Beware investing in real estate far away!

I receive a lots of messages because of my SDCIA email address. I just received one telling me to invest in Detroit real estate. It included the statements, "It's so cheap, you can't lose money." and "So there's almost a 100% occupancy rate in Detroit's rental property market." BTW, run from anyone that says that to you!!!

Those statements are right after we're told that houses can be purchased for $100 (actually they're giving houses away). I like the statistics of a downtown built to house 3 million residents with a current population of 800,000...

I'd suggest that there's housing for the 800,000 and the rest of the properties will remain vacant until things change for the bankrupt auto industry (do I hear bailout for companies whose executives fly to Washington D.C. in private jets?) or Detroit can change it's economic base!

Caveat emptor!

A Big Boost for Buyers Seeking Jumbo Loans
By Kenneth R. Harney

Bank of America, the country's largest mortgage lender, is rolling out a program to finance jumbo loans between roughly $730,000 and $1.5 million, with fixed 30-year rates starting in the upper 5 percent range. The loans will be available through the bank's retail network and also through its Countrywide Home Loans subsidiary.

If you want to read the entire article:
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032001447.html

This is financing for the "death valley" of lending. There's been absolutely no financing for this segment of the market. Now the trick is for the borrowers to get qualified...

For your decendents.

Paul Harvey Writes: We tried so hard to make things better for our kids that we made them worse. For my grandchildren, I'd like better.

I'd really like for them to know about hand me down clothes and homemade ice cream and leftover meat loaf sandwiches. I really would.

I hope you learn humility by being humiliated, and that you learn honesty by being cheated. I hope you learn to make your own bed and mow the lawn and wash the car.

And I really hope nobody gives you a brand new car when you are sixteen.

It will be good if at least one time you can see puppies born and your old dog put t o sleep. I hope you get a black eye fighting for something you believe in...

I hope you have to share a bedroom with your younger brother/sister. And it's all right if you have to draw a line down the middle of the room,but when he wants to crawl under the covers with you because he's scared, I hope you let him.

When you want to see a movie and your little brother/sister wants to tag along, I hope you'll let him/her.I hope you have to walk uphill to school with your friends and that you live in a town where you can do it safely.

On rainy days when you have to catch a ride, I hope you don't ask your driver to drop you two blocks away so you won't be seen riding with someone as uncool as your Dad...

If you want a slingshot, I hope your Dad teaches you how to make one instead of buying one.. I hope you learn to dig in the dirt and read books. When you learn to use computers, I hope you also learn to add and subtract in your head.

I hope you get teased by your friends when you have your first crush on a boy\girl, and when you talk back to your mother that you learn what ivory soap tastes like.

I don't care if you try a beer once, but I hope you don't like it.. And if a friend offers you dope or a joint, I hope you realize he is not your friend

I sure hope you make time to sit on a porch with your Grandma/Grandpa and go fishing with them..

May you feel sorrow at a funeral and joy during the holidays.

I hope your mother punishes you when you throw a baseball through your neighbor's window and that she hugs you and kisses you at Christmas time when you give her a plaster mold of your hand. These things I wish for you - tough times and disappointment, hard work and happiness. To me, it's the only way to appreciate life.

Written with a pen. Sealed with a kiss. I'm here for you. And if I die before you do, I'll go to heaven and wait for you.

Send this to all of your friends. We secure our friends, not by accepting favors, but by doing them.

Bruce Norris appeared on Good Morning America, Tuesday March 24th.

Here it is in print,..http://abcnews.go.com/Business/Politics/Story?id=7156984&page=3

http://abcnews.go.com/gma then click on real estate vultures video.

Thanks to James Harding for providing the links.

Just found some pictures from the 2008 Christmas party.

Here's a view of the "spread".

Here's another view of the "spread".

No spirits were served!

Terri & Luis at the membership table.

George is our membership director.

The Ricasa family. Floriana greets you at the regitration table at every meeting.

