The Federal Housing Administration announced Friday that it is appointing a chief risk officer and making changes in its credit policies to make sure its reserves against future losses stay above a minimum set by Congress.
The FHA now insures about 5.3 million mortgages, up from about 4 million three years ago.
As of this summer, about 17% of FHA borrowers were at least one payment behind or in foreclosure, compared with 13% for all loans, according to the Mortgage Bankers Association. Rising defaults mean the FHA’s reserves may sink below the 2% mark required by federal law. The FHA says a study being sent to Congress in November is expected to show that ratio dipping below required levels for the first time.
The FHA acknowledged that a study that will go to Congress in November is expected to show the FHA’s capital reserve ratio falling under a congressionally mandated 2%.
It said the changes it is making would strengthen those reserves.
Real Estate Investor Coach Response:
I believe this is a good move introduced by FHA to appoint a chief risk officer to help minimize potentially shady mortgage operations that can go on to effect the entire market. There needs to be better regulation, but at the same time flexibility so that lenders can lend and borrowers can borrow! Easier said than done…
Real Estate News Overview: Take a look at the chart below and see how the Foreclosures stack up in your state: Real Estate Investor Coach Response: It's obvious that Foreclosures aren't going away any time soon and in my opinion I think that the housing market has yet to hit bottom. Don't take me as a pessimist, but rather a realist. There is still a lot of funky financial stuff going on out there with unemployment high and consumer confidence low. But don't let these statistics depress you, rather they should excite you, because if you know how to make money in foreclosures you can really rack up some serious cash and equity. Go make some money investing in real estate!
Today’s Real Estate Investor Coach Insider Video is called, “Private Mortgage Lender Conversation.”
I’m changing it up a little bit today, rather than me giving you pointers about how to do real estate investing, I’ve decided to take about a 6 minute snippet of an hour long conversation that I had with one of my Mastermind members. This conversation is all about what to say to get private mortgage lenders in your real estate investing business. This is REAL meat for you, that if you implement will definitely help you take your real estate investing business to the next level. Enjoy the video….
Be sure to take 30 quick seconds after the video and tell me what you think by posting your comments below. THANKS!
Today’s Real Estate Investor Coach Insider Video is called, “10 Skills Needed to be a Successful Real Estate Investor.”
There are no doubt hundreds of skills that someone may need to possess to become a successful real estate investor, but for the purpose of this lesson I have narrowed it down to what I believe are the 10 most important skills that you need to possess. Watch the video now…
1. Ability to make decisions quickly (take action)
2. Creativity
3. Ability to negotiate
4. Ability to explain complex processes in a clear and understandable fashion
5. Ability to eyeball the physical characteristics of a property and use that to determine improvement costs
6. Ability to analyze the potential for a particular real estate deal
7. Ability to understand exit strategies
8. Ability to keep one’s emotions out of a business decision
9. Ability to minimize personal risk
10. Ability to always do business with integrity (add paragraph about this)
Be sure to take 30 quick seconds after the video and tell me what you think by posting your comments below. THANKS!
Median sales prices of new houses sold in July was $210,000.
In the Northeast, July's sales rate rose 32.4% compared with June
The South was up 16.2% compared with June
The West was up 1% compared with June
The Midwest's sales rate fell 7.6% compared with June.
The average rate for a 30-year fixed mortgage was 5.14%, up from 5.12% a week earlier.
The average rate on a 15-year fixed-rate mortgage rose to 4.58%, from 4.56% last week.
Rates on five-year, adjustable-rate mortgages averaged 4.67%, down from 4.57% a week earlier.
Rates on one-year, adjustable-rate mortgages were unchanged at 4.69%.
Real Estate Investor Coach Response: That's all the news that I've got for you on this beautiful Monday morning (in Lexington, KY). Not a whole lot of explanation, just some cold hard stats to start off your week. I think it is important to at least keep a pulse on what is happening with real estate around the country and I hope this quick blog post helps you do that.
Today’s Real Estate Investor Coach “Insider” video is called, “Wholesaling.”
Wholesaling is probably on of the most common was to flip houses and create cash flow for your real estate investing business. It is all about buying low and then selling low. Basically you are selling bargains to bargain hunters. People are always looking for bargains and it is your job to find or create the deal and then flip it for a quick $5k-$20k profit. How many of these types of deals do you need each month to surpass your current income? Go watch the video, learn something new and then implement it…
Enjoy!
Be sure to take 30 quick seconds after the video and tell me what you think by posting your comments below. THANKS!
I thought this might be a good follow up to last Wednesday’s Biz Management Blog post which was called, “Fart on it.” You might be interested to know that a few of my “Insider” subscribers didn’t really care for last week’s topic, and as a result felt the need to complain about it. Did I lose sleep over it? No, in fact it is actually good and bad. It is good because, I don’t want complainers on my list and as a result, these people have been removed from my subscriber database. It is bad because no longer will these subscribers be able to learn from someone who is kicking ass as a real estate investor. If you don’t know by now, I give a lot more than I ask for.
