All of us when we sign a legal contract we are supposed to read before we sign the dotted line. When documents are submitted to a court they are supposed to be true as submitted. When the documents submitted with a court a document in which someone swears that it has been personally verified the information contained within the document is true and it is not true, you and I would get real trouble. In the eyes of the courts that is considered fraud. This is exactly what the scandal that was unveiled in the latter part of 2010, when it was revealed that GMAC, JPMorgan Chase (JPM), Bank of America (BAC) and One West Bank employees routinely signed hundreds of documents without verifying what they were signing.The problem is that documents were submitted to courts as if the documents were true which enabled banks to foreclose on delinquent properties. Also, Wells Fargo (WFC) and Citigroup's (C) CitiMortgage has been involved in this scandal.
According to John Walsh, the acting head of the Office of the Comptroller of the Currency, in his testimony before Congress, “These deficiencies have resulted in violations of state and local foreclosure laws, regulations, or rules and have had an adverse affect on the functioning of the mortgage markets and the U.S. economy as a whole.” The Federal Housing Administration Commissioner David Stevens talks about punishments will include fines paid to the government and affected homeowners may possibly get loan modifications or a partial forgiveness of their loans’ principal balance. However, if the fines are not sufficient to require a modification in their behavior to motivate them to avoid repeat occurrences in the future it would be basically just slapping these banks on the hand. When these banks have revenues in the billions of dollars and they are fined a couple of thousand of dollars, that’s peanuts to them; they will pay it laughingly.
In another example of potential Robosigning, Citigroup transferred a mortgage from Lehman Brothers to Citi in 2009, which has already ceased to exist. When confronted with its nonsensical filing, Citigroup decided not to foreclose. Instead, it gave the homeowner a meaningful mortgage modification -- $15,000 principal reduction, plus a 30-year fixed mortgage at 3% (oops). Can you imagine if this information was not made public? This family would have been wrongfully foreclosed on.
The cases making it to the news are from large national, international sophisticated banks. How can this be happening? The main reason is that when a bank wants to foreclose by law it has to prove it actually has the right to foreclose (that it owns the note and accompanying mortgage). Sometimes these sophisticated banks, due to the securitization of mortgages and the changes in property-ownership documentation that accompanied such deals can make it hard for the banks to establish clean chains of title and produce original documents. Every foreclosure is different since foreclosure processes vary from state to state and whether it is a Fannie Mae or Freddie Mac note. In addition, there’s all those little details banks don’t want to have to deal with like whether the note holder is on active military duty in a foreign land, whether the homeowner has been actively trying to sell the home as a short sale, whether the note could begin a trial HAMP period, whether the note would qualify for HAFA, other extenuating circumstances, etc. To add to the challenge is the large volume of foreclosures that they must be start and complete in a timely manner. Conclusion: So rather than take the time to generate the correct documentation, the banks cut corners. The probabilities that someone would find out are small, it would require for you and I to prove them wrong that the information being filed in court is incorrect.
This is a serious problem that we all need to be aware of, Banks sometimes don't know which properties they can foreclose on. For example, there has been reported cases of banks who have foreclosed on homes bought with cash and two banks have tried to foreclose on the same property. And so on. So when you are faced with a potential foreclosure, you must request that they produce the note and have your legal counselor help you review the details of it to protect you from a potential wrongfully filed bankruptcy. This problem of foreclosure bad documents have been turning up for years. So why is robosigning practice only coming to light now? the main reason is the volume of them filed in the last couple of years and most people facing foreclosure don't have attorneys to check the documents. Sadly enough, most homeowners don't even contest the foreclosure and banks are counting on this. You as the homeowner need to understand that in bankruptcy a bank has to prove it has the right to foreclose. It has to produce the necessary documents. Not all debtors in bankruptcy have attorneys, and not all those attorneys know what to look for.
Banks must remember that scorned customers will have a very long memory. Consumers have numerous options for their banking needs these days. Also, consumers are in need of the services offered by the banks in some form or another—checking, savings, car loans, home equity loans, mortgages, etc.—for nearly all their adult lives. This is a long-term marriage that can amount to 50-70 years. Why would banks want to alienate customers with that kind of longevity potential? Lots of bad media on these companies who were signing through thousands of foreclosure cases every week with little to no fact-checking. In many cases, these mega banks have been unable to prove they even still held the mortgages (oops). If you are facing a potential foreclosure ask the banks to prove it!
Saturday, May 28, 2011
Sunday, May 8, 2011
How Avoid Get Rich Quick Schemes?
It is amazing that today we still have people falling victims of real estate and other Internet scams. Just in March of 2011 a con artist man who ran a defunct get-rich scheme agreed to settle a court order by paying the Federal Trade Commission $900,000 and surrendering the proceeds from the sale of his house and most of his personal property. Mr. John Stefanchik was found guilty of blatantly false claims that his "wealth building" (know as the "Stefanchik Program") program would teach consumers how to quickly make serious money by buying and selling mortgages. These get rich quick program sold them consumers the idea that they could earn huge amounts of money in their spare time, upwards of $10,000 every 30 days, if they purchased the Stefanchik program; instead most customers failed to earn a dime. Victims typically paid $5,000 to $8,000 for the worthless program, but only Stefanchik and his cronies got rich.
It is truly incredible that in today's environment this type of scams still happens. The sponsors of these schemes usually profit from selling the opportunity than from the opportunity itself. A get-rich-quick scheme is any project or method that promises a high amount of return for a relatively small investment. These get-rich-quick schemes also promise that these high returns will come with a minimum amount of risk or work. Something that most people seem to forget is that return is a function of risk which would make all the get-rich-quick schemes too good to be true. That should be the first alarm when one of this scams are presented to us. Another point to remember is that these scams have a low percentage of success stories relative to the number of participants. They will blast their websites with testimonials, showing their big checks they have made. However, what is their percentage of success when calculated over the total of participants in the program.
Due to the public scrutiny, most of the illegal programs have to chose underground methods to promote their programs, such as cold calling and spam emails. The reason is that the public scrutiny placed upon the traditional media channels, makes it difficult for illegitimate enterprises to prosper for long periods without being exposed. The illegitimate enterprises tend to use emotional triggers and confidence building to motivate participation. They often place emphasis on the exclusivity of the opportunity to make it more attractive.
Here are a couple of tips you can use to prevent falling victim of scams:
1. Surround yourself with good, wise people who can advice you well and then listen to them.
2. Become aware of your strong desires and their influence over your thinking.
3. Write down your decision and the reasons for it, then put it away for 24 hours and come back to it and check it.
4. Do not give in to impulsiveness.
5. Wait for a decision until your spirit is calm and your mind is clear.
6. Never violate your conscience.
7. Never do something if financial gain is the only reason that you are doing it.
8. When in doubt - don't. Trust your instincts when they tell you to pause and think it over.
9. Avoid manipulative people and high pressure situations.
10. Check the numbers and the fine prints before signing anything.
11. Stay in control, do not let others control your decision making.
12. Know the difference between character and personality and have a healthy distrust of "Charming People".
13. Know the difference between opinions, facts and projections.
14. Carefully look at all aspects of the opportunities - Strengths, Weaknesses, Opportunities, and Threats (SWOT)
15. Do not let pride and ego fashion your decision.
16. If it seems rash and risky it probably is. Ask Who gains and how?
17. Do not make major decisions without a moment of meditation.
18. Never make a decision when you feel harassed or stressed, tired or hungry.
19. If you have to rationalize the decision and manufacture excuses why you have to do it, then you are probably trying to do something that your better self knows that is dubious or wrong and it is trying to warn you.
I have provided to you 19 tips that will help you prevent potential mistakes in your business decision making. This list is not all inclusive and there are other steps you can take to prevent being a victim of a scam artist. The best thing to do is to take a moment and analyze the opportunity before rushing into a decision. One of the best tools that a scam artist has is to pressure into an immediate decision because they know if they let you go to think the chances are that you will discover their scheme.
It is truly incredible that in today's environment this type of scams still happens. The sponsors of these schemes usually profit from selling the opportunity than from the opportunity itself. A get-rich-quick scheme is any project or method that promises a high amount of return for a relatively small investment. These get-rich-quick schemes also promise that these high returns will come with a minimum amount of risk or work. Something that most people seem to forget is that return is a function of risk which would make all the get-rich-quick schemes too good to be true. That should be the first alarm when one of this scams are presented to us. Another point to remember is that these scams have a low percentage of success stories relative to the number of participants. They will blast their websites with testimonials, showing their big checks they have made. However, what is their percentage of success when calculated over the total of participants in the program.
Due to the public scrutiny, most of the illegal programs have to chose underground methods to promote their programs, such as cold calling and spam emails. The reason is that the public scrutiny placed upon the traditional media channels, makes it difficult for illegitimate enterprises to prosper for long periods without being exposed. The illegitimate enterprises tend to use emotional triggers and confidence building to motivate participation. They often place emphasis on the exclusivity of the opportunity to make it more attractive.
Here are a couple of tips you can use to prevent falling victim of scams:
1. Surround yourself with good, wise people who can advice you well and then listen to them.
2. Become aware of your strong desires and their influence over your thinking.
3. Write down your decision and the reasons for it, then put it away for 24 hours and come back to it and check it.
4. Do not give in to impulsiveness.
5. Wait for a decision until your spirit is calm and your mind is clear.
6. Never violate your conscience.
7. Never do something if financial gain is the only reason that you are doing it.
8. When in doubt - don't. Trust your instincts when they tell you to pause and think it over.
9. Avoid manipulative people and high pressure situations.
10. Check the numbers and the fine prints before signing anything.
11. Stay in control, do not let others control your decision making.
12. Know the difference between character and personality and have a healthy distrust of "Charming People".
13. Know the difference between opinions, facts and projections.
14. Carefully look at all aspects of the opportunities - Strengths, Weaknesses, Opportunities, and Threats (SWOT)
15. Do not let pride and ego fashion your decision.
16. If it seems rash and risky it probably is. Ask Who gains and how?
17. Do not make major decisions without a moment of meditation.
18. Never make a decision when you feel harassed or stressed, tired or hungry.
19. If you have to rationalize the decision and manufacture excuses why you have to do it, then you are probably trying to do something that your better self knows that is dubious or wrong and it is trying to warn you.
I have provided to you 19 tips that will help you prevent potential mistakes in your business decision making. This list is not all inclusive and there are other steps you can take to prevent being a victim of a scam artist. The best thing to do is to take a moment and analyze the opportunity before rushing into a decision. One of the best tools that a scam artist has is to pressure into an immediate decision because they know if they let you go to think the chances are that you will discover their scheme.
Friday, April 29, 2011
The Chinese Drywall Problem
During the housing boom, drywall, which is gypsum pressed between paper and used in walls and ceilings, was imported from China to fill a domestic shortage. A growing number of homeowners — there have been more than 3,810 reports in 42 states and other areas — complain that it generates sulfurous odors and corrosion that tarnishes metals and causes appliances such as air conditioners to fail. The government recommends consumers remove any possibly faulty drywall. Although no study has yet linked the drywall to specific health problems, homeowners have complained of respiratory issues and headaches. A 2010 report from the Consumer Product Safety Commission identified several brands of Chinese-made “problem drywall” and said that some Chinese-made samples emitted hydrogen sulfide at a rate 100 times greater than non-Chinese drywall boards.
So far, Florida is ground zero. Up to 1,000 homes in the southern part of the state may be affected, says Jack Snider, president of American Management Resources Corp. (AMRC). Working for homeowners and builders, the environmental consulting firm has tested drywall for gases and checked homes for odors and corrosion. AMRC first began investigating odor complaints in 2004 and found drywall to be the cause. Because most drywall doesn't identify its origin, Snyder says, it took until 2006 before foreign-made drywall became the focus. Based on import records, he estimates that up to 60,000 U.S. homes may be affected, with about half in Florida.
This is not a new issue here in Florida. This issue started showing up around 2004 and it does not stop. This problem can continue to spread throughout the United States as more homes will become inspected for this problem. Are these drywalls from China a real problem for our health? The more I read about it, the more I come to believe that it is problem. I think that the behavior of this product can be affected by the local weather of each state, so the results of Florida may not be experienced in Montana. However, it warrants that this issue be seriously investigated. Chinese drywall is typically mixed in with untainted drywall, which is why people should not assume that their home is fine if they find U.S. drywall. Moreover, U.S. drywall may have been manufactured in China and rebranded.
As builders were looking for more ways to address the housing demand, increased material costs, and demand from shareholders for higher returns may have driven these companies to select products of questionable standards. Now the question I have is, where else were housing safety standards sacrificed?
Here are some Chinese Drywall facts that you may find interesting:
* 20 mil sq. ft. of Chinese drywall entered the U.S. since 2001
* More than 65,000 American homes could be affected
* Emits harmful sulfur gases
* Corrodes copper wiring
* Contaminates furnishings & fabrics
* Damages air conditioners and appliances
* The presence of Chinese drywall has been reported in 42 states, the District of Columbia and Puerto Rico.
So far, Florida is ground zero. Up to 1,000 homes in the southern part of the state may be affected, says Jack Snider, president of American Management Resources Corp. (AMRC). Working for homeowners and builders, the environmental consulting firm has tested drywall for gases and checked homes for odors and corrosion. AMRC first began investigating odor complaints in 2004 and found drywall to be the cause. Because most drywall doesn't identify its origin, Snyder says, it took until 2006 before foreign-made drywall became the focus. Based on import records, he estimates that up to 60,000 U.S. homes may be affected, with about half in Florida.
This is not a new issue here in Florida. This issue started showing up around 2004 and it does not stop. This problem can continue to spread throughout the United States as more homes will become inspected for this problem. Are these drywalls from China a real problem for our health? The more I read about it, the more I come to believe that it is problem. I think that the behavior of this product can be affected by the local weather of each state, so the results of Florida may not be experienced in Montana. However, it warrants that this issue be seriously investigated. Chinese drywall is typically mixed in with untainted drywall, which is why people should not assume that their home is fine if they find U.S. drywall. Moreover, U.S. drywall may have been manufactured in China and rebranded.
