I would like to Mike and Chris at Mr 3 Days for sharing this with me and all I have to say is WOW! We all knew something sinister was going on with the whole bank bail out thing.  Imagine that, the Government, FDIC and the Banks hosing every tax payer in the country.  THIS IS NOT A JOKE!  Get outraged and call your Senator and Representative!

Today’s rule is Rule No. 1 – Don’t Be Greedy, Make it a “Want – Want” instead of a Win – Win

Real Estate Property Investing is exciting.  The heart really gets pounding when you find out the size of the check you can take to the bank.  While skilled negotiators can increase the results of their efforts, sheer greed can kill opportunities for buying, fixing, renting, and selling investment property.

When sellers get the impression that your primary objective is your profit, they’ll often find another seller to “work with”.

When you’ve created an excellent opportunity for profit and the desperate seller feels that you’re squeezing every last penny from them, you’ll hear a “no”! Or maybe, helpful after-the-fact relatives will find a way to pull the rug from under your deal.

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Check out Jim Fleck’s (aka Agent 009) FREE Fast Profit Secrets for Buying & Selling Houses on the Internet

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“Me first” might produce the largest profit for you one time around, but in the longer run, when you leave enough on the table for everyone, you’ll find that your table keeps getting refilled and the referrals keep coming.

You have heard the term win – win, but I just recently heard a great Commercial Real Estate Expert, Gary Tharp, say that he likes to think of it as “Want – Want”.  If you give them what they want, you are more likely to get what you want.

A seller’s reason to sell is rarely about money, or the price of the house.  It is more emotional, such as they want to be closer to their kids or grandkids, can’t keep up the property, etc.  So take the time to find out what they want instead of focusing of being greedy and beating them up on price.  It will be a much better negotiation and deal for you and the seller in the end.

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Check out Jim Fleck’s (aka Agent 009) FREE Fast Profit Secrets for Buying & Selling Houses on the Internet

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This is post has absolutely nothing to do with Real Estate Investing.  Here is a video of my Son’s first day of Kindergarten and at a new school. And although he has spent the last two years in pre-school at the zoo it is still an emotional day for mom and me but a momentous day for him, big boy school.  He was so excited he got up early this morning; 12:30 am.  A little too early!

I remember those days of fervent anticipation of something new and exciting and I pray that each one of us will seek out those occasions, if not on a daily basis, at least on a weekly or monthly basis.  Live life to its fullest, as my son does each day!  I look at him and remember why God put us on earth, to live for him, to do what he would have us do and to live life to its fullest potential with anticipation and joy!

I don’t know if you’ve heard about HR 1728, but it’s a crazy
infringement on private property rights that is likely to shut down
the creative selling market. IT HAS ALREADY PASSED THE HOUSE AND IS
UNDER CONSIDERATION BY THE SENATE NOW.

House Bill 1728 – Why it’s Death to Your Business and What to Do About it.

In short, it will limit the number of properties you (or anyone, not just
investors) can sell with Owner Financing to 1 transaction every three years.
This is not good!  The details are below but you can skip all that and just
write/email your Senator.

Click below to find your Senator’s Contact information.

http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state

Example Letters you can send are below and are divided into three
categories:  1. You have a Real Estate License, 2. You Buy Using Owner Financing
and 3. You Sell Using Owner Financing.  Pick one and send it TODAY!

The Details (Thank you Central Florida Realty Investors Association (CFRI.net)& Lou Brown for Sending out this detailed information and letters):

The U.S. Senate is considering a bill that would severely limit the way you do business as a creative investor and, more importantly, is an inexcusable infringement of the property rights of all Americans.
HR 1728, which you can view in its entirety here:

http://thomas.loc.gov/home/c111query.html

Search for Bill Number HR 1728 and Click on the one that was sent to the Senate Committee.  Click on Sec 101 Definitions and Scroll Down to Paragraph 3 Sub-section E or just read it below.

SEC. 101. DEFINITIONS.

Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended by adding at the end the following new subsection:
`(3) MORTGAGE ORIGINATOR- The term `mortgage originator’–
`(E) does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 1 property in any 36-month period, provided that such loan–
`(i) is fully amortizing;
`(ii) is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan;
`(iii) has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and
`(iv) meets any other criteria the Federal banking agencies may prescribe; and

It covers a lot of different topics but here’s the important part.  You will NOT be able to sell more than 1 property with owner financing every 3 years!

