Wednesday, January 30, 2013

Are Deed Restrictions Going To Be Customary in Every Bank Owned Property and Short Sale?

     As most know, Bank of America has placed a 60 day deed restriction on the sale of any inventory in their REO department as well as on any short sales they approve as the mortgagor.  This restriction prohibits the deed from being transferred into another name or entity for a period of 60 days.  This constraint seems to be taking hold in the defaulted asset arena as other banks and GSE's seem to be placing the same restrictions on their foreclosures and short sales.

     Below is an example of the addendum that Wells Fargo is now requiring with the approval of their short sales:


      This basically states that you are not allowed to transfer title even if it was being sold for a loss.  It also states that after the 30 day deed restriction, you may not sell this property for more than 120% of what it was purchased at for a period of 90 days.  Unfortunately, this is going to take place on nearly every foreclosure and short sale. Fannie Mae is the one behind this change to short sales.

     In a recent press release on January 18th, Fannie Mae announced that all mortgage backed securities owned by this GSE will be sold with a 30 day deed restriction if they are sold as a short sale.  Since Fannie Mae purchases nearly 70% of all mortgages, this will have a dramatic effect on how investors purchase these transactions.  Investors who are in the transactional business will be forced to hold properties longer instead of quickly reselling them.  

     If Fannie Mae continues to follow the path of Bank of America, this will lead to a 60 day deed restriction. This deed restriction will not only be limited to short sales, but will also be placed on REOs as well.  For many investors, this will end the way they do business.  Many will change careers, leaving the few who can adapt privy to more inventory with less competition.

     


Monday, January 21, 2013

Bank of America Looking to Decrease Amount of Short Sale Transactions as of 1/15/2013

     Bank of America released a press packet last week announcing some changes to their short sale and foreclosure process.  Below is the actual literature posted to the BofA website. Or, story can be read by clicking on this link: https://agentresources.bankofamerica.com/ss_news_13JAN15 .


     For homeowners considering a short sale with Bank of America, this is extremely important to take note of.  The summary of this announcement is that Bank of America is going to continue through the foreclosure process if a homeowner files for a short sale until all parties have a contractual agreement to perform a short sale.  While that may not be difficult for a buyer and a seller to agree upon, the approval of the assigned "short sale specialist" representing BofA can and will take 3-9 months to sign an approval.
     In some states (such as Florida for example) this may not be too detrimental.  The foreclosure process in judicial states can take years to complete.  As for states such as Texas, this is a death penalty.  Because Texas is a non-judicial state, foreclosures can be processed and completed in 90 days or less.  It is unheard of for BofA to give approval in a short sale transaction in that amount of time.
    There is an example of a recent short sale that an investor was in contract to purchase.  The original contracted date between the seller and buyer was some time back in July.  As time went on, the agents and parties involved were getting updates from the asset manager at BofA's short sale department with excuse after excuse.  The file was constantly being transferred from specialist to specialist with titles like "tier one agent", "tier two agent", "third stage specialist", and so forth.  As January 15th approached, the buyer was requested to submit corporate docs for the LLC purchasing the property.  The buyer submitted the request and the "third tier specialist" rejected the docs, stating that "the articles were written incorrectly."  This buyer happens to be an avid investor, regularly purchasing around 100 properties per month nationwide.  This was the first that the buyer ever heard of their articles being formed incorrectly.
     On the day of the 15th (the same day this press release was announced), BofA rejected the sale and the property is currently scheduled to be sold on the county court steps next month.  If there was an agenda then it's pretty obvious.  The agenda is simple.  The cost involved in a short sale is much more expensive than that of a foreclosure.
    Now that this rule is in place homeowners are still allowed to file for a short sale.  However, it is a race to gain bank approval before the foreclosure wraps up.  The odds are strongly in the favor of a foreclosure.
    This really does not change much for investors other than being able to perform a transaction much quicker.  The property will still be sold.  However, it will be sold as a foreclosure, not a short sale.  With Bank of America, the same issue is presented.  That issue is a 60 day deed restriction, but that is an entire other topic.

Thursday, January 17, 2013

Biggest Investment Event of the Year Coming Up in 10 Days!!!


