The key to success in any business is effective marketing

The key to success in any business is effective marketing and follow up systems, yet I see ineffective marketing everywhere I turn, especially in the real estate investing business. The other factor I have found in this business that limits people’s success is not knowing the proper ways to structure a deal. When it comes to creating creative financing solutions, only a handful of investor agents and agents can meet that challenge.

Knowing when something is not a deal and being able to walk away instead of trying to create something that is not there, can save any investor agent hours of work and a lot of brain damage. Being able to go ahead and help the home owner by helping them sell their house using creative solutions is a huge niche that we have and definitely needed in the current economical conditions. In addition, being able to recognize an opportunity while others have not seen the potential is a trait that can make you millions of dollars once you are trained to have that vision.

Streetwise Real Estate Investing is based on identifying two major factors to being successful in the real estate investing business, solving the financing problem, and putting the process on auto-pilot as much as possible. The first factor is you need a great coach to walk you through the details of doing the deals correctly so you can maximize your return in investment. Second, you need an excellent marketing system that generates great leads and that provides follow up systems for developing a strong relationship that can be put on auto-pilot.

That being said, at some point it comes to creating trust and rapport with the client in a face to face meeting and how effective you become in that setting will determine whether you are going to be a millionaire or looking for another line of work.

Years ago I recognized that many people when speaking on stage had a hidden agenda. Often I have overheard speakers admit that what they had just told a crowd was not what they really did, but was part of a presentation meant to sell a specific product. Having spent $5,000 to $10,000 a month on a variety of advertising and testing all those results, I can assure you that some marketing campaigns of outdoor signs and expensive TV budgets are developed more around the idea of the franchisor being paid a 20% advertising commission and building the name of the franchise, than effectively generating leads. As a general rule, image marketing and branding doesn’t work for the little guy and is usually not the best way to generate leads or the best method of building long term relationships with clients. Direct response marketing however, quantifies every detail in a marketing effort to maximize results. For example, if we are sending out a direct mail campaign at a cost of around $1500 which includes printing, mailing list and postage – then those costs are fixed. You pay the same price whether you get 1 lead or 20 leads. It has been proven that you can increase the effectiveness of an ad by up to 21 times by doing little things like changing the headline, the offer, the price or the body copy. How do you know how to do this? By testing that’s how.

We use split testing constantly to improve our scripts and our advertisements to insure that the control group we are currently doing is the best in the industry. You can be assured that a marketing campaign designed and implemented by headquarters is based on the premise of the best cost effective method of generating leads, and we have the numbers to prove it. When you combine direct response marketing with a cost effective national marketing exposure of a co-op synergized marketing effort, you come up with one of the most effective systems out there. We current are seeing the cost per lead around $30 and the cost to get a listing or investment property for yourself being around $1000. Imagine if you can consistently get a listing and sell for an average $100,000 house for $1000 and make $6000 in commissions, how many time would you want to do that a month? 

mortgage bankers reverse course

"It was barely a few months ago, albeit a few thousand ago, that I moderated a panel of mortgage types from the मजोर banks, including the Mortgage Bankers Association's new David Stevens, formerly FHA commissioner. Stevens and I हवेbeen talking housing for many years now, so I'm well aware that
he is not exactly the ambivalent type. When I suggested to the panel that the risk of a double-dip in housing was great and that winding down Fannie Mae and Freddie Mac now could be detrimental
to the housing market, Stevens was adamant that housing was well into recovery, and all those home price and mortgage delinquency reports I was citing were backward looking and not indicative of
the current state of the market. Now Stevens is reversing course.

This morning he put out a statement advocating a continuation of the higher loan limits at the GSE's (Fannie and Freddie) and the FHA for one more year. 'The temporary loan limits authorized by
Congress have benefited consumers and the housing market during what has been a turbulent period for our nation’s economy,' Stevens said in the statement. 'That decline is not over yet.'
The statement was a little dry for me, knowing the source, so I called Stevens for a little elaboration. He stated right from the get-go that he is still bullish about the future of the housing market, which is not exactly saying he feels great about it right now. 'It looked very clear at the beginning of the year that we were heading toward a flattening of the market, but we've seen clearly an impact to the housing market which is not solely a result of the U.S. economy. It's brought on by general
uncertainties: Oil prices spiked for a while, which hit confidence, there were a lot of impacts both domestically and internationally,' he continued. 'I think the view right now that I have is that this is a relatively inexpensive initiative that could support the housing market at a time when pulling back
makes no sense.'

When I suggested that this was in direct opposition to the MBA's stand on GSE reform, which includes reducing loan limits in order to bring private capital back to the market, he said there was
always a 'caveat in the white paper for market conditions.' He also says private capital is still too nervous about the state of housing to come back in force now. As for the FHA, which he has
maintained consistently has far too large a market share right now, 'If FHA is still too big, it is the sign of an unhealthy system, but it doesn't mean pulling back is the right answer. We must continue providing support.'

