Archive for June, 2009
Jun
25
How to Buy Bank Notes Exit Strategies Note Buying Profits.com
Posted by: | Commentsihbkep64 asked:
www.notebuyingprofits.com No-nonsense How-to-Buy-Defaulted-Morgages Information. Up-to-date! Hours of FREE Defaulted Mortages Training Videos, Free 1-on-1 Coaching Session! Click or Call 718-783-7605
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Jun
17
THE old bank notes :OLD MONEYS ANTIQUE BANKNOTES back in the day part 3
Posted by: | Commentsmeterdetecting asked:
old bank notes OLD MONEYS ANTIQUE BANKNOTES back in the day by decima
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Jun
12
Foreclosed Homes in Ann Arbor: Options to Consider to Avoid the Forclosure Auction
Posted by: | CommentsDan Ho asked:
Forclosed homes in Ann Arbor are on the rise, even though Ann Arbor is still one of the economic hubs of Michigan.
But the reality is that despite the University of Michigan, and all the companies doing business in Ann Arbor, the town is feeling the crunch of the state’s overall bad economy. Pfizer pharmaceuticals, for example, recently announced that by the end of 2008 they will be closing up shop, which will mean the further disappearance of a couple thousand jobs from the Ann Arbor area.
Unfortunately, foreclosed homes in Ann Arbor is a sad testament to these economic realities.
If you’re an individual or couple faced with the possibility of soon becoming one of the forclosed homes in Ann Arbor, all is not lost.
This article will educate you on some facts, and some strategies that can help you avoid or stop the foreclosure.
First, your pending foreclosure, whether you like it or not, is public record. When you’ve missed 3 payments on your mortgage, you enter preforeclosure stage. The lender (usually the bank) passes off your info to an attorney who then files your information for 4 weeks. 28 days later your home will be auctioned off on the Washtenaw county courthouse steps.
Your info must be submitted by the attorney for 4 weeks and will appear in a paper called The Legal News, which is accessible to anyone in the public who wants it.
There is a right of redemption period in Michigan that is usually 6 months if your home is owner occupied, but only 30 days if it’s vacant.
Foreclosed Homes in Ann Arbor: Options to Consider
If you work in tandem with a real estate investor, you have a couple of viable options to avoid the foreclosure.
One option is called a short sale. It’s not something you can do yourself. It’s something a real estate investor would have to do. You would have to come to an agreement with the real estate investor that you’ll allow your home to be short saled.
The investor will then have to work with the loss mitigation department of your lender to try to discount the defaulted mortgage and build a case of hardship for you, and also for why your home is a good candidate for a short sale.
Each of these will be explained briefly.
Foreclosed Homes in Ann Arbor
First, the investor must be able to discount your defaulted mortgage otherwise there is no profit, and, therefore incentive, in it for him. If your mortgage balance is, say, $200,000, then the short sale investor may make a case for the bank to let him buy the defaulted note for, say, $150,000, thereby creating $50,000 in equity. The bank, if it accepts the short sale, will require the investor to close soon on the house (usually 30 days after short sale acceptance) and that it be purchased all cash.
Why would a bank allow a short sale? For the simple reason that it costs a lot of money to have a property go through foreclosure and it may be cheaper to wipe off a non-performing asset from their books now rather than pay more later.
How do you benefit?
Forclosed Homes in Ann Arbor
You benefit because if the real estate short seller will then own the property and take over the holding costs, and risks, while you walk away before the foreclosure happens, thus sparing your credit for taking a significant hit. In short, you get to move on with your life with less damage and sooner.
Another option when working with a real estate investor is the lease option, also called a rent to own. If you are facing the prospect of being one of the foreclosed homes in Ann Arbor, you may allow an investor to try to find you a tenant-buyer for your property.
If he or she can find one in time, then you can allow you home to be taken over on a rent to buy basis and the tenant-buyer will then assume your monthly mortgage payments, with an option to purchase the house at a later date. Again, you get to avoid foreclosure, but will have to move out of your home and on with your life.
The third option to consider to stop a foreclosure is talking to an attorney about filing for bankruptcy. But be careful when considering this option because a bankruptcy will leave your credit in upheaval for many years. And it also will not allow you to keep your home in the end, anyway.
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Forclosed homes in Ann Arbor are on the rise, even though Ann Arbor is still one of the economic hubs of Michigan.
