http://www.equitybuild.com/blog Wed, 10 Mar 2010 02:12:11 -0500 FeedCreator 1.7.2 http://www.equitybuild.com/images/tab4-start-building-equity-now.gif http://www.equitybuild.com/blog http://www.equitybuild.com/blog?post=56 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.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=55 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.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=54
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.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=53

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.]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=52

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.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=51

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.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=50
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. ]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=49 Click here to read the whole thing.
]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=48
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.

]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500 http://www.equitybuild.com/blog?post=47 "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.]]> info@equitybuild.com (Jerry Cohen) Thu, 01 Jan 1970 00:00:00 -0500