It has been kind of expected among real estate and mortgage professionals. Today came the official announcement from the HUD office.
As of 2/1/10, FHA buyers can buy properties that have been owned by the seller for less than 90 days.
Of course, there are some strings and conditions attached. Watch this video for details…
Resources:
What do you think about the impact of this temporary waiver? Engage and leave your comment below!
2010 will start with a big bang here at CaWholesaleDeals.com
Over the next few weeks we will bring you the Best Wholesale Information Ever.
Starting on the 7th with a wholesale webinar that will make waves.
Over the months and years in this business I noticed that many beginning real estate investors are following the advice to begin with “wholesaling”.
Because that is the best way to get into the game with no money, no credit, and none of the risks that are involved with many other real estate investing strategies.
Plus, a real “wholesale deal” is supposed to close within a few weeks, and you can get paid for your efforts THAT QUICKLY!
Problem is that many beginning “wholesale investors” are confused. They think if they only know the “numbers”, and locate a deal that fits the numbers they’re good to go, and banking day is right around the corner.
Following the common advice of several “wholesale courses” they go out and start “tying up” deals with “Flex Options”. And if that works, they “market” these deals to their “investor network”. (I know the quotation marks are getting annoying…)
The thing that usually happens next is that a bunch of the “investors” from the “network” are responding with the suggestion to put a “Flex Option” on this deal so they can “market” the deal to THEIR “investor network…
Now, don’t get me wrong, creating some form of paper trail that shows that you are a PRINCIPAL in any deal you market is absolutely necessary!
Because otherwise you’d be acting as an agent without a license, and that can get you into trouble real fast.
My point here is that SOMEONE has to dig up an ACTUAL BUYER for any deal that’s going to pay a wholesale or finders fee to anyone.
And relying on the chance that someone on your “network” has someone on her “network” who might know someone who is potentially a real buyer…well that is one of the worst ways to get actual deals done.
The true reality of wholesale investing is the same as in any other buisness on the planet: YOU as the seller has to know what your REAL BUYERS want and need.
Now, we’re not going to give you a new run-down of the kind-of-old “opposite world” strategy (which is finding the buyer first, and doing this by accumulating large amounts of “wholesale investors” – the “Flex Option” people who are NOT REAL buyers!)
No!
In this webinar, we will give you detailed, intimate insight into what a REAL BUYER needs and wants from a real “wholesale deal”. That “real buyer” – you might have guessed it – is someone who has cash (preferably) and/or credit (much harder to do a deal) to actually buy it, fix it and flip it (or hold it).
Meet Joe Rehabber
Joe Rehabber is real. He has done over 20 profitable rehab deals just this year alone, over 250 career total.
He has been active and successful in up-markets, down-markets and sideways-markets.
He will share his story of losing big in the “Savings- and Loan Crash”, and how he had to start from scratch – with no money and horrible credit.
And how he did it doing the only thing he knew: Fixing up houses.
Getting to know Joe will give you invaluable insights into the needs and wants of the REAL BUYERS of your wholesale deals: REHABBERS.
Now, this webinar is completely free, and there will be no selling whatsoever.
It will make a big difference for you to attend.
If you are a wholesale investor,
if you are (or want to be) a rehabber – that’s where the big bucks are made, right?),
even if you are a short sale investor (because some short sales could be what a rehabber needs.)
So, I hope to see you on the 7th.
Register here, seating is limitted, and thousands of real estate investors have received this invitation.
Help the Forsaken Children Project with your $20 donation and receive $5,697.97 of top notch real estate education for FREE!
Tell your friends about this, too – Re-Tweet this! Just click on the Tweet Me button!
Most investors (and real estate agents as well) have two big problems with Short Sales.
And sometimes these problems drive them close or even past the point of giving up.
Here they are (and I got them from dozens of emails and blog comments of frustrated
short sale investors (and agents):
1. Short Sales are taking too long before they generate revenue (either commission or profit),
2. Short Sales too often fall apart (eliminating any profit or commission you were counting on…)
Ok, so besides tweaking your short sale business by filling your deal funnel and increasing the closing rate, what else can you do to bridge the revenue gap? Here are my favorite, “Top 5 Ways”:
1. Wholesale Properties
Wholesaling properties is by far the fastest way to generate revenue quickly.
The characteristic of a wholesale deal is that you sell to a cash buyer at a discounted
price off the fair market value.
Two simple steps you need to focus on: Locate a handful of REAL cash buyers, and find
great deals according to their criteria. Great deals are everywhere.
And: Most great deals are MADE, not FOUND! Contact, talk, negotiate… (don’t
just look at lists or web sites and think the great deals will fall in your lap.)
Challenge: Make sure your buyers and sellers honor your position as wholesaler
both for the first deal and any follow-up deals! If you get this right, one successful
deal will lead to additional deals with more revenue for you. Don’t get greedy.
