ALL ABOARD!

Realtors, hang on for a wild ride…..

There is no doubt that our real estate markets are in a full blown recession. In most real estate markets property is depreciating at 2%+ per month. For example, in California property has depreciated 30%+ this year alone. Even if your market has yet to feel the effects of this massive shift in our economy..know that its coming your way.

Be clear, we are not anywhere near the “bottom”  of this real estate downturn. Markets will get much more challenging for sellers. More foreclosures, more short sales, more depreciation. 2009, 2010 and maybe even 2011 we will see even greater real estate market turmoil….

Nationally our economy is entering into the worst recession of our lifetimes….

……..one of the richest people in the world now agrees with us….

Microsoft Corp. co-founder Bill Gates said the U.S. economy is headed for a “fairly significant recession,” and that the unemployment rate may peak at more than 9 percent. To put that into perspective, our current unemployment rate is less that half that now.

Agents need to buckle down and be financially, mentally and emotionally prepared for real estate markets (and the nations overall economy) to be in a recessive state for some time to come.

Clearly one of the best opportunities in this market is knowing how to easily list and sell Short Sales. Get started now by downloading your Free 7 Part Agent Short Sale Secrets crash course. Instant free download now.

Don’t make the same mistake that so many fellow agents are making…holding out hope that the ‘Clouds Will Clear’ anytime soon. Agents who are waiting for the market to improve won’t be in the real estate business by the time this economic cycle has ended.

Here’s the thing…when you accept the challenge to get your business and personal finances in order you will thrive in this market. Our students know that this is not a sellers market, this is not a buyers market-this is an agents market. Agents who have the skills and knowledge are making tons of money in this market.

How do I know? Well, simple. HREU has literally hundreds of Realtor Coaching clients who are having their best years ever. Yes, they are helping more people and making more money than they ever did in the previous ‘Hot Market’

Learn what these elite agents know and you will experience the success they are enjoying.

Start here….

10 Step System to Thrive In This Market (Same system used by our Superstars)

1. Wake Up. Stop spending money out of habit. For the next week keep a log of everywhere your money goes. Be totally awake and aware whenever you grab for your wallet. Start questioning yourself on every purchase.

2. Know How Much You Cost to Exist. You are spending money every day-even if you never leave your house. Your housing expenses, your utilities, your food etc. Know exactly how much you are spending per month (see point 1) and then divide by 30. That will tell you exactly how much you cost to exist every day. Bet its more than you think.

3. Go Through Every Bill and Question It. True story: We had a Realtor call us the other day asking to enroll in our short sale program. Her challenge, she was broke. We suggested that she should go through all of her monthly bills and question them. Start with your insurance, price shop. Cut back on Starbucks. Is a cup of coffee really worth $3? She did this and found $1800 that she could completely cut out of her monthly overhead. You need to do the same.

4. Drop Your Spend-y Friends. You know who they are. These are the friends who always want to “go shopping.” People who live to spend should be kept at an arms length in this market. Some people see all of their worth in how others see them. Ask yourself if you think this way as well…become aware of your thought regarding your consumption.

5. Stop Thinking of Yourself as a Consumer. When was it that us Americans went from being called ‘citizens’ to being called a “consumer.” You are not what you consume. You are not what you drive, what you wear. Define yourself by your own terms.

6. Track Your Time…Hour by Hour. For the next week, now that you are tracking your expenses, track your time. Keep a log of what you are doing hour by hour for the next week. Be honest with yourself about where your time is going. Here is the thing, chances are you are ‘working’ 8+ hours per day but, only doing things that will result in a pay check for 1-2 hours per day.

7. Pay Off All Your Debts. Imagine what you would feel like if you had no debts. Most agents work because they have to. They have so much legacy overhead. Meaning, they are paying off the luxury bling-bling lifestyle that they may have been living from the past sellers market. Pay that debt off.

8. The More You Learn The More You Will Earn. You already know this to be true. But, man is it ever true for this market. BE the go-to agent in your office, in your market for short sales. Be the local short sale expert. Learn the exact process to take REO listings. You already know REOs are controlling the market..be the agent with those listings.

9. Save Money and Protect It. Now that you are in control of your spending, have paid off your debts…start saving. Simple savings plan system. Take 10% (or more) from every penny you earn. If your Mom gives you $100 for your birthday save $10. You get a commission for $10,000…sock away $1,000. Pay yourself first. When you get that commission check go to the back and transfer 10% into a savings account then pay the other bills.

10. More Intensity vs Simply More Time. Yes, you will have to work hard in this recession. Chances are you will have to work harder now than you ever have to before. But, be careful not to confuse ‘Time Spent Working’ with ‘Instensity’. In other words, focus on what you are getting done during the day vs simply how much time you are spending. HREU Superstars Don’t work in the evenings and Don’t work on the weekends…why? Because they are working intensely durng the day. Are you?