The REI EXPO is coming once again to the Metroplex.  It will be held this year at the Hurst Convention Center on January 26th - 27th.  I had the privilege of attending this event last year and I found it to be the most educational and resourceful gathering of real estate professionals than I have been to in the past.  There are over 30 classes taught by industry professionals on any topic that you could possibly imagine.  The lectures range from leveraging capital to maximize ROI, to forming an LLC and everything in between.  Tim Herriage has done it once again and put together an event that is sure to out perform last year's Expo.  Below is the roster of lectures and their speakers:

2013 Dallas / Fort Worth, TX. Jan 26 & 27

profilepictureAl Walker 
Buying Single Family Investment Homes: A Model That Works



This class is especially useful for investors that fall into these two categories: • Investors that are just getting started and are looking for repeatable, proven model, and • Experienced investors who want current information on market techniques that support your financial goals
profilepictureAndrew Cordle 
3 Critical Components to Creating Real Estate Wealth in 2013



Stop chasing the changing techniques and tactics of opportunistic real estate investing. Financial Momentum\\\'s Change, Capital, & Cashflow approach will give you the essential framework for creating a successful and sustainable real estate investing business.
Belinda Savage 
Tax+In-Depth Analysis of Strategies 



Details coming soon...
profilepictureBlake Yarborough 
Smart Money Loans

Capital Concepts

What is a Smart Money Loan? Fearless Financing Preferred Pricing Q&A With BLAKE YARBOROUGH
profilepictureBrad Sumrok 
Rat Race to Retirement How to Earn Double Digit Returns and Retire Early by Investing in Apartments 



. In his 90-minute Overview “How to Earn Double Digits and Retire Early with Multi-Family Investing”, Brad reveals his 3-Step Wealth Formula that has enabled him and many others to Retire. He walks you through the entire process, step-by-step, and makes it simple, easy and achievable for just about everyone.
profilepictureBryan Dunklin 
SERIES LLCS – PROTECTING YOUR ASSETS WHEN YOU OWN MULTIPLE PROPERTIES OR NOTES

LAW OFFICES OF BRYAN DUNKLIN

Details Coming Soon!
Carol Johnson 
How to use Owner Financing And get Paid Three Times on each Property you sell



Scott Horne, together with his partner Carol Johnson, show you the techniques for buying and selling real estate utilizing multiple creative owner financing mechanisms helping you earn money at Closing, via Monthly payments and when the borrower pays off the loan.
profilepictureCharles Sells 
Tax Liens, Tax Deeds – Simplifying High Yield, Conservative Investment Opportunities

Platinum Investment Properties (PIP-WEST)

Description coming soon...
profilepictureChris urso 
Using Private Money to Fund your Multifamily Deals



How to find the money to do your deals (it’s easier than you think!) Attract a flood of investors begging to invest with you Use your IRA to invest for massive returns on your money ..and much much more!
Chris Dannenfeldt 
Save Your Retirement



Who will benefit: • All investors who may find a source of help going forward • The novice investor who will learn what not to do and how to build their own portfolio smarter and safer and more profitably
profilepictureChris urso 
Keys to Getting Started in Multifamily Apartment Investing



Create massive wealth NO MATTER WHAT your current financial situation Learn how to find the best investment properties…anywhere in the country Educate you on how to quickly know a \\\'great\\\' deal from a \\\'dog\\\' ...and much much more!
profilepictureClay Cahoon 
Secrets to acquiring properties at BIG Discounts - Finding and Dealing With Motivated Sellers Long Before They Get To A Foreclosure List



The intended audience will be anyone who wants or needs to increase the number of sellers to which they talk or anyone looking for an edge or advantage by directly talking to distressed owners before anyone else even knows they are in trouble. Both new and experienced investors will benefit from this presentation.
profilepictureDan Schreimann 
Now that you have your Assets, How do you Protect them?



Details coming soon...
profilepictureDavid Phelp 
The Ultimate Real Estate Financing - Insider Secrets to Private Capital and Joint Venture Structures Without Bank Financing



Attendees will find out how to access all of the capital needed for their investments without using the banks. How to engage potential private lenders, who they are and where they are most often found. Additionally, how best to structure real estate deals with private lenders and what return on investment lenders expect today
profilepictureDean Lontos 
Using Leverage to Your Advantage



• The benefits and pitfalls of using leverage • Bank Financing, Private Money and Hard Money Explained • Maximizing Return on Investment and Return on Equity • How to finance a fix and flip • How to build a single family rental portfolio • Multifamily deal structures
profilepictureDennis Henson 
Where will the MONEY come from?



Do you want to learn twelve proven techniques that will allow you to buy deal after deal without the need to use any of your own money? And would you like to learn where to find large groups if private investors anxious to lend you money with unbelievable terms--even if you’ve never done a deal?
profilepictureDon Fullman 
Tax Liens, Tax Deeds – Simplifying High Yield, Conservative Investment Opportunities



Especially useful for investors interested in purchasing Tax Liens, this class provides a description of basic and advanced topics regarding Tax Liens and Tax Deeds - what they are, how they are purchased, how they differ in various states, legal requirements, foreclosure, use of a servicing agent vs. on your own, and more advanced topics.
profilepictureEric Mattingly 
Private Money Partnerships 



What is private Money? How to structure a deal Institutional Investors vs Angel Investors Wants & needs of private money Investors Your responsibility & accountability to your partners Beware of the dabbler Legal Structures Securities laws Building the right team How to capitalize on the expertise of others
profilepictureErik Wikstrom 
Eric Wikstrom - Details coming soon...



