Real Estate Investing With Jeff Kaller

Looking for Good Markets to Flip Short Sales

Jeff Kaller (FreeShortSaleCourse.com) — Fri, 03 Sep 2010 21:04:55 -0700

Thanks to a media blitz and a variety of new regulations, many real estate investors actually believe that it is no longer an option for them to "flip" (or flop, as some investors refer to it) short sale properties. And it is true that in many cases if you opt to resell a short sale property immediately, you may be subject to more intense scrutiny than if you subject yourself to a self-imposed seasoning period that, to some lenders and government officials, indicates that you are not getting ready to make "too much money" on that short sale deal that you poured so much blood, sweat and tears into.

However, there are some markets in which flopping - even with the increased attention and transparency requirements - makes all sorts of sense. Buyers are lining up to buy short sale properties, and they are simply unable to conduct the negotiations on their own or navigate the still-complicated short sale system. Markets like this are ideal for short sale investors who want to move their properties quickly, and the volume of buyers - often international - who are interested in getting US properties at a serious discount is staggering.

One such market is Miami, Florida, where studies show myriad nationalities of buyers are snapping up luxury condos and homes not just for vacation, but as investments. While those in the States may be worrying that property ownership no longer has the long-term investment power that it once did, people overseas are jumping at the chance to own land in this country - and taking advantage of the relatively weak dollar to buy in volume.

If you are looking for this type of buyer, then you need to focus on "multicultural" markets. That is one reason that Miami appears to be so popular. Venezuelans, Israelis and many other nationalities feel comfortable in the rich, multi-faceted environment, and most agree that this area of the country, which was hit early and first when the housing market tanked, will also be a bellwether - much like areas of California - when the recovery begins.

Of course, you need to be very careful when you flip short sale properties. Work closely with an attorney to make sure that you are obeying every single letter of the law when you do your deals. It can make things tedious, but you will be able to enjoy cashing your checks quickly and with peace of mind!

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

Dealing with Changes in the Short Sale System

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 02 Sep 2010 15:21:15 -0700

When you hear about politicians making changes to the short sale process, even if they claim to be expediting it or making it better for your sellers or your buyers, you may want to throw your hands up in the air. After all, each time that they change something, you have to pull back, regroup and explain the process to everyone involved in it all over again. It can make things almost as time-consuming as short sales used to be in the "old days" in some cases.

Unfortunately, the government is not looking particularly likely to pull out of real estate investing regulation in the near future, and, like it or not, politicians are going to continue to try and "fix" the problem and ingratiate themselves to their constituents for as long as, well, for as long as there are still politicians. So instead of getting frustrated by something that you simply cannot change, incorporate the problem into your short sale system. Here are some things that you can do to quickly and effectively deal with potential changes to the short sale system each and every time you encounter them:

•1. Make a map
Not all changes impact all states. California has a number of regulations, for example, that Ohio does not. Keep a map handy or a list of the states with accompanying regulations that may be state-specific. This will help you determine if news on short sale changes has any bearing on deals that you are currently doing.

•2. Check on the "check-ups."
Fannie Mae and Freddie Mac used to require credit reports throughout the process of the short sale, including a report immediately before the closing of the home. This can hurt you if your buyers have done anything - including apply and successfully receive a department store credit card! - since they applied for the loan to buy the property in question. Now, however, there are additional disclosure processes designed to protect buyers, lenders and sellers without the massive number of credit checks. However, every lender is different and some may still require this type of financial check.

•3. Keep an eye on your junior liens
In some cases, during a short sale junior lien holders can receive some portion of the unpaid balance on the property in order to help them recoup a small portion of their losses. However, in other cases, paying off junior lien holders can tank your deal. Since lenders are constantly changing the rules on this, keep a running file on the status of major and minor lenders' regulations concerning these types of payoffs.

By being detail oriented, you can overcome the frustrations associated with the constantly changing short sale regulations and enjoy massive payoffs yourself in the process!

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com

Lender "Red Flags" for Fraud in Short Sale Investing

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 17 Aug 2010 13:20:03 -0700

According to a report recently released by Core Logic, lenders will take $310 million in unnecessary losses by the end of 2010 due to short sale fraud. Additionally, the report states that 1 in every 53 short sale transactions is fraudulent. This is disturbing in itself, but the way that the analytic firm came up with these numbers is even more disturbing. As a short sale investor, you need to know what lenders and analysts are viewing - and promoting - as red flags for fraud so that you can adjust your behavior and the structure of your deals accordingly.

1. Fast turnaround
Even though seasoning requirements in many areas have been lifted, lenders still see a fast flip as a sign that you mislead them about the value of a property. As a result, you must be very careful that your profit margins fall within an acceptable range - generally less than 20% better than what you gave the lender for the property - if you want to avoid sending up a red flag.

2. Vast profits
There is, unfortunately, no real way around this. If you make a big profit on the sale, then there is a chance that the lender will cry "foul." Consider trying to extend the time between the original short sale and the second sale, if possible, if you have an aggressive lender, and work with your attorney to protect yourself if you plan on making big money with your short sale.

3. Realtor involvement
Many lenders are blaming real estate agents along with investors for their losses. They believe that real estate agents are trying to get "double duty" out of properties by assisting with a short sale and then a flip. Make sure that your real estate agent, if you are working with one, has met all transparency requirements on a property so that the lender cannot argue that all offers were not presented.

This may make short sales sound like a perilous transaction for investors, but in reality more than 98% are still going off smoothly for everyone involved. In order to avoid being part of that target 2%, however, you must scrutinize your actions to be sure that you are not throwing up red flags to lenders that you do not mean to.

For More Great Short Sale Tips And Information Visit FreeShortSaleCourse.com

What the New FHA and Fannie Mae Re-Fi Options Mean for You

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 17 Aug 2010 12:26:18 -0700

What the New FHA and Fannie Mae Re-Fi Options Mean for You

As the housing market continues to hover somewhat unsteadily in a stabilization pattern, more and more federal programs are being introduced to try to keep underwater homeowners in their homes. Moral issues aside, lenders simply cannot afford the apathy, negativity and resentment that many homeowners feel at the prospect of owing more on a property than they can get for it on the open market. As a result, there are massive refinancing opportunities out there for people who will just agree to continue to pay the bills they signed up for when they bought their home.

