Take your investment analysis to another level Submitted by Jerry Cohen on Thu, 09/02/2010 - 06:51 Today's topic isn't for the novice real estate newbie investors but rather veterans searching for robust tools to help make informed decisions about future trends. Yesterday we discussed the use of frequency intervals and demographic trends to help build a predictive model with direct day-to-day application for your investing decisions. Now we will turn our attention to the use of CHAID and SIMM data to help understand how economists, researchers and marketing experts are able to generate broad trends well into the future. Once you understand the basics, it's easy to use the same techniques in your own local market. SIMM or simultaneous media usage studies, are performed twice each year. Each segment contains roughly 15 to 17 thousand participants with a total of 14 groups representing major age range distributions patterns. With over 200,000 participants, the study is large enough to generate valuable data which can then be generalized to the larger population. The US government also conducts similar types of survey's and data gathering activities although typically with less emphasize on media penetration. Not only does this level of consumer tracking across all media sources (online, magazines, television, newspapers, radio etc) assure a comprehensive tracking mechanism, it also forms the foundation for predictive modeling and consumer purchasing behavior. Consumer participants are asked questions such as "whether or not they intend to buy a house in the next year then combined with household income, age and other basic demographic information, it is used to generate a CHIAD or Chi Square Automatic Interaction Detector. Despite the somewhat fancy sounding name, a CHIAD is little more than a decision tree. For example, for those participants which indicate they intend to purchase a home within the next year they may then be asked whether it will be a primary purchase or a second home. The time frame of that purchase (1-3 months, 4-6 months etc...). The size of the home and so forth. So, how can this be used in your local market? Depending upon the size of your social media reach and client list, it's easier than ever to create an informal survey to gauge the level of interest and intent in any given zip code or metropolitan statistical area. It's also possible to gather large scale data created by the government (both state and local) in order to combine it with that of the Census, Department of Labor and other federal generated trends. Remember, information is power.

Are your investment decisions the result of proper analysis? Submitted by Jerry Cohen on Wed, 09/01/2010 - 14:41 Statistics. Love them or hate them but most business decisions involve the use of statistical data including the purchase and sale of investment real estate. For example, one common measure of a good investment property is "affordability". But what exactly constitutes affordable? It's an important consideration and one that most real estate investors do not fully understand. The "reader's digest" answer is that an affordable home is at or below the "average" household income for that location; ie, it can be purchased or rented by most households and is therefore an attractive investment. However, this really only relates a small amount of the total information required. Average or mean incomes are notoriously inaccurate due to skewing of results at the high or low ends. Likewise, "average" priced homes are equally biased due to very high priced or very low priced home. One way to avoid the problem is to use frequency intervals in combination with demographic trends and housing price. Frequency intervals are ways of measuring a large group of items to determine which is the most commonly occurring. For example, let's assume a real estate investor is interested in purchasing a few properties in a given city and this investor is very prudent and does some research to find out the average household income and the average sales price of a home. So far - so good. Just for the sake of simplicity we will assume the household income is close to the national average at $50,000. The average sales price of homes in the area is $150,000 or roughly 3x the annual household income. Our savvy investor sets out to find a few homes in that price range...what could go wrong? Well, the short answer is... a lot! Unfortunately, the rising rates of unemployment combined with a few very high incomes skew the results...basically there are a lot of low-end household incomes in the $25,000 range and a small but significant number of wealthy households in the million dollar range. The "average" may still be $50,000 per household for that city but it fails to account for the lack of a substantial middle class. Basically, there are very few households able and willing to purchase a home for $150,000. The lower income households cannot qualify and the higher income households may not be interested. The solution is to use frequency intervals for all pertinent data including household income, age and other significant criteria. By learning how many households are in a given income bracket, how many are of home-buying or renting age, etc... the investor has a much more detailed plan of action. Returning to the prior example, rather than purchase a $150,000 average home, the investor may concentrate efforts on homes priced at or below $75,000 and/or luxury homes instead. This would appeal to the largest number of buyers and renters for that area at either/or the low income level of high household income level. It's a simple solution to address highly volatile markets and disparate data.

Government loan programs you should be aware of Submitted by Jerry Cohen on Wed, 08/18/2010 - 11:06 With the majority of mortgage loans now guaranteed by the U.S. government, it is a good idea to review what is available and to whom. Here is the low down on government loans as of August of 2010. Basic FHA Loan (Home Mortgage Insurance - HUD/FHA) - This program has grown into a heavy hitter within the industry despite the fact that it doesn't lend money directly to buyers (in most cases) but rather insures or underwrites the loans. Condominium Unit Purchase (Mortgage Insurance - HUD/FHA) - Similar to the Basic FHA loan above, this is designed with condo owners in mind. Manufactured Home Loan Insurance (HUD/FHA) - Like the basic FHA and condo loans above, this program is designed for borrowers interested in the purchase of a mobile or manufactured home. Hope for Homeowners - The media made a lot out of this little program which turned out to be a much smaller than originally anticipated. Designed to help people avoid foreclosure, the program provides new, 30 year fixed interest rate mortgages for those that cannot afford their current payments. Stringent requirements have limited the number of eligible participants. Rural Housing: Farm Labor Housing Loans and Grants - Once a major program within the federal government, the reduction in family farms has made this an all but forgotten program but one worth looking into for anyone interested in purchasing a family farm. Loans (and a limited number of grants) are available for land, housing, machinery and other assets required to buy, build and operate a farm. VA - Home Loans - Interest Rate Reduction Refinancing Loan - Once considered the domain of veterans, this guarantee service also provides funding for the family of service members as well as veterans and others. Additionally the VA provides vendee loans for anyone interested in purchasing a VA foreclosure. Section 203k Rehabilitation Mortgage Insurance - Interested in a major fixer-upper? Section 203k may be the right mortgage for you; once the main mortgage is obtained, this program provides the funding needed to make necessary repairs and upgrades to the property. Section 203h is a closely related program that provides funding for repairs and rebuilding due to natural disasters or other emergencies. Home and Property Disaster Loans - The Small Business Administration may not be the first agency that comes to mind when you need a mortgage after a disaster but don't be so quick to mark this one off the list; the SBA is able to assist small business owners, homeowners and even some renters after an area has been declared a disaster.

Mortgage interest rates at record lows Submitted by Jerry Cohen on Wed, 08/18/2010 - 11:05 According to the Zillow Mortgage Marketplace weekly update, The national, 30-year fixed-mortgage rate (FRM) slightly decreased from a week earlier, reverting back to the record low average of 4.28% set two weeks ago. , 30-year rates vary regionally, of course, but the majority of states witnessed a deflation. Most large states saw a decline in rates: California's current rate of 4.33% is down from 4.34% last week; New Jersey's at 4.26% is down from 4.28%; Pennsylvania's at 4.32% is down from 4.33%; Illinois' at 4.3% is down from 4.34%, and Florida's at 4.21% is down from 4.24%. Rates substantially decreased in New York to 4.25% from 4.41% and Texas to 4.19% from 4.29%. Rates increased in Massachusetts to 4.22% from 4.28%. Zillow reported the national average rate for 15-year fixed home loans remained flat at 3.86%, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.23%. Zillow's rates are based on real-time mortgage quotes from lenders registered with, but not exclusively bound to the company. The national average comes from thousands of daily quotes given to anonymous borrowers through their website. State averages are also available.

What's the better investment: ADR's or Real Estate? Submitted by Jerry Cohen on Mon, 08/16/2010 - 15:27 What's better...American Deposit Receipts (ADR's for short) or real estate? In recent months there has been a great deal of interest in ADR's as a convenient way for American investors to own shares of foreign corporations without the risk associated with overseas investing. Add in the prospect of dividend paying ADR's and you have a recipe for success...or do you? Today we will investigate the pros and cons of investing in ADR's to determine how it measures up against real estate. ADR's Defined American Deposit Receipts are a special type of stock that allows investors the opportunity to mirror the value of foreign corporation shares while retaining the convenience of purchasing just like stocks while using US dollars and without the need to use a foreign trading desk. The benefits of an ADR are impressive; the ability to easily purchase a stake in a foreign owned corporation, dividend paying yields and many of the same protections investors have come to rely upon when investing domestically. ADR's Profit Potential & Pitfalls Not only do ADR's benefit from the currency exchange, rapidly rising economy in emerging markets and general growth trends but some ADR's also pay dividends which can create an even more enticing profit potential. Unfortunately, all that glitters isn't gold especially when it comes to ADR's. ADR's are handled very differently when it comes to the underlying deposits on hand at the bank so it is essential to fully understand who is holding what and the reporting requirements before investing. It's also important to note that the exchange rate may work in reverse, effectively reducing profits and yield due to exchange imbalance. Compare & Contrast By now it should be obvious that ADR's certainly represent an interesting investment prospect; rising dividends, potential for capital appreciation and exchange rate returns... but how do they compare to real estate? After all, the most important aspect isn't what the media thinks but how much profit an investment can generate for your personal portfolio. To find out the facts, we took the time to research some of the most attractive dividend paying ADR's currently available and found the majority provide dividends of less than 5% (most in the 1% to 3% range) yet trade at premium levels when compared to the cost of purchasing a similar product in the original nation of origin. Use of leverage may be restricted, lack of familiarity with ADR's often results in a less robust trading floor due to decreased volume and perhaps most important of all...the real rates of returns often fall short of those enjoyed by average real estate investors just like yourself. From Chris McLaughlin

National home prices increase for fifth straight month Submitted by Jerry Cohen on Mon, 08/16/2010 - 15:24 National home prices rose in June from the same time in 2009, marking the fifth consecutive month of year-over-year increases, according to the latest report from real estate services and data provider CoreLogic. National prices, including distressed sales, rose by 1.4% in June from a year earlier. The yearly appreciation slowed from the 3.7% increase in May from one year earlier. The May increase was revised up from the initial 2.9% estimate. "Home price volatility and collateral risk remain very high," said CoreLogic chief economist Mark Fleming. "The stabilization phase and policy intervention since the spring of 2009 has run its course. Prices are expected to further moderately decline as the economy remains weak through the fall." CoreLogic called the 2.3 percentage point deceleration from May "very large by historical standards," with deceleration most pronounced in more expensive and distressed housing markets. Excluding distressed sales, prices rose 0.2% in June from one year earlier.

