Real Estate Blog

The weakness of the U.S. economy has given rise to the largest epidemic of foreclosures in American history. But challenge always gives rise to opportunity, and opportunistic real estate investors are rising to the challenge.

The new opportunity is known as ‘Bulk REO Investing’ or ‘REO Package Investing’ and it’s a huge opportunity.

Foreclosures are at the heart of the Bulk REO business, so let’s consider the foreclosure process.

Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.

A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender. The lender directs the subsequent timing of the actual foreclosure proceedings. ‘Pre foreclosure’ is the name given to the time between implementation of the foreclosure proceedings and the public auction.

When a defaulted property is placed up for auction, the foreclosure process is completed. The lender regains ownership of the property if there are no buyers at auction. This property is then considered to be ‘Real Estate Owned’ by the lender, also known as an ‘REO’ property.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. But as a consequence of the weak economy, lenders are frequently selling their REO properties far below their actual value. But the price of receiving such great pricing is the need to purchase multiple REO properties (a ‘package’) rather than individual properties.

The recession in the United States has yielded huge profits to real estate investors prepared to take advantage. The most successful Bulk REO Investors will have a well-respected source of funding for their transactions. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Bushemi of Dandrew Partners, a hedge fund in New York.

Laser printer cartridges can be very confusing. More often than anything else, we get the question, “What’s the best laser printer for me?” It’s a difficult question to answer, for the reason that it all depends on what you aim to do with your laser printer. There are many different types of ink printer cartridges.Do you want an all in one printer, a very straightforward single function inkjet printer or a tiny photo printer?  How much have you budgeted for a printer? Also, don’t overlook that the purchase price isn’t the sole cost you will have. There is the outlay of the replacement photo printer cartridges. To help you, we have reviewed 4 different printers. With a bit of luck this will afford you with a starting point. If you’re interested in particular categories, printers cartridges or products, you will at least possess a base level of data with which to begin.

Canon Pixma MX330- The Canon Pixma MX330 is not the finest printer of high quality prints, however it is most likely the most versatile printer in the below $150 class. A 1.8 inch LCD screen, easy to work features, as well as an auto-document feeder makes this printer an outstanding option for individuals and families that are on a stretched budget.

Canon Pixma MX7600-The Canon Pixma MX7600 is a multifunctional printer and this version is a enormous improvement over the last one. With new features such as an upgraded control cockpit, auto duplexer and a huge number of faxing options, the MX7600 is a very fine value.

Samsung CLP-600N-This color laser printer will make a great addition to the family or small office. It is network complete and has the speed and duty cycle and printing superiority that is desirable. The Samsung CLP-600N prints at 20 pages per minute in both color and black and white. With a 2400×600 dpi resolution and a duty cycle of up to 45,000 prints per month makes it a first-rate value. The sole downside is that the duplex printing is manual, but manual is better than nonexistent.

Xerox Phaser 6110B- This is your bargain color laser printer on your list, thus buyers do not get higher-price features such as print speed (17 ppm black and white and 4 ppm in color), duplexing or a long duty cycle (24,200 pages per month). The Xerox Phaser 6110B does, nonetheless, have 2400×600 print quality, optional networking, and a few sophisticated print features such as watermarking. This is not the printer for a busy office but it’s a superior alternative for the small or home office.

I’m an experienced foreclosure investor, and generally know the risks of buying foreclosed properties at auction. However, there is a property I’d like to purchase that has a substantial tax lien attached to it, and I’m not sure how much I should take that into consideration. Exactly how often does the IRS exercise its redemption rights in foreclosed properties? Are there any particular factors that make the IRS more inclined to redeem a particular property?

I would like to learn how to invest in RE. I would like to learn how to buy, sell, rent and flip properties as well as invest in notes and liens. Are there any Guru’s out there who would like to show a newbie the right path to solid returns?

Due to the current economic crisis, the housing market has been in turmoil for well over a year and, as a result, there has been an enormous increase in house repossessions – many of these end up at auction. Repossessed homes sold at auction typically go for anything between 20% -50% less than their market price, meaning they pose extremely good value for private buyers and investors alike.

