I wanted to give you an update on a program that can be awesome for selling your houses when doing short sales and foreclosures.  It can also be great if you’re buying and holding.
The HUD 203K program is designed for properties that need repairs or need to be rehabbed. Keep in mind that the HUD 203k program doesn’t loan the money, they insure the money for the lender making the loan.
This program can be excellent for investors in the short sale and foreclosure arena, because you can now sell to potential buyers who get qualified for the HUD 203K program. It’s also a great tool for real estate agents that deal with short sales and foreclosures (who doesn’t nowadays, right?).
The HUD 203k loan program is different than a typical rehab loan, because with a rehab loan, the term is usually temporary until the property is completely rehabbed, then the loan will be converted into a long term loan. With HUD 203k, the loan is made in full and set as a long term loan from the beginning, based on the estimated “after repaired” value. The purchase is made, and repair funds are put into escrow and used as needed.
The eligible property must be a one to four unit property that is more than a year old. Also, a single family home can be converted to multi-family, up to four units, or a multi-family can be converted to single.
Bottom line, this program is awesome, and you should know about it when doing your short sale and foreclosure investments, or even just wholesaling! This gives you a great tool for your arsenal when it comes to finding buyers, or providing ideas for their financing. It also keeps you from having to do rehabs yourself before selling. Just find it, get it under contract, and sell it! I wish they would have had this program a few years ago, it would have saved me some time and money with my short sales. This is an excellent tool for short sale and foreclosure businesses.
You can visit our main site any time for more foreclosure training techniques.
You can get more information on the HUD 203K program on the HUD website.

David Corbaley

This video taken from thinkbigworksmall.com is a complete eye-opener to what is REALLY going on with this foreclosure/bank/economic mess.

Stick with it, it’s only a couple of minutes, but the picture actually becomes VERY clear. This is unbelievable if you didn’t know it. I didn’t..

Watch it NOW – just click the play button on the video to your right >>>

I told you it was an eye-opener! No wonder we’re in such an economic mess.

Do me a favor and post your thoughts on this in the comments below. Don’t hold back, I really want to know what you think.

David

It appears that those in charge of Fannie and Freddie are going to prevent them from introducing new loan products into the market for awhile. They are preparing for the expiration of the Federal Reserve’s mortgage purchase program.

The FHFA is attempting to reduce the two organizations, and claim that the new role should be focused on expansion of loss mitigation programs and recovery, instead of expansion. The goal is to move them away from being substantial portfolio holders in the market, since their existence is only because of taxpayer buyout.

I would certainly like to know your thoughts below.

Both of these giants have borrowed billions of dollars from the government, just to survive. Those are taxpayer dollars. The FHFA called these numbers “troubling”.

The only hole in the argument seems to be following: even the FHFA admits that almost all non-governmental organizations have withdrawn their capital from the housing market. Fannie and Freddie have invested more. If they now begin to reduce their exposure, who’s going to fill the void? What if private capital and investment doesn’t replace them in the market?

Of course, the CEO’s of these companies received multi-million dollar bonuses for their “effort” in the recovery. Recovery? Have they looked around lately? I don’t know about you, but I’ve always been taught that you get paid for a job well done. This job is NOT done yet.

If you think about it, aren’t they somewhat at fault for this same mess we’re in? I guess I’m confused…

Let me know your thoughts by leaving a comment.

Get great real estate investing info at top foreclosure training

David Corbaley

Note: Reading this post will dramatically increase your success ratio!

I wanted to add a note about dealing with homeowners of property that may be in the short sale process.

In the hundreds of deals I’ve done over the past several years, I’ve come to realize a very important thing:

Homeowners in foreclosure are people too! As a matter of fact, they’re people that need guidance, support and encouragement. Can you imagine – I mean, really, take a moment and think of what it would be like, knowing that you’re most likely going to lose your home. Your family is counting on you, and you have failed. This is what they think.

The number one thing you can do, is show that you care. Let me say that again; The NUMBER ONE thing you can do, is show that YOU CARE.

These people are going through one of the most difficult and depressing times in their life. If you can step up to the plate, give them your promise that you’ll do your very best to make a bad situation better, they will trust you. Especially if you walk your talk.

