Caution: What you simply MUST do NOW to prepare for 2010
Imagine there has been a devastating hurricane or earthquake in your community. Pick your poison.
The local government has arranged for you to spend days or weeks camping out next to hundreds of other families on the sweaty floor of the high school gymnasium.
Needless to say, the locker room showers aren't a picnic. And speaking of picnics, the food is as bad as you can get.
Now, imagine there is a family or two in your neighborhood, perhaps the folks across the street, who you can't find. Where is the Rodriguez family?
It turns out, they are staying in a local hotel, or staying at their house which did NOT get damaged.
They have plenty of food, plenty of water, plenty of space. Sanitation. Even a nice shower now and then.
What makes the Rodriguez family different is that they realized what could happen, and they prepared in advance.
You too can prepare in advance for the coming economic meltdown that 2010 will bring. And I believe you and I can work together and make the problems I will outline into huge opportunities.
Over the last 18 months, the US government has effectively taken over the entire business of financing house purchases.
Fannie and Freddie are owned by the US government and our government just announced they would subsidize Fannie and Freddie to an unlimited extent.
Meanwhile, the FHA has become the "new" subprime lender. But something like 30% of its recent loans are delinquent and the FHA is out of money.
The net result is that lending standards are tighter than they were, and won't be looser any time soon.
Plus, the US government's bailouts and guarantees mean it has to borrow something like $5000 for every man, woman and child in the United States this year alone.
That kind of borrowing RAISES interest rates.
Interest rates going UP means that house prices will head DOWN. People can't afford higher mortgage payments and the payments are already rock bottom and will only go UP, hurting prices.
Finally, there is a vast amount of shadow inventory which is sitting on the market, weighing it down.
Shadow inventory is in the form of:
1. The bank refuses to foreclose even though a borrower is months and months behind.
or
2. The bank owns the property that it has previously foreclosed on. But it won't sell the property. It just holds onto it.
or
3. The homeowner is in a "trial period" for a loan mod. Under existing rules the loan mod is hopeless but the bank continues taking some income in from the homeowner and eventually the payments will stop and the homeowner who is under water will walk away.
There are so many millions of units of shadow inventory that these will weigh on the housing market and depress prices on a continual basis.
Even if the US government were to take over these 5 or 6 million houses, and rent them out, this would depress prices.
If the US government were to demolish these houses with the wrecking ball and bulldozers, that would also have a terrible effect as wealth is destroyed. But I wouldn't be surprised if something like this is tried, quite frankly.
Yes, these are freaky times. The US government has taken over the housing market and crowded out market forces completely. You simply must account for what the government is doing when you decide what YOU should be doing.
So that's what's happening to financing. It's all government now. And the government is strapped because it must raise ever more and more money from our friends in China and the Middle East.
These lenders are getting impatient. They don't want to keep lending the US government more money.
At some point, these lenders such as China and the Middle East will start plowing their money more and more into buying companies, mines, and commodities.
They will also buy houses and anything they can get. But the trouble at that point is that the US dollar will be plummeting, with high inflation causing prices at the supermarket and the gas station to be much worse than they are now.
So in the end, unless we Americans in the know take proper precautions, we will end up like everyone else.
These issues are so profound that they will cause the housing market to fall further in 2010.
We haven't seen the bottom yet. And the major "elephant in the room" is that people in the US can't afford the houses they already own, and jobs are becoming more and more scarce.
Yes, we've had a partial recovery but this is ONLY because of the government's "stimulus".
The "first time home buyer's credit" had an effect over the 2009 Summer but now people no longer care about it. Those who could buy have bought.
So what is the solution to all this? Here is my take on it.
1. It's best to reduce your debts. Slash credit card debt, put the money you are using to give to the banks into your own savings instead.
2. Save money in various ways so you start to build a surplus you can use when things get even tighter, or to take advantage of upcoming investment opportunities.
3. For goodness sakes, don't buy and hold onto real estate. Renting is great if you are the renter but not if you are the landlord.
4. Start focusing on making MONEY from today's upcoming further decline in real estate prices. You can do flipping, including virtual flipping without ever leaving your house. You can help people who own commercial property to get new money, refinance, or work out their problems. There are numerous opportunities to make CLAMS by helping make today's mess BETTER.
I will be introducing a new program that will help you achieve all of the above in 2010 and do so for an amazingly affordable price.
Remember, we do NOT want to end up camping out on that cold, hard smelly high school gym floor for weeks months or years. We want to be PREPARED and to be PROFITING from the grief we can see coming up clearly in 2010.
