Life

Hi Folks,

Life sure comes at you fast. Bill's Aunt Bev passed away this past weekend. She was a wonderful, Christian woman. The strange thing is, Bill is now the oldest. We are the next generation of people who will die.

I think we all feel like we have some sort of "safety net" as long as someone older than us is still alive. We are now the oldest! Crazy isn't it???

Which made me think of something I read once and saved...I want to share it with you...

IF I KNEW

If I knew it would be the last time that I'd see you fall asleep, I would tuck you in more tightly and pray the Lord, your soul to keep.

If I knew it would be the last time that I see you walk out the door, I would give you a hug and kiss and call you back for one more.

If I knew it would be the last time I'd hear your voice lifted up in praise, I would video tape each action and word, so I could play them back day after day.

If I knew it would be the last time, I could spare an extra minute to stop and say "I love you," instead of assuming you would KNOW I do.

If I knew it would be the last time I would be there to share your day, Well I'm sure you'll have so many more, so I can let just this one slip away. For surely there's always tomorrow to make up for an oversight, and we always get a second chance to make everything just right.

There will always be another day to say "I love you," and certainly there's another chance to say our "Anything I can do?" But just in case I might be wrong, and today is all I get, I'd like to say how much I love you and I hope we never forget.

Tomorrow is not promised to anyone, young or old alike, and today may be the last chance you get to hold your loved one tight.

So if you're waiting for tomorrow, why not do it today? For if tomorrow never comes, you'll surely regret the day, that you didn't take that extra time for a smile, a hug, or a kiss and you were too busy to grant someone, what turned out to be their one last wish.

So hold your loved ones close today, and whisper in their ear, Tell them how much you love them and that you'll always hold them dear.

Take time to say "I'm sorry," "Please forgive me," "Thank you," or "It's okay." And if tomorrow never comes, you'll have no regrets about today.

Before you walk out your door each morning, be certain you are right with God and those you love. You may never get another chance.

Have A Wonderful Evening,

Dwan

www.theieu.com

When the Bank Won't Accept Your Short Sale Information

Hi Friends,

We are in San Diego this weekend. Bill is teaching right now, while I write to you.

I had another great question posted on my blog. People are asking questions about Vegas and comps and short sales.

Folks, Vegas in one of the hardest hit areas. There was soooo much pre-construction and there are so many people upside down right now.

If you are doing short sales and having a hard time getting banks to accept REO sales as comps, ask the bank what comps they would like to see you use? Banks look for comparable sales within the past six months. If that is all there is, they must accept those comps.

If you have my program or have been to a short sale boot camp....you know that we use a "three step" short sale process. My thought is to treat short sales as if you were going to court and presenting a case. The more information you have, the better your chances to win.

We begin with our first offer focusing on the distress of the homeowners and their property. We provide low comps, hardship letters, a cover letter from us, pictures, and whatever else we think will help.

I have never had a problem with a bank using REO comps. I think that if you send the second and third offers, the banks will be more likely to look at your offer as a WHOLE package.

In the second offer, we send the crime reports, a list of the registered sex offenders, pictures of boarded up houses and more.

In our third offer, we show the financial loss to the bank if it does not accept our offer. The third offer is VERY important...it shows the bank exactly what it will lose if our offer is not taken.

I truly believe that if enough effort is put into a short sale, you will get a "yes" 80% of the time.

I find that when a bank is not wanting to accept some portion of my package (like comps)...I push to find out what it will accept. Almost ALL banks do short sales, so there must be some item that will be acceptable. Being pushy is sometimes the key.

Remember, if a bank says no right now to your deal...call back at the beginning of the next quarter. A bank may say no in March, then receive reports of what a bad first quarter it had and then accept your short sale when you call back in April.

Likewise, you may get a no in the beginning of April and call back at the end of the same quarter and get a yes.

Banks are all about numbers and run in quarters. A "no" this quarter could be a "yes" next quarter.

As long as the property hasn't gone to the sheriffs sale, the deal is not over. We call up until the last day to try and talk a bank rep into a yes. Often, homeowners will file bankruptcy just before the sheriffs sale in order to buy more time. Once bankruptcy is filed ... we get back to work.