Details coming soon...
profilepictureFrank Freisenhahn 
Understanding the Appraisal Process and How it affects Investors


profilepictureGaylene Rogers Lonergan
Asset protection with the LLC and Texas series LLC



Review of Entities Advantages and Disadvantages Requirements, Benefits and Risks Asset Protection Model
profilepictureGeorge Roddy 
Hedge Fund Hunter – Partner with a 1 Billion Dollar Buyer



Real estate changes by the year and one of the biggest change in the Texas real estate investing landscape is the emergence of “institutional buyers”. Yes, Wall Street is focusing their attention on single family real estate and you have 2 options to choose from.
profilepictureGreg Bell 
37 Quick Cash Secrets to Sell, Lease & Flip Houses in a Flash! New & Improved 2013



In real estate you make your money when you buy, but you do not realize your profit until you sell, lease or flip it. When you attend this class you will discover over 37 time tested and proven techniques along with some new and updated secrets for 2013. Many of these never before revealed techniques and strategies will help you get paid from your real estate deals quickly & profitably. These ar
profilepictureJana Uselton 
Staging Investments to Sell in 2 wks @ 99% LP

Model My Home

A Must-Attend Session!! Learn how to set your property up for success by proper home preparation and professional Home Staging WITHOUT costing you an arm and a leg. Whether you are leasing or selling your investment properties, key tips from this seminar will put more money in your pocket with a quick contact in only days. Don’t miss the 7 must-knows to prepare your homes for selling success!
profilepictureJason Schubert 
The Best Kept Secret in Commercial Real Estate



Will this work? How would you like to make at least $5,000-$15,000 in positive cash flow every month for the rest of your life? This really can happen, and it can happen on your first commercial deal!
profilepictureJef Bednar 
Creating $25,000 Monthly Passive Income 

Owner Finance Academy

Jeff will review the current conditions of the real estate market as well as discuss the effectiveness of the various major investment strategies. The current market conditions make owner financing the most effective method for quickly and easily acquiring real estate and for generating long‐term passive income.
profilepictureJillian Sidoti 
Becoming a Private Money Superman


profilepictureJoe Boston 
Section 8 – A great exit strategy!

Dallas Real Estate Investment Group

The presentation will provide an overview of the Section 8 program and why investors should consider it as an exit strategy. If it is a good business model and what the responsibilities of a Section 8 landlord entail. Also, it will cover tenant and public housing authority requirements.
profilepictureJohn Bowens 
Live TAX FREE for life. Learn the investment strategies that the only 2% of Americans are using 



John offers a comprehensive step-by-step process to transform your retirement accounts into a tax-exempt real estate investment tool. The tax-strategies discussed will show you how to eliminate capital gains tax and ordinary income taxes within your real estate investment model. These strategies used by just 2% of retirement investors is gaining in popularity and what was once used by only the wea
profilepictureJoseph Irons 
Finding money in real estate by looking for F.L.L.A.W.S



Details coming soon...
Josue Gonzalez 
Turn- Key Real Estate Investment Solutions - A through Z 



Advantages of using an LLC. Financing?- 203k, conventional, lines of credit... determining the most cost-effective alternative for YOU. Finding profitable investments- income, holds or flips. Handling Short-Sales- truly short and hands free. Foreclosures- in a competitive market, get the right bid to win. Repairs, improvements or rehabs to make you money. Win-Win pricing and exposure to get
profilepictureJulie Pettit 
Find Your Match : Choice of Entity for Texas Real Estate Investors

Henley & Henley P.C. 

Details coming soon!
profilepictureKevin Rollings 
What is in Store for Storage?



Self Storage is the #1 voted best investments in the real estate commercial world. Why? What is better than owning space you rent, whether it is short or long terms, and at the end of the day YOU still OWN it!
profilepictureKurt Carlton 
Maximizing your Borrowing Power 

Sherman Bridge Lending Corp

Details coming soon...
profilepictureL.Scott Horne 
How to use Owner Financing And get Paid Three Times on each Property you sell



Scott Horne, together with his partner Carol Johnson, show you the techniques for buying and selling real estate utilizing multiple creative owner financing mechanisms helping you earn money at Closing, via Monthly payments and when the borrower pays off the loan.
profilepictureLynn Andris 
Time Is Money: A Single Family Investment Timeline



