CRR Blog

Watch the Market... And Be Ready to Act on an Opportunity... Act Now!

The Fed's Meeting Ended this week with no change in policy.  So the near term future is going to more of the same.  That means it is the market itself that we should watch for indications of change.  The most obvious factors include the now obvious increase in the number of home loan defaults that has been creeping up since April.  Recent articles have pointed out that those who participated in loan modifications over the last four years are falling behind and running into trouble.  They simply can't afford their debts.  The same is true for many others who bought or refinanced properties at the height of the market and have been barely holding on.  So we are seeing an influx of new foreclosure starts that include repeat defaults as well as new defaults.


Consider that these individuals have already had years to avail themselves of the various government programs and yet here they are winding up in default again.   Also consider that there are additional market factors in your favor as an investor.  Values have gone up, so more and more of these properties are at a break-even point or even have positive equity.  More also have an equity position at auction, without a dropped bid needed to make them a good buy.  And also consider the interest rates that those with bad credit must face if they want to refinance.  These are matters that add up to a great environment for you, but a difficult environment for the person in default.


So if you are one who knocks on doors, or buys notes, or bids at auction...  this is a market that was made for you. 


 

Which Asset Should You Invest In?

If you are watching the markets as we are, you know that your money has been picking up steam for months in the Equities Markets and now would be a great time to take your income from the wave and put it into something solid.


With stocks at an alltime high, you must consider the difference between a rising market and one that is skipping across the top of the curve.  One bad bounce and your equities could take a tumble.  What is a safe bet against a loss of stock value?  Simple. Find a good piece of income property that you can pick up below market.  Instead of dividends you will have rental income and depreciation. Your long term rewards look promising.


You can always let your bets ride on the market, and hope the folks who have been wrong consistently have a better source of information than they used to.  Or you could determine your own destiny.  Take your winnings off the table that is Wall Street's casino and go to a safer investment.  Just call and ask us about recent investments Kurt has made and how easy it is to get notes and properties below value by using all the tools at your disposal.  This can become a part of your long term diversified strategy to take your short term stock gains and make them last.


Look at the market fundamentals and ask yourself... Are the fundamentals supporting this type of Euphoria?   Then look at the examples of bargains that we post on Twitter, Facebook, the OC Register, and our own blog here.  What better thing to do with your profits now? If you don't diversify, you are subject to hitting the wall when the market reacts to some piece of world news that is nothing in the scheme of things, but is enough to drain you of the profits you thought you had.  If you spread your investments, and develop an income that is not as variable, you will be in a better place in the long run.  Don't try to become a millionaire overnight.  Invest wisely and safely.  Ask us how.

The Circle is Now Complete

When the wave of foreclosures was in its infancy, people were getting our data to make offers to homeowners, and were doing very well.  Then things got muddy when the values fell and most homeowners were upside-down.  You had to make a short sale offer or wait for the auction because there was no equity left.


Now we are back to square one. You can find properties with equity, where the borrower is unable to make payments or refinance due to their finiancial circumstances.  You can make offers and open escrows again.  It is great for the listing agent and for the investor.  You don't have to have all cash, and interest rates are low enough to make sensible deals.


The volume of new foreclosures is increasing and the most people who could get a modification have already done so.  So now is the time to be making offers.  Knock on doors and make something happen.  Keep an eye on the auctions too, because there are great purchases there as well.

Told Ya' So...

Our Customers have been hearing from us that Foreclosure Starts are up in California for months now.   The news is only now being addressed by the mainstream media, who are wrongly calling this corrective multi-month reversal a "Blip". The trend is only going to gain steam as older modifications fall apart and those who are in arrears can't get refinancing wind up going into foreclosure.  The fact that values are increasing may be reducing the number of under-water properties, but it is also making it harder for younger people and those already in arrears to qualify for new loans. 


Just  look at the trend where lenders are cutting staff in their loan generation facilities as the number of requests for new loans goes down every time interest rates tick upwards. The fact is that recent surveys have indicated that today over 51% of the population relies on food stamps, which is more people than are currently employed by the private sector, and 76% are living paycheck to paycheck.  These numbers are not getting better, they are getting worse.  So that means these people will not be making more money per paycheck any time soon.  So anyone who understands numbers knows the increase in foreclosure starts is no "Blip".  It is a trend.