Are short sales worth all the work? You bet! You can expect to make anywhere from 10% to 20% of the current retail value on each property. That can mean a huge check for you on every deal.

Since our goal is to by properties at 50% of the value, we are willing to put in the extra effort and extra calls to get the deal done.

Remember..the homeowner must always come first. This is their one and only chance to start over - you have a deal around every corner.

We are headed to the airport soon....Hope you have a wonderful weekend. Hey... go to church tomorrow and thank God that you live in such a great country and that you have the ability to make a difference in the lives of people every day...just like Jesus does!

Have a Blessed Day,

Dwan
www.theieu.com

Buy and Hold?

Good Evening Friends,

I had such a great answer to my blog from yesterday, I decided to write about it...
The questions was...

Am I correct to say that "buy now" and hold only works in a place that doesn't have double digit devaluation going on? Some places have 13% to 17% and even more, in declining house values. A place like Iowa is a better place to "buy and hold?"


My answer...

As I said, Bill and I "buy and hold" in Iowa for several reasons. The main one being that the property values hold, year after year. Even if the property values dropped 5% this year, it wouldn't make a difference in the long run because values typically climb 5% a year....year after year. Every two years, values have climbed 10%. It doesn't take many years to see appreciation on your investment.

We buy and hold for long-term, and we mean...long-term. The Bible says it is a blessing to leave a legacy to your grandchildren. We are buying and holding for us, our kids, and their kids. It is our goal to set our family up in a business that can be passed down through generations. Owning lots of property would be a blessing to us and our families. They don't make any more land, so owning lots of it is our goal.

If you are in a area that is dropping with double digits...you must learn to short sale. If you can buy properties at 50% of the current value, even if the values drop another 20%, you still own properties below market. If you do a short sale, you would have to secure financing, which is a problem for a lot of folks right now. We have a company we are working with that only charges $500 to fix your credit - I don't want to turn this into a sales pitch, but this really works. If you have late payments, foreclosures, or even a bankruptcy...they can get it off. Take a look at: http://ieu.fixcreditbiz.com

If buying with your credit is not an option ... you'll have to do "Subject To's" - having a homeowner deed their house to you. Once the deed is transferred, the property becomes yours. The homeowners name is still on the mortgage - so make the payments on time. If you make a late payment, you hurt the homeowners credit.

Some states are making "subject to's" illegal because investors are taking advantage of distressed sellers. Check with your local attorney to see if you can do a subject to.

We recently invested in four rentals in Iowa. All four of them are worth $50,000 to $57,000 and we got each one for $30,000 or under. That is not a huge amount of equity, but they rent for $550 or more each. We took over payments and each one cash flows. Our total out of pocket expense was only $2,000. As each one climbs 5% a year in value, it won't take long for them to be worth $100,000 and the payments are under $300 each. They will be huge cash cows.

We always pay a little extra on our rentals to get them paid off as soon as possible. We bought a lot of properties in Florida back when the market was down. As the markets went up, we owned properties at 20% of the value. We sold a few and paid off others and ended up sitting good when the market dropped again.

It is important to plan ahead and watch markets. The hard part is knowing who to listen to. The news stations say not to buy now and I say...buy as much as you can. I have said many times that millionaires are born in times like these. People who understand how to help sellers while getting a good deal themselves will see the fruit of their labor pay off. The people who do it right, will come out on top at the end of all this.

I am doing a four part series of teleconference calls in May called -

Surviving The Crashing Market and Coming Out on Top!

Make sure you tune into it. With a little guidance...ALL of you can become super wealthy right now...

Ok...I have to watch American Idol now. I am a fan of David Cook - too cute!

Have a Blessed Day,

Dwan
www.theieu.com

Surviving The Crashing Market

Hi Folks,

I trust you have been having a good week. Whew...I don't know how I got so busy, but it has been several days since I posted. Time sure flies!!

I have been busy getting ready to begin doing my own teleconference calls. I am so excited about it. I have done a few now and I LOVE being on the "interviewer" side of the fence. I am so used to being interviewed.

