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Real Estate Investing – YEAH, rents came in!

I received Rent Check, Called up my Friends and told them to meet me at the local Pub!

Real Estate investing requires you to be a responsible person by understanding rental income. The value of positive cash flow and be responsible to where the rent money needs to be allocated.

I met a handy man a couple years ago who invested in foreclosures 2 years ago. He was selling one of his investment properties, just happened to be a 4 plex. I immediately asked him one simple question. Can you guess what question I asked?

Here it is, What is your monthly cash flow?

Now, the cash flow number can change depending upon how much money the investor put down on the property and interest rate or how the investor’s loan is structured. It’s critical to dig deep into the answer.

Remember, Cash if King!

He told me he pockets $1,100.00 and uses this money to pay his mortgage payment. Well immediately, I started to probe him for other questions. He never did answer my other questions but all he did was small talk or walk around my questions. I recently found out he lost all of his properties in January to foreclosure.

You ask WHY, I will tell you why.

He never repaired his properties to a living standard. The work was completed but done beyond satisfactory. The city was fining him for violations and he never did complete the work to the cities requirements.

2^nd reason, This particular investor took his rental income and went down to the local Pub. Folks if you don’t pay your creditors they will come after you for your assets. Even though real estate prices have dropped dramatically, real estate is still worth a better price than your old furniture or rusty old car.

This particular investor was uneducated in Cash Flow and the banks took back all of his real estate assets.

Property Management is a critical skill investors are not willing to learn and invest and time or money. This area alone will either make you a millionaire or make you poorer than you already were prior to real estate investing. Which one do you choose?

Invest in John Dessauer’s Property Management course to keep your monthly cash flow coming in month after month. Without it, the banks will be calling you

Cashflow Cindy

P.S. Do it Now

Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – Obama Making Home Affordable Turned Into Disaster

Critics of the Obama administration’s $75 billion program to protect homeowners from foreclosure increasingly argue that the program, Making Home Affordable, has raised false hopes among people who simply cannot afford their homes, and some economists and real estate experts now contend it has done more harm than good. They say many desperate homeowners have sent payments to banks in efforts to keep their homes, wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some experts argue the program has impeded economic recovery by delaying a wrenching yet cleansing process through which borrowers give up unaffordable homes and banks fully reckon with their disastrous bets on real estate, enabling money to flow more freely through the financial system. “The choice we appear to be making is trying to modify our way out of this, which has the effect of lengthening the crisis,” said Kevin Katari, managing member of Watershed Asset Management, a San Francisco-based hedge fund. “We have simply slowed the foreclosure pipeline, with people staying in houses they are ultimately not going to be able to afford anyway.” Mr. Katari contends that banks have been using temporary loan modifications under the Obama plan as justification to avoid an honest accounting of the mortgage losses still on their books. Only after banks are forced to acknowledge losses and the real estate market absorbs a now pent-up surge of foreclosed properties will housing prices drop to levels at which enough Americans can afford to buy, he argues.

Jobless claims down

The Labor Department says there were 432,000 initial jobless claims filed in the week ended Dec. 26, down 22,000 from the previous week’s revised 454,000, and the lowest since July 19, 2008, when there were 413,000 claims filed. A consensus estimate of economists surveyed by Briefing.com expected claims to jump to 460,000. Jobless claims have been trending downward since the end of March, when they peaked at 674,000, the highest figure since 1982. 4,981,000 people filed continuing claims in the week ended Dec. 19, the most recent data available. That’s 57,000 down from the preceding week’s revised 5,038,000 claims. The 4-week moving average for ongoing claims fell by 122,250 to 5,101,250 from the previous week’s revised 5,223,250. However, the fact that employers are running out of people to lay off isn’t necessarily a good thing. The slide may signal that more filers are dropping off those rolls into extended benefits. The employment picture will continue to improve as jobless claims continue to fall, but Tim Quinlan, economic analyst at Wells Fargo, said they will need to drop near 350,000 for positive job growth.

Not in 2010

Experts from a range of political leanings, speaking at American Economic Association’s annual gathering, were in agreement when it came to the chances for a robust and sustained expansion in 2010. It won’t happen. Many predicted U.S. gross domestic product would expand less than 2% per year over the next 10 years. That stands in sharp contrast to the immediate aftermath of other steep economic downturns, which have usually elicited a growth surge in their wake. Housing was at the heart of the nation’s worst recession since the 1930s, with median home values falling over 30% from their 2005 peaks, and even more sharply in heavily affected states like California and Nevada. The decline has sapped a principal source of wealth for U.S. consumers, whose spending is the key driver of the country’s growth pattern. The steep drop in home prices has also boosted their propensity to save. “It’s very hard to see what will replace it,” said Joseph Stiglitz, Nobel laureate and professor of economics at Columbia University. “It’s going to take a number of years.” One reason is that U.S. consumers remain heavily indebted. Another is that many of the country’s largest banks are still largely dependent on funding from the U.S. Federal Reserve and the implicit backing of the Treasury Department. He cited government programs giving large financial institutions access to zero-cost borrowing as artificially padding their bottom lines. “There’s something of an illusion of profitability,” he said.