As builders were looking for more ways to address the housing demand, increased material costs, and demand from shareholders for higher returns may have driven these companies to select products of questionable standards. Now the question I have is, where else were housing safety standards sacrificed?
Here are some Chinese Drywall facts that you may find interesting:
* 20 mil sq. ft. of Chinese drywall entered the U.S. since 2001
* More than 65,000 American homes could be affected
* Emits harmful sulfur gases
* Corrodes copper wiring
* Contaminates furnishings & fabrics
* Damages air conditioners and appliances
* The presence of Chinese drywall has been reported in 42 states, the District of Columbia and Puerto Rico.
Saturday, April 23, 2011
Proper Valuation of Your Green House
The value of green is many times lost in appraisals. Pitfalls are all over, but there are steps you can take make sure that they are taken into consideration in your appraisals. Green is something that is catching on in the United States and it should be something you should include in your marketing of your properties and be included in your appraisals. More buyers are interested in the green movement and want properties that are energy, water efficient. Unfortunately the lending community and appraisers seem to be behind on this concept and are not properly giving value to the investments made to make homes environmentally friendly.
It is the responsibility of the builders and real estate agents to insist that the lenders assign an appraiser that is trained in green construction. However, since real estate agents and builders are under the pressure of not influencing the appraisers decision on the value of the property, it falls on the borrower to insist on this requirement. Which it makes no sense since the borrower would prefer that those value be omitted to obtain a lower valuation of the property. This is a dilemma that needs to be addressed an insist from the lending and appraisal industry to take note and recognize the value of the efforts made to make homes that are ecologically friendly. It is imperative that the we obtain competent appraisers for this type of properties. I should be a requirement that homes with green features do have an properly trained appraiser that can recognize the value of them and properly value them. This can be accomplished without influencing the professional opinion of the appraiser.
When it comes to valuations, green is like any other feature in your property. Here are some suggestions on how to set your green home apart:
1. A rating from a recognized agency that shows how your green home stacks up against the same model built to minimally acceptable construction standards in energy efficiency.
2. A breakdown of the additional construction costs of green and energy efficient items.
3. Blueprints and detailed product specifications of the items that set your house apart from the rest.
4. A list of incentives, including tax breaks to the builder for green construction or the rebates to the buyer from the local power company, local, state or federal government.
5. A chart comparing green features with those in code-built houses.
It is the responsibility of the builders and real estate agents to insist that the lenders assign an appraiser that is trained in green construction. However, since real estate agents and builders are under the pressure of not influencing the appraisers decision on the value of the property, it falls on the borrower to insist on this requirement. Which it makes no sense since the borrower would prefer that those value be omitted to obtain a lower valuation of the property. This is a dilemma that needs to be addressed an insist from the lending and appraisal industry to take note and recognize the value of the efforts made to make homes that are ecologically friendly. It is imperative that the we obtain competent appraisers for this type of properties. I should be a requirement that homes with green features do have an properly trained appraiser that can recognize the value of them and properly value them. This can be accomplished without influencing the professional opinion of the appraiser.
When it comes to valuations, green is like any other feature in your property. Here are some suggestions on how to set your green home apart:
1. A rating from a recognized agency that shows how your green home stacks up against the same model built to minimally acceptable construction standards in energy efficiency.
2. A breakdown of the additional construction costs of green and energy efficient items.
3. Blueprints and detailed product specifications of the items that set your house apart from the rest.
4. A list of incentives, including tax breaks to the builder for green construction or the rebates to the buyer from the local power company, local, state or federal government.
5. A chart comparing green features with those in code-built houses.
How Will The Federal Budget Cut Impact You?
Here I will provide you a summary of how the budget cut will impact the various sectors of our lives. This will go beyond real estate, since our lives are affected by more than the news on the real estate market. Many of the cuts won't be felt by the public, others could pinch local government and low-income families.
1. Defense - No budget cut. Instead it received an increase of $5 billion from 2010. This brings the total amount to $513 billion.
2. Homeland Security - Received it first budget cut since its inception. Local government will receive the heavier burden, which reduces federal FEMA grants for first responders by $786 million and it cuts $226 million for border security fencing, infrastructure and technology.
3. Housing - Budget cut of approximately $1.4 billion from two HUD block grants used to rehabilitate housing primarily in low income neighborhoods and a fund that local public housing authority can tap to maintain and make repairs to housing units.
4. EPA - Budget cut of $1.6 billion, which represent a 16% reduction from 2010. There are concerns on how this agency will be able to pollution from mountaintop coal mining and mercury emissions from power plants.
5. State and Local Law Enforcement - approximately $700 million budget cut from the assistance program and a program to help develop crime fighting strategies and pay for technology.
6. Transportation - Approximately $6 billion dollars in budget cuts. Primarily the cuts are focused on highway projects and high speed rails. We need to see how this budget cuts in infrastructure could affect the competitiveness of the United States.
7. Nutrition - $504 million budget cut from the WIC program which provides healthy food and nutritional information to pregnant women and children younger than 5.
8. College Loans - Approximately $3.5 billion annually over the next 10 years. Eventhough the Pell grant was kept intact, on a compromise the summer grant was eliminated for those students that wish to attend year-round.
1. Defense - No budget cut. Instead it received an increase of $5 billion from 2010. This brings the total amount to $513 billion.
2. Homeland Security - Received it first budget cut since its inception. Local government will receive the heavier burden, which reduces federal FEMA grants for first responders by $786 million and it cuts $226 million for border security fencing, infrastructure and technology.
3. Housing - Budget cut of approximately $1.4 billion from two HUD block grants used to rehabilitate housing primarily in low income neighborhoods and a fund that local public housing authority can tap to maintain and make repairs to housing units.
4. EPA - Budget cut of $1.6 billion, which represent a 16% reduction from 2010. There are concerns on how this agency will be able to pollution from mountaintop coal mining and mercury emissions from power plants.
5. State and Local Law Enforcement - approximately $700 million budget cut from the assistance program and a program to help develop crime fighting strategies and pay for technology.
6. Transportation - Approximately $6 billion dollars in budget cuts. Primarily the cuts are focused on highway projects and high speed rails. We need to see how this budget cuts in infrastructure could affect the competitiveness of the United States.
7. Nutrition - $504 million budget cut from the WIC program which provides healthy food and nutritional information to pregnant women and children younger than 5.
8. College Loans - Approximately $3.5 billion annually over the next 10 years. Eventhough the Pell grant was kept intact, on a compromise the summer grant was eliminated for those students that wish to attend year-round.
Saturday, April 16, 2011
Real Estate Funds Are Defying Housing Market
While the media continues to fill the real estate news with grim data about decreased home sales and increased foreclosure rates in recent months, real estate funds, which typically invest in commercial property and multifamily housing, have soared. Based on Lipper, the 251 domestic real estate funds that it tracks have returned 55.7 percent over the past two years. Now compare that with 31.2 percent for diversified equity funds. Another research company, Morningstar, reported that real estate funds returned 6.1 percent in the first quarter of 2011, compared with a 5.1 percent average gain for all stock funds.
Before we start making conclusions and comments about this, we need to understand that these real estate funds have been able to outperform the average general equity fund at least in part because they did so much worse in the most severe part of the downturn. Commercial real estate for the most part hit the hardest during the heart of the financial crisis. On average commercial real estate investments lost two-thirds of their value in less than six months and some real estate funds ended 2008 with losses of more than 50 percent. What I want us to focus from this is that even on a down market there is opportunities. The managers of these funds did not give up, they reinvented themselves and went back into the market and now they are providing returns that surpass anybodies expectations. While most people are home scared of the real estate market, suffering of paralysis; these funds analyzed the situation and took action.
Here are two of these real estate funds;
1. Alpine Realty Income and Growth fund, which returned 9.24 percent in the quarter, making it the top-performing real estate fund among those tracked by Lipper.
2. Ivy Real Estate Securities returned 5.7 percent in the first quarter after a 28 percent gain in 2010.
Like any real estate investment, you must proceed with caution and seek professional help.
Before we start making conclusions and comments about this, we need to understand that these real estate funds have been able to outperform the average general equity fund at least in part because they did so much worse in the most severe part of the downturn. Commercial real estate for the most part hit the hardest during the heart of the financial crisis. On average commercial real estate investments lost two-thirds of their value in less than six months and some real estate funds ended 2008 with losses of more than 50 percent. What I want us to focus from this is that even on a down market there is opportunities. The managers of these funds did not give up, they reinvented themselves and went back into the market and now they are providing returns that surpass anybodies expectations. While most people are home scared of the real estate market, suffering of paralysis; these funds analyzed the situation and took action.
Here are two of these real estate funds;
1. Alpine Realty Income and Growth fund, which returned 9.24 percent in the quarter, making it the top-performing real estate fund among those tracked by Lipper.
2. Ivy Real Estate Securities returned 5.7 percent in the first quarter after a 28 percent gain in 2010.
Like any real estate investment, you must proceed with caution and seek professional help.
Tax Tips for Real Estate Investors
We are almost approaching the deadline of April 18th for the filing our tax returns. One of the important aspects of real estate investing is tax planning. Today I want to share with you some tax tips to help you minimize the tax bite.
1. Interest: This is often the largest deduction taken.
2. Depreciation: Not fully deductible the first year.
3. Repairs: Fully deductible so keep a running list of all repairs made.
4. Local Travel: Yes you can claim your travel to the property, even gas!
5. Long distance travel: If you own an out of area property hotels etc are allowed.
6. Home office: Offices must meet a minimum requirement but can be deducted.
7. Employees and Independent contractors: Anyone you hire to do work on the home.
8. Casualty and theft losses: Losses such as fire and flood are usually taken into account after Insurance.
9. Insurance: Premiums are deductible.
10. Legal and Professional Services: You can deduct your CPA fees incurred for rental property.
Tax planning is an aspect of your business that cannot be ignored and should not be trusted on inexperienced hands. Would you trust your local butcher with a open heart surgery? It is important that real estate investors seek professionals with experience in real estate taxation to assist them with their tax planning. Many times people fail in real estate investing, not because their ideas were bad but because poor tax planning.
1. Interest: This is often the largest deduction taken.
2. Depreciation: Not fully deductible the first year.
3. Repairs: Fully deductible so keep a running list of all repairs made.
4. Local Travel: Yes you can claim your travel to the property, even gas!
5. Long distance travel: If you own an out of area property hotels etc are allowed.
6. Home office: Offices must meet a minimum requirement but can be deducted.
7. Employees and Independent contractors: Anyone you hire to do work on the home.
8. Casualty and theft losses: Losses such as fire and flood are usually taken into account after Insurance.
9. Insurance: Premiums are deductible.
10. Legal and Professional Services: You can deduct your CPA fees incurred for rental property.
Tax planning is an aspect of your business that cannot be ignored and should not be trusted on inexperienced hands. Would you trust your local butcher with a open heart surgery? It is important that real estate investors seek professionals with experience in real estate taxation to assist them with their tax planning. Many times people fail in real estate investing, not because their ideas were bad but because poor tax planning.
Saturday, April 9, 2011
Force Ten Investments Investigated
Ft Lauderdale company Force Ten Investments aka Nationwide Short Sale Services and Ameriscott Mortgage is under investigation for alleged misrepresentations and deceptive practices regarding real estate short sale services.
This trend continues nationwide as many families do not understand the consequences of short sales and many times are manipulated by unscrupulous business people. Specially on this economy, where families are struggling with paying their mortgages, saving a home, keeping or seeking a job, or keeping a family under a roof, these thugs come to take advantage of them to have only a personal gain. Real estate professionals have the obligation to educate homeowners of the consequences of short sales and compare this option with other alternatives. We must provide to our clients what is best for them and not what is best for our wallets. It is sad that unethical behavior continue to taint the real estate industry with this type of behavior.
Contact your local DA's office and report all unethical acts. This is the only way to stop these people from continuing causing harm to unaware families.
This trend continues nationwide as many families do not understand the consequences of short sales and many times are manipulated by unscrupulous business people. Specially on this economy, where families are struggling with paying their mortgages, saving a home, keeping or seeking a job, or keeping a family under a roof, these thugs come to take advantage of them to have only a personal gain. Real estate professionals have the obligation to educate homeowners of the consequences of short sales and compare this option with other alternatives. We must provide to our clients what is best for them and not what is best for our wallets. It is sad that unethical behavior continue to taint the real estate industry with this type of behavior.
Contact your local DA's office and report all unethical acts. This is the only way to stop these people from continuing causing harm to unaware families.
Tuesday, March 29, 2011
How To Achieve Success in Business?
I think this is one of the most sought-after goal in our present society. We all entrepreneurs want to have successful businesses. Whether you want to be promoted into high paying management positions, or wish to start your own real estate investment enterprise, you must gain specialized knowledge of the business world. Over the years what I have discovered is that success is within each of us. It is in your attitude towards challenges in our lives; how do you solve those challenges? For example, successful people create an aura of success around them. They dress that way and they speak constantly about their success; even though it has not materialized yet. Therefore, even if you're not in a high-income bracket, act as though you have already achieved it; of course without being egotistical or overspending.
Another aspect of successful business people is their constant search for wisdom. Develop an expertise in an area. Go beyond the basics, learn all you can about your industry/product/service you are offering. Gain from your strengths and develop your weaknesses into assets. Do not waste time in focusing on your weaknesses and feeling bad about them; focus on how can you improve and become better.
Another aspect is commitment. Many businesses and business people fail not because their business ideas are bad, they fail because of a lack of commitment to their ideas/goals. Success takes sacrifice, you do not gain something for nothing. The current misconception of the "Lazy Way to Success" does not work. It is one of the main reason people fail in business and one the main reasons we faced the recent financial and housing recession. People did not want to work for success, they did not want to think; they wanted everything digested for them. Stay focused on your goals regardless of the physical effort involved, you must mentally be engrossed in your business.
Finally, you don't need to conform to everyone else, specially if they are unsuccessful. Be unique, different, capitalize on your own self-image. Above all, use your integrity. If what you are pursuing is not a worthy goal, abort it; it wont work. If your methods lack sincerity and honesty, you will receive opposition and suffer the consequences. Do not become another of the many joker brokers in the Internet. Do not use scams in your pursuit of success. You may think that scams are a short cut to success, but it is only a mirage; it is only short lived. Because the same way you robbed someone; you will be too. It is an unbreakable law.