2010 can be our best year ever simply by realizing what is going on, and preparing to take advantage of it rather than just being a passive victim as this "hurricane" or "earthquake" predictably passes through our neighborhood.
warmly
P.S. Please leave a comment here about what you would like to see in the upcoming training. Thanks!
Copyright (c) 2009 Calworth Glenford LLC. All rights reserved. Duplication of this email without written permission is prohibited.
Dime on the Dollar(tm), Mortgage Relief Formula(tm) and the 9 Day House Sale are trademarks of Calworth Glenford LLC. Nothing here should be taken as legal or financial advice. See a professional who is familiar with your situation! We can't make claims that you will achieve any given level of earnings because most people don't achieve much in this regard and we can't tell who WILL and who WON'T work a program to the max!
42 Comments on Caution: What you simply MUST do NOW to prepare for 2010 »
Donell Adams @ 10:17 am:
Richard..How do you keep up with all of this information. It has been a challenge for me to keep up with all that you have to offer. However, I have listed as one of my goals for 2010 to reluctantly study and put into action suggestions from the material you present.
It really pays dividends to study. And keep it light and fun! Life is short and we should enjoy our studies. I love this stuff and thank you for reading.
warmly
–Richard
Mark @ 10:22 am:
All good and valid points on the economy and it's outlook. However, your take may be a bit extreme. I especially would like to know more facts and figures on showdow inventory. I believe this is a real threat but I can't support it with facts and figures. Mark
Thanks Mark.
The article cited above is optimistic because it says lenders are unlikely to dump houses onto the market and therefore depress prices. While I agree with this, as I pointed out in my commentary, this will prolong the housing crisis and make it worse because these units will be hanging over the marketplace one way or another. The best thing that could happen in my opinion would be to get rid of subsidies by the government and put these out on the market and deal with it immediately. But what is happening instead, is the government props up the lenders by buying bad mortgage paper, letting the lenders hang onto these houses as they slowly deteriorate, and this freezes things and makes sure they will last years longer than they otherwise would.
warmly
–Richard
Chris Ho @ 10:31 am:
Thank you for the info.
Ronda @ 10:37 am:
Doing my own personal loan mod. Very interesting that so many monthly expenses don't apply to DTI. This was great news for me. I have a 6.35% loan and I'm looking to get it reduced to at least 4%. Keep your fingers crossed! Thanks for the education!
Good luck with this! I'm really pleased you are working on this for yourself. Good going!
warmly
–Richard
G. @ 10:39 am:
All of this is confusing. If there are fewer buyers and there is tougher lending, WHO is buying? I don't understand how flipping of any type will work for *most* people. Obviously some folks who get into flipping will make good or great incomes, but won't *most* folks not make much? And I have read that often times, it takes months upon months for short sales, other RE deals and mods to realistically help the situation. And not many folks can afford to wait out those long time frames for transactions to compete.??? I'm not a negative Joe, I'm just someone trying to get a handle on this. Also, I would love to be prepared for what's ahead; so I will stay tuned… Thanks for all of your communications and efforts to inform and help us prosper!
You are thinking along the right lines.
Flipping is not easy, contrary to what some of the so-called gurus say. I have been doing it and it has a lot of frustration. On the other hand, my "partnering" program is working well, where I do all the work, put up the money, and split the profits 50/50. This way, flipping is pretty easy. And if you don't work with me, you can work with a local investor who will do what I do. Push for that 50/50 split and make sure you get paid out of settlement. Go for it if you think it will serve. And also check out opportunities in being a virtual financier and helping people in the commercial market recapitalize, get new loans, and modify existing ones. These are great opportunities that are easy compared to flipping (which I also love.)
warmly
–Richard
John Horn @ 10:45 am:
I really need my hand held for a deal or two.
Can you offer something that can take me from the beginning to the end, INCLUDING what to say to the person getting ready to lose their home OR the buyer.
Thanks Richard!!
John Horn
Stan @ 10:45 am:
For the last 40 years we have watched as people express their ideas about what is happening in the real estate and economic markets. People take actions on what they believe the future will bring. They buy or sell or freeze in place because of their decisions. How to make more accurate predictions and how to take the best available option…. that is the question.
With your ideas and predictions of the future economic course we will all travel we can, each of us individually, be better prepared to benefit by making great decisions and taking the best possible actions.
We, and our families, can all take advantage of what you offer.
Thank you. We should all appreciate your efforts.
