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GSE Foreclosure Starts Start Coming Faster in 2010

The level of foreclosures starts in mortgages owned by Fannie Mae and Freddie Mac, the government sponsored enterprises (GSE), is at its highest point ever in 2010 as the rate of new foreclosures continues to increase.

The June 2010 Mortgage Monitor data provided by Lender Processing Services (LPS) Applied Analytics shows that the spike in foreclosure starts is greatest at 6+ months of delinquency. Analysts have suggested that this may be occurring due to the recent increase in HAMP cancellations. Total foreclosure starts for 2010 are at 1.46m, compared to 1.68m for the same period in 2009 and 1.25m in 2008, to be sure, but the rate at which the starts increase during 1H10 is at the fastest pace LPS Applied Analytics has seen.

For the rest of this story on on housingwire.com - click here

Wholesaling properties is all the rage... oh brother.

I have to say that wholesalers are coming out of the wood work.  Everybody and their mother wants to be a wholesaler.  First of all - I have so many thoughts about this that I don't even know where to start.  

In no particular order - but all equal points:

1.  First of all, brand new investors who haven't even done a deal or are barely learning the business - are deciding that they will become a wholesaler.  Now - this isn't necessarily a bad thing.  The more people finding deals for investors the better right?  The problem is that some folks are not getting it.  First of all, they are not evaluating the deal correctly. (Also this goes for real estate agents who want to get deals for investors).  Evaluating the deals is KEY..  Ah duh?   Here's the go: Take the ARV (After Repair Value) multiply it by 70% then minus the repairs.  That's the bottom line that I personally will buy a house for.  PERIOD. Some investors will only buy properties at 60-65%.  That is my dream - but in this market - those deals are hard to come by.

So this doesn't mean - call me up with a property that you have done all of the above, then tell me the price PLUS your wholesale fee!!  Jeez louise.  And some of the fees are ridiculous!  Which brings me to point #2.

2.  Don't be greedy with your wholesale fee and don't be set in stone on your number.   Do you want to rock and roll or just be a greedy a-hole who only does a deal here and there cuz you're set in stone?  There are some people who are hell bent in making their specific fee of say $5000, $10,000 or even more!  In this market you have to be fluid.  And you have to ask for a fee that the deal will support!  I don't care if you make $20K on a wholesale fee - but that deal better support that number!   Hell - sometimes we have made as little at $3K on a deal because that is all it would support by the time everyone got paid.   Also -don't care what the other person is making.  If the deal supports it - then what the hell is it your business what I making?  Which brings me to #3

3.  If I am wholesaling you one of my deals, and the numbers support the price - it's should not be your concern what I am making.  And especially do not try to use the tactic of "your making plenty of money - just lower the price"  really?  It's my connections, my time, my wheeling and dealing to get the deal in the first place. Do not dictate to me what I should and should not be making.   Go away.  There are plenty of buyers out there.  We do not need to deal with butt heads.  This is a no butt head zone.    I have a very good friend of mine who was wholesaling a really good property in a excellent neighborhood and her wholesale fee was $20K.  The deal supported it and the person who was interested - baulked at the wholesale fee and refused to buy it until they lowered it.   Absolutely not!   My friends strategy is that they like the property enough to rehab it themselves.  If they can't get their fee - they will just do it themselves.  Period.   I like this.  This is our strategy too.  If you don't like then don't buy it.  I'll just do it myself.   NEVER will we try to get a fee that the deal doesn't support. (This is not true for every wholesaler.  I'm just speaking for myself.)

4. Again - Please be fluid with your wholesale fee.  That means, don't be a dick.  We had a deal that we were wholesaling.  Actually we got this deal via one of our agents, and they were getting it from this wholesaler who was getting it from some other connection.  (I know - sounds like a pain in the ass huh? - well it was!)  So the story goes that come to find out a week prior to closing that there was a long list a stuff the city wanted done to the property.  Long story short - it was going to cost about $8K more in repairs.  So in order to make the deal work for the investor who was buying it from us - we had to lower our wholesale fee, my agent and his partner had to lower theirs and the people we were buying it from had to kick in a little on their end.  Sounds reasonable.  Something is better then nothing right?  Well - the greedy wholesaler that my agent was working with REFUSED to lower her side.  I mean 100% refused.  So my agent ended up giving up most of his fee so that he wouldn't upset her (his partner in the deal)!  What!  This was ridiculous.  She didn't care that he didn't make any money on the deal.  She let him do it!  Now that is just nasty!   So we all remembered that.  I will never buy another property from the greedy person.  Also - I have let me fellow investors know about her so that the don't get involved.  She is someone who doesn't care about people - and this is NOT The kind of person any of us should be dealing with.  

