There was a bulk REO (real estate owned/bank owned properties) package that came across my desk in November… 19 Detroit Homes for 10k! I couldn’t believe it! As you know, we are experiencing a depression! A depression not a recession… people are losing their homes left right and center, the dollar is going down and precious metals such as Silver “God’s Money” as Robert Kiyosaki elegantly described is going up by the ounce. According to the *Salvation Only, their 2007/2008 statistics show that over 29 MILLION people were serviced, the soup kitchens are over flowing and on one side of the picture, financial analysts and naysayers are predicting it will take some time before the economy pops back so we should all sit tight don’t do anything rash and wait 5-6 years!

Here’s the flip side of the madness, if you are one of those people sitting around watching the news all day, out of work and wondering what you’re going to do next… you definitely didn’t know that real estate investors by the DROVES are trying to figure out how they can beg borrow and steal (hopefully not steal but you get it…) enough money to jump on the money train! While several industries have been destroyed, as always, several industries have been created… While in February of 2008, the mortgage bank First Franklin Financial that I was employed by was officially shut down by Merrill Lynch after they just paid over 3 BILLION Dollars for it the year before, there were more jobs added and new divisions created! Well of course, they had to get rid of all of these subprime mortgages! They needed to get rid of all of these non paying mortgages. So they needed to add to the short sale department and the loss mitigation department, the REO department! Asset managers were hired to discount these properties and dump them for as much as they can get! New departments were created with processors that do nothing but scan documents in from all of the short sale offers they are receiving now on their e-faxes! Negotiators were hired to negotiate with the new purchaser offering them .40 on the dollar or less and second level negotiators were hired to handle taking those offers of enormous loss to the investors that own the paper for these mortgages. Managers and assistant managers to make sure everything runs like a ship and so on. You get my drift….

I coined Warren Buffet’s phrase on my LinkedIn page “I feel Like a Mosquito in a Nudist camp”… Investors with Millions of dollars are buying up these distressed homes by hundreds LITERALLY. Instead of providing mortgages to individuals like I used to when I had a mortgage brokerage or underwriting advice to brokers as I used to do when I was an Account Executive for Merrill Lynch’s mortgage bank… Now I have to concentrate on finding asset managers with these bulk REO packages to buy from and investors to sell packages I can’t buy to! There is money to be made everywhere. So in the new millennium it’s about the infamous book Who Moved My Cheese. Adjusting to change and reinventing yourself more often than the last generation had to so what! If you can keep up, stay positive, persistent and keep your ear to the ground for those once in a lifetime opportunities then the survivors of this economy can either witness or be a part of the largest transfer of wealth that we’ve ever seen!

Which brings me back to the subject about Detroit, MI who was hit the hardest… From 2008 up to September 2009 I have seen Bulk REO packages of homes that were all above my budget by Millions and from February of 2009 I had been avidly looking for financing because I did have the foresight of seeing this massive opportunity when the steam first started to really blow… This is such a new business model, bulk reo investing, that most private money lenders and Joint Venture Capitalists were too scared to jump in last year because they were still unsure what the market was going to do. So I couldn’t get the financing to really jump in and do some magic… Then, out of the clear blue sky, September of 2009 rolls around and I see a package of 19 homes for $10,000.00! I’m now thinking WOA…Now this is something I can jump on! I mean these homes are selling for literally pennies on the dollar… I mean these houses are $526.31 a piece! We are still in America aren’t we? Where can you buy a house for $526.31 free and clear with your first renter! Section 8 rents in that area were still paying $650-$850! OK, OK… I know what you’re thinking they are all trashed! Yea, you have a point… But guess what… I actually went to Detroit to take a look and found out that these homes can be remodeled for $2,000-$10,000.00 a piece… Ok, so now it will take me 12 to 20 months to pay the home off free & clear! I am still in America! For me, this is a no brainer! The NOI is one thing but do you think if I hold on to these homes I might be able to sell a few for appreciation in a few years? Or just keep the cash flow for retirement income? Ok… I still had to really see for myself and clicking here will show you a few of the homes that were in the package for $519.36 a piece!

