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When it comes to retirement savings, we all do wish for the same amount of investment freedom that we usually get with our other investments. Traditionally, most of the financial institutions offer limited investment options, starting with stocks and bonds to mutual funds and CDs only. The last recession taught us one thing for sure i.e. not to invest your entire savings in the stock market. So, how do you achieve better control over your retirement savings? Checkbook IRA is the answer to these questions.

What is Checkbook IRA?

In simple terms, checkbook IRA is a self-directed IRA that offers unlimited investment freedom to the account owner. The owner doesn’t need custodian consent for making investment decisions, hence eliminating transaction delays and associated costs in the process.

Understanding the benefits of Checkbook IRA

• Checkbook control: Checkbook IRA is structured in a manner that puts you in charge of your retirement funds. You do not require custodial consent before making an investment. When investing your retirement funds, you can do so by either writing a check or direct wire transfers.
• Unlimited investment opportunities: Saving money in a self-directed IRA with checkbook control allows you to invest in any qualified investment class, starting with real estate, tax liens, tax deeds, mortgage notes, private lending, precious metals, and even private equity. You can achieve true diversification by investing funds in different asset classes.
• Tax-deferred growth: Being a qualified IRS plan, your Checkbook IRA will reap the benefits of tax-deferred growth. For an instance, if you hold rental properties in your account, the rental income will go directly into the retirement account and grow on a tax-deferred basis until retirement. Your investments will benefit from compounding over the next several years. You will pay taxes only at the time of distributions.
• Cost effective: The absence of a custodian can save money otherwise spent on transaction/processing charges while ensuring minimal transaction delays.

As a realtor who specializes in Probate sales I have recently been involved with a number of families were trying to sell homes they thought they inherited or had title to, but wound up in Probate instead. Since the Probate courts are backed up, this can cause delays, heartache, and tension for the families and were problems that probably could have been avoided.

I want to say firmly, I am not a lawyer. I am a Realtor who specializes in selling homes in Probate and this is not legal advice. If you are going to be involved in intra family title changes PLEASE get the advice of a lawyer. This is complicated stuff.

I just want to give you a few examples so you can see that you should not assume anything when it comes to Probate sales. To see First Example click here

3rd Example:

Mom and Daughter 1 own a home together. Both are on title as Joint Tenants and own it equally. They need cash so Daughter 1 gives her share to Mom and Mom gets reverse morgage.

Mom does not make a will leaving 1/2 the house to Daughter 1 and 1/2 the house to each of the 4 daughters including daughter 1. She plans on doing it, but never gets around to it.

Mom dies unexpectantly, with no will, no trust, and only a verbal agreeement with Daughter 1.

Reverse mortgage company tells Daughter 1 she needs to sell the house or pay back the reverse mortgage. Daughter 1 can not sell the house or do anything without Probate Court permission because she does not own the house any more and there is no will or trust.

Daughter  1 calls me and give her a referral to a Probate lawyer who will get paid through the sale of the house since there is no cash in the estate.

Daughter one will ask the court to appoint her Admistrator of the estate then ask the other 3 sisters to give up the half of the equity that was supposed to go to Daughter 1.

Hopefully the Probate Court will agree to all of this. It is not guarenteed.

As you can see, these are complicated issue, made more complicated by actions taken by owners and family members before the owners died. 

The moral, just because you think you have the right to sell a house in probate, that does not mean you do. Be sure and consult a Probate Attorney and a Realtor who understand Probate Sales before you proceed.

If you have any questions about selling a home in Probate or need a Probate Realtor in Half Moon Bay or anywhere else in the Bay area please feel free to contact me.

Marcy Moyer

Keller Williams Realty

Specializing in Probate and Trust Sales

650-619-9285

marcy@marcymoyer.com

www.marcymoyer.com

“It’s not how much money you make that makes you rich, it’s how you spend it.” —Charles Jaffe

With a little bit of research, you will find out that the same piece of wisdom has been coined time and again by several financial experts. While there are multiple factors that define as well as affect your financial wellness, we are going to target the most inescapable one – Taxation. When taken at its face value, taxation may appear as inevitable as possible or in the words of Benjamin Franklin, “In this world, nothing can be said to be certain, except death and taxes.”