Another aspect of successful business people is their constant search for wisdom. Develop an expertise in an area. Go beyond the basics, learn all you can about your industry/product/service you are offering. Gain from your strengths and develop your weaknesses into assets. Do not waste time in focusing on your weaknesses and feeling bad about them; focus on how can you improve and become better.
Another aspect is commitment. Many businesses and business people fail not because their business ideas are bad, they fail because of a lack of commitment to their ideas/goals. Success takes sacrifice, you do not gain something for nothing. The current misconception of the "Lazy Way to Success" does not work. It is one of the main reason people fail in business and one the main reasons we faced the recent financial and housing recession. People did not want to work for success, they did not want to think; they wanted everything digested for them. Stay focused on your goals regardless of the physical effort involved, you must mentally be engrossed in your business.
Finally, you don't need to conform to everyone else, specially if they are unsuccessful. Be unique, different, capitalize on your own self-image. Above all, use your integrity. If what you are pursuing is not a worthy goal, abort it; it wont work. If your methods lack sincerity and honesty, you will receive opposition and suffer the consequences. Do not become another of the many joker brokers in the Internet. Do not use scams in your pursuit of success. You may think that scams are a short cut to success, but it is only a mirage; it is only short lived. Because the same way you robbed someone; you will be too. It is an unbreakable law.
Monday, March 28, 2011
9 Tips To Increase Website Visits and Sales
Internet marketing is a fact in our business. More and more of the real estate transactions today occur through the Internet. Today having a website and/or blog is not a luxury anymore. Therefore, we must do everything we can to increase our visitors into our websites. Higher traffic translates into more prospects, which in turn translates into more sales.
Here I share with you eight simple steps that you can use in your business to increase visitors into your site. The best part is that these steps are free and easy to implement. I do encourage you to learn more about Internet marketing or hire a professional to help improve your presence in the Internet.
1. Create a mailing list - you may have already heard about this. This is the most vital tool for your business and success. Your list becomes the life and blood of you real estate business. Get visitors to sign up to your mailing list. Remember that once they sign up, they become prospects for your products and services.
2. Write a newsletter - this is a great tool to establish a connection with your visitors and keep them informed about your business, properties and services. Newsletters provide added value to your visitors. Keep your newsletters in a frequent manner (weekly, monthly, bi-monthly, etc), this will create followers for your business. Make sure that your newsletter is unique and informative - focus on providing value.
3. Build your own website - if you build it, they will come! Keep your website informative and inviting, so your visitors keep coming back. Avoid heavy sales on your website. Of course you build your site to sell your properties and services, but do not make the site only to sell. Remember that the focus is on building your prospects and customers trust in you and your business. Let your website reflect your knowledge and expertise. Once this is done, sales will come.
4. Limit your sources - as you search in the Internet, you will find companies that have a solution for everything and everyone. Stay focused. You could become an expert in your field a lot easier with a "laser tight product/service line".
5. Develop a "Unique Selling Perspective" - determine why your business is unique? what does your business have that differentiate you from the rest? why should a customer buy or contract you instead of your competition?
6. Become an expert in your field - your specialized knowledge will become your selling card. Being able to talk to your peers and your customers about the industry will put you in another stratosphere. Do not limit yourself with the superficial aspects of your industry, go beyond that.
7. Do no sell products/services-sell content - this may not make sense initially, but trust me on this one. This goes along with tip #6 above. Focus on gaining trust from your readers and visitors and your products/services will sell. Put some valuable articles content in your website or blog that will be of interest to your visitors to read. For example:
- offer free downloads for visitors to read at their leisure
- get visitors to sign up for your valuable newsletters
- provide web polls, surveys and opinion polls for your visitors to share their opinions
- provide feedback forms for readers to offer suggestions
- include testimonial pages in your website
- offer free "buying/selling tips" to your followers
- offer weekly promotions
8. Automate - with today's technology this is very simple to do. Automation is the key to your business success. Load your website with your policies and procedures and FAQs. This will save you time in answering repetitive questions and will help you screen your prospects. Your website should have free downloads, property lists and prices. You should consider setting up different emails for different purposes - for example information, offers, etc.
9. Add a signature line in your email - convert your emails as another marketing method. For example:
Thank you,
[Your Name]
Phone: XXXX
Fax: XXXX
Email: XXXX
Website: XXXX
-----------------------
Promotion Section
-----------------------
Promotion Section
I hope these tips help you improve your customer retention and increase visits to your website and increase in revenues.
Here I share with you eight simple steps that you can use in your business to increase visitors into your site. The best part is that these steps are free and easy to implement. I do encourage you to learn more about Internet marketing or hire a professional to help improve your presence in the Internet.
1. Create a mailing list - you may have already heard about this. This is the most vital tool for your business and success. Your list becomes the life and blood of you real estate business. Get visitors to sign up to your mailing list. Remember that once they sign up, they become prospects for your products and services.
2. Write a newsletter - this is a great tool to establish a connection with your visitors and keep them informed about your business, properties and services. Newsletters provide added value to your visitors. Keep your newsletters in a frequent manner (weekly, monthly, bi-monthly, etc), this will create followers for your business. Make sure that your newsletter is unique and informative - focus on providing value.
3. Build your own website - if you build it, they will come! Keep your website informative and inviting, so your visitors keep coming back. Avoid heavy sales on your website. Of course you build your site to sell your properties and services, but do not make the site only to sell. Remember that the focus is on building your prospects and customers trust in you and your business. Let your website reflect your knowledge and expertise. Once this is done, sales will come.
4. Limit your sources - as you search in the Internet, you will find companies that have a solution for everything and everyone. Stay focused. You could become an expert in your field a lot easier with a "laser tight product/service line".
5. Develop a "Unique Selling Perspective" - determine why your business is unique? what does your business have that differentiate you from the rest? why should a customer buy or contract you instead of your competition?
6. Become an expert in your field - your specialized knowledge will become your selling card. Being able to talk to your peers and your customers about the industry will put you in another stratosphere. Do not limit yourself with the superficial aspects of your industry, go beyond that.
7. Do no sell products/services-sell content - this may not make sense initially, but trust me on this one. This goes along with tip #6 above. Focus on gaining trust from your readers and visitors and your products/services will sell. Put some valuable articles content in your website or blog that will be of interest to your visitors to read. For example:
- offer free downloads for visitors to read at their leisure
- get visitors to sign up for your valuable newsletters
- provide web polls, surveys and opinion polls for your visitors to share their opinions
- provide feedback forms for readers to offer suggestions
- include testimonial pages in your website
- offer free "buying/selling tips" to your followers
- offer weekly promotions
8. Automate - with today's technology this is very simple to do. Automation is the key to your business success. Load your website with your policies and procedures and FAQs. This will save you time in answering repetitive questions and will help you screen your prospects. Your website should have free downloads, property lists and prices. You should consider setting up different emails for different purposes - for example information, offers, etc.
9. Add a signature line in your email - convert your emails as another marketing method. For example:
Thank you,
[Your Name]
Phone: XXXX
Fax: XXXX
Email: XXXX
Website: XXXX
-----------------------
Promotion Section
-----------------------
Promotion Section
I hope these tips help you improve your customer retention and increase visits to your website and increase in revenues.
Wednesday, March 23, 2011
Investing in Real Estate in This Market; Are You Crazy?
Investing in this real estate market is for the brave. Books will be written about those of us that invested in the real estate recession of 2008 - 2011. You must be truly prepared to make it through this market; If you blink you lose. You must have research well done and all your documents in order. When I talk to people about investing in real estate now, the reaction I usually get is "Are you crazy?". Real estate investing in today's market conditions may seem like an impossibility, an action that only those who have lost a sense of the thinking faculties would even consider. I do not blame them, especially when there are so many "professional opinions" out there scaring everyone about how horrible the situation is.
Continuing talking about how "horrible" is not going to make the situation better. As we continue to talk about how bad the situation is, we focus on the bad and discard the good. Our attention has been on the bad, how bad the situation is, if mortgage rates are up or down, new construction data, etc. I am not saying that this information has no value for us as investor, but it should not be all we use to gage our investment decisions. There is data that does not make it to the national data bank, local data that is missed. We need to look beyond the data offered by the news media and focus on the good; the opportunity. You will find what you are looking for.
Regardless of the conditions of the real estate market in your area, there are still some important rules to follow, especially when you consider that the last few years have seen an economic recession which has led to a housing crash and a complete change in the mortgage industry. We should not ignore the current situation, the rules of the game has in fact changed. Only those who can see beyond the bad news, will succeed.
The current market is not one for quick flips, as we saw in the early part of the 2000's. If you are going to invest in this market, you must analyze how long can you wait to see your return on your investment. You must consider a potential valuation loss and higher vacancy rates (for those considering in renting their properties) in your financial calculations to determine beforehand if you can sustain the long run. Today's environment requires new strategies; new vision.
It may seem idiotic to buy a house in a depressed market, however as I have mentioned in many occasions "gains in investing are made in the purchase, not in the sale". If you can position your real estate portfolio now at bottom prices and sustain the ride, you are bound for real estate wealth.
Continuing talking about how "horrible" is not going to make the situation better. As we continue to talk about how bad the situation is, we focus on the bad and discard the good. Our attention has been on the bad, how bad the situation is, if mortgage rates are up or down, new construction data, etc. I am not saying that this information has no value for us as investor, but it should not be all we use to gage our investment decisions. There is data that does not make it to the national data bank, local data that is missed. We need to look beyond the data offered by the news media and focus on the good; the opportunity. You will find what you are looking for.
Regardless of the conditions of the real estate market in your area, there are still some important rules to follow, especially when you consider that the last few years have seen an economic recession which has led to a housing crash and a complete change in the mortgage industry. We should not ignore the current situation, the rules of the game has in fact changed. Only those who can see beyond the bad news, will succeed.
The current market is not one for quick flips, as we saw in the early part of the 2000's. If you are going to invest in this market, you must analyze how long can you wait to see your return on your investment. You must consider a potential valuation loss and higher vacancy rates (for those considering in renting their properties) in your financial calculations to determine beforehand if you can sustain the long run. Today's environment requires new strategies; new vision.
It may seem idiotic to buy a house in a depressed market, however as I have mentioned in many occasions "gains in investing are made in the purchase, not in the sale". If you can position your real estate portfolio now at bottom prices and sustain the ride, you are bound for real estate wealth.
Saturday, March 19, 2011
Your Business Plan; The Key to Your Long-Term Success
A business plan is the foundation of any business. It establishes in writing the goals of any new or established business. It surprises me how many real estate investing companies think of going seeking investments for their ventures without a properly structured business plan. A business plan has primarily two functions; one is your business resume to potential investors in your real estate ventures and two it is a strong management tool. As an business resume it is your best presentation in raising capital; it tells your potential investors that your business is “investor ready”. As an internal management tool; it provides you with a written report of the vision of your business. You must focus on exactly what you are trying to achieve, where you want to go with your business idea, and how you plan to get there.
A business plan is a powerful internal management tool. During the preparation of it forces you to visualize your business five years down the road. It will force you to detail the many expenses involved to open your business, the projected sales and monthly expenses of actual operation, and the volume of business you will need to generate to meet your obligations. It will help you think about your real estate business and your strategies.
The business plan to be effective it must be professionally prepared to meet the needs of potential investors or internal use. For external use, the potential investor should be able to see your own project through the investor's eye and must be able to answer all the concerns of a potential contributor. If you are writing the business plan for internal use, the business plan must explain and illustrate your vision for the business. Therefore, to be able to prepare your business plan you must have a clear solid vision of what your business is going to be. It must convince not only you but others that your business idea is sitting on solid foundations and will be successful. Your business plan needs to tell others that you alone possess the expertise needed or collectively which will ensure that your real estate venture it will be both successful and profitable.
Your business plan is your key to the long-term success of your real estate business. It is the foundation of your business. No businesses are the same, just as no plans are the same. If you are having trouble writing the plan yourself, I am offering a special for the readers of this blog Real Estate business plans for only $500. Those who have subscribed to our mailing list receive a 10% discount. Here is what you will receive:
1. Professional business plans of 24-36 pages.
2. You will receive your business plans between 7-10 days.
3. FREE text edits/revisions for one full month from the date of delivery. After 30 days for a reasonable fee your business plan can be revised as needed.
4. You will receive your business plan via US postal service. It will be professionally packaged in a binder and ready to hand to a bank or an investor with your company name on boldly printed across the front cover. Additional copies already bound may be purchased for an additional $29.95 each plus $8.95 S & H. You may also purchase the electronic version (MS WORD file attachment) of your business plan for an additional $79.95. This will allow you print as many color copies as you need for your company and perform any edits in the future.
If you need FREE advice from a professional company before you get started, we strongly suggest that you contact the retired professionals associated with S.C.O.R.E at www.score.org - the advice is FREE!
A business plan is a powerful internal management tool. During the preparation of it forces you to visualize your business five years down the road. It will force you to detail the many expenses involved to open your business, the projected sales and monthly expenses of actual operation, and the volume of business you will need to generate to meet your obligations. It will help you think about your real estate business and your strategies.
The business plan to be effective it must be professionally prepared to meet the needs of potential investors or internal use. For external use, the potential investor should be able to see your own project through the investor's eye and must be able to answer all the concerns of a potential contributor. If you are writing the business plan for internal use, the business plan must explain and illustrate your vision for the business. Therefore, to be able to prepare your business plan you must have a clear solid vision of what your business is going to be. It must convince not only you but others that your business idea is sitting on solid foundations and will be successful. Your business plan needs to tell others that you alone possess the expertise needed or collectively which will ensure that your real estate venture it will be both successful and profitable.
Your business plan is your key to the long-term success of your real estate business. It is the foundation of your business. No businesses are the same, just as no plans are the same. If you are having trouble writing the plan yourself, I am offering a special for the readers of this blog Real Estate business plans for only $500. Those who have subscribed to our mailing list receive a 10% discount. Here is what you will receive:
1. Professional business plans of 24-36 pages.
2. You will receive your business plans between 7-10 days.
3. FREE text edits/revisions for one full month from the date of delivery. After 30 days for a reasonable fee your business plan can be revised as needed.