The government giveth and the government taketh away!

House slaps punishing tax on AIG exec bonuses

http://finance.yahoo.com/news/House-passes-bill-taxing-AIG-apf-14692580.html?sec=topStories&pos=main&asset=TBD&ccode=TBD

So why did we bail them out?

"I shall pass through this world but once. Any good, therefore, that I can do or any kindness that I can show to any human being, let me do it now. Let me not defer nor neglect it, for I shall not pass this way again!" __ Jerry Lewis

This video is about a real estate home buyer/speculator whining & it a hoot! The video identifies the thought processes that fueled the spectacular rise in the housing market. It's also painful because of the position so many find themselves in today.

"The Housing Bubble bursts on a speculator. Parody using a clip with Hitler as the real estate investor. He bought a house to flip, faces foreclosure, and now wants to get bailed out."

Parody Fair Use of clip. See:www.publaw.com/parody.html

http://www.youtube.com/watch?v=cdQCxyRMhH8

What do you think?

Mike Cantu's presentation from last month is finally finished and will be available very soon.

My friend Tony Alvarez is teaching his first seminar this weekend in smeL.A. He's going to teach everyone how to land that "Whale of an REO broker". They sold out the 100 seats the night it was offered!!!

I've just learned that four people had to cancel. If you're interested contact:

Robyn & Steve Love
Phone 818-678-6269
Fax 818-998-8064
robyn@irca-losangeles.com

It's $297
Saturday March 14th, 8am to 4 pm (registration at 7:15 am)
Four Points Sheraton
5990 Green Valley Circle (at Sepulveda)
Culver City, CA

I will be there.

Our discussion/classified board has a new look. Don't let the new look throw you. We had nothing to do wit it.

Hello! This month we're bringing back one of our most popular speakers, Ward Hanigan. Ward is probably the most knowledgeable expert in the COUNTRY on foreclosures and title holding entities.

On Tuesday Ward will discuss the use of title holding entities when purchasing real property. He will discuss the reasons and benefits for different forms holding title.

Ward is very, very smart and approachable. Last week he helped with a challenge I had. His answer brilliant and inexpensive and something I hadn't used for fifteen years. Ward was right there for me.

Ward is also one of my teachers. His classes are intimate and thorough. Last weekend I attended a gathering of alumni of Ward's classes. It was an opportunity to learn from speakers and from fellow alumni.

Here's Ward's presentation explanation. It's brief but don't let that fool you into believing that his presentation won't be full of information. He'll have lots of information and some lucky individual will win four hours and Ward's valuable consulting time!
--
Presentation title & description:

Use of Entities When Buying Property . . . Especially Foreclosures

Ward Hanigan (www.foreclosureforum.com) has spoken to our club many times. He has 39 years of real estate experience…specializing exclusively in the foreclosure arena for the last 27 years. As a consequence, Ward is one of the most knowledgeable foreclosure experts on the West Coast.

Ward’s talks are always very popular and always germane to the dynamics of the present market. This meeting will be well worth your time.
--
SDCIA meetings are open to everyone. Just show up on the 2nd Tuesday of the month to the Scottish Rite Center at 1895 Camino del Rio South in Mission Valley. No reservations are necessary. Doors open for networking at 6 PM and the program starts at 7 PM.

Everyone's invited to a no-host pre-meeting dinner at Mimi's Cafe, 5180 Mission Center Road, from 4-6 PM. 619-491-0284
--
If you didn't get a copy of book last month of David Finkel's Maui Millionaires book; come & get your copy on Tuesday. I have a list of people from the last meeting that did not receive one so come & get it!
--
The SDCIA is now a group on Facebook! Come join us & say hello.

One of my teachers, Jack Miller, is teaching a class this weekend March 6-8 in Orange County. Jack is one of the few gurus out there I recommend.

