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Last month I reviewed an interesting article on The Wall Street Journal website and I learned there is a heavy swell of FHA foreclosures about to hit the market. The article established that mortgage default rates were dropping for nearly all loan types with the lone exception being FHA types of financing. Those default rates had actually increased.

Why you may ask? Well, when the market took a down turn the government put in place tax incentives for first time home buyers and tons of potential new buyers advanced on the market. Most of those buyers were cash poor therefore many were inclined to use Federal Housing Administration financing for the low down payment opportunities. And, in countless states, if a buyer used this financing there were incentives for $100 down payments. Several states still make available this program while others have abandoned it. My mind started to rattle when I began to think about what actually has unraveled over the past three years.

Here is my evaluation. During 2008-2010 the cash strapped buyers ran towards getting their piece of the American Dream: home ownership. Most of those buyers didn’t consider the probability that they may not have a gainful line of employment in 2 years. While most were poised and ready and could actually afford the 3.5 percent down what they didn’t take in to consideration was that the world economy was going to continue to decline. And, plenty of first time buyers that took advantage of the first time home buyer tax incentive are now in the unemployment line. They are defaulting at an explosive rate.

Plus I hear that the government is going to raise the down payment for FHA types of loans. This is really going to hurt our industry. Federal Housing Administration financing was put in place to assist first time home buyers when purchasing a house by offering low down payments. Raising the minimum down payment for these types of loans will put the home out of reach for nearly all new prospective home buyers. It is truly a tragedy in the making. While one person’s catastrophe is another man’s opportunity this will open many new opportunities for real estate investors. Essentially, less competition in the market place will prepare investors to swoop in and pick up top notch deals on homes.

I’m really not sure how all of this is going to shake out in the near future but I can promise you that we are in uncharted waters. My best guess is that troubling times are imminent. If the first time home buyers that purchased homes between 2008-2010 and used fha financing continue defaulting there is going to be a tidal wave of FHA foreclosures coming on the market. This will amplify the inventory of HUD owned homes coming on the market place. I’m guessing HUD will slowly make available these homes a little bit at a time as they won’t be in any hurry to sell. IF they did rush it then it would crash the market. So, look for HUD sales to be the forerunner in real estate sales of the future. No doubt about it!

More about how to be a real estate agent, visit our site for a real estate tutorialtoday.

Often when an agent is selling a HUD they don’t appreciate there are completely different contracts to fill out. Knowing this is essential in advising your client with the most productive contract review process. HUD has specific contracts that are unique to your state standard forms.

How Will Your Buyer Be Taking Title? Line Item #2 on the Housing And Urban Development form asks for how your buyer will be holding title. While in the past this often could be left barren until your buyer reconciles, this has changed and the best approach is to analyze this with your buyer prior to submitting your contract and enter in to the agreement how they’ll be holding title. Common ways of holding title can by calling your local title .

Repair Escrows On Line Item #4 This is a commonly misunderstood area. Most agents/buyers think this is how much escrow costs but it has nothing to do with the “escrow” at all. I’ll make it simple. If using FHA financing you’ll need to check the HUDHomeStore website to see if the home you are bidding on requires a repair escrow. Repair escrows are necessary when using FHA financing. Any repairs required under $5000 require a 203b repair escrow. Any repairs required over $5000 are a 203k repair escrow. Now, if you aren’t using FHA financing then the 203b or 203k area doesn’t apply. ONLY if you are using FHA financing do you need to fill this section out. Even if the property has a repair escrow on it and you are using non-FHA financing (conventional, hard money loan, all cash, other) then you need not worry about this section. Check the box “seller is paying cash or applying for conventional or financing not involving FHA” and proceed.

Earnest Money Procedures on Line Item #12. This line corresponds to the processes and rights HUD to your EMD when your consumer fails to perform. The most misconceived part is that there are two lines on which call for initials and those lines are confusingly close to one another. Time and again, if there are married purchasers on the contract, an agent will have one consumer initial a single line and the other on the following line to the right. Wrong. Confusing for sure. Correct, no! One is a “buyers initials” line and the other is reserved for HUD’s “authorized agent”. Execute both of your buyers initials on the first line set aside for “purchaser”. Be cautious as this will get your contract rejected if you fail to execute these lines properly.