I am doing a series in May - Surviving The Crashing Market and Coming Out on Top! In addition to homeowners, there are so many investors upside down right now, too. At every boot camp we teach at least 10 people come up to me and state that they got involved with pre-construction or bought too many rentals or their own mortgage payment went up or something along those lines. I have spent countless hours privately counseling students.

This prompted me to do a 4 part series in May about options for investors....leases, special needs housing, commercial and much more. It really is going to be great! I hope you'll check out our site and get registered. I promise you won't regret one single minute.

Diesel went to $4.02 yesterday - here in the mountains. Gas is going up, less people will travel this summer, airline tickets will rise....all this will put us into a summer recession. I am not one to predict doom and gloom - in fact I am one of the most positive people you will ever meet - but facts are facts. We, as investors, MUST be prepared for the times ahead.

On the positive side, short sales are easier than ever. If you are in a position to buy and hold - do it. Prices will continue to drop for a few more years and now is the time to really make hay while the sun shines. If you read my blog the other day on Section 8, we take advantage of government programs. Nothing is better than letting Uncle Sam pay for your rentals. This is why we are going to talk about Special Needs Housing during the May series.

I have to run. I have a conference call tonight. Stay tuned for more info on the May series.

Have a Blessed day,

Dwan
www.theieu.com

More About Where to Invest and Short Sales

Good Evening Friends,

I had questions about what to do if you live in one of the areas where the market is WAY down like Vegas, Phoenix, Miami and so on. As I said yesterday, we invest in the Midwest because values rise slow, but steady. We either wholesale properties or keep them for long-term wealth. If you have the means, long-term holding is a great investment strategy right now. Property values are falling and falling, so you can help someone out of foreclosure while getting a great deal for yourself.

If long-term investing is not up your alley, find a great deal, do a short sale, and then wholesale it for a quick profit. Today, I want to cover more about short sales:

In a nutshell, a “short sale” is negotiating with a mortgage holder to accept less than what is owed as payment in full.

A short sale is my favorite strategy when I find a distressed homeowner who owes the bank close to or more than what the property is worth.

Here’s how it looks: The homeowners owe $200,000 to their first mortgage holder and the payments are in arrears. Their property is worth $200,000 in retail condition. With the proper negotiating strategies, you get the bank to accept $100,000 as payment in full. Therefore, purchasing a $200,000 retail property for 50% of its value. Sweet, huh?

With proper negotiations you can take deals that most investors pass on and turn them into amazing deals. Some of my largest checks have been from deals that had no equity.

There is a lot of controversy surrounding short sales. Many investors state that banks don’t do them or that you can’t get good deals any more. Like I have been saying, I have been doing short sales since 1996, before I even knew they were called short sales and they are great!

The key to successful short sales is to build a great case and a replicatable business. When you get a short sale accepted, do something nice for the bank representative. Take the time to build relationships within the banking industry. Building these relationships will insure your success. At some point, you’ll be able to call the reps and simply make your offers verbally. Once the offers are accepted, the rep will tell you what to send.

Imagine … only having to make a call and, bam, the deal is done. Investors, that day will come. In the mean time, I’ll teach you how to make money along the way.

Don’t let anyone discourage you from becoming a short sale expert. Do what we do and you’ll be very successful. That is what you want, isn’t it?

Read on …

Hi there! This is the third testimonial and it does bear repeating!!! Thanks so much to Dwan for her telebootcamp seminar. I had turned this particular person down twice. No other investor would help him either. He was overleveraged and going to foreclosure. With great delight, I was able to help this person avoid foreclosure, help with his credit and receive a $36,000 too! This was my first short sale! Thank you Dwan! There are so many real estate gurus around. None like Dwan and her staff. Don’t waste your money with High Dollar Real Estate Guru Speakers!!! What you are looking for is High Value Real Estate Teachers … and Dwan will be there when you need her. Other speakers will only be there when they want you to buy something. Thank you so much Dwan!
Johnna Lodge- Georgia

Isn't this a great story? If you have a great story you'd like to share, please post a comment and I'll post it. Thanks for staying tuned each day...