Interest rates at historic lows mean NOW is the time to invest!! Submitted by Jerry Cohen on Fri, 08/13/2010 - 13:31 Here we go again setting new records. Freddie Mac's weekly report said the 30-year fixed rate slipped to 4.44% for the week ended Thursday, the lowest since it began tracking the rate in 1971. Last week's rates stood at 4.49%, and a year ago it was at 5.29%. The 15-year fixed rate fell to 3.92% this week, the lowest since Freddie Mac began tracking it 1991, down from 3.95% last week and from 4.68% a year ago. Adjustable-rate mortgages also declined, with the 5-year rate falling to 3.56% this week, the lowest since 2005 when the lender began tracking it. Mortgage tracker Bankrate.com, which surveys large lenders across the country, said the average 30-year fixed loan sank to a record low for the fourth consecutive week, falling to 4.57% from 4.66% the previous week. The 15-year fixed rate, which is a popular option for refinancing, also fell to the lowest level in the history of Bankrate's 25-year old survey, dipping to 4.06%, from 4.11% the week before. While the 1-year adjustable-rate mortgage held steady at 4.8% for a fourth week, the 5-year adjustable rate mortgage dropped to a record low of 3.92% from 3.95% the previous week. Retail sales up According to the Commerce Department, total retail sales rose 0.4% to $362.7 billion, compared with June's 0.3% decrease. The June drop was revised from the originally reported 0.5%. The overall sales percentage gain was slightly lower than anticipated. Economists surveyed by Briefing.com had expected sales would rise by 0.5% during the month. Consumer spending accounts for two-thirds of U.S. economic activity, so retail sales and related reports are closely monitored to gauge the health of the economy. Sales excluding autos and auto parts rose 0.2% last month, in line with economists' forecasts. In June, sales on the same basis were down 0.1%. Motor vehicle and parts sales also rose 1.6% in the month, and gasoline store sales rose 2.3%. Overall, retail sales are up 5.5% over July last year. This combination of low rates and early indications of a rebound in the economy raises a critical question you need to answer: If I truly want to build wealth and become a real estate investor, what am I waiting for?

Have housing prices found a "bottom? Submitted by Jerry Cohen on Thu, 08/12/2010 - 14:21 According to the latest survey by the National Association of Realtors (NAR), in the second quarter, 100 out of 155 metropolitan statistical areas1 (MSAs) had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 MSAs experienced annual price gains in second quarter of 2009. The national median existing single-family price was $176,900 in the second quarter, up 1.5% from $174,200 in the same period of 2009. The median is where half sold for more and half sold for less. Distressed homes accounted for 32% of second quarter sales, down from 36% a year ago. Total state existing-home sales, including single-family and condo, rose 9.1% to a seasonally adjusted annual rate2 of 5.61 million in the second quarter from 5.14 million in the first quarter, and were 17.3% above the 4.78 million-unit pace in the second quarter of 2009. Sales increased from the first quarter in 44 states and the District of Columbia; 47 states and D.C. had increases over year-ago sales levels. In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – showed the national median existing-condo price was relatively flat at $175,700 in the second quarter, down 0.5% from the second quarter of 2009. Twenty-six metros showed increases in the median condo price from a year ago and 29 areas had declines; the first quarter of 2010 showed 24 metros up, while only four metros saw annual price gains in second quarter of 2009.

Is Real Estate an investment that's too good to be true? Submitted by Jerry Cohen on Wed, 08/11/2010 - 13:07 real estate investors that recognize a good thing when they see it are reaping huge economic rewards. It's easy to understand why they are optimistic; exceptional interest rates, huge discounts and plenty of properties to choose from...why doesn't everyone join in? In what might seem like a contradiction, real estate might be suffering from the perception that it is too good to be true. Rather than take the time to really crunch the numbers, most Americans rely upon the media for most of their financial information (and then wonder why they aren't ready to retire sooner). Aside from the somewhat dubious value of that strategy, they simply don't understand how good the current market really is; when they hear about a successful real estate investment, the typical reaction is disbelief or denial. For the benefit of those who are sitting on the sidelines or perhaps trying to talk a bit of sense into a friend or family member, let's take a few minutes to run a few simple calculations and comparisons. House Price Illusions - One of the benefits of long term real estate holdings is the inflation hedge provided...it is also a major reason more people don't fully understand how to properly value real estate. For example, the median purchase price of a house in 1964 was roughly $19,000. As of 2009 (the last full year of data), the median purchase price was roughly $206,000...a seemingly sizable increase in nominal terms. However, when adjusted for inflation, the 2009 house would equal only $30,000 in 1964 terms. Bargains Galore - Of course, in 1964 there were not as many houses on the market. Today it is a buyer's market with many homes selling well below the $200,000 level. In many areas of the nation it's possible to find relatively newer homes selling for less than half that amount...or the equivalent of only $15,000 in 1965 terms. Better Rates - The savings don't stop with prices. Interest rates really make a difference in the total cost of a house; with 30 year fixed interest loans below 5% and relatively low down payment, houses remain even more affordable today than at almost any time in the past 4 decades. Combined with a higher minimum wage, it's possible for two minimum wage earners with decent credit to purchase an affordable starter home for roughly the cost of a car payment...and lock in that great monthly payment for a full 30 years. It's one of the most simple yet effective ways to storm-proof a portfolio for years to come. Young people have an especially great reason to turn to real estate and begin investing early; great prices, great rates and plenty of time on your side. It's a win-win proposition. Not sure it can be done...take the time to call us and see us in action. Young or old this is an equal opportunity venture you can't afford to miss.

Is the current real estate market a Submitted by Jerry Cohen on Tue, 08/10/2010 - 12:54 According to the US Housing Market Monthly report by Capital Economics released yesterday, home sales have yet to hit the trough of the recession. Further, the economics firm states that pending home sales will do little to push home sale numbers higher. In fact, the number of pending home sales is so diminished, down 32% in the wake of the tax credit expiration, that existing sales will only dip in the coming months as these mortgage agreements are finalized. Analysts at Moody's Investors Service agree, stating that the odds of a near-term double-dip recession increased to one in four from one in five predicted this spring. If this double-dip happens, Moody's estimates home prices will fall along with sales — an estimated 20% before stabilizing in early 2012. However, mortgage tech company Fiserv predicted only a 4.9% decrease in housing prices over the next 12 months. Pending home sales fell another 2.6% in June from May after deteriorating 29.9% in May from April. According to Capital Economics, this will be reflected in existing home sales in the months to come. Existing home sales in June fell by 5.1%. The housing market is currently experiencing an excess of inventory as Capital Economics reported an 11% homeowner and rental vacancy rate in the second quarter of 2010, a new record high. Capital Economics states, "relative to the rising trend of the last 30 years, that suggests around 0.6m [or 600,000] properties than normal are currently sitting empty." Capital Economics also suggested that builders are adding to the excess supply, noting a 28% annualized jump in residential investment in Q210 alongside a 19% decline in housing starts from April to June (down 14.9% in May and 5% in June). All of these statistics in addition to macroeconomic conditions is what economists at Moody's believe are hindering economic recovery. "We expect real GDP to advance nearly 3% this year, monthly payroll employment gains to average close to 125,000, and the unemployment rate to end the year back over 10%," Moody's reported. "With the economy slowly recovering, we expect home sales and residential construction to end up slightly stronger this year than last year while house prices will depreciate a bit more." So, what does this all mean to you? Few, if any, investors are capable of recognizing a market top or bottom. Successful investing demands we buy when markets are CLOSER to their bottoms and sell when CLOSER to their highs. I can, confidently declare that today's real estate market is as close to a bottom as it has been in a generation! As such, the time to buy is NOW!!!

