Simply Junior

Let’s face it, the Real Estate Market is in the worst shape any of us have ever seen! The banks aren’t lending any money, buyers and sellers can’t agree on values, increased competition is worse than ever, and deals are extremely scarce.

Simply put, the real estate business today is getting harder than ever unless you discover the secrets for easily, effectively, efficiently, and affordably attracting bank asset managers and BPO companies to work with you, and give you endless BPO assignments and Bank REO Listings!

What is a BPO? BPO stands for Broker Price Opinion and many banks, lenders and financial institutions order these from qualified real estate professionals when they need a quick summary and valuation of a property. There are numerous reasons a lender may need a BPO. The property could be partially developed, distressed, delinquent, in foreclosure or could even be a perfectly fine performing property where the lender is simply looking to sell the loan.

Whatever the situation, BPO’s are being ordered by lenders at a furious pace and BPOs have become a lucrative niche in the real estate industry for those Professionals who are poised for them. Just last week, I received an order from one client to perform 60 BPO’s. The price is $400 for each one so as you can see, performing BPOs has become a reliable source of either supplemental income or the sole source of income for many Professionals across the country.

The BPO Industry is a thriving niche in the Real Estate Industry and is poised to grow. Mr. Obama may think the recession is over but he is sadly mistaken. There are still hundreds of billions of dollars in adjustable rate mortgage resets coming which will still result in a Foreclosure Landslide that will take as many victims with it as possible.

BPO companies and banks REO Foreclosure Departments now more than ever need Broker Price Opinions to help value all the properties they are repossessing now, and will be repossessing in the future. These foreclosed properties have to get new BPO valuation opinions from local agents so that the bank can list the properties for sale on the market.

Real estate agents across the country are starting to catch on to this demand and are making $60k to $100k per year just by completing BPO’s for the banks. The best part is that typically after completing a number of BPO’s for the banks, the agent has an opportunity to work towards getting the bank REO property listing assignments.

Right now this is where the gravy train is riding strong for many. The bank REO properties are usually priced to move making for shorter and more profitable transactions for real estate agents. Get into the BPO game or be prepared to get out of the business. This is a nationwide opportunity, don’t miss the boat!

To build your commercial real estate business as an office in your local town or city, and to gain the right market share for yourself, you are going to need a ‘Strategic Marketing Plan’. Before you create the plan, you will need a ‘Strategic Marketing Position’.

In this way will you make an impact on a consistent basis with the right prospects and players of the commercial property industry. Simply you want the market, the business owners, the property investors, and all the local tenants and buyers, to know that you are the best out there and can help them with their special property need.

So before you start to consider your marketing plan it is worthwhile considering what makes you better than the other agents and brokers in the area. You should have a real reason in being different in your property business, and your prospects must know you for that. This is both an issue for the office and for you as an individual. Everyone in your office should be pushing the same story when they talk to prospects.

Do not say that:

You are the best in the area, and you know what you are doing You are honest with the client from the outset You communicate with the client every step of the way You have operated locally for 20 years and know everyone in town, etc

These generic statements are just that and are of no relevance to the people that you want to attract. Your reason for serving the property marketplace has to be significant and of benefit to the people that you deal with.

You can specialise in a single property type to achieve that relevance to the prospects that you want to attract. Consider statements like this:

We specialise only in retail shopping centre leasing and sales so that the properties we handle can optimise their rental performance, sales turnover, and landlord return given the local demographic and community. We know the industrial leasing and sales market and have a database that captures all the businesses and properties locally for that very reason. This helps out property clients know what competition they are up against, and how they can adjust and target the real opportunity available out there. Office property sales and leasing is our specialty because we have tracked the majority of local major buildings and tenants for some years now, and because of that we know who the major players are, and when they will need to relocate or dispose of critical assets.

This valued approach gives the client or prospect real comfort in knowing that you have something they can use. If you run a typical commercial real estate office, your major services to the clients you serve could be repackaged and focused as:

Professional advisory services in the strategy behind leasing, selling, and managing commercial property in the local business community. You incorporate the trends and sentiment of the local business community plus the decisions and directions of planning authorities so that your clients make the right property decisions based on facts. Target marketing of commercial properties for sale, and lease, using special marketing packages that offer the investment client real impact beyond the standard ‘advertise and wait’ approach that many other agents or brokers use. Property management services offering significant income and expenditure solutions that package and target the asset to the client’s investment cycle of property holding and expected returns.

This rebranding approach is like a business plan in one or two sentences. You give your office a reason to serve the local property investors and those landlords that need your help. When you and your staff start to live and work within the ‘brand’, the market starts to see that you are really different and better than the rest.

Real Estate Investors are in for a tougher time in 2011 unless they adapt their current methods of investing. I’m sorry to be the bearer of bad news today but there’s some data I have in my hands that I must reveal to you.

Short Sale flips are tougher to do than ever. There simply aren’t enough people who can get bank loans to “cash you out” once you get your short sale approval from the bank. Plus title companies are very strict on disclosing back to back flips to both the “A” and “C” lenders. Anyone who’s an active short sale flipper knows this is getting tougher to do.