But the reality is that despite the University of Michigan, and all the companies doing business in Ann Arbor, the town is feeling the crunch of the state’s overall bad economy. Pfizer pharmaceuticals, for example, recently announced that by the end of 2008 they will be closing up shop, which will mean the further disappearance of a couple thousand jobs from the Ann Arbor area.
Unfortunately, foreclosed homes in Ann Arbor is a sad testament to these economic realities.
If you’re an individual or couple faced with the possibility of soon becoming one of the forclosed homes in Ann Arbor, all is not lost.
This article will educate you on some facts, and some strategies that can help you avoid or stop the foreclosure.
First, your pending foreclosure, whether you like it or not, is public record. When you’ve missed 3 payments on your mortgage, you enter preforeclosure stage. The lender (usually the bank) passes off your info to an attorney who then files your information for 4 weeks. 28 days later your home will be auctioned off on the Washtenaw county courthouse steps.
Your info must be submitted by the attorney for 4 weeks and will appear in a paper called The Legal News, which is accessible to anyone in the public who wants it.
There is a right of redemption period in Michigan that is usually 6 months if your home is owner occupied, but only 30 days if it’s vacant.
Foreclosed Homes in Ann Arbor: Options to Consider
If you work in tandem with a real estate investor, you have a couple of viable options to avoid the foreclosure.
One option is called a short sale. It’s not something you can do yourself. It’s something a real estate investor would have to do. You would have to come to an agreement with the real estate investor that you’ll allow your home to be short saled.
The investor will then have to work with the loss mitigation department of your lender to try to discount the defaulted mortgage and build a case of hardship for you, and also for why your home is a good candidate for a short sale.
Each of these will be explained briefly.
Foreclosed Homes in Ann Arbor
First, the investor must be able to discount your defaulted mortgage otherwise there is no profit, and, therefore incentive, in it for him. If your mortgage balance is, say, $200,000, then the short sale investor may make a case for the bank to let him buy the defaulted note for, say, $150,000, thereby creating $50,000 in equity. The bank, if it accepts the short sale, will require the investor to close soon on the house (usually 30 days after short sale acceptance) and that it be purchased all cash.
Why would a bank allow a short sale? For the simple reason that it costs a lot of money to have a property go through foreclosure and it may be cheaper to wipe off a non-performing asset from their books now rather than pay more later.
How do you benefit?
Forclosed Homes in Ann Arbor
You benefit because if the real estate short seller will then own the property and take over the holding costs, and risks, while you walk away before the foreclosure happens, thus sparing your credit for taking a significant hit. In short, you get to move on with your life with less damage and sooner.
Another option when working with a real estate investor is the lease option, also called a rent to own. If you are facing the prospect of being one of the foreclosed homes in Ann Arbor, you may allow an investor to try to find you a tenant-buyer for your property.
If he or she can find one in time, then you can allow you home to be taken over on a rent to buy basis and the tenant-buyer will then assume your monthly mortgage payments, with an option to purchase the house at a later date. Again, you get to avoid foreclosure, but will have to move out of your home and on with your life.
The third option to consider to stop a foreclosure is talking to an attorney about filing for bankruptcy. But be careful when considering this option because a bankruptcy will leave your credit in upheaval for many years. And it also will not allow you to keep your home in the end, anyway.
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Jun
11
How to Increase Your Return on Investment Buying Bulk REOs and Notes
Posted by: | CommentsKyle Ransom asked:
There is no doubt that with the onslaught of bank foreclosures there is plenty of real estate based assets to buy. The market for bulk portfolios can offer great opportunities for investment if the capital is available to invest and a sound exit strategy is place. Most investors who buy bulk REOs or note portfolios tends to either flip their investments or buy and hold. Both exit strategies are can reap handsome returns when dealing in the tens to hundreds of millions of dollars.
There is a downside however to buying bulk real estate based assets when flipping or buying and holding these assets. For example, if the exit strategy is to flip the portfolio, the return on investment really depends on how fast the end buyer actually buys and for how much. On the other hand, if the investment strategy is to buy and hold the portfolio, the return on investment depends mostly on the rental markets and the tenants’ ability to pay on the properties or the clients’ ability to pay on the notes. To be fair, most players in this market do have sound exit strategies in place and do very well selling to their own network of buyers and clients.