Small business delinquencies rise again

Severe delinquencies by small and medium-sized U.S. businesses on the loans, leases and lines of credit to finance capital equipment rose again in November as lenders remained reluctant to extend fresh financing, PayNet Inc reported on Monday. Accounts behind 180 days or more, and unlikely ever to be paid, rose to 0.91% in November from 0.87% in October, according to PayNet, which provides risk-management tools to the commercial lending industry. It was the 22nd consecutive monthly increase in loans so far in arrears they ultimately may have to be written off by lenders. Accounts in moderate delinquency, or those behind by 30 days or more, rose in November to 4.33% from 4.19% in October, according to PayNet.

However accounts 90 days or more behind in payment, or in severe delinquency, improved modestly in November, slipping to 1.40% from 1.43% in October. It was the fourth consecutive improvement in the measurement. That was not the only glimmer of light in PayNet’s monthly report. The company’s Small Business Lending Index, which measures the overall volume of financing, fell just 11% year-over-year in November. While that indicates that lenders remain reluctant to extend credit to small and medium-sized businesses, it was the smallest decline in the index since the recession began. “We’re not out of this slump yet,” said Bill Phelan, president and founder of Skokie, Illinois-based PayNet. “But the year-over-year decline in the small-business lending index is smallest so far in this downturn and continues an encouraging trend line. From January through May, the index was falling 25 to 33%. And then from June to October, we saw moderating declines of 16 to 21%. So 11% is really another step in the right direction.”

Everyone on government payroll?

“Why don’t we just put everyone in the United States on the federal government payroll and call it a day?” asks Rep. Jerry Lewis, R-Calif. He’s talking about the latest “Jobs for Main Street Act” title that House Democrats put on their $174 billion package last month. Republicans are calling it “son of the stimulus,” the $787 billion economic recovery plan of nearly a year ago that they say was ineffective at producing jobs. Jobs from the House bill’s $75 billion in infrastructure and public sector spending include tens of thousands of new construction jobs, 5,500 more police officers, 25,000 additional AmeriCorps members, 250,000 summer jobs for disadvantaged youth, 14,000 part-time jobs for parks and forestry workers - basically all government jobs in one form or another. Absent from the House plan were President Barack Obama’s proposals to attack unemployment through tax credits for small businesses that create jobs and for homeowners who make their dwellings more energy efficient.

Even the investment in “shovel-ready” highway and bridge projects may not immediately translate into a reduction in the nation’s 10 percent unemployment rate. Republicans cited government figures showing that, as of Sept. 30, only 9 percent of $27.5 billion for highways in the first stimulus bill had been spent. The Congressional Budget Office estimates that of the $39 billion in the new House jobs bill directed to the departments of Transportation and Housing and Urban Development, only $1.7 billion will get spent before next October. A lot of the money “hasn’t even gotten out of Washington yet,” said Rep. Eric Cantor of Virginia, the House’s second-ranked Republican. “Why is it still here if it was designed to create jobs?”

Wall Street Journal scorches Obama

The Wall Street Journal released an editorial today that doesn’t have nice things to say about ” the Treasury’s Christmas Eve taxpayer massacre.” It’s referring to the lifting of the $400 billion cap on potential losses for Fannie Mae and Freddie Mac as well as the limits on what the failed companies can borrow. According to the editorial, “The loss cap is being lifted because the government has directed both companies to pursue money-losing strategies by modifying mortgages to prevent foreclosures. Most of their losses are still coming from subprime and Alt-A mortgage bets made during the boom, but Fannie reported last quarter that loan modifications resulted in $7.7 billion in losses, up from $2.2 billion the previous quarter.” And that’s not all the WSJ has to say, either. ” The government wants taxpayers to think that these are profit-seeking companies being nursed back to health, like AIG. But at least AIG is trying to make money. Fan and Fred are now designed to lose money, transferring wealth from renters and homeowners to overextended borrowers. Even better for the political class, much of this is being done off the government books. The White House budget office still doesn’t fully account for Fannie and Freddie’s spending as federal outlays, though Washington controls the companies. Nor does it include as part of the national debt the $5 trillion in mortgages—half the market—that the companies either own or guarantee.