John M. @ 10:48 am:
Hi Richard, Thank you for all that you do. It is refreshing to find someone who truly cares about his fellow citizens and develops ways to help people while helping ourselves. I am a student of your commercial funding course and I am gearing up to get out there and find those people that need the help.(From the research I've done in my area, it won't be difficult to find them). I also want to thank you for the 12 questions that you sent out recently- I think we are cut from the same cloth and are on the same philosophical page. Happy New Year- I look forward to making it a good one with your help!
Thank you SO MUCH John for the faith you have placed in me. That means a lot to me. I am so grateful to be able to do what I do in what is despite everything the best place on God's earth. Working with you is a privilege.
warmly
–Richard
Ranae Waschke @ 10:52 am:
Richard, I also have a hard time following all this material. I have been thinking about getting into some sort of real estate flipping/renting but wasn't sure about the markets stability. How much more do you think it will go down? How long before you think it might stabilize to be able to buy to rent?
In some markets it is possible already. They have declined so much and you can buy with very little down and eek out a bit of positive cash flow if you buy at the right price. That is the guide — if you buy with minimal down payment, and account for *all* costs including repairs and vacany factor, can you get at least a little positive cash flow? If you can, then go for it!
warmly
–Richard
Ted Gangluff @ 10:54 am:
Hi Richard, I have been reading your emails with great interest. I believe the same things are going to happen. With all that we have on our plates at the moment around the world, all we would need to happen to us to go into a full blown depression is for there to be a major terrorist attack or a big natural disaster. Either one of these items and the hinges would come off the wagon. I have been telling the people I work with in doing short sales that they had better be getting ready because something is coming and it's coming soon. Ted Gangluff
Ted, I think we are in a Depression right now. The Great Depression is viewed as a single awful long event but it really wasn't. There were a few really bad years, and some years things really improved a great deal. This is true today as well. I think we've had a decent rebound year and next year, 2010, will be another downleg. The reason I say that is that higher interest rates are baked into the cake. So are higher commodity prices meaning higher prices at the supermarket and the gas station.
The way to really get ahead is to have your own business, either part time or full time, and profit from the economic problems rather than be its victim.
warmly
–Richard
Chuck C @ 11:35 am:
You wrote, ". . . don't buy and hold onto real estate. Renting is great if you are the renter but not if you are the landlord." What about buying Class C multi-family rental property at a really good price? Do you think that would still be a bad move? That's my goal for 2010. I'm in Houston, TX where there is still job growth and where the recession did not hit as badly in other parts of the country. Of course, we did not enjoy the skyrocketing increase in housing values, either. Things stayed fairly stable here. Anyway, would like to know your thoughts about investing in multi-family properties in today's economy.
That could be a great idea. I am a big fan of buying multi unit buildings in places like Houston. And even single family houses can be profitable to buy and rent out in certain areas.
warmly
–Richard
Elizabeth @ 11:37 am:
I am glad that you are making these practical suggestions. Soon enough another currency will be issued when the banks have been consolidated enough. We will have fewer choices then. Now is a great time to become wealthy, preserve our wealth, learn to be more self-reliant, and be ready for anything. I am having to work hard at that myself, but I am thankful for people like you that are helping us to be more aware, Richard. I know it still could be far down the road, but learning these things now will give us a chance to enjoy life more, anyway, but to be more available to direct others.
Larry @ 12:21 pm:
Richard, Thanks for all of the information you've compiled and keep gathering. It can be overwhelming to absorb it all but I'm giving it a shot. I share your concern about our economy, government debt and creditors and the shadow inventory… that big mystery that may yet jump out and bite us. I'm about to be laid off and have started working with my bank about a loan mod. Thanks to all your info which I'm still digesting it appears to me my best opportunity will be to do a forensic audit and see what it uncovers. Given I'm about to have more free time I've been considering taking a Mortgage Broker course to prep for CA licensing. I'm curious what may be the best way to prepare myself for the coming opportunities. Going thru a bit of a mid-life, what am I doing with my life crisis. I've no desire to become a RE agent but am very interested in the related activities from being able to help others with the same problems I'm learning my way through and/or helping with the financing of those in a position to invest and profit from current conditions. What do you foresee as some of the high demand skills and certifications soon to be much sought after? Thanks again for all you do bringing all the different resources together. I love the 5 webinar sessions on Loan Mods, Forensics and Credit repair. We're pinching every penny but I think they will prove to be well worth the cost. I feel empowered knowing what the "other" side is thinking and what they may be able or unable to do and why! Keep up the good work and please offer your thoughts on how to best prepare and be positioned to be able to take advantage of these financial and real estate opportunities. Regards, Larry in LA
Hi Larry. I just spoke to a student who asked what his plan should be, and whether his buying and renting out is still a good idea. Seems everyone now is taking stock of what to do and where to move. As are you.
