Extreme Foreclosure

I ran across this story this morning about how a family that was part of Extreme Home Makeover is now facing foreclosure. However, I get so sick and tire of people claiming to be the victim of the ‘foreclosure crisis’. This isn’t a victim of the current foreclosure crisis, this is a victim of ‘Exteme Ignorance’.

According to the paper, this couple used the home as collateral to borrow $450,000 for a construction business that failed. This doesn’t even take into consideration that over $250K was also donated to the family and their 3 kids for scholarships.

In most cases, regardless how much you help a homeowner out, how much you risk to bail their ass out of a sling - they’ll end up in the same position within time.

Here’s the story if you’re interested:

http://news.yahoo.com/s/ap/20080728/ap_en_tv/tv_extreme_makeover_foreclosure

2K Dinner Questions

Happy Independence Day!

I hope you’re enjoying financial independence and if not - I hope you’re making the arrangements today to celebrate your own Financial Independence in the near future.

I made the mistake of posting the $2K Dinner Video just before leaving for Orlando on a 9 day vacation. I say it was a mistake because I only looked at the computer but two times the entire time I was gone and couldn’t answer some of the questions you had.

Anyway, I’ll try to answer the questions in this post.

First, in case you missed the video, here it is again:

The $2K Dinner Video

Your questions:

“Where is Swampers Studios?”

There’s no such thing - it was intended to be a joke because I confessed in a previous video that I had no idea what the hell the Swampers were, here’s the other video:

Drive Video

you never showed how you assign the deal, weather it was a deed or an option you got from the homeowner.

Plus you didn’t mention that these techniques will only work with homeowners who owe far less than what there home is worth, or you’ll never find a motivated buyer to assign them too.

Unfortunately, in todays market I think there is a much more abundance of homeowners who owe more that what there house is worth

1st - yes I did show how I did the deal. I used a warranty deed to take over the home, then resold the property to another investor in my market that I saw at dinner netting me a little over $2K. Remember, I didn’t want this deal because there wasn’t a lot of equity, however the investor I flipped it to, was happy.

Just because the deal may be tight for you doesn’t mean there isn’t someone else that’d be happy with that same deal.

I’ve seen deals that I wouldn’t touch that other investors are totally stoked to get. That’s why it’s important to build a list of buyers. There’s 3 different list of buyers you can target:

- A list of investors ( one of the easiest to find, focused strictly on the numbers )
- A list of A credit buyers looking for homes to live in ( focused on falling in love with the home - looking for a pretty house )
- A list of buyers looking for houses with credit challenges with a money to put down ( need flexible financing )

Finally- yes there are more deals where the homeowner owes more than the home is worth, however there’s still deals (remember - this is a numbers game!)

And what are you doing with the deals where homeowners owe more than the home is worth but are willing to deal?

Are you not pursuing short sales for these deals?
I’ll tell you what - Send me those deals and I’ll do ‘em.

Banks don’t want houses, so they’ll discount. So, lets say you send in 5 short sale offers - will you get every deal?

Probably not, but what if you get 1 or 2?

Remember - it’s a numbers game!

Who’s the chick in the film?

That’s my new girlfriend…
Just kidding - I have no clue.

What about investing in California

I feel there’s still money to be made in the California market, however investors should be crystal clear on the numbers. I like Kiyosaki’s outlook in these videos:

Rich Dad Video on the California market

Most “short sales” are failing, because the bank “loss mitigators” are not responding before the auction date and the property is foreclosed. If you can negotiate with a loss mitigator before the auction date and reach agreement, then you can “double close” with your buyer.

This continues to be a challenge, that’s why I highly recommend marketing to obtain pre-preforeclosure leads, so that you’re able to get the lead before anyone else knows there’s a problem and so you’re given enough time to negotiate, then sell the deal.

Gotta go and get ready to bbq and blow up some stuff.

Have a safe 4th

Derek

I survived Disney

Got back late Monday afternoon from a 9 day vacation in Orlando.

Since, I hate flying, we drove almost 13 hours but it was fairly pleasant because we made an extremely wise investment -

2 dvd players with PS 2 hookups for my boys. So, both had their old PS 2’s ( I say old because now they have a PS 3 and a Wii)

Didn’t hear a word for the entire trip.

The trip was really cool and a much needed break from the day to day grind.

Back to business as usual though and I’m up to my eyeballs in emails,

Talk soon,

Derek

The Easy, No Risk Way To Invest In Real Estate, Plus The Story Of The $2000 Dinner

A lot of people assume in order to make money investing in real estate, you need credit, cash, a license, and years of experience. However, in this video for Free Question Friday, I’m going to show you there’s a no risk, easy approach, plus I’m going to reveal…

The Story of The $2,000 Dinner!

Best of all- there’s nothing for sale in this video - 100% content!

Now, there really was a $2,000 Dinner as well as an easy approach to invest in real estate - you’ll see it all in this video. Once you finish the video, the form for you to use is downloadable below the video (Just right click and choose Save As to save to your computer).

I’d love to hear your comments on the video, so post them below once the video is complete and share by clicking the ‘Share This Button’ below the video.

Download The Option Agreement by Right Clicking Here

I’m still alive

As you can see, it’s been a few weeks since my last post.

It’s been extremely busy here with kids getting out of school, planning a vacation, and running multiple businesses…

Let’s get back on track with this week’s Free question:

I missed my opportunity in California in 1998, it is now 2008, and I
don’t want to miss it again. I’m looking at buying your
pre-foreclosure coarse, but I want to ask you a couple of questions
first.
1)I know this will work anywhere, but the California market appears
to be a different animal. My question is, will your program work for
California. The reason I ask that is some gurus give great advice,
but it is only for their specific market.
2) Maybe your coarse will cover this but I would like to know first
if this is OK how in the world do you get the loan current on a
preforeclosure, without using your own money?

Derek, if you ever come to California I will take you to see the
Clippers, naw just kidding, the Lakers I mean. We also could catch a
baseball game( wherever) my treat just to pick your brain a bit

First, understand the market is just making a correction. You know 10 years ago, people were wondering if they could still make money in the California market as prices continued to soar. Some sat on the sidelines and just wondered…

And some made money, but investors had a different complaint 10 years ago. The complaint was that they couldn’t find the deals.

Now, people are lining up ready to hand the deed over just to get out from under the deal. And, now people complain they can’t sell the deal.

Let’s look at my market - good ole’ Alabama…

Different market entirely - It never really took off like some of the bigger markets, and investors here would complain that they couldn’t make money because of lack of appreciation.

People will always wonder, always complain but the only people that really make any money at all are the ones that stop wondering and start doing.

Let me ask you this - do you think there’s no one making money in California investing in Real Estate?

Someone’s buying deals left and right and I’d almost be willing to bet there’s a significantly lesser amount of competition.

Play it smart but get going.

On to question #2:

I have buyer’s lined up ready and willing to invest in the deal before I ever talk to a seller.

They know if I call, then they’d better get off their ass and look at the deal. I’ll use their funds with a double close or to catch the payments up if I’m in a time crunch.

When you already have a backend (a buyer) then you’ve just got to focus on finding good solid deals that meet their criteria.

Lastly, I’d love the Lakers game, but you’ll probably never see me in California cause I hate flying.

I’ve flown several times with each time hating it a little more. I believe it has something to do with the lack of control.

Gotta go -

Derek

PS -By the way, this next week celebrates my 8 year wedding anniversary!

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