5.  I can't say it enough - do not be an a-hole.  Apparently there is the investor who has been in the business "for 20 years"  blah blah blah and he specifically asks you what your wholesale fee is and then he tells you he expects half of it if he wholesales your property for you!   WHAT! LOL.... don't even get me started on this fool.

So - the bottom line is - do your due diligence on the ARV, don't be greedy, be good to people and mind your business .  LOL....  it's sounds funny but it is true.  This is a small world we live in and word spreads fast if you're an butt head.

May the force be with you my friends!

Naked Real Estate Investors Meeting this week`

This week is my monthly meeting for my Naked Real Estate Investors Club !  It's my networking, deal making and educational meeting!  

Click here for information

The Bare Truth About Real Estate Investing"   No Hype, No Pitch - and we mean it!
 

6:30pm - Networking Begins 
7:15pm - Deals, Wants & Needs 
8:00pm - Speaker Begins

Come early and sign up to Announce your own Wants & Needs at the beginning of each meeting!  

Location:
Naked Real Estate Investors Center
10601 Washington Blvd
Los Angeles, CA 90232 - Click Here for Map

Non Member Cost: $20 pp  - Cash/Check at the door

July Meeting, Thursday July 8th
 

Topic: Total Asset Protection
Speaker:  Lynda L. Sands, JD, MBA
 

 Almost 200 lawsuits are filed EVERY MINUTE in the US, and as a Real Estate Investor, we need to know EXACTLY what kind of entity protects US best. Investors are like snowflakes, no two are alike!

Our next meeting, July 8th, will feature Lynda L. Sands, JD, MBA who will guide you in making the best choices for asset protection. 

Even successful real estate gurus who teach aspects of real estate investing tell you NOT TO WORRY about how you hold your assets— go buy property and worry about this later. It’s like telling you to go buy a plane and fly it, but don’t worry about the FAA or TSA. Recipe for disaster!

You don't know when:

o you will be sued

o you will be incapacitated

o you will be divorced

o you will die (or your partner or spouse will) or

o your partner (or spouse) will steal your money 

 .....and you cannot prepare for disaster after it strikes!

 IF WE ARE SMART & SAAVY ENOUGH TO FIND A GOOD DEAL, BUY PROPERTY AND MAKE A PROFIT, WE CAN LEARN TO RUN OUR BUSINESS PROFESSIONALLY

 o You need a structure that fits you at YOUR stage of business—one that will evolve with you.

  o Learn the concepts that will grow WITH YOU, whether you have one property or dozens of properties.

 o Her goal is to make you self-sufficient in understanding how to choose your business structure.

  ________________________________________________________ 

This was 2 weeks of real estate hell

But don't get me wrong - I wouldn't change what I do for anything in the world!  I love real estate - even when it sucks!  That is - when your deals aren't closing!   OMG, seriously people what the hell is going on here?  Is Mecury in retrograde?  Nope - I checked with my astrologer.  Is it bad Karma?  Nope I checked with my psychic - I'm good. So que paso?  

Our property on 43rd has been in escrow for almost 3 months!  YES!  You heard me.... 3 months!   The buyers had a list of 46 conditions to meet before their loan would fund and then on top of it, they had a lender who was a mother humper and who pretty much didn't seem to care when they closed.   But today - THANK GOD, we closed the son-of-gun!  I will say it again - Thank you God!

All the while - this past several weeks have been filled with other rollercoaster-OMG-you've got to be freakin kdding me - moments with many of our other properties.

Property on 47th - after a month and half of being in escrow -  and it not looking like the lender was on top of it - we had to move our buyers to use our lender and now its been another month and 2 appraisals later that we are just getting loan docs.  From my lips to Gods ears - that puppy is set to close this week.

Deal we got under contract - on 58th - quick wholesale flip. Easy money....  Come to find out 2 weeks ago that the short sale has not been approved by the bank... Uhhhh - you have our $5K deposit!  Are you kidding me?  The son-of-a-bee hive agent - didn't mention this minor detail to us that this deal didnt have formal approval.  Still waiting to hear on this mofo.

Deal that we just funded last week for property on 49th.... Some random lein showed up when they ran the title report again - for $35K !!!!  WHAT!?  Now escrow got that cleared but there is some other weird notice on title from "Bureau of Street Lighting" that is called "substandard dwelling notice".... Really?  This house is in So. L.A.  Of course it's substandard!  I need a freakin notice from some crazy street lighing bureau to tell me this?  Oy Vey - still working on this.  Do we go ahead with it and deal with this problem after?  Do we get our funds back and say screw you?  Stay tuned.