However, the economy continues to weaken due to high employment and lack of available credit to stimulate the markets. If these trends continue, we can expect to see an already small pool of end buyers shrink even more. The less end buyers available to support either exit strategy, whether flipping or buying and holding will swing the risk reward factor more towards the risk and possibly decrease the return on investment.
Fortunately, there may be a solution to this pitfall. Why not invest in such a way to profit from multiple streams of income while acquiring bank portfolios at a much better discount? It is quite possible to accomplish this, while investing the same amount on capital. Think about it. Instead of spending $10M or more for the a REO package or note pool, why not buy the bank along with all of its’ assets. Doing so will:
· Recoup the initial investment from day one
· Acquire bank assets for much less buying just the REO or notes
· Give access to nine times more capital then using your own investment capital
· Takeover a massive profit center from the interest and fees the bank generates
· Instantly increase the value of the banking center after acquisition by a third or more
· Get the inside track to purchase more banks.
It may be interesting to know that over 120 banking institutions have failed this year so far and more failures are expected to come. Most banking centers would rather try to sell their financial institution rather than let it fail and have the F.D.I.C. take it over. That said there are plenty of opportunities out there. I knew of one bank that was for sale for $10M with over $100M in assets! Banking executives are buying selling on a daily basis. As a matter of fact, this is how a lot of the financial institutions used their TARP money if you ever wondered where some of that $700B went.
So how can an investor buy a banking center? Bank sales are usually not publicly listed mainly because banking executives do not want their investors to know that their investments are at risk. So you probably will not hear of any banks for sale through normal channels or even the media. These deals usually happen within the very closed circles but that does not mean that anyone can not pay this game too. The trick is getting in those circles. Once in those circles, an investor can gain access to many more inside deals that can reap huge returns are for the taking.
Kansieo.com
There is no doubt that with the onslaught of bank foreclosures there is plenty of real estate based assets to buy. The market for bulk portfolios can offer great opportunities for investment if the capital is available to invest and a sound exit strategy is place. Most investors who buy bulk REOs or note portfolios tends to either flip their investments or buy and hold. Both exit strategies are can reap handsome returns when dealing in the tens to hundreds of millions of dollars.
There is a downside however to buying bulk real estate based assets when flipping or buying and holding these assets. For example, if the exit strategy is to flip the portfolio, the return on investment really depends on how fast the end buyer actually buys and for how much. On the other hand, if the investment strategy is to buy and hold the portfolio, the return on investment depends mostly on the rental markets and the tenants’ ability to pay on the properties or the clients’ ability to pay on the notes. To be fair, most players in this market do have sound exit strategies in place and do very well selling to their own network of buyers and clients.
However, the economy continues to weaken due to high employment and lack of available credit to stimulate the markets. If these trends continue, we can expect to see an already small pool of end buyers shrink even more. The less end buyers available to support either exit strategy, whether flipping or buying and holding will swing the risk reward factor more towards the risk and possibly decrease the return on investment.
Fortunately, there may be a solution to this pitfall. Why not invest in such a way to profit from multiple streams of income while acquiring bank portfolios at a much better discount? It is quite possible to accomplish this, while investing the same amount on capital. Think about it. Instead of spending $10M or more for the a REO package or note pool, why not buy the bank along with all of its’ assets. Doing so will:
· Recoup the initial investment from day one
· Acquire bank assets for much less buying just the REO or notes
· Give access to nine times more capital then using your own investment capital
· Takeover a massive profit center from the interest and fees the bank generates
· Instantly increase the value of the banking center after acquisition by a third or more
· Get the inside track to purchase more banks.
It may be interesting to know that over 120 banking institutions have failed this year so far and more failures are expected to come. Most banking centers would rather try to sell their financial institution rather than let it fail and have the F.D.I.C. take it over. That said there are plenty of opportunities out there. I knew of one bank that was for sale for $10M with over $100M in assets! Banking executives are buying selling on a daily basis. As a matter of fact, this is how a lot of the financial institutions used their TARP money if you ever wondered where some of that $700B went.
So how can an investor buy a banking center? Bank sales are usually not publicly listed mainly because banking executives do not want their investors to know that their investments are at risk. So you probably will not hear of any banks for sale through normal channels or even the media. These deals usually happen within the very closed circles but that does not mean that anyone can not pay this game too. The trick is getting in those circles. Once in those circles, an investor can gain access to many more inside deals that can reap huge returns are for the taking.
Kansieo.com
Jun
07