I would strongly suggest you check out commercial lending and commercial workout opportunities. You can make introductions without having to secure a license. The commercial world is where the residential was three years ago. You could do very well in it and there isn't the type of selling involved that there is in residential, nor is there the politics and regulatory issues.
Hi demand skills to me, will be commercial workouts, commercial mods, commercial refinancing. The handwriting is on the wall to the tune of about 2 trillion depending upon whom you talk to.
Also, the 9 Day House Sale continues to be a virtually unexplored opportunity. I think flipping will continue being good but require more skills and experience as it gets more sophisticated.
warmly
–Richard
Betty @ 12:44 pm:
Been trying to get a loan mod on my own, but all they ever tell me is we are working on it . Working with BofA. What do I do Next as I see no results. It has been months. Wish I could afford to buy some of these foreclosures,
BofA has been one of the biggest recipients of bailout monies, and is the worst to deal with on short sales and loan mods. What a travesty, what an injustice. Keep at it!
warmly
–Richard
Larry @ 12:52 pm:
Richard,
I already left a lengthy tome earlier but this came to mind just as I was about to turn off the computer and run out the door.
Two insightful reports I think your readers may find interesting:
Both are from 60 minutes and available on YouTube
(and no I don't work for them, I just believe in gaining/arming yourself with all the knowledge you can…actually looking for work :o)
one on Government Spending & it's total disregard for how it's going to pay for it all from of all places the Comptroller General of the United States ,our own GAO,
who proclaims that our current standard of living is unsustainable unless drastic action is taken. http://www.youtube.com/watch?v=OS2fI2p9iVs
The other is about the second R/E bubble - Scott Pelley reports on the mortgage crisis that's far from over, with a second wave of expected defaults on the way that could deepen the bottom of the U.S. recession. http://www.youtube.com/watch?v=iUuROWEMjm0
Knowledge + Action = Power.
I hope we can all find the strength, motivation and endurance to take Action in the new year!
All the best for all in 2010,
LA
Melissa @ 1:34 pm:
Hi Richard, I recently purchased your Commercial Funding program and am starting to 'dig in'. I am appreciative of all the time and care you put into spear-heading these money making programs. Talk about making lemonade from lemons…..am also looking forward to this new program you referenced. You just had to leave us with a clff-hanger, didn't you? Here's to a Most Prosperous 2010 everyone, Melissa
Thank you so much, Melissa, for your trust in me and I hope we make a ton of money together in 2010.
warmly
–Richard
Vernon Tryon @ 2:33 pm:
Hello Richard, I want to be like Mellisa and purchase the Commercial Funding Program I am a network marketer and small business professional who also works a day job. At the time I am working with Blaise C Dietz so I can get my first sale. And then purchase your program and then go full steam ahead. My issue is that I am on many social websites and need content about the product so that I can generate some leads for Commercial Funding. Vernon
Hi Vernon, good for you. You have a ton of initiative, obviously.
We send out content about loans that are being worked on and recapitalizations and mods at least once a week. These "funding bulletins" have great information in them for our students and can be used to build case studies. In addition, my team includes some heavy hitters such as a hedge fund and they come out with announcements that are extremely valuable for purposes of posting to social media sites.
warmly
–Richard
Admire Hasagie @ 3:44 pm:
Hi Richard, I enjoyed your knowledgable overview of the current and future economical situation. You said right on the beginning that you would like to work with me and here is an opportunity comming right back to you. As a matter of fact, I have a luxory villa on Beverly Hills (Los Angeles, CA) that I would like to short sell it to exclusively cash buyer and I am looking for an investor (OO or NO) that would be interested in the cash purchase only. Villa has been completely remodeled and updated with an additional investment of approximately 1mill. It is on the market at 65-70% of its current market value. I think this is the great opportunity for any finacially capable REI regardless whether they would hold and rent it till this particular market picks up (1-3yr) and double or more their initial investment or they just turn around, flip it and make quick profit. If properly advertised this property can easily exceed its current market value. So flip could bring in 600k (current market value) to a mill while sitting on it could result in 2-3mill in profits. Ball is in your corner. . . Sincerely, Admire Hasagie
Eeek! I wouldn't be one to buy this house. I am very afraid of high end houses right now, from a flipping standpoint. It doesn't work for what I do but I hope you get it sold quickly.
warmly
–Richard
Arthur @ 3:49 pm:
Hi Richard! The more I try and figure things out… the more I my head hurts.