At first, these refinancing programs may feel like a threat to short sale investors. After all, if a bank is willing to forgive debt in order to keep the borrowers from strategic default, then why would those borrowers sell? But in many cases, the same sentiments that are the driving force behind these new program - owner apathy and anger at a housing market turned sour - will lead homeowners to sell no matter what the lender is offering. As with many motivated sellers, homeowners are reaching a point where they just want out.

Of course, if you are working with a homeowner who is interested in selling, then you will need to evaluate the benefits of their participation in such programs carefully. In some cases, a bank may refuse to do a short sale if they have information on the borrower that indicates they do not really need to exit the house and are not actually in danger of a short sale. In other cases, however, particularly if you are a flexible investor who promotes properties in more than one arena, a restructured loan payment could help you market the property directly to investors and skip the lender all together.

As the array of programs and options for underwater homeowners becomes more and more varied, you, as a short sale expert, must be aware of all a homeowner's options. This will help you build credibility with homeowners and enable you to help them make the decision that is best for everyone involved when it comes to the financing, marketing and sale of their home.

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are
really missing out, go here: http://www.freeshortsalecourse.com/

Looking for “Love” in Short Sale Investing

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 04 Aug 2010 12:26:23 -0700

As a short sale investor, you probably know that finding buyers is as delicate a process in a lot of cases as finding sellers. Particularly in this market, while lots of people think that they want to purchase a home via short sale, they think this largely because of a media-created perception of what the transaction is, not what the process actually entails. As a result, many short sale buyers can be just as difficult as short sale sellers to work with.

One way to get around this problem when you are looking for short sale buyers is to be very clear up front with what type of short sale buyers you are looking for. This may be partially impacted by what type of short sale properties you deal with. For example, if you frequently end up with short sales on VA loans thanks to your particular client base, then you might want to target investors since these loans usually do not require a seasoning period of any kind and can be flipped immediately, should you choose to do so. On the other hand, if you work mainly with sellers who have loans with lenders who have requirements like a seasoning period, a guarantee that you will not net more than 20% profit on the transaction or whose regulations make it necessary for you to invest in properties that require some serious rehab (all viable ways that short sale investors are making the current short sale market work for them), then you may want to look for buyers whose needs more closely match your own.

Additionally, you might want to consider courting international buyers, should your market prove attractive to this segment of the buying population. For example, in many luxury markets international buyers are snapping up deals and paying all cash for them because their currency is currently strong against the dollar and the U.S. housing market is still considered a pretty solid investment - particularly at today's rock bottom prices. Furthermore, international buyers will not be impacted by the expiration of the tax credit or any rumors of further federal assistance forthcoming or not, since they will not qualify for it anyway.

Short sale investing is still going strong, and in some areas of the country, a quarter or more of all home sales are short sales. With this kind of volume and potential, you cannot afford to be left behind. Starting now, identify the target profiles of both your buyers and your sellers, then get those short sales moving.

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

Dealing with Real Estate Agents who are Short Sale “Specialists”

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 04 Aug 2010 12:25:27 -0700

As a short sale investor, you may find that there are times when you find a good short sale deal with the help of a real estate agent. Many times, the agent in question will bill him or herself as a "short sale specialist," which may be a title that helps attract listings and implies a familiarity with the short sale process. As short sales take over more and more of the market, increasing numbers of agents are labeling themselves in this way. But does this actually mean anything, and is the title worth the commission that the individual in question is going to charge someone - probably you?

In some cases, working with an agent who specializes in short sales can really smooth the way through a transaction. If the agent has connections with the lender who has the lien on the property or has already done a great deal of the legwork necessary to set up the property for a short sale, then their commission may be a small price to pay for the time, effort and money you will save getting the deal under way. In cases where the agent actually has standing relationships with lenders or has already set up the property to be short-sale ready, it will likely be worth it to work with them.

However, other "specialists" may have far more limited use. Some agents simply add this descriptor to their list of titles to indicate that they will work with short sales or know the basics about what one is. In this type of scenario, they may be little help and you may end up spending a lot of time explaining what you are doing or trying to work around them rather than being able to utilize them as part of your team. If the real estate agent in question cannot contribute to the process in a positive manner, then their specialization will probably not be something that makes them an attractive temporary member of your deal-making team.

Of course, if you find the property with the help of an agent who is a short sale specialist, then regardless of whether or not that billing is accurate, you will likely have to work with them. However, if you have a choice in the matter, look for agents who have the relationships and experience to actually back up their claims before you sign them on.

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

Spotting Short Sale Properties that Will Work for You

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 14 Jul 2010 16:31:37 -0700

Every short sale investor has a specialty – that particular type of deal that they do better than any other. In many cases, the success of a deal can hinge on how familiar you are with the type of negotiations that go along with it. If you are just getting started in the short sale business, you may want to focus on a type of property or transaction that is easy to find right now, in today’s market, in order to maximize your ability to find and do deals.

One way to maximize your opportunities is to familiarize yourself with the HAFA process. HAFA stands for Home Affordable Foreclosure Alternatives, and it is the federal program that the government has designed to help homeowners who cannot keep their homes avoid foreclosures. This program is mandatory in many cases – particularly if a home is owner-occupied – so being familiar with the process, which is still relatively new, can give you a huge advantage in the short sale process.

HAFA homes frequently come with a long list of requirements that may discourage other short sale negotiators. For example, before homeowners can qualify for HAFA, they have to attempt to qualify for HAMP (Home Affordable Modification Program), a federal program designed to modify mortgage terms to help homeowners remain in homes. Even if a homeowner just wants out of a home, if they want out through HAFA – and the incentives that come with this program – they have to try HAMP. Your ability to navigate the HAMP process can make you a more attractive candidate to ultimately perform their short sale.

Of course, you may want to steer clear of the complications of federal programs all together. In that case, you will want to look for homes and homeowners who simply cannot qualify for participation in HAMP and HAFA, since people who do qualify are often required to go through the entire process whether they want to or not. You might want to specialize in vacation homes, second homes, rental properties or other types of properties that can and are distressed in this economy, but are not owner-occupied.