Although there are some horror stories concerning repossessed houses being inhabitable or having no kitchen and bathroom, most repossessions are in a good state of repair – they are simply houses taken back by the bank after their owners could no longer afford payments on their mortgage.

If you are interested in buying a repossessed property at auction, look out for the property section of your local paper: estate agents sometimes advertise such houses and call interested parties to bid. Also, you can subscribe to a property auction mailing list; the company in question will then send you details of following auctions, either by post or via e-mail.

Considering the following tips might help to succesfully buy repossessed house at auction:

* Be knowledgable about auctions and repossessed homes for sale by doing research before the purchase: if you are not familiar with property auctions, visit a couple to become well acquainted with them. All properties in the auction will be in the auction catalogue, with detailed description|description and guide price, and conditions of sale: these are legally binding, so make sure you read carefully

* If you are interested in a property, always visit it before the auction starts – do not rely on the catalogue description. You will need to see the building with your own eyes to make sure it is in satisfactory condition. It is necessary that you get an inspection done on any house you are interested in, in order to identify structural problems if there are any.

Primelocation.com can provide you an idea of how much similar properties sell for in a particular area, so you can bid accordingly, and upmystreet.com can give you general information about an area, such as crime levels, socioeconomic background and amenities.

* Be sure of your budget prior to the auction and do not exceed this. It is easy to get carried away with bidding in the auction room, but it is important to hit your budget for affordability reasons. If you are not sure that you do so, consider taking somebody with you to the auction or get an auctioneer to bid for you.

* Bidding at auction: you will be able to get access to a selling pack regarding any properties you are interested in, and this will hold details of local authority and environmental searches, leases, title deeds, and fixtures and fittings form (outlining all fixtures included in the sale).

If you are buying a house for letting, it is important to know a little bit about the area you will be purchasing into. Most importantly, the rental market there should be strong – towns or cities with hospitals and major universities are very likely to have a considerable number of tenants.

* Arrange finance or a mortgage prior to the auction: If you bid on a property and win the auction, then you are legally required to pay a 10% deposit on the day and complete within 20-28 days. If you cannot complete within this time you will lose your deposit, so make sure you have the required funds in place.

It is important to also consider the cost of any refurbishment needed, as well as any other associated costs, such as solicitor’s fees, insurance, and stamp duty. For properties costing over £175,000, stamp duty is 1%, 3% on houses in the £250,000-£500,000 bracket, and 4% on property worth in excess of £500,000.

Michael O’Flynn, head of content for FindaProperty.com, states:

‘In recent years auctions have become an increasingly popular way to buy and sell property; so much so that the number of flats sold at auction annually has increased by 40% since 2000. Over the same period, the number of houses sold has increased by 30%.

Provided you know what you are doing, auctions can be a great way to make a quick sale and the perfect place to pick up a bargain.

The lack of mortgage finance and a rise in the number of repossessed properties means that this trend will probably continue in the coming year.

However, buyers with little experience should approach the auction room with caution. Seek professional advice, set a limit beyond which you will not bid, and be sure to do the due diligence before you enter the auction room. Once the hammer comes down you have only 28 days to complete – so be sure you have the finance in place and know exactly what you’re bidding on’.

http://www.commercial-modification.com

The failure of the nine banks that were closed down by the Federal Deposit Insurance Corporation (FDIC) offers an important lesson for financial institutions.  Those banks could have survived if they had increased their efforts to allow more commercial loan modification deals for their troubled borrowers.  It had been observed that most of these companies were negatively affected by the unusually large number of commercial real estate loans in their credit portfolios.

Presumably, the failure of the nine banks started when more and more property owners became late in in their monthly payments.  Because of the financial crisis, many of the borrowers could not help it but default in their obligations because their capabilities to repay the loans have been badly compromised.  This is easy to see because of the sharp increases in vacancies for shopping centers, hotels, business complexes, investment properties, warehouses, strip malls, office buildings, multi-tenant buildings and apartment buildings that have caused significant declines in cash flow.  And as more and more borrowers joined the ranks of those in default in their mortgages, the banks with the most number of such type of loans were the first to feel the effects as their incomes began to plunge down correspondingly.