What are some everyday mistakes you see other newly licensed brokers make?

More about how to be a real estate agent, visit our site for a real estate tutorialtoday.

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Wanna get started as a real estate agent or broker? numerous feel that getting their real estate certificate will provide a sure financial destiny when, in actuality, getting your certificate is the first action in a very far-reaching process towards financial liberation.

While real estate is an impassioned occupation there is a lot work ahead once you get your agency. Practically with all online or classroom real estate academy schooling courses there is little information relevant to real world experiences that you will wrestle with. While each state has specific requirements almost every real estate academy has the same basic practical knowledge. Really, there are scarce courses nationwide that take into consideration even the basics of how to fill out your state mandated residential purchase agreement. Why is it that the Department of Real Estate expects new real estate agents to be able to successfully complete a agreement when the forecastable situations aren’t even covered? It doesn’t have to be like that.

Although each state has numerous contracts applicable to sales there is one contractual residential purchase agreement that is the exactly the same throughout the US, no matter where you reside: the HUD-9548 contract. And, that agreement seems to be the one that is the most misunderstood.

First, let me clear away a myth: HUD owned properties are not lower income housing. HUD homes are one to four unit housing that had an FHA insured loan. Simply put, HUD owned properties can be a single family residence, a duplex, triplex or quadplex. The loan maximums for these homes in Los Angeles County California are as follows: Single Family Residence-$729,750, two-family-$934,200, three-family-$1,129,250, four-family-$1,403,400. So, you can see that a nice residence can be purchased in those price ranges. Many new licensed agents ignore HUD homes sales from their daily routine and that is not a intelligent decision. Many licensed brokers are overlooking profitable sales that could expand their bottom line tremendously but simply don’t take advantage of these sales because they don’t understand the HUD process. By simply marketing an additional 3-6 HUD homes yearly one can increase their revenue enormously. In the U.S., no real estate academy will guide you through the HUD 9548 contract and demonstrate how to adequately execute the contract.

While the HUD 9548 contract is the same all over the U.S.A. few realtors take the time to understand how to properly execute these contracts as many are focused on short-sales or bank owned REO’s. Never again make that mistake and exclude this opportunity of a life time.

More about how to be a real estate agent, visit our site for a real estate tutorialtoday.

How To Blog Real Estate and Make Money.

Blogging? What the heck is that? It is basically writing about what you love. This is why I mentioned earlier that you would need to find a niche that you are passionate about as you are going to need to create content i.e. written content, pictures and/or video content.

Got to Gmail and set up an account. Remember, even here you’ll want to try to use your keyword as part of your email address. So try for something like “TeachYourLab@gmail.com” or “YourLabCanSit@gmail.com”. You get the idea.

Once you do that then you’ll need to go to http://www.Blogger.com and set up a “Blogger” account. This will be your “website”, if you will. You can now reference this link below and watch the video, as it will be easier for you to understand if we just walk you through it.

So by now you have a basic understanding of how to set up your “blog”, the basics of navigating the blog and also how to install Adsense on your site. I want to add that, in addition to adding Adsense to your site, you can also find other products to promote on your site. What you want to do is find products that you like or that would be related to your niche visit the site and see if they offer affiliate programs for their product.

What is an affiliate program and how do you get started?

Most merchants have affiliate programs. Essentially, they will allow you to put a link or banner on your site. If someone clicks that link and makes a purchase you get paid a commission. To do this you need to set up an affiliate account with the merchant. (Any reasonable merchant will offer phone support to explain how it is done if you don’t already know. But it is pretty easy and you shouldn’t need too much help to get started.)

Once your account is set up with the product you want to affiliate market then you will be re-directed you to a page that will have banner links and ads specific to their product. The links & banners from within your account will, by default, be embedded with your affiliate code associated with your affiliate account. (So no need to be intimidated by HTML coding.) Scroll and choose the banner add you like then simply copy and paste the code they provide in to your “Blogger” page.

