Deals in the Shadows
Bruce Norris
President
The Norris Group
The Obama Administration continues to push measures to stem the tide of foreclosures. There has been a slight shift in language in 2010, however. The new emphasis is on “unavoidable” foreclosures which include investors, speculators, million dollar homes, those that have defaulted on vacation homes, and borrowers incapable of making payments.
Instead, the current Administration has decided to “focus on providing responsible homeowners opportunities to obtain a modification or to refinance and prevent avoidable foreclosures and, when necessary, must facilitate the transition to a more sustainable housing situation.”
Looking back on the original HAMP language, the target audience hasn’t changed. Neither has the fact that the program is completely voluntary. These are the exact same reasons HAMP failed to gain momentum when it was first released in 2009. While new financial incentives exist for banks to cooperate, little data exists to prove long-term success and sustainability of this program and much is at stake considering the state of the economy and new regulations coming at the industry from all angles.
Executives from “Too Big to Fail” banks including Bank of America, JP Morgan, Citigroup, and Wells Fargo testified in front of the House Financial Services Committee hearing in mid-April collectively saying that permanent loan modification was not the answer nor was it the only option. Fairness, contract sanctity, and our lending future were reasons cited not to participate in principal right downs.
Until you have your first Million, it’s all about Focus!
John Schaub
you begin real estate investing and are starting with few assets, you don’t want to diversify. Instead, you want to focus and become as good as you can in a certain area of real estate. If you are into houses, become the best buyer and manager in your town. If you are buying quality properties at wholesale prices, with owner financing and then renting to tenants that take care of your properties, you will have a successful program.
Diversification can come in several forms. First, it can come in the way you finance your purchases. Most of us agree that buying with owner financing on great terms is the best way to go. In a downturn, buyers who purchased with owner financing survive, as their “banks” are people who will renegotiate terms so that they can keep the property. Rarely do sellers want to repossess a property they sold on terms. Real banks will only renegotiate if you are broke or have no other resources. An investor with net worth and some money in the bank is not a candidate for a short sale or a loan renegotiation with a commercial banker.
Government Helps Your Retail Buyer
Chuck McCay, Broker/Investor
Silicon Valley 2010 Real Estate at a Glance
Jason Lee, Broker
Buying Fundamentals
Stuart Baeriswyl, Broker/Investor
REO Business & IRA Dollars
Lori Greymont, Investor/Entrepreneur
Business Entities for CA Investors
Anthony F. Earle, Attorney
IRA’s and Real Estate Investing
Jeb Hendley, Senior Investment Broker
Selecting the Best Investments
Tom Wilson, Owner/Investor
Reselling REO’s via Online Auctions
Jesse Loomis,VP Bid4Assets
Putting Lipstick On A Pig!
David Beck, CFP
Mortgage Loans – Is a Thaw Coming?
Michael Ryan, Mortgage Broker
Paying a $20k note can be “Great News”
Natalie Knowlton, Short Sale Expert
Until You have your first Million…
John Schaub, Investor/Author
Real Estate Professionals and the IRS
Richard Smith, Enrolled Agent
SJREI Journal 