Obama $1.5 Billion Housing Plan Needs More Explanation

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found with a video that announces President Obama’s plan to spend $1.5 billion on a new housing aid program…

The MSNBC article has a video of President Obama’s Feb. 19 speech at a town hall in Henderson, Nevada. The event was really a campaign push for Dem. Senate Majority Leader Harry Reid who is behind in the polls for the pivotal Nevada 2010 senator race. Obama’s speech paid Reid lots of compliments for his work in Congress, talks at length about the economy, touches on health care, education, green energy and announces a $1.5 billion housing aid program.

Of course, the housing aid program is what I’m interested in researching.

$1.5 Billion In Housing Aid… What Does That Mean To Investors?

The MSNBC article doesn’t do a very good of a job detailing the $1.5 billion housing aid program so that’s why I also am highlighting the Business Week article (it does a little bit better anyway). It’s probably best to understand the A-Z for this news story by watching the MSNBC video and then reading the Business Week article.

The problem for me is that even after I did, I think I only understood about the A-K of what this program is doing, unfortunately. The news applies most directly to those who live or invest in real estate in California, Florida, Nevada, Arizona and Michigan (the leading indicator states).  These are the states that are said to have been hit hardest by the housing bubble bursting. The idea is to target the worst of the worst areas and help them out first and foremost.

Okay, so after reading these couple of articles and watching the video a few times………umm, I’m still a little in the dark about exactly what they are going to do with the $1.5 billion. The best I can find in the info I’ve researched are two comments that stick out a bit, but they are mostly just clues… I think.

1. In Obama’s speech he said, “…and that’s why we’re buying up vacant homes and converting then into affordable housing.”
2. In the Business Week article Diana Farrell, deputy director of the White House National Economic Council, says “The aid is intended, in part, to test programs that reduce principal or extinguish second mortgages where borrowers owe more than their homes are worth.”

Is the government really going to start buying vacant homes?

Did Congress get together and decide, Ah Ha!!! Here’s how we make some $!! Let’s become real estate investors and start buying the cheapest houses out there! Yeah, yeah yeah! We can get the public’s buy in because we’ll say that we’re creating jobs for contractors to fix them up and boost realtors and loan officer’s production! Then we can sell the houses and earn BIG PROFITS!! Yippie!! LOL!

I doubt that’s what President Obama meant but what if that’s part of their plan a little bit? Could the US Government be your competition buying the short sale deal you’ve been working on right out from underneath ya? Again, I don’t think that’s the case, but dang if it doesn’t sound like it from the speech. I’m not serious exactly; just a little humor.

Diana Farrell, on the other hand, notes that the program will help folks that are upside down on their mortgages. Reading in between the lines I guess that by eliminating second mortgages or lowing mortgage balances in general will thus lower monthly payments. Lower payments on a mortgage will help some people avoid foreclosure.

That’s great if you have a job with an income that allows a borrower to make regular payments. Hello? The unemployment rate is still about 10%!! I guess I’m a bit skeptical about where this money is going right now because I can’t seem to understand exactly how the relief is getting handed out.

Housing Plan Questions…

Let’s start by asking the questions…. so who qualifies for this one and exactly what should one expect if they get approved?

Wouldn’t it would be great if there was one central location that anyone could contact, tell a specialist on the recovery act, stimulus stuff, tax incentives & credits, etc. what their situations are and then let the specialist look though all the cool recovery & stimulus stuff out there and in an instant, “poof” it’s in place for ya?

I guess if I had it my way, I’d just make the $1.5 billion available as private money that real estate investors could grab up at a really low interest rate (i.e. 1%)!

We’d be out there pulling down the funds and rejuvenating whole neighborhoods left and right! Then again, it’s kind of small potatoes. Why pay so much attention to this anyway I guess? There was something like 2.3 million houses that entered into some stage of foreclosure in 2008.

$1.5 billion is only the equivalent of 10,000 $150K homes anyway.

In Summary

To sum it up… as real estate investors we should all have our pulse on not only the real estate market… but other factors that can affect our businesses such as new goverment regulations or bills like this one.  I only see more and more of this type of action happening as elections in 2010 draw closer to sway public opinion that the voters are being “helped out” by the government… and this “help” could mean competition for real estate investors in the short sale market (short term competition), but it could also open up a whole new market for savvy investors that we don’t even know about yet.