No matter what area of specialty you choose, creating a short sale niche for yourself can be a great way to get moving in this business faster. Also remember that there are many short sale investors out there who are looking for their own specialty deals, so if you encounter a deal that does not work for you, you may still be able to monetize that lead if you know someone who is looking for that type of deal or property.

P.S. If you haven’t signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

Dealing with the Push for Deed-in-Lieu

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 30 Jun 2010 13:21:38 -0700

Recently, Bank of America sent out nearly 100,000 solicitations to distressed homeowners offering them a chance at a deed-in-lieu transaction. "Deed-in-lieu" refers to giving the deed to your home to a lender in order to circumvent the foreclosure process. You get to walk away from your home, and the lender declares the debt resolved because you returned the home, your collateral. Many lenders have announced that they will offer a variety of incentives for this type of transaction because it saves them a great deal of time and money in processing costs even though they may take a hit when they try to resell the home in today's market.

Some short sale investors are viewing this new trend with concern, particularly since some lenders have stated that they find deed-in-lieu transactions preferable to short sale transactions since they take so much less time. Additionally, homeowners who are going to lose their homes anyway may find this to be a more acceptable alternative since it is being portrayed as a route to 100% resolving the debt rather than worrying about being followed up with later for the remainder just when you have gotten back on your feet.

As a short sale investor, you should not be too worried about this, however. For starters, there are many, many, many homes that will still go through the short sale process, and not all circumstances are going to warrant or qualify for a deed-in-lieu transaction. Additionally, you can point out to homeowners who may be backing out of a short sale that unless the wording in their deed-in-lieu agreement specifies that the debt is considered entirely resolved by the return of the property, this may not be the case. Furthermore, while both deed-in-lieu and a short sale do go on your credit history and negatively impact your credit score, a deed-in-lieu remains on your history for a full 7 years, and you may have to request that it be removed. According to new legislation, short sales may be removed as soon as 3 years in some cases.

Certainly, some homeowners may opt for a deed-in-lieu transaction instead of a short sale transaction with you. However, the current deed-in-lieu "push" could actually be a positive, since it may put a dent in homes that lenders were unwilling to short sell anyway. Simply be prepared to answer questions about this type of transaction, then continue doing your short sales and helping people in trouble resolve their personal housing crises.

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

The Weekend in Review – June 25-27

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 29 Jun 2010 08:13:07 -0700

5 States Receive "Hardest Hit" Funds, 5 More Likely to Follow
The U.S. Treasury Department has approved 5 states' applications to aid homeowners with foreclosures in an attempt to stem the tide of foreclosures in Michigan, Arizona, Florida, California and Nevada. The funds will be used by the states' individual housing agencies to supplement principal reduction plans, help unemployed homeowners make mortgage payments and smooth the way for short sales, payoff of secondary liens and deed-in-lieu transactions. North Carolina, Ohio, Rhode Island, Oregon and South Carolina have submitted plans for similar programs and are expected to receive a total of about $600 million in aid.

· Short Sale Surge in Detroit
As lenders try to stem the onslaught of foreclosures in Michigan and across the Midwest, short sale transactions have tripled in Detroit. In the past year, the frequency of this type of transaction has risen 171% in some areas of the state. However, banks are still holding a large "shadow inventory" of REO properties, and this could slow the overall pace of the Midwest market back down when they are put up for sale.

· Experts Predict Deed-in-Lieu Will Surpass Short Sales in Popularity?
The Washington Post recently ran an opinion piece by a real estate market expert predicting that short sales could yield the stage to deeds-in-lieu in the coming months. Banks and lenders are not only gearing up campaigns to promote this transaction, which takes far less time than a short sale, and some are even offering cash incentives.

P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here:
http://www.freeshortsalecourse.com/

Short Sale Strategy: How to Use the News to Your Advantage

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 24 Jun 2010 13:08:50 -0700

As a short sale investor, you are probably simultaneously loving and hating the media right now. On one hand, more sellers are aware of and interested in doing short sales than ever before. They are certainly a more "accessible" subject than they have been in the past. On the other hand, more sellers are operating on heightened alert, fearful that any short sale investor that is not planning on personally moving into their home could be a con artist with a scam at heart that could get themselves and the seller into trouble simply by generating a profit. It is a tough position to be in, and it can be frustrating. After all, you know that you can help a lot of these people, but you have to spend so much of your time defending yourself against things that you would never do - like fraud.

Ultimately, the increased coverage is more positive than negative, and you can make your potential sellers - and buyers - see that with some careful, direct conversation. When you approach a person about short selling their home, make sure that they understand the entire process. Emphasize to them that you have a legal team or advisor that is making sure that everything you do is entirely legal and appropriate in their specific area of the country. After all, there are a lot of new rules governing transparency in short sales, and you do need to be certain that you are meeting all requirements. Explain how the entire process will work, including an application for a loan modification if necessary, and how their property impacts the process. For example, a second home does not qualify for HAMP, while a primary residence may come with mandatory HAMP participation depending on the lender in question.

Your transparency will not only protect you from overzealous, hyper-suspicious buyers who may be a bit too eager to call "fraud," but it will also reassure average, concerned, distressed sellers who simply want out of their home in a way that causes the least pain possible to their bank accounts and their credit. If sellers ask, draw direct comparisons between yourself and the "bad guys" in the news. For example, the real estate agents awaiting sentence in Connecticut on charges of fraud were deliberately misleading to both the sellers and the lenders. You are going to be completely transparent in accord with your legal obligations, and you have already showed the sellers that by describing the entire process. Once sellers can see that you are certainly in the real estate investing business to make money, but not at their expense, you will find that they will want to help you expedite the short sale in any way possible.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

The Weekend Review

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 21 Jun 2010 15:16:05 -0700

Short Sale Servicer Changes Name
The commercial and residential mortgage servicer "We Save Homes" is now operating under a new name: Servicers Direct. The company announced that it is "poised to experience significant growth in the specialist mortgage market," one of the main areas of which is short sale processing and negotiations.
Fannie Mae and Freddie Mac Mortgages Will Get Faster Short Sale Response Time
Starting on August 1, 2010, lenders on Fannie Mae and Freddie Mac mortgages must respond within 14 days to requests for short sale approval. It is hoped that the measure will help lenders and homeowners resolve their foreclosure issues more quickly - perhaps avoiding the problem all together. If the homeowner is applying for HAFA programs, the burden of proof of financial hardship is still on the buyer, however.
Short Sales Up About 50% Compared to this Time Last Year
Property groups in New York, where short sales are relatively rarer than in other parts of the country, are reporting that short sale transactions are up about 50% in the region over this time last year. In New York, lenders often expect the seller to come to closing with money to clear the remainder of the lien, an expectation that makes short sale transactions considerably more difficult since many sellers cannot afford to meet these closing terms.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Short Sale Leads in Surprising Places

