69 economists in a Bloomberg News survey.
Construction of single-family homes increased in July 2009 for the fifth month in a row, as reported by government agencies. Building permits climbed nearly 6 percent. This increase in the construction of new homes, is expected to assist in the improvement in the economy in the last two quarters of this year and potentially create the needed boost in the housing market in 2010. There are a couple of factors that we must take a look at in the next two quarters of 2009. One of them is the unemployment rate, which is now 9.4 percent. Based on economists reports it is expected that this rate will surpass 10 percent. The concern here is that as the unemployment rate continues to hover the 10 percent rate, more homeowners will be unable to pay their mortgages. Another aspect to watch for is interest rates which are still near historic lows but could rise, making homes less affordable. Lastly, foreclosures which are still at record highs and maintaining the housing inventory levels high.
The current foreclosure rate and the increase in the new construction, could put some pressure in the recovery of the housing market by overflowing the market with inventory and keeping prices low as the supply continues to grow. We need to have a massive plan for the acquisition of the foreclosed homes, rehabbed them and place them back to the market at affordable prices coupled with the first time home buyer credit and low interest rates, incentivize home buyers in absorbing the existing inventory, which will allow the new construction to be absorbed by the home buyers that are prepared to upgrade in their housing needs.
We are seeing positive signs in the housing market in the first 7 months of 2009. We need to make sure that the government continues to monitor the foreclosure, interest, and unemployment rates. These aspects of the economy have a direct impact on the housing market current prices and future valuation.Considering that we are working ourselves out of the worst recession, since the great depression we must continue focusing on the positive signs that are being reflect in our recovery period. We must be realistic in our expectations of the recovery and set realistic goals in the process. The recovery wont happen overnight. However, if history has taught us something is that after every bust, there is a recovery and we are seeing the light at the end of the tunnel.
Construction of single-family homes increased in July 2009 for the fifth month in a row, as reported by government agencies. Building permits climbed nearly 6 percent. This increase in the construction of new homes, is expected to assist in the improvement in the economy in the last two quarters of this year and potentially create the needed boost in the housing market in 2010. There are a couple of factors that we must take a look at in the next two quarters of 2009. One of them is the unemployment rate, which is now 9.4 percent. Based on economists reports it is expected that this rate will surpass 10 percent. The concern here is that as the unemployment rate continues to hover the 10 percent rate, more homeowners will be unable to pay their mortgages. Another aspect to watch for is interest rates which are still near historic lows but could rise, making homes less affordable. Lastly, foreclosures which are still at record highs and maintaining the housing inventory levels high.
The current foreclosure rate and the increase in the new construction, could put some pressure in the recovery of the housing market by overflowing the market with inventory and keeping prices low as the supply continues to grow. We need to have a massive plan for the acquisition of the foreclosed homes, rehabbed them and place them back to the market at affordable prices coupled with the first time home buyer credit and low interest rates, incentivize home buyers in absorbing the existing inventory, which will allow the new construction to be absorbed by the home buyers that are prepared to upgrade in their housing needs.
We are seeing positive signs in the housing market in the first 7 months of 2009. We need to make sure that the government continues to monitor the foreclosure, interest, and unemployment rates. These aspects of the economy have a direct impact on the housing market current prices and future valuation.Considering that we are working ourselves out of the worst recession, since the great depression we must continue focusing on the positive signs that are being reflect in our recovery period. We must be realistic in our expectations of the recovery and set realistic goals in the process. The recovery wont happen overnight. However, if history has taught us something is that after every bust, there is a recovery and we are seeing the light at the end of the tunnel.
Saturday, August 15, 2009
Resources Available to Determine the Future Value of a Property
As you know there are many web sites that will share with you the current value of properties. However, I found a site that will share with you the future value of a property. I think this is valuable information for home buyers and investors. This website was created by a Pleasanton-based company, which launched www.smartzip.com, a free Web site designed to help investors and everyday home buyers assess the future value of homes for sale in California and Florida, two areas of the country hit hardest by the foreclosure crisis.
