REI Marketing Tips

If you’re going to be a PreForeclosures investor, knowing what new foreclosures are being filed is very advantageous. This information gives you the inside track as to which new foreclosure filings are being recorded in your respective county, but what is the best way to find the filings?

When the bank decides to foreclosure on a homeowner’s property, they file what is often called a Notice of Default or Notice of Trustee’s Sale. This is done at the local county courthouse of the county that the respective property is located in. The bank sends this notice and it is posted as public record. That means that anyone who can find the county courthouse records can see this public information.

If you’re going to be a PreForeclosures investor, knowing what new foreclosures are being filed at the county courthouse is very advantageous. It gives you the inside track as to which new foreclosure filings are being recorded in your respective county.

There are many different methods to gathering this data. The first, and most obvious is to go down to your local county courthouse and mine the data yourself. While this method is free, I do not recommend it. It is very time consuming, and if you don’t have any experience, it can be a frustrating and time wasting task.

Fortunately for us, in today’s information age, many county courthouses put their data online. You should visit the website of the county that you’re interested in and find out if they post their public announcements online. If you do find the public announcements online you’ll be able to read the new foreclosures on a daily basis, as they are filed.

Some counties, however, aren’t as Internet savvy as others, and don’t yet post their information online. For these counties, I recommend going to a list provider who gathers such data, and paying for it. There are many businesses out there that are based on going to the county courthouse, gathering new foreclosure filings, putting them into a list format, and then selling that data. Most list companies either email it or fax it to you: some do it daily and others do it weekly.

You’re probably wondering why I would recommend paying for information that is free to the public? The answer is simple: it’s a much better use of your time and energy to outsource this function to a company that specializes in mining this data.

Another method of obtaining this is information is thru a title company. A lot of title companies compile and send out lists of foreclosures for free. While this is a great “free� resource, the data coming from title companies isn’t necessarily the freshest, newest data. While you might not be paying for the information, it’s not very valuable if you’re finding out about a foreclosure that was filed a week or two ago. Chances are those people have been already contacted by a lot of other investors, realtors, mortgage brokers and bankruptcy attorneys offering services to them.

The best way to find preforeclosure homes is to use a list provider. Finding good reliable data is the first step if you want to market to homeowners in foreclosure, and it’s very often worth it to pay someone (or a company) to mine this data for you. Once you’ve developed a system to have this information delivered to you, your marketing becomes a lot easier.

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So where are you investing, and what are the housing prices looking like in your local market?

Falling prices don’t scare me, since I often sell with owner financing, and if the prices fall to far I can always negotiate a nice discount with the lender.  I figured that many of you would be interested in some of the data and statistics below:

S&P/Case-Shiller index shows prices down annualized 2.7%

 

By Rex Nutting, MarketWatch

Last Update: 10:34 AM ET Jun 26, 2007

WASHINGTON (MarketWatch) — Home prices in 10 major U.S. cities dropped at the fastest pace in 16 years during the 12 months ending in April, according to Standard & Poor’s Case-Shiller home price index released Tuesday.

 

Home prices in the 10 cities fell 2.7% on a year-over-year basis, the largest decline since September 1991. Meanwhile, prices in 20 cities dropped a record 2.1% year over year.

 

The 10-city index began in 1987. The more comprehensive 20-city index goes back to 2001.

 

Price appreciation has slowed for 17 consecutive months. Nationally, prices have doubled since 2000.

 

Fourteen of the 20 cities showed falling prices in the past year, led by Detroit (down 9.3%), San Diego (down 6.7%) and Washington (down 5.7%). Seattle had the largest price gains over the past year at 9.6%, while prices are up 7% in Charlotte, N.C., and 6.4% in Portland, Ore.

 

Miami’s appreciation turned negative in April for the first time in this cycle; prices in Miami, which had risen 25% in the year through April 2006, are now down 1% in the past year.

 

“No region is immune to weakening price returns,” said Robert Shiller, chief economist for MacroMarkets LLC and the co-creator of the index. Even in regions such as the Pacific Northwest or the Southeast, where prices are still rising, the gains have been slowing.