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 17 Jun 2010 15:27:24 -0700

There is certainly no shortage of potential short sale transactions in the current housing market. In fact, according to some estimates, about 1 in every 4 homes for sale is up for short sale. That's 25% of the market! However, with the advent of government programs designed to help homeowners get short sales done in a smooth and efficient manner by working closely with their banks, the short sale process is, for many investors who relied on creativity to get their deals done and sold off to other buyers, becoming more complicated rather than less so.

Fortunately, not all properties are eligible for these programs, and these properties are far more likely to be distressed than your average primary residence. That's right; I'm talking about vacation homes. Around the country, second homes are hitting the market in record numbers. In Minnesota, "the Land of 10,000 Lakes," lakefront properties are succumbing to foreclosure in record numbers as owners struggle to negotiate short sales, while analysts predict a serious foreclosure run on Florida beachfront luxury properties as vacation-home owners in that area try to get out before the oil hits the coast or simply opt to walk away. Second homes are not eligible for federal assistance or short sale programs of any kind in nearly all cases, making them prime candidates for more traditional short sale negotiations. It's not that the lenders do not want to make a deal; it's simply that with the huge emphasis on HAMP and HAFA, most people are not aware that they have any other short sale options available.

As a short sale investor, you can help people whose finances and livelihoods are jeopardized by second homes that they can no longer afford and that they are unable to sell in a traditional fashion. These properties are a great source of leads for you for short sales, and often they sell at higher values because they may be considered "luxury properties." Make sure that you do not overlook this great potential source of deals when you are investigating short sale leads.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Weekend Review

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 07 Jun 2010 15:16:46 -0700

Saudi Arabia Allowing Foreign Property Ownership in the Country's First Freehold City
Saudi Arabia's first "freehold" city, called King Abdullah Economic City, will be the first geographic area in that country in which non-Saudi citizens can hold property. The country hopes that this move will help expand the Saudi real estate investing market and create a property explosion to accompany the population explosion that the country has experienced, Emaar Economic City's chief executive officer told NuWire Investor. French and US companies are already scheduled to inhabit space in the area, along with many other foreign investors.
Experts Fear that Fannie and Freddie's Exclusion from Financial Overhaul Could Swamp Taxpayers
The financial overhaul bill currently slogging its way through congress is designed to protect the "average citizen" from the trials and tribulations of Wall Street and other big investing companies. However, most financial experts agree that if Fannie and Freddie are left out of the bill, the massive debt accrued on the bad mortgages that the two are left holding could leave taxpayers "holding the bill" since banks, lenders and investors are unlikely to want to purchase these poor-risk investments.
Minnesota Reports Lake Home Foreclosure Trend
Lake homes in Minnesota, once prime real estate for which buyers might take out second mortgages on their own primary residences just to get a shot at making the down payment on one of these coveted vacation homes, now are plummeting in value and succumbing to foreclosure. The area's vacation residences have fallen nearly 40% in value, reports the Twin Cities Pioneer Press, and foreclosure rates are jumping by values like 650% in some areas. These homes may not qualify for many "rescue" programs either, since they are often not primary residences, but this does clear much of the red tape out of the way for owners who want to do a plain and simple short sale without having to go through loan modifications and the rest of the federally-mandated processes that are required on primary residences.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Making Sure Your Short Sales Pay Off: A Timely Key to Real Estate Investing Success

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 12 May 2010 16:09:15 -0700

There has been a lot of negative press about short sales and short sale investors lately. I'm not going to gloss over that fact or pretend it's not out there, because it is. There are a lot of people who are "hanging up" in this business long before it's over, and at a time when analysts and experts around the country are declaring that short sales could literally save lenders, homeowners and the entire housing market from a second serious downslide. So now I'm going to do something a little unusual, but I think you'll get my point in the end. I'm going to brag a little:

In my decades as a short sale investor, I have invested over 100,000 dollars in my own education. And let me tell you, now is when it is paying off. Training and knowledge are the keys to real estate investing success, and that is never more true than when the market is shifting - which, by the way, is also the best time to be involved in real estate. Fortunes are made when the rules are changing.

Anyway, the point of bragging about my investment in my education and my years of successful real estate investing is to demonstrate the value of investing in yourself. In times like these when you may be wondering how to proceed, an education and an investment in educators who will help you not only learn the business, but also bend with the business when it shifts and changes. My history in short sales lets me see not just the lousy, lousy hype that is going on right now, but also the many, many, many opportunities that are presented not just by the current situation, but also by the myriad ways it could unfold in the future. I can see that there are a lot of great opportunities in short sale investing whether things change or stay the same, and I'm spending my time doing deals, right now, and learning everything that I can about the state of the market today.

But Jeff, you may be thinking, I just started thinking about doing short sales. I need decades of experience and training now, not decades into the future. Well, that is certainly a reasonable concern, but there is a great way to get all the payoff that you would get if you invested years of your life into this business, but get it now. The answer is simple: find a mentor; find a trainer; find a partner; find a role model. Now is probably the best time to start training in real estate and short sales because now, more than ever, you need a navigator to help you in these complicated but potential-packed times.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Short Sale Disclosures: Critically Important Tools for Protection

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 12 May 2010 13:19:53 -0700

Short sales are going to be critical to the recovery of the housing market. With so many homes in foreclosure, banks and homeowners alike are relying on the short sale process to prevent the foreclosure tide from swamping the market and the lenders themselves. However, as short sales are increasingly regulated and the target of more and more media focus, it becomes increasingly important for short sale negotiators - especially if they are real estate investors rather than the next homeowner - to apply stringent rules for full disclosure to their short sale transactions.