SmartZip rates the future values of homes based on a scale of one to 100. The higher the number, the better the rating in terms of a property's future investment potential based on two factors: growth as measured by what the property is expected to be worth in 10 years and rental income potential.
In addition to rating foreclosed properties, short sales and regular for-sale homes, the site also provides ratings for homes not listed on the market. In all, SmartZip currently has ratings for more than 12 million single-family houses, condominiums and townhouses in California and Florida, with plans to eventually expand ratings nationwide.
The challenge for the home buyers and investor community is that we buy with a vision into the future. Homesellers concern is the current value of the property, that is why sites like Zillow may be useful to them. Zillow and similar sites provide what a property will cost if it is bought or sold today. SmartZip tells you what the property expected value will be in the future.
The system used for SmartZip, is similar to that used in the financial industry to project stock’s future financial performance to determine if it is currently under or over valued.
In addition to SmartZip, there are two other web sites that has been launched recently. One is the San Francisco-based www.finestexpert.com launched a score-based, free online service that helps people evaluate the investment value of more than 4 million for-sale home listings nationwide.
Second is the Denver-based www.investorloft.com also provides free information on for-sale residential properties in California and 17 other states. InvestorLoft users can look for investment properties by putting in criteria to gauge a property's rental income potential, among other criteria.
Like any service that makes projections, there is no guarantee that a rating estimate of property's future value is a sure thing. Eventhough this tool cannot predict the future value of a property with certainty and won’t be able to predict a future downturn in the real estate market, I think that a smart real estate investor can use these tools in combination with other resources to make a sound investment decision.
SmartZip rates the future values of homes based on a scale of one to 100. The higher the number, the better the rating in terms of a property's future investment potential based on two factors: growth as measured by what the property is expected to be worth in 10 years and rental income potential.
In addition to rating foreclosed properties, short sales and regular for-sale homes, the site also provides ratings for homes not listed on the market. In all, SmartZip currently has ratings for more than 12 million single-family houses, condominiums and townhouses in California and Florida, with plans to eventually expand ratings nationwide.
The challenge for the home buyers and investor community is that we buy with a vision into the future. Homesellers concern is the current value of the property, that is why sites like Zillow may be useful to them. Zillow and similar sites provide what a property will cost if it is bought or sold today. SmartZip tells you what the property expected value will be in the future.
The system used for SmartZip, is similar to that used in the financial industry to project stock’s future financial performance to determine if it is currently under or over valued.
In addition to SmartZip, there are two other web sites that has been launched recently. One is the San Francisco-based www.finestexpert.com launched a score-based, free online service that helps people evaluate the investment value of more than 4 million for-sale home listings nationwide.
Second is the Denver-based www.investorloft.com also provides free information on for-sale residential properties in California and 17 other states. InvestorLoft users can look for investment properties by putting in criteria to gauge a property's rental income potential, among other criteria.
Like any service that makes projections, there is no guarantee that a rating estimate of property's future value is a sure thing. Eventhough this tool cannot predict the future value of a property with certainty and won’t be able to predict a future downturn in the real estate market, I think that a smart real estate investor can use these tools in combination with other resources to make a sound investment decision.
Why is Habitat for Humanity building new homes right now?
I am not here to criticize the mission of Habit for Humanity. I believe that they have a noble mission. However, why build houses right now, when families are losing their homes. I found out that in some places Habitat is even bulldozing unsold, unoccupied houses. Why not develop a program to place people back into houses that already exist. This will serve at least two purposes, place families back into homes and reduce the inventory of unsold homes.This seems to me like a noble mission, what do you think?
I am not certain about their current strategy. If someone out there does, please share your thoughts. Based on the information I received, they are building a new subdivision in Florida. The profits generated from the sales of these homes, will be utilized to fund their nonprofit mission of providing housing to low income families. However, why do it by building new homes? Why not use the existing housing inventory? If there is a need to beautify the area, then let’s do a cleanup process, paint the homes, perform the needed repairs and place those houses back into the market at an affordable price.
