My book report for this week – SHIFT by Gary Keller – a book that is scheduled to be released in the next few weeks – you do not want to miss reading this great book!
Although my book report is very lengthy, please note that it doesn’t even begin to cover the great content. This book should truly help us all wake up the sleeping giant in our real estate business AND provide us with a great understanding of today’s market … and any other market!
Moving Forward,
Kendall E. Matthews
P.s. Want to read my upcoming upcoming book reports? Subscribe to Kendall Matthews' Adventures In Door Knocking by Email
Name: Mike Watson Investments
URL: www.MikeWatsonInvestments.com
Purpose:Their mission statement states "To create and liberate partners by instilling in them financial prosperity, balanced lifestyle, career satisfaction, and freedom by providing world-class education and hands-on participation."
Before I go any further, I'd like to make a few things crystal clear. I've been involved with Mike Watson program since 2005, however I'm not an employee and I don't receive any kind of compensation from them.
I've been to multiple "boot-camps," workshops, and tele-seminars. The most eye-opening programs I attended were the on seller-financing, raising capital, and even a door-knocking event.
This is not a Nouveau Rich or Carlton Sheets, basic-real-estate-information-for-the-masses training courses. Mike Watson specifically tailors his information to appeal to experienced Realtors and real estate investors.
Mike Watson Investing does not offer a plethora of educational programs. When you visit their website, you will see he offers 8 "degree camps" for $16,000 . Yes, this is not a typo. That kind of cost will weed out many of the get-rich-quick types, but not all.
Most of the live events are held in Phoenix, Arizona or Provo, Utah.
Like most things in life, it doesn't work... if you don't work it. Before you whip-out your credit card, be a pessimist... check out the free information on his website and implement those ideas into your practice. If you get measurable results, ask yourself, "Do I really need to un-thaw the Visa credit card from the block of ice?"
Foundation To Success: Mike crafted a clear guide of what he feels are important broad factors to having a profitable project. I have the poster in my office and it reads:
Change From Mike Watson Institute to Mike Watson Investments
Training Programs Are Extremely In Depth
Since the real estate market collapse, I recently was involved in a very intense re-negotiation for an 11 acre land development project. This project would not work if the seller would not only drop his price nearly a half million dollars, but also became a long-term partner in the project.
This deal got done because of my team's deep understanding of seller financing and how to clearly explain terms that everybody wins.
Moving Forward,
Kendall E. Matthews
P.s. Want to read my upcoming thoughts on The Donald Trump Institute? Subscribe to Kendall Matthews' Adventures In Door Knocking by Email
Fannie Mae announce new guidelines for those homeowners who own more the 4 financed properties or would like to buy additional rental properties.
In Announcement 09-02 Fannie Mae stated, “(We) are committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system. Fannie Mae is modifying out current policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements.”
Please be aware, that many lenders have not yet made the announcement as to when they will begin to purchase these loans. This coupled with the possibility of additional tax credits to all home buyers in the Senate version of the Stimulus bill, however could mean big news to the real estate market.
Eligibility Requirements
Eligibility Requirements: If Borrower owns Five to Ten Financed Properties
If the Property is a Second Home or Investment Property 1-Unit
Purchase Max LTV/CLTV 75/75% Minimum Credit Score 720
Limited Cash-Out Refinance Max LTV/CLTV 70/70% Minimum Credit Score 720
Investment Property 2-4 Unit
Purchase and Limited Cash-Out Refinance Max LTV/CLTV 70/70% Minimum Credit Score 720
Underwriting and Delivery Requirements
● The borrower cannot have any history of bankruptcy or foreclosure within the past seven years.
● The borrower cannot have any delinquencies (30-day or greater) within the past 12 months on any mortgage loans.
● Rental income on the subject investment property must be fully documented according to the Fannie Mae Guidelines: Rental Income.
Rental income from other properties owned by the borrower must be supported by two years’ federal income tax returns. Any streamlined documentation requirements must be disregarded and full documentation MUST be obtained.
● The borrower must complete and sign Form 4506 Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return granting the lender permission to request copies of federal income tax returns directly from the IRS. The lender must obtain the IRS copies of the returns or the transcript and validate the accuracy of the tax returns provided by the borrower prior to the loan closing.
● The borrower must have reserves for the subject property and for other properties currently owned by the borrower (i.e., other financed second home and investment properties) in accordance with the guidelines discussed below
● DU Refi Plus loans are exempt from the new requirements.
New Reserve Requirements
Fannie Mae is implementing new reserve requirements that apply to all second home transactions and to investor and second home borrowers that own or have an interest in multiple financed properties. The amount of required reserves varies depending on whether the subject property is a second home or investment property, and on the number of other financed properties the borrower currently owns.
The reserve requirements are as follows:
When the borrower will own one to four financed properties (including the subject property) the reserve requirements are as follows:
● 2 months of reserves on the subject property if it is a second home
● 6 months of reserves on the subject property if it is an investment property, and 2 months of reserves on each other financed second home or investment property.
When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are as follows:
● 2 months of reserves on the subject property if it is a second home
● 6 months of reserves on the subject property if it is an investment property, and 6 months of reserves on each other financed second home or investment property.
Moving Forward,
Kendall E. Matthews
P.s. Want to get up-to-date information as soon as I find it? Subscribe to Kendall Matthews' Adventures In Door Knocking by Email
Joanne Musa, "The Tax Lien Lady" has been on my radar for a long time. I enjoy her communication style, her candor and her honesty and of course, she writes about the industry I love. It was about time that I invited her on to my podcast for an interview.
Show Notes
--Click Here to listen to the audio interview at www.TheInvestmentRealEstateCorner.com--
Moving Forward,
Kendall E. Matthews
P.s. What to read my upcoming thoughts on By Referral Only? Subscribe to Kendall Matthews' Adventures In Door Knocking by Email
The beauty about real estate is there are so many ways that you can invest. You don't always need a perfect credit score and hundreds of thousands of dollars sitting in the bank. To play in the real estate tax lien investing niche, you do need laser-beam focus and pounds of perseverance.
Maricopa County, Arizona is going to give real estate investors the opportunity to earn up to 16% rate of return. The county is planning on having its largest sale of delinquent property-tax liens on record, an estimated $47.5 million worth of unpaid taxes. Last year's auction was $32 million. What do you think the 2010 auction will bring?
Most likely another record.
This area of investing is outside my area of expertise, but I'm going to find out the answer. Here's how. This week I am interviewing Joanne Musa, "The Real Estate Tax Lien Lady." We are going to discuss some basic ins-and-outs of real estate tax lien investing.
However, I do know that if you attend one of the February auctions, you will most likely never be able to get 16% interest rate. Why? Because the lowest bids wins.
--Read more to find out last year's actual average winning interest rates--
Your friendly Phoenix AZ real estate agent.
Moving Forward,
Kendall E. Matthews
P.s. If you want to stay tuned in what I find out? Subscribe to Kendall Matthews' Adventures In Door Knocking by Email
I try to make a $1 from 15 cents. Some days are better than others. Other days, I show folks how to take a retirement account and invest it in something other than stocks (google Bernard Madoff)
Learn Why I Have All These Orange Buttons On My Page? I am Kinda Big Deal on Twitter
Real Estate Investing Information
18 Reasons Why Seller Financing Should Be The First Thing You Should Ask For
Marketing Ideas & Internet Solutions I Use Everyday
Toll-Free Call Capture System -- HassleFree800.com
Warning: Read What Happen To People Who Worked With Me!
The Truth Behind Why I Got Fired From Selling Mortgages in Arizona
Listen to the Kendall Matthews Show
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