Probably the most straightforward way to handle this disclosure is to include the fact that you are doing a short sale in the contract that deals with the transaction. Do not leave anything to chance. Note that you are doing a short sale, how the lenders will be satisfied and make sure that the contract itself allows for the resale of the property, should you elect to do so. You will be on firmer ground if you decide to "flip" the short sale if both the lender and the seller are aware that you may opt to do this.

In addition, many investors and real estate agents are recommending that you stay in touch with all lenders, even if they are the holders of secondary or tertiary loans and are less likely to get any direct satisfaction from a short sale. Making sure that the negotiation meets everyone's needs or at least addresses their stake in the property can help prevent lenders from coming after homeowners later for the payoff of the remainder of the investment.

If you are listing the property in MLS, you may also opt to disclose the fact that the property is a short sale - or that the owner, lender or both or amenable to a short sale - in the listing. Not only will this attract more attention for your listing since short sales are generally perceived - and rightly so - to be a good way to purchase a property at a discount, but it will also further cover your disclosure bases and make sure that there is no question in anyone's mind that the transaction that you are negotiating is a short sale.

Ultimately, you can create a great deal of wealth, resolve serious financial crises for people in need, and help stem the tide of foreclosures in the country by being an effective short sale negotiator. However, you must be very careful to "dot your I's and cross your T's" when you are doing a short sale. Make sure that every aspect of your behavior and your negotiations are beyond reproach to establish the best short sale transactions you possible can and bring satisfaction to every party in the transaction, including yourself.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Banks are Facing a Serious Dent in Earnings: Good News for You

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 22 Mar 2010 10:42:48 -0700

Thanks to the federal government's good intentions, short sale experts everywhere could find their negotiations going a bit more smoothly in the next couple months. At the very least, you should be able to get someone to answer the phone.

Thanks to programs like HAMP (Home Affordable Modification Program) and HAFA (Home Affordable Foreclosure Alternative), banks are about to be compelled to "eat" a great deal of their outstanding debts. Under these programs - which are presently designed to run indefinitely, even though they are functioning at a huge loss and, according to most experts, are simply stalling the inevitable, banks may be compelled to offer homeowners who cannot or do not meet loan modification requirements a short sale option - and forgive much of the outstanding debt based on government-determined criteria that is arguably idealistic and naïve at best.

Why is this good news for private investors? All of a sudden, you represent a far superior short sale option to lenders than you probably did in the past. After all, when you negotiate a short sale, that is exactly what happens: you and the lender negotiate to establish a price that both of you can live with. If the negotiations fail, the lender keeps the property and you leave. Under these new federal programs, however, there are no negotiations. If homeowners meet certain criteria - or, more like it, fail to meet them - then the lender must offer a short sale. Period. And the federal program - not the lender - will determine if the terms of this sale are acceptable. As you can probably imagine, if the lender and the federal government cannot reach an agreement, then there is no walking away. The lender will simply end up on the bottom of that argument and end up having to deal with the terms and conditions determined to be acceptable by the program in question.

Suddenly real estate investors aren't looking so bad to lenders who are facing, according to most experts, several more years of foreclosures before the market evens out. So although many people are starting to think about getting out of the short sale market to avoid "competing" with the government, federal involvement cannot help but make you look more appealing to lenders everywhere. So if you have been thinking about moving on out of short sales, think again. New federal rules could have banks jumping to answer your calls.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

3 Fast and Easy Ways to Locate Short Sale Properties

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 18 Mar 2010 14:32:43 -0700

With all the media coverage right now about how you can step outside your door, toss a rock and hit 3 homes in preforeclosure, I have noticed that many people – including some of my clients – are eager to “skip over” lead generation lectures to get straight to “the meat” of the short sale transaction: the profits.

However, just because there are a lot of deals out there does not mean that they are all good, nor does it mean that it will just be as simple as walking up and knocking on the door – although sometimes, it is. Having a variety of sources for good deals – and even having those sources “vet” those deals for you – is a great way to save yourself time and always have new deals on the table when your time and resources permit you to initiate a new negotiation on a new transaction.

Many times real estate investors who are new to short sales think that they have to do all of this on their own. After all, if someone else has the information, won’t they just do the short sales themselves? In reality, however, you can often get free or nearly-free leads on short sales from highly qualified sources just be establishing a few new relationships. Here are 3 fast and easy ways to locate short sale properties:

Work with the “We Buy Homes” guy
You don’t necessarily have to work with the guy behind this specific set of billboards, but remember, behind every bandit sign and billboard with a “we buy ugly houses” or “we buy houses for cash” slogan is an investor with a source of leads – and it’s likely that he or she cannot use all of them, or may have different requirements than you. Find someone compatible and offer to pay them a fee for each transaction that you complete successfully.

Ask your local mortgage broker for referrals
When people try to modify their existing mortgages or to refinance their homes and are turned down, this often indicates a downward slope for the homeowner. You, the short sale expert, can help them escape their mortgage – and you do not have to be the one to break the bad news to them that they have no hope for refinancing because the mortgage broker will already have handled that for you.

Work with local realtors
Real estate agents will be happy to direct you to potential short sales if you let them market the property once it is under your ownership. Real estate agents make great partners because they are frequently quite good at spotting viable short sale opportunities and they also often have contacts within lending organizations.

No matter what part of short sales excites you the most, having a good source of leads is critical to your ability to do these transactions effectively. So get out there and network to create multiple streams of leads for your new stream of income!

P.S. If you haven’t signed up for my Free Short Sale Course yet, then youare really missing out, go here:

http://www.freeshortsalecourse.com/

HAFA to “Streamline” the Short Sale Process – Until 2012, That Is

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 16 Mar 2010 14:25:31 -0700

While in general, when the government starts regulating real estate it tends to indicate coming trouble for real estate investors (just think "seasoning" and experience a cold chill), in the case of the federal government's Home Affordable Foreclosure Alternatives (HAFA) the jury is still out. The regulations are designed to streamline short sale rules and provide incentives and encouragement for borrowers and lenders to work together, hopefully making the entire process less tedious for the homeowners and, theoretically, for the third parties like investors as well.