It no longer matters whether the decision of the banks to  provide such a number of loans was prudent or not.  Because the real estate industry was booming at that time, it is easy to see that they merely wanted to maximize the incomes of the financial institutions.  The problem could have started when the market reversed and the property owners began to be late in their payments to stop paying altogether.  And this was the failure to be more aggressive in looking for various solutions, such as a commercial loan modification.  

Try as they might, the banks would have been incapable of forcing the property owners to come up with the mortgage payments when their businesses are failing to generate enough income in view of the state of the economy.  A commercial mortgage refinace would have been helpful in providing the owners with more time to find a solution for their situation and then regain lost ground, and the income of the banks would not have been greatly affected in a similar way as in a foreclosure.  Foreclosure should really be the last alternative because it does not help the banks at all if the foreclosed properties could not be sold quickly to produce the money that is more valuable for the their lending business.  

Therefore, it may be a wise decision for the banks to examine more closely the possibilities for a commercial loan modification.  Even if the monthly payments made by the borrowers would be reduced, this is much better than zero payments.  Also, the commercial borrowers might be able to get back on track and increase their monthly payments again in the future.  It therefore makes sense if banks tried to be more adjustable with their rules, especially if the economy is not doing well.  Cooperating with borrowers in searching for an answer, such as a commercial loan modification, could be a wise move for the banks.

The Obama foreclosure rescue strategy makes sure that there are more new loans available in the housing market, recommends the approval of more loan refinancing applications, and stimulates an increase in the number of permitted loan modifications by banks and lenders.  The Helping Families Save Their Homes Act, which was signed into law by the President himself in May 2009, supports the foreclosure initiative.  This legislation was designed to make some adjustments to the Hope for Homeowners Act that was then given the goal of aiding borrowers who had outstanding mortgage loans with values that were more than the selling prices of their homes.

One of the key factors in the Obama foreclosure rescue initiative is to help homeowners in their goal of convincing the lenders to provide them with a refinancing of their loans to minimize the possibility of a foreclosure because their monthly payments will be more affordable.  To become eligible for participation in the program, the outstanding loan amount of the borrower should not surpass the prevailing market price of his home by more than five percent.  Another factor in the Obama strategy is to provide an incentive to the lender every time he permits a loan modification that has the effect of reducing the monthly payment so that it does not exceed 31 percent of the homeowner’s monthly salary.  The Obama foreclosure rescue strategy also helps Fannie Mae and Freddie Mac offer more new home loans by infusing more capital into these two corporations.

But statistics gathered during the month of September 2009 did not speak well for the Obama plan because it failed to have a substantial influence on foreclosures and home prices.  Those who were against the plan quickly capitalized on the observation and claimed that it had little chance of succeeding because of its deficiencies.  But those who are in favor of the Obama foreclosure rescue strategy pointed to several positive results.  The initiative is touted to be the primary cause for the reversal of the downtrend in home prices and the increase in foreclosure filings in several states.  But those who do not favor the President’s program were not satisfied, pointing to the small number of approvals for loan modifications despite the large number of homeowners that should have qualified.  Also, some critics of the Obama foreclosure rescue plan have criticized the lack of a strong economic basis.  But the Obama Administration continues to support the program and has claimed that a milestone was achieved when more than 500,000 applications for loan modifications were approved. More details can be found at http://www.bestforeclosurenews.com

Prescription medicine help is available to millions of Americans. You’ve in all probability heard or seen ads or commercials that residents could receive their prescription medicine for free, or at a low cost. Have you seen the Help For Prescription bus? Television celebrity Montel Williams talks about an association who helps individuals get help if they can’t find the money for the prescription medicine they are prescribed. These prescriptions help them with their illness. There is even an orange van which crosses the countryside to publicize free medicines programs. If cost saving measures aren’t sufficient to help meet the expense of prescription drugs, there are a number of plans calculated to assist you stretch your medical dollar. Hospitals, medical schools, government agencies, and maybe pharmaceutical companies themselves provide a assortment of strategies to help those in need of help. You’ll likely have some help applying for these programs, and might have to offer specific personal financial details, however the benefits might be enormous.

Medications could be enormously expensive and even more so if you don’t have presciption insurance. This is specially true with cancer patients.