Here is how you do that. Remember in the video when I showed you how to add Adsense? There is another category called “Add a Gadget”? You click add a “Gadget”. A new window will open within Blogger. Then scroll down and choose the Gadget that says “HTML/Java Script”. Blogger will then open another window. All you need to do now is copy and paste the “code” from the affiliate program banners and paste it in to the window where it says “content”. Then hit save and it will install the banner link for you. Hit save and then view the page. You should now see your affiliate banner appear on your blog page. No need to understand or write code. The affiliate code will be the way the merchant tracks who comes to their site. If someone purchases that product through your link then you get paid. Normally, if that person visits a merchant through your link then the merchant will ‘cookie’ or archive that link. So, if the person doesn’t buy the first time and then re-visits at a later date and makes a purchase within say, 60 days, you will be credited for the sale. But those timelines may vary. Ask your affiliate to provide you with their internal policy on “cookies”.

Affiliate sales shouldn’t be confused with Adsense. Adsense pays per click (PPC). PPC revenue isn’t much but does add up over time. Affiliate programs can be much more profitable if you have a lot of traffic coming to your site. So I highly recommend researching and finding products you believe in and promote those on your site. Pick and choose carefully. Don’t just load your site up with tons of ads. The real key is that you must get some “eyeballs” on your page and to do that you must provide interesting, valuable content.

I’m Len. You can learn how to find profitable keywords for any business by attending our webinars. Learn get on page 1 of google and attend a webinar.

According to statistics, 25% of all hud contract transactions submitted get canceled due to licensed agents crudely filling out the contract or missing a deadline for an extension. Why is this? How are you going to disclose to your prospect that they didn’t get their ideal residence because ‘you, as their agent, didn’t know the process?

Throughout the US, HUD contract processes aren’t covered by any real estate academy currently offered. Here is some of what you need to know. Most licensed real estate agents do not understand that the bidding and contract process is completely different from your standard real estate deal. Frequently we have had agents email their state documents when submitting a proposal when, in fact, all the bidding is done on the internet. These deals aren’t difficult. They just require a little extra attention to detail and you must be well versed in how to not only fill them out but also be aware when certain deadlines are and what forms are dictated by HUD to be provided.

Why HUD property sales are the new gold standard for opportunities. Statistic: About 9.1 percent of FHA borrowers had overlooked at least three payments as of December 2009, up from 6.5% in 2008, the agency’s figures signify. The Federal Housing Admin does not make loans but insures lenders against losses. And claims have already accelerated. The agency had to pay out on 47% more loans in October and November 2009 than in the corresponding period a year earlier, according to an Federal Housing Administration write-up. The year 2010 will be elevated according to some analysts.

Why are hud sales the new gold standard for realtors? Two reasons:

* The banks employed incompetent, unprepared Robo-Sign’ers to speed along foreclosures through the organization. Trends show law suits are developing for these deals with lawyers jumping on the bandwagon to represent the former homeowner that was foreclosed upon and those lawyers are asking “Who really owned the note?” Former owners are suing the establishments, the title company, the lender, escrow and even the new current owner and their agent. We are in uncharted territory and for years to come no bank selling an reo will be able to see to it that their REO has a clear and marketable title. Be weary of touching an REO as you may find yourself in legal procedures for years to come.

* Housing and Urban Development assures a clean and marketable title. How? Because all FHA insured lenders have been paid, Federal Housing Administration repossessed the property and contracted hud to re-list the property. And, simply, because they are the federal government and, you have to ask to sue the federal government. The title company contracted by HUD is insuring the interest of the federal government. Need we say more?

A plethora of properties on the market are HUD homes. In 2011 it’s never been a better time than now for agents to effectively execute and understand all HUD procedures.

More about how to be a real estate agent, visit our site for a HUD 9548today.

How Much Does a Realtor Make – 3 Tips To Make You The Go To Agent

How much does a realtor make truly is dependent upon what part of the nation the agent happens to reside. Below are some distinct factors that work out how match a real estate agent makes; location, commission splits and the way frequently you wish to perform. For example, an agent in La, CA may well make a lot more than 100K each and every year selling just a couple of properties whilst a real estate agent within a further area of the country will have to sell 15-20 residences to make a comparable yearly profits.

The internet has developed a community with out limitations and, though I think a real estate agent can specialise in one general region, I really believe that’s the old school way of thinking. Just growing your market is an excellent way to get many more clients and increase your bottom line. Seeing ways to get this done turns out to be complicated. Allow me to share some great cases the way a realtor can easily improve their cash flow. So, how much does a realtor make?