My videos are too long I know…I am getting better. So, with that information ATW CREI Corporation was launched to purchase REOs in Bulk! I did my first meeting in November showing other investors with cash in the bank or money in their 401ks or IRAs how they can get involved! I am still looking for talented officers to add to the new entity and of course a few equity partners to take this short window of opportunity and run with it!

If you are one of those…the glass is half empty and drying up people… We need you in the world so the opportunist can come in and show you how to squeeze the water out of a cactus and continue drinking because the glass is half full and about to overflow!

Opportunity is everywhere you turn right now! Did you hear about how the industrial commodity called Silver is soon to be scarce in the World! Check it out on the page about the Silver Explosion at www.AchieversOnly.info . It’s all about multiple streams of income in today’s economy! The smart ones like Donald Trump and Roberty Kiyosaki with his 2008 and 2009 predictions have that foresight. Like they say, the Rich get Richer… But in times like these the smart ones get richer too! There are countless new Guru Real Estate Geniuses popping up left and right! Some of my favorite real estate coaches are Bill Twyford and Dwan Bent Twyford, Nathan Jurewicz a young kid making a killing on the market that has developed a new funding program called fix a flip funding, Chris McLaughlin, Cory Boatright, Than Merrill from Flip this House and others. There are also countless We Buy Gold & Silver commercials, billboards and these new so-called Gold parties! People are getting rich in this economy everywhere I look.

Signing off…

Tene Williams
Your Achievers Only Business Coaching Guru!
www.Achieversonly.com
www.AchieversOnly.info

Ok, I have to narrow down my focus.  Finding hard money loans and preparing packages takes up too much of my time.  So I am going to give you my personal hard money funding techniques that get my deals funded time & time again.  These tips will help your hard money lender make a decision allot easier.  These tips have taken me years to develop and I am passing them on to  help my fellow investors cut years off of the learning curve!  There is so much business out there right now you want to take massive action and you would prefer not to have your deal get shot down because you didn’t package it correctly!

Hard Money Loan Package Summary

A.  Know your ARV (After Repair Value).  You MUST know your comps.  If you think hard money lenders will do it for you think again.  There’s too much business out there.  What are homes selling for in the neighborhood today?  If there aren’t at least six comparables of recent sales in the last 3 months (Forget about 6) then your deal probably will not be funded! I use several websites to find out this value.

1. www.hvasoftware.com This system will pull comparables from eppraisals.com, cyberhomes.com and zillow DO NOT assume the value it comes up with is correct.  You then have to research each comp.  make sure its within a half mile to a mile of the home and the comps are within the last 6 months!
2. www.trulia.com Type in the address then review the recently SOLD comparables
3. www.realestate.yahoo.com
4. www.propertyshark.com This is a GREAT tool because you can give it specific parameters.

When reviewing your comparables, if there were many short sales and foreclosures in the area you will know because of the large difference in price.  You may need to review property shark for each comparable and look at the title history.  With this you can tell weather the last sale was a short sale or foreclosure.

B.  I normally provide my lenders with a market analysis also.  You can get this from www.cyberhomes.com

C. With the popularity of YouTube now besides pics of the home, to get hard money funded you should also provide at least a minute of YouTube video of the property and the neighborhood.  I recommend owning a flip video.  Just make sure you record the neighborhood, the outside and inside of the home.  Be careful not to go too fast or too slow on your recording.  Just the facts, slow enough for someone to see what you see.  The eye is quicker than the camera so the camera takes another half a second to see what you see.

D.  Last but not least create your executive summary.  This should be no more than two pages and include a summary of the property.  What you are looking for and a brief resume summary of your background.  Because so many investors have walked away from projects they really don’t want to lend to a newbie.  But if you are a newbie highlight experience that you have relating to the industry.

Last but not least…You want to gather your info then put it all in a neat little pkg.  Within the first paragraph of your executive summary you need to get out what you are looking for, how much time it will take you to return their money and a little bit about yourself.  Of course, you want to make sure they continue to read all of the details you have provided!  I hope this helps!