I'm currently trying to get back moving forward. I was doing Real Estate "on the side" (a 3-plex rental) while working in my own business… which went under way back at the begining of this current economic mess. After a year and a half in crisis mode (no income!), my wife found a job, so we're back to being "stable". Sort of. Now that there is money coming in, I'm trying to get the banks to work with me so I can keep my home and the tri-plex. It's almost like they want me to fail. Asking for info you stated (in the video I saw prior to reading this article) they didn't want / need! I must be talking to the wrong people, because even the words "Loan Modification" do not seem to register with them. I guess I'll just have to keep at it and find a way through to someone who understands. Meanwhile… I really want (need?) to go full-time into Real Estate, especially since it appears that, after owning my own business for 17+ years, I have become "un-employable". 
What I should do in Real Estate, however, still seems to be a mystery. I agree with your assessment of where we're heading. I'd still like to think, however, that there is a way to help others while buying and renting or selling to others… and not lose money in the process. I guess I need to learn a new skill set. And with the potential in Commercial… I'd better start learning NOW! Hmmm… perhaps it is less of a mystery than I thought… 
This IS the year. OUR year! A Very Happy, Healthy and Prosperous New Year to All!
Thanks for your thoughts, Arthur.
Regarding your loan mod, what I discovered this year after assembling experts for my Loan Mod Breakthrough course, is that lenders DO want you to fail. They don't want to do loan mods. Only in select cases will they. But there is this political policy called "extend and pretend" which means the banks will give you "trial periods" and put the mess on hold while you struggle, but they won't definitively do what they need to do — knock down your principal balance. Why not?
Because the government is protecting the banks against principal writedowns. They are bailing out the banks. Fannie and Freddie buy the bad paper at 100 cents on the dollar, and the banks do not need to make the decisions that a true free market business would make.
I would suggest you get into one of two areas. Flipping houses, which is huge, or commercial funding. I am hoping my new "mystery" product that I will be launching will help you in many ways. Consider Commercial Funding Millions if you think it would serve you.
Thanks for the New Year's wishes and may I wish you the same? A happy and healthy one!
warmly
–Richard
A. Marie @ 5:35 pm:
Hello Richard, Boy, do I desperately need some GOOD NEWS in the midst of all this financial chaos that I am currently mired in, personally, along with many family and friends, and as an American citizen. After many years of doing pretty well, In 2009, I have been in the worst battle of my life … fighting for my home, my family, and my business. And until you and your programs came along, I thought I was surely losing the battle. I had already lost so much, and even went through a divorce 2 months ago due to all of the financial stress of it all. Although I am far from being out of the woods, you have given me HOPE to forge on and keep trying, and you are providing me with the valuable knowledge and a means to save myself and the rest of my family. Although it is too late for my marriage, I can see the light at the end of the tunnel, because you are showing me a way and pointing to a way out of this incredible mess in my life, and I truly appreciate your doing whatever you can to help us. I am a RE professional who has watched many of my fellow RE brokers leave the business entirely. Right now I am struggling to keep my head above water as I have watched deal after deal, client after client, even A+ credit clients get rejected for a mortgage by their own banks. It's incredible, and downright discouraging. And I have finally resolved myself to give up on wasting any more time trying to do traditional RE and instead find other more promising ways to make money in this housing market. I have purchased 2 of your programs so far. The 1st, Credit Card Relief Formula, and the 2nd was the Loan Mod Magic program, for which I am using, not only for myself, but for my small client base. Although so far I have not managed to get ANY of them modified and settled yet, after many months of struggling with the lenders, including my own home and office building, which are now in pre-foreclosure battles, I am not giving up. But the information you provided in your webinars through the Free and Clear Club has been incredibly valuable, and is helping me to fight them off for as long as I can, while I attempt to get a new business off the ground using one of your other ideas, the Commercial Mortgage Funding program, which I am trying to set up by myself because, quite frankly, as affordable as it is, I haven't been able to afford to buy that program yet, but I believe without any doubt that its going to work for me and my family. Although I am now in a purely survival mode, here at the end of the year I find myself disappointed and exhausted from fighting for so long, I keep forging forward. Even while I am trying to keep my head above water, fighting off utility shut-off threats and so on, I am STILL hopeful. I keep listening to all the webinars I can, I read all the emails you send, I study whatever I can get my hands on to learn all I can. And as always, I continue to pray a lot. Although it may be too late for my marriage, I still think my future will be better, because I have faith in the Creator's plan for me, and because I have faith that what you are telling us is really true. That within EVERY struggle and diversity there is always HOPE, and an opportunity for victory and great success in business. If only we DO NOT GIVE UP, and KEEP BELIEVING, KEEP TRYING, Keep working hard and smart at it, no matter what the naysayers say! Thank you Richard for all you have done to educate us, and for all you have yet to do in 2010. Although some may think you are a simply a businessman, I also believe that you are genuine in your desire to help others. After all, what better business is there than that? You have given me hope and been an inspiration to me without your ever knowing it. : ) A Happy, Propserous New Year to you and to everyone who is taking this journey to success along with you, A. Marie "carpe diem!"
