A New Real Estate Investment Opportunity That Takes Advantage of the Current Credit Crunch

CFS working together with a prominent California-based law firm can now offer you an investment that has very little downside risk.  The entire investment is recouped in the first year.  Once capiotal has been returned the  ROI projections are as follows:

Year 1: 60%

Year 2: 100%

Year 3: 80%

The Investment Vehicle

Lenders are currently suffering massive defaults on their real estate loans, which critically limits their liquidity, and their ability to make new loans. Keeping these “non-performing notes” on their books is more expensive for them than selling them at massive discounts. Accordingly, most lenders are now selling them for 4-10 cents on the dollar.

Unusually Favorable Risk / Reward Profile

Several factors greatly mitigate the level of risk normally associated with these notes:

1. Acquiring the notes at less than 10% of face value,

2. Extensive experience in picking the right notes,

3. Willingness and flexibility to substantially lower the face value of the note and the homeowner’s monthly payment.

4. Extensive experience in negotiating with the homeowners and establishing borrower loyalty,

Bottom Line: When we acquire a note for less than 10% of face value, we can lower the value of the note – and the homeowner’s payment by 50% -- even 75% -- and still make a very significant profit.

The Opportunity for You

More and more Americans are having trouble making their mortgage payments. Homeowners are in trouble. Many have lost their jobs, or face reduced income/hours in the positions they maintain. Others face unforeseen expenses that wreck havoc on their personal finances. Now many are facing dire circumstances. Others are being affected by rate adjustments in their home loans.  The new opportunity we have for you is focused on making money while helping this second group of homeowners, the ones who could keep their heads above water if they just had a little smaller payment each month. Finally, this is a turnkey investment opportunity. Everything is done for you by seasoned professionals. It will not require from you any time or expertise.

You must be a qualified investor to participate and the minimum investment is $250,000.

If your interested call or email me for more information.

I have been looking for someone that specializes in converting portfolios of non-performing seconds into performing notes.  It is a very specialized skill set and one that creates an opportunity for incredible rates of return.  Well I have finally found someone that has the skill.  We have almost completed our review of their portfolio return but so far, they look fantastic.  Their typical deal is returning 3 dollars for every dollar invested over the life of the program...typically 3 years.  The law firm has been around for 19 years and has a strong history.  Payments to investors are made as they are received by borrower's which typically takes place about 60 days after the notes have been purchased in bulk.  Every portfolio is tracked separately and obviously has its own rate of return.  I should also say that you should be careful of all investments because investments carry an inherent risk but I really love this one.  Minimum investment is not too bad at $250,000 and I can pay a significant commission to the person that finds an investor for me in these deals.  The money is paid out of the total return created and the returns I have quoted above are returns to the investor AFTER all expenses are included.

I will be providing more information about this and other opportunities in blogs over the next several days.  Keep your eye out for them and let me know if I can be of any assistance to you or your investors.

Quick note to let everyone know that if your broker is working with First Horizon on a Nehemiah program make sure they have your programmed locked.  They are not accepting any new loans with the program and expect many more lenders to follow.  Buyers wanting this program need to move quickly and secure their financing.

Most people don't realize that investing in non-performing second's can produce very profitable returns.  We have been working with a major law firm based in California that buys non-performing notes in bulk at 5 to 10 cents on the dollar.  Most people have no interest in this product because they either do not understand it or simply are not aware of the return potential.  This is certainly not for everyone because it takes a minimum of $250,000 to participate.  Those that do decide to take this route have seen historical average returns of 200% in 3 years (triple their money) payable monthly as the non-performing notes are recovered through the firms recovery department.

If your interested in finding out more, let me know and I would be glad to explain the process in further detail.  We have had some recent success buying notes at 3 cents on the dollar, creating even greater returns.

It's not uncommon for home buyers to talk with several mortgage brokers or lenders to compare loan products and interest rates. Buyers are often scolded by mortgage brokers when they talk to more than one broker. Most will state that they are ruining their credit score by allowing multiple credit inquiries.

Too many credit inquiries can negatively affect your credit score, but you can control the damage. And, credit inquires make up a relatively small part of your credit score.  

FICO credit scores from Fair Isaac Corp. uses five types of information to calculate a credit score. Each type counts as a percentage of the total credit score. They are: payment history (35 percent); amounts owed (30 percent); length of credit history (15 percent); new credit (10 percent); and types of credit in use (10 percent). Credit inquiries fall into the "new credit" category, which accounts for less than 10 percent of your credit score.

The FICO credit-scoring model ignores all mortgage inquiries made within the last 30 days, so they will have no impact on your credit score. An older version of the scoring formula uses a 14-day time span. A newer version uses 45 days. The lender decides which version of the scoring model it wants to use.

