Housing Starts

Housing starts have traditionally been a lagging indicator for the real estate market but it is a delicate balance at best. On one hand the population continues to grow even as older homes become obsolete. Data recently released by HUD indicates the number of housing starts at the end of 2008 were a mere 905,000...the lowest in recorded history. In fact, the last time housing starts approached this level was in 1975...since then we've added several hundred millions to the population. It should also be noted, the late 70's and early 80's were marked by rapidly rising interest rates and tremendous price jumps in the rental market. Short sale investors should take note and position themselves for potential gains. Remember, history may not always repeat itself but it often rhymes.Not Privately BuiltFor those that point to private builders as possible rationale for the low number of housing starts, it should be noted the number of new privately owned housing units completed has also fallen to one of the lowest rates in recorded history - barely topping 1,119,700 by the close of 2008. In contrast, 1982 recorded the absolute lowest number of private completions with only 1,005,000 yet again reflecting a higher percentage of the total population.Not ManufacturedForget manufactured homes - sales are so dismal the entire industry is facing possible ruin. In fact, sales and shipments are so lackluster they are but a fraction of former years with a mere 82,000 units shipped in 2008. Compare to 378,000 ten years ago, it's easy to see manufactured homes are not picking up the slack when it comes to affordable housing alternatives.Bottom Line: Although the number of delinquent properties and shadow inventory continue to rise, early indications seem to point toward a day of reckoning in the future. Once existing inventory is purchased, expect a significant lag time to meet growing demand. Currently distressed homeowners have reduced expenses, moved in with family members and made other temporary arrangements in the hope of "riding out the storm" but short term solutions will eventually give rise to the need for permanent housing. The statistics speak for themselves, inventory is no longer growing sufficiently enough to meet long term need. Position yourself for profitable opportunities both today and tomorrow by using short sales to build a long term portfolio from the proceeds of short term profits.

House List Prices Down 1% in December

Altos Research’s listing price index declined 1% in December and 1.4% during Q409, but the 10-city composite price index was up 5.2% for the year, the company said, adding it projects asking prices to continue to decline during the winter 2010 months. The average listing price decreased to $494,426 from $499,267 from November to December. The index took a bigger monthly drop in December than it did in November, a result of the season decline in sales activity, Altos Research said. Miami was the only market of the 26 that Altos Research measures that experienced a gain in listing prices. San Diego and Salt Lake City experienced the greatest listing price declines, down 4.3% and 3.5% respectively. Inventories also declined in 24 of 26 markets, the largest drops in Boston and the California markets of Los Angeles, San Francisco and San Jose. New York (2.1%), and Phoenix (0.7%) experienced the only increases for the markets covered. The 10-city composite experienced a 5.1% decrease in listing inventory. All markets except San Francisco (99 days) had a median days on market of 100 or more days in December. Miami had the slowest turnover with a median of 247 days, more than eight months. The days on market for the 10-city composite was up 8% to 166 days. The Altos Research study includes existing single-family homes and does not measure condos, town homes or new construction. Each market measured uses results from Census Bureau Metropolitan Statistical Areas (MSA).Now on to our real estate investing educational section...In the Know...Startling Starts & Other Frightening FactsInformation is power so it should come as no surprise that savvy short sale investors make a point of staying in the know. Today the ShortSale blog is reporting on startling starts and other frightening facts that should motivate even the strongest procrastinator to begin shopping for short sale deals in earnest.

Questionable practices by banks on second liens?

Diana Olick of CNBC has exposed an alleged practice by banks to recoup second mortgages by demanding cash, off the HUD settlement statements, from either real estate agents or the buyers in short sales. Olick says she has personally heard a recording of a phone conversation between a short sale real estate agent and a second lien lender, during which the second lien lender clearly asked for cash outside of the settlement and threatened to kill the deal without it. "AGENT: Well yes, I don’t want to lose my license, go to jail, I mean, I have to sign… LENDER: You're not going to lose your license - we have plenty of realtors who do this, who actually understand how this whole process goes - and they realize that OK, if I want to get this done, this will take place." When asked about the practice, these are the replies from three of the biggest banks: JP Morgan Chase simply answered, "No Comment," Bank of America denied the practice, and Citi 's reply was interesting: “We work very hard to help distressed homeowners find solutions for their financial challenges. In our attempt to amicably resolve the debt, we will generally negotiate a reduced settlement with the homeowner in order to release a second lien. Unlike some lenders who refuse to reduce the payoffs on second liens, we choose to reduce the payoff amounts in some situations to assist the borrower. We do not provide instructions to settlement agents on how to fill out the settlement statement or any other closing documents, and we certainly do not require settlement agents or any other parties to violate applicable laws."