Thank you so much, Ms. Marie. It is such an honor to have you here and I appreciate your putting your trust in me.
There is indeed always hope. I have emailed you privately. Thanks for the new year's wishes and may I wish you and your family the same?
warmly
–Richard
Michael Lee @ 6:41 pm:
I will investigate further, after I have read and absorbed the information that I have already purchased from you. I will comment then and let you know if it is worthwhile, or not. thank you.
Thank you Michael, and a happy and healthy New Year to you.
warmly
–Richard
Barbara @ 7:12 pm:
Richard, thanks for reminding me that I need to get started now on commercial property and prepare myself for what is ahead.
It is certainly one of the really good opportunities as I see it. There are always many opportunities but this one seems to be very strong as we are just at the beginning of a huge wave of commercial refis, workouts and defaults, and there is a simple way to hopefully profit from it and get in on the ground floor.
warmly
–Richard
tad @ 8:17 pm:
What to include in the upcoming training? Hard to say because I had come to some of the realization you indicated. I have no hope that we are going to get out of the current mess any time soon and agree it will definitely be worse than 90+% of most people's worst nightmare. I have gone back and forth between buying to hold or to flip because if I don't own a property outright it will probably be lost - renters won't have money to pay their rent or only a fraction of it. So to buy and hold it has to be a really discounted deal. Prices locally are stuck in fantasy land. I'm pushing commercial lending but slow go, so far. And now I'm in debt because of the programs on investing in RE Thank you for your help but can't specifically think of what should be included.
Thanks Tad. And I don't mean to suggest buying and holding is completely dead. It isn't. Depends where you are, and what you are doing, and more than anything else on whether you can get positive cash flow. There are fantastic purchase opportunities around the country and I know this because of the volume of outstanding deals coming in for commercial funding.
warmly
–Richard
Chad Gillam @ 8:21 pm:
Hey Richard, When is this new program you speak of going to be available and how many clams is it?
Am still finishing it up. It will be available for a low price, that much I know. And it will include a tremendous amount of community, help from other students and my team, all of us working together.
Sorry for being so mysterious
warmly
–Richard
Ramon @ 10:36 pm:
Great info as always Richard. I love the info you give. I want you to go more into how to deal with these sellers. I get discouraged when I go out to there home and they told me they wanted to and needed to sell on the phone. Then they want some rediculous high cash offer when you come to there home for a walk thru. It seems these homeowners are baiting and switching on investors right now. My question is how do you avoid wasting time for sure on homeowners who are not simply willing to take a small down payment and/or carry some financing?
I don't waste time this way because I first ask questions. My questions are designed to find out how motivated the seller is, and how pressed they are. If they are not extremely motivated and pressed to deal, I will not waste time. This is what all really successful "subject to" investors do. There are huge opportunities buying by taking over subject to existing financing, but motivation on the seller's part is first to know and how you avoid wasting time with all the homeowners who are not willing to deal.
warmly
–Richard
Thomas McKissick @ 2:17 am:
Richard Thank you for the information. I remain ready for your next new program. Currently I am involved in the CFM Program and am getting used to and enjoying marketing. I am targeting small local banks and bookkeepers and accountants. Lawyers are next. I am especially interested in the 50/50 split where I birddog and you do the paperwork. Looking forward to hearing from you. Thomas McKissick
I'm thrilled to be working with you, Thomas. I will do my best to continue to earn your trust. Thank you.
warmly
–Richard
Marie Thompson @ 10:08 am:
The Marie who wrote the comment above could have been me except for the divorce part but we have almost been to the divorce point too! I wonder how many marriages are being lost in this economic crisis? I am also in real estate and this has been an extremely tough year. We are teetering on the edge of trying to figure out whether to file bankruptcy or not. One of our credit cards is getting written off today after 7 months of no payments - it is almost $40,000. They have offerred a 70% reduction settlement which is great but they want it in 4 months. We are meantime on the second month of our 3 month trial modification plan for our home mortgage after almost a year trying to get a modification, I did not put three of the credit card payments in on the budget for the modification paperwork as I wasn't paying any of them at that time although I did put the one in I use for my real estate biz and I had read that if you can't pay your mortgage you should not be paying credit cards. So now I am not sleeping at all scared to death this will all blow up in my face as two of the credit cards are the same bank as mortgage holder.