At first, it sounds pretty good. The seller has access to a preapproved list of short sale terms from the lender before they ever put the house on the market. This is great for the seller because they know what they are working with and do not necessarily need someone to hold their hand to get the thing done, right? Maybe. Let's remember that these preapproved terms have not been negotiated by a third party (like an investor); they have been agreed upon between seller and lender, both of whom have a vested interest in keeping that sale amount high. After all the lender wants to recoup as much of the loss as possible, and the seller wants as little remaining debt as possible - especially since a number of lenders have started going after sellers who thought their short sale had put them in the clear. But for now, let's continue to focus on how HAFA works rather than how real estate investors may feel about it.

In reality, HAFA may not actually speed things up all that much. In order to qualify for the program, the seller must first enter the Home Affordable Modification Program (HAMP) and attempt to modify their existing loan. HUD says that over 100 servicers are currently signed up to participate in HAMP, but as most investors are aware, most loan modifications are basically just lead-gen for a short sale that add 6 to 12 months to the process. In addition, a lot of motivated sellers are not going to make it through the HAMP part of HAFA anyway, because if they miss a payment during the qualification period - and remember, they're already in trouble - or if they do not qualify for the loan mod, then they are out of luck with HAFA.

Basically, HAFA is probably a pretty well-intentioned piece of legislation. However, it does not appear that it will really impact the short sale market all that significantly in its present form, and it definitely is going to leave a lot of people out since the property has to be a principle residence, the mortgage has to be owned by Fannie or Freddie, the borrower has to be delinquent, but then cannot miss payments, and the housing payment must be more than 31 percent of gross household income. With all these stipulations in place, it appears that while HAFA may make the process more accessible in homeowners' eyes - and that's a good thing - it may not have a truly dramatic impact on the short sale aspect of today's housing market.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Short Sale Tax “Fix” Could Create a New Financial Crisis

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 16 Mar 2010 14:22:23 -0700

Real estate investors looking to help homeowners shed their debts - and their homes - via short sale should beware California's "tax fix" for upside down property owners who sell their homes via the now-classic method of working with the bank to get the loan forgiven for less than is owed, given that the seller is no longer the owner of the house.

As tax season looms, homeowners who did the right - but painful - thing and worked out an agreement with their banks or lenders to forgive a portion of the debt via short sale are finding that their financial crisis resolution may have created a tax debt for tens of thousands of dollars. How? Because the governor of California vetoed a bill containing protective legislation that would prevent that forgiven debt from being considered taxable income.

Turns out, the real issue with the legislation has nothing to do with short sales. Instead, Governor Schwarzenegger vetoed the bill because it contains penalties for filing unfounded tax refund claims, but those penalties are restricted to high-income filers. Basically, the bill contains language that says unless you make a lot of money, you can make unfounded tax refund claims. Earn too much and mess up your return, though, and you are on the hook with the IRS. Governor Schwarzenegger doesn't think it's fair and refuses to sign this type of legislation.

However, political leanings aside, this gridlock between the governor and the legislature is really hurting homeowners who did short sale transactions in 2009 and it could continue in this state until the governor and the legislature manage to "duke it out." The governor refuses to sign tax bills with the problematic income tax refund language, and the legislature refuses to send a bill without it. The stalemate really does start to look a little suspect when you note that then-President George W. Bush signed nearly identical legislation in 2005 that simply stated that unfounded tax refund claims could be punished, regardless of your income. It looks like the legislature just doesn't want to lose the taxable income on the short sales from a skeptic's point of view.

But ultimately, how you feel about the legislation in question is not the point. The taxable income of hundreds of thousands of dollars in forgiven debt is the issue at hand for short sale negotiators and real estate investors. Short sale transactions can enable you to purchase a home for pennies on the dollar in many cases, but at least in California, someone is going to have to pay the piper even if the lender forgives the debt. So if you are involved in short sales, check the tax ramifications for both you and your buyer before you sign on the line. You do not want to create a new crisis instead of solve one.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here:
http://www.freeshortsalecourse.com/

Do Homeowners Still Owe Money After a Foreclosure?

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 08 Apr 2008 11:11:12 -0700

Do the homeowners still owe the bank money after a real estate foreclosure? That is up to the bank. When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full so the title is clear for you to close.

However, the homeowners may still owe the difference between the mortgage balance and the discounted amount. This is called a "deficiency judgment." If granted by the court, this judgment will affect the homeowners and their credit report just as any other judgment.

You can ask the bank to accept "payment in full without pursuit of any deficiency judgment." But the bank does not have to grant your request. Most of the time the banks will not pursue the deficiency judgment, they will just 1099 the homeowner. You need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a "1099."

Since the homeowners have been under such financial duress they probably haven't made much income, a 1099 may not adversely affect them. The homeowners can contact a local tax advisor for more details. Make sure you provide information to the homeowners (Preferably in form of disclosures for you or your company) but do not give any legal or tax advice.

What is a 1099?

1099 forms are used for a number of reasons, though, typically, they are given to independent contractors--also known as "freelancers"--as a record of the income they received from a particular business. So in essences the 1099 are reported as income you received from the bank. You must explain this to your homeowners when discussing a short sale and advise them to speak with an accountant as to how a 1099 will affect them.

Typically, the homeowners are showing no income or have had limited income for quite some time because of the financial hardship they are facing. If this is the case, a 1099 will not affect them.

When we explain the results of the foreclosure sale and the 1099 to the homeowners, they never seem to care. They just want us to stop the foreclosure.

Deficiency judgment

Deficiency judgment is a judgment against a borrower in favor of the lender in an amount equal to the difference between the funds received from a court sale or short sale of a property and the balance remaining on a mortgage or other loan. The bank can seek a deficiency judgment for the shortage on the actual amount received versus the amount that was due.

Likewise, the same judgment can be sought when the property sells at the courthouse for less than what is owed or after the REO department sells the property for less than the full amount.

If the bank does pursue a deficiency judgment, the homeowners may have to file bankruptcy at a later date to remove the judgment. Another option is to short sale the judgment amount at a later date.

It's important for you to know that the lender cannot pursue a deficiency judgment and issue a 1099. They can only do one or the other, not both. If the deficiency is waived as a condition to the short sale, the homeowners will receive a 1099.

If the judgment is not waived, we leave the decision up to the homeowners as to whether to pursue the short sale or not.