President and Democrats trying to whip up populism in Massachusetts

Democrats and the White House are scrambling to salvage the special U.S. Senate election in Massachusetts by trying to whip up a populist furor over banks. Amid reports that financial institutions bailed out by the government are enjoying healthy profits and paying generous bonuses, and as a bipartisan commission began hearing testimony on banks' role in the economic crisis, Senate candidate Martha Coakley (D), Vice President Joe Biden and others used the issue to portray Ms. Coakley, who is vying to succeed the late Edward Kennedy, as tough on bank executives and Republican Scott Brown (R) as coddling them. This sort of anti-bank populism was popular in the 1930s by demagogues like Father Coughlin, but rarely has a president engaged in this sort of bareknuckle politics to save his agenda. Polls show declining voter enthusiasm for Mr. Obama's health-care plan, and Brown has campaigned on a promise to provide the 41st GOP vote to secure a Senate filibuster to scuttle a health-care bill. Democratic strategists concede Mr. Obama's support in the past for a Wall Street bailout has fueled voter anger, particularly among conservatives and supporters of the antiestablishment Tea Party movement who are pouring money and volunteer hours into Mr. Brown's race. With the bank tax, "we can take populism back to our side," a Democratic Party strategist said. Mr. Brown he opposed the tax because it would most likely be passed on to consumers through ATM fees, among other things. He said banks would have to pay a hefty tax rather than use the money to extend much-needed loans to small businesses. "If you're having an uphill battle selling health care in a blue state like Massachusetts, that should send shivers down the spine of Democrats looking at races across the country," said Brian Walsh, a spokesman for the National Republican Senatorial Committee. A new Suffolk University poll finds Republican Scott Brown leading Democrat Martha Coakley, 50% to 46%. If Brown wins, ObamaCare dies. He would be the 41st vote to prevent any compromise legislation from coming to the floor of the Senate.

More foreclosures coming

Number of long-term adjustments completed under the president's foreclosure prevention plan rose to 66,465 at the end of December, or 7.4% of all trial modifications started, up from 31,382 a month earlier. Another 46,056 modifications are pending borrowers' final signatures, according to Treasury statistics released Friday. Another 48,924 were denied permanent modifications, mainly because they did not make their trial payments on time, did not hand in the needed paperwork or did not meet the program's criteria. Meanwhile, the number of delinquent homeowners in trial modifications rose to 787,231, up from 697,026 a month earlier. Housing experts remain concerned that the rate of foreclosures still outpaces the help homeowners are receiving under the program. A record three million homeowners received at least one foreclosure filing in 2009, according to a RealtyTrac report released last Thursday. A lot of borrowers are too far underwater or don't have enough income to qualify for a permanent modification, said Celia Chen, senior director at Economy.com. Others will not be able to provide all the documentation needed. Administration officials said they continue to review the program to make sure it is helping those in need, Chen said she doesn't think there's anything the government can do to keep these borrowers in their homes. "As more of these loans fail to make it to permanent modifications, a lot will go back on the market as foreclosures and that will depress home prices," said Chen, who expects home prices to fall another 10% by the third quarter of this year.

flip REOs andshort sales

It changed everything.In November, we created the means for you to flip REOs andshort sales beyond one day - even if lenders wanted you tohold them for 10 - 30 days... or longer.We opened as many apprenticeships as we could.Unfortunately, every single one sold out fast. And our conference in Las Vegas last month was packed.No wonder. Our FixAFlip solution cleared the way foryou to find and flip a property, fast - no matter HOW longthe bank wanted you to hold it... ...even if you had no capital, the worst credit on theplanet, or even a recent bankruptcy. Let me tell you, we made lots of investors tons ofquick cash. Too bad it filled up so quick.**********************But Now The Good News:**********************We're bringing it back! Fix-a-Flip funding is going to openup once again, with even more updated fast-flipping strategies, and new partnerships with capitalproviders.We've had many trial runs, and in this review stageit has proved this to be the hottest earner in real estate investing today.Go here to get what you're missing out on in a fr-eewebinar:https://www2.gotomeeting.com/register/844637394It's 100% legal, and 10,000% profitable!Just think:* No more worrying about "seasoning requirements," like Bank of America's 30-day holding period. * No up-front capital - the deal qualifies, not you. It's literally: no money, no credit, no problem! * No more fears about getting tied up with loans from hard money lenders that require personal guarantees. Truth is, you're going to be unstoppable. Just be one of the next 50 people to register for this fr-eeevent - sorry, we have to limit this one, too. It dilutes ourquality if we take too many!So sign up now for tonight's webinar at 8:30 PM ET, 5:30 PM PST:https://www2.gotomeeting.com/register/844637394And I'll see you there - at the top!