4. You will receive your business plan via US postal service. It will be professionally packaged in a binder and ready to hand to a bank or an investor with your company name on boldly printed across the front cover. Additional copies already bound may be purchased for an additional $29.95 each plus $8.95 S & H. You may also purchase the electronic version (MS WORD file attachment) of your business plan for an additional $79.95. This will allow you print as many color copies as you need for your company and perform any edits in the future.
If you need FREE advice from a professional company before you get started, we strongly suggest that you contact the retired professionals associated with S.C.O.R.E at www.score.org - the advice is FREE!
Wednesday, March 16, 2011
How Can Business Credit Can Help Your Business Grow
Establishing your business is not easy. It is a dream of millions of people around the globe. Many never start their businesses. The main reason for the failure to launch the business can be summarized to two factors; 1) Lack of capital, and 2) Fear of losing their own money.
However, with careful planning, thought and effort, it is possible to raise some capital that can help to get the business started and it can be done through building a business credit. For short, you need to borrow against the business rather then from personal assets.
Carefully Produce a Business Plan and Structure
Setting up a business through business credit takes you in the world completely different from consumer credit. This only states that you are striving to project yourself in a business point of view. You must be able to prepare yourself for the transition it entails to ensure successful venture; from being an employee to being a business man. The more you think in the business point of view, the better it is for the business and allows growth in the future.
Maybe the hardest step in building a business credit is to convince the potential lenders that you are trying to achieve and set up a viable venture. The quality of your business plan and preparation is important. In order to set up a proper business structure, you must make sure that the prerequisites, i.e. licenses, documentations, are in place. You can use the business plan to show your lenders that you have placed a deep thought about the several elements in a business: the competition, pricing, products and the markets. If you are not sure about the business plan, you can always hire an advisor but it is critical to prepare yourself for the defense of your sales projections and the estimated costs of the start up and running.
Be an Excellent Credit Customer
There are materials that you will need before the business can become a reality and these are: the services, equipments, stocks and several other materials necessary for the business. Be on the lookout for vendors who are willing to grant you a credit though it may best to choose those companies that will be able to report your credit history to major business credit reporting agencies. Good scores in business credit are reserved for other large and stable business, but with careful and diligent business and credit practices, you can also achieve a good credit rating.
Get Hold of the Assessment for Your Credit
Preparing and doing a credit assessment is necessary before entering the business credit market. The credit assessment would determine if you are able to comply with the lender and the credit bureau's requirements. After achieving that, keep your eyes peeled for businesses that can issue credit without the need for an established business or personal credit checks or guarantees. Once you are able to transact the business with credit vendors, you will be able to use those references in order to build your credit profile with the agencies for credit report.
You can also take advantage of those retired or semi-retired businessmen. These people sometimes volunteer to help start up a business. You can build your knowledge as you start the journey to a successful business with a good standing in credit.
You can also utilize the advice they can give about pitfalls and disadvantages of starting a business to help you better prepare for the future.
However, with careful planning, thought and effort, it is possible to raise some capital that can help to get the business started and it can be done through building a business credit. For short, you need to borrow against the business rather then from personal assets.
Carefully Produce a Business Plan and Structure
Setting up a business through business credit takes you in the world completely different from consumer credit. This only states that you are striving to project yourself in a business point of view. You must be able to prepare yourself for the transition it entails to ensure successful venture; from being an employee to being a business man. The more you think in the business point of view, the better it is for the business and allows growth in the future.
Maybe the hardest step in building a business credit is to convince the potential lenders that you are trying to achieve and set up a viable venture. The quality of your business plan and preparation is important. In order to set up a proper business structure, you must make sure that the prerequisites, i.e. licenses, documentations, are in place. You can use the business plan to show your lenders that you have placed a deep thought about the several elements in a business: the competition, pricing, products and the markets. If you are not sure about the business plan, you can always hire an advisor but it is critical to prepare yourself for the defense of your sales projections and the estimated costs of the start up and running.
Be an Excellent Credit Customer
There are materials that you will need before the business can become a reality and these are: the services, equipments, stocks and several other materials necessary for the business. Be on the lookout for vendors who are willing to grant you a credit though it may best to choose those companies that will be able to report your credit history to major business credit reporting agencies. Good scores in business credit are reserved for other large and stable business, but with careful and diligent business and credit practices, you can also achieve a good credit rating.
Get Hold of the Assessment for Your Credit
Preparing and doing a credit assessment is necessary before entering the business credit market. The credit assessment would determine if you are able to comply with the lender and the credit bureau's requirements. After achieving that, keep your eyes peeled for businesses that can issue credit without the need for an established business or personal credit checks or guarantees. Once you are able to transact the business with credit vendors, you will be able to use those references in order to build your credit profile with the agencies for credit report.
You can also take advantage of those retired or semi-retired businessmen. These people sometimes volunteer to help start up a business. You can build your knowledge as you start the journey to a successful business with a good standing in credit.
You can also utilize the advice they can give about pitfalls and disadvantages of starting a business to help you better prepare for the future.
Tuesday, March 15, 2011
Hackers Release BofA Emails; Company is Hiding Foreclosure Information
Hacker group known as "Anonymous" has released e-mails of former Bank of America employees where it links the bank with hiding foreclosure information from regulators. In the emails released it also involves Balboa Insurance employee rasing questions about removing from the record documents that were sent out in error. BofA bought Balboa Insurance as part of its 2008 Countrywide Financial Corp. acquisition. However, last month the bank agreed to sell the unit to Australia’s QBE Insurance Group. The group contends the emails prove the Bank of America affiliate purposely removed information from mortgage documentation. However, BofA has repeatedly claimed that the claims are untrue, and that the referred emails are just administrative in nature and are not foreclosure related. This recent disclosure comes as Bank of America still faces the potential leak of documents by WikiLeaks by Julian Assange, who said in November that he planned to release documents about a major bank, leading to speculation that Bank of America would be the target.
Monday, March 14, 2011
N.J. property taxes increase 7% in 2010
As real estate investors we need to be aware of the impact that tax has in our business. Today I would be looking at taxes from the perspective of owning a property, aka property taxes. I will be looking today closely at New Jersey. The main reason is to bring to the light one the of states with the highest property taxes in our nation. For your information, New Jersey consistently ranks highest in the nation for property-tax burdens (now averaging $7,544 per household).
Many residents have accepted these higher property taxes in the past in return for more generous local services. However, with the current economy how long can New Jerseyans continue to bear this burden? NJ.com reports a previous Star-Ledger story published earlier this month found that last year the average property tax bill, including county and school taxes, was $7,555, a jump of more than $274 from the previous year, based on taxation figures collected by the counties and reported to the state. The same analysis found that more than 100 municipalities saw double-digit increases in local taxes, and more than half increased local levies by 5 percent or more.
Another piece of information I found interesting is that New Jerseyans contribute 11.8% of their income toward just state and local taxes each year, compared to Pennsylvanians who pay 10.2% (11th highest in the nation) and Alaskans who pay 6.4% (the lowest state and local tax burden).
Many residents have accepted these higher property taxes in the past in return for more generous local services. However, with the current economy how long can New Jerseyans continue to bear this burden? NJ.com reports a previous Star-Ledger story published earlier this month found that last year the average property tax bill, including county and school taxes, was $7,555, a jump of more than $274 from the previous year, based on taxation figures collected by the counties and reported to the state. The same analysis found that more than 100 municipalities saw double-digit increases in local taxes, and more than half increased local levies by 5 percent or more.
Another piece of information I found interesting is that New Jerseyans contribute 11.8% of their income toward just state and local taxes each year, compared to Pennsylvanians who pay 10.2% (11th highest in the nation) and Alaskans who pay 6.4% (the lowest state and local tax burden).
Friday, March 11, 2011
Top Five Real Estate Mutual Funds According Zacks
Some investors may find that investing directly into real estate properties may be more than what they can handle right now. Here I offer you an alternative, mutual funds. Mutual funds is a convenient and cost effective way to invest in real estate. Several studies have shown that real estate funds deliver better results on this count compared to precious metals.
Here I share with you 5 of the best performing real estate mutual funds over the last 12 months. The ranking is done by Zacks Rank:
Mutual Fund Zacks Rank Total Return YTD
ProFunds Real Estate UltraSector #2 Buy 5.3%
Delaware REIT A #3 Hold 3.8%
Delaware Pooled REIT Port II #3 Hold 3.8%
Rydex Real Estate A #3 Hold 3.6%
Cohen & Steers Equity Income A #1 Strong Buy 3.5%
Here I share with you 5 of the best performing real estate mutual funds over the last 12 months. The ranking is done by Zacks Rank:
Mutual Fund Zacks Rank Total Return YTD
ProFunds Real Estate UltraSector #2 Buy 5.3%
Delaware REIT A #3 Hold 3.8%
Delaware Pooled REIT Port II #3 Hold 3.8%
Rydex Real Estate A #3 Hold 3.6%
Cohen & Steers Equity Income A #1 Strong Buy 3.5%
Wednesday, March 9, 2011
The Importance of the Master-Mind Group
Those of you have followed my blog have heard me before mentioning that all real estate investor should have his/her "Master-Mind Group". This principle was borrowed from the classic book by Napoleon Hill "Think and Grow Rich". If you haven’t read this classic yet, add it to your reading list immediately. I am personally reading it right now for the 7th time. It is one of those book that you need to revisit more than once to grasp its full potential. To those that subscribe to our mailing list, I will send you a free copy.
So What Makes a Master-Mind Group? According to Mr. Hill the “Master Mind” can be defined as the "Coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose". The reason that I insist in the development of such group is that financial advantages are created by any person who surrounds himself with the advice, counsel, and personal cooperation of a group of people who are willing cooperate toward a common goal.
How to form your Master-Mind Group? If you do not have your Master Mind group, it’s time to form one right away! Here are my suggested simple steps to form your Master Mind group:
1. Read and Study Think and Grow Rich
2. Define your group's purpose - define how this group will forward your own and the other members’ real estate investing goals.
3. Set a date for your first meeting
4. Invite potential members
5. Establish regular meetings
Try it and enjoy the results of your group!
So What Makes a Master-Mind Group? According to Mr. Hill the “Master Mind” can be defined as the "Coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose". The reason that I insist in the development of such group is that financial advantages are created by any person who surrounds himself with the advice, counsel, and personal cooperation of a group of people who are willing cooperate toward a common goal.
How to form your Master-Mind Group? If you do not have your Master Mind group, it’s time to form one right away! Here are my suggested simple steps to form your Master Mind group:
1. Read and Study Think and Grow Rich
2. Define your group's purpose - define how this group will forward your own and the other members’ real estate investing goals.
3. Set a date for your first meeting
4. Invite potential members
5. Establish regular meetings
Try it and enjoy the results of your group!
Monday, March 7, 2011
Thursday, March 3, 2011
The Case for the Case-Shiller Home Price Index
Many of us have heard of the "Case-Shiller Home Price Index" in all of our reports about the housing condition. Many times is plastered all over the housing news to validate whatever scary news the media want to plant in your brain. It has gained popularity now during our recent Housing Crisis. However, it is not something new. The Standard & Poor's Case–Shiller Home Price Indices are constant-quality house price indices for the United States. There are multiple Case–Shiller home price indices: A national home price index, a 20-city composite index, a 10-city composite index, and twenty individual metro area indices. In other words the Case-Shiller Home Price Index tracks the value of single-family housing within the United States.
To give you a little history, The indices are calculated from data on repeat sales of single-family homes, an approach developed by economists Karl Case, Robert Shiller and Allan Weiss. Case developed a method for comparing repeat sales of the same homes in an effort to study home pricing trends. He was using data from house sales in Boston in the early 1980s, which was going through a housing price boom. While Case argued that such a boom was ultimately unsustainable, he had not considered it a bubble, a commonly-used term to describe similar market trends. Case sat down with Shiller, who was researching behavioral finance and economic bubbles, and together formed a repeat-sales index using home sales prices data from other cities across the country. In 1991, while Weiss was performing graduate studies under Shiller, he persuaded them to form a company, Case Shiller Weiss, to produce the index periodically with the intent of selling the information to the markets. Fiserv, an information management company, bought Case Shiller Weiss in 2002 and, together with Standard & Poor's, developed tradable indices based on the data for the markets which are now commonly called the Case–Shiller index.
What does that mean to us as real estate investors?. In today's information overload society, the Case-Schiller becomes another piece of information that sometimes creates more confusion. One of the challenges that most of the research firms encounter, Case-Schiller included, is that their research is based on data from previous periods and by the time the information is relesed many times it is useless. The Case-Shiller Home Price Index tracks sales pairings in 20 major U.S. cities. The problem is that the data is already three months old by the time it’s released to the public.
Should we ignore the Case-Shiller Home Price Index? I do not think so. I think it does have value and should be part of your arsenal of information. However, use it as is meant to be as a research data of events that already happened and not for you to over-react on the information. History teaches us a lot and we can use historical data to prevent repeating the mistakes of the past. Use your Schiller-Case data and keep your feet firm on the ground. Being in the now and on the ground will help you keep yourself real and ready to make the necessary corrections you need to achieve success.
To give you a little history, The indices are calculated from data on repeat sales of single-family homes, an approach developed by economists Karl Case, Robert Shiller and Allan Weiss. Case developed a method for comparing repeat sales of the same homes in an effort to study home pricing trends. He was using data from house sales in Boston in the early 1980s, which was going through a housing price boom. While Case argued that such a boom was ultimately unsustainable, he had not considered it a bubble, a commonly-used term to describe similar market trends. Case sat down with Shiller, who was researching behavioral finance and economic bubbles, and together formed a repeat-sales index using home sales prices data from other cities across the country. In 1991, while Weiss was performing graduate studies under Shiller, he persuaded them to form a company, Case Shiller Weiss, to produce the index periodically with the intent of selling the information to the markets. Fiserv, an information management company, bought Case Shiller Weiss in 2002 and, together with Standard & Poor's, developed tradable indices based on the data for the markets which are now commonly called the Case–Shiller index.
