It’s time to be a foreclosure investor

August 21, 2007

If you are an investor, you may already know that real estate offers many exciting areas for revenue and profits, but unless you are considering foreclosure properties as well, you may not be getting the most for your property dollar. Under current market conditions, it’s important to be a bargain hunter, and with the boom in foreclosures there’s a real opportunity for well positioned investors.

In general, a foreclosure is a real estate property that has been repossessed, usually because the owner was not able to make mortgage payments. Once the lender legally repossesses the property through a legal process known as foreclosure, the property can be sold again to investors and other property buyers. There are several sellers you can turn to for a foreclosure:

1) The government. When a home owner defaults on a home loan insured by the government, the government pays the lender for the money lost through the loan. In exchange, the lender hands the home over to the government agency and the government then sells the property in order to make up the money that has to be paid to the lender. From the government, you can buy an HUD foreclosure, a VA foreclosure, and a Fannie Mae foreclosure.

2) Banks and other lenders. When a home loan is not insured by the government, the lender has all the responsibility of a bad loan. This means that when the owner defaults, the lender repossesses the property and tries to sell it themselves or through a third party.

3) The owner. When an owner knows that foreclosure is imminent, they still have the option of selling the property as a pre foreclosure and paying off the lender. This saves their credit and may give them some cash. Buying a pre foreclosure can be risky but can also give an investor some great deals in real estate.

However you buy a foreclosure, you can expect certain benefits. Most of the time, a foreclosure is sold under it’s market value, which means that you can buy this sort of property very inexpensively. Since a foreclosure may have been neglected for a while and since the seller wants to get rid of it fast, you can expect savings of 5% to 50% and more when you buy a foreclosure. This means that you enjoy instant equity you can use right away. The low price also means that you can offer great deals on the property to your own buyers and renters. Plus, the low price and equity you get on a foreclosure can mean very affordable financing, so that you save money all around, which an boost your bottom line.

With these benefits, you may want to buy a foreclosure of your own. Don’t look in your local real estate section, though – most foreclosure properties are unadvertised. The best way to find a foreclosure is to subscribe to quality foreclosure listings service. Good foreclosure listings offer frequently updated lists of foreclosures that are available for you right now. Online home foreclosure listings such FreeForeclosureDatabase.com make finding a foreclosure a snap, no matter where you live. Plus, you can browse Listings for free. No registration is required, so there is no need for you to pay big bucks to make money with foreclosure properties.

Leave a Comment » | Economy, Foreclosures | Tagged: | Permalink
Posted by Smith

Beautiful And Pregnant

August 17, 2007

My wife is due in about 5 weeks and, quite frankly, I’m starting to get excited about the arrival of my daughter. As when my wife was pregnant with my son, Maxim (who’ll be 2 years old this coming Saturday Aug. 18th), I tend to not think about the coming birth until we get pretty close.

The fact is, 9 months is a long time. Or, at least it is to me. I thrive on much shorter term goals… things that I can act on NOW. With a pregnancy I can’t do anything except take care of my wife. So, my process is to pretty much put it out of my mind completely. Now we’re close and I’m starting to let myself anticipate it.

I think Jessica recently entered a pretty serious “nesting” phase. Getting the room ready, buying baby girl clothes, etc. She’s still running. Here’s some pics of her getting ready for a 5k run this morning. She’s looking great, don’t you think?

1 Comment | Family | Permalink
Posted by Smith

Don’t worry inflation isn’t a problem….except

August 16, 2007

I remember having a conversation with my portfolio manager nearly two years ago about inflation.    I was telling him that despite the official numbers, it seemed to be common knowledge that inflation was running rampant.    He agreed with me that the exclusion of Food and Fuel (the only two things you need to buy) from the CPI made the numbers incredibly misleading, but we had divergent opinions about how serious the problem was.   For my part, it seemed clear that it was taking a big toll on average citizens.

Even though it’s well accepted by nearly everyone I speak with, our “leaders” keep telling us that we’re just out of touch with the economic realities.    Meeting with economic journalists last week, President Bush dismissed several polls that show Americans are down on the economy. He expressed surprise that inflation is one of the stated concerns.

“They cite inflation?” Bush asked, adding that, “I happen to believe the war has clouded a lot of people’s sense of optimism.”