Ok, so what does this have to do with today’s lesson called, “Don’t be afraid to annoy people?” As a real estate investor, you will undoubtedly annoy people on occasion as a result of your marketing. When you mail letters and postcards, and put up signs, etc not everyone is going to like your message and be happy that you contacted them. Some will asked to be removed from your list, some will not like your street signs, etc. The key is, not to let the negative haters and easily annoyed keep you from doing what you do. The fact is, some will, some won’t, so what, someone’s waiting (SW, SW, SW, SW)!
Every week in my real estate investing business I get a call from someone that has requested not to be contacted again (after the first letter). One time, I even had someone take their complaint to the Attorney General’s office. Can you believe that! All because I sent them a handwritten letter in the mail saying that I wanted to buy their house. It’s called marketing buddy! If you are not interested in selling then here’s an idea, “don’t call.” The AG’s office really seemed to care less about this complaint. There is no law about mailing letters to generate business. The unfortunate thing is, the “complainer” apparently has such a pathetic life that he let one little letter in the mail upset him so much that rather than throwing it away he felt the need to retaliate. Again, my reaction to this is, oh well, sucks for him. I didn’t do anything wrong, on with running my business.
To be successful in this business you need to very quickly wack the suspects and only work with the prospects. Only do business with people that want to do business with you. You must not be afraid to annoy people with your marketing. Don’t let the people that get annoyed by your marketing efforts scare you away from this business. Your marketing is the heart that pumps blood into your business. If you turn that off then everything else will die.
Do you have any stories about when your marketing annoyed someone? If so, please share them in the post below.
Homeowners continue to struggle with their mortgage payment as unemployment remains an unresolved issue in the U.S. 13% of people who own a home are behind on payments.
The outset of this mortgage debacle started as a result of the subprime loans, however the shocking statistics are that of the conventional 30 year fixed mortgage homeowners being in default as a result of rising unemployment. One in three new foreclosures between April and June was from a prime, fixed-rate loan, up from one in five a year earlier.
Real Estate Investor Coach Response:
I do my best to keep these weekly news blog posts as fresh and relevant to you as possible, however sometimes the news just repeats itself. Clearly the bottom of the market has yet to be found, however as a real estate investor, I must reiterate that I could care less what the market is doing, because I know how to make money in good times and bad. With high interest rates and low. In a recession and out. With high unemployment and low. With a liberal President and a conservative…
So why am I telling you all this, to brag? No. I am telling you this to hopefully give you something to aspire to if you are new in the business of real estate investing. If you are ready to kick your business into overdrive then perhaps it is time to get a coach (me) to keep you fatten your wallet. Check out my coaching programs at http://www.RealEstateInvestorCoach.com/mentoring/
To be frank, the only time I review the news is to write you (my readers) this weekly blog post. The only news I watch throughout the week is ESPN news! Now that is news everyone should watch. And unfortunately I just found out that in the little league world series, KY (my home state) got killed on Sunday by Texas. I tell you what those young boys sure do eat their wheaties.
Sorry, I get sidetracked with two topics. Baseball and Real Estate Investing. Putting the two topics together with me kicks my ADD into overdrive!
Today’s Real Estate Investor Coach “Insider” video is called, “5 Steps To Selling Houses Fast.”
One of the most frequent questions I get from people in the business and not in the business of real estate is, “how are you able to sell your houses?” My response to them is, first of all, I don’t need to sell for full retail value, and secondly, I make it easy for my buyer to buy. Sounds easier said than done to most. Go watch the video and then it will make more sense…
Enjoy!
Be sure to take 30 quick seconds after the video and tell me what you think by posting your comments below. THANKS!
One in 4 US homes for sale on August 1st had their prices marked down at least once since being listed on the open market.
Watch this short video about today’s Real Estate Investing News:
Real Estate Investor Coach Response:
To think that 25% of the listed homes on the market lowered their price is very powerful information. What are you doing about it? This is a great opportunity to request seller financing, or subject to transactions. This is still very much a buyers market, and it probably won’t be for much longer. I do believe that there is still probably a year before the market begins to show any signs of a turn around. Remember real estate investing is all about the MATH! You need to be making lots and lots of offers on properties. If you are not making offers, then you are not buying properties. These properties that are lowering their prices are perfect homes to make offers on.
To find out more about what is happening in your local area I highly recommend checking out the site: www.Trulia.com
Real Estate Investor Coach Response: It's obvious that Foreclosures aren't going away any time soon and in my opinion I think that the housing market has yet to hit bottom. Don't take me as a pessimist, but rather a realist. There is still a lot of funky financial stuff going on out there with unemployment high and consumer confidence low. But don't let these statistics depress you, rather they should excite you, because if you know how to make money in foreclosures you can really rack up some serious cash and equity. Go make some money investing in real estate!
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