What does that mean to us as real estate investors?. In today's information overload society, the Case-Schiller becomes another piece of information that sometimes creates more confusion. One of the challenges that most of the research firms encounter, Case-Schiller included, is that their research is based on data from previous periods and by the time the information is relesed many times it is useless. The Case-Shiller Home Price Index tracks sales pairings in 20 major U.S. cities. The problem is that the data is already three months old by the time it’s released to the public.
Should we ignore the Case-Shiller Home Price Index? I do not think so. I think it does have value and should be part of your arsenal of information. However, use it as is meant to be as a research data of events that already happened and not for you to over-react on the information. History teaches us a lot and we can use historical data to prevent repeating the mistakes of the past. Use your Schiller-Case data and keep your feet firm on the ground. Being in the now and on the ground will help you keep yourself real and ready to make the necessary corrections you need to achieve success.
Wednesday, March 2, 2011
Bad Credit Repair
As real estate investors, we must address our credit score. Eventhough there real estate investing techniques that do not depend on your credit score, you should strive to improve it. It will make it easier to obtain credit for your real estate projects.
Building your credit after repeated interruptions is a constant headache we all want to avoid. In this article I am going to break it on down for you, since there are many sources that will take full advantage of you when the opportunity arise. If you feel bad simply because you can’t meet your bills expectations at the moment they arrive, then you are not alone. The fact is, even the best of us are struggling to meet some expectation that the system has placed on us.
We calculate weekly the amount we spend on groceries, which are constantly increasing, as well as other bills that are constantly on the rise. It seems at times it is a no win situation, but the fact is there is always a solution to most problems. The problem most times is some of us do not have the means to find those solutions. This brings forth more stress and often we feel that we are alone. If you trying to build your credit status you need to find the resources that can help you get results. The marketplace offers credit repair kits, which can lead us in the right direction to repairing credit, but the disadvantage is that many of the kits are expensive. Let’s face it, not everyone has the money to spend on commodities that claim to help us. Some of us struggle harder than others just to survive.
Life is forever changing and in order to keep up with the changes we all have to find a solution. Therefore, I am going to tell you where you can get a free credit repair kit. Your local library stores a wealth of information and it is free to the public. In most libraries that have credit repair kits, credit repair books, or debt management solution books. Anything you want at your disposal and it is all free information. The library also has copy and fax machines often, and if you notice in the credit repair guide or kit, it will have copies of the letters you can write to your creditors. Make yourself some copies and once you fill them out as instructed, you are on your way to repairing your credit. The library also has guides or kits for filing bankruptcy.
If you do not see a way out, then you may want to go this route. In most cases, you can do a Pro Bono Bankruptcy, which means you will represent yourself in the courtroom. I just wanted to let you know that if you file a Chapter 7 Bankruptcy, you will have monthly installments to make, but if you file Chapter 13 Bankruptcy then the courts wipe out all your debts. The problem is that bankruptcies remain on credit files for up to ten years or longer. If you can avoid bankruptcy do so, however it is not the end of the world if you do. I know people personally that filed bankruptcy and was able to get loans for mortgage, cars and so on. If you know what you are, doing you can do anything no matter how bad your situation is. Avoid Debt Consolidation, simply because it is means you will be paying fees and costs to others to get out of debt, which only adds up the bills. You might want to consider a Debt Counselor from a respected organization. It makes sense to check out any business first before spending money or asking for services. The BBB offers free information on organizations, businesses and corporations.
Once you have investigated the service then you will know if the people are really trying to help you. Any service that tells you they can get you out of debt in no time at all is pulling your leg. The fact is even when you pay your bills your credit will continue to list all the bad debts, it will only say after the debt listed…Resolved. Finally message while I am thinking about it. It is important to get copies of your credit reports from TransUnion, Equifax, and Experian. You can find any information you need online. Knowing your status in life is the beginning of repairing bad credit.
If you are interested in learning more about how to repair your credit, I recommend How To Improve Your Credit Score One Step at a Time. Extremely easy to read and to apply. It will be the best investment you will make towards the improvement of your credit score.
Building your credit after repeated interruptions is a constant headache we all want to avoid. In this article I am going to break it on down for you, since there are many sources that will take full advantage of you when the opportunity arise. If you feel bad simply because you can’t meet your bills expectations at the moment they arrive, then you are not alone. The fact is, even the best of us are struggling to meet some expectation that the system has placed on us.
We calculate weekly the amount we spend on groceries, which are constantly increasing, as well as other bills that are constantly on the rise. It seems at times it is a no win situation, but the fact is there is always a solution to most problems. The problem most times is some of us do not have the means to find those solutions. This brings forth more stress and often we feel that we are alone. If you trying to build your credit status you need to find the resources that can help you get results. The marketplace offers credit repair kits, which can lead us in the right direction to repairing credit, but the disadvantage is that many of the kits are expensive. Let’s face it, not everyone has the money to spend on commodities that claim to help us. Some of us struggle harder than others just to survive.
Life is forever changing and in order to keep up with the changes we all have to find a solution. Therefore, I am going to tell you where you can get a free credit repair kit. Your local library stores a wealth of information and it is free to the public. In most libraries that have credit repair kits, credit repair books, or debt management solution books. Anything you want at your disposal and it is all free information. The library also has copy and fax machines often, and if you notice in the credit repair guide or kit, it will have copies of the letters you can write to your creditors. Make yourself some copies and once you fill them out as instructed, you are on your way to repairing your credit. The library also has guides or kits for filing bankruptcy.
If you do not see a way out, then you may want to go this route. In most cases, you can do a Pro Bono Bankruptcy, which means you will represent yourself in the courtroom. I just wanted to let you know that if you file a Chapter 7 Bankruptcy, you will have monthly installments to make, but if you file Chapter 13 Bankruptcy then the courts wipe out all your debts. The problem is that bankruptcies remain on credit files for up to ten years or longer. If you can avoid bankruptcy do so, however it is not the end of the world if you do. I know people personally that filed bankruptcy and was able to get loans for mortgage, cars and so on. If you know what you are, doing you can do anything no matter how bad your situation is. Avoid Debt Consolidation, simply because it is means you will be paying fees and costs to others to get out of debt, which only adds up the bills. You might want to consider a Debt Counselor from a respected organization. It makes sense to check out any business first before spending money or asking for services. The BBB offers free information on organizations, businesses and corporations.
Once you have investigated the service then you will know if the people are really trying to help you. Any service that tells you they can get you out of debt in no time at all is pulling your leg. The fact is even when you pay your bills your credit will continue to list all the bad debts, it will only say after the debt listed…Resolved. Finally message while I am thinking about it. It is important to get copies of your credit reports from TransUnion, Equifax, and Experian. You can find any information you need online. Knowing your status in life is the beginning of repairing bad credit.
If you are interested in learning more about how to repair your credit, I recommend How To Improve Your Credit Score One Step at a Time. Extremely easy to read and to apply. It will be the best investment you will make towards the improvement of your credit score.
Tuesday, March 1, 2011
Four Tips to Achieve Success
Many of us that get into real estate investing have and will encounter many challenges throughout our professional lives. I have said before, this is not an easy profession. It is rewarding for those that follow certain simple principles and stay focused towards the achievement of success. By the grace of God, I have seen many ups and downs in my professional and personal life. My strong faith in God has kept me in the path and confident that once again we will prevail and that I will achieve higher standards and success.
Obviously our definition of success varies for each one of us. One of my favorite definitions for success comes from Earl Nightingale, “Success is the progressive realization of a worthy ideal.” Therefore, success is anyone who is realizing a worthy predetermined ideal, because that’s what he or she decided to deliberately do.
In today's market condition, it is very simple to feel down and for many to find an excuse to quit. Napoleon Hill, one of our greatest thinkers of our recent time said, "Before success comes in any man's life, he's sure to meet with much temporary defeat and, perhaps some failures. When defeat overtakes a man, the easiest and the most logical thing to do is to quit. That's exactly what the majority of men do." We are going through a rough time, however I also believe that these times will create great success stories. Many will defy the barriers ahead and succeed against all odds. Only the strong will make it.
Here I share with you four simple tips that you can implement today to make an immediate change in your lives and profession.
1. Get Over the Fear of Failure
As I mentioned before, this is one of the most dangerous behaviors that keeps most from achieving their goals and success. Fear is nothing more than a state of mind. However, it is a behavior that cripples most people. Thomas Edison was known to have failed 10,000 times before he succeeded in achieving electric light. To achieve success you must believe in yourself and the burning desire that you can achieve it.
2. Make Opportunities
Rather than wait for the opportunity to find you, you must go out and find the opportunities. George Bernard Shaw said: “People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them.” You will find that people that have reached financial success will tell you that they look for ways to seize opportunities, not wait for opportunities to come knocking on their door because it will not happen that way.
3. Set up Goals
Have you ever wondered why so many people work so hard and diligently without ever achieving anything in particular, and why others don’t seem to work hard, yet seem to get everything? They seem to be "lucky". The difference is goals. People who are successful set up goals, they know where they’re going. The opposite happens to people who are a failure, they believe that their lives are shaped by circumstances, by things that happen to them, by exterior forces out of their control. Goals are dreams with a deadline. Once you set up goals, you become like a vessel with a captain who has a clear vision as to where the vessel is going. It surprises me how many people pretend to achieve success without having clear goals. Can you imagine getting into a cruise and once the ship is in the middle of the ocean you find out it does not have a compass to determine where they are, it does not have a GPS to guide them and the captain of the ship has no idea where they are going, "where are taking by ear" or "we will see where the ship take us".
4. Think Who You Want to Be
It has been proven that our thoughts have a tremendous effect in how we perceive ourselves and other. Marcus Aurelius said: “A man’s life is what his thoughts make of it.” Dr. Norman Vincent Peale said "If you think in negative terms, you will get negative results. If you think in positive terms, you will achieve positive results.” We become what we think about, it is that simple. You have the power to change in an instant who you want to become. Your past is behind you, stop labeling you based on your past experiences.
To conclude, I would like to remind you of being thankful. In moments like this, we all must be thankful for where we are. You need to be thankful not only for your accomplishments but also your failures. I share this with you from personal experience, every adversity or failure carries with it the seed on an equal or greater benefit. Determine what can you learn from the current situation and take action. Having a grateful attitude is important. It will help you stay humble, which in turn, will help you continue striving for greater success.
Obviously our definition of success varies for each one of us. One of my favorite definitions for success comes from Earl Nightingale, “Success is the progressive realization of a worthy ideal.” Therefore, success is anyone who is realizing a worthy predetermined ideal, because that’s what he or she decided to deliberately do.
In today's market condition, it is very simple to feel down and for many to find an excuse to quit. Napoleon Hill, one of our greatest thinkers of our recent time said, "Before success comes in any man's life, he's sure to meet with much temporary defeat and, perhaps some failures. When defeat overtakes a man, the easiest and the most logical thing to do is to quit. That's exactly what the majority of men do." We are going through a rough time, however I also believe that these times will create great success stories. Many will defy the barriers ahead and succeed against all odds. Only the strong will make it.
Here I share with you four simple tips that you can implement today to make an immediate change in your lives and profession.
1. Get Over the Fear of Failure
As I mentioned before, this is one of the most dangerous behaviors that keeps most from achieving their goals and success. Fear is nothing more than a state of mind. However, it is a behavior that cripples most people. Thomas Edison was known to have failed 10,000 times before he succeeded in achieving electric light. To achieve success you must believe in yourself and the burning desire that you can achieve it.
2. Make Opportunities
Rather than wait for the opportunity to find you, you must go out and find the opportunities. George Bernard Shaw said: “People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them.” You will find that people that have reached financial success will tell you that they look for ways to seize opportunities, not wait for opportunities to come knocking on their door because it will not happen that way.
3. Set up Goals
Have you ever wondered why so many people work so hard and diligently without ever achieving anything in particular, and why others don’t seem to work hard, yet seem to get everything? They seem to be "lucky". The difference is goals. People who are successful set up goals, they know where they’re going. The opposite happens to people who are a failure, they believe that their lives are shaped by circumstances, by things that happen to them, by exterior forces out of their control. Goals are dreams with a deadline. Once you set up goals, you become like a vessel with a captain who has a clear vision as to where the vessel is going. It surprises me how many people pretend to achieve success without having clear goals. Can you imagine getting into a cruise and once the ship is in the middle of the ocean you find out it does not have a compass to determine where they are, it does not have a GPS to guide them and the captain of the ship has no idea where they are going, "where are taking by ear" or "we will see where the ship take us".
4. Think Who You Want to Be
It has been proven that our thoughts have a tremendous effect in how we perceive ourselves and other. Marcus Aurelius said: “A man’s life is what his thoughts make of it.” Dr. Norman Vincent Peale said "If you think in negative terms, you will get negative results. If you think in positive terms, you will achieve positive results.” We become what we think about, it is that simple. You have the power to change in an instant who you want to become. Your past is behind you, stop labeling you based on your past experiences.
To conclude, I would like to remind you of being thankful. In moments like this, we all must be thankful for where we are. You need to be thankful not only for your accomplishments but also your failures. I share this with you from personal experience, every adversity or failure carries with it the seed on an equal or greater benefit. Determine what can you learn from the current situation and take action. Having a grateful attitude is important. It will help you stay humble, which in turn, will help you continue striving for greater success.
Saturday, February 26, 2011
REO Inventory Increases From A Year Ago
It has been reported that as of December 31, 2010 FHA held over 60,000 properties repossessed through foreclosures. This REO portfolio has been valued at approximately $9.1 Billion. When combined with the Fannie Mae and Freddie Mac, the our government holds approximately 360,000 REO properties. When we add the REO portfolios of the rest of private lenders, the amount of properties in REO stage increase to over 1.3 million properties according to data provided by CoreLogic. However, according to Capital Economics, the amount is more like 5.3 million properties.
For the recovery of our economy is it imperative the reselling of these properties. This is an area of the industry that you should consider learning if you are not already involved in it. For those interested in learning more about how to profit from this sector of the market and provide a valuable service to many, please visit this site where you will have access to the tools you need for your success.