Their definition of Seller financing includes land contract, owner-held mortgage or wrap-around mortgage-and who knows if they’ll define lease/options as owner financing, too?

So what does it mean to be “subject to the law”? Well, at the very least, it means that you will have to comply with a long, confusing, and penalty-filled piece of national legislation. Here are the types of transactions that you would be restricted from doing more than once every 36 months:

• Selling YOUR OWN HOME using a land contract or owner-held mortgage so that you can get a quicker sale, higher sale price, or better rate of interest than is available in other investments.

• Carrying back owner-held second mortgages on investment properties that you sell.

• Doing any kind of installment sale on residential properties including homes, condos, mobile homes, and even raw land zoned residential.

Yes, there will undoubtedly by ways to “get around it”-some have suggested that getting a mortgage broker’s license and then learning and following the vast new set of regulations would circumvent the “problem”. But bottom line is, this law has to be stopped and it has to be stopped NOW. Here’s why:

1. Congress is trying to regulate the wrong thing. The deals we make are not “loans”-they don’t involve the transfer of money, or points or closing costs or adjustable rates or any of the other things that caused the mortgage crisis to begin with. They are INSTALLMENT SALES. We don’t give money to the “borrower” and wait for it to be paid back: we give a property to the borrower and wait for it to be paid off. Regulating this will have no effect on the foreclosure crisis
2. It is a completely unacceptable infringement on private property rights. When I own a piece of property and find a ready, willing, and able purchaser, I should be able to control the sale of that property within the existing laws of my state, which already regulate the interest rate that I am able to charge and some of the terms of the sale. The government does not have the right to tell us that we need special licensing to sell our own properties; nor do they have the right to further regulate the terms under which we can sell or burden small investors with a new set of rules that we can’t comply with.

Not only will this new law, if passed as written, effectively choke off owner financing as an exit strategy for you, it will also take away housing choice for your buyers. The millions of Americans who’ve been through foreclosure in the last 3 years can’t buy a house in any way OTHER THAN to negotiate owner financing with a seller… and HR 1728 would greatly reduce the number of properties available in this way. Millions of potential home owners who would otherwise be able to re-start the process of paying off a home, and get the tax advantages of ownership, will be reduced to renting until they are able to qualify for bank financing.

What to Do Right Now

This bill has already passed the House and is waiting for Senate approval. Please contact your senator via email and snail mail to let him know that this law MUST NOT PASS in its current form.

As always in cases like this, you have an automatic handicap to overcome-the fact that you are a real estate investor and are therefore viewed as part of the problem. So when you write, don’t emphasize the nature of your business, just that you and your buyers would be greatly aversely affected by the new law.
We need THOUSANDS of these communications to go out in the next few days to have a CHANCE of stopping this in its tracks. So whether you’re a new or experienced investor, PLEASE take the time right now to write your elected representative!

Here are some sample letters or emails.

!!!!!!!!!!!!!!!!!!   VERY IMPORTANT  !!!!!!!!!!!!!!!!!!!!!

Be Firm But Respectful!  The time to act is NOW!  Stand up for our Business

IF YOU HAVE A REAL ESTATE LICENSE

Dear Senator [name]

My name is (insert name here) and I am a _____ year resident of (insert city name here).
I am writing you to encourage you to vote NO on HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act”.
While many of the provisions of the act are positive steps toward mortgage reform, the inclusion of private owners in the act (see section 101(3)(e)) will enormously reduce the housing choice of Ohioans and the ability of home owners to sell properties in this already-slow market.

As a real estate broker, I have seen several dozen cases in the past year of home sellers and buyers coming to an agreement for an installment sale on a property that the owner desperately needed to sell (often to avoid foreclosure) and the buyer desperately wanted to buy, but could not raise the down payment needed for conventional financing.
In all cases, these sales turned out to be win-win deals for the buyer and seller; the seller was able to get rid of an unwanted property to a buyer who loved it, and the buyer was able to get his new home at an affordable payment and interest rates with none of the usual costs (points, application fees, etc.) inherent in more conventional mortgage transactions.
In many states these transactions are already regulated by state law: a low maximum interest rate is already in place, and both the buyer and seller are protected by other regulations at the state level.