What's better? Exotic alternative investments like fine wine or real estate? Submitted by Jerry Cohen on Mon, 08/09/2010 - 14:12 Unlike many of our former "what's better" scenarios, this one has a distinct advantage...fine wine grows better with age just like real estate! Let's face it, unless the property has a vineyard, it also tastes better than real estate. But, to be perfectly fair, we will take the time to actually crunch the numbers in order to arrive at the most unbiased conclusion possible. Investing in Liquid Assets Investment grade wine may not be a part of the average portfolio but it does provide a fair estimation of many forms of alternative investments enjoyed by the affluent such as art, wine, jewels and other investments. All tend to hold their value or increase over time (good inflationary hedge) just like real estate. For example, consider a 1961 Chateau Latour which originally sold for 25 Pounds...and which now would fetch an estimated 35,000 Pounds...over a 15 percent annualized return (Not Bad!) which decimates long term returns in the stock market, bonds or cash holdings. But, how does it hold up against real estate? While fine wine may be the winner in the "liquid assets" category when taken literally, there are some very real limitations. Not only is it subject to breakage or spoilage (egads!) but it has zero residual value when not in use. Unlike real estate, wine rarely generates cash flow...in fact, once it's used, the value is all but gone. In short, it's an all or nothing proposition. Fine wine is difficult to impossible to leverage in order to purchase additional assets, requires a specialized type of buyer and is subject to additional costs including storage fees. Comparatively, real estate is easily rented when not in use, can be leveraged or refinanced to purchase additional assets and is also subject to additional costs but with the advantage of strong tax incentives/write-offs. What about downturns? Believe it or not, there is a fine wine index (actually a couple of them) including the Liv-Ex based Fine Wine 100 Index tracked via Bloomberg which is up just over 14 percent annually since summer of 2001...an impressive feat given the current economy. The U.K. based Wine Investment Fund found that investment grade wines generate about 15 percent per year in average returns. However, fine wines also degrade (literally and fiscally). For example, during the most recent global downturn, the LivEx index lost roughly 22% (a surprisingly similar percentage as that experienced in the real estate market) but has since rebounded and out-performed the stock market by a substantial margin. So...which is the better investment? There is plenty of room for both in a well balanced portfolio but for those just starting out, real estate provides the flexibility, tax incentives and "real life" access that will allow you the means to fully enjoy that fine wine once the time is right. See you at the top! Reprinted from Chris McGlaughlin

A Change in Paradigm Submitted by Jerry Cohen on Thu, 08/05/2010 - 11:40 Real estate is like any other business...sooner or later you will encounter a crisis. It may come in the form of a nationwide financial meltdown that disrupts funding for millions or something as simple as an overtly negative individual. Whatever the form, learning how to mitigate damages and restore a positive attitude is a key component to success. 1. Don't be Defensive. Many old-timers will tell you dog can smell fear...the same applies to an audience whether it be your banker or a real estate seminar. People understand power and often turn against those that are perceived as weak or on the defensive. Remember, actions speak louder than words so guard your voice, words and body language. 2. Never Repeat a Negative Question. Rather than reinforce a negative question, try to rephrase it or move ahead. It's better to take a small hit than give more time to an issue unless it is absolutely essential. 3. Never Blame Others. It puts you in a bad light and tends to make people distrust you...plus, it leaves people wondering what you might say about them behind their backs. 4. Don't Argue. You might be right but the chances of convincing someone else decrease the more they defend their position to you. Instead, validate their position and explain your own thinking or simply move ahead. Not only does it conserve energy but it frees your mind from the feeling of dependence and allows you to see things from a different perspective. 5. Irrelevant Questions. This is perhaps one of the most frustrating situations for an investor or real estate pro to encounter...endless, tiresome and totally irrelevant questions. Unlike overly aggressive, negative or argumentative clients it's not possible to simply "agree to disagree" and move on; instead, you must assume the person simply doesn't understand or has a different agenda. If it's possible to anticipate where they went wrong, try to bail them out to help them "save face"...it shows concern and sensitivity. For those with their own agenda, try to determine if it is "helps" or "hurts" your position then act accordingly. 6. Plan for Murphy's Law. Remember Murphy? Whatever can go wrong will go wrong so plan ahead for it. Put contingencies in place especially when it matters the most. For example, when planning an open house be sure to plan for inclement weather. Putting together a big media blitz, find another venue to publish in case the first falls through. Taking out a private loan, have a second on standby.

Rough Economic Road Requires New Rules Submitted by Jerry Cohen on Wed, 08/04/2010 - 06:06 If recent history has taught us anything, it's that good guys don't always finish first. In fact, more than a few of them are barely making ends meet. After a lifetime of saving, setting aside 10% to "pay yourself first" and otherwise playing by the rules, it is disheartening to see a shrinking portfolio, upside down mortgage and mountains of bills piling up. Fortunately, in every cloud there is a silver lining...or to put it another way, in every promised change there remains opportunity. Find out how short sales and real estate can put your back in the driver seat with these new rules for the rough economic road ahead: 1. Prioritize your portfolio. It takes commitment in order to become wealthy. There are a lot of distractions along the way; friends and family who have great ideas about how to spend your money, business ideas that can distract and even other attractive alternatives. Diversifying funds is one thing but rarely - very rarely - do people excel at multiple areas. Recommit to achieving wealth and stick to what you know. 2. Deal with the fear and the money will follow. Most novice investors erroneously believe their number one problem is a lack of money...it's not. It's fear. Fear limits objectivity, reduces the ability to effectively communicate with potential partners or other investors and minimizes action. 3. Understand this one fact...Recessions End! There is an old adage which states "all good things must come to an end". The same applies to bad things as well. Recessions do not last forever. People tend to assume that good times will last forever or bad times will last forever...they are wrong on both counts. During bad times, prepare for the good times. During good times, prepare for the bad times. It's simple but effective. 4. You Have to Play to Win. Let's face it, after the past few years, most investors are reluctant to try anything new but they can't afford to miss the next rally if their portfolio is to be restored. It's a lot like riding a wave...get in the water and wait till it comes to you. Fortunately, investing in real estate isn't new - in fact, it's one of the most tried and true methods used to generate fortunes for decades. Remember, despite recent losses, the majority of homeowners are not behind on their mortgages. Likewise, rental rates are expected to climb for the next several years as the 18 to 29 year old cohort delays the purchase of a home. 5. Get a Financial GPS. You need to know your destination in order to track the right path. Write down your retirement goals, determine what it will take to get there (on an annual basis) and then begin to seek out deals that fit your forecasted results. Start sooner rather than later. Not sure where to begin? Join one of our free webinars...no string attached. Just sit back and listen to what others are doing then decide if it's right for you. Simple, effective solutions to help you navigate the tough financial journey that lies ahead.

HELP, HELP!!! The sky is falling. Submitted by Jerry Cohen on Tue, 08/03/2010 - 06:54 Do You Suffer From Chicken Little Investor Syndrome? Remember the story about "Chicken Little Investor" who always believed the market was falling? Apparently, some people didn't quite learn the right lesson from this little nursery rhyme because even as adults they seem to always be waiting for the next shoe to drop, the next calamity just around the corner and the next reason society as we know it will come to an end. Unfortunately, Chicken Little Investor Syndrome is more than a mere nuisance; when it comes to investing, it can be downright fatal to your portfolio. Rather than taking a calculated risk in order to earn a given reward, those suffering from Chicken Little Investor Syndrome are busy planning for a financial famine. While a bit of good old fashioned caution is certainly warranted during tough economic times, too much of a good thing can stifle business and investment potential. Find out how you measure up by comparing some of the most commonly encountered clique's against the current economic reality: Chicken Little Investor: I'm not investing in short sales or other real estate until the unemployment rates improve. Fact: Unemployment may be high but prices of mortgages (including interest and taxes) are going down along with the cost of purchasing or financing a new car, groceries and even gasoline. Chicken Little Investor: People are spending less and can't afford to purchase a house or property. Fact: Yes, people have reduced spending and started saving so they are better able to afford mortgage payments without the additional burden of credit card and other payments. Chicken Little Investor: Some experts believe the nation is heading toward the next Great Depression. Fact: Maybe we are and maybe we aren't. Either way it is important to remember that throughout the widespread unemployment and hardship during those years, prices were very affordable and the aftermath was considered one of the greatest generations of prosperity, innovation and information in the history of this nation. It also resulted in tremendous opportunity for those that were prepared to take advantage of the low prices and ability to navigate a new economic environment. In fact, history supports the concept of opportunity arising from the ashes of tragedy. For example, look at Japan after WWII; not only did they rebuild but the Japanese soon became a model of efficiency for much of the developed world. Likewise, China is now one of the most rapidly growing economies in existence despite tremendous political and social upheaval. Bottom Line - Don't be so frightened by your perception of the current economic climate that you are susceptible to even greater risk in the pursuit of security.

Boom for landlords Submitted by Jerry Cohen on Mon, 08/02/2010 - 08:32 Barrons - Landlords rejoice Demographic and economic forces, together with some perversities of government policy, are combining to push the share of ownership back to where it was in the early 1990s. Already, in the wake of the housing bust that brought on the Great Recession, the share of U.S. households owning homes has slid steadily—from 69% at its peak in 2004 to 67.2% in this year's first quarter. And the rate is likely to fall to its 1993-94 level of 64% by 2015. The flip side of this trend is a rising rental rate, which probably will hit 36% by 2015, versus 32.8% in 2004. Every percentage-point increase represents nearly 1.3 million households, and the average household includes more than two people—so roughly 10 million extra folks could be moving into rentals over the next five years. Why? From now through 2015, the long slog that will unfortunately characterize the economic expansion will bring slow growth in jobs and wages. That pace of improvement should be just strong enough to permit new households to form, but not robust enough for the members of those households to afford to own homes. In addition, lax lending standards, fraud and predatory lending practices— key factors in the unrealistic bubble in home ownership in the mid-2000s and the subsequent debacle—appear to have become rarer, at least temporarily. Demographics also will deal home sellers and builders a clear blow. Not surprisingly, the home-ownership rate tends to rise with age. For example, while the overall U.S. rate is 67.2%, the rate for households headed by someone under 35 is just 38.9%. Thus, whenever the age distribution of households tilts in favor of younger adults, the overall home-ownership rate declines. That happened in the early 1980s, when young (and numerous) baby boomers began to form households. And, says demographer Peter Francese, former president of American Demographics magazine, a similar tilt is likely over the next half-decade. Francese projects substantial growth in households formed by people under 35, who mainly rent rather than own. Worsening the shift will be a decline in the number of households led by people 35 to 49 years old—the very ages when there is normally a huge jump in ownership. Francese does expect a rise in households led by people 50 and older, but the boost to ownership from this won't be great. Home-ownership rates tend to level off when Americans reach their late 40s and early 50s.