It is important to remember as stated earlier, if there is no equity and the property goes to the sheriff's sale, and the bank receives less than what was owed, the bank can still pursue the judgment or issue the 1099.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Common Mistake: Not Getting the Deeds

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 27 Feb 2008 11:25:05 -0800

You've probably figured out at this point that you can make a lot of money in a relatively short amount of time by adding short sales to your real estate investing arsenal, and if you haven't started testing the waters already, you're probably raring to go at this point. But remember, any time you can make easy money, it's probably also true that you can easily lose it! Now, you're not a person who likes to lose money, and neither am I, and it's extremely simple to avoid the downside of easy money in this case by remembering one final common short sale mistake: not getting control of the deed.

I've talked a lot about the mindset that a distressed homeowner is probably experiencing at the time of a short sale: distress! And what do high levels of tension and anxiety cause many people to do? Change their minds! You are about to invest a pretty significant chunk of time and effort into a deal that is worth every second and drop of sweat - remember, we put about $28,000 in our pockets in just over a week not too long ago - but you want to be assured that your investment is going to pay off. And if you don't have control of that deed, your homeowner can freak at any time and take it back. They're looking for an out at this point, and if someone else comes along with what sounds like a better deal - not all investors are scrupulous, and some will lie to get their hands on a good deal - they may back out of the negotiations or even replace you with someone else!

Once you've decided to undertake negotiations for a short sale with a lender, the first thing you need to do is get that property under a contract that puts you in control of the deed to the land. Most lenders won't want to waste their time with you if you can't vouch for the security of the negotiations anyway, so it will make your case that much stronger if you can say you are either the owner of the deed or at the very least representing the buyer.

This is one example of how important your relationship with the homeowner is, because many will balk - at least initially - at this vital step. Show them why it's important, and explain the entire process in detail - maybe even show them the checklists that we discussed in the last article so that they can see it's all part of a plan to get them out of debt. And before you agree to let them keep the deed without a contract, imagine how you'll feel when $10,000, $20,000 or even $30,000 walks out the door and into some other investor's portfolio because you didn't protect yourself. So cover your bases - and your assets! - before you invest your valuable time and money in any endeavor.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

The Secret to Success in Any Area That Real Estate Investors Cannot Afford to Neglect

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 21 Feb 2008 08:40:34 -0800

You probably have - or used to have - a co-worker like Jonathan. He's not really that remarkable. Maybe he spent a couple of years in college, maybe he dropped out before he finished. He's average looking, kind of quiet and doesn't really stand out in a crowd. In fact, you're fairly certain that you're much more knowledgeable than him about your mutual interests and business, and yet, the other day, you and he were talking about your common interests in real estate investing, and it turns out that he's been involved in it for 6 months and has done as much as you did in the past year!

So what gives? Maybe he's an investing whiz, but maybe, he's just doing something you're not. And that something may very well have to do with the way he's thinking about himself, his investments, and his future. It's possible that your outlook on yourself may be holding you back, so consider implementing these positive thinking strategies in all areas of your life - especially your investing portfolio - and get ready to take off!

1. Positive Thinking Is Contagious. If you're positive about your abilities, other people will be too. And the more faith you have in yourself, the more you'll be inspired to fulfill your obligations and take your business and your life to the next level. And as your outlook improves, so will the mindsets of the people around you - so you'll all be supporting each other in individual and group growth!

2. Always use positive words in your inner dialogue. If you constantly reaffirm to yourself that you Will succeed, you're less likely to succumb to feelings of inadequacy that can lead to giving up and letting things slide.

3. Visualize several successive successful outcomes. If your goal is to make a million dollars, that's great. And you need to visualize that outcome With It's Implications constantly.

Not only will this motivate you and maintain your faith, but it will prevent you from stalling upon the attainment of your goal. What will you do with that million? Will that be enough for you to do it once? Don't just think about how to spend it, but imagine how you'll make a (surprise, surprise) POSITIVE impact on your life and the lives of your loved ones with future goals.
The simplest positive steps can drastically alter your life upon implementation. So take control of the things closest to you - your mind and your heart - in order to seize the success you deserve.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

OFTEN IMITATED — NEVER DUPLICATED

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 24 Jan 2008 10:06:11 -0800

Dear Student
I've had the privilege to teach short sales to over 20,000 people in the last 8 years. During that time I personally managed to purchase more than 350 houses from people facing foreclosure. And our team continues to do so every day. This real life momentum has spawned thousands of successful students, and dozens of new short sale experts, who now teach the business while running their own powerful house buying businesses. I'm darn proud of this legacy.

The techniques and strategies you'll find embedded in our seminars and information products on this site were at one time proprietary to only my staff and a few key students. Over the years, we've created and innovated these techniques ourselves. When I first started teaching, no one ever knew what the heck a short sale was. Through our now much expanded network, and open sharing in countless hours of private one on one group masterminds, even visiting large bank mitigation centers across the country, we believe we have assembled the most accurate and practical short sale information available.

Our personal deals and my short sale advisory board, including our on-staff loss mitigators continue to innovate and refine these strategies everyday. And it's my goal to make YOU an expert in this field. Once you take this opportunity and run with it I'll take you places you've never even dreamed of.

STARTLING GOOD NEWS REVEALED!

Amidst today's subprime and prime lender mortgage meltdown, short sales have hit the mainstream. Everybody now knows that short sales are the ONLY way to go in today's market. Interestingly and oddly enough, there are VERY FEW real educated short sale experts. Meaning it's highly likely there is no competition in your area. A short sale professional is someone who uses this concept in real estate as their primary source of income. They don't complain about how tough short sales are, because they understand the parameters, which quickly weds out the time wasters in their deal pipeline. Most investors don't. So they continually bumble about, befuddled and bewildered, thinking short sales are just too time consuming. That's an easy and uncomplicated way to quit.

It's my humble opinion that if you fail to truly learn and utilize short sale investment strategies in your real estate career, you will easily never realize 80% of your income potential. Ask me how I know this... I could name a hundred students in every state who focus exclusively on short sales and preforeclosures as their sole means of income. What's the difference between them and you?

THEY HAVE GAINED OUR KNOWLEDGE, AND NOW IT'S YOUR TURN.