Mostly though, I am scared to death that I will get through this trial loan mod and still be denied and lose our family's home of twelve years. We used to have credit scores in the low 800s before we had some major hardships last year then the real estate market went to heck on top of that.
courtney @ 10:54 am:
richard, very interesting commentary. i am just receiving your commercial loan funding millions course. i'm in the process of getting the business cards and implementing some marketing. i would just like more stories, support and information/tips that will help me market this service and make at a minimum $5k per month. thanks
Hi Courtney, great idea. We are now at least once per week sending out a detailed bulletin with deals pending and stories you can use, tips, information. So we are doing this and love the idea!
warmly
–Richard
SANDOR OCHOA @ 10:56 am:
Dear Richard, I have attended most of your Webinars and gotten your introductory CDs. I am a Real Estate and Mortgage Broker in Florida and I reside in Miami. I enjoy your forecasts and the comments been expressed here. I believe we all can benefit greatly from them. I recently ordered you Loan Modification program and I can't wait to get it, as I am very interested in helping people that are in such a need of it. God Bless you! Happy New Year!! Sándor
Thank you so much, Sandor, and God bless you and your family. Have a happy, healthy and prosperous new year.
warmly
–Richard
Deanne @ 11:03 am:
Thank you Richard for helping us to prepare for what is
likely to come given the statistics.
Ranae Waschke @ 11:05 am:
Richard. Thank you for your quick response to our questions. I know there are alot of people out there in the same situation. We would all love to be able to afford your mentoring classes but just can't afford it. Is there any way we can get together as support group for each other? This might help those of us that can't afford it right now to brain storm together. Thank you again, Ranae
Thank you! I think this new rollout will please you!
warmly
–Richard
Sunny @ 12:19 pm:
Richard, Great insight on 2010. Thoughts are right in line with actual reality.
Thank you Sunny!
warmly
–Richard
Cori G @ 12:39 pm:
Hi Richard, I am currently 2 weeks into your Commercial Funding program. I have sent emails to 18 Commercial Real Estate agents that I had dealings with in the past informing them of my new alliance with commercial funding. I have been negilgent to mention Blaize's name as I do not want them to hop over me, but I do include deals that have gone through for creditability. I have also gone to various sites looking for enterpuneers seeking finance. Being in the middle of two holidays is making it a bit difficult to connect with prospects but just the "act" is helping me polish up
Just listen to the SDIRA module…..Another jam -packed approach!! How long should I wait before I again contact my list? I don't want to look like I am jumping from one to the other and will have to come up with verbage to tie them together. So many great opporunties here. I am hoping I will be able to communicate the value that you and Blaize offer to my contacts. I want to get my web-sites up and running but would like to close one deal for the funding of it….. hopefully that will be soon! My your New Year be fun and profitable! Cori
I'm really excited for you, Cori. So much to look forward to. Happy New Year!
warmly
–Richard
Bill P @ 3:54 pm:
Richard, You inspire me with your knowledge and competence. I want to get your course(s) on flipping and commercial funding as soon as I can. I'm trying to get started flipping single family homes, but I feel wobbly on my own. Still working on my first deal. I'd like to make 2010 a very good year for a change. I look forward to working with you. Bill
Thank you, let's get you going on your first deal, Bill!
warmly
–Richard
Steve Pawera @ 1:44 am:
Right after reading Richard's blog entry, my next email was a market update from the CA Assoc of Realtors, where they desparately look for any good news they can share: Per the San Francisco Chronicle, "Consumers' confidence grows, survey shows". I don't mind being lied to by the trade association that is supposed to represent me. (Maybe it's their job?) But are there REALLY that many people out there who just don't get it? Lest any readers doubt Richard's wisdom, let me tell you straight up: things will get much worse before they get better. And Richard is the man with the plan.
Thank you, Steve. The Realtor boards really try to propagandize, as do the mainstream media. It's amazing what we are to believe. A "jobless recovery", printing almost two trillion is good for us, and much more. Like I said, amazing!
