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!
Saturday, February 26, 2011
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!
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