For people that are undergoing chemotherapy treatment, the requirement for anti-nausea medication is pretty important because of the upset belly that the chemotherapy creates. Then, the chemotherapy has caused you to become anemic, so you have a prescription for an iron supplement. You feel like a Yo-Yo. It isn’t uncommon for a cancer patient to have medication costs as large as their house payment..or bigger!

What are you to do if you must have help paying for your drugs?

You definitely do not want to stop taking your medication. There are a lot of programs available which provide free and reduced cost prescription assistance.

• Social Worker- Most hospitals have got a social worker who can help you uncover grants and other plans aimed at helping you with your health care needs. This must be your earliest stop in looking for help. Always enlighten your medical doctor if you can’t pay for medicines or treatment. He or she might know of a program firsthand to support you, too.

• PPARx- The Partnership for Prescription Assistance is a company intended at helping persons who can not pay for their prescription medicine. They have produced a database of more than 400  plans and in excess of 5000 prescriptions provided for reduced or no cost aid. They lend a hand in determining what you are suitable for and applying for the help. The help is free and offered online.

• Prescription drug Companies- A great number of patients wouldn’t assume pharmaceutical companies provide help, however several do. Gsk provides a prescription medication plan for those taking their prescription medicine and cannot meet the expense of them. Locate the producer of the drugs by asking your general practitioner or pharmacist and check their website for prescription assistance programs.

You are not the only one with this difficulty. There is no basis to be self-conscious.

Prescription medicine help is available to millions of Americans. You’ve in all probability heard or seen ads or commercials that residents could receive their prescription medicine for free, or at a low cost. Have you seen the Help For Prescription bus? Television celebrity Montel Williams talks about an association who helps individuals get help if they can’t find the money for the prescription medicine they are prescribed. These prescriptions help them with their illness. There is even an orange van which crosses the countryside to publicize free medicines programs. If cost saving measures aren’t sufficient to help meet the expense of prescription drugs, there are a number of plans calculated to assist you stretch your medical dollar. Hospitals, medical schools, government agencies, and maybe pharmaceutical companies themselves provide a assortment of strategies to help those in need of help. You’ll likely have some help applying for these programs, and might have to offer specific personal financial details, however the benefits might be enormous.

Medications could be enormously expensive and even more so if you don’t have presciption insurance. This is specially true with cancer patients.

For people that are undergoing chemotherapy treatment, the requirement for anti-nausea medication is pretty important because of the upset belly that the chemotherapy creates. Then, the chemotherapy has caused you to become anemic, so you have a prescription for an iron supplement. You feel like a Yo-Yo. It isn’t uncommon for a cancer patient to have medication costs as large as their house payment..or bigger!

What are you to do if you must have help paying for your drugs?

You definitely do not want to stop taking your medication. There are a lot of programs available which provide free and reduced cost prescription assistance.

• Social Worker- Most hospitals have got a social worker who can help you uncover grants and other plans aimed at helping you with your health care needs. This must be your earliest stop in looking for help. Always enlighten your medical doctor if you can’t pay for medicines or treatment. He or she might know of a program firsthand to support you, too.

• PPARx- The Partnership for Prescription Assistance is a company intended at helping persons who can not pay for their prescription medicine. They have produced a database of more than 400  plans and in excess of 5000 prescriptions provided for reduced or no cost aid. They lend a hand in determining what you are suitable for and applying for the help. The help is free and offered online.

• Prescription drug Companies- A great number of patients wouldn’t assume pharmaceutical companies provide help, however several do. Gsk provides a prescription medication plan for those taking their prescription medicine and cannot meet the expense of them. Locate the producer of the drugs by asking your general practitioner or pharmacist and check their website for prescription assistance programs.

You are not the only one with this difficulty. There is no basis to be self-conscious.

He got federal income tax taken out of his paychecks monthly. The IRS decided he owed for 2004 and 2005 even after federal withholding. He made 51,000 a year. His house was appraised at 107,000 with a mortgage of 93,000 (balance is 78,000). he isn’t willing to pay more taxes than his federal withholding. I agree with him, I’d refuse to pay for wars orchestrated by this government. Food on the table is more important.

As for the 3 vehicles (all 2006 models), he gave them to me as gifts. I properly paid the gift tax on each car. He reimbursed me for the taxes and title fees. I fail to see how this is illegal. It was a legal gift transaction.