Lowering the current loan limits (a maximum of $729,750 in the most expensive markets) would really affect just 5% of the housing market, although that percentage is far higher in certain local markets. Stevens says that's enough to hurt the overall market right now, and that we still need another year of recovery before we take such a risk. He notes over an over that it really costs the government nothing and doesn't 'score' in the budget. I'm wondering when the banking industry starts putting its money where its mouth is, now that it's making money again.

There has been all this talk about getting government out of the housing/mortgage market, but no real movement in that direction. There have been some hikes in fees, but nothing really dramatic. The change in the loan limits was supposed to be the first step, something everyone agreed on. Now, not so much. There is certainly risk in lowering the limits, given that we are operating in a housing market that was beaten to a pulp and is still limping. But rehab takes some pain; if we really want a
private sector mortgage market, and I'm not advocating one way or the other, but that has been the party line in both parties, then we need to start somewhere."

Factors Affecting real estate Value of your house

Property value assessment frequently appears just like a summary practice. To an average joe, it could even appear as though the so-known as pros who appraise houses are simply setting prices depending on how they think in regards to a property. However, there's a typical through which these evaluation professionals base their value presumptions on. You will find factors that determine the need for a house, and when you are searching to market your house, it might be to your advantage to be aware what these factors are.

The main component that determines the cost of the rentals are its location. If this involves property concerns, location is easily the most apparent qualifying criterion of worth. Location is essential for commercial qualities since it determines potential profit. The more busy the region, the greater the worthiness an industrial property may have.

This type of standard isn't only at commercial qualities. Real estate value of your house can also be based on its location. It's closeness to commercial institutions can increase the need for your house.

The nearby neighbourhood is another main factor in appraising your house. If you reside inside a clean and safe neighbourhood, it will likely be much simpler to market your house. In case your community has an optimistic status, the need for your house would certainly rise.

The important thing for you to get a great value for your house is understanding who your buyer is and what your buyer values. An elder couple might value a residential area's closeness to fireplace and police stations. Individuals with children might contemplate it essential that a house is near to good public schools and parks. Youthful couples might should you prefer a location that's near to malls and restaurants. You should look at many of these factors in your assessment of real estate value of your house. Prior to selling your house, make a listing of advantages your house likes because of its location.

Location is another thing in thinking about the need for a house, but it's only some of the factor you should look at. They physical qualities of your house are simply as vital. The number of square-meters does your house occupy? How would be the structural conditions from the walls? The number of rooms does your house have? It is possible to fire place? How healthy may be the grass around the lawn? Do you know the utility rates in your town? Each one of these concerns should be thought about when assessing real estate value of your house.

Finally, opt for the healthiness of real estate market. The optimum time to market your house is before a fiscal recession. Property values go lower using the market. Throughout an financial crisis, so many people are attempting to sell their houses. The supply of cheap deals makes selling difficult. With many different competition, people often sell houses below their market price. Selling your house throughout this time around might not be the very best decision and really should simply be done like a last measure.

However, a fiscal recession is the greatest time to purchase a residential or commercial property since it is at this time around when real estate worth of numerous qualities reaches their cheapest.

Regardless, whether you are purchasing or selling, the most crucial factor will be well-informed. The greater value factors you know about, the greater your choices is going to be. In real estate industry, understanding is energy and knowledge is easily the most reliable type of currency.

Predictions of Real Estate Market in 2012

In the early 2011, there was a prediction that the prices of properties will go down by as much as 20-30%. This is the reason why there are a lot of people who are looking for properties that are priced 30% lower than the market value. They believed that this is the only way for them to protect themselves from the downside market. At the end of 2011, there was report saying that the national market price went down by 2.1%.

The average market price refers to the average of all the prices of homes in the United States. Some states may have an increase in the prices, while some have lower than 2.1%. Nonetheless, it is still very far from the prediction in the early 2011 that the prices will go down by as much as 30%. It probably did in one or two states, but if this is the case, we can say that the market in the remaining states is above -2.1% for the whole year.

Now that we are in 2012, there are still a lot of people who are saying that the prices of real estate market will go down by as much as 30%. Actually, this is not something new for agents, since this predication became a tradition every year for years. The problem is that there are a lot of people who always believe in these predictions, and they will never buy something that is priced the same as the market value.

As I always say, if you are going to buy a property, always think that the price of properties won't change for years. It may go down for about 2% for this year and 3% next year, but it will definitely be back on track in the next few years. Only one thing is for sure; if you always believe in those kinds of predictions, you may never be able to have your own property, because you always wanted it to have a price lower than 30% of the market value.

If you want to know the current situation of the market in your state, it would be better if you are going to contact your trusted agent or Realtor. They have a more accurate record of the ups and downs of the market, and they can provide you with better advices compared to the predictions about the market crash, which only ruins the market as a whole.

Keep in mind that buying a property should be based on your intentions, your budget, and your need. If you want to buy and sell properties, then look for one; if you want to find a property that is within your budget, your real estate agent can provide you with a list; and if you need a home, buy a property regardless of the status of the real estate market. You are the one who will be dealing with your property, and everything in real estate is negotiable. Predictions are nothing, especially in real estate where predictions like this come at least every month.