Drop in Delinquency Signals Changing Times Submitted by Jerry Cohen on Sat, 05/08/2010 - 07:28 The 30 day delinquency rate is a leading indicator of housing market conditions. In other words, it’s one of the first indicators analysts see as a market begins its turn around. These leading indicators are the tips investors use to determine when to move into a market, and right now is the time to move into the rental real estate market.

The Falling Delinquency Rate
The fact that the delinquency rate is falling is good news for our country. Delinquency on mortgage payments hurts the economy. However, a falling delinquency rate is an omen for real estate investors. It indicates that the boom is probably over and the opportunity to take advantage of peak ROIs is passing by.

If a dropping delinquency rate is an omen, then back to back months with a declining delinquency rate is a sign of the times. And, that’s just what has happened.

According to this Wall Street Journal article, March logged another 8.6% drop in mortgage loans that were 30 days past due or in foreclosure. This is the second month in a row that the delinquency rate has dropped.

Beating the End of Year Trend
Add to this the fact that delinquent mortgages dropped from 15.02% to 9.47% in Q4 of 2009. Historically speaking, there is a sizable upsurge in delinquencies in the final quarter of every year.

For whatever reason (heating bill increase, the holiday season, etc.), more home owners tend to get behind on their mortgage payments around the end of the year. However, in 2009 homeowners reversed this trend and the delinquency rate plummeted against the normal trend.

No Time Like the Present
Putting these two factors together, it’s clear that things are changing for the real estate investor. The prime time to invest is right now.

The Rise of the Woman Investor Submitted by Jerry Cohen on Wed, 04/14/2010 - 16:01 The number of woman investors is on the rise and that’s a good thing. There’s a great need for woman investors.

The Importance of the Woman Investor
Nearly 10% of women are currently divorced. Almost 50% of women over 65 years of age are widowed. 84.1% of children of divorced couples are living with their mothers. Women control 60% of the wealth in America, and 80% will, at some point in their lives, be solely responsible for all household financial decisions.What’s the common theme here? A high percentage of children, both young and adult, will rely on their mother to wisely invest her money.

Why Women Need to Invest Wisely
Mothers of young children need mothers who are wise investors. As previously stated, 84.1% of children rely on their mothers to take care of them. They need their mothers to buy them food and clothing, keep a roof over their heads, take them to the doctor when they’re ill and the dentist when their teeth need cleaning and repair.But, they also need their mothers to build a nest egg. Without some form of passive income, a woman quickly becomes a drain on her family when retirement age hits. On the other hand, a woman who’s invested wisely and developed both a high net worth and a regular passive income is a real asset to her family. Her financial freedom frees her up to care for herself and help her family as they try to raise their own families

The Question Women Must Ask
If you’re a woman, don’t you want to be the type of woman who invests wisely, develops a high net worth, and controls a large monthly cash flow? You can be that type of woman, and you don’t even need any training. Contact us to find out how.

Key Factors Make This the Best Time to Invest in Real Estate Submitted by Jerry Cohen on Wed, 03/31/2010 - 08:58 The current housing market is primed to offer a wealth of opportunities to real estate investors. There are two critical factors that are playing into this.

Disparity Between Rise in Household Formation and Drop in New Home Construction
According to the U.S. Bureau of the Census, there is one birth every seven seconds, one death every 11 seconds, and one person emigrates to the U.S. every 37 seconds. This is a net gain of one new person in the United States every 13 seconds.

Every day there are 2,335 new people in the United States. That’s 2,335 new people who will need housing. The population continues to grow and the need for housing becomes greater by the day.

On the other hand, since 2005 new home building has been in a colossal slump. The Builder Confidence Index dropped from the high 60s in 2005 and currently sits at a paltry 15.

As household formation continues to rise and new home building continues to fall, distressed property sales have rushed into the vacuum created by the lack of new home construction.

Fed Dumps an Enormous Amount of Money Into the Markets
The Fed has already poured billions of dollars into the American economy in an attempt to jump-start it and get money flowing around the country again. Now, they’re expected to dump another $1.2 trillion into the economy according to the Washington Post.

This influx of “free money,” intended by the Fed to lower the cost of borrowing for home mortgages, is a godsend for real estate investors.

The drawback is that this new move by the Fed leaves only a small window through which real estate investors can jump, and that window will close quickly.

Strike While the Iron is Hot
With distressed property sales filling a void in the housing market, and trillions of dollars pouring into the financial markets, we’re looking at an unprecedented time in the history of real estate investment. Returns on investment will be amazing, giving real estate even more investment value.

The catch is that most investors will simply wait too long to act. Investors need to take advantage of this opportunity before housing prices start to rise. Getting ahead of the wave is always the key to a good investment. You want to buy ahead of the market move in order to take full advantage of its movement.

The window of opportunity on this “golden moment” will close quickly, at which point many investors will have missed out. While real estate will continue to be a solid, stable investment, the era of historic returns will pass by most investors. Don’t be one of those investors. Contact us today and we can answer all your questions about how you can get a slice of this massive pie.

More Ways EquityBuild Helps Communities Submitted by Jerry Cohen on Fri, 03/12/2010 - 12:22 I've always been proud of the variety of ways EquityBuild helps the communities we work in. In addition to giving a great bunch of investors doubt-digit returns on their investment, we are also helping low income families find comfortable, updated housing.However, this week I began to think about all the jobs EquityBuild is creating as we renovate homes and get them ready for rental investments. The economy has been rough the last few years, but EquityBuild has been helping maintain jobs in spite of the economic trouble the United States has been in.

Pre-Purchase Jobs
Prior to giving the green light on a project, we do extensive due diligence studies. This means hiring appraisers to assess the value of the property, plumbers and electricians and other trades people to ensure those systems are up to date, and title professionals to do title searches.Many of these people own their own business and have seen some pretty hard times since the housing market collapsed. But, EquityBuild is playing a role in helping them get through the downturn in the economy and hang on until better times come.

Renovation Jobs
Those same plumbers and electricians are the ones we hire to do any necessary repairs and upgrades to the homes we run through the EquityBuild system. We also hire framers, dry-wallers, exterminators, kitchen remodelers, and general handymen to do a ton of work around a home before putting the property in the hands of an investor.Qualifying a home for section 8 housing means having everything up to government standards. We do that and more.A property investment that's up to EquityBuild standards must have at least 35% equity cushion built into it. This often means finding sleepers that need a great deal of repair. The repairs add value to the property and ensure it starts an investor with at least 35% equity cushion in case a quick sale is necessary.All that value-adding repair means a lot of jobs for people in the community.

The Joy of Giving Back to a Community
We find the process of discovering good investments, fixing them up, and putting them in the hands of investors to be very satisfying. But, it's equally satisfying knowing how many families benefiting from the work EquityBuild generates in a community.

Section 8 Areas of Need Submitted by Jerry Cohen on Wed, 03/10/2010 - 14:14 Getting properties qualified for the section 8 housing voucher program is an integral part of what we do here at EquityBuild. We’re always on the lookout for areas of the country in need of quality homes for low income families.

Assessing the Need
The first thing we have to do is assess a need for section 8 housing. If an area doesn’t have a need for section 8 housing, it really doesn’t have a need for EquityBuild’s system either.I found a dynamic map that illustrates low income housing need around the country at the HUD website. It shows the kinds of “pockets of need” we use as a starting point to search for undervalued properties for our system.

Current Pockets of Need
There are a number of hot spots in the U.S. right now. Each of these has a high incidence of families living in the following conditions:Lack of complete kitchenSubstandard plumbingMore than one person per bedroomMore than 30% of income spent on housingIf more than one of these conditions is present, it is considered a severe problem.Current areas where severe problems exists are: the New York area, Southern California, South and Central Florida, large sections of Arizona, and a line of counties stretching from Milwaukee to Chicago.In fact, I recently wrote about Chicago accepting new section 8 voucher applications. At that time, we were issuing a strong buy recommend for the Chicago market.

Only One of Many Factors
Need is, of course, only one of the factors we consider before targeting an area for our program. However, it is a crucial factor, and one which drives us. Helping investors earn substantial returns on their investment is only one of the reasons we do what we do at EquityBuild. The other reason is that we want to give back to communities that are in need, and providing good places to live is one way we do that.Keep reading the blog and I’ll keep you posted on any areas of the country we identify as great opportunities to improve your portfolio. In fact, go to the home page and click the RSS button so you don’t miss a single announcement.

Increasing Foreclosure Sales Mean EquityBuild Needs More Investors Submitted by Jerry Cohen on Fri, 02/26/2010 - 09:30 Foreclosure Sales Trends
Of the residential properties sold in the U.S. in 2009, one-fifth were foreclosure homes. In some areas, such as Merced, California, foreclosed homes were almost two-thirds of all homes purchased.

We’re now really feeling the fallout from the mortgage crisis. Even owners who have tried to ride out this devastating sub-prime wave have had to give in. This has left the residential housing market full of homes that went through foreclosure.

Now that the economy is stabilizing a bit, those foreclosed homes are being purchased in the thousands and at great bargains.

Who’s Buying These Foreclosures?
It’s more and more difficult for private owners to secure financing for new homes, and many owners have elected to rent, instead of own, to avoid the big-ticket repair items that can jump up and surprise a home owner.

So, who is picking up these great deals?

The answer is real estate investment companies like EquityBuild. Unfortunately, this leaves average investors out of the loop in a residential real estate market that has an unprecedented level of really great deals just waiting to be snapped up.

However, EquityBuild is leveling the playing field.

EquityBuild is Capitalizing
We’re pretty proud of the turnkey system we’ve developed. In the current market conditions, it’s really the only way that most average investors can take advantage of good deals on residential properties that can add double-digit returns to their portfolio.

We arrange for almost all of the money to be fronted, allowing our investors the opportunity to easily get into real estate investment. All our investors need is good credit, some equity, and consistent income.