 

===========================HIGHLY RECOMMENDED=======================
Need funding for your real estate deals? Losing out on deals because you don’t have the financing?  Well, we’re solving that with our first annual “Getting the Money” Bootcamp June 4,5, and 6th.  At this event we’re bringing in true *underground investors*, our funding contacts, and funding experts from around the country who are actively closing deals in todays market using a variety of different methods.

Everything from advanced “private money getting” techniques, to hedge funding, to buying large apartment buildings with little to none of your own money (our underground investor teaching this topic has acquired 2000 units in Texas in the last 2 years using the funding strategies you’ll learn) and more.

Head on over to learn more and get on our “Early Bird Notification” Hotlist for more info <<

===============================================================

Inspirational Video I Thought You’d Enjoy…

Great timing for this video… just thought you’d enjoy it and it would make your day

Click Here, These guys and gals
are making it happen today… <<<

… now that link above is real world inspiration from real people just like you.  Take 5 minutes and check out and see what normal people are doing in this economy because they took on the challenge to be an entrepreneur… it’ll change your life (it did theirs).

Then… check out this free “Private Money Getting” Q&A (we just uploaded a new version of the video… this one is MUCH better)… there’s more real world investor case studies in there… and one tip in particular (a student asked a question on the call)… that will help you reduce the interest rates you pay to private lenders by 1-4%.

Go here 2nd <<

Enjoy

- Trevor
P.S. – The PMBP system price goes up by $300 on Wednesday at midnight… check it out before you miss out on the low price… and the bonuses.

http://www.privatemoneyblueprint.com/special.php <<

Syndicating Real Estate – A Video, Free Resources, And More…

Okay, there’s a lot of confusion going around about what “syndication” is and how real estate investors who know how to do it are making great money in todays market.

So… here are a few resources for ya that will help you out… and it’ll show you why anyone who knows how to get private money easily (which our PMBP students and us have figured out… and do each and every month)… can make the most money in this current economy.  Those who can’t get private money easily will struggle and definitely WON’T be successful as a “syndicator”.

Six Figure Syndication Secret Resource #1: An 43 minute detailed video…

This video is one I filmed about 8 or 9 months ago (not exactly sure)… but I thought I’d share it w/ ya because at the minute mark 27:30 I start to talk about and teach a bit about using “Syndication” to buy apartment buildings with NONE OF YOUR OWN MONEY… by using private money.

The diagram and #’s I draw out are pretty cool. The rest of the video is good stuff too… you might want to watch it too… but the “Syndication’ stuff is at minute mark 27:30.

(click the video below to play. There is a bit of gibberish the first 5-10 minutes… so if you want to fast forward to the “syndication” part… just drag the video progress bar to the right til you hit 27:30).

Six Figure Syndication Secret Resource #2: A Live Streaming Q&A Tonight (Monday) at 5pm PST on “syndication”

I’ve been friends with a guy named Brad Wozny for almost 2 years… long before I was ever really even online… and he’s been kicking some serious butt as a real estate “syndicator” for the past 4 or so years.

So, he’s doing a live Q&A (streaming video… not a webinar) where he’s letting anyone ask him any questions you want about syndication tonight at 5pm PST.  I’ll be on the line learning a bit from Brad… all you have to do is click the link below to register:

Click Here To Register For Live “Syndication”
Q&A Tonight (Tuesday) at 5pm PST (8pm EST). <<<

Free “Syndication” DVD, Flow Charts, and Access To Other “Syndicators

A really cool high value resource that has come out (which is causing all of these questions from our readers about “syndication” I’m sure is by Brad Wozny of 6 Figure Syndication.

This week he’s put out a free (of course, plus $9 shipping) “syndication” roadmap… but the cool part is that you get access to other syndicators from around the country through his network (which is where the real value is).

Check it out here today before they run out <<

Cool Bonuses I’ll Give Ya…

If you decide you want to spring for the $9 shipping to get the “syndication” blueprints… I’ll pitch in a few extra bonuses to make it even worth your $9 investment.