Don't panic if you don't line up your mortgage in 30 days. The scoring formula looks for mortgage inquiries older than 30 days. It counts all the mortgage inquiries within a certain period, which varies depending on the scoring model used, as one inquiry. For some borrowers, one inquiry might not affect their credit score at all. If it did, it should be less than five points off your score.

5 Points can make a difference in your mortgage but if you understand the modeling, and plan accordingly, you can shop your rate and protect your credit at the same time.

Are you using video to market yourself to your clients?  If not, I can show you how to do it yourself or I can do it for you.......and it won't cost you a dime.  If you have an email distribution list, use it and develop more opportunities for yourself.  If you have a professional place to do your own recording, do it now.  If not, come in to my office in Roseville or my office in Manhattan Beach.  I will interview you and put together a 3 to 5 minute video that we will then send out to my clients and yours.   I can tell you which clients watch your video, who forwards on to a friend or relative and give you their email address for future marketing campaigns when they have expressed interest.  Now you may ask, what do I get out of this.  For me, I get my name out to your clients as a result of the video interview we put together.  Call or email me so that we can discuss further.  I have put out video's like these for my mortgage clients and have gotten a tremendous response.  My partner has put several out for Realtors and both he and the Realtors captured business as a result while also increasing their potential client list with additional new marketing contacts.

All you need to make this happen is an idea about the product or service you wish to discuss and approximately 2 hours to shoot the video, less time if you don't need a bunch of reshoots/editing.  If your not sure about what to promote that would be of interest to your clients, I can help.  Call or email me so we can discuss.

Mortgage applications drop to an 8 year low last month.  What does that mean for our economy and the real estate market in particular?  Low turn over hurts everyone but it can also mean that we have reached the bottom.  Look at what happened to real estate prices 8 years ago after hitting the low.  We went on to 7 years of ever escalating prices.  I have heard forecasters predict as much as an 18% drop in national prices in the next 12 months so one never knows but predicting a bottom is almost impossible.  If prices have reached the point that you can comfortably afford the house you want, jump in.  We are most likely close to the bottom if not already there.  If your going to stay in your home for more than 5 years, this is likely a safe time because your hold time should protect you.

I have access to bulk REO properties as discribed in my previous blog.  I am in the process of secruing property for 2 hedge funds and 3 individual investors.  The profit potential is significant and I want to purchase some of these properties for myself because I believe I can double my investment with little down side risk in less than 12 months.  Is anyone else interested in pooling funds to create a purchase pool of $25 million?  I have sold the buld properties in the past but have not personally made any purchases because the smallest lot was larger than my ability to fund but if others are interested, 100 people could put up 250K allowing us to purchase the bulk REO.  Profits could then be split based upon each investors original contribution.  Does anyone have any experience putting together an investment group like this?  Anyone interested in investing?  I would love some feed back on this.  Thanks

I have access to REO bulk purchase properties.  Many people say this but few people can actually put the deals together.  My source will allow the buyer to pick and chose individual homes that comprise the bulk portfolio to improve the liklihood of significant profit in the transaction.   Check out the details below

 Briefly, here are the high points of the "bundled REO properties" deal.

        
A major bank (does business nationwide) is in distress
It has a vast inventory of REO residential homes that it wants to liquidate
It's selling these properties at 37% of current market value
The properties will be packaged to fit the investor's appetite
The minimum value of a package is $25m ($25,000,000) and maximum value is $1b ($1,000,000,000)
Typically deals are contingent on buyer acceptance of the properties in the proposed package but in this case the buyer has the opportunity to set specific parameters and choose from among numerous  properties that fall within those parameters. 
Buyer has approximately 10 days to physically inspect/appraise the properties chosen
Buyer must pay in cash after formally accepting the properties
Prior to buyer reviewing properties and creating portfolio, Buyer must provide proof of funds

•·         Buyer must provide signed LOI and fee agreement

•·         Bank has stated that all properties are currently vacant

•·         Portfolio broker fee of 2% is due at closing

•·         Bank will make properties profiles available for inspection and selection immediately following receipt of LOI, agreement, and proof of assets

I have just secured a deal to purchase a $75 million package of REO property at 37% of the appraised value for my client.  Most people do not have access to that kind of investment but some do so let me tell you what I have available to me.  I can get packages totaling as little as $25 million but that is the absolute bottom.  If you or one of your clients is interested contact me today.  I have had bulk REO's available to me before but not at this price.  If anyone else has a contact for people selling near this price with a smaller bulk pakage please let me know, I have interested buyers that can not pull of the $25 million purchase minimum.