If you have any questions about our system, you can read more about it or contact us for more information.

Mortgage Market Crisis Leads to Changes in Investment Real Estate Submitted by Jerry Cohen on Thu, 02/11/2010 - 09:03 Investment Real Estate Landscape Changes
The sub-prime collapse that led to that current “Great Recession” has forced legislators and administrators of financial institutions to rethink lending methods and make changes in laws and policies. These these changes have profoundly affected real estate investment.

Traditional lending agencies are tightening up their purse strings more than ever, making it more difficult for home owners and investors alike to receive a loan. As additional changes in the mortgage sector are rolled out, these traditional lenders will tighten the strings even further.

EquityBuild Helps Investors Take Advantage of Changes
Investors might have a negative outlook for the real estate investment market, However, for investors working with EquityBuild, this market is ripe for some amazing deals that will turn a significant profit.

EquityBuild is uniquely positioned to take advantage of the many great deals that are hitting the market right now. There has never been a better time to invest in real estate than right now.

As changes in the real estate investment business happen, EquityBuild will continue to stay ahead of the changes and ensure that your expectations are in harmony with current market conditions. Our turnkey investment opportunity will continue to be the best method for taking advantage of the outstanding opportunities in real estate investment. There is no training, no classes, mentors, DVDs, books, or experience necessary to take advantage of the EquityBuild Opportunity. Why not contact us today to find out more.

Immigration Fuels Increased Demand in Rental Housing Submitted by Jerry Cohen on Mon, 02/08/2010 - 11:13 Each year between 2005 and 2008, over 1 million people were granted permanent residence in the United States. In that four year span, 4 million new people were looking for housing in America. That’s a lot of pressure on the rental housing industry to provide new housing options.

History Attests to Immigration in Times of Hardship
In the early years of its history America was a bastion of freedom. It was the place everyone wanted to be because it was the one place where you could start over and, in your lifetime, create a quality life for you and your family.Unless your heritage is american indian, at some point, your ancestors sought the same chance for a better life that people are still seeking today. Irish immigrants came to America to escape the potato, western and northern europeans fled extreme poverty, and eastern europeans were dodging political oppression.Regardless, people came in droves to make a new home in America.

The Current Worldwide Economy
While the scale of immigration has changed, the fact that the people of the world look to America when hardships come is nothing new. In America, we’re feeling the effects of a recession. It can be extremely frustrating waiting for the economy to bounce back so we can stop cutting back and increase our standard of living a bit. However, we often forget that the global economy is feeling the same effects.While, in America, we may have to cut down on the number of times we eat out or cancel our gym membership in response to a struggling economy, in many countries cutting back means eating less than three meals a day or living on the street. Rather than put their families through such conditions people come to America where they can at least assure their family of food...and housing.

Rental Housing Answers Massive Immigration
For the keen investor, this influx of millions of people is a gold mine just waiting to be discovered. Every one of these families will need housing and none of them is in a position to own a home. So, they seek rental opportunities en masse.At EquityBuild we’re already positioned to supply quality housing for these new immigrants, and our turnkey opportunity makes it easy for you to be a part of offering people a better life while making a nice return for your investment.

Households in Transition Make Decision to Rent Submitted by Jerry Cohen on Thu, 02/04/2010 - 14:25 Life transitions are causing many people to choose renting over home ownership. In fact, many former home owners have chosen rental over ownership. Let’s look at some of the factors that have people flocking to home rental.

Loss of Employment
At the beginning of the current recession, in December of 2007, the unemployment rate was at a manageable 5%. Since that time unemployment has increased drastically. As of December of 2009, the unemployment rate in the U.S. has risen to 10%.As people lose their jobs, they find it more and more difficult to sustain home ownership. Often unemployed people can find a way to buy some time. They supplement their unemployment benefits with money from their savings accounts to make payments and repairs on their home. However, this situation can only last so long before they are forced to look at other alternatives.One alternative people are seeking is renting over home ownership. Renters can keep their regular payments at or below their former mortgage payments while avoiding major expenses like furnace replacement or roof repairs. This is very appealing to unemployed couples who are struggling to keep up with the bills.

Change in Marital Status
Fifty percent of 1st marriages in the United States end in divorce. The numbers get even higher for people who give marriage another shot. Sixty-seven percent of second marriages end in divorce and 74% of third marriages end in divorce.Each time a couple goes through a divorce it makes continued home ownership that much more difficult. Often, these divorced couples end up liquidating their home and splitting the proceeds from the sale. Half the proceeds are rarely enough for a down payment on a new home and living off one income or alimony is often not enough to cover mortgage payments and repairs.These newly single individuals turn to rental housing as, at the very least, a stop-gap measure for their housing needs.

Aging
You might be surprised to discover over 4.1 million households in the United States, with household heads at or over the age of 65, rent their home. Home rental is a logical choice for many seniors. As we age, our bodies become less able to deal with repairs or even accomplish tasks such as shoveling and lawn care that are a consistent part of home ownership. Renting often means that someone else will take care of the lawn, shovel the snow, clean the gutters, etc.This simplifies not only financial obligations for seniors, but also home care in general.

Benefitting From Changes in Housing
The rental market is changing at a rapid pace, and it has created some great opportunities for investors who are willing to get in front of the rising rental wave and ride it.

Quality Property Appraisals at Risk Submitted by Jerry Cohen on Wed, 01/27/2010 - 11:20 In May of 2009 a new Home Valuation Code of Conduct (HVCC) was adopted. The intent of the HVCC is a noble one. It was designed to keep lenders from influencing appraisal values via coercion. Unfortunately, there are so many holes in the code that there is a great deal of doubt as to whether the HVCC will ever accomplish what it set out to do.

The Home Valuation Code of Conduct

Originally, the HVCC had a noble intent.

Coercion has long been a problem for certified appraisers. While they are trying to do their job and accurately value a property, the lender is bent on making as much profit as possible (generally at the expense of the end consumer). As such, lenders often coerce appraisers into producing numbers that fit their model rather than numbers that are accurate.

This practice was exposed when Attorney General Andrew Cuomo subpoenaed Freddie Mac and Fannie Mae, but it has been going on for some time. The HVCC was created to remove such opportunities for coercion.

In an effort to eliminate this coercion, the HVCC attempted to set up guidelines that would accomplish several things.

The drafters of the HVCC wanted to minimize multiple requests for valuations, thus negating lenders’ attempts to get appraisers to “hit the right numbers.” They also acknowledged the need for impartial oversight. This oversight could only be impartial if the lending agents had no ownership of the valuation entity.

There is little doubt that the problem of coercion needs to be addressed, and the HVCC is indeed a noble attempt, but, as the saying goes, “the road to hell is paved with good intentions.”

Impact of HVCC on the Appraisal Process

If you haven’t yet read the HVCC, you can read the code in its entirety from the Appraisal Press’ website.

In short, the HVCC is intended to address the issues of lenders coercing appraisers into giving inaccurate appraisals. That’s all well and good and it sounds like an appraiser’s dream come true. No longer will lending agents be able to twist appraiser’s arms until they hit the right number.

That would be true if there weren’t some major flaws in the code that allow lenders to circumvent the system.

According to the HVCC independent appraisers will be required to have their appraisals go through an Appraisal Management Company (AMC). In doing so, the appraiser will lose 40% of their fees to the AMC. As a result, appraisers will either lose nearly half their income, or they will be forced to raise their prices.

The latter is, of course, the more likely scenario. Appraisers will have no choice but to raise their fees to cover the extra overhead. In the end, the buyer will be left with the extra expense and it’s the buyer that the code was supposed to be protecting in the first place.

Increased appraisal fees also drastically increase volatility. As appraisers raise their fees, AMCs are forced to import appraisers. These appraisers lack intimate knowledge of the local market, a necessary factor in accurately appraising properties.

In reality though, as the code is currently worded, it won’t be AMC fees that drive certified appraisers out of business. It will be the fact that appraisers are the ones incurring regulatory risk.

The governing authorities will be watching appraisers closely. On the other hand, Automated Valuation Models (AVM) or a Broker Price Opinions (BPO) won’t be scrutinized. This can only result in lending agents using AVMs and BPOs in lieu of certified appraisers. Valuations will continue to fall under the coercion of the lender. In addition, the accuracy the HVCC was hoping for will suffer as loans will be made based on models or the opinion of uncertified individuals.

How Are Real Estate Lobby Groups Trying to Impact This Approach

While the above glaring issues could be disastrous for the real estate industry, few are proposing that the HVCC be killed. However, major renovations are needed to create a workable version of the HVCC. As it currently stands there are too many loop holes for the code to have its intended effect. While the code targets lender tactics, the many gaps in the code allow lenders to continue their corrupt actions while the buyer and the appraiser end up getting caught in the cross fire.

Lobbyists are currently petitioning Congress rethink the HVCC and reword it into the airtight type of document that frees trained professionals to give accurate assessments of properties.

If they are successful and the HVCC gets a nice makeover, it could go a long way to ensuring integrity in the real estate industry.

Investing Doesn't Have to Be a Win-Lose Proposition Submitted by Jerry Cohen on Tue, 01/19/2010 - 14:33 In the world of paper investing, there is a winner and there is a loser. This is completely unsatisfactory in light of the fact that there are some great win-win investing options available.

Paper Investing and the Win-Lose Method

Invest in paper money and you quickly find out that there is always a loser in the mix. If you invest in stock in a company, you're betting that the market will go up. Of course, the person who sold you the stock is betting that it will go down. One thing is for sure in this scenario...

One of you will lose.