1. Private Money Faststart Package: You’ll get our $67 PM Fast Start package for free.
   1. Includes Private Lender Powerpoint and script ($67 value)
   2. 26 page customizable Private Lender Presentation for marketing ($197 value)
   3. 1 hour “SEC Attorney Spills the Beans” Interview w/ one of the West coasts top SEC attorneys ($395 value)
   4. Free 30 day trial to our Private Money Monthly training program
   5. Private Loan Payoff Calculator ($67 value)

I bought my $9 blueprints just now… so I haven’t even seen them yet. But, I did notice that Brad gives you the opportunity to get his full home study system (which I already have) as an optional upgrade.

If you decide that the $997 upgrade system is right for you (it’s a solid system)… we’ll also give you the following bonuses:

1. A $100 cash rebate paid back to you
2. PMBP Digital Program Full Online Access (entire digital version of PMBP… value $397) for free

So… all in all… that’s over $600 in bonuses we’ll throw in for ya if you decide the 6 Figure Syndication program is right for you… which I’m not going to try to sell you on it… just give you some more bonuses if you’ve made the decision for yourself that it’s right for you right now.

**NOTE** But, you have to use the link below to get the bonuses… if you don’t use the link below we can’t give you the bonuses.

>> Use This Link To Get The Above Bonuses Valued At Over $600 <<

Have You Done This With Private Lenders Before?

When getting started with private money, what if one of your private money prospects asks you  …

“Have you done this with other lenders? If so, could you give me a few names that I could contact?”

How would you respond to that? What would you say?

If you’re like most, you’d probably fumble on your words … stutter a little bit … and leave your prospect with a not-so-good feeling about you and your investment program …

BUT, have no fear … Patrick’s Here!

… lol … ok, maybe that was a little much … but really …

One of our students asked this question recently so I shot a quick video teaching you exactly what I’d say to handle the prospect’s true concern … their comfort level investing with you …

Click the video below to watch the video now!

My advice to you would be to study the script below so that you’ll be ready to fire when a prospect asks you this one …

<< Private Money Script for Squashing this Objection >>

“I’m newer to this but my mentor has been doing it for many years.

Often times when people ask that question, I’ve found that what they want is to feel comfortable about the investment … one thing that I want to make sure that you understand is that you’re investing in a property … a property that is significantly undervalued. So your security is the property itself.

And you will get a chance to make sure the deal provides you all the comfort needed for you to feel safe and secure. Does that make sense?”

Then, if he or she asked again to speak to some of your investors say …

“I’m in the process of qualifying several lenders at this time to get started with me. So far, I haven’t needed extra funds but I’m coming across so many good deals right now that it’s time to build the team to take advantage of this incredible buyer’s market.

You know, this opportunity is definitely not for everyone so I understand if it’s not for you.”

Let us know how we can help you guys out … put your thoughts, questions, and whatever else is on your mind in the comment area below …

- Patrick & Trevor

NOTE: Since March 2009… our students have reported back (this is only what they’ve reported back to us) over $4.75 million in private money “got” to close their real estate deals.  If a few hundred thousand or million bucks to make offers would make a difference hop aboard the “PMBP train” while this buyers market is still here.

We’ll help ya get there <<

Tim Bratz Case Study : Zero to Private Money in Less Than 6 Weeks

Several months ago, Tim sent me a message through Facebook. The subject line said, “Patrick Riddle’s Protege: Tim Bratz.”

Check it out …

That’s the kind of attitude I like to see! That’s the kind of attitude that begets success.

5 Reasons I Knew Tim Would Be Successful in Real Estate Investing and Getting Private Money

1) As soon as he learned that I lived in Charleston, he reached out and contacted me . . . showing initiative.

2) He quit his job to focus on real estate investing. Now, this isn’t something that I recommend to anyone BUT, Tim made an unwavering decision to become a real estate investor. It wasn’t simply a hope or wish. He went “All In” and as you’ll see in the video below . . . it’s paying off big time!

3) He recognized that he was at a stand still and that there was a missing ingredient. And that missing ingredient was having a mentor. As Tim said, “Someone who has been there and done that but also someone who I can associate with.”

4) “I’m willing to work for you free of charge.” Now, that clearly shows that Tim knows the value of having a mentor. He’s not one of the many out there that wants something for nothing. Hopefully, you aren’t either. That kind of mindset guarantees failure (and it’s all too prevalent in today’s world).

5) He also mentioned wanting to discuss his goals, being committed to becoming a real estate mogul and that he’ll do anything (ethical and moral) that it takes.

