About Humble's Atascocita

Are we at the Bottom Yet??

The Federal Reserve as expected cut rates by 50 basis points bringing the prime rate to just 3.5%. Will this help you jump start your investing?? Have your read ‘How to avoid the Top 5 Traps of Short Sales investing'? Maybe you should join read this and then join us as we keep up with the daily news from Capitol Hill about real estate.

If you haven't seen this CBS "60 Minutes" video on the second wave of foreclosures, you need to watch it right now. Stop what you're doing. Go NOW and watch this. And please share it with whoever is telling you that we're at the bottom of the foreclosure mess. We've just begun the second wave: http://www.cbsnews.com/video/watch/?id=4668112n

This year it was estimated that 1 million homeowners are in foreclosure...this video shows that we're looking at 8 million people in foreclosure in the future. Folks, I wish it weren't true but it is...are you going to continue to ignore reality, or will you face it head on and turn it into opportunity? I suggest making this the biggest opportunity of your lifetime!

The Commerce Department reported that construction of new homes dropped 18.9% in the month of November, pushing new home sales to a seasonally adjusted 625,000, the lowest level since 1959.

Here is some more learning for us real estate investor.

The Triple A Investment Threats

When it comes to investing most people fall prey to three common investment threats which every short sale investor must grapple with sooner or later. If you have been sitting on the sidelines waiting to take the plunge and buy your first short sale property then it is almost certainly due to one of these AAA fallacies:

1. Anchoring. This is the tendency to go with prior experience rather than future trends or new information. Investors easily become anchored in the past without realizing they are putting their financial future at risk by remaining in the same position despite radically altered conditions. While there are lessons to be learned from the past, by definition, investing is a forward looking endeavor. Those who consistently look backward when attempting to navigate a financial storm will miss many opportunities.

2. Availability. This is one of the least understood aspects of investing in short sales. The issue of supply and demand leads many people astray. Common wisdom holds that increased demand leads to rising prices while excess availability leads to lower prices which is absolutely true.

However, the 2nd portion of that wisdom is the knowledge of when to purchase an asset and when to sell. Purchase when nobody else wants to purchase and sell when everyone else wants to buy. This fundamental flaw is why the majority of people investing in any given instrument; whether real estate, precious metals or the stock market will lose money. Instead of buying low and selling high, they buy high and sell low. Now ask yourself...are people buying or selling real estate right now?

3. Assumptions. The final threat is attribution or the tendency to make assumptions about a problem rather than take the time required to understand the root of the issue. For example, at the height of the real estate bubble, home buyers were willing to take on more debt than they could afford because they made the assumption that prices would continue to rise; despite abundant evidence to the contrary. Now the majority of them are making the exact opposite assumption; they believe prices will continue to fall forever and that real estate remains a bad investment. Both positions were inherently wrong.

Real estate has an inherent value which typically prevents it from falling to zero like stocks or bonds. It also acts as a hedge against inflation; as the government continues to expand the money supply nearly every expert agrees long term inflation or dollar devaluation will eventually become a reality even if assets temporarily experience a deflationary period.

So now is a great time to be in real estate. Tell your friends and family to start their own stimulus recovery program today.

See you on the other side!!

Charles Gardner, Real Estate Investor

http://Humble-homz.com

http://humblehomz-re-solutions.com/shortsale.aspx

http://www.GreatCashDaily.com

Real Estate Investing is still an Answer

Tired of being sick and tired of this economy and all the negative news that goes along with it? We have an amazing recession proof investing strategy that we'll reveal to you on our webinar that we host regularly tomorrow. Free webinar

All eyes were on the Federal Reserve Monday as the members of the Federal Open Market Committee sat down to debate whether to reduce rates even further. The decision is due out Tuesday, and most analysts believe that Fed will cut an additional half percent, bringing rates to a historic low of .5%, with prime then becoming just 3.5%.

And no decision yet from the Treasury Department or White House on how to bail out the Big 3 Automakers after Congressional talks failed last week. Bush is considering using the $700 billion bailout package for the automakers, but opposition from others in the government has slowed any announcement of a deal. In particular, Federal Reserve Chairman Ben Bernanke sent a letter to lawmakers last week indicating that he was "extremely reluctant" to lend to the car manufacturers.

Do You Realtor and Investors Hear What I Hear?