In defense of private property rights, owners should be exempted from the burdensome and unnecessary rules that this law foists upon them. In its current form, it would all but shut off the “owner financing” market that is the only way that many sellers can sell and many buyers can buy right now.
PLEASE DO NOT LET THIS RESTRICTION ON PRIVATE PROPERTY RIGHTS PASS THE SENATE. It is unnecessary to stop private buyers and sellers from transacting business that is beneficial to both of them-they are not the problem that the bill seeks to solve. HR 1728 would be extremely harmful to thousands of your constituents.

It will exacerbate the problem of foreclosures, as fewer sellers will be able to sell their homes to avoid it, and CAUSED BY foreclosure, as fewer buyers who have recently experienced foreclosure will be able to re-start the process of home ownership inexpensively and easily by negotiating owner financing.

Thank you for your consideration;
Insert Name
Licensed Real Estate Broker license #
Phone #
email

IF YOU SELL HOUSES WITH OWNER FINANCING

Dear Senator [name]

My name is (insert name here) and I am a _____ year resident of (insert city name here).

I am writing you to encourage you to vote NO on HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act”.

While many of the provisions of the act are positive steps toward mortgage reform, the inclusion of private owners in the act (see section 101(3)(e)) will enormously reduce the housing choice of many people and the ability of home owners to sell properties in this already-slow market.

As a professional housing provider, I sell several houses each year to home buyers on installment sale [or, if you have not purchased a property, add here: "I had planned to sell several houses this year on installment sale"] a practice that would become impossible under this law in its current form.
I find that in today’s slow market, the best way for me to help buyers who desperately want to become homeowners, but who cannot raise the down payment or meet the other terms needed for conventional financing, is to allow them to make payments directly to me.

These sales are win-win deals for both the buyer and myself; I am able to turn over homes that I’ve bought and rehabbed (often from foreclosures) to buyers who love and can afford them, and the buyer can get his new home at an affordable payment and interest rates with none of the usual costs (points, application fees, etc.) inherent in more conventional mortgage transactions.
In many states these transactions are already regulated by state law: a low maximum interest rate is already in place, and both the buyer and seller are protected by other regulations at the state level.

Without the ability to sell homes in this way, I will no longer be able to invest in and renovate any of the tens of thousands of vacant, ugly houses placed on the market by the foreclosure crisis, and my small-but-beneficial business will literally be in ruins. Perhaps more importantly, the homeowner-buyers that I serve will be forced to rent rather than moving toward the American dream of home ownership.
In defense of private property rights, owners should be exempted from the burdensome and unnecessary rules that this law foists upon them. In its current form, it would all but shut off the “owner financing” market that is the only way that many sellers can sell and many buyers can buy right now.

PLEASE DO NOT LET THIS RESTRICTION ON PRIVATE PROPERTY RIGHTS PASS THE SENATE. It is unnecessary to stop private buyers and sellers from transacting business that is beneficial to both of them-they are not the problem that the bill seeks to solve. HR 1728 would be extremely harmful to thousands of your constituents.

It will exacerbate the problem of foreclosures, as fewer sellers will be able to sell their homes to avoid it, and CAUSED BY foreclosure, as fewer buyers who have recently experienced foreclosure will be able to re-start the process of home ownership inexpensively and easily by negotiating owner financing.

Thank you for your consideration;
Insert Name
Phone Number:
email:

IF YOU BUY HOUSES WITH OWNER FINANCING

Dear Senator [name]

My name is (insert name here) and I am a ____ year resident of (insert city name here).

I am writing you to encourage you to vote NO on HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act”.

While many of the provisions of the act are positive steps toward mortgage reform, the inclusion of private owners in the act (see section 101(3)(e)) will enormously reduce the housing choice of many people and the ability of home owners to sell properties in this already slow market.

In the past year, I have purchased and renovated several homes-made possible only because the sellers of these homes were able to sell to me using owner financing in an unrestricted way.

For many of these property owners, seller financing was the only way to unburden themselves of an unwanted property that, in some cases, was headed toward foreclosure before I purchased it.

Without this ability, I can not continue to buy and renovate properties in the neighborhoods that so need me and my colleagues to invest our time, energy, and money in rehabbing properties. Bank financing is not an option for these properties because of the condition; only financing carried by the sellers will suffice.
Section 101(3)(e) would keep my sellers from utilizing this method of getting rid of unwanted properties in today’s market, should they have more than 1 to sell.