So, I decided to meet with Tim for a cup of coffee and check this kid out (he’s only 24! . . . which I like to see since I started in my early 20’s as well). And what do you know, he ended up being the real deal just like he said.

Shortly thereafter,  he closed his first deal, joined the Private Money Blueprint Team, and has gotten private money commitments from multiple people. In other words, he hit the ground running and isn’t looking back.

Check out the video to learn more about his story . . . how he got his start, the frustrations and obstacles he encountered, closing his first deal, getting private money easily, and more.

If you want more great private money videos, subscribe to our youtube channel. Otherwise, you may miss out on a tip or technique that could mean the difference between struggling to finance a deal and having private money lenders beating down your door.

Click below to suscribe . . .

Private Money Videos

- Patrick & Trevor

Patrick Egan Case Study: How He Got $150,000 In Private Money Within 30 Days

Howdy!

Alrighty… one of our Platinum PMBP students shot us an email letting us know what he’s been doing the last couple weeks… and both Patrick and I had big ol’ smiles on our faces when we read what he’s done since implementing what we taught him.

His Private Money Results?

Well… check out the case study audio below for specifics… but I can tell you he secured 6 figures in less than 30 days after he worked the PMBP system  (he says how he did it in the mp3 below).

Click here to play the mp3 case study with Patrick Egan <<

The mp3 will open in a new window

To Sum It Up…

• $150,000 in private money within 30 days
• Has found a few very simple things that clicked with him that got him big results that other private money programs didn’t do for him
• He used our scripts and got his CPA to commit private money to him and his CPA will now refer his clients over to Patrick Egan as well.
• Patrick (Egan) is much more confident and comfortable getting private money now
• Patrick (Egan) will now be able to fund his multi-family deals more easily than ever before

Congrats Patrick!  We’re proud of ya and we’re here with you 100% of the way!

P.S. – Like I mentioned yesterday… over the weekend Patrick and I decided to release the remaining copies of the PMBP program that we have left from the initial 250 we ordered in May.  We’ll be releasing them Wednesday July 8th (tomorrow).  I just took this screen picture yesterday from the backend of our home study course maker.

We’re not big on hype and scarcity and all of that… but that is how many programs we’re going to sell and that’s it.  We’re not sure when we’ll order any more after this (or if we will)… but after this 39 are gone we’re definitely going to up the price and take away some of the bonuses (like the free private lending website) for everyone else who buys in the future because we learned it’s a lot more work than we initially thought to answer the students emails every day (which we love to do by the way!)…

… and those “private money getting” websites cost me too much to pay my web guy to set them up and maintain them to give them away as bonuses forever (only the 39 who get in Wednesday will get the private money getting website that cost me $3,500 to have my web guy build from scratch for me).

Good luck tomorrow! Watch your email box for the link… hope you grab one of the 39 (actually 37 left because 2 people somehow found the “backdoor” way to the buy page… lol… I need to talk to my web guy about that one systems we have left!

Bonus Video: Marketing To Generate Motivated Seller Leads

Hey guys and gals!

Patrick just got done finishing up an entire video bonus module for you that will help you to generate motivate seller leads for your business the way that Patrick has… using a lot of both free and paid ways to generate leads within the next 15 days or less.

Sit down, take out a note sheet… and promise to implement at least one idea into your business by the end of this week.  Afterall… education without implementation is just entertainment… and that doesn’t put cash in your pocket… action does.

Enjoy

Half Way Through 2009 … Are You Where You Want To Be?

I was just on the phone yesterday with my brother (my much older brother) wishing him a happy 33rd birthday. We couldn’t help but talk about how fast time seems to fly.

Have you ever woken up one day and thought to yourself, “Where did all the time go?”

I had a moment like that earlier today when I suddenly realized that we’re half way through 2009! It seems like just yesterday I was writing down my goals and formulating my plan for the year.

Just like in a football game, now is the perfect time to take a “half time” so that you can rest, think about what you’ve done well and what you’ve done poorly, and invest everything you’ve learned into your game plan for the remainder of the year.

Check out the video below . . .

With that said, it’s time to reflect on the first half of this year. Are you where you want to be? Is 2009 turning out to be the kind of year that you know it could be . . . or are you still just doing what you’ve always done and getting the same old lousy results?