Going forward every agent must know how to list and sell REOs or Bank Owned homes. Get started now by grabbing your FREE copy of our newest book, Agent REO Secrets. Instant free download now.

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With the amount of listings that Fannie Mae hold in those two states, this does not surprise.  We did a online review on Fannie Mae REO Property listings.

Fannie Mae is rethinking how it will handle the tens of thousands of properties being repossessed as the real estate market continues to plummet.

Clearly, one of the best opportunities in this market is being a REO listing agent. Banks and the FHA are now looking for agents to handle the enormous number of REOs that must be sold. There is a free book available for agents looking to get in on the REO business. Download the free book here.

To that end, it is opening two satellite offices, one in California and another in Fort Lauderdale, Fla., to manage and sell its foreclosed properties in those states, said Marilyn Kornfeld, a spokeswoman for the Washington, D.C.-based company.

Nationwide, Fannie Mae has repossessed more than 54,000 homes as of June, exceeding all of last year’s repossessions.

“Forty-eight percent of our credit losses were from four states: California, Arizona, Nevada, and Florida. These states saw the most dramatic run-up in prices, and are now seeing the most rapid declines,” Fannie Mae CEO Daniel Mudd told investors during a conference call earlier this month.

Home prices have cratered in certain markets since the peak. In California, Riverside was down 40 percent and Modesto and Stockton were down 50 percent.

“So, the housing market has returned to earth fast and hard,” Mudd said. “Some signs do offer rays of positive light. Foreclosures actually fell in Michigan. Same-period home sales were up in California. And, as the GSE provide most of the liquidity to the primary market, that market is functioning and a safe center of credit risk; pricing and product is being restored.”

Fannie Mae said it hopes its new offices in Florida and California will reduce defaults and better manage the property it has taken in foreclosure.

Borrowers who took out a mortgage on or before Jan. 1 can apply if they have made at least six payments on their existing loan and they do not own a second home. If their lender goes along with the deal, they can refinance into a 30-year, fixed-rate loan.

They will need to verify that they cannot pay their existing loan without help and that their monthly payments were more than 31 percent of their gross monthly income as of March.

The Congressional Budget Office estimates that the new Hope for Homeowners program could help 400,000 people during its three-year life span.

“But compare that to the fact that we had 300,000 foreclosure filings in the last month alone,” said John Taylor, chief executive of the National Community Reinvestment Coalition, a housing advocacy group. “Have no illusions, this is going to help some homeowners, but it’s not going to solve the foreclosure crisis by any stretch.”

The final participation numbers will depend largely on lenders. The FHA doesn’t make loans directly; it insures loans by private lenders.

In this program, the FHA will insure a loan for only 90 percent of the home’s current value. With home prices plunging, borrowers who have little or no equity left in their homes need the lender to forgive the rest of the debt in order to qualify for the refinancing

Some lenders have resisted doing that in the recent past, preferring instead to lower interest rates or rearrange payment schedules on troubled loans. “Lenders are looking at this as a last resort,” said Guy Cecala, publisher of Inside Mortgage Finance. Of the 369,000 people who refinanced in the past year using a previous version of this program, only 1 percent of them were delinquent, according to the FHA.

Complicating matters is that borrowers who financed their homes using two loans must get both lenders to agree to refinance, even though the second-mortgage lender most likely will not get paid off under this arrangement.

Yesterday, Preston acknowledged that for lenders, the new program “may not be the preferred route in many situations.”

The FHA has received $29.5 million so far to upgrade its technology and hire new staff to handle this program, housing officials said.

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What does it mean when the “American Dream” of home ownership becomes the “American Nightmare”?

What effect will the bank bail out have on Short Sales? This graph estimates that by the end of the year, 15,000,000 Americans will be upside down/ have negative equity in their homes. It also estimates that a very real potential 23,500,000 Americans will eventually become upside down in their homes if the true peak to trough decline reaches 35%. This is a very realistic probability.

Not every homeowner with negative equity will default, in fact many of these homeowners will only be underwater by a few percent. But if we estimate one half of homeowners with negative equity will eventually default, use a 50% loss severity, and a 35% price decline (23.6 million households with negative equity), and use the median house price from the Census Bureau of $216 thousand, we get $1.3 trillion in mortgage losses for lenders.

We have been predicting that real estate short sales would become faster and more streamlined as the housing crisis because a full fledged housing crash. Now that the global economy is under attact we expect to see our prediction coming to reality over the next 90 days. Fellow agents, get ready….take as many short sale listings as you can. The only way to slow the tsunami of foreclosures is short sales and…the goverment knows this.

Fellow agents, learn the exact step by step process to build your short sale business. Instant free download of our 7 part Agent Short Sale Secrets crash course.