Commercial realestate business

The 3 profit centers in the distressed commercial realestate business are awesome. You instantly get a Proof offunds letter for $5 Million that you can use for your owndeals or you can use to play matchmaker with other investorsthat have commercial loans coming due or need financing tobu'y distressed commercial deals like commercial shortsales, REO’s, or other distressed properties that have upsidepotential.All you have to do is find the opportunit'y and send it tous and we’ll do all the work. There are more opportunities outthere than we can handle on our own and we’re looking forpartners to bring us these opportunities in your localmarket. You make huge finder’s fees (points), monthly cashflow (int. rate spread) and huge chunks of cash later(Equity participation). We have a nationwide network of buyers for all of yourdeals! This is a once in a lifetime opportunit'y. The last timewe saw a distressed commercial market with as almost as manyopportunities as we have right now was during the savingsand loan crisis. The crisis we are in now is BIGGER andit’s your turn to get rich and set yourself up for the rest ofyour life! Join me tonight: http://www.dcfawcett.com/go Talk to you at 8:00 pm et tonight, DCPS. One of the questions I got last week was: “Can I do this in my self-directed IRA?” The answer is absolutely YES you can. That is covered indetail in the training manual and the DVD’s. I’m goingthrough the training manual and DVD’s myself and this System is unlike anything I’ve ever seen before. There is so much profit in this business and you absolutelydo not need any cash or credit of your own to do thesedeals. If you are completely broke or in debt like I waswhen I got started, you can quickly turn your situationaround by using this system starting NOW. You are simply finding deals and playing matchmaker andonce you have the knowledge, you’ll be unstoppable. These dealsare all over the place. You just need a little bit oftraining, access to our hedge fund’s private money to dothese deals, and our secrets we have for finding anunlimite'd number of these opportunities. Get access to our CASH here:

MASSIVE dollars

Since we announced our content-only social media call, wherewe explain the secrets to Facebook, Twitter, YouTube and others, we’ve been FLOODED with signups. The first batch of openings wentright away. Seems like everyone knows that the Short Sale Kid and I are famous for making money off of Facebook, Twitter, YouTube and other social media outlets. So we had to go get another bank of lines, just for thiscall. But it’s worth it. Because I want you to understand how touse social media to make money - lots of money - and nearlyeveryone is doing it wrong. Let me show you how to generate MASSIVE dollars, with little competition, on this fr-ee call this Saturdayat 1 PM ET, 10 AM PST:https://www2.gotomeeting.com/register/752218650And when I say fr-ee, I mean absolutely no cost. It's 100% content. You couldn’t buy something if you wanted to...My reason is that you’re a loyal reader... and I want tosee my people doing this right, when everyone else isscrewing it up royally. Here’s just some of what you’ll learn:* 5 top social media sites – the others are a waste of time. Think you know which five? You might be surprised* Setting up a Facebook page the right way – get this onewrong, and you’ll spend hours needlessly, and not makesquat!* How to localize your social media – this one really grinds me – do your realize how many newbies living on onecoast waste time with leads from another coast? This willlet you concentrate your efforts on your local market,and multiply your efforts dramatically By the way – no one else is teaching this stuff – very fewknow it to begin with, and even fewer have our credentialsto be talking about it (who else in the real estate spacedominates social media as much as we do?).Get it here, exclusively:

Real estate investing career takes off?