LEARN MORE on how you can profit from this opportunity!
For the recovery of our economy is it imperative the reselling of these properties. This is an area of the industry that you should consider learning if you are not already involved in it. For those interested in learning more about how to profit from this sector of the market and provide a valuable service to many, please visit this site where you will have access to the tools you need for your success.
LEARN MORE on how you can profit from this opportunity!
New Mexico Realtor Charged in Ponzi Scheme
Here we go again, real estate scams are abound and we must be alert. Now it has been reported that a New Mexico real estate broker was charged by a Federal Grand Jury with leading a Ponzi Scheme related to promissory notes. These promissory notes were marketed as a way of investing in his real estate business. He was running these scheme from 2005 to 2010, according to the indictment in Albuquerque. The sad news is that approximately 600 investors had money in the program when the scheme collapsed last year, as reported by prosecutors.
The real estate broker was charged with three counts of wire fraud, 17 counts of mail fraud, five counts of money laundering and four counts of false writing and documents. He faces as many as 20 years in prison on each fraud count, 10 years for each money laundering count and five years for each false writing charge.
The case is U.S. vs. Vaughan, 11-cr-404, U.S. District Court for the District of New Mexico (Albuquerque).
The real estate broker was charged with three counts of wire fraud, 17 counts of mail fraud, five counts of money laundering and four counts of false writing and documents. He faces as many as 20 years in prison on each fraud count, 10 years for each money laundering count and five years for each false writing charge.
The case is U.S. vs. Vaughan, 11-cr-404, U.S. District Court for the District of New Mexico (Albuquerque).
Friday, February 25, 2011
U.S. Pushes Mortgage Deal; Obama Proposal Seeks Multibillion-Dollar Settlement of Loan-Servicing Cases http://ow.ly/43quQ
Foreclosures Accounts for 26% of Homes Sales in 2010
Home prices are down but sales are up. During the last six months of 2010, home prices went down 6%. This sent the prices to the lowest levels in the "post bubble period" as reported on Tuesday by Case-Shiller. The next day (Wednesday) the National Association of Realtors reported that sales of existing homes increased for the third straight month. This may seem to be conflicting data. There is a simple explanation for this, 26% percent of all homes sold in 2010 were foreclosures and short sales as reported by RealtyTrac as released on Thursday.
The good news is that we do not have a double negative, where you have both sales prices and home sales down.
The good news is that we do not have a double negative, where you have both sales prices and home sales down.
Personal Time Management Tips
If you feel that you can never catch up or that you can't get everything that you need to do done, It is important that you take steps to rectify this problem. It is known that poor time management is often associated with your performance at workplace. However, your personal life can be negatively impacted as well.
For example, if you have a poor sense of time you may find that your relationship with your spouse, romantic partner, friends, or children suffers. Those who have a poor sense of time are often stressed, frustrated, and unorganized. This is likely to put a significant strain on otherwise healthy relationships.
There are some simple steps you can start today to improve your time management skills. An easy way to learn how to make better use of your time involves creating and relying on to do lists. If you have everyday tasks that have become a part of your routine, like getting your kids ready for school or going to work, you do not necessarily have to include these items on your list. With that said, other non-daily tasks should be added. These tasks may include running an errand before work, attending a child's sporting event, helping your child with an important school project, going on a date, and so forth.
Learning how to prioritize is another important component of being able to properly manage your time. It is important to remember that the day and its time is limited. If you have a family and a full time job, you may find it difficult or downright impossible to get everything done. If that is the case, be sure to prioritize. You can leave the lesser important tasks, such as dusting your house as opposed to doing laundry for later or the following day.
The use of time management tools is another easy way that you can go about making better use of your time. There are a number of tools that you can use to your advantage. A to do list was sited as an example above. Other tools that you may be able to benefit from the use of include alarm clocks and daily or weekly planners. Since most time management tools are affordable, already in your home, or free to create, you should use them to your advantage.
One of the many reasons why people end up wasting time is because they are easily distracted. If you feel this the main source of your time management problems, you will want to determine what your biggest distractions are. For example, do you spend too much time socializing with coworkers after work or with the neighbors? If so, you don’t have to completely eliminate this contact, but try to limit it. The same can be said with television and internet use.
For example, if you have a poor sense of time you may find that your relationship with your spouse, romantic partner, friends, or children suffers. Those who have a poor sense of time are often stressed, frustrated, and unorganized. This is likely to put a significant strain on otherwise healthy relationships.
There are some simple steps you can start today to improve your time management skills. An easy way to learn how to make better use of your time involves creating and relying on to do lists. If you have everyday tasks that have become a part of your routine, like getting your kids ready for school or going to work, you do not necessarily have to include these items on your list. With that said, other non-daily tasks should be added. These tasks may include running an errand before work, attending a child's sporting event, helping your child with an important school project, going on a date, and so forth.
Learning how to prioritize is another important component of being able to properly manage your time. It is important to remember that the day and its time is limited. If you have a family and a full time job, you may find it difficult or downright impossible to get everything done. If that is the case, be sure to prioritize. You can leave the lesser important tasks, such as dusting your house as opposed to doing laundry for later or the following day.
The use of time management tools is another easy way that you can go about making better use of your time. There are a number of tools that you can use to your advantage. A to do list was sited as an example above. Other tools that you may be able to benefit from the use of include alarm clocks and daily or weekly planners. Since most time management tools are affordable, already in your home, or free to create, you should use them to your advantage.
One of the many reasons why people end up wasting time is because they are easily distracted. If you feel this the main source of your time management problems, you will want to determine what your biggest distractions are. For example, do you spend too much time socializing with coworkers after work or with the neighbors? If so, you don’t have to completely eliminate this contact, but try to limit it. The same can be said with television and internet use.
Thursday, February 24, 2011
China Leads World in Real Estate Transactions With $197 Billion
For the second year in a row, China leads the world in real estate transactions. According to Capital Analytics Inc. China invested $197 Billion dollars, which represented 34% of the worldwide investments of $582 Billion. China invested 23% more in 2010 when compared to 2009. However, Larger down-payment requirements and efforts to clamp down on property speculation slowed transactions in China in the second and third quarters of 2010. Increased sales of offices, malls, warehouses, hotels, condominiums and land lifted the value of global deals to the highest since 2007’s record of $1.23 trillion. The biggest driver was the U.S., where higher prices and a pickup in investor demand helped transactions more than double to $112.5 billion.
Approximately 95% of the Chinese investments were in land deals. The largest was the purchase of a site in Nanjing for $1.78 billion. Among the biggest U.S. transactions was the $1.36 billion purchase of 111 Eighth Ave. in Manhattan by Google Inc.
Approximately 95% of the Chinese investments were in land deals. The largest was the purchase of a site in Nanjing for $1.78 billion. Among the biggest U.S. transactions was the $1.36 billion purchase of 111 Eighth Ave. in Manhattan by Google Inc.
Wednesday, February 23, 2011
Foreign Buyers Providing Some Relief to the Housing Market
Economic news around the country has certainly appeared to be dim in the last few months. The dollar is weak and many consumers find themselves still wondering whether relief is in sight. Quite surprisingly, these problems may actually provide some encouragement for foreign investors to rally the housing market.
One of the reasons that many homeowners are finding it difficult to sell their homes is the fact that many would-be buyers either cannot afford the prices or they cannot qualify for mortgage loans. As a result, they have found they have little choice but to continue to rent and wait for the housing market to stabilize before they venture into the home buying process. Some homeowners are finding interested buyers in a surprising source; however. Today, homeowners are just as likely to discover buyers hailing from abroad as from next door.
Experts speculate that investment from Europeans is likely to increase in the coming months. Many speculate that foreign investors have recognized the value in buying homes in the U.S. Prices have declined, making them far more attractive. In fact, in some cases, foreign buyers could be poised to replace the niche that first-time home buyers held before they were squeezed out of the market as a result of the recent real estate crash.
The Internet has proven to be a successful marketing tool in the past and today investors, agents and sellers have discovered it is often the easiest way to reach foreign buyers. Compared to other advertising mediums it is often far less expensive and allows them to reach a broader audience.
Keep in mind that foreign buyers may not be the full salvation that we are looking for to completely recover from the housing bust; however, they are certainly providing a bit of welcome relief in many beleaguered markets.
One of the reasons that many homeowners are finding it difficult to sell their homes is the fact that many would-be buyers either cannot afford the prices or they cannot qualify for mortgage loans. As a result, they have found they have little choice but to continue to rent and wait for the housing market to stabilize before they venture into the home buying process. Some homeowners are finding interested buyers in a surprising source; however. Today, homeowners are just as likely to discover buyers hailing from abroad as from next door.
Experts speculate that investment from Europeans is likely to increase in the coming months. Many speculate that foreign investors have recognized the value in buying homes in the U.S. Prices have declined, making them far more attractive. In fact, in some cases, foreign buyers could be poised to replace the niche that first-time home buyers held before they were squeezed out of the market as a result of the recent real estate crash.
The Internet has proven to be a successful marketing tool in the past and today investors, agents and sellers have discovered it is often the easiest way to reach foreign buyers. Compared to other advertising mediums it is often far less expensive and allows them to reach a broader audience.
Keep in mind that foreign buyers may not be the full salvation that we are looking for to completely recover from the housing bust; however, they are certainly providing a bit of welcome relief in many beleaguered markets.
Tuesday, February 22, 2011
Investing in Foreclosure Properties
Investing in foreclosures provides us as investors an opportunity to help someone who needs help as well as profit from the transaction. So where can you locate these opportunities? One obvious place is to look at foreclosure listings. These listings come from either Realtors or other private sources, thus the importance to have them in your professional team. These lists will become a great source of leads to reach to the pre-foreclosures properties. Another alternative is the industry of bank owned real estate. When properties are lost through foreclosure proceedings, these properties goes back to the bank and becomes one of the many thousands of REO properties on the market today.
To give you an idea of the potential of this industry, according to RealtyTrac, foreclosure filings hit 2.87 million U.S. homes in 2010 (in other words, one out of every 45 homes in the US). That represented an increase of 2 percent when compared to 2009. Once on these properties are in the pool of REO, you can work with a Realtor who specializes in bank owned properties and start making offers almost immediately. In reality foreclosure property investment is not difficult. What is important is that you surround yourself with a professional team who can compliment your efforts in foreclosure investing. Foreclosure investing should not be taken lightly, without the proper foreclosure training, you run the risk of not really knowing what you are doing and losing money. For those interested in learning more about investing and profiting in foreclosure properties I recommend the REO Training Kit.
Foreclosure investing is an integral part of our opportunities for investing in today’s economy and market. The key to your success will be in you having ready access to the tools you need to make sound decisions. As I have continuously suggest to the members of this blog, commit yourself to real estate training, in turn your pursuit of foreclosure investing will be more productive, profitable and more rewarding.
To give you an idea of the potential of this industry, according to RealtyTrac, foreclosure filings hit 2.87 million U.S. homes in 2010 (in other words, one out of every 45 homes in the US). That represented an increase of 2 percent when compared to 2009. Once on these properties are in the pool of REO, you can work with a Realtor who specializes in bank owned properties and start making offers almost immediately. In reality foreclosure property investment is not difficult. What is important is that you surround yourself with a professional team who can compliment your efforts in foreclosure investing. Foreclosure investing should not be taken lightly, without the proper foreclosure training, you run the risk of not really knowing what you are doing and losing money. For those interested in learning more about investing and profiting in foreclosure properties I recommend the REO Training Kit.
Foreclosure investing is an integral part of our opportunities for investing in today’s economy and market. The key to your success will be in you having ready access to the tools you need to make sound decisions. As I have continuously suggest to the members of this blog, commit yourself to real estate training, in turn your pursuit of foreclosure investing will be more productive, profitable and more rewarding.
Finance & Real Estate: Two-year-old Praxis Capital launches real estate investment fund
Over the past two years, Praxis Capital, a real estate private equity investment fund, has bought and sold more than 220 single-family homes in Northern California — all distressed properties.
The investment firm now is launching a new venture, the PCL Income and Appreciation Fund, LP. This fund, targeting select Northern California markets, will buy and hold entry level residential properties identified to generate monthly cash flow and yield future appreciation.
Learn More
The investment firm now is launching a new venture, the PCL Income and Appreciation Fund, LP. This fund, targeting select Northern California markets, will buy and hold entry level residential properties identified to generate monthly cash flow and yield future appreciation.
Learn More
Monday, February 21, 2011
California Attorney Accused of Document Alteration
The Securities and Exchange Commission (SEC) last week began administrative proceedings against California attorney David Tamman for allegedly altering real estate investment documents to cover the actual destination of the funds. Mr. Tamman is accused of altering private placement memoranda, or PPMs, used in the sale of securities issued by NewPoint Financial Services. According to the SEC allegations, funds that were supposed to go to real estate ventures, went to NewPoint's principal John Farahi in the form of loans.
Mr. Tamman is accused of adding language to the PPMs which was not disclosed in the PPMs given to investors.
Mr. Tamman is accused of adding language to the PPMs which was not disclosed in the PPMs given to investors.
Sunday, February 20, 2011
Real Estate Recovery, When?
According to many economic reports, the United States is out of recession. However, many of the aspects that we as real estate investors are concerned like jobs and borrowing, continue in the bottom of the pit. There are signs that indicate that we may see a recovery in our real estate market, recent reports have shown an increase in consumer spending, jobs are growing at a faster pace, and personal finance for many US families are starting to improve. For example, since the end of 2008 we have seen a reduction of 10% in credit card debt. The retail sector is showing signs of recovery with an increase of 4% in the clothing store sector and 2% in the restaurant sector. All of this is good news and pray that it continues on that path, we need it.
There are still signs of concern or awareness that we must pay attention. The recent decision by our government to revamp Fannie and Freddie needs to be carefully watched. The last announcement by the government on Fannie and Freddie could signal a plan to dump their foreclosures onto the market. If this is the case, it will put negative pressure on the prices of existing home. The bottom-line is that we need to be intelligent investors. We need to keep our eyes open and our eyes to the ground. We need to continue to evaluate our local markets to determine how to proceed.