What are you waiting for? I know, you need to make sure this is real. It IS real to those who don't make excuses. I've seen some remarkable lifestyle transformations in so many students - transformations in the mental, spiritual and of course financial states. We celebrated many of these success stories a couple of years ago, when 1 personally flew Donald Trump as our Keynote Speaker, and gave away my $70,000 Hummer to my highest achieving student of the year. So what does this mean to you? Bottom line -- I want you to prosper and continually benefit from the information we provide. And you should stay plugged in to get continual feedback and support through our online membership community. This time tested information will take you to whatever level you want to go, at whatever pace you want.

WHAT'S NEXT FOR YOU?

Many serious investors (and those seriously disgusted with their J.O.B.) jump in and truly commit, by signing up for our five day intensive "Short Sales Exposed" training. If that's your choice, then CONGRATULATIONS! Others will start slowly, by checking our some of our free stuff. My advice is to get started on something, create momentum and make a decision. Get your confidence from those who have already made the journey. Read their letters and listen to their amazing backgrounds - all varied walks of life.

At a minimum, it's recommended you join our monthly membership, which is packed with an onslaught of seriously fabulous online training info, live calls with my negotiators working deals. Seminar excerpts, how-to videos and teleseminars. I extend a personal invitation to one of our national foreclosure workshops. Remember, those who don't understand how to invest in using short sales in today's market are getting left behind. Get yourself into explosive action in 2008, and we'll see you at the top!

To your quantum leap!
Jeff Kaller

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Why You Will Love Doing Short Sales

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 14 Jan 2008 12:11:57 -0800

Negotiating Short Sales is a great way to supplement your income, or even replace your full-time job with a more lucrative and less time-consuming alternative. But the unlimited potential income is just one of many reasons that you're going to love doing short sales. Here are some other reasons that you may not yet have considered:

1. The "Win-Win-Win" Situation.
When you work with a lender to find an acceptable compromise on a price for a distressed property, you not only are obtaining a great investment property for yourself, you're also helping a distressed homeowner move on with their life without the burden of a foreclosure on their credit and their mind and helping a lender recoup money that they otherwise might have had to wait months or even years to recover - if they ever recovered it at all! Of course, the investment property for you is the driving motivation here, but the other aspects aren't so bad either. The other two parties may not thank you every time (if ever), but you are helping them both make the best of a bad situation, and you should feel better about that the more deals you do.

2. You're Solving Other People's Problems.
And what's more, you're doing it quickly, efficiently and effectively! Obviously, if a person has just agreed to a short sale, their mortgage is not their only problem, but once that particular problem is resolved, their stress-load is ten's of thousands - if not hundreds of thousands - of dollars lighter. And that relief can spur them into the next stage of their life where they'll be able to clean up their messes and start over fresh - and all this without the taint of a foreclosure on their credit.

3. Reliable, Predictable and Repetitious Results.
Once you've mastered the art of short sale dealing, you have a permanent source of income in your repertoire. Short sale deals require you to take a certain number of specific steps, factor in certain and specific aspects of a property, then produce and acceptable offer and walk away with your new investment. Not all your offers will be accepted, and you'll probably turn down some tempting deals because they're just too risky, but once you know how to spot a good deal and negotiate successfully for it, your potential is limitless! Because there will always be foreclosures (it's likely that the number will only increase as more and more people take out variable interest loans with rates they won't always be able to afford) and lenders will always want to recover cold, hard cash.

4. Feeling Good.
I've already discussed how you're helping other people while profiting yourself, but the other thing that's going to make you feel good is your personal satisfaction in a job attempted and completed well. When you close your first deal, you're going to feel like you won a marathon, and when you close your twentieth, you're going to feel even better! Investing in short sales may be a totally new area of endeavor for you, or it may just be a new facet of your real estate investing portfolio, but either way, mastering a new skill and making lots of money at it is incredibly rewarding. And the looks of admiration and even envy on your friends and family's faces when you break the news that you just doubled your annual income with one or two short sales will be - literally - priceless.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Are You Doing Anything Exciting For Christmas?

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 18 Dec 2007 11:53:38 -0800

During my flight back from Fort Lauderdale, after my last lecture on Foreclosures for 2008, I was asked "Are you doing anything exciting for Christmas?" What constitutes exciting? If finances aren't a consideration, you can pretty much travel to any destination, not worry about what you're spending or suffering the consequences of being away from your business.

My wife Sofia and our daughter Allie and I have had some amazing trips in the last several years. Our Preforeclosure business has always been good to us. On December 21st, we'll have a closing that should net us just under $150,000...not a bad Christmas present to ourselves.

So lemme see... are we doing anything exciting? We are actually staying home in St. Augustine, Florida, taking early morning walks on the beach while make plans and stretching our imaginations. Sofia's working on a couple of projects with our staff to make things run smoother. I'll meet with my advisory board - nine of my students who've been with me for over 5 years - as we iron out the details on a major project next year... and I'll be working with Jared in my office on a significant web product for early 2008.

Does this sound exciting? Beauty is in the eye of the beholder... business to me IS exciting. The line between work and play does become thoroughly blurred for any true entrepreneur. The blunt truth: for some entrepreneurs their business life is more important than a personal and social life, creating utter annoyance and tension for those around them.

From the outside looking in, it's easy for others to label any determined, passionate entrepreneur as a diseased neurotic workaholic. Endlessly neglecting non-work responsibilities. Not spending enough interesting time with loved ones.

Interestingly, in my travels through Fort Lauderdale, I watched two different couples as we shuttled through the airport, as they got closer to their "exciting" vacation destinations. I saw several underlying "themes" if you will. One lady was making promises to a bill collector on her cell phone. The other couple was engaged in an argument about how much the other was allowed to spend once they arrived at their resort in Lucaya.

So the problem we entrepreneurs face seems to be the biggest secret to ALL - entrepreneurial success. Constant passion, the thrill of the ride, and being emotionally independent from a J.O.B. allow us to crate money on demand. Don't get me wrong... I love to fritter away time, guzzle up my favorite cabernet while watching lifestyle moves... taking my daughter to Juicy Couture, or playing a good long game of Monopoly during the holidays. And I do it all by conscious choice.

An exciting Christmas is a precise decision to be as productive or unproductive as you want.

Here's wishing you an exciting and rewarding Christmas!!

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/