However, there are some legitimate ways to lower your taxable income, and put that money to work for your future. If you are an owner-only business or highly paid self-employed professional, these strategies could uplift your financial health drastically.

Self-directed Solo 401 k

Solo 401k retirement plans have gathered a huge following over the past couple of years and rightly so. When used efficiently, it could help you increase your retirement savings by up to ten times of the regular IRA contributions.

Self-directed Solo 401 k: What is it?

It is a qualified retirement plan for owner-only businesses and self-employed professionals.

What do you need to know about it?

Contribution limits: Up to $59,000 in 2016 (including catch-up contributions of $6,000 for individuals above 50 years old).

Investment options: Real estate, tax liens, tax deeds, precious metals, private equity, personal financing, and stock/bond investments.

Participant loan: Flexibility to borrow up to 50% of the account balance to a maximum borrowing limit of $50,000.

Four Ways to Cut Your Taxable Income With a Self-Directed Solo 401 k

1. Ten Times Higher Annual Contributions

With an annual contribution limit of up to $59,000, a Solo 401k retirement plan surpasses regular IRA contributions several times. Further, it comprises of two different contribution types, including salary deferral and profit-sharing contributions, allowing you to achieve maximum contributions quickly.

Salary deferral contribution allows you to contribute up to $18,000 in 2016 along with a catch-up contribution of $6,000 for professionals above 50 years.

Profit-sharing contribution allows you to contribute 20 to 25% of your business income to the plan. The total salary deferral and profit sharing contributions are up to $59,000.

2. Deferred Taxation on Capital Gains

Much like its other counterparts, a self-directed Solo 401 k enjoys deferred taxation, allowing your investments to maximize compounding interests. Considering the vast majority of investment options available under self-directed Solo 401k plans, you can boost your wealth generating potential.

The key is to make sure that your Solo 401k provider offers alternative investments. When you invest with a retirement plan, always target long-term gains over short-term growth.

3. Power of Roth Contributions

High-income professionals are often deprived of Roth saving options in regular IRAs but not in a Solo 401k plan. For self-employed professionals, a Roth Solo 401k plan allows after-tax contributions regardless of the income levels. You can contribute up to $24,000 towards your Roth Solo 401k in 2016.

One of the key benefits of establishing a Roth Solo 401k is its ability to offer tax-free earnings. That’s right; all the compound interest generated by your investments goes directly into your account. There are no taxes on qualified withdrawals

4. Purchase Real Estate Under Solo 401k Plan and Forget Rental Income Taxation

If you are a big fan of real estate investing, a Solo 401k plan could introduce you to an entirely new level of profits/returns. Here’s what you need to do.

Purchase a rental property with a positive cash flow through your self-directed Solo 401 k. It’s entirely the same process apart from the fact that your retirement plan will hold the title of the property and all the expenses/profits will go directly from/to the plan.

By doing so, you’ve created an effective income stream, while saving taxes on the rental income. Make sure to:

• Only use a non-recourse loan for the purchase if needed.
• Pay maintenance cost from the plan only.
• Direct rental income to the plan.

In conclusion, we can positively say that a self-directed Solo 401 k allows you to unlock multiple asset options along with a tax-deferred growth of your investments. It is one of the best ways to create a retirement plan that outlasts you.

Image: https://pixabay.com/en/euro-money-finance-piggy-bank-save-870756

As a realtor who specializes in Probate sales I have recently been involved with a number of families were trying to sell homes they thought they inherited or had title to, but wound up in Probate instead. Since the Probate courts are backed up, this can cause delays, heartache, and tension for the families and were problems that probably could have been avoided.

I want to say firmly, I am not a lawyer. I am a Realtor who specializes in selling homes in Probate and this is not legal advice. If you are going to be involved in intra family title changes PLEASE get the advice of a lawyer. This is complicated stuff.

I just want to give you a few examples so you can see that you should not assume anything when it comes to Probate sales. To see First Example click here

Second Example:

Mom owns home in Pacifica in a trust free and clear after Dad passes. She needs money for daily living expenses so she takes out a reverse mortgage.

Eventually she is unable to care for herself. She takes the house out of the trust and gives half to Daughter 1 as joint tenant so daughter has right of survivorship and right to sell house to pay Mom’s assisted living expenses.