In this class Lynn Andris, Radio Host and Real Estate Investment Mentor for Lifestyles Unlimited, will review the steps involved in the deal and focus on the frequently forgotten or out of sequence steps that can cost you time and money down the line.
profilepictureMark Bloom 
The Future of RE investing: Market trends and Statistics, How to maximize your returns and Build Wealth



Details coming soon...
profilepictureMichael Valerio 
Leveraging Time to Maximize Your ROI



People who will benefit are mainly single family investors new and seasoned, primarily who have a career but are part time investors that need to leverage time by having an effective and efficient start to finish strategy.
profilepictureMike Sarwari 
5 Best Investment ideas for 2013



Michael Sarwari will discuss how to create a diversified investment portfolio. While most people only talk about investment diversification and protection, Michael will actually teach people how they can diversify their investments so they can maximize profits and minimize losses
profilepictureMike Hanna 
Hard Money - Your Vehicle for Success in Real Estate

Investmark Mortgage

Mike will briefly highlight his background and experience in real estate as an investor. He will then address the 5 benefits of using hard money, and compare and contrast hard money loans for rentals, rehabs to sell, and transaction based loans. Plus much more....
profilepictureNathan Long 
How to Finance your Real Estate Transactions using Private Money from IRAs

Quest IRA, Inc. 

As we all know, the banking industry took us for a ride in 2008. Now is the time to bypass these systems and become more creative with our own personal investments and financing. We need to take control of our own future and retirement.
profilepictureNathan Long 
Top Tax Free Investment Strategies with Nathan Long

Quest IRA, Inc. 

PROFITABLITY is a word every investor can relate with. And to become more profitable with your investments takes adequate planning. This includes planning your investments in a way that they incur the least amount of taxes possible.
profilepicturePhil Sanchez 
Hard Money Basics: A Real Estate Investor’s Guide to Using Hard Money Financing

Bay Mountain Capital

• What is Hard Money? • The Right Situations for Using Hard Money • Hard Money Loans versus Conventional Financing • Single-family and Multi-family Residential Examples • The Importance of the Exit Strategy • What to Look for When Choosing a Hard Money Lender
profilepictureRay Sasser 
Buy and Hold Strategies



As a newbie in the late 80s, I learned the power of a bad real estate market. We not only survived the worst market in decades, we prospered. We were lucky, we didn’t know any better. Not only did we learn it was the best time in our life to buy Real Estate, we also learned the late 80’s made more millionaires because they knew how to buy and hold.
profilepictureScott Blair 
Finding the Money



Description coming soon!
profilepictureScott Blair 
How to Use the Money



Description coming soon!
profilepictureScott Carson 
Note Buying for Newbies



Learn how to cash in on the over 15 million homes that are upside down across the country and how to control millions of dollars in residential and commercial real estate by buying non performing notes direct from banks and hedge funds.
profilepictureSensei Gilliland 
Learn to Flip or Rent Cash Generating Properties



Details coming soon!
profilepictureStacie Meeker 
Networking to Success



Networking is the Link to Everything you Desire in Life. It’s not just as simple as joining a networking club and attending meetings. It is important for you to learn how to make the most of your time by leveraging it with other people.
profilepictureTim Norris 
13 Insurance Myths for the Real Estate Investor

National Real Estate Insurance Group

\\\'13 Insurance Myths for the Real Estate Investor\\\' is a mini tutorial on how residential real estate investors can better use insurance to mitigate their risk and protect their assets. It is informative without being \\\'pitchy\\\'
profilepictureTom Henderson 
How To Get Rich Using Notes and Seller Financing: 20 Ways to Use Notes to Buy and Sell Property



Seller financing can provide very lucrative techniques to both buy and sell real estate if you know the principles of evaluating your investments. No matter what the economic condition, seller financing is a profitable, time tested method of investing in real estate
profilepictureTony Martinez 
Learn the Blueprint for Success of Note Investing

Asset Ventures, LLC

Discover the Secrets the banks don’t want you to know. Learn how to make Money and work Less. Take advantage of this Unique Opportunity in this real estate market with Very Little Money, No Credit and No Limit to how much Money you can make.































































































































































































































































There will also be vendors participating with booths for you to visit in between classes, including the real estate investment firm that is second to none in the DFW marketplace.  To meet them please click on the link: http://dfwinvestmenthomenews.blogspot.com/2013/01/investment-real-estate-firm-making.html .  If you are interested in avoiding a long line and would like to schedule a meeting with one of the associates, please click on this link: http://dfwinvestors.com/investment-real-estate-firm-is-looking-forward-to-the-upcoming-rei-expo-in-hurst/ and provide your contact info.  An associate will contact you to provide a meeting time.
I look forward to meeting all of you there!  Don't make the mistake of missing this event.  If you plan on buying real estate investments this year, The REI EXPO is an absolute must!