 

A glimmer of hope shone in a few cities — Atlanta, Boston, Dallas and Denver — as they recorded price increases and stronger annual rates of return. “A few more months of data will reveal if it is a seasonal issue or the beginnings of a recovery in these markets,” S&P said in a release.

 

Falling home prices have squeezed many borrowers who have been able to extract equity from their homes or refinance to avoid a sudden increase in mortgage payments as the interest rate on adjustable-rate loans resets.

 

As a result of falling prices, foreclosures are rising nationally, especially in regions with a weak economy, such as the Midwest, and in Sun Belt areas deemed bubble regions, such as Southern California, Florida, Nevada and Arizona.

 

The Case-Shiller index is considered a superior gauge of home prices compared to the median sales-price data released by the Commerce Department or the National Association of Realtors, because it tracks multiple sales on the same property and is therefore not influenced by a different mix of homes sold in a period.

 

Unlike the quarterly price index produced by the Office of Federal Housing Enterprise Oversight, the Case-Shiller index does not include refinancings. And, also unlike the OFHEO index, it includes homes with mortgages larger than the conforming limit of $417,000.

 

However, the Case-Shiller index is restricted to 20 cities.

 

The OFHEO index is up 4.3% in the past year, while the purchase-only OFHEO index is up 3%.

 

Case-Shiller details

• Atlanta: up 0.8% in April, up 2.1% year-on-year
• Boston: up 0.6% in April, down 4.5% year-on-year
• Charlotte: up 1.2% in April, up 7% year-on-year
• Chicago: down 0.7% in April, up 0.2% year-on-year
• Cleveland: down 0.2% in April, down 2.8% year-on-year
• Dallas: up 1.3% in April, up 2% year-on-year
• Denver: up 0.5% in April, down 1.8% year-on-year
• Detroit: down 2.5% in April, down 9.3% year-on-year
• Las Vegas: down 0.8% in April, down 3% year-on-year
• Los Angeles: down 0.5% in April, down 2.6% year-on-year
• Miami: down 1.2% in April, down 1% year-on-year
• Minneapolis: down 0.5% in April, down 2.9% year-on-year
• New York: down 0.2% in April, down 1.5% year-on-year
• Phoenix: down 0.8% in April, down 4.5% year-on-year
• Portland: up 1% in April, up 6.4% year-on-year
• San Diego: down 0.3% in April, down 6.7% year-on-year
• San Francisco: up 0.2% in April, down 2.8% year-on-year
• Seattle: up 1.3% in April, up 9.6% year-on-year
• Tampa: down 1.1% in April, down 5% year-on-year
• Washington: down 0.5% in April, down 5.7% year-on-year
• 10-city composite: down 0.3% in April, down 2.7% year-on-year
• 20-city composite: down 0.2% in April, down 2.1% year-on-year

Rex Nutting is Washington bureau chief of MarketWatch.

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Don’t miss our next training call with Thomas Kish tonight, that you can watch LIVE over the internet.  Learn a simple short cut that we have been using for years to get LARGE unsecured lines of credit using his system.

It’s called the Ultimate Real Estate Investor’s Guide – how to create wealth without using your own cash.

Thomas Kish is the creator of a trademarked 60-day short cut to show you how to get a new $200,000 to $300,000 unsecured business line of credit for any real estate investment.

You can even use this money system for many other investment opportunities like:

1. Real Estate investing
2. Stock market investing
3. Starting a new business
4. Growing an existing business
5. Advertising
6. Creating an internet business
7. Writing a book or a screen play
8. Ebay business opportunities
9. Investing in livestock or race horses
10. Or any other business activity you can dream of

Please join Tom on a special LIVE call to hear all about his Ultimate real estate investor’s guide.

When?
TONIGHT:  Thursday, June 14, 2007

At 5pm pacific/7pm central/8pm eastern

How do you listen to the call?
Go to:  www.TomsTVShow.Biz
And click the play button when the show starts.

Why should you listen to the call?

Because Tom will explain how you can get your hands on CASH and a new $300,000 line of credit for all your real estate investing needs.