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10 Best Places to Buy Foreclosures

Joel Cone

 

Pin a map of the United States

to the wall, take 10 steps back, aim and throw your dart. Almost anywhere you
hit is going to have some level of foreclosure activity going on, even if it is
negligible in relation to the area’s real estate market.

 

Despite the housing problems that have hit many areas nationwide, some areas
of the country are better poised to stand the test of time than others. Those
areas are still affected by the overall psychology of the down market, but
represent an opportunity to buy low and realize a high rate of return when the
market recovers.

 

“You’re basically taking advantage of someone else’s misfortune. That’s the
unfortunate situation, but it presents an opportunity for many people as well,”
said Andrew Couture of Neighborhood Scout, an online service with a national
database that allows users to drill down to the neighborhood level for various
types of information.

 

“If you can do it in an area where schools are good, employment is good,
crime is low, there’s access to amenities and opportunities, there’s lots to
do, that’s going to be a more desirable place to the population in general than
a place with no amenities and where opportunities are limited,” Couture said.

 

When analyzing what areas represent the best opportunities for foreclosure
investors, we looked at the following variables:

• Average Savings on
  Foreclosure Purchase
• Home Price Appreciation
• Recent Home Sales &
  Inventory
• Job Market &
  Unemployment Rate
• Vacancy rates
• School District
• Crime Rate

 

A Method to Our Madness: The List
All of those factors are well worth considering, but
at the end of the day choosing a list of 10 locations that offer good
investment opportunities is subjective.

 

“I think in this market there’s not really a top 10. In this market, almost
every market in this country is an excellent opportunity for investors,” said
investor and trainer Andy Heller. “Real estate is a long-term investment. I
think the opportunity is simply different in some markets.”

 

Nevertheless, Foreclosure
News Report has come up with the followinglist

of 10 metropolitan statistical areas (MSAs) around
the country that we believe offer good opportunities for foreclosure investors:

 

10 Best Places to Buy Foreclosures

style='mso-cellspacing:0pt;mso-padding-alt:0pt 0pt 0pt 0pt'>

Metro Area	Avg. Savings on Foreclosure Purchase	1-Year Price Appreciation	5-Year Price Appreciation	Year-over-Year Employment Growth
Binghamton, NY	50.59%	7.79%	43.64%	0.06%
Augusta/Richmond, VA	67.62%	5.85%	40.35%	0.60%
Syracuse, NY	68.91%	5.45%	34.69%	0.20%
Yakima, WA	71.37%	5.42%	34.51%	1.10%
Hickory/Lenoir/Morgantown, NC	71.42%	5.42%	23.79%	0.10%
Kingsport/Bristol, TN-VA	71.84%	5.11%	33.41%	0.40%
Columbia, SC	72.70%	5.43%	30.08%	0.10%
Charlotte/Gastonia, NC	74.69%	6.58%	31.03%	2.10%
Provo/Orem, UT	77.78%	6.34%	51.14%	-0.60%
Beaumont/Port Arthur, TX	78.42%	5.90%	31.46%	0.10%

 

As you can clearly see from the list, average savings on homes sold range
anywhere from more than 20 percent in markets like Beaumont-Port Arthur, Texas,
to almost 50 percent in markets like Binghamton, N.Y. Likewise, the one-year
change in price appreciation rates for the 10 MSAs
range from a low of 5 percent in Kingsport-Bristol, Tenn.-Va,
to a high of nearly 8 percent in Binghamton, N.Y.

 

We based the list on the two primary goals of a prudent investor: 1)
purchase any property for the best discount possible and 2) purchase in an area
where the return on your investment will be as stable over the long-term as
possible.

 

Opportunities Abound No Matter What Market
William Bronchick, president of the Colorado
Association of Real Estate Investors, recommends that investors look no further
than their own backyard to find investment opportunities.

 

“My general opinion is you invest in your backyard. No matter what market
you’re in, the deal has to make sense. Look to buy property for cash flow. It
helps to be more familiar with the market,” Bronchick
said.

 

Bronchick believes that the best markets to invest
in are those that did not experience dramatic surges in property values during
the boom years earlier this decade simply because prices in those markets are
not crashing as hard now.