Idea 1: Uncover a distinct niche. Finding a niche market in real estate is fairly quick to accomplish you need to simply open your imagination. Have a drive in your town or city. What exactly tend to be the landmarks inside your area? Industrial facilities? Pizza Joints? Chiropractic care offices? What’s your town or city developed around? As municipalities have been established they frequently have been developed around water thoroughfares and rail ways to make certain moving products to each city. For example, Pittsburgh – The Steel City. Detroit – could be a auto town. And so forth.

Tip 2: After you’ve made a decision on the priority locally then google some key words linked to, say, pizza joints in Columbus Ohio. Determine how many unique search terms show up for the keyword and key phrase. When the levels of competition are low then give attention to a couple of content articles discussed households situated near these pizza joints. After that syndicate them on the web together with your keywords and key phrases included like “An Incredible Listing Near Pizza Hut on fifth in Columbus”. Now, whenever a individual orders pizza on-line your title will appear as the agent for the area. Besides, everybody loves pizza and wishes to live near a common pizza shop proper? Just kidding.

Tip 3: Create a few diverse niches initially. Distribute articles or blog posts and tag all of them while using suitable search phrases and meta descriptions within the body on the write-up. Once you have distributed a handful of articles for the initial, small niche region then develop on that a little. Gradually, you are going to achieve the title of the go to broker and begin appearing all around the location when consumers google for attractions within their area. Not that you are going to begin selling a lot of homes but, finally, you’ll be getting branded yourself and become show up in the search results each time a person googles something where you live your title will show up.

Sooner or later, as consumers begin seeing your name turn up in the search results then consumers that will start to become inquisitive about who the heck you are.

How much does a real estate agent make truly is based upon how savvy you become. Get crafty. Utilize social media. You should have the opportunity to eventually make Hundreds of Thousands of dollars on a yearly basis just in case you actually out think your rivals.

Learn how to find profitable keywords for any business by attending one of our webinars. Or, visit our blog to learn how match does a real estate agent make.

With an onslaught of foreclosures due on the market in the next couple years it has never been more imperative to understand the HUD 9548 contract. Most licensed agents pass over HUD sales. Many analysts are predicting default rates in the next years that will be higher than all we have ever seen since lending initiated. Why will this alter HUD inventory? Because plenty of loans assembled from 2005-2009 were fha backed, new home buyer loans. Countless of those loans will be foreclosed upon. Subsequently, the value of those homes will now be lower and within the FHA lending range thresholds. So, new home buyers will be possessed to once again attempt to reach for the American Dream. Why does that matter? Read on.

Think about his. When the foreclosure crash initiated in 2005 buyers were running panicked and the “then” current home owners were panicking. What most didn’t consider was that there were anxious, potential home buyers waiting in the wings that had been saving for years to buy a home. And, nationwide, they signed up quickly to get a home…tens of thousands.

Fast forward two years to 07. Market in a downtrend. Home prices descending. Anxious, new buyers securing loans and homes. Then, the Feds enact a first time home buyer tax credit and some states followed suit by offering state tax credits as well that continued on through 2010. Another buying explosion.

Why does this matter now? Because all banks love fha insured lending as their loan, to a certain percentage, is guaranteed against default and, predatory lending was still happening in 07. The government hadn’t clamped down on these clowns. So, since the tax credits were offered, many easily influenced, first time buyers were signing up to get a loan and new home for any price and, no matter what the cost. Many of those loans were 3/1 and 5/1 ARM’s. So, 2007 until 2010 =’s 3 years and then default. Boom! Another crisis is already in sight.

While those buyers were motivated, they bought because of the tax credits offered and minimal down payment. All buyers didn’t consider that home prices were descending and the country was about to come into a deep, multi year recession. They were just in love with the American Dream. Well, many of those buyers lost their jobs in the past couple of years and have now exhausted their saving and are now lagging behind on their loans.

Let’s be honest, in our opinion, FHA borrowers/first time home buyers, for the most part, are cash strapped. With a double dip recession on the horizon all of these fha borrowers have received an NOD and are on the verge of officially defaulting. Tons of excited, new home owners from 2007 are now in a state of nervousness trying to preserve their home. The proper procedures weren’t in place. Another crisis is upon us. We tried to solve a problem with a problem.