Is 2010 going to be the year that your real estate investing career takes off?Let me make that happen for you! I have a special training session scheduled this week. It's called: "How To Make Millions Buying and Selling Real Estate Using the Internet."Click Here To Register Now:https://www1.gotomeeting.com/register/250666129onTuesday, January 5th at 8:30 PM ET, 5:30 PM PSTHave you noticed how some people seem to make money effortlessly? Guys like Trump have deals flowing their way all the time... and they simply pick and choose the best ones.Maybe it takes a while to get his skyscrapers and helicopters, but the real key to his wealth is available RIGHT NOW, to YOU! It's called "Proven Systems."Our free training session is all about the systems you can "plug in" today, to have leads streaming into your phone and email tomorrow. You CAN be a "Mini-Trump" in 2010, complete with deals coming your way, and systems to handle all the details. We'll show you how onTuesday, January 5th at 8:30 PM ET, 5:30 PM PST:

FR*EE Real EstateInvesting

If you missed this week's training session then you not onlymissed out on all of the AWESOME information that wasshared, but you also missed out on the FR*EE Real EstateInvesting software that we gave to everyone who attendedthe call! Lucky for you I'm a nice guy, so I'm going to give you onelast chance to claim your fr*ee software. I'm having anEncore Presentation TONIGHT, Wednesday, January 6, 2009 at8:30 PM ET, 5:30 PM PST: Click Here To Register Now:https://www1.gotomeeting.com/register/821527808 Do you live in a super-competitive market where investors mob every foreclosure prospect? Are "We Buy Houses" signs everywhere in your town? Is it tough to find the time to focus on real estate investing when you have a day job?If you answered "yes" to any of these questions, you can't afford to miss this webinar! That's because there IS a way to use the Internet to save you time and make you big profits in real estate.We'll reveal the 11 things your real estate investing system MUST have in order to attract real estate deals.We'll discuss what to do after you get a lead, to make sure you turn that lead into a sale.Google has roughly 24 million people searching for ways to stop foreclosure everyday nationwide. We'll reveal the secrets to getting those motivated sellers in your area calling you! (Hint: It works FAST.)Remember, this call is FR*EE. Just show up 5 minutes early to secure a line and I'll see you there!

Short Sale Business.

We had an awesome training call last night. We’ve received so many emails so far telling me how enlighteningand beneficial the training was. I taught 100% of thecontent. If you missed it, I am doing it again tonight at 9pm ET.This is your last chance to register for my Live EncoreTraining tonight. I am teaching 100% of the content. In this training, you will discover how to avoid making the kinds of mistakes I made, and the kind of mistakes countless other investors make - that often mark the end of your investing career.In fact, there are 5 mistakes investors make that causethem to fail in the short sale business.The good news is, these five mistakes can easilybe prevented with little effort.When you attend this training, you will discoverhow to maximize your incom'e in 2010 and laugh all the way to the bank while your competition will be simply trying to survive.I also included a special section on time managementsecrets I’ve discovered from working short sales inthe trenches over the past 7 years.

Foreclosures continue to Skyrocket

By now ...you've noticed how foreclosurescontinue to skyrocket....and short sales continue to dominateresidential sales.Some 67% of home sales are now distressedproperties!Okay, so why is that important, and whydo we, as investors, need to be involved? Because there has never been a betteropportunity to find real estate to wholesale- to quickly flip for a big profit than now!Truth is, you could throw an apple outyour window, and either hit a home headedinto foreclosure, someone who's home willsoon be headed there, or someone who's gota close relative with a troubled property.And here's the best news yet - you don'thave to have great credit or thousands ofdollars up-front to get started. You haveso many opportunities to pick from...it'spractically raining distressed homes nowadays!And learning how to do it is simple. Just gohere and find out how people with little orno experience can get wealthy:Click Here To Find Out More InfoIt's like a second gold rush. There are somany houses begging to be flipped, you canbarely walk down the street without trippingover them!And I've collected some of the most lucrativestrategies available from the hottest houseflippers making the top dollars today:* Mike Collins, who rose from a waiter tobe ranked among the elite of house flippers -after rapidly reselling some 700 properties,and building an empire of 70 high value onesfor a permanent portfolio!* Steve Cook, whose rose from bankruptcy toconsistently pocketing $8,000... $10,000...$15,000 or more per deal! And I'm talking abouta guy who flipped over 100 properties his firsttwo years in the business! And in today'smarket, you could do more - WAY more! * Than Merrill, star of A&E's "Flip This House"- reveals insider secrets to how he's flippedover 350 properties, and how he's now doing asmany as 9 - 10 high profit deals per month! The money's out there. All you have to do isknow a few simple strategies to get your share.So come on over and see how to get a fast start.Click Here To Check It Out For YourselfBut don't wait. This low price may not last. So click on the link now. And I'll see you there!Good Investing,