Rehab flips are tougher to do than ever. Title problems and “robo-signing” scandals have tainted the title to many properties and caused uncertainty about the quality of title when buying an REO. On top of that buyers must have a 700+ credit score on average to qualify for a FHA loan plus a down payment. This means there are less buyer’s to “cash you out” using FHA loans.

Most leads that you will generate into your real estate business will be houses with little or no equity. So if you are an “equity” wholesaler you will have trouble getting “equity” leads in 2011. My prediction is that this is just 5% of the deals I’ll do in 2011.80 -100 million people – roughly 30% of our entire population cannot qualify for a traditional bank loan. Cool thing is there’s a “golden opportunity” that’s been created because of tighter bank lending standards.Credit is expected to tighten in 2011, not loosen, according to Inside Mortgage Finance magazine.

Look at these statistics 10.7 million home owners have no equity according to CoreLogic. Another 4.3 million have very little equity. They are 87% – 100% leveraged. The FHA short refi program has helped just 3 people in 4 months. Just ask the FHA. *52% of all HAMP loan modifications “fall out” within 6 months. Just ask Obama. He knows.

So where are the real estate investment opportunities in 2011? What can you do about this and still be a successful investor in 2011? The answer: Go where the money is and diversify into strategies that do not require banks at all.

There are four simple, fast, safe and easy ways for you to make money that don’t require any banks whatsoever that you can profit from any type of property. Houses with equity, houses with no equity and no default (which are most common) and over-leveraged houses in foreclosure (short sales).The investment strategies are proven and have been used by astute investors since 2004. Just now in late 2010 and 2011 they really going to “blast off” because of the current state of the financial markets.

These four techniques will enable investors to continue to profit for many years to come. Some investors are finding that they can get cash now, cash flow each month, and then cash out down the road without ever owning the home. These types of leads are everywhere and require little to no marketing costs on your part to obtain. This is the easiest, fastest way to make money in real estate with no money, bad credit, and no loans for you or your buyers. So position yourself and your business for massive success in 2011 without any banks, FHA loans, private money or government programs using new “Cash Infusion” strategies.

I personally think the jokers at Fannie Mae, Freddie Mac and FHA are not all bad guys. They just are in over their heads. A recent Fannie Mae study showed 54% of the people surveyed want to buy a home in 2011. They realize there are lower prices than ever out there. Problem is with the current Fannie and Freddie and FHA guidelines they simply won’t qualify. So how are you going to use this to your advantage?

With the New Year approaching many real estate investors are wondering where to turn to start over and build a stream of income to support their life style! With the state of this economy many techniques and old tools of the trade no longer work and are far from proven today. As much as we don’t like it as people we have to change our routine to get better results sometimes.

These changes may be minor changes and sometime major and could throw a wrench in our entire operational plan and daily routine! In today’s market your business plan must reflect whats being use and is most prevalent. We had to make major changes but these minor changes made huge improvements and bought major results.

One of the first things we did as our business began to slow we turned to people who were taking off in their business because of strategic thinking and taking advantage of the new ways to market and bring exposure to their business! To make huge profits in this business the leads of hungry buyers and sellers have to be on autopilot.

The first step we took was to find a mentor to guide us through and brain storm different ways and techniques to increase our business! I reached out to a few reputable people in the business we’ve done business with and knew how to invest in a fair weather economy as well as a boom! Every investor should have a business plan and model that is effective regardless of the economy and situation.

The second thing we did with the advice of our mentor was to change our marketing techniques! Marketing made a huge change and the internet and social media. We continue to use our old technique such as flyers, bandit sign, and direct mail. We found out that this marketing niche increased out business leads by twenty percent and in turn increased our profits.

The third thing and most important thing we did was take action. With all of the different techniques and ideas one can obtain and retain in this business the most important is to take action! Decide what is more important at this time and pull the trigger! Your business should be priority and should be treated as so. Take the time to evaluate your business and determine where you need to improve and capitalize on it! Make a day to day outline of what needs to done and initiate the plan.

The real estate business is classified into two distinct categories, namely, residential and commercial real estate. Certain residential properties may not be the primary living quarters of owners and can be used to generate a source of regular income through rentals. Such property is referred to as investment property, but is primarily a residential complex. Houston commercial real estate revolves around the sale, purchase, lease, and rentals of property used for trade and business. This includes a wide range of business properties, such as shopping centers, gas stations, hotels, and office buildings.

The Houston commercial real estate market is enormous and enlists a wide range of feasible properties. Commercial properties acquire their title when they are used for business purposes. They include land as well as anything that is permanently built or fixed within the property, including cottages, buildings, and fences. Pipes, plumbing, heating devices and light fixtures, which are inbuilt or fixed on the exterior of buildings are taken into consideration during Houston commercial real estate appraisals. Houston commercial real estate dealings prove to be profitable for brokers and companies. This is because agents earn asset percentage of the deal proceedings as their service charges. Since commercial real estate provides a return on investment over a period of time and not instantaneously, clients need not rush into a deal. In order to guarantee profitability in the long run, it is advisable to find a Houston commercial real estate property that is feasible and boosts trade.

When considering Houston real estate property price points, clients are not likely to find consistent rates. This is because commercial real estate prices are dependent upon global recession, as well as on local factors and reigning price points of neighboring property. Localities that are reputed as “commercially profitable” are higher price commitments as compared to others located in developing areas.