Progress Report on Official Launch
Submitted by Jerry Cohen on Wed, 07/02/2008 - 15:24I'm happy to report that we're closing in on the official launch for the new EquityBuild Website. This will continue to be the correct URL but the site itself should be much easier to navigate. We'll be implementing several important programs for our affiliate and charitable organizations at the time as well. The date at this point is not certain, but it looks like the first or second week of August.
I'm very happy to say we're working with one of the very best Web design firms around -- 2820 Design. This is a group that does far more than implement attractive Website design. They are the authorities when it comes to developing graphic solutions for Websites that present unique products and services. This description certainly applies to EquityBuild; as there is no other organization that provides our turnkey real estate-based investment portfolio.
Referral Program To Be Implemented
Submitted by Jerry Cohen on Wed, 06/18/2008 - 20:51We are in the process of instituting a $500 principle payment, per house sold, to any existing client who refers a client to EquityBuild. The reason is simple.
Most of our clients come to us because they have watched friends or family members profiting from our program. I think this is because our offering exceeds most people’s expectations by so much. Over and over, we hear one phrase given as the reason that more people, when first learning about our program, do not sign up. That phrase is “Too good to be true.” If they know somebody in the program, however, they are more likely to dig deeper.
This might be amusing if it were not for the fact that there are so many HUD Section 8 rental voucher recipients who could be helped if more people signed up. After all, how many businesses have to contend with the problem that their product is “too good?” Still, I recognize that there are unscrupulous people in the world who make impossible offers, especially on the Internet. So we have decided to enlist those who are best qualified to overcome skepticism -- because they are profiting themselves from this opportunity.
Desperate Need for Affordable Housing
Submitted by Jerry Cohen on Thu, 06/12/2008 - 21:36This article, titled "Renters find doors shut on affordable Section 8 housing," does a good job of presenting the impact that the shortage of rental units is having on HUD voucher recipients. As I’ve written before, the collapse of the housing bubble has driven more than a million more families into the rental market. Naturally, those on the low-income end are suffering most because of the rental housing shortage.
It really is a desperate situation for a lot of people who have the vouchers to help them put their lives together, but no homes for them to rent. We at EquityBuild could do more to help with this problem, if more people would sign up for our program.
Charity Program Heads-Up
Submitted by Jerry Cohen on Wed, 06/11/2008 - 23:14As regular readers know, a big part of EquityBuild's "value proposition" is providing a socially responsible investment for people who want to know that their portfolios are providing for others as well as themselves. We do this by providing an extremely profitable portfolio that generates high-quality rent-subsidized housing for people who have been distressed by factors beyond their control.
Recently, though, I've been talking to a number of clients who want to do even more for their communities. After consultation, I think we may have exactly the solution they want: a program that could be the most dramatic and effective charitable giving program available.
I'm not going to say too much about the program right now, mostly because I've still got to talk to tax and charity lawyers. We need to be very certain that this strategy is in accordance with existing laws. I will say, though, that it is based on the value of credit.
Federal Housing Administration Acts To Reduce Bad Housing Loans -- About Three Years Too Late
Submitted by Jerry Cohen on Sun, 06/08/2008 - 00:18Federal Housing Administration Acts To Reduce Bad Housing Loans -- About Three Years Too Late
Though there's scant news coverage at the moment, it has just gotten much more difficult for real estate investors to get mortgage funding. Here's one of the few stories I could find about it. This is due to actions by the Federal Housing Authority that have reduced loan guarantees from ten to four per individual. Fortunately, there is a way for smart investors to get around this problem and EquityBuild is leading the way offering a unique solution to the problems caused by this limitation.
There's times, by the way, that I just scratch my head. Right now, we need every possible incentive for investors to buy homes. The subprime credit fiasco pushed more than a million new additional families into the rental market last year. Many are in desperate need of rental properties. Additionally, the housing industry desperately needs buyers to bolster a weak market that pulls the entire economy downward.
Bubble Collapse Causing Retirement Fears
Submitted by Jerry Cohen on Sat, 05/31/2008 - 14:26This article in USA Today does a good job of reflecting the widespread fears felt by many baby boomers facing retirement. Unfortunately, it doesn't tell readers that there is a simple, no-money-down solution to their retirement worries.
The piece points out that a lot of people had unwisely planned to use the increasing prices of their homes to finance their retirements. What strikes me about the story is that it misses an opportunity to tell people that the flip side of the housing market is offering them a lifeline -- if they will only take it.
I've cited evidence in previous posts that there is a huge influx of new renters into the market due to mortgage market woes. EquityBuild helps people with good credit profit enormously from this growing market -- and usually without using any of their own money.
Study Documents Underpriced Jackson Housing Market
Submitted by Jerry Cohen on Mon, 05/12/2008 - 10:50After reading the entire study that I referred to in my last post, I was struck by how helpful it might be for my readers. The Center for Economic and Policy Research and the National Low Income Housing Coalition have done a first-class job of comparing the cost of home ownership versus renting in 100 top markets.
This is important because it demonstrates some very important facts. One is that the housing bubble was actually what National City economist Richard DeKaser correctly described as "bubblettes." Some areas were hit hard. Other places were untouched.
Specifically, the research documents the fact that Miami and San Francisco home prices are vastly overpriced. On the other hand, areas like Jackson, Miss, appear significantly underpriced.
1 Million More Renters Last Year
Submitted by Jerry Cohen on Sat, 05/10/2008 - 16:58I stumbled across a fascinating article that first appeared in the Tampa Bay Business Journal and has been reprinted in dozens of Business Journals across the country. It makes the point that the powerful low-income housing lobby is bringing increasing pressure on policy makers to increase the supply of rental units.
The reason, according to the Center for Economic and Policy Research and the National Low Income Housing Coalition, is that the end of the housing bubble has forced many low income families into the rental market.
The article says, "Because of the high rate of foreclosures, much of the nation's population will turn to apartment options this year, according to the report. In fact, an additional 1 million people sought out apartments in 2007 compared to just 139,000 more people looking to buy a house."
Real Estate Investors and Problem Contractors
Submitted by Jerry Cohen on Wed, 05/07/2008 - 21:11Just thought you might be interested in this post at the EquityScout blog about dealing with bad contractors. I know that, for individuals investing in rental properties, finding skilled and trustworthy contractors is a major problem.
You have all probably heard stories about unscrupulous contractors who failed to perform and then disappeared with somebody's money. Even if the offenders are found, it may not be worth the legal costs associated with fixing the situation.
Hello from Jerry Cohen
Submitted by Jerry Cohen on Wed, 05/07/2008 - 21:04Hello, everybody. This is Jerry Cohen. We've just about finished the first draft of our website. I just wanted to let you know that I'm very happy to finally be on the Web.
I'm particularly pleased that our investors will be able to monitor their financials through our site very soon. That's all for now.