I am not certain about their current strategy. If someone out there does, please share your thoughts. Based on the information I received, they are building a new subdivision in Florida. The profits generated from the sales of these homes, will be utilized to fund their nonprofit mission of providing housing to low income families. However, why do it by building new homes? Why not use the existing housing inventory? If there is a need to beautify the area, then let’s do a cleanup process, paint the homes, perform the needed repairs and place those houses back into the market at an affordable price.
Thursday, August 13, 2009
Use Offline Marketing To Increase Leads
“Don’t try to find the cheapest source of leads. Cost average the leads across multiple channels and don’t depend on any one thing.”
Building your list is one of the most important tasks in our business. Many times in the process of saving money, we may be spending more. With the internet we have access to leads that are near free. I believe that we must maximize the advantages of the internet in our businesses. However, I encourage you not to depend on the “Free” options of the online marketing strategies and incorporate offline advertising to get maximum exposure. Attack from both angles!
The biggest downside to offline marketing is the cost of materials and the cost of labor. However, this should not inhibit you from implementing the offline marketing into your overall marketing plan. There are cost effective ways to do offline marketing. I suggest that you do not implement your offline marketing alone and recruit some help to be effective with your time.
Offline marketing includes the following activities:
• Signs
• Flyers
• Newspaper ads (in some markets, advertising in the print edition allows you to advertise in the online edition without additional charges)
• Business cards
Here are some quick tips:
• Pay $1.50 to have a sign planted and $1 to have it removed. Put them up on Friday and take them down on Sunday to avoid dealing with the sign police
• For flyers, print on both sides (one with your buying message and one with your selling message). Use bright colors: right now is not the time to be subtle. Get noticed! Expect to pay around 5 to 7 cents for each flyer to be distributed.
• For newspaper ads, bold your headline even though it costs little extra. Once again be effective with your ads and get noticed.
• For business cards, print multiple versions, one with your buying message and one with your selling message
Remember that the objective is to get your properties in front of as many potential buyers as possible. You have to be noticed so people now that you have properties for sale. Combine offline and online advertising, this way you are everywhere and buyers will see your message. Remember, you’re in the business of marketing your real estate business.Attack from all angles.Finally, use your time effectively and outsource this work. You do not make the money hammering signs at the street corner. Start thinking like business executive!
Building your list is one of the most important tasks in our business. Many times in the process of saving money, we may be spending more. With the internet we have access to leads that are near free. I believe that we must maximize the advantages of the internet in our businesses. However, I encourage you not to depend on the “Free” options of the online marketing strategies and incorporate offline advertising to get maximum exposure. Attack from both angles!
The biggest downside to offline marketing is the cost of materials and the cost of labor. However, this should not inhibit you from implementing the offline marketing into your overall marketing plan. There are cost effective ways to do offline marketing. I suggest that you do not implement your offline marketing alone and recruit some help to be effective with your time.
Offline marketing includes the following activities:
• Signs
• Flyers
• Newspaper ads (in some markets, advertising in the print edition allows you to advertise in the online edition without additional charges)
• Business cards
Here are some quick tips:
• Pay $1.50 to have a sign planted and $1 to have it removed. Put them up on Friday and take them down on Sunday to avoid dealing with the sign police
• For flyers, print on both sides (one with your buying message and one with your selling message). Use bright colors: right now is not the time to be subtle. Get noticed! Expect to pay around 5 to 7 cents for each flyer to be distributed.
• For newspaper ads, bold your headline even though it costs little extra. Once again be effective with your ads and get noticed.
• For business cards, print multiple versions, one with your buying message and one with your selling message
Remember that the objective is to get your properties in front of as many potential buyers as possible. You have to be noticed so people now that you have properties for sale. Combine offline and online advertising, this way you are everywhere and buyers will see your message. Remember, you’re in the business of marketing your real estate business.Attack from all angles.Finally, use your time effectively and outsource this work. You do not make the money hammering signs at the street corner. Start thinking like business executive!
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