Mom’s health gets worse and she needs to be moved to assisted living. Mom and Daughter 1 decide to sell the house to pay for the finest assisted living they can find.

Mom moves to assisted living and 3 days later dies.

Daughter 1 wants to sell the house which has plenty of equity that was not used to take care of Mom, so she plans on splitting it with Daughter 2 and Son 1.

Reverse mortgage company says “Hold Your Horses.” You had no right to change title of house without our knowledge. They claim:

Reverse mortgages are for senior home owners only, not their children. Daughter 1 should not have been on title because she was not given permission by Reverse Mortgage Company.

Joint Tenancy is an equal partnership between all parties. All partied must be equally responsible for any liens/mortgages on the home. Only Mom was on the loan so she should have been the only one on title. 

You can see the problem here.

I suspect this one ends up in Probate Court with Court Confirmation needed instead of a fast, clean easy sale.

Tomorrow I will give you details on other issues that have come up in my Probate sales.

If you have any questions about selling a home in Probate or need a Probate Realtor in Half Moon Bay or anywhere else in the Bay area please feel free to contact me.

Marcy Moyer

Keller Williams Realty

Specializing in Probate and Trust Sales

650-619-9285

marcy@marcymoyer.com

www.marcymoyer.com

Recently I have been involved with a number of families were trying to sell homes they thought they inherited or had title to, but wound up in Probate instead. Since the Probate courts are backed up, this can cause delays, heartache, and tension for the families and were problems that probably could have been avoided.

I want to say firmly, I am not a lawyer. I am a Realtor who specializes in selling homes in Probate and this is not legal advice. If you are going to be involved in intra family title changes PLEASE get the advice of a lawyer. This is complicated stuff.

I just want to give you a few examples so you can see that you should not assume anything when it comes to Probate sales.

First Example:

Mom owns home in Redwood City free and clear with no mortgage. She has 4 children and wants only 2 of the children to inherit the home. She signs a deed transfer her daughter, not a lawyer, drew up saying that instead of owning the house only in her name she gives 1/3 interest to one daughter and 1/3 interest to one son.

Mom dies. Son and daughter think they inherit the house 50/50, but that did not happeb. Deed does not say all three own as Joint Tenants. That would have provided the right of survivorship. Not only that, but daughter as executor of estate can’t sell the house. The 1/3 interest of Mom now has to go through probate and since there was no will all 4 children get to split Mom’s 1/3. Daughter has to be appointed by the Probate Court as Administrator of the Estate before she can sell the home.

It gets worse. They have to go through probate, hire a lawyer, and pay court costs for 1/3 interest in a house.

The mistake here was not spending the money up front to get advice on how to accomplish Mom’s wish that only two of her children inherit the house.

Tomorrow I will give you details on other issues that have come up in my Probate sales.

If you have any questions about selling a home in Probate in Half Moon Bay or anywhere else in the Bay area please feel free to contact me.

Marcy Moyer

Keller Williams Realty

Specializing in Probate and Trust Sales

650-619-9285

marcy@marcymoyer.com

www.marcymoyer.com

If you're a player or sports fan, you understand the importance of 'extra' effort. When it comes to your financial lives, that little extra could help you grow your savings exponentially. The good news is that the IRS has announced new Solo 401k contribution limits for 2017, allowing you to save extra for retirement.

What are the new Solo 401k contribution limits?

In its latest retirement contribution limits' revision, the IRS has allowed small business owners and self-employed professionals save more for retirement.

New Solo 401k contribution limits for 2017: $54,000 ($60,000 with catch-up contributions for individuals above 50 years); up from $53,000 for 2016.

• Employee Deferral limits: There is no change in the annual employee deferral contributions, staying at $18,000 for 2017, excluding catch-up contributions of $6,000.
• Profit sharing contribution: 20 to 25% of business income.

How does an extra $1,000 make a difference?

Example 1: Joe contributed $1,000 monthly to his retirement account, starting at age 30 until retirement. With an annual interest rate of 5%, compounded annually, Joe retired with a nest egg of $818,698.

Example 2: Michael contributed $1,083 monthly to his retirement account, starting at age 30 until retirement. With the same interest rate and compounding frequency as that of Joe, Michael ended up with $886,650 at retirement.