And don't even get me started on our complete rehab on Exposition..... 
All I can say is that our broker is freaking  LUCKY that we just got 2 offers on it - otherwise my broker would be.....

Now the good news.  I still love this business no matter what.   I feel so fortunate that I am able to do what I love and make money from it.  I feel lucky that I even have these kinds of "problems".  I know a lot of people who wish they had these problems.  We just got another deal yesterday and looks like several more are popping as we speak.  and I do have a rehab that is going pretty smoothly right now - thank you Jesus!  

So the bottom line is - yeah - sometimes work sucks - but for the most part I thank my lucky stars.... 

So. L.A. Wholesale Deal available

June 6, 2010

This will go fast!  Don't wait - go look at it today.

1804 Middleton Pl, Los Angeles 90062  

2/1   - 1260 S.F.

CLICK HERE FOR MORE INFO 

It's our 2 Year Anniversary, Thursday, June 10th!

Naked Real Estate Investors Club is 2 Years and Going Strong!

 

Join us to celebrate at our June Monthly Meeting! 

Topic:   "Women Who Rock Real Estate" Investors Panel

Plus:  Food!  Beverages!  Networking! 

...and then and "After Party" with music and socializing

Thursday, June 10th  6:00pm - 9:30pm

Join Us for one our famous Investors Panel as we celebrate our 2 Year Anniversary for our real estate club!  And this time -we are going to celebrate the incredible women investors who are really rocking it out there!

Let's talk with these ladies and see how they are rocking it in real estate.  Let's get together and hear them tell us - how they are buying houses in todays market, some of their lessons, their homeruns, base hits, and what their plans are for the next year!

 

• Bobi Alexander - Wholesale and Fix & Flip investor, Owner of Invest Club for Women in Irvine

• Iris Veneracion - Wholesale and Fix & Flip investor, Owner of Invest Club for Women in Irvine! 

• Kristi Cirtwell, Cirtwell Investments,  Rehabber, Fix & Flip Investor

• Mallory Nicholson,  Real Estate Marketing Expert
 
And way fun - Ginger Macias - Wholesaling Queen - is going to be moderating the panel with Me! 

Click Here to VISIT OUR WEBSITE FOR FURTHER INFO!  See you there!! 

Naked Real Estate Investors Monthly Meeting - March 2010

 

Monthly Meeting - Thursday, March 11th   6:30pm - 9:30pm 

6:30pm - Networking Begins    7:15pm - Deals, Wants & Needs    8:00pm - Speaker Begins

Come early and sign up to Announce your own Wants & Needs at the beginning of each meeting!  
Location:
Naked Real Estate Investors Center
10601 Washington Blvd
Los Angeles, CA 90232
Corner of Washington Blvd & Overland

TOPIC:  Pitfalls of Private Lending, Partnering and Pooling Money

Speaker:  Kim Taylor, Esq.  

Our March 11th speaker is Kim Lisa Taylor, Esq.  She is a Real Estate Securities Attorney with the law firm of Trowbridge and Taylor, LLP, a real estate broker, a real estate investors and a professional geologist!  And on top of that she is MY ATTORNEY.  Even I - who owns a real estate club that teaches education - can get into a hot mess with partners.   Well no more now that Kim is on my team.  She once told me almost a year ago that I will pay her now or pay her later.  Later indeed. 

We all need to learn so many aspects of partnering in all ways.  This is a very important topic that should be taught all the time!

Kim travels all over the county teached multi-day workshops on these important topics for hundreds and thousands of dollars!  Don't miss your opportunity to have such a renowned attorney teach you some important pitfalls to be aware of. 
She will answer the most frequently asked questions that both active and passive real estate investors need to know about in private lending, partnerships and pooling money!

You will learn about:

 > What you should know BEFORE you lend and borrow private money

> The 8 D's every partnership agreements should include (oh I wish
I knew these 9 months ago!) and,

> Things you should know about pooling money, whether you are the syndicator or an investor, and how to do it without going to jail!

For more information on Naked Real Estate Investors Club - visit our website at

www.nakedrealestateinvestorsclub.com  

See you at the Meeting!

Program Will Pay Homeowners to Sell at a Loss

by David Streitfeld
Monday, March 8, 2010

provided by

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program which will allow owners they owe and will give them a little cash to speed them on their way, is one of the administration's most aggressive attempts to grapple with a problem that has defied solutions.

More than five million households are behind on their mortgages and risk foreclosure. The government's $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy's tentative recovery -- the last thing it wants in an election year.

Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.

CLICK HERE TO READ THE REST OF THIS ARTICLE

<<<<<<<<<

The deals are slim pickings...

I am so bummed that I am not rolling in the deals.  My goal for this year is to get at least 4 deals a month - wholesale 2-3 of them and keep 1-2 of them to flip myself. Just late last year we were getting a lot of REO properties - but this year - dang.....its been tough.  I should be a lot more grateful I suppose.  We did get  3 properties in Jan and we wholesaled 2 and kept one for fix and flip.  We just got another under contract - but we are still evaluating it.  So - yes - I am grateful for what we have gotten.... but I want more! LOL!

Another thing... these properties in So. L.A. are getting pretty difficult to evaluate.  There are slim pickings out there and the prices are escalating at record speed.  I don't like this at all.  We are to the point that we are turning down more properties that we are getting - or rather making offers on.    We've been getting a lot of "good properties" presented to us by our broker - but after painstakingly evaluating them - the numbers just don't add up and we pass.   DARN IT!  Why are the numbers not adding up?  Two reasons:  Prices are too  high therefore the margin is too narrow for comfort and not enough comps to justify the rise in prices for these hunks of junks.  We are at a crossroad here.  There are a lot of Active properties with the comps that would justfy these REO prices - but they are not SOLDS yet.  We all know we can't base our ARV on active properties.  This sucks!  I keep knowing that in 2, 4, 6 months from now we are going to have some mack daddy comps (potentially), but until then - we must - simply must be cautious.  It seems like we are pioneering in this particular area.  I don't mind being a cautious pioneer.  But what I dont want - is to be a cowboy.   It is the wild wild west out there in certain areas and it's crazy. 

The ironic thing is that once those comps start popping - the prices are going to be even higher to buy these properties and we will be waiting for a new set up comps to start popping up.... LOL.   Oh the joy of being real estate investors in this market.  Or at least in our high profile areas in Greater LA.

I now have another additional broker finding us properties in my target area and he is one hell of a hustler.  He's this close to landing us a couple of properties.  We've put in several offers with him in the past couple of weeks - so fingers crossed.  Between him and our other broker and some of my friends who are buying at trust deed sales - I hope to get another 4-5 properties in the next month!  From my lips to Gods ears.  

Let's rock and roll!

Naked Real Estate Investors Monthly Meeting

 

TONIGHT!

 

 

Thursday, February 11th,  6:30pm  - 9:30pm - Culver City 

 

TOPIC:  Buy Properties before they hit the MLS 

 

Real Estate Investors and my good friends Will Barnard and Michael Gier of Nationwide Property Investments, LLC will teach you how they are buying properties before the MLS and cashing checks.

 

Rehab and flip investors, stop playing the make 30 offers per week numbers game and come learn how to buy BEFORE the MLS.

 

Passive investors & private money lenders: Do not miss this event! Learn how you can make secured investments without ever having to foreclose & without ever having to take back a property. This is a secured investment with very high returns through a proprietary system.

 

Attention RE Brokers: Don't miss this event! Learn how you can have the exclusive ability to offer your buyers the means to purchasing properties move-in ready without the MLS bidding wars and without the long and tedious wait on short sale approvals.

 

 

Location: 

Naked Real Estate Investors Club

10601 W. Washington Blvd

Culver City, CA 90232

310-280-9418

 

Cost: 

 $18 -Non Members

 

Bare Essentials Members:  Pay $5.00

Skinny Dippers Members: FREE - plus 1 Guest !

Streaker Members:  FREE plus 2 Guests!

 

For club infomation and membership information www.nakedrealestateinvestorsclub.com

 

Hope to See you there!

 

U.S. Department of Housing and Urban Development (HUD)

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

For the rest of this article click below:

U.S. Department of Housing and Urban Development (HUD).

It's OK to be a newbie... but never an amature.

What I mean by this is that if you're a newbie investor it is expected that you may not know what you are doing in any given situation in doing deals. You are expected to need advice or guidance from more experienced investors and to possibly (absolutely) make some mistakes. For the most part as long as you are humble in your learning, are taking advice and in general are being an earnest student of real estate investing - you will be all right amongst your peers and in your investor community.  

Now...Being an armature is much different in my opinion. It doesn't matter if you are a newbie or more experienced investor.Being an amateur means that you do shit wrong, follow the wrong protocol and in general do not respect the unwritten guidelines and rules of working with your fellow real estate investor.  Bottom line is you act irresponsible, greedy or worse - like you know what your doing, but are really just wasting peoples time. 