(Source of graph: Calculated Risk)

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Ok, before you watch this TRY to keep an open mind. YES, this is political…and I will warn you right now if you are a Democrat you won’t like the content of this video. We are Republi-Crats meaning..we see things from both sides. I am posting this video because it does a great job to explain the history of the housing mess. WARNING: Not Bi-Partisan in any way…YOU HAVE BEEN WARNED!

Ok, this post falls under the category of “Doom and Gloom”

That is, if you are not already doing (and loving) short sales….

If you are not already taking REO listings…

Reports like this one can be down right depressing.

The simple fact is that in this market there are two kinds of agents. Those who have the mindset of service and completely embrace the opportunites THIS market has to offer….

And those agents who are hiding under a rock…

House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month’s credit crisis.

The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.

The housing slump is at the center of the meltdown in financial markets as declining demand pushes down property values and causes foreclosures to mount. Banks will probably stiffen lending rules even more in coming months to limit losses, indicating residential real estate will keep contracting and consumer spending will continue to falter.

“The fact that house prices quickened their slide before the worst point in credit markets hit this month does not bode well,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto.

More Cities Down

Prices dropped in 13 cities month-over-month, compared with 11 in June. Las Vegas saw values fall 2.8 percent in July, the largest decline.

Economists forecast the 20-city index would fall 16 percent from a year earlier. Projections ranged from declines of 14.5 percent to 16.5 percent.

Compared with a year earlier, all 20 areas showed a decrease in prices in July, led by a 30 percent drop in Las Vegas and a 29 percent decline in Phoenix.

“While some cities did show some marginal improvement over last month’s data, there is still very little evidence of any particular region experiencing an absolute turnaround,” David Blitzer, chairman of the index committee at S&P, said in a statement.

Other Measures

Other reports show price declines continue. The National Association of Realtors said Sept. 24 that the median price of an existing home fell 9.5 percent in August from a year earlier, compared with an 8 percent drop in July. The following day, the Commerce Department said the median price of new homes fell 6.2 percent in August from a year earlier, following a 4.6 percent drop the prior month.

Sales of previously owned homes fell 2.2 percent in August from the prior month and were 32 percent below their historic high reached in September 2005.

Clearly the greatest opportunity in this market is taking knowing how to successfully listing and closing short sale listings. Get started now. Download your free 7 part Agent Short Sale Secrets crash course. Instant free download now.

Yesterday the stock market fell by nearly 800 points!

But did you notice that the price of oil fell 10 bucks?

Gasoline prices fell sharply. I mean very sharply.

In the next 30-60 days, we will experience a lot lower prices at the gas pump.

The prices of grains fell. The prices of everything fell.

So you’ll pay lower prices at the supermarket.

That’s GREAT news!!

But did the media talk about that? No. They are all about bad news bad news bad news.

The bailout failure was a triumph of democracy for a change. Great news for taxpayers.
Guess what….our representatives actually listened to us….

In an interview one Republican Senator said that he had to vote against

the bill because he has been receiving calls and emails telling him 100:1 not to vote for it.

And the measly drop in stock prices…the headlines today…hey, who cares. I own a bunch of stocks and last time I checked, they go down as well as up.

Haven’t you found that you are better off if you simply ignore the news? How about this…for the next 30 days have 100% Media Free Lives. Challenge yourself…no TV, No Radio, No Newspapers..nothing. No Media.

Think if you clear your mind of the media clutter you will have a better mindset?

Newspaper and television reporters are not the brightest people. And they are negative people by profession.

Do you know that good news doesn’t sell? Bad news sells. So we all go around the day with bad news everywhere, including what plays in our heads.

I don’t want bad news to play in my head. I want good news. I make my own news. I meditate and talk to myself with positive self-talk. And I don’t pay attention to the news headlines and take it seriously.

Prices of houses and food and gasoline and oil are falling and that means we will get back to a reasonable price level.

The media are mistaken: prices falling is good news.

The sooner prices fall, the quicker we can get on to recovering from this debacle. The bailout was a disasterous attempt by the Powers That Beto keep prices high.

Congress did one bright thing. They said “no.”

Now, you say YES and grab your free copy of the 7 part Agent Short Sale Secrets Crash course. Free Instant Download Now.

Robin Benjamin-Reno
I have been coached all my career and attended every seminar I could afford and in a matter of weeks Your Coaching has given me the direction and encouragement that allowed me to break through the barriers of tradition and experience to succeed with both my Short Sales and Obtaining a New Divison for REO listings. Thank you and God Bless You.

Patty Johnston-Brentwood, TN
Hi, Guys. I joined the REO program about a month ago. You guys are amazing!

Patty-Nashville
Joined about a month ago. Have gotten 5 BPO assignments and working towards REO listings! Thanks for such a great job of getting us started! Keep up the good work!

Find out now what all the fuss is about….Instantly download your free 7 Part Agent REO Secrets Book. Click here now and grab your free book!

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