An extra $1,000 per year helped Michael exceed Joe's retirement savings by $67,952.

Four Reasons to start a Solo 401k plan in 2017

1. Higher contribution limits: A Solo 401k plan allows you to save up to $60,000 in a financial year, making it one of the quickest ways to accumulate retirement savings.
2. Roth savings option: Unlike a traditional Roth IRAs, a Roth Solo 401k plan allows an individual with higher income to save after-tax dollars for retirement. Imagine the returns your investment could gain when invested through a tax-deferred or tax-free vehicle.
3. Alternative investment options: When compared with a traditional retirement plan, a self-directed Solo 401k offers an opportunity to invest in alternative investments. You can invest in real estate, mortgage notes, tax liens, tax deeds, precious metals, private equity, and even personal lending along with the traditional share and bond investments.
4. Participant loan option: A self-directed Solo 401k allows you to borrow up to $50,000 or 50% of your account balance, whichever is less, as a participant loan. This is a crucial feature for small business owners or self-employed professionals that may not qualify for traditional loans.

If you're planning to kick start your retirement savings, a self-directed Solo 401k might just be the right option for you. Seek professional advice when in doubt.

Ok REO - PRO's, check this out!

Our clients have a HUGE appetite.

Yep, you read that right. 100 deals per month.

Two buyers have cold called me in the last 14 days. These buyers gave us some specific criteria: Combined market capitalization of almost $1bln.

The street finds out again that I am interested in doing business with institutional buyers again and my phone starts blowing up!

Here are some notes I made of their acquisition criteria.

Both want off market (aka pre-list) REO's, short sales, inherited property, probate etc distressed SFR's.

• $75k-250k all in price
• For the first client, minimal to no rehab. About 10k total rehab or below. 1980 or newer only.
• 10-14% gross. (annual gross rents divided by acquisition price)

Second client:

• $100k-300k all in price

• 1980 or newer.

• Will look at rehab projects of 50% or less of market value. Example - if ARV of 200k, then no more than 100k in rehab.

• Want good school zones

Geographic footprint
• Atlanta*
• Austin
• Birmingham
• Charlotte*
• Chicago
• Cleveland
• Columbia
• Dallas*
• Greenville
• Houston
• Huntsville
• Indianapolis
• Jacksonville*
• Memphis
• Orlando*
• Raleigh
• San Antonio
• Tampa*

Cities with * indicate second client also wants properties there.

First client

Multifamily apartment buildings $1-5mm
• Class A-C
• Cap rate 4-7%

Here is the way it works, we want distressed properties that we can put under contract that matches EXACTLY what the criteria says.
Send a bunch of garbage and watch the possibility leave before your eyes. Send EXACTLY what the criteria says and buy yourself two new BMW's for Christmas.

Send a non compete so as to protect ACP's position and include us on the purchase agreement so as to joint venture. Otherwise, we will pass.

ACP will joint venture with brokers/agents. Your name can also be on the contract and we will split profits equally. If required, I will review any joint venture agreement you have and execute when the terms state as such.

Now, let's go do 200 deals before Christmas!

R. Glynn Williford

American Capital Partners

731-574-18OO ofc

731-616-5OOO cell

glynn@amcapemail.com

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 All Rights Reserved, BPO Automation Group LLC, © 2009-2016

As a licensed real estate broker and professional Realtor® with an operating brokerage here in Nashville TN, I have experienced my fair share of marginal agents in my time. Truth is, it seems to have gotten exceptionally bad here recently with the Nashville housing market exploding as Freddie Mac ranked us #1 in the nation last month. It seems with this real estate boom, everyone and their granny is coming out of the wood work to help you buy and sell a home for the promise of fast, easy money. Unfortunately, the majority of the agents here in Nashville are either ignorant, immoral or just plain stupid. These marginal agents account for such a great number of practicing agents that they have a very negative impact on the consumer perspective of our industry and essentially myself.

The really sad part of this never ending nightmare is that I am not the only one who sees this problem and yet, nothing is getting done about it.  Even NAR the National Association of Realtors, which is this country’s largest real estate trade group put out a report a couple years ago where they admitted to the fact that…..