I’ve been able to gain business from homeowners over and over, AFTER they had already talked with other people that offered solutions. Why? Because I was genuine. Because I lent an ear, and listened to their pain, and showed compassion. See, I’ve been through it. I’ve been foreclosed on. I’ve lived in my truck. I KNOW what they feel. Do you have to experience this to be compassionate? No Way!

Short sale investing, or performing duties as a real estate agent doing short sales require just this one simple, real method to absolutely dominate your market (after you’ve conquered the marketing beast, of course). If you have leads coming in, this is the true way to convert those leads into short sale business.

Show that you care, and you will be rewarded with two things; the trust and business of your client, and the feeling of knowing you truly did your best to help someone in need.

You’re welcome to download a free short sale ebook with more information.

If you like this blog post, please subscribe here to receive new ones!

Sincerely,

David Corbaley

We’re Better, Badder, and more Awesomer than before! (is that a word?)

Top Foreclosure Training has undegone some massive positive changes in the last few months!

We’ve entirely re-created our short sale home study course to reflect the changes in today’s foreclosure investing markets.

Our member’s area has been completely revamped and has countless tools available for members inside; short sale training videos, audios, documents, training replays, you name it, it’s there.

Our intent is to provide world class short sale training so you can make the most out of your investing career. Foreclosures are at an all time high, and things aren’t getting better anytime soon, have you noticed

We have excellent training programs available for both beginners, and advanced investors who want to be successful with foreclosure investing. We can provide negotiation services, funding for your deals (transactional funding), one on one coaching, EVERYTHING you could possibly need to be successful!

If you haven’t yet, get our FREE short sale e-book series for the best foreclosure training available and learn what REALLY works!

The regional markets that had received the highest historical appreciation rates during 2003 to 2006 also had some of the largest price adjustments over the past 24 months.

States that had these incredible high real estate returns, like California and Florida, have also seen the highest incidents of foreclosures. Everywhere you turn news reports share the dismal news on highest foreclosure rates in over a decade and an apparent bubble bursting effect.

Real estate, like any form of investment, has cyclical patterns that are dependent upon supply and demand. Good real estate market cycles attract developers and speculative buyers. Optimism kicks in and both buyers and developers exuberance results in over building and buying, resulting in excess “for sale” inventory.

Simple economics indicate that supply must be equal to or less than consumer demand otherwise prices will fall to attract more buyers. Qualified buyers hear local news reports indicating that prices are falling and many wait to see a bottom before executing a purchase, therefore exacerbating the situation further.

Market Bottom

A market turnaround can only occur when the excess inventory is consumed by: 1.Institutions (banks, lenders) that can weather a market correction. 2. Property is bought by financially qualified buyers. 3. Current property owners are financially capable of holding property for a longer period of time.

There is a silver lining to our current real estate cycle. 2008 will mark the bottom of the real estate cycle in the vast majority of all U.S. regional markets. One of the best indicators to demonstrate a bottoming is the recent news reports of high foreclosures by lending institutions. A foreclosure is always the last result for any property owner.

Foreclosures are a sure sign that property owners have hit bottom, so much so that they find it necessary to give up the property. This is not to say that a new booming market cycle begins. But it is an excellent indication that it cannot get any worse, thus a bottoming.

Locating Market Bottoms

New markets are already starting to emerge that produce optimal results for investors and homeowners alike. However, not every region moves at the same pace. This is when it is important for any property buyer to investigate their regional buying are to find out whether it has already bottomed.

The only way to accomplish this is through understanding the regional real estate forecast in your area. Experienced investors know the importance of measuring market trends and are rarely caught with undesirable properties during a market decline. Unfortunately most average investors and homeowners are completely unaware of how to do this.

There really is no reason for this to happen since many resources now exist to help you measure market trends. It is far simpler and less expensive to know a regional market trend since the advent of computers and the internet.

Managing Real Estate Trends

Investors realize faster returns under any market condition so long as they can learn to manage and calculate the timelines that produce equity and cash flow gains.

