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.