Some of the lenders even offer 0% interest for the first year. That’s FR.EE money.

This is so much better than hard money.

Here is Tom’s 4-step SOFT MONEY system explained in his own words.

The CashFlowExperts.Biz TM  step by step Guide.

By Thomas Kish, President of CashFlowExperts.Biz Inc.

Weather you play financial board games like Monopoly or CashFlow 101 or you do real estate investing full time: you need to know how to win the real money game.

The fastest way to win the game of money is to use leverage tools instead of your own money.

That’s why anyone that wants to win the game of money should go out and get several UNSECURED new business lines of credit.

You MUST have more than your immediate cash needs and put the excess cash in your checking account in order to win the money game. This is the only way to be ready when those juicy real estate deals or business opportunities come up suddenly.

This is how the rich get richer. And you can too if you know about how to get business lines of credit that don’t report on your personal credit report.

You just need to learn 2 very important things to take full advantage of these opportunities.

1. The interest rate on a line of credit is NOT IMPORTANT. Some of the lenders available in the Ultimate real estate investor’s guide offer 0% for the first 9 months and 3.99% there after.

The real question is “What is the COST of this money while you are using it�

If the money only costs you a few hundred dollars to use it for a year – then that is CHEAP money. You should be using this cheap money to invest in a piece of real estate that you can add huge value to.

You will get huge passive tax deductions in most allowable situations. And these tax savings will put real cash in your pocket. That alone may net you a 25% return on your money.

2. Get more than you need so that you have lots of extra cash to make the minimum monthly payments.

This also benefits you by keeping seasoned money in your personal account at all times.

Sincerely, Thomas Kish
President of CashFlowExperts.Biz, Inc.
——————————————————–

About Tom Kish.

Tom is an active full time real estate investor with 8 million dollars worth of real estate bought and sold in the last 2 years.

Tom Kish’s skills as both an investor and a real estate consultant are widely recognized throughout the industry.

His break-through program “The ultimate real estate investor’s guide� teaches you the insider secrets of using new business lines of credit instead of cash to successfully invest in real estate.

There is no one else teaching anything like this simple 4-step SYSTEM!

Frequently teaming up with other real estate professionals, Tom has shared the stage with best selling authors Robert Allen, Mark Victor Hansen, and Robert Kiyosaki . You can catch him speaking live at real estate expos and conferences all around the country.

As an accomplished entrepreneur with experience in multiple franchise businesses, Tom is committed to helping others create the financial security and balance between life and work they seek and deserve.

Listen to the call live on the Internet:
Tonight, Thursday, June 14, 2007

At 5pm pacific/7pm central/8pm eastern

How do you listen to the call?
Go to:  www.TomsTVShow.Biz
And click the play button when the show starts

Happy Investing,

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I stumbled across a great article on Kiplinger.com talking about the impact of short sales on homeowners.  I mean, what happens to the amount of debt that just “vanishes” when the lender takes a reduced payoff?

Frequently sellers ask me about this, and this article makes some great points.

The bank CAN issue a 1099-C….doesn’t mean that they WILL issue it.

We tell all of our Short Sale clients that we’ll do the best to negotiate a total release from the debt, however, we can’t promise them that.

Here’s another great analogy that I use when I talk to homeowners who are short sale candidates and they bring up this issue.  Let’s go with the example of the $300k debt and 260k SS acceptance, just like in the article.
The bank basically “gave” them $40k.

I ask them:

“Mr Seller, if I could give you a winning lottery ticket for $40k, would you turn it down because you would have to pay taxes on it?  Of course you wouldn’t”

Between that, the fact that the lender MIGHT issue them a 1099-C (not guaranteed that they will), and the fact that you can help them avoid a foreclosure on their credit report, should pretty much kill any seller objections they’ll have to working with you.

HAPPY INVESTING!

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Gainesville, FL was recently selected as the best place to live in America. What does this mean for you as a real estate investor?

Well, if you’re a buy and hold investor, read the article, and see what happened to the housing prices in Charlottesville, VA (ironically enough the location of my wife‘s alma mater, University of Virginia).