In defense of private property rights, owners should be exempted from the burdensome and unnecessary rules that this law foists upon them. In its current form, it would all but shut off the “owner financing” market that is the only way that many sellers can sell and many buyers can buy right now.

PLEASE DO NOT LET THIS RESTRICTION ON PRIVATE PROPERTY RIGHTS PASS THE SENATE. It is unnecessary to stop private buyers and sellers from transacting business that is beneficial to both of them-they are not the problem that the bill seeks to solve. HR 1728 would be extremely harmful to thousands of your constituents.

It will exacerbate the problem of foreclosures, as fewer sellers will be able to sell their homes to avoid it, and CAUSED BY foreclosure, as fewer buyers who have recently experienced foreclosure will be able to re-start the process of home ownership inexpensively and easily by negotiating owner financing.

Thank you for your consideration;
Insert Name
Phone Number:
email:

by Derick Sutton, http://www.diveintorealestatepro.com

A Short Sale approved for a Tampa Investment Property for a client and needs a Real Estate investor buyer.

4209 Orient Rd in Tampa
Short Sale Approval is $38,000

Call TONY GONZALEZ
Keller Williams Tampa Properties

EMAIL:Tony.Gonzalez@KW.com
Cell: 813-340-6938

God Bless!
Derick Sutton

P.S. Web 2.0 and Blogging with Ease. Click below to see a new web based system that automatically blasts video, podcast & text blogs, to Video Sites, Bookmarking Sites, RSS Feeds and more. Dominate the first page of Google in certain Keywords.

http://www.DiveIntoBlogs.com

P.S.S While most people are suffering from the affects of the current real estate market there are many more that are enjoying the opportunities that the market has brought about.  Derick Sutton of Blue Marble Property Solutions has released a powerful new advanced training series entitled ‘Dive into Real Estate Pro’.

Through the course, students are given the opportunity to learn from the masters and to get the edge needed to become successful real estate investors in today’s market with Recession Proof Tactics you will only fine here.

For more information on the Webinar Series please visit:  http://www.DiveIntoRealEstatePro.com

Blue Marble Property Solutions, LLC is a Better Business Bureau Accredited Business.  As a Christian owned and operated Real Estate Investment Property Company, Blue Marble specializes in Buying and Selling Pre-Foreclosures as well as negotiating Short Sales with lenders.  Blue Marble Property Solutions’ Managing Partners are Derick Sutton and Ted Hall who have 60 years combined experience in business and real estate.

ARV: $120,000 at a 9 cap.

Your Price: $62,000 Cash

The “front” house is the main house, and the tenant has been in it for 10 years.  He is currently paying $600 per month.  This one could use $12,000 in repairs, which includes new shingles, kitchen, and bath. The tenant has “put up” with it for so long that he is willing to stay there “as is” as long as the rent doesn’t increase right away.

The “back” house has a great new kitchen and bath but could use some carpet, and a new ceiling in a 150sf room that has a drop down ceiling or drop down can be repaired.  Approximately $5,000 in repairs.

This is a great rental property for someone in real estate investing or that wants to live in the back house and have the tenant in the front house pay their mortgage.  There is plenty of room for off-street parking for four cars.  There is also a raised deck adjacent to an above ground pool which only needs to be cleaned out and filled to be usable.

Adjacent Multi Family investment real estate property similar to this one is renting at $600 per unit.  So, with two tenants in the existing houses each paying $600 per month, there is room for several hundred dollars per month in positive cash flow depending upon how it is financed.

Price: $62,000

This St Petersburg Investment Property is immediately available to the right buyer and a $2,000 deposit held in escrow and credited toward assignment fee.

Contact:  Ted Hall at Blue Marble Property Solutions, LLC Phone: 727-944-5448 Cell: 727-742-0753 E-mail: thall@BlueMarblePS.com

by Derick Sutton
http://www.DiveIntoRealEstatePro.com

Laura emailed me a question about a short sale offer that had been initially accepted then rejected because the lender received a slightly higher offer and she wondered if they could do that.  So I thought I would post a blog with my answer because I am sure this happening all over.

Laura stated “I put in a full price offer on a short sale. I was told that the bank accepted my offer, and that Fannie Mae had to sign off…three weeks later, I was told that there was a cash offer that was slightly higher than mine, and that I needed to offer more…is this legit? Can they accept more than one offer?”