The companies have become Washington’s ultimate off-balance-sheet vehicles, the political equivalent of Citigroup’s SIVs, that are being used to subsidize and nationalize mortgage finance. This subterfuge also explains the Christmas Eve timing. After December 31, Team Obama would have needed the consent of Congress to raise the taxpayer exposure beyond $400 billion. By law, negative net worth at the companies forces them into “receivership,” which means they have to be wound down. Unlimited bailouts will now allow the Treasury to keep them in conservatorship, which means they can help to conserve the Democratic majority in Congress by increasing their role in housing finance. With the Federal Reserve planning to step back as early as March from buying $1.25 trillion in mortgage-backed securities, Team Obama is counting on Fan and Fred to help reflate the housing bubble.” Surely “hope and change” didn’t mean the sort of slimy Chicago politics the WSJ claims the Obama administration is playing? The editorial ends with this scorcher: “In today’s Washington, we suppose, it only makes sense that the companies that did the most to cause the meltdown are being kept alive to lose even more money. The politicians have used the panic as an excuse to reform everything but themselves.”

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Biggest Buyers Market

When it comes to short sales, investors would do well to take a look at these major metropolitan areas presenting the largest peak-to-present value price drops. There are a variety of reasons each area has experienced larger than average price drops; from over building in Orlando to unemployment in Modesto, pressure on pricing has resulted in once in a lifetime bargains. Other areas such as Port St. Lucie or Lehigh Acres in Florida have been hit by a perfect storm of unemployment, over building and aggressive sub-prime lending practices combined with lax zoning standards to create a dramatic excess of inventory that could take years to absorb. Whatever the original reason, the result is clear…a big buyers market for those in the know.

Other hard hit cities throughout the nation include the following metro areas:

Merced California - With over 62% drop from highest price, the average cost of a home in Merced was $336, 750 in Q2 of 2006 compared to only $127,585 by Q3 of 2009.

Stockton/Modesto California - Both cities have lost roughly 54% of value since their former high in 2006. Today the average price is an affordable $168,000/$151,000.

Las Vegas Nevada - After a huge building boom during 2005 and 2006, Las Vegas residents are walking away from homes previously valued at over $300,000 which are now selling for just under $160,000.

Port St. Lucie Florida - After reaching a peak price of over $281,000 in 2006, prices in Port St. Lucie are lucky to bring in $151,000 as of Q3 of 2009. In fact, nearly all of Florida has been extremely hard hit due to a combination of high unemployment, sub-prime lending standards and an unprecedented building boom. Fort Myers, Cape Coral,

Naples, Marco Island, Bradenton, Sarasota and Venice are just a few of the other cities experiencing in excess of 40% or greater price decline.

Detroit - It should come as no surprise that Detroit and surrounding areas have been especially hard hit due to high unemployment despite the fact the building boom managed to miss much of Michigan. Affordable homes reached a high of $155,000 during 2005 but continued to plummet in price to the new low of just over $107,500 by the end of 2009.

Bottom Line - short sale investors looking for the best prices as compared to former high’s should concentrate their efforts on California, Nevada and Florida. Those searching for affordable housing alternatives may do well to examine Michigan and other areas of the mid-west that managed to escape much of the building boom from recent years. The greatest price stability is to be found in the New England states where prices remained relatively unchanged yet present some price reduction as compared to the past few years.

See you at the top!

Cashflow Cindy

Real Estate Investing – The 4 P’s To Success

There are 4P’s to success in foreclosures. Plan, Prepare, Purchase, and Profit. Each is very important and should not be skipped.

In the planning phase you will learn how to find or located motivated homeowners who have distressed properties and who are looking for a way out of their problem. This can one of the most challenging steps in the whole system. Your ultimate goal is to find the good properties with motivated sellers who want to sell their property to you. Most of the guru’s out there will agree that the hardest part in real estate is finding the perfect property. It is a numbers game! You don’t get rich writing one offer. You must do it over and over again. You need to prepare yourself mentally to become a foreclosure warrior who will consistently fight to find good properties. It is very competitive out there, especially in the field of real estate. You have got to become passionate about this business and never give up. You may look at several properties before you finally find the golden one. It will become easier and easier as you get good at it.