What makes the article even more ironic is that we are doing most of our investing in our local area, Bellingham, WA, which made the list as the #2 best place to live in America.

If you’re interested in our website, and how we market ourselves so someone can sell their Bellingham house fast, please visit our site.

Happy investing (and maybe happy moving?)!

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How Do I Find Homeowners Facing Foreclosure?

              If you are ready to become a real estate investor who primarily focuses on PreForeclosures, let’s first examine how you’re going to contact these homeowners.  If you can’t speak with a homeowner facing foreclosure, then you’re not going to be a very successful PreForeclosure investor.

              Unfortunately, you can’t just go down to your local foreclosure store and start talking to people!  Realize that a pending foreclosure, for most people, is a very personal, and often embarrassing situation.  Most people don’t advertise the fact that they’re having problems making their mortgage payments, which makes it difficult to contact them.

Don’t worry, however, since there are many methods to finding these people.  My personal favorite method of finding these homeowners is to have them contact me!  That way, I know that they are looking for help, and that they are motivated to stop the housing debt problem that they’re currently facing.

When the bank decides to foreclosure on a homeowner’s property, they file what is often called a Notice of Default or Notice of Trustee’s Sale.  This is done at the local county courthouse of the county that the respective property is located in.  The bank sends this notice and it is posted as public record.  That means that anyone who can find the county courthouse records can see this public information.

If you’re going to be a PreForeclosures investor, knowing what new foreclosures are being filed at the county courthouse is very advantageous.  It gives you the inside track as to which new foreclosure filings are being recorded in your respective county.

Another avenue to finding homeowners facing foreclosure is to have them find you!  This may sound counterintuitive, but when a homeowner calls us looking for help, we know that they’re really serious about stopping their foreclosure.

How would a homeowner find us if they wanted to stop foreclosure?  If we advertised, they could find our name and number.  This could include print or online advertising.

We could also network so that others know we are in the foreclosure prevention business.  Classic examples of people to network with would be people who would hear about someone being behind on mortgage payments.  This list of people could include realtors, loan officers, bankers, attorneys, even the local mailman, just to name a few.

If you’re serious about becoming a PreForeclosure investor, you have to get your name out there so people can contact you about help with their home.  You can do this by contacting them directly, or marketing yourself and your company so that the homeowner can contact you directly.

If you’re interested in more PreForeclosure Marketing Tips and having them delivered to you via email, then please sign up at www.BestForeclosureSystem.com

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I just finished watching a fantastic documentary, called In Debt We Trust.
It’s about the debt problem in the United States today.

I’m primarily a PreForeclosure Investor, so I found it absolutely fascinating.  I strongly urge everyone on this board, especially if you work in the PreForeclosure arena, to check out this film ASAP.

I saw it on LINK TV, which is on Directv channel 375 or Dish network channel 9410.  I believe that it’s still playing in some theaters, and obviously you can rent the DVD as well.

To me, the most interesting part of the film was about how basically the big creditors in America are making absolutely obscene profits.  It then showed what some “lenders”, namely check cashing places and car title loan operations are making on their loans: some the APRs worked out to annual rate of over 300%.

THAT IS NOT A TYPO.

It’s a shame that big business in America is really taking advantage of the uneducated folks in this country.  I especially find it funny when people think that PreForeclosure investors such as myself are taking advantage of people.  It couldn’t be further from the truth.  In fact, often times we are helping homeowners get out of the terrible loans that corporate America put them in.

Many of these mortgages were underwritten to set these homeowners up for failure.  It’s time that people started educating themselves about the credit process.  Let’s face it, when I went to school, no one educated me about personal finance: how paying bills late killed your credit score, or how important your credit score actually is.

I encourage everyone to see this film.  I’m also looking into how we can help our clients by providing them with an outlet to view the movie.

That’s all for tonight.  But if you’re investing in PreForeclosures, please do yourself a favor and watch this movie as soon as you can.  You’ll be glad you did, and you’ll be able to speak more intelligently, and more passionately, to your prospective clients.

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