During this most festive of holiday season, the sound of "cha-ching" normally rings just as loudly as that of the carolers and party-goers but this year is different. In fact, instead of singing and the sound of cash registers ringing the average short sale investor is more likely to hear wailing and gnashing of teeth from investors both near and far as the Federal Reserve reports that Americans have lost $2.8 Trillion in Net Worth...since last quarter!

Meanwhile, charge-off and delinquency rates for residential real estate loans have reached 1.45 for all banks and a whopping 1.66 for the 100 largest banks. Delinquency rates for residential real estate have now surpassed 5.08 for Q3 of 2008; the highest rate for residential real estate in over 25 years. With the economic news at home sounding so lackluster, it might lead some to seek returns in the foreign exchange markets. So, should potential short sale investors sink funds into global money market accounts or continue to pursue opportunities here at home in the current "buyers market" for real estate?

If the news domestically is hard to hear then consider the global perspective; entire nations are going bankrupt. Iceland, Hungary, the Ukraine, Pakistan and others are either facing bankruptcy or in the midst of a massive bail-out by the International Monetary Fund (IMF). Lest you think "it can't happen here" consider this; Argentina went bankrupt as recently as 2001 as did Russia in 1998. Once an economic powerhouse, Germany has gone bankrupt twice in the recent past including 1923 and 1945. With interest rates in excess of 20 percent

Argentina is attempting to inspire investors to take a chance on investing in their nation; to date, there has been an apathetic response at best.

According to Stephen Jen, a currency specialist with Morgan Stanley, a 1 percent drop in growth could reduce the flow of capital to "threshold countries (those in a financially precarious situation) by more than half! Should this transpire, the IMF would not have enough reserves to "bail-out" each individual nation resulting in Argentina style cycle of events including frozen bank accounts, withdrawal caps, hyperinflation and social unrest. Dare to guess which nation "guarantees" the IMF slush fund should it run dry? Yep-the good ole USA. So much for "Plan B". As these threshold nations face economic disaster, the trading partners and surrounding nations would be exposed to further strain...setting the stage for a global economic meltdown.

Experts are already calling this the most severe global crisis since the Great Depression while others are openly questioning the Federal Reserve about contingency plans in the event of global economic collapse. Plain and simple; fiat currency around the world is risky business even with the prospect of double digit returns. On the other hand, real estate has historically fared well even during dollar devaluation.

Don't let me get you down ... my point in writing this is only to show you that real estate is the SAFE investment right now, and if we have a method that shows you how to buy low and sell fast, wouldn't that be of great help to you? Check this out

See you on the other side!!!

Charles Gardner

http://humblehome-re-solutions.com

Short Sale Riches

Proof: big-time investing with lousy credit, no money

One person's tragedy is another's fortune. President Obama
announced that the economic meltdown is getting deeper and it will get even WORSE before it gets better.

So where's the fortune? Listen up.

There are thousands of investors out there kicking
serious butt, if you'll pardon the slang. I mean,
there are far more opportunities than there are
investors and wholesalers to take them.

And wait until you hear a story about a guy who
just pulled in over $120,000 on his 1st deal
ever, using the method we shared with
him on our webinar. He started out with $30 in his pocket.

We have had people listen to our free webinar, who
have no credit, no money, and go on to start a
six figure business in short sales.

Here's why they've done this and some haven't:

They took action. The free webinar gave them a
direction, and they followed it. So don't miss out
for this webinar, register right now! Free webinar
will be on Wednesday, Dec 17, 2008.

So please grab a seat (there are 30 left) while they're
still open for this Wednesday, 9:00 PM EST. This is
the money making webinar to start your 2009 out right,
so ... no more excuses: Get your spot by clicking here

My inbox keeps filling up with people whose credit scores are embarrassing and hardly a dime to their names.

Yet they are using our methods to find and resell short saleproperties as if they were high-powered real estateinvestors. So why are not all Humble investors doing the same things?

Check out the Free information and webinar. Let's have a good Holiday And a great recession proof 2009.

Charles Gardner

http://humble-homz.com

Short Sales Riches

Some good news for Realtors and investors!! The CEO of Wells Fargo, John Stumpf, spoke at the Goldman Sachs U.S. Financial Services Conference and was optimistic about real estate sales. "We're not at the end," he said. "My suspicion is there is some more to go. But we're starting to see some early signs that maybe we've reached the bottom in housing or close to it." Stumpf noted multiple bidders have come out to make offers on foreclosed properties.

Check out the Magic Money Formula...