Actually, the winner in this great paper chase is also a loser in some sense. With paper investing comes great stress. Investors lose sleep over whether their investment will grow or their nest egg will collapse right before their eyes.

Why Real Estate Investing is a Win-Win Investment Strategy

For the Investor
Investing in rental real estate, on the other hand, gives us the best of both worlds.

The investor gets a solid return on their investment. This return comes, not just in equity built up, but in real-time profits that come from renting residential properties. The return an investor gets from rental properties is especially impressive in light of the stability of the investment. It's a combination you can't get in any other investment.

Plus, if the investor accepts section 8 housing vouchers, they can sleep much easier than their paper investor counterparts.

First, because section 8 housing is subsidized by the government. The greatly reduced portion of the rent payment that the tenant is sometimes responsible for makes it easier for the renter to pay and they're more likely to do it on time, and the government subsidy guarantees that the overwhelming majority of the rent will reach you on its due date.

Secondly, property owners are often concerned about tenants damaging their property. But with government subsidized housing, tenant damage or neglect is grounds for disqualification from the program. The risk of losing the subsidy that pays most or, in many cases, all of a tenant’s rent serves as an an enormous incentive to take proper care of your investment.  HUD wants to make sure tenants are keeping the property in good condition.

For the Renter
On the other side of this investment is the renter. In the middle of an economic downturn, when many are losing their jobs and their homes, investors are providing people with a comfortable home at a price they can afford even when their income has been drastically cut.

EB's Turnkey System of Investing

Unfortunately, many investors are unable to tap into such a great investment vehicle because they lack the resources to do so. Even if they have the capital to invest in a property, they often lack the knowledge to discern a good investment from a bad one and they lack the connections to get repairs done at a low enough cost to make any repairs or upgrades feasible.

That's why we're proud to have developed a system that relies only on an investor's good credit and minimal cash out of pocket. Compare that to any other investment class and you’ll clearly understand why real estate is a truly unique win/win investment!

What other class of investment affords you the opportunity to own a net cash flow producing asset bought almost entirely with other peoples’ money while at the same time providing quality housing for people desperate for an opportunity to house their families in a safe, clean and affordable home located in neighborhoods comprised of mostly homeowners? And, best of all, EquityBuild’s turnkey approach assures you the benefit of our more than a quarter century of experience while we do virtually everything! All you will ever be required to do is complete and sign some forms and call Fed Ex to pick them up.

If our turnkey system is new to you, you can read about this real estate investment opportunity here. We're constantly adding new properties and giving investors more opportunities to start their investment portfolio or grow their existing portfolio.

New Section 8 Housing Vouchers Means Huge Opportunity For EB Investors Submitted by Jerry Cohen on Thu, 01/14/2010 - 13:41 Recent economic conditions have pushed officials in Chicago to open up an additional 40,000 slots for section 8 housing. As a result, the need for qualified section 8 housing has exploded, giving investors a window of opportunity to add to their portfolios.

Sudden Chicago Housing Shortage Addressed
After 10 years of refusing to accept new section 8 housing applications, Chicago officials have opened up 40,000 new slots for applications. These 40,000 new families will be looking for qualified section 8 housing in a market that isn’t ready to meet such a demand.

It’s no secret that the economy continues to struggle. In some ways things have gotten better, but the economy is still standing on shaky legs. The return to economic strength is taking far too long for many families. In the face of such conditions an overwhelming number of families have been forced to seek housing help.

The number of families applying for help is increasing rapidly and this situation has forced Chicago officials to take drastic measures by opening a section 8 housing list that they had intended to keep closed.

Equity Build Helps Investors Fill the Housing Void
The spike in section 8 housing applications offers a great win-win situation for investors to start, or add to, their portfolios, which is why Equity Build has a strong buy recommendation for the Chicago market right now.

This new demand for section 8 housing offers investors a chance to add some great real estate investments to their portfolio. And, since the government subsidizes section 8 rents, it saves chasing down rent payments or covering them out-of-pocket.

The question regarding this hot Chicago market is not really whether there are good investment opportunities, but rather, how long will the window be open. Will the list close next quarter and remain closed for another 10 years? It’s hard to say.

Families Still Waiting on CHA, Section 8 Lists Submitted by Jerry Cohen on Fri, 10/02/2009 - 12:07 That's the title of yet another article about the desperate need for the sort of Section 8 housing that EquityBuild provides. Click here to read the whole thing.

Lessons Learned at a Financial Symposium Submitted by Jerry Cohen on Wed, 08/05/2009 - 15:44 I spent some days recently at the Agora Financial symposium in Vancouver, British Columbia. Besides the fact that Vancouver has great Asian food, I learned several things.

One thing I learned is that most of the big-name analysts who were there don't believe the market has bottomed. This includes, by the way, Doug Casey. As a result, most of their investment recommendations were "defensive."

Defensive investments involve, by definition, the basic necessities of life. These are the things that people don't cut back on -- even in hard times. They include metals, industrial commodities, agricultural products and energy.

Most folks don't think of housing when we think of necessities, but they clearly should. What is more essential than housing? I think the main reason that people don't think of real estate as an investment instrument is simply that there are so few ways to invest directly in managed properties -- the EquityBuild way.

Moreover, real estate differs from other necessities in that it is all local. When we talk corn or copper, there's one price. Real estate, however, varies radically by location. So you need to invest in the right area.

Properly located real estate has several unique qualities as an investment class that favorably distinguish it from virtually every other sector. Banks and mortgage companies continue to be willing to lend 75% or more of it's value.

There are many markets where it can be rented, producing real time, ongoing profits while the income pays off the loan. The result is that 75% or more of the asset value is purchased for the investor by someone else. It is also tax-advantaged in ways no other investment class is.

On top of that, demand for rental units is exploding in many, many markets around the country. Rents are rising while the cost of money and property is aberationally low.

Finally, residential real estate is the ultimate inflation hedge. If the combination of these features don't make real estate the investment to buy and now the time to buy it, I'll wait patiently until the analysts offer me a more compelling investment alternative. Until then, I'm in residential, rental real estate and I'm in with both feet and more excitement than I've had in a long, long time.

Businesses Move South During Downturn Submitted by Jerry Cohen on Sat, 06/13/2009 - 13:26 If you subscribe to the Wall Street Journal, you might want to check out an interesting article I read. Titled "Southern States Poach Businesses Amid Downturn," it confirms that the South is continuing to benefit from corporate migration out of the more expensive states.

The title is a little misleading, however, because California is one of the high-cost states that is losing businesses to the traditional South. Regardless, this continuing migration is a big part of the reason that housing markets in the South, where EquityBuild operates, remain strong.

EquityBuild Finance, LLC Formed Submitted by Jerry Cohen on Mon, 05/25/2009 - 20:22 Earlier this month, EquityBuild took steps to overcome a shortage of bridge financing funds brought on by frequent changes in Federal Reserve policies. This lack has been a hindrance to fulfilling a large backlog of orders.

We formed EquityBuild Finance, LLC and registered a $10 Million private placement memorandum with the SEC offering accredited investors the opportunity to realize guaranteed annual returns of 10-12% interest depending on the size and term of the investment. Investors' dollars are secured by the assets of the company which are cash and real estate secured first position notes lent exclusively to very well qualified individuals and against property with a minimum equity position of 30%.

The company is presently developing a web site along with the sales, marketing and administrative components. Talks are beginning with self directed IRA administrators in an effort to offer their clients the opportunity to invest some of their retirement funds for premium returns.

EquityBuild, Inc investors will enjoy faster bridge loan underwriting and will be working with a lender that has a rich understanding of their investment objectives and a new strategic partner in EquityBuild Finance ready to play and important role in order to facilitate those objectives.

Just a Word or Two Submitted by Jerry Cohen on Tue, 03/17/2009 - 14:42 I just got a nice note from a client on our waiting list reminding me that I've neglected this blog. The reason, frankly, is that EquityBuild is backlogged at the moment. We've been swamped with demand and I'm working overtime to bring new investment properties to market.

We've been scaling up operations to help investors and the renters who need places to raise their families. I'll bring you up to date on some of the details of our efforts soon.

Stimulus Bill Worrying Charities Submitted by Jerry Cohen on Sat, 02/28/2009 - 14:17 Unfortunately, many charitable organizations today are suffering. Not only have many of their contributors lost significant wealth from the fall in stock prices, the stimulus bill lowers tax deductions for charitable gifts. Here's one article on this problem.

Because our investment vehicle requires only good credit and no cash outlay, we think it could solve many ailing charities' problems. If you know of a charity hit by the lowered deduction limits, please have the administrator of that charity contact us.

I believe we can design a giving program that will more than compensate. We pride ourselves on the socially responsible component of our investment but would like to do more in these difficult times.

Demand for Rental Housing Assistance Up Submitted by Jerry Cohen on Sun, 02/22/2009 - 10:38 I've written in the past about the impact of the current housing and credit crisis on rental demand. Simply put, increased foreclosures create the need for more rental properties. This effects renters receiving housing assistance as well as renters who do not.

Read this if you would like to see some evidence that these predictions are coming to pass. Contact EquityBuild if you would like to provide homes for the increasing number of people who need them and invest in this growing market.

A Note on the Ramp-up Submitted by Jerry Cohen on Fri, 02/20/2009 - 12:19 For all those who are asking when they can expand or start their portfolios, the EquityBuild team is making good progress. We're bringing properties to market now and will increase that rate in the near future. Lenders are more interested than ever in our traditional value-based approach to investments.

I realize that a lot of people have experienced significant losses from stocks lately. Believe me, there is a way to more than recover. All you need is a history of responsible credit management and patience.