So what does this mean to you?  It means that the slow time is over and we are moving back into a higher flow of inventory.  That means more units going to sale and a better chance to get some sow's ears you can turn into silk purses.  Most folks follow the mainstream news.  So you know something they don't.  Plan for the increase and you will have a distinct advantage over the next few months.

The Homes Have Equity Again....

More and more, we are seeing properties on their way to auction where there is Equity Right Now.


These are great opportunities to be there and be ready to bid.  This also means that there are borrowers out there that simply cannot bring their loans current and they are letting them go to sale.  This means you should be making offers, but you should also be prepared to bid at auction.  People are flipping properties every day.  Don't miss out on a summer of great foreclosure buys!!!

Invest in Your Future with Income Property

There are a number of investment strategies that you can apply with Foreclosure Properties.   Many of our clients go for the "Flip", where you buy a property, put in some work, then sell it for a profit in a short amount of time.  Other buy notes at a discount with a similar goal, to get the property and sell it at a profit or just get  a profit as a result of the auction itself.


But others have discovered the long term strategy of buying rental units like 4-Plexes in order to hold them and collect the rents.  This is a lucrative practice, where you take a lump sumof money and put it into buying a property that will provide tax benefits as well as monthly income.  Once you own it you can borrow against it to get cash to buy other properties as well.  This creates a cash-flow that will allow you to continue investing and add properties each time you have saved enough cash to do so.


County Records Research is a great website to find homes to buy, but that is not all we have to show you.  We see hundreds of multi-unit income properties go into default each and every week.  We have the scoop on all these properties and we have already done the research so you know all the loans and can plan a purchasing strategy that will give you the best possible purchase price.   Ask us about the strategies and let us show you just a few of the many foreclosure properties added to our website each day.

Are there any Good Deals left???

How do you find a Good Deal on a Foreclosure Property?  This is a broad question but the answer is more simple than you would think.  You want to have access to an ongoing source of NOD and NTS listings with frequent updates and a solid group of advisors to help you make decisions.  County Records Research is more than just a website.  We are a source of daily updates and daily advice.


On Monday there will be a Santa Monica CONDO going to auction.  The starting bid is just $73,911 and the unit is valued at over $600,000.00!!!  Would you bid on such a property?  Maybe...  But you would have questions, and you should.  Is this the only loan there is?  How can I be sure? You start by confirming the loans as we have listed them, and in this case we are 100% correct.  You then check on County Taxes to find out if there is anything owed.  Now you ask yourself, what is this place worth to me?


This is the hardest decision you should have to make.  What am I willing to spend?  If you are making an offer, it comes down to what you can afford to borrow.  If you are bidding at auction, it comes down to what you can afford to pull out of your pocket.  Make basic choices.  Don't make things too complicated.  You should give yourself a number of solid options to choose from, and some very simple ways to check them out.  Make sure you drive by the property and if you can find out more about it by speaking to the neighbors or tenants so much the better.  Happy Hunting!

Don't Let the Game Changes Slow You Down....

We always tell you that this is a Dynamic Market because it truly is.  If you are waiting for things to be like they were months or years ago, you are missing the boat.  It won't happen.  You have to go through the data each day and ask yourself where are we NOW?  Are you aware that there are a number of properties going to auction each week that have Equity on the face of everything?  Did you think that everyone was upside-down?  Think again!  There are people out there that let themselves fall so far behind that they are hopelessly out of luck unless they sell.  They cannot refinance because they cannot qualify, and they are still on the fence about selling, even though they have equity.  So go make an offer.  Maybe they just haven't heard the right argument yet.  Maybe they are just in denial.  Strike out on the offer?   Well...  does it make sense to buy a note and start your own foreclosure?  Ask us!


Remember that this market is always in flux and the key is in responding to the changes constructively and being a doer and not an apologist.  Don't look for answers in someone's book or another expensive seminar.  Look at some properties on our website right now, this very moment, and weigh the options and go for it.  You won't get rich until you get off the couch.


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