“The real estate industry is saddled with a large number of part-time, untrained, unethical and or incompetent agents. This knowledge gap threatens the credibility of the industry”…NAR DANGER Report

 ….so, as you can see, you don’t have to take my word for it. This industry is broken and when your largest trade group, representing over 1 million individuals and over 14,000 local associations comes out and says things like the quote above, bet your bottom dollar, “Houston, we have a problem.”

Just this week, I had a very interesting email conversation that you might find insightful, take a gander below for yourself…..

From: John Doe, Buyer’s Agent
>> Sent: Friday, August 26, 2016 12:09 AM
>> To: JGonzalez@LHRLLC.com
>> Subject: 574 Joyce Ln
>> 
>> I have been trying to contact you regarding the listing at 574 Joyce 
>> ln. I have a client that would like to make an offer on this. I need 
>> lead base paint discl and property cond. discl. as soon as you can get 
>> it to me. I have a cash buyer and we are ready to roll.

From: Jesse Gonzalez, Seller’s Agent,

On Aug 26, 2016, at 8:01 AM,
>> Thanks for reaching out however, this is the first correspondence I 
>> have from you. Not sure why but, the first none the less.
>> 
>> As for disclosures, they can always be found in the multimedia section 
>> of the MLS. If they aren't I apologize however, I did check the MLS 
>> this morning after receiving your email and they appear to be there.
>> 
>> Some friendly advice: When in a market like Nashville, where Freddie 
>> Mac has ranked us #1 in the country and properties can be sold in 
>> hours of them hitting the market, it's not in your clients best 
>> interest for you to wait on communication, forms, or anything else for 
>> that matter before you send their offer in. Just so you know, there 
>> are no statutory or common laws, rule or procedures that would ever 
>> prevent you from submitting a client's offer immediately. Not to 
>> mention, even if there had been, you can always make your clients 
>> offer contingent on those forms, rules or procedures being completed. 
>> The lesson here is, never....absolutely never delay in sending in your 
>> clients offer...for any reason. To do so could be argued that you 
>> didn't represent your clients best interest and at the very least could be
> argued as negligent.
>> 
>> With all that being said, attached are the disclosures as requested. 

From: John Doe, Buyer’s Agent
> Sent: Friday, August 26, 2016 9:53 AM
> To: Jesse D. Gonzalez Jr <JGonzalez@LHRLLC.com>
> Subject: Re: 574 Joyce Ln
> 
> Thank you for your intended guidance but as an experienced and highly
> trained ***** agent I am choosing to represent my buyer in a professional
> manner and we wanted to gather all the facts before making an offer. Thank
> you for emailing me the disclosures and will be sending an offer your way
> shortly. Thank you and look forward to working with you.

From: Jesse Gonzalez, Seller’s Agent,

> On Aug 26, 2016, at 10:30 AM, Jesse D. Gonzalez Jr <JGonzalez@LHRLLC.com> wrote:
> 
> Ok....well, that's good to know however, I wonder what your client would say
> if in the name of "professionalism" and being a "*****" agent you lost the
> opportunity to get their bid in on the home. Not to mention, by doing
> so....it could be reasonably argued you were acting negligently. 
> 
> None the less....good luck. 

Here’s the lesson that Mr. Professional Buyer’s Agent Extraordinaire “John Doe” seemed not to grasp. As a licensed agent, we have a fiduciary duty to our clients. Specifically, that means, we exercise the highest standard of care when representing their interest. It was in this buyer’s interest to get his offer to the seller as quickly as possible however, the buyer’s own agent threw up a road block in the name of his brokerage and professionalism. This road block demonstrates a serious lack of competency as to his fiduciary / legal requirements to present his clients best interest by submitting his buyer’s offer immediately. It’s important to note, his duty to get that offer to the seller immediately, supersedes any and all self-imposed or brokerage imposed internal processes, procedures or for that matter, expectations. I argue that the agent is actually negligent in his duty and opened his client to unnecessary risk this his clients offer would not have been seen and for that matter considered due to the fact that in the meantime, the seller could have been presented a competing offer and essentially make a decision and therefore, his offer would have been…at the very least, held as backup, if not flat out rejected.

Here's the sad part to all this, I am positive the buyer has no clue what his agent wasn’t doing for him and thinks he’s working with the best agent in town…..what a joke.  