In the preparing phase you will learn how to research the property thoroughly and decide if it is good. This is a very important step because your decision on buying the property will be based on all the research you do during this step. Make sure you do not take any shortcuts and thoroughly inspect this property. The last thing you want to do is end with a property that takes money out of your bank account. This is also the phase in which you will learn creative financing techniques and what you should know before making an offer or bidding on a property at the auction. Some beginning investors have a hard time believing that you can actually purchase properties with poor credit, no money and without a job. This is the beautiful part about real estate, it can become so creative. So creative that you can make a profit on a property and never own the property whatsoever.

cashflow Cindy

P.S.   Are you interested in further developing your foreclosure knowledge? http://fb68a-4ul09×3z3pdbtl6mgpbz.hop.clickbank.net

http://youcanbuycashflowrealestate.com/wp-admin/post-new.php

Real Estate Investing is all about finding the deals either as foreclosures, FSBO, real estate agent, friend or families or word of mouth.   I find it best to market myself to the public.  Anybody I meet if they ask me what I do then I tell them that I am a professional real estate investor.

People call me on my phone and ask me all the time, “What do you do with the houses/properties?”

Because I read, attend seminars and am constantly learning new techniques.   My response is a variety of different techniques as rentals, flips, retail flips, rehab and assigning of contracts.   Since I have a huge buyers list its extremely simple for me to flip a deal.

If you are having issues flipping properties, it’s because you paid to much money for it.   A DEAL will sell immediately to another investor or homeowner.  The more knowledge you have the more deals you will do because your investing is more advanced giving you more exit strategies.

Exit strategy is want you always want to think about prior to buying or getting a property under contract.     

Below is a list of questions to ask your self prior to signing the contract:  If need be, write the answers down on a piece of paper.   If you don’t have two exit strategies then DON’T buy the property.

What is your exit strategy?

What are you going to do with this property?

Are you buying the property for cash flow?

Are you buying the property for long term wealth building?

Are you buying the property for residual income?

Remember, you need two exit strategies in place prior to purchasing a property.   Many investors have purchased foreclosure houses and rehabbed them.   Once they rehabbed them they expect to sell the house to a homeowner.   What happens if the house is still sitting on the market after 3-6 months?

Many investors get caught up in the trap where the house does not sell and are unable to rent it out because the rents are low and the house payment is high.    (don’t get caught in this trap)

A friend contacted me from New Mexico regarding their house.   They have a job offer in another state and looked into selling their house.  Through a couple of phone calls to real estate agents they found out the houses on the same street have been on the market for over one year.  Not a good time to sell especially in the high end market.

The house they live in is worth over $500,000 with a house payment of $2,500.00.   Now they looked into renting the house in their area.   Rents are only 1/3 the cost of her house payment.  This brings me to the example above when you buy a house as a foreclosed property.   You better have 2 exit strategies to protect your asset!

Did you know Millionaires have a library in their house? 

Cashflow Cindy

P.S.   Click Here! to purchase an excellent Foreclosure program. In my eyes, it FREE since   its a rediculous small cost of $37.00  (I paid over $30,000 to learn how to buy foreclosures and you can learn for only $37.00, do it now!)

Real Estate Investing – Section 8 Housing

Time and time again, I am asked, “How do I find a Section 8 Tenant?”

I found all of my Section 8 tenants buy simple putting up For Rent Signs and advertising on Craigslist Section 8 OK.

Once a Section 8 tenant receives a voucher from housing it is up to them to find a place that matches the criteria specified on their voucher.

http://www.foreclosureshortsales.com/clickbank/?hop=b07845%3C/a%3E

· Criteria:
How many bedrooms?
Rent Amount?

An example) The Section 8 tenant has a voucher for $625.00; 2 bedroom. Then Section 8 Housing will only pay up to $625.00; and the section 8 tenant must find a 2 bedroom. Section 8 housing will not pay for a 3 bedroom if their voucher is for a 2 bedroom!

Note of Caution: The Section 8 tenant is responsible for paying the security deposit. The last Section 8 tenant I put into my 3 bedroom single family house looked for a lower price single family house. You ask WHY; She had to come up with the security deposit.

Never, and I will repeat myself, Never, put a Section 8 tenant into one of your units without a security deposit. If you put a section 8 tenant into your unit and damages occur and you will have damages….who is paying for the damages? Section 8 Housing will not pay for damages.

The Section 8 tenant is low income and high probability they have no job. No job means no income. How will they pay for damages?

Cashflow Cindy

P.S. Buy foreclosures and put a Section 8 tenant into the units.   Learn to buy foreclosures for $37.00

http://www.foreclosureshortsales.com/clickbank/?hop=b07845

Real Estate Investing – Rental Assistance Programs

When you own rental units as single family houses, duplex, tri-plexes or any larger multi units you need to be aware of programs to assistance your tenants in paying rent and security deposits.