Take a took at this weekend's Jack Miller Money Matters course outline and see if you don't agree that there are some new strategies you can learn in three days to help you take advantage of today's tremendous opportunities:

Gauging the Length and Depth of the Housing Bust
When and Why Will Cash Return?
Understanding Where O.P. M. Is, and Who's Got It
Beating the Bushes for Scared Money
Harvesting Equity to Raise Cash
Leveraging Your Cash, or Mine

Understanding How Payments, Timing, and Rate Affect Yield
Learning to Manipulate Terms to Make More
How Collateral Affects Yield
Loan to Value vs. Loan To Equity Ratios
How to Calculate and Price Your Discounts
Finding the Best Deals Ahead of the Pack
Dealing With Distressed Owners and Lenders
Creating Sellable Paper to Raise Cash

Converting Paper to Cash
Who Are "Paper" Buyers? Why?
Who Are "Paper" Sellers? Why?
Middleman Opportunities
Creating Simultaneous Funding

Wheeling and Dealing Without Cash
Selling Before You Buy
Buying, Selling, and Trading House Futures
Creating Credit Without Debt
Using the Other Guy's Cash and Credit

Visualizing a Cash Flow Income Stream
Determining a Note's Remaining Balance
Calculating Yield With Balloon Payments
Interest-Only Notes and Mortgages
Wrap-Around Mortgage Basics
Determining Wrap-Around Mortgage Spreads
How NOT to Discount Notes

Finding and Creating Deals That Make Sense
Finding and Attracting Equity Partners
Using Credit Without Borrowing
Getting Equity Investors to Seek You Out
Investor Discount Buy/Back and Lease/Back Deals

Knowing Who Institutional and Private Buyers Are
Attracting Sellers and Buyers of Paper
How to Mike Money With Defaulted Notes
How to Value and Market "Pieces of Paper"
Double Discounting
Substitution, Hypothecation, and Subordination

Understanding Where "Creative Paper" Fits In
Structuring Creative Paper to Transfer Equity
Cresting Your Own Currency
Buying and Selling With Manufactured Money
Buying Defaulted Notes With Notes
Buying Builders' Inventory Without Cash

Factors That Control Market Value
Occupant vs. InvestorPayor Employment History
Payor Stability
Lien Position
Seasoning
Note Payment History
Payor income and Documentation
Repayment Terms of Seller Financed Debt

Knowing the Cost and Value of Cash
Exploiting Distress, Foreclosures, and REOs
The Down-Side of "Lease/Options" and "Subject To" Deals
Exploiting Bank Distress
Exploring Multiple Liquidation Opportunities

Increasing Value via Loan Restructuring
Loan-to-Value vs. Investment-to-Value
Creating Value via Better Loan Packaging
Title and Hazard Insurance Considerations
Dealing With RESPA

12 Step Program to Jump Start Your Income
Dumping Debt and Building Equity
How to Adapt When the Trend Turns Up
Holding the Winners Long-Term
Surfing the Crest in the Upturn
Putting What You've Learned to Work

In today's economy, by using these techniques, you can rebuild your nest egg in far less time than it took to originally accumulate it; but you don'twant to delay. The current economic situation is changing daily. Once you let today's opportunities pass you by, you may have to wait a generation for a chance to make as much money without money with your own talents and skill.

It will be a very worthwhile class. If you want to go here's the location:

EMBASSY SUITES ORANGE COUNTY AIRPORT North
1325 E DYER RD
SANTA ANA, CA 92705
(714)-241-3800

How many zeros in a billion???

This is too true to be funny...

The next time you hear a politician use the word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR tax money.


A billion is a difficult number to comprehend, but one advertising agency did a good job of
putting that figure into some perspective in one of it's releases.

A. A billion seconds ago it was 1959.

B. A billion minutes ago Jesus was alive.

C. A billion hours ago our ancestors were living in the Stone Age.

D. A billion days ago no-one walked on the earth on two feet.

E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government
is spending it.

While this thought is still fresh in our brain...
let's take a look at New Orleans ....
It's amazing what you can learn with some simple division.