Rent to Own, Solution or more problems

NEW YORK – Jan. 17, 2016 – Rents are skyrocketing across the U.S., and an increasing number of renters devote more than half their paychecks to covering rental costs. It's not just a family burden: Those escalating rent costs have been cited as a major hindrance preventing renters from saving enough for a home purchase downpayment.
But some housing analysts are pointing to rent-to-own agreements as a solution for families who are stuck paying rent but longing for homeownership.
A report from Moody's Investors Service singles out a program called Home Partners of America that helps potential buyers with credit problems or not enough money for a downpayment. One of the unique aspects of the program – compared to other single-family rent-to-own programs – is that the buyers select a property they would like to purchase, and then Home Partners of America buys it, providing it meets the program's qualifications. It then sets up an agreement to rent the property to the would-be buyer. The end goal, however, is that Home Partners of America will eventually sell the property to the renter later on.
The buyer-chosen properties are likely to be "higher quality and in more desirable locations [such as those with better school districts]" than properties that are purchased through foreclosure sales, according to Moody's.
Under the rent-to-own agreement and during the lease term, the tenant would be able to purchase the home at a pre-set price. The lease term generally runs between three to five years. The longer they wait to buy, the higher the purchase price will rise – usually 3.5 percent to 5 percent per year during the term of the lease.
"Furthermore, the strategy could benefit property recovery values because renters with purchase options are incentivized to maintain their properties well," Moody's report notes.
Moody's report shows that the average value of properties under the program is $247,483 in comparison to rental homes offered by Invitation Home sand American Homes 4 Rent that average $167,631 and $143,066.
Source: "Is Rent-to-Own the Future of Housing?" HousingWire (Jan. 14, 2016)

MY apologies !!

I have not been blogging for sometime now and the reason is I can't stand to watch the news, or even walk by and see it on TV. Our Country, and I mean the media has become so one sided, that its very hard for anyone to correctly dissect the news to understand what is truth of fiction, with the media and their hidden agenda, making it sound like the Our Country is doing well when in fact its doing the opposite. The banks are taking away homes that no longer belong to the banks, and stealing the homes from homeowners,without real due process, the "So" called Foreclosure Defense attorneys are not properly defending you on your home. Media is giving the impression that homes are moving in an upward incline showing an increase in our homes when in fact, what they don't tell you is the banks are hording the inventory and putting many, many of people out of work for the all mighty dollar "Greed". We had an election last year and we are now finding out the "So" called Barack is Not eligible to have been in the race and to top that he had so much voter Fraud in the State of Ohio it came out to be 130%...WOW how do you get a 30% more turn out the 100%, and No one voted for Romney...again, so much of this administration has done is to terrorize the media, the people, and our severing way of life. Waht are we to do, well we need to start getting into public office ourselves and ""STOP"" sitting on the couch watching all this go by us, we need to start taking an active roll, no matter what it is, how small it could be, but step up now!! otherwise we will be beaten. more news later !!

WSJ - tax liens triggering foreclosures

A report released this week by the National Consumer Law Center (NCLC), says the number of foreclosures tied to delinquent tax payments is climbing. The NCLC, an advocacy group, estimates that $15 billion of tax-lien foreclosures happened in 2010, the latest year for which data are available. Rising tax-lien problems stem from two overlapping trends associated with the weak economy: To close budget deficits, some local governments are increasing proxy taxes to raise additional revenue. But a growing number of homeowners, many unemployed or living on fixed incomes, are finding those tax bills—even before rate increases—a strain. When homeowners fail to pay, municipalities have the legal authority to foreclose or auction off the tax lien to debt collectors, who can charge interest rates as high as 50% on the outstanding balances. If the homeowner doesn't pay—the deadlines to do so vary across the nation—many states allow the tax-lien holders to take ownership of the properties and resell them. While the sales are causing distress for some homeowners, they reflect hard fiscal realities at the state and municipal level. "Cities and towns are facing their own budget problems and of course need homeowners to make prompt tax payments," says John Rao, an NCLC attorney who wrote the report. Homeowners are slipping on tax payments for the same reasons they are falling behind on mortgage payments, Mr. Rao said: "They're unemployed, or underemployed, expenses have gone up, and you don't have enough money." Advocates for the elderly and the unemployed, the groups most at risk of losing their homes, say it isn't uncommon for consumers with homes valued at hundreds of thousands of dollars to lose the properties after failing to pay a few thousand dollars in taxes. "The system is really counterintuitive," said Laura Newland, an attorney with AARP, an advocacy group for people age 50 and older. "Some of the properties that are most vulnerable are the ones without a mortgage." (Local taxes on homes with a mortgage are often paid by the mortgage lender, which collects taxes from homeowners in their monthly payments.) Frank Alexander, a professor who specializes in tax-law foreclosures at Emory University's law school, said municipal governments selling tax liens are being shortsighted. "It creates short-term cash, but generates long-term problems," he said, pointing out that tax-lien sales and tax foreclosures often spark legal challenges that can last for years and prove costly for homeowners and municipal governments.