 

Bronchick said he has heard of investors looking
to parts of Texas like San
Antonio, Austin

and Dallas to invest in, as well as
Colorado Springs, Denver,
St. Louis and parts of the Rust
Belt.

 

Dr. Jay Q. Butler, Director of Realty Studies at the Morrison School of
Management and Agribusiness at Arizona

State University,
suggested that jobs and family support are important considerations when determining
where to invest because those two factors are key to
potential tenants or buyers.

 

“Looking at Texas, all of
their markets have been stable beyond belief. Oklahoma

has historically been a stable market. Oklahoma City,
even Tulsa, have been good,” said Butler.
“To some degree so have the Alabama
and Georgia
markets. They have pretty good manufacturing, and the auto industry has moved
into that area. The Carolinas are also historically a
stable market.”

 

Markets like Michigan, California,
Nevada and Arizona
have employment issues with jobs that have been lost and are not going to be
replaced. On top of that some of those same areas have other issues that could
affect the housing market. California,
Nevada and Florida

have water issues confronting them. Michigan
has employment issues caused by the struggling auto industry, while Ohio
has suffered job losses in the steel industry.

 

Plus, Butler noted, many people
who want to move to the warmer climates of California,

Florida and Arizona
won’t end up moving because they don’t want to give up the family support for
things such as daycare and elderly care.

 

“A lot of families are relying on others to help them. Family
and friends for daycare; same thing for the older people. There’s more
of a need to create an ultra-family type of support system,” he said.

 

Investor’s Choice
Although the markets on this list are not the only
places with good foreclosure investing opportunities, many of the markets are
within states that are generally considered to be more stable in today’s
economy. In the end, however, it is still the investor’s choice as to where to
put his or her money down.

 

Heller categorizes markets two ways: what he calls Category A markets are
those that are much more volatile, having experienced double-digit appreciation
and now have prices falling faster than the national average. These are markets
like California, Florida,
Las Vegas and Arizona.

 

“In these markets, for the most part, the foreclosure rates are higher than
the national average, so the opportunity to acquire investment grade property,
at substantial discounts, is higher,” Heller said. “The blessing is these
markets offer greater potential returns, so it does represent more risk. You’re
able to manage that risk by targeting a higher than normal investor discount.”

 

By contrast, what he calls Category B markets are those that had more stable
year-over-year appreciation over the past seven to 10 years. Markets such as Atlanta,
parts of New York, Minnesota
and North Carolina fall into this
category.

 

“In these markets you have record foreclosures, but closer to the national average, and investors can get a great deal, but probably
not at quite the discounts as in the markets in the first category,” he said.
“These markets represent less risk because of less volatility.”

 
Properties in Category A represent more risk because they are in more desirable
areas of the country. So property values — which shot up much faster in these
markets than in other parts of the country — are now experiencing more of a
freefall in home prices, thus more people are losing their homes.

 

“The encouraging news is times have never been better for an investor
anywhere. In all 50 states. The supply of properties
going through foreclosure has never been greater. One thing an investor needs
to understand is there will still be some falloff in these markets, so the
investor should seek a higher investor discount. That discount needs to allow
for future possible softening,” Heller said.

How much of a discount? Considering the deterioration still going on to a
greater or less extent depending on the market, it can be as much as 40 to 50
percent in Category A markets and 20 to 30 percent in Category B markets.

 

Heller explained it’s all about risk and reward. No matter what market an
investor chooses, when the economy does finally turn around the potential
rewards from the rebound will be exciting.

 

Overall, Heller is less concerned about what particular parts of the country
to invest in than he is about the strength and diversity of that market’s
employment base. Areas where the local economy has been dependent on one
particular industry for a long time are going to be difficult areas for
investors to find tenants to fill their properties.

 

Still, the last year has made a significant difference in investors’ ability
to work no matter what market they are interested in.

“Right now is an investor’s dream. In a period of 12 months the most
challenging part of investing in real estate — finding deals — has gone from
difficult to easy,” Heller said.