The key to a true sustained recovery of our housing market is in the reduction of fear. People are not totally convinced in the fact that the United States is out of the recession. Until the job figures shows a considerable growth, when the financial institutions stop looking for free money from the taxpayers and re-investing it in low-risk government treasuries over lending it to potential buyers, the consumer fear will continue hovering over the real estate market.
If history has shown us something, is that every new high in the real estate market is higher than the one previous. We should expect a full recovery in the real estate market. We must act diligently and remember that the profits in real estate transactions are made in the purchase and not in the sale. Be alert and flexible to adjust to the new demands of the market. There is a lot of potential in the foreclosure market, then we must look into that area and learn how we can profit from that market. For those interested in learning more about how to profit from the REO industry I recommend is the BPO REO Business Kitt.
There are still signs of concern or awareness that we must pay attention. The recent decision by our government to revamp Fannie and Freddie needs to be carefully watched. The last announcement by the government on Fannie and Freddie could signal a plan to dump their foreclosures onto the market. If this is the case, it will put negative pressure on the prices of existing home. The bottom-line is that we need to be intelligent investors. We need to keep our eyes open and our eyes to the ground. We need to continue to evaluate our local markets to determine how to proceed.
The key to a true sustained recovery of our housing market is in the reduction of fear. People are not totally convinced in the fact that the United States is out of the recession. Until the job figures shows a considerable growth, when the financial institutions stop looking for free money from the taxpayers and re-investing it in low-risk government treasuries over lending it to potential buyers, the consumer fear will continue hovering over the real estate market.
If history has shown us something, is that every new high in the real estate market is higher than the one previous. We should expect a full recovery in the real estate market. We must act diligently and remember that the profits in real estate transactions are made in the purchase and not in the sale. Be alert and flexible to adjust to the new demands of the market. There is a lot of potential in the foreclosure market, then we must look into that area and learn how we can profit from that market. For those interested in learning more about how to profit from the REO industry I recommend is the BPO REO Business Kitt.
Saturday, February 19, 2011
Get Into The REO Industry The Profitable Way
The current conditions of our real estate market provides great advantages for those of us that have decided to jump into the market and take advantage of the low prices. The weakness of the U.S. economy has given rise to the largest epidemic of foreclosures in American history. Yet as always, challenges bring opportunities.
The year 2010 was another breaking year for foreclosures and bank REOs. Over a million homes were converted to REO properties during 2010!, eventhough we experienced a slow down in the fourth quarter of 2010. According to RealtyTrac, foreclosure filings hit 2.87 million U.S. homes in 2010 (in other words, one out of every 45 homes in the US). That represented an increase of 2 percent when compared to 2009.
What is expected for 2011? We should expect a spike on the number of foreclosures, specially in the first six months of the year. The uncertainties to Freddie Mac and Fannie Mae will cause stress in the real estate market, specially on those properties that on the verge of falling into foreclosures.
So how can you profit on this market? One way is to join the group of investors that have decided to focus on the REO industry. As I shared with you in the past, we are not the only ones cherry picking the best deals, there are many intelligent Realtors and investors taking advantage of the situation. This require that you be prepared, as Jack Welch said "If you don't have a competitive advantage, don't compete."
One of the areas of our industry that provides a great opportunity for great profits is REOs. Like many other areas, those that have learned the basics of the trade can profit tremendously in our current real estate market. In my search for new material to continue and improve my skills I have come across of the BPO REO Business Kit. I have found it to be very educative and easy to read and it is a must for those interested in profiting from this market. This real estate program will show you how to easily, effectively, efficiently, and affordably attract bank asset managers and BPO companies to work with you, and give you endless BPO assignments and Bank REO Listings!
On this program, you will also learn about get access to Short Sales listings on an efficient manner. I found that this program has all the ingredients to start a BPO and REO business. Like anything that is of value—you have to put EFFORT into it, you receive in direct proportion what you invest. If you are serious about the REO Industry, you should seriously consider this program.
Learn More
The year 2010 was another breaking year for foreclosures and bank REOs. Over a million homes were converted to REO properties during 2010!, eventhough we experienced a slow down in the fourth quarter of 2010. According to RealtyTrac, foreclosure filings hit 2.87 million U.S. homes in 2010 (in other words, one out of every 45 homes in the US). That represented an increase of 2 percent when compared to 2009.
What is expected for 2011? We should expect a spike on the number of foreclosures, specially in the first six months of the year. The uncertainties to Freddie Mac and Fannie Mae will cause stress in the real estate market, specially on those properties that on the verge of falling into foreclosures.
So how can you profit on this market? One way is to join the group of investors that have decided to focus on the REO industry. As I shared with you in the past, we are not the only ones cherry picking the best deals, there are many intelligent Realtors and investors taking advantage of the situation. This require that you be prepared, as Jack Welch said "If you don't have a competitive advantage, don't compete."
One of the areas of our industry that provides a great opportunity for great profits is REOs. Like many other areas, those that have learned the basics of the trade can profit tremendously in our current real estate market. In my search for new material to continue and improve my skills I have come across of the BPO REO Business Kit. I have found it to be very educative and easy to read and it is a must for those interested in profiting from this market. This real estate program will show you how to easily, effectively, efficiently, and affordably attract bank asset managers and BPO companies to work with you, and give you endless BPO assignments and Bank REO Listings!
On this program, you will also learn about get access to Short Sales listings on an efficient manner. I found that this program has all the ingredients to start a BPO and REO business. Like anything that is of value—you have to put EFFORT into it, you receive in direct proportion what you invest. If you are serious about the REO Industry, you should seriously consider this program.
Learn More
House Passes Budget Cutting Bill
The house of representative has passed a $60 Billion budget cut, what is considered the largest budget cutting bill in US History. However, it is expected opposition in the Senate. The House bill comes with assistance for coal companies, oil refiners and farmers escape new environmental regulations.
Lets see what the Senate now do. We should expect a manipulation between politicians from both bands, as we approach the deadline to pull for their pet projects. It will be interesting to see the decisions that our Nation's leaders we elected make in our behalf.
Lets see what the Senate now do. We should expect a manipulation between politicians from both bands, as we approach the deadline to pull for their pet projects. It will be interesting to see the decisions that our Nation's leaders we elected make in our behalf.
Friday, February 18, 2011
Become a Better Negotiator and Increase Your Revenues
"Let us never negotiate out of fear, but never fear to negotiate"
John F. Kennedy
Negotiations is method of resolving differences between people. In real estate much of our work revolves around resolving differences, thus our ability to negotiate effectively is an essential skill. How you negotiate on a daily basis determines how much you make, what benefits/concessions you get, and how easy it is to get your offers approved. However, recent research has shown that a full 20% say they avoid it completely!
So how do we address the negative feelings we usually get when negotiating:
1. Determine the importance of the relationship with whom you are about to negotiate before you start. Also, determine the outcome of this negotiation. Keeping this in mind will help you determine the best negotiation strategy and will keep you focused on your goals. Above all, it will also help you from falling into the "trying to keep everyone happy".
2. Get to know how YOU respond to conflicts. Generally there are 5 ways we respond to conflicts; compromise, compete, avoid, accommodate and collaborate. Knowing how you respond to conflict will help you make the necessary corrections to the most appropriate response in the circumstances.
3. Lear to use Win/Win Strategies. Using this type of strategy the interests of the parties are explored so that the best solution for both parties can be obtained. For example, exploring interests, brainstorming for more options, and knowing other alternatives to a negotiated settlement are ways to implement this strategy.
Remember that almost everything we do involves some kind of negotiation. If you think about it, you’ll realize that you negotiate all the time, every day. The key is to become better negotiators. For those who are serious about their business I highly recommend "How To Become a Better Negotiator" which will help you tremendously. I have read it and found it to be extremely helpful and easy to read. Get it Now!
John F. Kennedy
Negotiations is method of resolving differences between people. In real estate much of our work revolves around resolving differences, thus our ability to negotiate effectively is an essential skill. How you negotiate on a daily basis determines how much you make, what benefits/concessions you get, and how easy it is to get your offers approved. However, recent research has shown that a full 20% say they avoid it completely!
So how do we address the negative feelings we usually get when negotiating:
1. Determine the importance of the relationship with whom you are about to negotiate before you start. Also, determine the outcome of this negotiation. Keeping this in mind will help you determine the best negotiation strategy and will keep you focused on your goals. Above all, it will also help you from falling into the "trying to keep everyone happy".
2. Get to know how YOU respond to conflicts. Generally there are 5 ways we respond to conflicts; compromise, compete, avoid, accommodate and collaborate. Knowing how you respond to conflict will help you make the necessary corrections to the most appropriate response in the circumstances.
3. Lear to use Win/Win Strategies. Using this type of strategy the interests of the parties are explored so that the best solution for both parties can be obtained. For example, exploring interests, brainstorming for more options, and knowing other alternatives to a negotiated settlement are ways to implement this strategy.
Remember that almost everything we do involves some kind of negotiation. If you think about it, you’ll realize that you negotiate all the time, every day. The key is to become better negotiators. For those who are serious about their business I highly recommend "How To Become a Better Negotiator" which will help you tremendously. I have read it and found it to be extremely helpful and easy to read. Get it Now!
Thursday, February 17, 2011
The King of Bling Sentenced in Federal Court
John Sheehan (aka "The King of Bling" in the real estate market) was sentenced in federal court on Monday for using the Internet to promote a real estate scheme in which investors lost more than $1 million. Mr. Sheehan used his businesses, John Michael Investment (JMI) and 3MOM, to defraud investors who paid to purchase and rehabilitate residential properties from June 1, 2005, through June 30, 2006. On his website he solicited investments to purchase and rehab properties, which will be sold and profits split with the investors. He would promise the investors a return between 10 to 18% per year.
Eventhough investors were promised that they were sole-investors on each property, The King of Bling would use funds from several investors on the same property. In other cases he would not even purchase the properties. In other cases, he would pool funds from several investors and purchase properties for values substantially less that the funds raised for the property, like in one case were he raised approximately $83,000 for a property he purchase for $19,000 and sold for $70,000.
Eventhough investors were promised that they were sole-investors on each property, The King of Bling would use funds from several investors on the same property. In other cases he would not even purchase the properties. In other cases, he would pool funds from several investors and purchase properties for values substantially less that the funds raised for the property, like in one case were he raised approximately $83,000 for a property he purchase for $19,000 and sold for $70,000.
JP Morgan Launches New US Opportunistic RE Investment Division
JP Morgan Asset Management has recently launched its new US opportunistic real estate investment division, Junius Real Estate Partners. The new business based in New York will manage assets separately from J.P. Morgan's existing real estate asset management business.
Junius will focus on selective real estate investments that aim to exploit opportunities throughout the capital structure, said JP Morgan Asset Management.
Junius will focus on selective real estate investments that aim to exploit opportunities throughout the capital structure, said JP Morgan Asset Management.
Tuesday, February 15, 2011
Trade Stimulus to Boost The Economy
There is no question that the American people are tired of the current economic conditions and looking for action. They want something that will revamp the economy and want to see a reduction in unemployment. According to a recent survey, 35 percent of Americans believe that unemployment is the biggest problem facing the country, the highest percentage since October 1983.
Even though there are no easy solutions for our current economic situation, there are things we can do to create jobs right now. We should consider passing free trade agreements (FTA) with Colombia, Panama and South Korea. In his State of the Union address, President Obama made the case for trade, saying: "The more we export, the more jobs we create here at home."
One in particular that I suggest be in top of the list is passing the FTA between the United States and Colombia. This FTA has been floating in the U.S. Congress for more than four years since it was signed in November 2006. This FTA has received praises and strong opposition. Those in favor agree that it will increase U.S. exports and strengthen our ties with a key democratic ally in South America. Those opposed in Congress and the U.S. labor movement contend that the Colombian government has not done enough to curb violence against trade unionists. I am not in total agreement with this view. I have been in Colombia for the last three years and see a country with great opportunities and a great partner for the United States. LEARN MORE.
If the U.S.-Colombia FTA is implemented, this would eliminate barriers to billions of dollars of U.S. exports. In 2010, U.S. producers exported more than $11 billion in goods to Colombia, making it our third-largest market in Latin America, behind only Mexico and Brazil. Two-thirds of U.S. exports to Colombia are manufactured goods. Our top exports are chemicals, plastics, electrical equipment, excavating machinery, telecommunications equipment, computers and computer accessories, industrial engines, and drilling and oilfield equipment, fuel oil and corn. The U.S. International Trade Commission estimates that the agreement would boost U.S. exports by an additional $1.1 billion after full implementation.
The passage of the Colombia agreement would have a positive impact on U.S. exports in the politically potent manufacturing and agriculture sectors, as well as the less visible but equally important services sector. This in turn will create employment, reduce unemployment, increase the tax base, bring an influx of capital that will in turn will flow into other markets like real estate.
The risk that the United States run for the inaction on this FTA is the loss of expanding our manufacturing, agricultural and service industries. Above all, the biggest loss is the loss of the Colombian market, if we do not do it another country will do it. We could suffer a permanent loss of market share to competitors in countries that are moving ahead with trade agreements with Colombia (recently Colombia has signed FTAs with the European Union and Canada. Also, South Korea has seen the potential of the Colombian market and is in the process of an FTA agreement. Also, Japan has already approached Colombia with the goal of an FTA.
FYI - U.S. exporters already appear to be losing market share because of delayed implementation of the Colombia agreement. According to the Embassy of Colombia in Washington, the U.S. share of Colombian wheat imports dropped from 72 percent in 2008 to 46 percent in 2009, with Canada and Argentina filling the gap. The U.S. share of Colombia's corn imports fell even further, from 80 percent to 37 percent, with Argentina and Brazil the main beneficiaries.26 Implementing the agreement would help U.S. exporters stem or reverse those losses.
This may not be the best solution, however we do not have many options right now to revamp our economy. If we do not move forward with the FTA with Colombia right now, what is our politicians going to do to address our current situation to lower our national debt, lower our unemployment and provide an opportunity to our manufacturers to improve our production levels and in turn improve our economy.