warmly
–Richard
Michigander @ 9:11 am:
My husband and I are in the dying automotive advertising industry. After absorbing multiple financial hits in the last three years our income is now 30% of what it was. In spite of everything, we continue holding on by squeezing every penny. It took more than a year but my husband and I were able to get a decent step loan mod on our own through WAMU/Chase. Two days later my husband was told he will have to take yet another pay cut. Now we are right back where we started and will loose our home. I have been out of work for 9 months with no jobs in sight. His company is trying to hang on but I'll be surprised if they make it through 2010. We will probably have to do a bankruptcy to eliminate medical bills and credit card debt. We are better off than many people and still have a 401-K and profit sharing through his company. We also have a mortgage on a cottage that we love but would require major renovations to live in full time. We will have to foreclose on it and would like to find someone - a surrogate, to purchase the property with our cash from our retirement funds, sell it back to us for a dollar and use the rest to make repairs to the building so we can have a roof over our heads. Most of our friends have done a bankruptcy by now and cannot accept our cash to make the purchase. We are in our late 50's and cannot afford the time to recover from a short sale or foreclosure on our house. We worked hard all our lives. The government will take a bite out of the retirement money before we can touch it IF we can even get our hands on it. But if we do, how could we find such a surrogate that we can trust to help us buy back our cottage? I know you are not an attorney but do you know if this is it illegal? Do you have "a kit" for our situation? Otherwise, we are looking at homelessness.
There are ways to tap retirement money for investment. Self directed retirement accounts are something I am studying and think they could be an answer for you.
And lots of people have gotten into very successful business ventures in their 50s and sixties. Don't believe the malarkey that it is too late. The aim is to work on something that does two things: takes advantage of a trend that is building and building, and being your own boss with very low risk, meaning a business that involves almost no cash and a lot of upside.
warmly
–Richard
Gena @ 2:53 pm:
I did a loan mod on my own in early 2008 due to a Mortgage broker putting us into a 11.99% loan with a 2 yr ARM. We were told that he would refi us in 2 months and when that time occured, he didn't do those loans any more!
In 2009 I tried doing another loan mod with WaMu. I made my payments in the trial basis as determined. During that time Chase bought out WaMu and decided that I needed to provide more info including paying a CPA $1,200 for financials in our businesses. I'm still paying the CPA off! I can't get anyone to return my calls and it is difficult to talk to anyone that knows anything. I was offered a repayment on 12/6/09 on my voice mail, denied due to no hardship on 12/11/09, and put back into active foreclosure on 12/28/09 with a sale date of 1/25/10. The banks are being very difficult to work with and now I'm going to lose my home. I went from owing $135,000 to $145,000. My home is probably worth $125,000 today. I never received a letter saying that I was denied either. The only letter I received was on 12/31/09 telling me that I was in foreclosure and my sale date.
What do I do now?
David Thillman @ 2:54 pm:
Great words of wisdom Richard. Thank you for all the great advice. I look forward to learning more and putting your advice to work. 2010 doesn’t look good on paper but I'm going to make it the year I become financially free. -Best regards, DT
Dorothy @ 2:46 am:
Hi Richard,
Thank you for the valuable information you shared with us.I'm impressed by your knowledge and expertise. I am looking forward to study what you offer and put it into action in 2010. would like to start flipping houses and/or commercial funding. Partnering with you would be my privilege. Do I need to have financing in place in order to partner with you?
Thank you,
Dorothy.
Salome @ 9:13 pm:
I do absolutely agree with your solutions. I am looking forward to your new program.
Thanks,
Salome
Kalyn @ 5:59 pm:
Hi Richard
Thanks for all the information. I have read all of your emails and watched all of your videos on You Tube. You are helping a lot of people with your knowledge. You have a way of making a bad situation ….debt settlement…loan modifications…seem not so awful…like it's just something that needs to be taken care of. And you are educating regular people on how to do this for themselves. It's impossible to find a lawyer to help with debt settlement (unless you want to file bankruptcy) .I think they must all be working for the creditors and lenders!
Two of my best friends have declared bankruptcy…but I've decided to get your course on credit card relief and debt settlement…and try to do my own credit card settlement instead of filing bankruptcy. Then I am going to get your loan modification course and try to work out a loan modification on my home loan…before my option ARM resets in Dec 2010. Thanks so much for offering thise courses.
I also want to learn more about your Commercial Funding course. It sounds fantastic! It sounds like a way to make great money during these hard times. However, I noticed the cost is presently $997.00 and going to increase to $1997.00. A bit expensive for someone who is having financial difficulties. I saw the three payment plan… but was wondering if you had ever considered offering a flex pay option…similar to HSN? One of the local real estate boards has offered flex pay on a class they are offering. If you could get the price down to 97.00 a month or so… many more people could afford to buy it. Just a thought…
Thanks again.
arthur @ 6:15 am:
hello richard geller I have a list of subscribers interested in real estate and its niches. I was wondering if there is an affiliate side to your program here. Where i could promote it to my list and you share a percentage of the sales. Let me know.
Sincerely,
Arthur