2. Free and Clear Deals
Free and clear deals (or “low-leverage” deals) are the kind of deals that can close
much faster than short sales. Free and clear deals can be sold to cash buyers at
a discount, to non-qualifying buyers with owner financing, or retail and outright
to qualified buyers (using the “Inverse Purchase System” works really well for
that last group!
These different exit strategies give you a lot of flexibility to time and structure
your revenue flow while you’re waiting for the big short sale pay days.
3. Land Investing
Land investing is another great and extremely underused niche. You will find that
there is a lot less competition when you venture into that area. An easy land flip
system can get you revenue within 30 days starting from scratch.
The simple steps to follow are: Market research (online), get a list (online or offline),
send out direct mail (online), make deals with land owners who respond (phone),
sell the deals (online).
None of these steps require that you see the property. Therefore, it does not matter
where you are located. To prove this point to yourself, just go through the steps in
a different state than where you live and you will see it works great. The best system
that I have used and recommend for this niche is Jack Bosch’s “Land Profit Generator”
(if you can still find a copy…)
4. Funded Proposal
A “funded proposal” is a way to help fellow real estate investors getting started with
the best resources, education and support. When you set yourself up as an authority
in your niche and/or area you can build up your network of buyers, sellers, agents
and investors using online marketing and social media.
Besides good and valuable content that you provide free of charge, you can also send
recommendations to your list from time to time. These could be for services, useful tools
or information. When someone in your network buys through your recommendation,
you get paid a referral fee.
This is a very powerful stream of additional revenue. Now, don’t get me wrong, it can
take some time to build up your network and trust, but once you have that established,
you can generate revenue with the push of a few buttons.
A variation of this method that does not even require that you already have a list is
to search for valuable offers and partner with someone who has a larger list for a
share of the revenue.
5. Lead Referral
A common misconception in internet marketing is that you need to build huge lists
before you will be able to make a significant amount of revenue. Particularly in real
estate where the “transaction value” for each client can be thousands or even tens of
thousands of Dollars, it can be much more lucrative to focus on the QUALITY of the
list.
You can do this in two ways: More specifically target your potential clients according
to their needs and wants, and develop your relationship more deeply. That way you
can generate high quality leads that you can refer to your network of professionals
and investors for a fee.
Sometimes real estate agents will tell you that they are not allowed to pay a “referral fee”
to someone who is not licensed. However, every agent spends significant amounts of
money on their own marketing and lead generating efforts. If you provide leads you
can get paid a “marketing fee”, and most agents will understand the difference.
This can be a great option for you if you want to focus on a specific niche for your
own investing, but keep getting leads that you can’t or don’t want to work with.
Summarizing these different ways of generating fast and steady revenue in your real
estate investing business, we need to point out that almost every revenue strategy
will work best for you when you understand how to set up your network so that you
provide real value to others.
The more people you have in your network and on your team who will benefit when
you generate revenue (either by making money or in some other way), the more and
easier will it be for you to have revenue come to you.
Please engage with this subject by leaving your comments, questions or suggestions
below! That’s one great way of building your network and get noticed by other likeminded
people.
The noise is getting louder every week. While entry level homes seem to have leveled off after a steep price drop, it looks like higher and homes are the next wave in foreclosures.
The Orange County Register reports that foreclosures in the high-value County has passed a record 8,800 for the month of September 2009. And the media blogs are of course all over the “bad news“!
The question is if these foreclosures are good short sale candidates for investors, or if we should let the banks deal with their losses and go the route of bank owned listings?
There are two criteria that make for great short sale deals.
One: The lenders’ motivation. On larger properties, lenders have to deal with larger loan amounts. A short sale on a larger loan removes a larger non-performing asset from their books. Lenders know that and act like it.
I was recently tracking a foreclosure on a $1.4MM loan. Unfortunately I got on the case too late and wasn’t able to prevent the trustee sale. However, the trustee told me that they had permission to take a bid of $765,000 at the sale. (Of course, the opening bid was advertised as $1,375,000, so nobody showed up…)
Two: Buyers willing and able to buy. Well, that’s a different story altogether. There are buyers with a lot of cash on the side, looking to put it into great deals. In the current lending environment there is no 100% financing for jumbo loan amounts. But that’s OK.
There is money for cash down payments and some buyers who can qualify. Most likely these sales will happen through buyer’s agents anyway, so it’s just a matter of how you structure your deals and setup your team.
On question that you have to keep a close eye on is what will happen with buyer confidence once a significant drop in prices is evident in areas that are now still hyped up as “recession proof”. You definitely don’t want to get in a position where you spin a lot of wheels on your short sales and can’t find a buyer in the end because your accepted offer is not good enough after the time it takes to get accepted.
Summary: Short sales for high-end properties and mansions are comming and are a very viable and lucrative foreclosure niche business. Leave a comment here if you want to hear more about our “Syndicated Short Sales” program! (And if you have any other questions or comments as well…)
