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Lou Brown:
Hi everyone and welcome back to another installment of our group Q and A where you get more street smart every time we meet. I always get excited about our group Q and A because I am think that you have sent in these questions for a reason because you did not have this information and I always know that knowledge is power. You have probably heard that term before and there certainly could not be truer words said then that. So, we are giving you more knowledge and these questions are going to be answered by the end of our call and it will be a wonderful thing that you will have new power and new gained knowledge because of this.
Lou:
Hello everyone and welcome back to another installment of our Street Smart Group Q and A. This is Lou Brown, and I’m here to give you my words of wisdom on what’s happening in real estate over the last couple of weeks and what’s going to be happening in my crystal ball over the next few months. Also, to answer all your questions that you’ve submitted to us over the last couple of weeks.
Lou:
Hello everyone and welcome back to another installment of your Street Smart Q and A. We’ve had a ton of questions over the last couple of weeks which I hope is indicative of your activity. In today’s market we are seeing so much excitement, so much generation. In fact, we have bought properties at auction over the last few weeks. We have bought properties from people coming in off our signs. We’ve had people coming in off the sign in front of our building. We’ve got signs out all over the county and people are calling. We’ve gotten over 40 leads in the last week just from signs. We’ve gotten a ton of calls from our marketing, the Done for You marketing, where we’re approaching absentee owners, and also, probates, and several different things. We’ve got a lot of excitement going on in our office. A lot of things happening and houses being bought. That’s exactly what needs to be happening in your business, too.
Lou Brown:
Hello everyone and welcome back to another Street Smart installment of our Group Q and A, and I’m very excited to report to you as we do a bimonthly basis what the market is doing and right now the market is tumbling. According to the Associated Press, Standard and Poor has reported that home prices tumbled by record amount. Yeah baby. This is good news. A wildly watched housing index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter. Standard and Poor’s Case US National Home Price Index tumbled a record 15.4% during the quarter from the same period a year ago. The monthly indexes also clocked in record declines. The 20 City Index fell by 15.9% in June compared with a year ago, the largest drop since its inception in 2000. The 10 City Index plunged 17%, its biggest decline in its 21 year history. No city in the Case 20 City Index saw year over year price gains in June, the third straight month that happened. However, the rate of single family home price declines slowed from May to June, a possible silver lining. The index creators said, “While this is no national turn around in residential real estate prices, it is possible that we are seeing some regions struggling to come back which has resulted in some moderation in price declines at the national level”, said David M. Blitzer, Chairman of the Index Committee at Standard and Poor’s.
Lou Brown:
Good day everyone and welcome back to another installment of our Street Smart Group Q and A where you have the questions and hopefully I have the answers. With 30 years experience I can guarantee you I have a good shot at it. To update you on the current market as I usually do on these Group Q and A calls let me just say hooray, hooray, the government has taken over fanny may and Freddy Mack. These were already ___(27) governmental agencies and over the years the government who had originated these corporations passed them on to private enterprise and remained in some limited amount of control over those two institutions. The government created these two institutions in order to have a free flow of money from the financial markets to back up people giving mortgages. So, it was the thing that created a tremendous housing boon in this country where it was difficult to get mortgages but when they created a back up buying unit to take those mortgages off the originators hands it created a tremendous growth in housing in this country. Now the government has taken them back and the government says wait a minute these private enterprise folks did the wrong thing. Which we all know they did. They bought mortgages they should not have bought. They allowed lenders to do all kinds of strange and exotic lending that they should not have done.
Lou:
Hi everyone. Welcome back to another installment of our group Q and A. Where you have the questions and I’ve got the answers. We’re going to have a great time today. We’ve got a lot of great questions. I want to start with _____.14. He’s got a question that I was going to cover in preview and I’m going to go ahead and read his question and give you the answers based on current market conditions. We got a lot of questions. This particular time about market conditions, so let’s do spend some time on this.
Question:
Let’s start with Feridune on a trust question. He says hi Lou. Hope you can answer these questions. I have 15 four plexis in Nevada and have a few questions about them. What software do you recommend for tracking the income expense of these 60 units?
Question:
Bernardo who says he has a short sale question, how to get the lender short sale approval in a down market when the BPO is higher. Now for those of you on the call who don’t know what a BPO is, that’s a broker price opinion. That’s what the lender has ordered from a agent or realtor to go ahead and tell what the value of the property is and what Barnardo is asking is when they those “experts” in the industry have told the lender what the property is worth and suddenly you come in at a greatly reduced price, what do you do about that. He says, “I sent the short sale package. I negotiated with a lender and the BPO is higher based on the old market at higher prices.
Question:
Let’s jump on in with Carol and Joan Bowser who have a question: Dear Lou, we are so excited about the real estate business. We wanted to learn all we can to help others. Our questions are: How important are short sales in negotiating with the seller? It seems like a lot of additional paperwork and new negotiating skills with bankers.
Question:
I have purchased your study material and it is packed with great information. As you know, it is a lot of information, and I am just getting started. When you talk about real estate, people always say, run the numbers to see if it works for you. What I need is a formula so I can run the numbers. If there is a spreadsheet that walks you through it in your study material, please tell me where to find it. If not, would you please send me one along with instructions on how to make a good decision once you run the numbers?
Answer:
We have got exactly what you need. In your Buying System, there is a form; it is called Property Acquisition Worksheet. Now, that Property Acquisition Worksheet helps you to find exactly what you need. It guides you through all the questions you need to be asking, and all the details that you need to put together in order to determine what is the best deal, and what’s the best structure.
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