That’s right, Americans are just out of touch and have a clouded “sense of optimism”.    While it’s understandable that Americans might be a little pessimistic due to the planned “generation of warfare” against the “evil doers” (who they are exactly, no one can be sure.),  I think the pessimism comes from a source much closer to home.  The grocery eisle, for example:

According to McClatchy Newspapers- The Bureau of Labor Statistics said in its July inflation report that egg prices are 33.7 percent higher than they were in July 2006. Over the same period, according to the department’s consumer price index, whole milk was up 21.1 percent; fresh chicken 8.4 percent; navel oranges 13.6 percent; apples 8.7 percent. Dried beans were up 11.5 percent, and white bread just missed double-digit growth, rising by 8.8 percent.

These numbers get lost in the broader inflation rate for all goods and services, which measured 2.4 percent for the same 12-month period. Across the economy, rising food prices were offset by falling prices for things bought at the mall: computers, cameras, clothing and shoes.

If you’re in the market for a new flat panel HTDV,  you’re in luck.  If, however, you’re trying to feed your family, fill up your gas tank or simply save for the future you’re probably feeling like stretched to the max.    Add in the recent market, credit, and housing turmoil and it can seem like the sky is falling.   Or maybe that’s just my “clouded optimism” speaking due to the 41 tragic and unnecessary deaths of US soldiers in Iraq this month so far.

Are you feeling the effects of inflation?   What impact is it having on your daily life?   I’d love to hear your comments on this important topic.

Leave a Comment » | Economy | Tagged: | Permalink
Posted by Smith

August 10, 2007

Liars or just incompetent

The truth is, it’s hard to know. maybe a little of both..

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Posted by Smith

Foreclosure stats underreported in 2006

August 9, 2007

Nearly Everyone is becoming more concerned about the sub-prime lending mess and the subsequent home forclosures.   Now, a recent analysis shows that Real Estate foreclosure stats were actually dramatically underreported in 2006.  

According to the ECM Post Review:

More than 60 community leaders from outstate Minnesota gathered in Saint Cloud to hear the results of a new study documenting that foreclosures in Minnesota are occurring at twice the rate previously being reported to Congress and other policymakers. The summit was convened by Greater Minnesota Housing Fund, a statewide non-profit affordable housing organization.

“This newest study reveals what was an invisible epidemic of foreclosures in Greater Minnesota,” said Warren Hanson, president of Greater Minnesota Housing Fund. “We now see that the foreclosure crisis extends to every corner of the state and hurts both families and neighboring property owners,” said Hanson.

The new study quantified for the first time the number of actual sheriffs’ sales of foreclosed properties county by county in Minnesota in 2006. It found a stunning 11,207 foreclosures statewide – nearly double the 5,995 reported in a national study conducted by RealtyTrac, a leading provider of real estate industry data, over the same period.

What if the foreclosure reports for 2006 are substantially off not just for MN but for the entire country?   What does that say about the reporting systems in place currently?   And, doesn’t this situation make the lender mess look even worse?   

Bad news all around… Unless, of course you’re a Real Estate investor in a strong buying position.   There’s lots of buying opportunities out there and it’s easier than ever to browse through home foreclosure listings to find great deals.    Appraisers, Brokers, Banks, the Fed and homeowners themselves drove the Real Estate bubble.   As it pops, there’s many great opportunities to profit from their excesses.

1 Comment | Economy | Tagged: | Permalink
Posted by Smith

Resource for Airline Pilots

August 8, 2007

My good friend, Rick Hogan has worked as a pilot for several major Airlines and “on the side” he’s put together a great resource for job seeking Pilots looking to advice and insider information. 

The best Airline Pilot Interview resource on the web.  Up to date information on which airlines are recruiting pilots, specific details on each company’s interview process, hiring minimums, and more.

Rick’s recently added a lot of new information to the site but for a long time the bread and butter of what he did was Airline pilot interview prep.   Essentially, Rick would work one-on-one with pilots who were going through the interview process at an Airline.    He’d make sure they were prepared for every question that might be asked and help the candidate brush up on some required skills.    If you hired Rick to help prep you for the interview, odds are you were going to get the job.

Recently, Rick asked me to help him generate more targeted traffic for the website.   I suggested he focus on some basic SEO and thought his website could provide an interesting opportunity for us to test the effectiveness of a few specific optimization techniques.   Over the coming weeks and months, I’ll report the progress of moving the site up the Search Engine Food chain.   In the meantime, if you happen to be a pilot check out MyPilotCareer.com

Leave a Comment » | Friends, internet marketing | Tagged: , , | Permalink
Posted by Smith

August 6, 2007

CELL PHONE (FBI can listen to you when phone is turned off)

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Posted by Smith

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