The rewards from sound real estate investing are tremendous. Real property has been and will continue to be the single most significant source for creating individual wealth in the United States. Perhaps one of the most important reasons for these results is that most people make their real estate wealth while sleeping.

Property holders see incremental returns in value over time with little or no effort. This is what is referred to as appreciation in your asset. Almost every investor knows that this is the most compelling reason to invest in purchasing real property.

What is amazing is that the majority of homeowners fail to calculate their expected returns from appreciation before executing a contract to buy a specific property. Instead, time and time again, buyers purchase with an expectation of both short term and long term appreciation without any sound technical or economical guidance.

This in itself is not catastrophic since we all know that given enough of time the property almost always appreciates over the long run. But during an economical real estate slow down many regions may receive years of negligible appreciation and possibly even declines in values.

Would it not be wonderful to take the extra time to project how much time the appreciation will take and the amount of money you plan to make on every property?

Even when putting a bet on a table in Las Vegas we all have expectations of how much return we are expecting if we win. Or even a better example is any state lotto. Each store posts how much the current “pot” of earnings which is expected to be distributed to the winner. Sure there is no guarantee that you will be the winner, but at least you know what to expect to win.

Now lets apply this to purchasing a property. Many of you have already bought your first property. Did you have an exact number for appreciation over the first five years of ownership? Estimating your appreciable real estate returns over the short and long-term does not need to be a cumbersome or difficult task. In fact once you are armed with a few tools it can be as simple as calculating your lotto returns.

Taking the time to understand the dynamics of current economic conditions and applying the results before making an offer to purchase a property can and will yield you greater financial returns. All forms of financial investing (stocks, bonds, time-deposits) include a component of estimating the expected gain over time.

Measuring your expected returns can and should be a fundamental part for anyone interested in real estate. There is no reason for anyone to be caught with unwanted property during a market slow down.

In our business, we have the best of all worlds, since our risk is minimized by the type of transactions we do. The main thing to remember, is pricing the houses competitively will increase your chances of success.

If you’re serious about success with short sales, grab a copy of our awesome free e-book and get the RIGHT kind of foreclosure training

Hot Issue! – Double Closings

Every now and then, somebody asks me if I’m scared to be investing in real estate in such a turbulent market. When they ask this question, they usually want to know two things. First, how am I getting all the deals financed, and second, am I scared the market will turn for the worse (value decline) and I’ll end up with a house I can’t sell. These are very valid questions, and questions of a person who does not understand the value of (or has never heard of) the double closing (also called a simultaneous closing).

So what is a double closing? Simply put, it’s a transaction where somebody buys a property, and turns around and sells it immediately afterward, many times the same day. There are pros and cons to this type of transaction, both of which we’ll cover in this article. But first, let me tell you that in today’s market, the pros very much outweigh the cons!

Before we go any further, let’s start by saying that this type of transaction is legal, always has been legal, and always will be legal (although I am not an attorney). There is absolutely nothing wrong with buying a house and turning right around and selling it the exact same day. It is happening countless times, in every single state, and every single day in this nation. David and I have done countless numbers of them, and our students have done, and continue to do, the same.

Ok, so what are the pros of this transaction? Well, the biggest benefit to this type of transaction, and the main reason most investors use it, is that it allows you to buy and sell a property without funding it. For those of you who have watched late night television, THIS is how you can buy and sell real estate “with no money and no credit!” Yes, this is the answer and the magic bullet for those of you who were wondering how someone can possibly buy and sell property with zero credit and no money! Well, it is done all the time, and the person buying and selling the same day is never asked about funds or credit score. It’s an awesome way to close deals!

Another huge benefit to closing this way is that you can flip properties without taking possession of the property for more than a few minutes. What this means is that you can buy and sell houses in a turbulent market, even a severely declining market, and be protected! And if you use incorporate Land Trusts in your double closings, you never even show up on title anywhere! So nobody can look to see how many properties you are flipping (if you wanted to hide it). So as you can see, there are many HUGE benefits to the double closing.

Ok then, you ask, what are the cons to doing this type of closing? Well, there can be a few challenges to this closing. The first is the timing of the whole thing. You need to get the seller and your end buyer lined up to close on the exact same day. And if you’re incorporating the double closing with a short sale, this can be very tricky and stressful. A second con to this type of closing is title seasoning.

