3% Interest/5 years for Distressed Homeowners?

They’re still being very quiet about this as of this morning, but rumors are flying, as reported by the Associated Press, that the government has an even newer plan for distressed homeowners who need foreclosure help.

They’re still being very quiet about this as of this morning, but rumors are flying, as reported by the Associated Press, that the government has an even  newer plan for distressed homeowners who need foreclosure help.

 

The deal is cooking that will give about 3 million of these owners who face house foreclosures easy mortgages for about 5 years.

 

Translated that means about $50 billion of the $500 billion bailout will modify mortgages at 3% for the next 5 years for these folks who are in danger of losing their homes.  Forget the fact that many of them probably shouldn’t have received the loans in the first place and maybe can’t hold on after the 5 years are up. But maybe I’m just not senstive enough…

 

Of course, all of this could go down the tubes. It’s not a done deal yet.

 

But it kind of concerns those of us who are conservative real estate investors and didn’t fall for a lot of the hype during the last boom market.

 

That’s because we understand ARM’s.

 

We know that a "balloon payment" will happen at some point.

 

Apparently a lot of these distressed owners didn’t know that.

 

So I propose that the No child Left Behind Program should teach every high school student something about mortgages and especially ARM’s. Maybe we’ll be able to avoid all this boiling cauldron full of distressed properties  trouble in the future. 

Read Sources: Government Prepares Loan Modification Plan

Steve Cook Rehabs a Haunted House

Real estate investor Steve Cook takes us step by step through the infamous Haunted House Flip where he pocketed $175,000…

 Real Estate investor Steve Cook takes us through the infamous Haunted House Deal that made him almost $200,000.

The property was the ugliest in the neighborhood.  Steve bought it for $200,000, rehabbed it and then turned it around to sell it to a law firm for $375,000.

 

But that’s not all.

Steve did some creative deal making and got the buyer to let him buy back the vacant back portion of the property for $1. That’s not a misprint.  He was able to buy the vacant back yard of the property that is zoned commercial and now he can either sell it for around $40,000 or keep it and go through the subdivision process and later sell out for possibly around $100,000.

 

 

So who says you can do good real estate deals during these times?  Real estate investors are out there making these deals happen and so can you. 

 

Here’s today’s take away advice from Steve about negotiating and I have always heard this same advice from my Dad, a 51-year real estate investor veteran:  When "they" ask for something, you ask for something back." 

 

In Steve’s case, it was the vacant lot for $1.

 

It’s really that simple.     

Hard Money Loans to the Rescue

No matter what Washington does or doesn’t do during this crisis, money will be tighter.
So what are the basics of hard money loans?

Hard money loans are now the in thing with a lot of real estate investors.
We’re all very painfully aware why.
No matter what Washington does or doesn’t do during this crisis, money will be tighter.
So what are the basics of hard money loans?
Why are hard money loans more expensive than more tradional bank loans?
Does a poor credit rating really matter?
How fast can you get a hard money loan for residential?

Where can you find hard money lenders?

How difficult is hard money financing? 

These questions are explained where everyone can easily understand over at the World of Forex.

Go to Hard Money Loan Basics and Important Information

Landlord Warning: Your Tenant Wants a Pet

As a landlord you know one of the biggest problems you face is your tenants pets. Before you even consider allowing your tenants to bring home that adorable, puppy, kitten, bird, reptile or even snake- watch this video…

 As a landlord you know one of the biggest problems you face is your tenants’ pets. 

Before you even consider allowing your tenants to bring home that adorable, puppy, kitten, bird, reptile or even snake- watch this video…

 

 

 

 

All jokes aside, we do not allow pets in most of our units. 
That has solved a lot of problems with our carpets.  Another fact to think about is your next tenant who may be allergic to animals, especially cats. 

We have lost perspective tenants because they could smell the previous tenant’s pet even after we had thoroughly cleaned the unit.  

When Bloggers Say Nasty Things About Your Property

Nasty bloggers is the latest minefield for some real estate sellers.

Beware because someone online may be writing some not -so- nice things about the property you are selling.

Nasty bloggers is the latest minefield for some real estate sellers.

Beware because someone online may be writing some not -so- nice things about the property you are selling.

How bad is it?

The Wall Street Journal is reporting such comments as "This is what happens when you are filthy rich. No one tells you  you have bad tastes."

There have been other comments that are less than helpful when you’re trying to sell in a difficult market such as it’s "McMansion chic" and "it should be bought by Transylvania for use as their embassy."

The higher end properties seem to be affected the most by this movement but it is gaining enough traction that it is now concerning a lot of realtors.

See how some of them have fought back.

Go to Housing Blogs Throw Stones