Don't worry; I'm not suddenly promoting some financial equivalent of snake oil that promises an overnight cure to all your financial woes. Instead, we are revisiting a formula first popularized by Dale Carnegie and recreating it for short sale investors.

One of the most difficult things many new to short sale and foreclosure investing encounter is the fear or inability to effectively communicate with potential sellers, banks and other stakeholders. Fortunately, it is easy to improve your communication skills with just a few simple steps.

Step One: Engage. It is important to engage your listener rather than informing them. While education is important, it also has a tendency to put people on the defensive if used too soon. Instead, tell your listener an interesting story that demonstrates the main point of your conversation. Be sure to use the word "because." Research has shown people are twice as willing to do what is requested of them when the speaker simply provides a reason...in fact, even a bad reason will suffice although a good reason is even more effective.

Step Two: Direct. The next step is to outline what action needs to be taken. Use the K.I.S.S. approach (Keep it Simply Stupid) and be sure not to overwhelm your listener. Focus on the main objective or point of action needed and be as specific as possible without pushy. Most important of all, don't assume your listener knows of understands your needs. Even other professionals may inadvertently forget or simply not put a priority on your plan of action if not specifically requested to do so.

Step Three: Benefit. The final step is to clarify how the listener will benefit as a result of your plan of action. Make sure you spell out all the benefits in detail beginning and ending with a big benefit. This part of the conversation should be all about "them" - not you. Don't be afraid or apologetic about making a profit; after all, that is a reasonable expectation for a business transaction; instead, demonstrate that this is a win-win situation for all parties involved.

If your short sale investments are not as strong as they could be or if you find yourself hesitating before negotiations, try this formula for yourself. It's deceptively simple yet effective.

For more of these tips check out our FREE e-book-‘How to Avoid the Top 5 Traps to Short Sale Investing'

Charles Gardner

http://humble-homz.com

http://wwwGreatCashDaily.com

Ouch! The Government Accountability Office, along with the Congressional Oversight Panel for Economic Stabilization, blasted the Treasury Department's management of the $700 billion TARP program. The 38 page document noted that "Treasury cannot simply trust that the financial institutions will act in the desired ways; it must verify." The report further commented that the Treasury had "administrated the TARP without seeking to monitor the use of funds provided to specific financial institutions."

And other eyes were on Capitol Hill today as the Big 3 Automakers got a lot closer to sealing a $15 billion bailout package. The package will lead to the creation of a "Car Czar" to oversee the loan grant, in order to avoid the "take the money and hoard it" approach that many banks have taken after receiving their bailout.

More money is headed out the window to the morons at AIG, the folks who 'partied' it up at the St. Regis and seem to have no ability to control their spending. The Wall Street Journal reported that the insurance conglomerate owes other Wall Street firms about $10 billion for because of speculative investments that didn't pan out.

Gross Income Multiplier

Short sale investors are a different set; they take action when others are too cowardly to act. They remain informed while others rely upon others for information and perhaps most telling of all...they crunch numbers. We examined how to calculate the Cap rate of a property in order to determine the price of an income producing property. Although the Cap rate is a favorite among many bankers and brokers alike, another widely used formula is the Gross Income Multiplier.

To calculate the Gross Income Multiplier you will need to divide the asking price or market value of the property by the current gross rental income (or potential rental). For example, let's assume a home is listed for $150,000 with an annual rental income of $10,000. The Gross Income Multiplier would = 15. The higher the better. To provide some perspective, it may be useful to draw examples from other industries and areas. For example, if you were purchasing a publishing concern then you (and the banker) would expect to see earnings worth

5 to 10 time the pre-tax earnings on an annualized basis whereas insurance agencies sell for 150 percent of annual commissions.

Using the GIM provides an excellent method to compare the asking price with industry norms or as a potential negotiation tool when making an offer for a short sale property. It is a good idea to use conservative numbers when calculating the GIM since it does not take extraneous expenses or future tax and insurance rate hikes into account. Repairs, utilities and other considerations may wreck havoc on even the most robust calculations so it isn't a good idea to use the GIM when dealing with older properties or those in need of extensive renovations and/or repairs.

To continue to find out about what's going on at Capital Hill and how it may affect you as a realtor or investor sign up for our free ebook and receive constant daily updates. The ebook: How to Overcome the Top 5 Traps in Short Sales Investing is FREE!! http://humblehomz-re-solutions.com/shortsale.aspx