Don't be an amateur!  Or you will get a reputation as a pain in the ass and likely shunned by other investors.  If your not totally shunned then you will at least be dealt with at an arms length and you won't be given the same favors as other investors.

First of all an amateur investor will call me and tell me how many deals they have done and how much money they have to invest within the first 3 minutes of conversation.  This is someone who is trying to "buy their way in" with nothing but talk and bloviating.  It has been my experience that the big talkers never perform.  It's the quite ones that you need to be looking for.  They are the ones that have all the money.  They don't have a lot of prove.  They know what they can offer and they don't care who they impress.   

Amateurs don't follow protocol.  What does this mean?  For example.  If you call an investor who is wholesaling a property (me!) and say that you want to buy the property - then by god - you had better done your due diligence by then.  If you say your sending the deposit - then send the deposit!  Don't mess around for 3-4 days with every excuse in the book.   If you call to say you are finally sure you want the deal and are going to wire money today then do it!  Don't call an hour later to say that you just talked to your partner and he decided after all he doesn't want the property!  You just wasted my whole morning asshole!   NEVER call a wholesaler and say you want a property unless you know you want that property! NEVER call a wholesaler and say you are sending a wire only to back out of the deal an hour later!  And never ever act as if dicking around with me for a week on this property and wasting my time and energy was not such a big deal.  You are an amateur and a putz. 

Lastly - don't be a greedy mofo.  My friend and wholesaler Ginger Macias was telling me how one of her newbie students was trying to make a $30K wholesale fee off a property!  Or maybe it was $50K.  And then I think that fee was putting the house at 80% or something like that.  Ridiculous!  What a pig.  Don't gouge.  Take your small wholesale fee and give a good deal to the person who buys the property from you.  Now that "investors" name is written in mud.  She has been blacklisted by at least a few wholesalers now - including me.  All by word of mouth. 

All us investors talk to each other.  It's a small world the investor community. This business is tough enough without having to deal with bozos.  I won't do it I tell ya.

 Join the Naked Real Estate Investors Community!

 It's FREE to JOIN !
     

 Click Here To JOIN NOW 

Rocking in So. L.A.

We have a lot of deals starting to POP in L.A. If you been to my real estate club meetings - you know this is where I was going to focus on and lay my mark.   Well - I started to put my nose to the grindstone  and things are hopping now!  No more messing around people!

I hooked up with my good friend  & real estate investor Dave Berens to do some LA deals because he had this "secret" connection in LA that he just had met.  These guys are brokers and contractors in LA.   Dave allowed me to meet them because I promised I would not make friends with them and I would only deal with them through him!  I have the real estate investor connections and he had these guys.  One kick ass team in the making I would say.  

That was a month ago.   To date:   We just closed our first rehab together (and I just got paid my aquistion fee!  Whee!), we wholesaled another property a week ago that is closing next week and we have another deal that we are wholesaling right now.   Not bad ey?

THe moral of the story:  Get off your ass and make it happen Rosie!  Oh yeah - and have those secret treasured connections that can actually get you these REO deals.  One thing I know for sure - is that if you don't have that broker in your pocket who is going to get you the deals - you will not get the deals.   Hhhmmm that reminds me - we need to take them to a steak dinner this week at Flemings! 

Check out our current wholesale deal:

1638 W. 51st. Place, Los Angeles, 90062
Single Family Home, 1054 sf.   R2
Title says 2 beds/ 1 bath, but it's 3 beds/ 1.5 baths. Lot size 5200
 
Zoned R2, and there is PLENTY of room to add on and make this a nice duplex. We have the contractor and architect available if needed.
 
As a single-family home, you can spend from $40,000-$60,000 for repairs, depending on what you want to do.
To build a duplex you need to add around 400-500 sf, and that (with remodel costs for the existing house) will cost $100,000 max.
 
ARV as a SFR is $285,000
ARV as a duplex with 3/1 each unit is $375,000-385,000
 
We are selling this property for $155,000.
 
It is important to go see it as soon as possible if you are interested. We expect to sell this quickly.

In the immediate pipeline - call me re these deals:

Duplex on 43rd street - $170K -all in (includes $15K of remodel)   ARV:  $245K

Triplex on 56th - $165 purchase, $90K rehab - ARV $410K

Coming soon:  Antelope Valley Properties! Coming soon:  Antelope Valley Properties!

Contact me right away for information on all these properties and to be added to my Buyers List :

Rosie@nakedladyrealestate.com   310-425-2695

Foreign Investors Not Yet Returning To US Real Estate Market

Foreign Investors Not Yet Returning To US Real Estate Market

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