In the Fox Cities area we have a program called Levens. Levens assist tenants in either paying their rent or they will even help out with their security deposit.

I have a tenant who is moving into my lower duplex October 1, 2009. He contacted Levens to assist him with the security deposit since he is waiting for his security deposit returned from his current landlord. Levens contacted me yesterday and instructed me they will pay $300.00 toward his security deposit once my tenant pays the balance owed on the security deposit plus first months rent.

The tenant called me last night and we went over the rental amount due plus security deposit. Once the security deposit and first months rent is paid; then I will contact Levens and have them release the $300.00.

The Tenant already paid me $100.00 cash for security deposit. Levens is paying $300.00 so he owes a balance of $225.00. It’s important to tenant/landlord business relationship to communicate the numbers with each other so both sides underside. The tenant called me last night to verify the amount owed for security deposit and rent for October.

To be successful in real estate investing and owing single family houses, duplex, and multi-units; it is important to understand the programs available to assist your tenants on paying their rent and security deposits.

Cashflow Cindy

P.S.  I added this awesome foreclosure program to my library for a minimal cost of $37.00.  As always, its important to keep investing in yourself to be smarter than the 98% of the population.   Buying foreclosures is a process and the more educated you are the higher success rate you will have.

http://8c0a946wg26t3ydrl63o2bnp8m.hop.clickbank.net/?tid=BLOG

Real Estate Investing - 4 bedroom/ 1 1/2 bath, 2200 sq feet, Milwalkee, WI   $19,900

What a deal!  Unbelieveable, did you ever hear of buying a 4 bedroom 1 1/2 bath with over 2200 sq feet in Milwaulkee, WI?

This is a once in a lifetime opportunity to buy uncer $20,000.   These kinds of deals don’t happen in WI only in Detroit, MI or Indianapolis, IN or Kansas City.

Snap it up before it is gone.

cashflow Cindy
cindee@dishmail.net

Real Estate Investing – Multiple Steams Of Income

Have you heard the phrase ‘Multiple Streams Of Income’?  When I was employed, I would of turned my head to hear someone talk about Multiple Streams of Income.   However, in today’s economy and our future global economy, it’s important that everybody has multiple streams of income.

I explained this concept to my kids!  I don’t want them wondering where they are going to get their next dollar from to buy food for their families.

·         Rentals (single family homes/duplexes)

·         Flipping/Retail Flips

·         Wholesaling

·         Short Sales

·         Foreclosures

·         Assignment of Contracts

·         Residential Multi-Units

·         Commercial

Each of the above brings along its own set of challenges and rewards.   However, each is a separate stream of income.

I want to introduce to you a complete different stream of income besides real estate.   It is network marketing.  Many of you will probably stop reading now because you have a bad stigma against network marketing.   However, I am here to tell you; if you have the right product, right training and right circle of people to network with; you will be unstoppable.

You will earn a residual income to support you and your family for years to come.   Hard work is done upfront and then it’s passive.  You are correct; this is not a get rich quick scheme!  You do need to bring in 4 people within your lifetime in order to fill 3 business units.   That is correct, 4 people!

Do you know what residual income means?  It means FREEDOM, its means NO more stress!

Upon Joining:

Winner’s Circle – Group of like minded people to help you succeed in your business, as millionaires and billionaires have a network of people that helped them become successful.   Nobody succeeds as the loan ranger.  Winner’s Circle gives you access to our group forum, many free gifts by Robert Allen to give to your customers, support system, training and audio’s to download to listen to Robert Allen from past conference calls.    http://winnerscircletraining.com/index.php?

Mentor/Coach – Robert Allen is all of our mentors.   You listen to his call every Thursday night and ask him questions.   Tom Painter is also your mentor besides you whole network in the Winner’s Circle.

Consumable Product – As all millionaires mention; you need to sell a consumable product.  Once you find a customer they keep buying month after month after month.  Now you can concentrate on finding another lifelong customer or associate.

One on One Weekly Calls – Each week you pick who you would like speak with to design your weekly strategy.   This is the most important call; you talk directly with Aaron Allen (Robert Allen’s son) to put together a strategy plan.

Small Investment Fee – This is a business and all businesses incur startup cost.   You have different plans to choose from to pick your current strategy or situation.  The highest to get started is $1,400.00 (with tax)

Email Cindy today to get started cindee@dishmail.net   You don’t want to miss this awesome opportunity to join us at the Winner’s Circle.   Remember:  You are a Winner and your winner’s circle supports and guides you to your dreams goals and aspirations.

Cashflow Cindy

P.S.  email me at cindee@dishmail.net for your FREE copy of Multiple Streams of Income by Robert Allen