What’s holding you back? Why aren’t you achieving what you know you should be?

Here’s what I want you to do . . . in the comment section below, tell us what one major roadblock or obstacle is holding you back? If you’re not sure, just imagine that you are sure and know what one thing is blocking your road to success, what would it be? And tell us why you think that is?

We’re here to help. We want to help you formulate a game plan for the 2nd half.

We’ll be checking back here regularly to respond to your comments.

Get ready to put your game face back on . . . 2nd half is about to start.

- Patrick & Trevor

Want more private money videos? Check out our YouTube channel by clicking below (subscribe to our channel while you’re over there so you don’t miss out on any new videos) . . .

How To Buy Apartment Buildings With Private Money

One of our PMBP Platinum students called Patrick and I this week to get some last minute questions before he does his first “private lender group
pow wow” for a bit of our advice.

Anyhow, we got to talking and he just got a HUGE property under contract ($1mil apartment building) and already has all of the private $ lined up for it… 30 days before close (we taught him how to get those lenders).

Long story short… Tim’s business model for buying apartment buildings with private money is just like mine.

Buying Apartments With Private Money Simplified Process

Here’s how it goes:

1. Market for sellers who have owned the property for 10 years or more (the more time the more equity)
2. Negotiate with seller to have seller  carry as much of the note back as possible. I prefer at least 80%.    – Tim got a 10% rate which still helps him cashflow the property, I usually go for between 6-8%.
3. Bring in private money lenders for the downpayment.
   1. Tim brought in $80k in private money from two lenders for this deal.
   2. Own a property w/ HUGE leverage, positive cashflow, and little to nothing out of your own pocket.

Sounds simple… cause it is.

The trickiest part of the whole thing is finding enough property owners to talk to on properties that match your buying criteria.

Not all sellers of course will want to or have the means to be able to carry the note.

However, when you really target the RIGHT sellers you increase your odds and closing percentages big time.

Types Of Property Owners I Target

I like to target this type of seller for apartment buildings:

• Owned property for 10 years or more
• Is nearing or in retirement (45-60 years old)Property is in good shape but might need a bit of cosmetic work/upgrades…
• …and as a bonus. If they seller manages the property themselves it’s even better!

It’s better because when you say the right things you can show them how you can pay them the same or more than they’re currently
making in cashflow per month if you buy the property… and they no longer have to worry about managing the place, doing repairs,
fixing toilets, etc.

Once you’ve negotiated with the owner on the purchase price and seller carry, now it’s time to get a hold of your private lender prospect list and start using the 30 second commercial, setting up 1 on 1 appointments… and gear your presentation a bit toward the end on this specific deal.

Let the strength in the deal numbers “sell” the deal for the private lender to show them it’s a no lose for them.

For Tim, our student… he got the property under contract and the seller agreed to close in I think it was 60 days… don’t quote me on that though.

Then, Tim had already been talking to people and planting seeds about what he’s doing and giving his 30 second commercial.

So, he went back to those people who showed interest and told them about the deal… and asked for a 1 on 1 appointment to show them more details.

He secured the one lender for $40k using his presentation…

… then asked that lender if he knew anyone who would be interested in this deal.

(KEY: Ask for referrals… that’s one of the best sources of instant credibility and makes it much easier to built trust with the referral).

Tim talked to the referral, presented his presentation and deal… and locked up the other $40k he needed right then and there.

Done deal.

The only difference between Tim and other people who haven’t seen this kind of success is that he took what he learned and took action on it.

He did a great job finding a great deal… and we helped him get the confidence to get the private money for the deal.

Here’s the stats:

• Purchase Price: Approx. $1,000,000
• Seller Carry: Approx.   $      920,000
• Private Money: $        80,000
• Money out of Tim’s pocket = $        0

(I believe the private lenders are paying for the closing costs too for Tim!).

That goes to show that there are great deals to be had out there and that those deals go to those who take action on what
they learn.

So, get out there and use some of the tips from this article to find a great property and fund it with private money so you don’t have to take a dime out of your pocket to own a million dollar property.

Lol, I get emails every week from people asking if the “no money down” deals are real… they’re skeptical.

Well… they’re 100% real… they’re all over the place… and if you don’t think they are out there… well… more for me and Tim!

- Trevor