Hi everyone,

BPO Labeler is a windows tool I developed to easily and quickly rename photos just by dragging each photo to the corresponding field names - the photo would be renamed and copied to the destination folder that was originally specified. 

You can also access the Price Opinion calculator by clicking on the "Tools" in the toolbar of the application. The price opinion calculator was originally designed for BPO Fulfillment platform but it should work for others as well and I plan on enhancing it upon request since i'm limited which platforms I can use/see.

I would like to know what other tools are currently being used in the BPO business thats makes life easier. If you would like to test BPO Labeler out, you may download it it from the post or contact me. It's free.

BPO Labeler original download link post

I get so much email these days that I dread looking at my mail.

What a waste of time sifting through over 100 junk emails a day, just to make sure you do not miss something important.

Checking spam.

Trying to remember all of your clients email addresses at a glance.

Same story agents?

I opened this email from one of my LinkedIn groups, and was almost ready to hit DELETE, and to my surprise, there were a number of interesting and innovative apps uncovered in this article that I would eagerly check out and use.

I am sharing the apps article with you to see if they will improve your real estate business as well. Anything that becomes a valuable tool and time saver in our business is worth sharing.

http://blog.narrpr.com/product/15-remarkable-apps-real-estate-business/

Check this out &

Make today great.

#FlippinMagicCLE

Is anyone else seeing an increase in REO companies wanting to potentially rehab their property to increase listing price??  The last several years  we are seeing an increase in REO companies wanting rehab bids during pre marketing and even as far as going the route of rehabbing the property and selling home at Subjects top market value.  I have 2 currently being rehab between $18-30k and  have had 4 properties rehabbed this year ranging between $10-35k. The most frustrating thing with this is for 1 the asset companies expect us to dish out the Money for the rehab. I'm in Arkansas so our average home sales price and commissions are smaller on the average than say California or New York. 2nd if anyone has ever dealt with companies that use LPS you know how frustrating it can be to get paid with no complications or delays.3 the subject is a foreclosure and being sold for top market value in its area. Most buyers/investors do not want to buy a foreclosure that you cannot get any equity out of. Is anyone else having to do rehabs as well? Thanks

Probate, trust and inherited properties represent some of the most promising listing opportunities in a competitive market, but this niche is often shrouded in mystery with more questions than answers.

ProbateChatter.com was spawned to provide clarity. This blog site is everything probate marketing and adding a new revenue stream by reaching out to Personal Representatives, trustees, heirs and fiduciaries tasked with bringing the estate closer to final settlement by selling the biggest asset in the estate - real estate. 

Nashville's housing market is due for a correction. Ask any local agent and they will tell you, we have never seen times like this before. My point is, our local market is completely and utterly operating outside of its balanced, healthy parameters. The only time in our history that we saw markets like this, was back in 2006 / 2007. The local housing market correction will be preceded by a national market correction which I do believe will happen towards the end of 2016....if not sooner. So, what's happening?

 All of the measures used to prevent the total collapse of our economy in 2007 during the bubble burst, has done nothing more than further weakened our economic foundation. Sure, you may think I am sounding a bit like the sky is falling but, I have to tell you, I really do believe the Nashville housing market is overly blotted by speculation, lack of inventory, cheap money and greed.

As a homeowner or a potential buyer you need to be aware of this pending correction but, prepare for it as well.

#1: The stock market wipe out: Margin Debt - This measures the amount of money being borrowed to invest. What this reveals is that banks and wall street firms are leveraging their money at record levels. The last time we were this high, was in 2007. Essentially the stock market is going up because people are gambling with debt….not cash. They are borrowing money on credit to invest in the stock market.

#2: Participation Rate: This simply measures the volume of the stock market. Right now we are selling at extremely high evaluations but, astonishing low volumes. So, in other words, even though the stock market is selling at all time highs, very few people are actually investing. The biggest factor for this is because of stock buybacks. Essentially companies are borrowing money to buy their stocks back to increase their share prices even though their profit margins are falling. To make their business look healthier than it really is, they borrow cheap money, to buy their stocks back on debt and increase their share prices. For many companies on the stock market, their high share price has NOTHING to do with them increasing sales or making profit but, how much stocks they can buy back. VERY DANGEROUS.