Louisiana Senator, Mary Landrieu (D) is presently asking Congress for 250 BILLION DOLLARS to rebuild New Orleans .. Interesting number... what does it mean?

A. Well... if you are one of the 484,674 residents of New Orleans (every man, woman, and child)
you each get $516,528.

B. Or... if you have one of the 188,251 homes in New Orleans , your home gets $1,329,787.

C. Or... if you are a family of four... your family gets $2,066,012.

Imagine, now $700 billion bailing out banks in the US . That's enough to fund complete medical care for every man, woman and child currently alive in the US for 11 years!! 50 billion to bail out the auto industry???

Washington , D.C.
<>
Are all your calculators broken??

Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax , Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge taxes
Social Security Tax
Road Usage Tax (Truckers)
Sales Taxes
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax upon Tax
Telephone Federal, State and Local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Income Tax
Everything Tax

STILL THINK THIS IS FUNNY???

Not one of these taxes existed 100 years ago... and our nation was the most prosperous in the world.

We had absolutely no national debt... We had the largest middle class in the world.. and Mom stayed home to raise the kids.

What happened?
Can you spell 'politicians!'

And I still have to press '1' for English.

What the heck happened???

Which has more effect on payments, price or interest rate?

My friend Danny Williams of Georgia took time out of hunting for rattlesnakes in Texas to send me this:

Most people would guess price.

“Did you know that even if home prices were to decline 10%, but also during that time interest rates available for home loans were to increase by 1%, your monthly principal and interest payment would actually be higher?”

Of course that statement sent me to my financial calculator. I figured the difference in payments for a 30 year mortgage of $100,000 at 6%, versus a $90,000 mortgage at 7% is less than $1 per month. WOW!!!!

Would you have guessed that? Most people would not.

It reinforces to me why John Schaub has always said, “Every one tenth% of interest is worth fighting for!”

Some people knew that already, but many more learned something here.

Here's a video that I agree with:

http://www.cnbc.com/id/15840232?video=1039849853

It shows CNBC's Rick Santelli and the traders on the floor of the CME Group express outrage over the notion they may have to pay their neighbor's mortgage, particularly if they bought far more house than they could actually afford.

Riverside job available as Housing Authority Manager. I received this from Aaron Norris:

One of our contacts at the City of Riverside contacted me this morning about a high-level job opportunity. The job title is Housing Authority Manager. The position pay starts at $102k with benefits.

The job's main functions:
"Under management direction, to plan, develop, organize, monitor and manage the City's Housing Authority. Within the City's Development Department, the position will manage complex Federal and Redevelopment Agency funded housing related programs and activities within targeted neighborhoods or project areas, involving the following important aspects: affordable housing development/rehabilitation utilizing multiple funding sources to fund housing programs and activities; negotiate, implement and administer complex contracts and agreements; prepare recommendations, reports and presentations, and perform related work as required."

I'm certain it will involve long hours and the job specs are fairly specific but I wanted to pass it along. If you're not interested, you may know a friend who is considering the current state of the economy.

Here's the link to the website: https://cityjobs.riversideca.gov/hr/JobDetails.aspx?Postings=4391

Quick Breakdown of Job Qualifications:

Desired Quailfications: Master's Degree or graduate level course work in related field

Minimum Qualifications: Graduation from an accredited four-year college or university with a Bachelor's degree in public or business administration, finance, economics, or closely related field.

Seven years of progressively responsible administrative or analytical experience in urban planning, real estate sales and/or brokerage, real estate lending, real estate development, housing, redevelopment, community development, community development block grant (CDBG), or a related field.

Experience must include three years in the management of housing related programs and activities with an emphasis on affordable housing and/or first-time home buyer experience or equivalent in housing development.

Possession of a valid, Class "C" License.

Anyway, thought I would pass this on. In light of the economy, I'm hoping this benefits someone.

Me too.