Thanks for your assistance.
Laura

Laura unfortunately,they can accept another offer if they did not sign yours and fax it back to you.   The contract is not enforceable until they sign and fax back.  To make sure that this doesn’t happen to you again, add a statement in the additional terms of the contract that simply states that:

“Seller will not submit any other offers to the lender unless Seller cancels this contract in writing”.  Run the statement by your lawyer or agent to make sure it complies with your state’s laws.

If the seller/Realtor rejects the statement in the contract explain that multiple contracts confuse the lender and this is non-negotiable because you have been burned before.

If the bank rejects your initial offer of 85% of the value let them counter and see if you want to accept it.

Also, don’t be afraid to ask for 6% seller concessions toward closing costs and repairs (they will probably approve 3% but why not ask for more),

Also add that “The closing is contingent upon lender’s short sale approval in writing that is satisfactory to the Buyer and Seller”.  This statement may already be a Short Sale addendum provided as part of the contract but it allows both you and the Seller to stay in control of what the lender is offering as a short sale.

As always run all of these by your lawyer and/or agent to make sure it complies with state law.

Hope that helps.

For more information about foreclosures, short sales, real estate investment property, creative owner financing, probate real estate investing, auction homes, internet marketing to buy and sell property, business credit and wholesale investment property strategies visit http://www.DiveIntoRealEstatePro.com for free training in those and more areas. Also, get your free report when you visit.

by Derick Sutton

How do you determine if a property is wholesale investment property material or not? Determining whether real estate is a good investment or not in many ways has more to do with the seller than the property itself.  It really does not matter if a property is located in a prime location with a high value or located in a less than desirable location.

A Wholesale Real Estate Investment is a property whose owner is motivated to sell and one which you can acquire at a very low price and/or with owner financing.  You can wholesale any house if acquired at the right price and/or the right owner financing terms.

What makes a motivated seller? A motivated seller is someone who wants to sell his or her property in the quickest possible time. Maybe the seller is going through a divorce, and the couple does not want to continue paying the mortgage. They want to sell their Real Estate. Fast. You have got a motivated seller right there.

Those who inherit properties can also be considered motivated sellers. They already have a home. Then suddenly a property – a property they do not want or need – falls in their laps. They do not want to manage it as an investment property. They do not want to pay taxes on it. They just want to get rid of it as fast as they can and make some money too. You have another motivated seller that may agree to owner financing.

You can also find people who are moving for one reason or another, and they have to dispose of their property as soon as they can. These folks are willing to sell their properties for less in exchange of the convenience of getting their money and moving on with their lives with the least hassle.  This is another good candidate from whom to acquire an investment property with owner financing.

You will also encounter property owners whose properties are not in a very good condition; these are sometimes referred to as rehab houses, fixer uppers or ugly houses. The owners cannot afford to fix the house, and they want to sell. They need to sell. Another motivated seller.

Sometimes you will come across tired landlords who have fixed one too many toilets in the middle of the night or are tired of looking for tenants.  They may need cash, or they may be willing to entertain owner financing for their real estate investment property.

You might encounter people who are filing bankruptcy and liquidating assets as soon as they can to whoever will help them. A motivated seller. This type also includes those with pressing financial problems of any sort. Selling their real estate properties will give them an easy way out.

The highest number of motivated sellers you would likely encounter in these trying times would be those who are faced with a foreclosure. With the sub-prime crisis, the number of those entering foreclosure is climbing, and as a wholesale property investor, you would definitely find many who are motivated to sell their real estate properties at discounted prices.

Some people question whether wholesaling is ethical, asking distressed homeowners for deep discounts on their houses.  But keep in mind that you, as a wholesaler, are helping those who are in need. You are providing them a means to quickly take care of their issue.  Investing in wholesale properties is a good way to help those who are in need and make a profit at the same time.

Blue Marble Property Solutions, LLC is a Better Business Bureau Accredited Business.  As a Christian owned and operated Real Estate Company, Blue Marble specializes in Buying and Selling Wholesale Investment Property, Pre-foreclosures as well as negotiating Short Sales with lenders.

To find out more about Wholesaling Investment Property and to get a free eBook on Recession Proof Real Estate Strategies to make real money in this tumultuous market, please visit http://www.BlueMarbleInvestmentProperty.com

To sign up for information on a free Real Estate Investing Webinar Series that will cover wholesaling and many other investment strategies, visit http://www.DiveIntoRealEstatePro.com.  You are sure to learn how to really make money in this crazy real estate and financial market.