#3: Price to earnings ratio: The measure of the stock of a company vs. how long it takes to actually a return on the investment. The Shiller PE Ratio is historically 16, right now it’s 27. The last time we saw this was in 2007.

NOTE: if the stock market drops 70%.....that will put us back to our 2009 levels. That will collapse real estate world-wide. Let me explain.

#4: Home Equity Slaughter: On average, prices are up about $40,000 per home. Some areas, are up much greater….100k+. The problem is, homeownership rate is at its lowest level since 1965, nationwide.  So…how is real estate so strong? Over 10 million people lost homes in 2007. This was s huge buying opportunity for private equity funds. In other words, big investment companies swooped in and bought  billions of undervalued / distressed nonperforming assets to drive up prices. We saw Fannie sell HUGE portfolios, worth BILLIONS, to these funds, like Blackstone or “NBS’s” aka Non-Bank Servicers, like OCWEN. They were tasked by this administration to “Save people from foreclosure” or “Preserve homeownership” and that’s exactly what they did but, by doing so, we created a nightmare of a situation where a select few companies own so much real estate, if they flood the market, they can collapse the housing market in a city, over night. Now, you would think that would never happen but, let me just leave you with one, spine chilling thought.

Mortgage rates are at historical lows. In fact, the prime rate can’t get any lower….it’s virtually zero. It’s a fair and valid argument to say, fast, easy, cheap money is causing buyers to come out of the wood work and that’s why housing is booming. With that being said, what happens when those interest rates go up to 6-8%, which is historically what we consider a balanced healthy market? You see, many, many people are getting 30 year fixed rate mortgages and because the money is so cheap, they can buy a bigger, more expensive home because their money goes further. When interest rates go up, that same money becomes more expensive and buyers who could once afford a 200k home, now can only buys a 150K home…..as such, this will account for nearly a 20-40% loss in home values.

Let me put it this way, the fact is, interest rates rise, buyers evaporate. The fewer buyers in the market, home prices have only one direction to go. When those prices start falling, all those private equity firms will begin off loading properties at unbelievable rates to cut their losses.  Don’t think it can happen…..well, HUD is already doing it, RIGHT NOW! That’s right folks, HUD has announced it’s MM3.7 winners and will be releasing hundreds, of foreclosed properties into the markets that are “booming” so they themselves can recoup their losses while the getting is good. Once it gets out that HUD is about to start driving down prices in “over heated” markets…..watch these equity firms start off loading as well. When this occurs, combined by the drop in the stock market this year…..2007 will look like a cake walk. We may be talking 2^nd Great Depression.

Normally I would not complain about someone sending me business but after dealing with 24 Asset Management (hereinafter 24AM) on a number of JP Morgan Chase owned properties I had to file a formal complaint with the Illinois Attorney General's office.  In hindsight I should have reviewed the negative comments on the Better Business Bureau website. http://www.bbb.org/south-east-florida/business-reviews/financial-services/24-asset-management-in-miami-fl-90054792/complaints

To beign with, 24AM classifies the real estate agent as an independent contractor and then proceeds to make demands with deadlines and time consuming tasks.  No compensation is offered except the "promise" of a listing agreement somewhere in the future.  ALL OF THE WORK PERFORMED IN ABSENCE OF A LISTING AGREEMENT IS CONDUCTED AS AN ADHOC EMPLOYEE!!!! and subject to minimum wage laws.1

When the listing does come, it is for a reduced rate with a 35% referral stipulation to 24AM. Ok, no real shocker there as most of the listing referral services require some type of KICKBACK for their involvement.  I say kickback because they are getting asset management fees from the bank or investor as well.  

Has anyone ever worked a short sale with Bayview Financial? After my seller was three years in the short sale process, and two years with buyers waiting to close, the buyers lender needed one more day to close due to TRID requirements. And this was due primarily to the note being sold two times during the process. Buyers were packed and ready to move. Tenants in the short sale house were packed and ready to move. Bayview had the closing disclosures in hand. And Bayview refused to grant one more day. After that, employees of Bayview would not return calls or e-mails from me or the attorney that was handling the short sale negotiations. Buyer beware of Bayview Financial.