So, why is it more important now than ever before to be apprised of hud home sales and how to efficiently close these contracts? It is because FHA/HUD homes are now going to be the norm in the market place. Historically, home prices were inflated tremendously. When getting started as a new real estate agent you need to have knowledge of every dynamic associated with the Housing and Urban Development procedures and also the Federal Housing Administration lending. If you learn these simple processes now and master them you’ll never will have a problem with getting an offer accepted or closed.

Learn more about getting started as a real estate agent. Stop by Len Dietrich’s site where you can find out all about QR codes for realtorsand what they can do for you.

As you begin your journey towards your real estate career, you may be amazed what it takes to become comfortable. Just knowing enough to pass the state licensing examination isn’t enough. Many rich licensed brokers attribute their prosperity to determination, superior training and mentoring. This will come in the form of resourceful books on the web, participating in training seminars and, above all, practicing at an office willing to allocate leads and share their knowledge with you.

Most licensed agents and brokers assume to earn thousands of dollars their first year. While it is possible, it is unlikely unless you have good mentoring and teaching materials. Since it takes time to produce a clientel to get listings there is one specific type of listing you can present as your own: HUD Owned Homes. Anyone can show, sell or advertise a hud-owned home.

HUD owned homes can initiate a nice earned income for new and experienced brokers. While in the old national HUD contract they offered a 5% commission that has now been decreased to 3% which is still pretty decent.

Many affordable hud deals flail out on the market because new and experienced real estate agents don’t seize the opportunity for the HUD sales process. Just getting started as a real estate agent is rough so don’t throw away hud sales from your portfolio. As others are ignoring them, you can become the expert.

Second thing you can do is catch a hud agent training course of study. Many are offered every month nationwide. Check with your local realtor’s association for class scheduling. If you can not attend then visit our site below and you can download a free ebook for bidding strategies and learn more info at our real estate academy.

More about how to be a real estate agent, visit our site for a HUD 9548today.

Why New Real Estate Agents Should Use Real Estate Marketing Letters

Answer me this; When you started in real estate did you have a mentor to show you the ropes? Did the office you started at offer any type of training? Well, if you are anything like I was my broker didn’t offer any type of training. He basically threw the agents in his office to the wolves. Years later I realize he couldn’t have been dumber. It’s a wonder there were never any lawsuits that arose from some of the transactions that went through that office. I am sure, with all the new agents that were there when I was there that there were a few that dropped the ball on some disclosures or blurred the line with ethics. But, that is another topic.

The fact is, I passed my test with one of the highest grades in the class. However, passing the RE exam didn’t prepare me to understand the everyday common language of a real estate agent. In fact, it was a test and no real life examples. I actually realize now that the test was a little outdated for the time.

One thing is for sure; real estate is a competitive market and few will help you getting started. No one in the office I started at would share a lead and, rarely, would anyone offer any insight to me unless I cut them in on the deal. Which is fine but, there has to be some sort of jump start to give a new agent insight, right? Yes, I know the Keller Williams of the world and Coldwell Bankers offer trainings but what if you were like me in a small office or somewhere in a small town in Utah? What then? Well, you would probably do as I did and buy some books. I bought some Donald Trump, Dean Graziosi and Gary Keller books when I started and they were useful. however what these books didn’t tell me is the basic, every day terminology that is necessary to communicate with other agents, buyers and lenders.

However, one resource that helped me when I started was that I bought some packaged marketing letter tutorials that gave me the types of letters that I would need to send to buyers, lenders and other agents. Really, what I wanted to see was how people corresponded with one another and be able to see, in front of me, how the language/dialog was happening. I bought several packages and all of them were under $75 dollars. The way I look at online tutorials and packages like this is that if I can glean yet one idea from whatever it is that I bought then it was worth the money.

Now I know every state is different and the rules and regulations differ from state to state but one thing remains consistent from state to state; the language that realtors speak to one another is the same and being able to see examples for all types of situations really is beneficial.

There are packages online that offer a full library of pre-drafted letters that will suit any situation that you are in. Check out our site. We offer a lot of free advice and also in-depth reviews on many of the most popular marketing tools for real estate and mortgage marketing letters.

Read more about real estate marketing letters, or the best mortgage marketing letters you can use.