The Right Place at the Right Time Submitted by Jerry Cohen on Thu, 02/12/2009 - 10:31
An interesting thing has been happening that I thought you might be interested in. The profile of the average EquityBuild client has been changing quite a bit recently. In the past, most of our investors came to us because they didn't know much about real estate. Right now, the opposite is true.

Though the overall economy is hurting, excitement among traditional real estate investors seems to grow every day. The reason is that a lot of people are making a lot of money right now -- using real estate practices that have been used for generations. Now that the amateurs and speculators have been scared out of the business, paralyzed by uncertainty and confusion, the way is clear for those who really understand how to make money in real estate. And we're happy to have you as part of the EquityBuild team.

Better than Gold Submitted by Jerry Cohen on Mon, 02/02/2009 - 19:20 Yes, we've been busy; very, very busy, in fact. We've been close to overwhelmed lately as new investors join the EquityBuild team. With far more demand for investment properties than we can deliver at the moment, I've been concentrating on expanding our fulfillment division.

Part of the reason that we've been experiencing so much demand is that word is getting out. Most of our new clients are coming to us because they know somebody who has invested with EquityBuild. Another reason, I think, is the economy.

Unfortunately, a lot of people have lost a significant portion of their retirement funds because of the downturn in the stock market. They need to make up that loss but don't want to double down in the stock market.

Now, people are looking for real assets that can't be wiped out by the gyrations of panicked traders. Income properties outside the glamor locations hit by the housing price bubble provide that security. One investor told me that owning EquityBuild properties is better and safer even than owning gold.

"You can't buy gold using only your credit," he told me, "and then rent it to somebody else to get the money to make the payments. On top of that," he said, "there's the satisfaction that comes from providing quality homes in great neighborhoods to the working families hit hardest by this economic downturn. That's as golden as you can get."

I agree.

Community Banks Continue Providing Great Service Submitted by Jerry Cohen on Wed, 12/31/2008 - 14:43 I was just reading a post by Glenn Reynolds, one of the most-read bloggers around. He links a story talking about how difficult it is to get help refinancing now that interest rates are down.

I find this baffling. Not only are lending institutions lining up to give EquityBuild clients capitol, the smaller community banks we work with are great when it comes to refinancing. That's what happens when you have solid investments and work with traditional American banks instead of the Wall Street high-flyers.

After the first of the year, I'll have more information for you about brand new sources of mortgages for EquityBuild investors. And yes, the GO Zone tax shelter has been extended until the end of 2009. There is, I guess, an upside to the credit fiasco.

You will have noticed that the clock on the front page has been changed to reflect this. Income taxes may go up next year, but you can still give yourself a tax cut. My only question is, "Why wouldn't you?"

Why Demand for Rentals Will Go Up Submitted by Jerry Cohen on Tue, 12/23/2008 - 15:13 Here's a great article by Tony Crezcenzi at CNBC.com. Crezcenzi is one of the better financial analysts out there.

If you want to understand why this is a great time to invest in rental real estate properties, read it all.

How We Don't Do Business Submitted by Jerry Cohen on Mon, 12/22/2008 - 21:02 As recent investors know, EquityBuild has been scrambling to keep up with near constant changes in Fed lending guidelines. Fortunately, we've been able to do so -- largely because the community banks we deal with are so hardworking and creative.

It's amazing how well the "real economy" works. If you'd like to read a bit about the other economy and it's high-flying bankers, click here. Warning: it may anger you.

Home Sales in South Refuse to Slow Down Submitted by Jerry Cohen on Wed, 12/10/2008 - 18:37 According to the regional index, pending home sales in October rose by 7.8% in the South. This is down a trivial 0.7% given the state of the economy and the credit confusion.

So-called experts thought the slowing would be four times that. As I've said before, this is a great time to invest in income-producing real estate in the still-growing South.

Treasury mulls plan to lower mortgage rates to 4.5% Submitted by Jerry Cohen on Thu, 12/04/2008 - 12:16 This is just one more reason that now is a great time to start building your portfolio of investment real estate.

The Real Strength of Our Economy Submitted by Jerry Cohen on Sun, 11/23/2008 - 01:17 Here's more on the strength of community banks from the Banking Administration Institute -- the leading professional organization for the financial services industry. I'm sort of wondering why we aren't hearing about this in the media.

It's nice to get some confirmation from some professional banking group of what I'm seeing. It's the small community banks that EquityBuild works with that are making things work right now. Wall Street is paralyzed and the fed is changing the rules every day. Community banks, though, are coming through for EquityBuild's clients. Sometimes they have to jump through federal hoops, but that's what they'll do to help you build a portfolio of real wealth-building investment properties.

Why Are We Doing So Well? Submitted by Jerry Cohen on Thu, 11/20/2008 - 15:54 ... when the stock market is tanking and big financial companies are going out of business? A big part of the reason, as I've been saying is that we're dealing with community banks. Here's a great article I just ran into. And here's an excerpt.

”According to FDIC data, the failure rate among big banks (those with assets of $1 billion or more) is seven times greater than among small banks. Moreover, banks with less than $1 billion in assets—what are typically called community banks—are outperforming larger banks on most key measures, such as return on assets, charge-offs for bad loans, and net profit margin.”

Tips on Buying Foreclosures Submitted by Jerry Cohen on Tue, 11/18/2008 - 12:12 If you're thinking about buying foreclosures, you might read this article linked by the giant of the blogosphere Glenn Reynolds. As an alternative, you could allow us to find great deals, great financing, fix them up, get the best renters to pay your mortgages and manage the properties for you. Just a suggestion.

More on Community Banks Submitted by Jerry Cohen on Sat, 11/15/2008 - 13:25 Here's a really good interview with the CEO of a healthy community bank. His bank is exactly the sort of institution that we do business with.

We rely on and work closely with banks that engage in the low-risk traditional real estate lending that built our country. I think we're going to see a lot more investor interest in these healthy institutions in coming years.

Mortgage Rates at Historic Lows Submitted by Jerry Cohen on Sat, 11/08/2008 - 12:06 In this market, the greatest of all assets is a good credit history. If you've lived responsibly and within your means, EquityBuild can help you take advantage of incredibly beneficial fixed-rate mortgage rates.

Now is the ideal time to build a real estate portfolio that will yield phenomenal returns. Take the steps today that will provide real wealth for your future. If you wait until everybody else decides to act, you may very well find that you've missed your greatest opportunity.

More on the Paper Economy Submitted by Jerry Cohen on Wed, 11/05/2008 - 19:43 Here is an extremely hard-hitting take on the giant impersonal financial services industry. As I've said before, that's not the sort of financial institution that we at EquityBuild deal with. The banks we connect with our investors are local community institutions with their roots in the real economy.

The Financial Confusion Submitted by Jerry Cohen on Tue, 11/04/2008 - 19:49 Yes, the near daily and often contradictory mandates being handed down by the Fed are confusing. They have even had an impact even on local community banks that didn't get involved in the subprime market. Nevertheless, we are successfully steering our investors through the maze of new rules.

There have been some delays on loan closings but we're lucky to work with banks that want to help solve problems. Our ability to predict how each and every purchase will proceed is lessened, of course, but we're still solving all the problems of our investors who allow us to do so. In confusing times, I really believe you are better off depending on someone who knows the real estate and mortage business to help guide you to financial success and independence.

401(k)s To Be Abolished? Submitted by Jerry Cohen on Tue, 10/28/2008 - 22:16 House leaders are, according to this story, talking about doing away with the 401(k) tax breaks and replacing them with mandatory government run retirement accounts. If that turns out as well as congressional direction of Fannie Mae and Freddie Mac, you might want to consider some alternative retirement plans. Call me.

Hedge Fund Trader Thanks Stupid Traders Who Made Him Rich Submitted by Jerry Cohen on Tue, 10/21/2008 - 09:34 Here's word from inside the paper economy. A hedge fund trader retires and thanks the "stupid" investors who made him rich. Somehow, I doubt that they did as well.

If you would like to invest in the real economy through EquityBuild, where we make real money by providing real homes with loans from real community banks -- call me.

Another GO Zone Update Submitted by Jerry Cohen on Mon, 10/20/2008 - 23:52 In response to all the queries; No, I haven't got a tax lawyer to confirm yet that the GO Zone depreciation benefit has been extended until the end of 2009. On the other hand, an increasing number of reports indicates that this remarkable real estate investment tax shelter has, in fact, been pushed out. As soon as I know for sure, we'll change the countdown clock and provide links.

Real Banks Say No to Bailout Money Submitted by Jerry Cohen on Wed, 10/15/2008 - 11:32 Here's a great article that really shows the difference between the real economy and the paper economy. Like the banks that EquityBuild deals with, those cited in this article don't need or want to take part in this massive drain on the taxpayers.

Call us if you would like to participate in the traditional American economy and build real financial independence for yourself and your loved ones.

The Real Economy Vs. the Paper Economy Submitted by Jerry Cohen on Sat, 10/11/2008 - 19:43 I've been having e-mail conversations with several of you about all the people whose stock market portfolios have lost so much value in the current meltdown. One person told me about a relative, a hedge fund manager, who is making a fortune by betting against the U.S. economy. My response was to ask, "How can working people win in a system based on that sort of paper wealth?"

The answer, of course, is all around you. Look at all the people who have lost years of gains in their retirement accounts almost overnight.

We at EquityBuild, however, are part of the "real economy." We're not making as much money as the big hedge fund managers but we create real value; real homes for real people. Before, during and since the collapse of the sub-prime bubble, our investors have consistently and rather dramatically increased their net wealth -- every single one of them.
I'm very proud of our entire team as well as what they have done for our investors, and I just wanted to say so here.