If your end buyer is using traditional financing to get the deal closed, and they have title seasoning requirements, you are going to have some hurdles to cross before being able to get it closed, and it could very well kill the deal. If you are doing a traditional double closing without Land Trusts or Options, then your end buyer may have to use a “non conforming” lender who does not require title seasoning. Land Trusts and Options (to a certain degree) help with the title seasoning, and that’s the topic of another discussion.

So as you can see, there are some challenges to the double closing, but it is a fantastic tool that you can use in your real estate business to minimize your risk with buying and selling real estate, especially in a tough market like what we have today. Learn the secret strategies of buying foreclosed homes!

We wish you the best with your investing!!!

You’ve seen it on the evening news:
“Terrible Investor dupes homeowner out of everything by tricking them into signing away their title!”

Now, we know you wouldn’t do this on purpose, but many investors are doing it all over the country, every day. Most of them don’t even realize they’re doing it, they’ve just been taught by someone who doesn’t care (or know themselves!).

Are you using a Land Trust? Are you recording a deed? Guess what; If you answer yes, you are most likely falling into that very dangerous trap! You need to take action and learn the proper methods immediately!

Using a Land Trust can be fine, provided you use it correctly, which most people don’t. You should wait until you’re ready to close before assigning Beneficial Interest, and if you think the homeowner won’t be available, you should have specific wording in your agreement that states even though you are doing the assignment of Beneficial Interest, it SHALL NOT be executed until the time that you specify. That assignment form should also be held in an escrow account or at your closers office.

If you record any type of deed, or assign beneficial interest, you’ve just crossed a line that can get you into LOADS of trouble. You have taken away any possibilty of that homeowner being able to pursue any other means to solve their foreclosure problem.

If their house then goes to foreclosure, and they decide that you had anything to do with it, or that you didn’t do enough to help them during the situation, all they need to do is go share your transaction with an attorney and guess what; You’d better be ready to lose some sleep. That attorney is going to do his/her best to chew you up. Best case, you’ll spend alot of money on your own attorney and lose alot of sleep. Not to mention get plenty of new grey hair.

If you sign up your deals correctly, you shouldn’t have anything to worry about. Whenever someone says “get the deed”, RUN. Run the other way as fast as you can, because they don’t know what they’re talking about.

Our students know exactly how to sign up deals. As a matter of fact, we teach them MANY different ways to sign up deals, so everyone will have a method that works.

If you want to know what our students know, and how to have true success in the short sale arena, Learn about buying foreclosed homes.

Please don’t be the investor on your local nightly news! Learn the RIGHT way.

Imagine the short sale opportunity with nearly 3.5 million foreclosure related filings in 2009. I’ve taken some info from the AP and shared it with you here. This is amazing.

According to the AP, the federal effort to help the foreclosure crisis is simply overwhelmed by the amount of defaults, now being blamed on the massive unemployment rate, which has been caused by the housing bubble bursting and mortgage crisis!

What a vicious cycle we’re currently in. The foreclosure rate has risen an incredible 5% since summer.

The foreclosure crisis affected over 938,000 in the third quarter alone, compared with 890,000 in the previous quarter.

Although many experts are saying that we’re coming out of the recession, it’s predicted that the unemployment rate, which is currently at a 26 year high, will continue well through the middle of next year.

There were over 88,000 homes repossessed in September alone, which is an incredibly large number. The government and mortgage lenders simply cannot keep up, and the amount of defaults are outpacing the help that can be provided.

Although this is unfortunate, there is also opportunity to help. By having the knowledge that enables you to step in with a solution, you can help the homeowner AND the lender both, by doing a short sale. The other great thing about this method, is the income that can be made be doing so!

This is an unfortunate time, but it isn’t going to go away. We can all be part of the solution.

I’ll update the blog on more stats soon.

We’re working on something BIG, and you should see it in about 2 weeks from now. Keep an eye out!

Have a great weekend,

David Corbaley

As usual, great questions! I answered 3 of them. Enjoy!

Have a GREAT weekend!

David