Even though there are no easy solutions for our current economic situation, there are things we can do to create jobs right now. We should consider passing free trade agreements (FTA) with Colombia, Panama and South Korea. In his State of the Union address, President Obama made the case for trade, saying: "The more we export, the more jobs we create here at home."
One in particular that I suggest be in top of the list is passing the FTA between the United States and Colombia. This FTA has been floating in the U.S. Congress for more than four years since it was signed in November 2006. This FTA has received praises and strong opposition. Those in favor agree that it will increase U.S. exports and strengthen our ties with a key democratic ally in South America. Those opposed in Congress and the U.S. labor movement contend that the Colombian government has not done enough to curb violence against trade unionists. I am not in total agreement with this view. I have been in Colombia for the last three years and see a country with great opportunities and a great partner for the United States. LEARN MORE.
If the U.S.-Colombia FTA is implemented, this would eliminate barriers to billions of dollars of U.S. exports. In 2010, U.S. producers exported more than $11 billion in goods to Colombia, making it our third-largest market in Latin America, behind only Mexico and Brazil. Two-thirds of U.S. exports to Colombia are manufactured goods. Our top exports are chemicals, plastics, electrical equipment, excavating machinery, telecommunications equipment, computers and computer accessories, industrial engines, and drilling and oilfield equipment, fuel oil and corn. The U.S. International Trade Commission estimates that the agreement would boost U.S. exports by an additional $1.1 billion after full implementation.
The passage of the Colombia agreement would have a positive impact on U.S. exports in the politically potent manufacturing and agriculture sectors, as well as the less visible but equally important services sector. This in turn will create employment, reduce unemployment, increase the tax base, bring an influx of capital that will in turn will flow into other markets like real estate.
The risk that the United States run for the inaction on this FTA is the loss of expanding our manufacturing, agricultural and service industries. Above all, the biggest loss is the loss of the Colombian market, if we do not do it another country will do it. We could suffer a permanent loss of market share to competitors in countries that are moving ahead with trade agreements with Colombia (recently Colombia has signed FTAs with the European Union and Canada. Also, South Korea has seen the potential of the Colombian market and is in the process of an FTA agreement. Also, Japan has already approached Colombia with the goal of an FTA.
FYI - U.S. exporters already appear to be losing market share because of delayed implementation of the Colombia agreement. According to the Embassy of Colombia in Washington, the U.S. share of Colombian wheat imports dropped from 72 percent in 2008 to 46 percent in 2009, with Canada and Argentina filling the gap. The U.S. share of Colombia's corn imports fell even further, from 80 percent to 37 percent, with Argentina and Brazil the main beneficiaries.26 Implementing the agreement would help U.S. exporters stem or reverse those losses.
This may not be the best solution, however we do not have many options right now to revamp our economy. If we do not move forward with the FTA with Colombia right now, what is our politicians going to do to address our current situation to lower our national debt, lower our unemployment and provide an opportunity to our manufacturers to improve our production levels and in turn improve our economy.
TAX CONSEQUENCES OF SHORT SALES The Untold Truth
I just finished updating my ebook Tax Consequences of Short Sale - The Untold Truth. This ebook is written in simple english and it is intended to provide you with the clear understanding of the consequences of short sales. It will help homeowners save thousands of dollars in taxes.
BUY IT NOW!
BUY IT NOW!
Monday, February 14, 2011
IRS Extended 2011 Tax Season Deadline to April 18
The Internal Revenue Service has extended the filing deadline until April 18 to file their 2010 tax returns. The reason is that Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.
Sunday, February 13, 2011
The Impact of a Higher National Debt
| The Gross National Debt |
The U.S. national debt ceiling was set at $14.29 trillion in February, 2010. Now it looks like we are going to hit that ceiling by the time you read this posting. What our politicians are going to do? Not passing a law to increase that ceiling means to enacting a balanced budget amendment. Not raising the national debt ceiling means deficit spending ends immediately. It means the U.S. government would have to live within its means.
The revenues of the U.S. government come from $2.2 trillion it collects each year in taxes charged to the US Citizens. However, our nation spends $3.5 trillion each year, which creates an annual deficit of $1.3 trillion (deficit). To compensate for the deficit, the U.S. government borrows by selling U.S. Treasury bonds. If Congress refuses to raise the debt ceiling, the U.S. government is not allowed to sell any new bonds except to refinance old ones.
Some politicians believe that not raising the ceiling risks the "full faith and credit" of our nation. Well I do not agree with them on this point. As mentioned before, the United States can sell bonds for the purpose of paying off existing bonds. This is a situation of generating current debt to pay off existing debt. This wont solve the issue of the pending situation of the national debt, but it would address the situation of our credit standing since we would not have to default on any existing debt.
What other effects we would see from not raising the debt ceiling?
---> Hyperinflation and Depression
This means that we have to gradually cut Fed spending by the amount of the deficit over the next twelve months or $1.3 trillion which is $1.3 trillion ÷ $3.5 trillion = 37%.
So we would have to cut federal spending 37% by the end of the twelve months after the ceiling was reached. If we spread this impact evenly, we would see that Social Security and Federal pensions recipients will receive 37% less every month. Our nation would have to lay off 37% of the work force or all of the federal employees would have to accept a 37% cut in their pay. Congresspersons and the president would have to take immediate 37% pay cuts—so would their staffs (I do not think we will see our beloved politicians do this patriotic act).
So what do we do?
Bring unemployment down to 5%? That wont solve the situation, not even close. That would only increase annual tax revenues by about $150 billion. Increase taxes? Nope. Numerous experts like Former Fed Chairman Alan Greenspan have said that. If you could increase taxes 25%, which is probably impossible unless you broadened the base, you would still only get about $500 billion more revenue. Still short. Increase taxes to the current tax base would not only cause a paralysis on an already ill economy.
So what do we do?
Is saving our credit rating in our global economy more important than saving the nation? If the U.S. continued to make on-time payments to bond owners, the "full faith and credit" of the U.S. of course would be kept intact. However the house in falling apart, since we do not have money to address the internal challenges. Do we try to rescue social security and Medicare? If the U.S. government defaults on its obligations, the international bond market will refuse to buy any more U.S. bonds. Also, defaulting on the bond payments would change our credit rating from AAA to defaulted.
This is a mess. Both, republicans and democrats are guilty of this mess. Now is not a time to finger point and provide us with their bull crap answers!
On January 25th, our President Obama, provided us with more of the same in his State of the Union addresses. We're in DEEP trouble and we need to have REAL solutions NOW. How do we address the current situation of our nation. Taxpayers are tired of having to bail out Fannie and Freddie Mac AND Big Banks and the rest of the mess. The CEOs paying themselves big bonuses, while the nation continues to go down in more debt.
I bet that the politicians will conclude in raising the ceiling and print more money. This is an interesting situation, since our politicians will use this moment to get their pet projects approved, instead of focusing on what matters to our whole nation. Ultimately, they will all get together and raise the ceiling with some meaninglessly small cuts. However, we know that the situation is still deteriorating. We all will be here again discussing when we will hit our next debt ceiling.
Imagine, you making your household decisions based on what your neighbors may think about you cutting down your spending.
If we do not seriously address this now, the price to pay will be higher. If you think that a 37% cut now is bad, wait until they postpone this issue for later. The options are not 37% cuts now or more borrowing. It is 37% cuts now or bigger cuts next year or even bigger cuts the year after that, etc. etc. Remember that our deficit, unless we make some drastic changes, will continue to grow. I think we should bite the bullet now and accept the offer of the 37% cut now. However, I do not see them doing it. When they have to choose between personal political suicide or national financial suicide, they will choose national financial suicide. They are not prepared to do what is right for the nation. They are scared!
Fraud Alert: Stolen Mortgage Payments in Nevada
Be on alert in Nevada. If you receive a letter telling you that your mortgage servicer has changed and instructing you to send payments to a different address, check in with your old servicer before making the move.
In Nevada, two men have been arrested for such a scam. Joseph Yorkus and James Bartczak set up a company called “Great Western Business Services” designed to accept mortgage payments from homeowners. However, in reality, those homeowners’ mortgages would not have moved, and Yorkus and Bartczak could have cashed those checks while the properties in question slid into foreclosure. An employee of Great Western ultimately brought down the scheme when she realized that the company was stealing money rather than servicing mortgages. Currently Yorkus and Bartczak have only been charged, not convicted of the fraud.
In Nevada, two men have been arrested for such a scam. Joseph Yorkus and James Bartczak set up a company called “Great Western Business Services” designed to accept mortgage payments from homeowners. However, in reality, those homeowners’ mortgages would not have moved, and Yorkus and Bartczak could have cashed those checks while the properties in question slid into foreclosure. An employee of Great Western ultimately brought down the scheme when she realized that the company was stealing money rather than servicing mortgages. Currently Yorkus and Bartczak have only been charged, not convicted of the fraud.
Saturday, February 12, 2011
First Time Home Buyer Credit Tax Alert
Many families took advantage of the "First Time Home Buyer Credit" program. Under the original terms of the program, families were able to get the $7,500 tax credit. Many knew that it had to be paid back over 15 years. But why turn down an interest-free loan?
Under the revised new first time home buyer tax credit which was worth up to $8,000 it does not require repayment. With only two months left to file taxes, it is important to find out what's changed on the 2010 return. Plus, the IRS introduces a new amnesty program for people with overseas accounts.
Here is a tax tip for you --> If you claimed the first-time home-buyer credit for 2008, you need to make the first installment payment of 1/15th of the credit you received. Use Part IV of Form 5405. People who don’t normally need to file a tax return may forget to make this payment. Remind your family and friends who live on Social Security or tax-free interest they will need to file a return this year if they used the credit in 2008.
Another Tip ---> If you moved out of the home or sold it before living there for 36 months, you also have to pay back the credit.
Tip for Those in the Military ---> Members of the military may still qualify for the home-buyer credit if they buy homes before April 30, 2011, and finalize the purchase by June 30. See this IRS page for more on special rules for those in the military and certain other federal employees.
Under the revised new first time home buyer tax credit which was worth up to $8,000 it does not require repayment. With only two months left to file taxes, it is important to find out what's changed on the 2010 return. Plus, the IRS introduces a new amnesty program for people with overseas accounts.
Here is a tax tip for you --> If you claimed the first-time home-buyer credit for 2008, you need to make the first installment payment of 1/15th of the credit you received. Use Part IV of Form 5405. People who don’t normally need to file a tax return may forget to make this payment. Remind your family and friends who live on Social Security or tax-free interest they will need to file a return this year if they used the credit in 2008.
Another Tip ---> If you moved out of the home or sold it before living there for 36 months, you also have to pay back the credit.
Tip for Those in the Military ---> Members of the military may still qualify for the home-buyer credit if they buy homes before April 30, 2011, and finalize the purchase by June 30. See this IRS page for more on special rules for those in the military and certain other federal employees.
The Future of Fannie and Freddie Mac will Impact China
China may be affected by the imminent changes to Fannie and Freddie Mac announced by the Obama administration. Chinese regulators have issued a rare denial of a local media report that the country could lose up to $450 billion on its investment in securities issued by U.S. housing giants Fannie Mae and Freddie Mac. Many Chinese are convinced that China lost vast sums of money on its investments in U.S. assets during the financial crisis. Last year, for instance, rumors spread that the central bank governor, Zhou Xiaochuan, had defected to the U.S. because the People’s Bank of China had somehow, quite implausibly, lost $430 billion on its investments in U.S. Treasury bonds.
China has never disclosed the size of its holdings of Fannie and Freddie securities, but according to the U.S Treasury’s report on foreign holdings of U.S. securities, China held $454 billion of long-term U.S. agency debt as of June 30, 2009. That includes $358 billion of “asset backed securities…backed primarily by home mortgages,” and $96 billion of other long-term agency debt. The bulk of those holdings are likely in Fannie and Freddie bonds and securities, though it also includes debt from other U.S. government agencies such as the Government National Mortgage Association.
LEARN MORE
China has never disclosed the size of its holdings of Fannie and Freddie securities, but according to the U.S Treasury’s report on foreign holdings of U.S. securities, China held $454 billion of long-term U.S. agency debt as of June 30, 2009. That includes $358 billion of “asset backed securities…backed primarily by home mortgages,” and $96 billion of other long-term agency debt. The bulk of those holdings are likely in Fannie and Freddie bonds and securities, though it also includes debt from other U.S. government agencies such as the Government National Mortgage Association.
LEARN MORE
Become A Real Estate Success in 30 Days!
Finally we have released the first in our real estate success program. In this 99 page long report I have avoided all of the hype that many real estate gurus publish daily which gets you no results. Here you will learn to create a solid business which will generate real solid income. Here you will receive REAL ESTRATEGIES to achieve SUCCESS!
Please understand that real estate investing goes beyond of the acquisition of the property. I am certain that you have seen the promotions and seminars about How To Get Rich in Real Estate With No Money Down . The problem is not if we can acquire a property without money, I have done it. The challenge is what happens to these investments after the purchase a few months or years later.
...make sure you take this income opportunity seriously.
Just take a look at the advantages...
* Discover principles of success that will help you establish a business with stream of income month after month.
* Book packed with useful information and forms.
* YOU make money any time you sell this program to others ($10.95 per unit with 100% of the profits for you)
* YOU will see results in 30 days
This is a must reading for beginners and those who are interested in venturing into the real estate investing profession.
Become a Real Estate Success!
Please understand that real estate investing goes beyond of the acquisition of the property. I am certain that you have seen the promotions and seminars about How To Get Rich in Real Estate With No Money Down . The problem is not if we can acquire a property without money, I have done it. The challenge is what happens to these investments after the purchase a few months or years later.
...make sure you take this income opportunity seriously.
Just take a look at the advantages...
* Discover principles of success that will help you establish a business with stream of income month after month.
* Book packed with useful information and forms.
* YOU make money any time you sell this program to others ($10.95 per unit with 100% of the profits for you)
* YOU will see results in 30 days
This is a must reading for beginners and those who are interested in venturing into the real estate investing profession.
Become a Real Estate Success!
Saturday, January 29, 2011
Tax changes to watch for on your 2010 return Many familiar provisions remain, but tricky differences lurk http://ow.ly/3MtgD
Monday, January 10, 2011
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