The Flight to Quality Submitted by Jerry Cohen on Fri, 10/10/2008 - 18:50 In answer to all your questions. Yes, we're still arranging mortgage loans for holders of our real estate portfolios. Given the headlines, some folks find this surprising. They shouldn't.

Our investment strategy is as safe as they come. Local community banks are happy to loan money to buy income producing properties that are truly great values; and our homes are. Wall Street bet on a continually appreciating real estate market, and lost. EquityBuild has never played that game.

The real estate market could go down significantly, but your EquityBuild portfolio would continue to increase in value. It isn't a "get rich quick" scheme, but it will make you rich if you have a little patience and common sense. It's too bad Wall Street didn't seem to have either.

Bailout Cost $6,500 Per Family Submitted by Jerry Cohen on Wed, 10/08/2008 - 23:22 According to many estimates, the cost of the sub-prime rescue will cost each American family, on average, $6,500. Fortunately, Congress has provided an alternative way to help solve the housing crisis -- a depreciation allowance for creating housing for those who need it most. If you would rather invest in a profitable portfolio than pay taxes, we can help you do it.

Repair Your Retirement Submitted by Jerry Cohen on Tue, 10/07/2008 - 19:18 U.S. Rep. George Miller recently said, "Unlike Wall Street executives, America's families don't have a golden parachute to fall back on. It's clear that their retirement security may be one of the greatest casualties of this financial crisis." If this has happened to you, EquityBuild's real estate investment program may be just what you need to repair your retirement.

In fact, Peter Orszag, the head of the Congressional Budget Office, says Americans' retirement plans have lost as much as $2 trillion in the past 15 months. So we know a lot of people need to augment their savings. Using our turnkey investment program, a working couple using only their good credit could build a million dollar retirment in about 15 years. If you're interested, I urge you to contact me.

Still Waiting for GO Zone Benefit Confirmation Submitted by Jerry Cohen on Sun, 10/05/2008 - 14:18 I've been trying to confirm that the "Housing and Economic Recovery Act of 2008" does, in fact, extend the accelerated depreciation benefit until the end of 2009. I'm not a lawyer, but it certainly seems to be the case. And it couldn't come at a better time. It's looking more and more as if huge tax increases are on the way.

There is simply no other tax shelter instrument as powerful as the GO Zone benefit. What makes it particularly remarkable is that it requires no net cash payment with EquityBuild. Your rental properties' mortgages are paid by government housing authorities administering the federal rental voucher program, but you get enormous tax savings instantly.

If the GO Zone benefit has been extended, it will be easier than ever to protect yourself from high taxes. I've never known a better or more profitable time to get into real estate investing.

Breaking - GO Zone Depreciation Benefits Extended Submitted by Jerry Cohen on Wed, 10/01/2008 - 10:51 This is fantastic news for investors who haven't yet taken advantage of the most significant tax shelter in modern history. The "Housing and Economic Recovery Act of 2008" has just passed. All the details of the new law are not yet in but it does appear that the GO Zone depreciation benefits that allow investors to claim half their depreciation expenses in the first year of a property purchase has been extended until the end of 2009. All the rest of the GO Zone tax benefits seem to have been extended as well. This includes the ability to apply excess depreciation expenses backwards to recover taxes paid five years in the past.

As things clarify, I'll have more here. I can't provide you with a link to the newly passed bill yet because Library of Congress links expire after only a few minutes. For those who know how to use Thomas, click through here and search for "Housing and Economic Recovery Act of 2008"

Smaller Banks Thriving Submitted by Jerry Cohen on Fri, 09/26/2008 - 11:07 If you've ever seen the classic Jimmy Stewart film, "It's a Wonderful Life," you know something about the tradition of small, community banks in America. This article from the Washington Post points out that these same banks are doing better today than ever. That's why EquityBuild is able to provide mortgage loans to our clients even while huge, impersonal Wall Street firms stumble.

Smaller banks with roots deep within their communities are thriving. A big New York firm just doesn't have the ability to come into the Jackson market, for example, and actually look at the quality of a real estate investment. Our bankers know that the houses we rescue are fabulous homes worth much more than the money they are lending. They know because they can actually drive to these homes and see for themselves.

Local banks also know there's a long waiting list of federally subsidized renters lined up to live in our managed properties. These federally guaranteed rents more than cover the cost of ownership, so local banks are eager to have these financially solid mortgages in their portfolios. This is, in economic jargon, a "flight to quality." If you'd like to take that flight out of financial uncertainty to economic security and real wealth, we'd be more than happy to book you a ticket.

Hat tip to Instapundit.

Low Mortgage Rates Create Historic Opportunity Submitted by Jerry Cohen on Wed, 09/24/2008 - 08:06 The federal credit bailout is producing incredible bargains in the loan market. When home prices were high, we told overexcited real estate investors NOT to buy in overpriced markets. We said, "Wait until prices come down and then grab as many bargains as you can where rents are high enough to pay off your mortgage loans."

Well, now's the time. Not only are home prices great, the long term mortgage rates have created everything you need to make fortunes in the real estate market. It's not the "get rich quick" trap so many people fall into. That doesn't mean you can't get rich though. It just means you have to use your head instead of following the herd that created the housing bubble.

Buy low, sell high. You wouldn't think it would be that hard to understand, but it apparently is for too many people.

Ike Further Strains Rental Housing Supplies Submitted by Jerry Cohen on Sat, 09/20/2008 - 12:08 Real information is finally appearing about the incredible damage done in Texas by Hurricane Ike. Here are truly amazing USGA pictures. It's clear that one impact will be a worsening of the region's already serious shortage of affordable rental properties.

It will be years before all the homes damaged are repaired. Some, in fact, will never return to the housing market. Remember, there were many people hit by Ike who had moved to Texas following Katrina's destruction. The effects of Ike on rental markets will be felt all the way to Louisiana and Mississippi. Please give what you can to reputable charitable organizations such as the American Redcross.

New Low Mortgage Rates Present Remarkable Opportunities for Savvy Investors Submitted by Jerry Cohen on Wed, 09/17/2008 - 11:42 The media is full of stories today about the new low mortgage rates caused by confusion in the credit market. Many also refer to new tighter standards for those loans. These higher standards make sense for banks that want to avoid more bad loans. They're not an issue for us,though, because our investment is of such high quality.

All this combines to create enormous opportunities for smart investors who want to profit from the real estate market. The new low mortgage rates have fallen even as the demand for rental housing is increasing. I've never seen the fundamentals for income-based real estate investment better than they are now. Remember, if you wait for public opinion to change, you are following the same crowd that bought at the top of the housing bubble and sold after it crashed. Here's a couple of stories you can read for more information. Here and here.

Yes, We Can Still Arrange Mortgage Loans Submitted by Jerry Cohen on Tue, 09/16/2008 - 10:56 In response to all the questions I'm getting about the credit crisis and the disarray on Wall Street, the answer is "yes, we can still arrange mortgage loans for our qualified clients."

In fact, what has been going on for many months now has been a "flight to quality." That is, lenders have learned the hard way that it is a bad idea to base loans on the foolish notion that constantly rising prices will allow anybody to buy a house on credit and resell it at a profit. Nowadays, many lenders will only issue mortgages based on the very best balance sheets.

Because that's what we provide at EquityBuild, the lending institutions we work with continue to welcome and fund our clients. Remember, rent payments for EquityBuild homes come directly from the Federal Government's Section 8 rent subsidy program. Lenders often worry about the quality of renters when providing mortgages for income properties. In our case, they know the federal government is not going to go broke, so we have a real competitive advantage that you can use to accomplish all your financial goals.

Foreclosures May Not Be Bargains Submitted by Jerry Cohen on Mon, 09/15/2008 - 10:03 Recently, it seems that a lot of the visitors to this site are interested in a quick turnaround of properties. Though our standard portfolio is designed to build significant equity over a decade or more, EquityBuild can provide opportunities for those who want to sell newly rehabilitated properties quickly. In fact, I think that anytime you are buying a property, it should always be based on solid financial fundamentals. If for any reason your sale is delayed, it's always good to know that your property will pay for itself while you wait. That's the way it works with EquityBuild income-producing properties.

The last thing you want is to be stuck with mounting payments. Just to drive home that point, I'd like to link to a good piece I read recently at the Biggerpockets blog titled "Gambling at the Foreclosure Auction: High Stakes." The point is that foreclosures that look like bargains aren't always bargains, but the whole piece is worth reading here.

This Is the New Site Submitted by Jerry Cohen on Fri, 09/12/2008 - 09:50 In my first post here on the "non-beta" site, I'd like to thank the team at 2820 Design and HD Interactive. They've done a great job helping clarify what EquityBuild does. Now that we're "live," I'll try to take the time to post here on the blog a lot more regularly.

There's a lot going on right now. EquityBuild is expanding. We've been pretty close to capacity recently and we need to ramp up operations for several reasons.

One reason is that demand for our rental units by Section 8 voucher holders is higher than ever. The other is that the GO Zone tax benefit is winding down. and I'm getting indications that a lot of investors have decided they can't miss out on this remarkable tax shelter.

We love being able to provide homes for the deserving recipients of the federal housing programs while simultaneously giving major tax cuts and a fantastic real estate-based investment opportunity to our clients.

Federal Housing Administration Acts To Reduce Bad Housing Loans -- About Three Years Too Late Submitted by Jerry Cohen on Tue, 09/09/2008 - 11:48 Federal 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.

Desperate Need for Affordable Housing Submitted by Jerry Cohen on Mon, 09/08/2008 - 16:02 This 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 Sun, 09/07/2008 - 13:20 As 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.

Progress Report on Official Launch Submitted by Jerry Cohen on Thu, 09/04/2008 - 01:37 I'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 September.

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.