You attended a seminar on passive income generation with mortgage notes, learning how to enjoy high returns while sitting on your couch, and you are ready for your first purchase. But, hold on. Is this how you make your investment decisions? There is no doubt about the efficacy of mortgage notes, but you must understand them before buying your first note.

In this post, we’ll look at the basics of a mortgage note and the tax benefits of adding mortgage notes in 401k Solo retirement plans.

What is a mortgage note and how does it work?

In simple words, mortgage note is a legal agreement, involving a lender and the borrower under which, the borrower agrees to repay the loan amount along with interest in a definite period. Every mortgage note must include the names of both the buyer and the lender, descriptions of the property, the term period of the loan, the interest rate, installment amount, any legal protections favoring the borrower in case of a default, and details of previous financing, if any. If this is your first purchase, try to include detailed descriptions of the legal terms of the loan and cover any loopholes in the process. Once a deal is struck, the borrower deposits monthly repayments along with the interest to your account. You can hire a service company to manage the note and send regular payments for a monthly fee of under $100.

What are the different types of mortgage notes?

• Fixed and adjustable mortgage rates: The most common types of mortgage notes are those with fixed and adjustable mortgage rates. As it sounds, a fixed mortgage rate comes with a fixed interest for the complete loan term, and the principal amount decreases after every single payment. On the contrary, adjustable mortgage notes have a varying rate of interest, which tends to be lower initially, and then changes in accordance with the economy.
• FHA and VA loans: These are loans guaranteed by the government and are available through federally approved banking institutions. The credit requirements and down payment terms are strict in comparison with private lenders, although there is a guaranteed repayment, making them an attractive investment option.

Why invest in mortgage note through 401k Solo plans?

Self directed Solo 401k retirement plans are retirement solutions for small business owners and self-employed individuals, offering privileged features such as self-directed investing, checkbook control, and participant loans. According to the current IRS guidelines, a Solo 401k plan holder can invest in a wide variety of investment assets including mortgage notes, tax liens, real estate, and other untraditional investments.

What gives Solo 401k an edge is the tax-deferred growth. You can purchase mortgage notes under the name of the plan, and redirect your repayments into the account, where they enjoy tax-deferred growth until distribution. In case of Roth Solo 401k, the taxes are paid upfront and there are no taxes upon distribution, offering completely tax-free growth.

I have been a huge fan of the site for a while and I have read many of the blogs. However, I don't recall any blogs related to the day to day management of BPO's. I would like to compile a list of BPO hacks (simular to life hacks for BPO agents).  Please share YOUR strategies or techniques adopted in order to manage your time and daily activities in a more efficient way, as a BPO agent.  

For example:  

1. What are the best camera brands and models to use? and Why

2. How to handle unexpected occupants?

3. The Best way to handle subject information while licensed in a "non-disclosure" state.

4. The easiest way to keep track of order payments.

5. Best and Worst times to take drive-by or interior photos.

6. Best and most economical data entry technique/software.

7. Best and worst BPO business practices.

8. Best way to build a BPO staff.

9. Best ways to handle BPO quality issues

10. Share your hacks/ideas/questions...........

Homes for Heroes in Wisconsin!

Homes for Heroes is a national program dedicated to providing extraordinary savings to heroes who provide extraordinary services to our community each and every day, when they buy or sell a home.

Who Qualifies?
-Active Military
-Veterans
-Teachers
-Healthcare Workers
-Firefighters
-Law Enforcement
-Clergy

What are the savings?
Savings will depend on the sales price of the home. As an example, a $300,000 house would receive over $3,000 in credits and discounts from all the participating affiliates and vendors involved.

What does it cost me?
Nothing because it's FREE. There is no cost to you. All costs are covered by your local participating vendors.

Can I buy any home and in any area?
Yes. This is not a government program with limitations or restrictions. This is the private sector giving back simply as our way to say Thank You for all that you do every day.

Are there any other benefits or savings after my transaction is done?
Yes. Through the "Friends of Heroes" Network participating vendors will offer discounts on various other services such as moving, storage, pest, lawn care, plumbing, electrical, cleaning and remodeling to name a few.

Are there a lot of extra applications, forms or some future obligation?
None. The Homes for Heroes Promise is:
-No hidden fees 
-No red tape 
-No catch

How do I find out more?

HeroesInWisconsin.com