Have a Blessed Day,

Dwan
www.theieu.com

Where To Invest

Good Evening Friends,

Do you ever feel that Mondays get away from you? I spent the entire day on the computer and feel like I didn't get anything done. I did get a flip video today, so I should be able to post video soon. When Bill and I look at houses, we are going to put the videos up so that you can see what we are looking at.

We are currently buying in Iowa, Florida, Texas, and Colorado. We have people in place in all locations to help us when we need it. We like Iowa, because the property values are stable. They don't go way up and they never go way down. If you are looking for stable rental properties, invest in the Midwest. In Iowa, the values go up, maybe 5% a year. Over a 20 or 30 year span, it's huge.

I find that people are always looking for the "get rich quick" areas. Those same areas are at the bottom of the investing pit right now. Did you know that Miami, Florida has 5 years of inventory? 5 years!! That means that if every house listed today sold one per day, it would take 5 years for all of them to sell. If you remember, a few years ago, Miami was one of the hottest pre-construction areas around. Vegas is down, Phoenix is down. The Midwest is stable.

I don't know about you, but Bill and I buy for long-term so we look for areas where the values continue to climb a little bit each year. We have houses we paid $30,000 for that rent for $600 a month. It's crazy! We love it...

We also take advantage of the government programs like Section 8. It's my personal favorite...

The program is funded by the government requiring its approval of the rental property. The renter must also qualify to belong in this program. Many of these renters already receive some type of government aid. This program has guidelines for both the tenant and the landlord to follow in order to implement Section 8 into the rentals. Keep in mind that government programs are constantly changing and you must find out what qualifies your property for any of these programs.

This is guaranteed income from the government each month because that's who is paying the rent. The government pays all or a portion of the renter's payment each month directly to you and in some cases pays all of the rent.

You can find out if these programs are available in your area by contacting your county or city housing authority. They will mail you brochures outlining how this program works as well as their guidelines.

Personally, I love Section 8. Most of my tenants are on the Section 8 program. The key to being a successful Section 8 landlord is to screen tenants. I show up unannounced and ask to see the property. I also do one other thing: I call the landlords they had TWO places ago. They may be horrible tenants and the current landlords want them out. These landlords will tell you how great the tenants are and how they hate to see them leave. If you call the landlords before the current place, they will tell you the truth. The tenants are out of their property and as fellow landlords, they don’t want to see your place trashed.

Each tenant on the Section 8 program is assigned to a counselor. These counselors know the entire rental history of the tenants. The bad thing is that they are not allowed to give out derogatory information. I met with a counselor once for a heart-to-heart to determine what I can and can’t ask. Although the counselors can’t say the tenants trashed the last house, they can answer questions about the tenants rental history.

In this crashing market, now is the best time ever to buy and hold. I know some of you can't afford to buy because of credit issues. If that is the case, consider taking properties "subject to." the current homeowner deeds the house to you and you become the new owner. Before you consider a "subject to:, make sure it is legal in your area. I'll talk more about it later. It is how I accumulate most of my rentals.

Ok...I'm off to sleep. I'll talk with you tomorrow.

Have a Blessed Day,

Dwan
www.theieu.com

The Five Equities of Life

Good Afternoon Friends,

We are excited to be home from our trip. It's good to sleep in my own bed again. I also missed my puppies. Bill bought me to Great Pyrenees for Christmas. They are getting soooo big. We took them for a walk today and I was completely out of breath. Living at 9,200 feet sure makes a difference:-). It's time to get back in shape. I have gotten a little on the lazy side the past few months.

I feel it is really important to have balance in our lives. I have what I like to call the "Five Equities of Life" that I do my best to keep balanced. We have had too many vacations lately and one of my equities needs work - physical health:-).

In order for you to become a successful investor, you MUST set goals. Make sure your goals include ALL five equities....

Family
Spiritual
Physical Health
Mental Health
Financial

The five equities of life are what make us who we are. It is important to keep balance with all of these:

• If your spiritual life is great, but your physical life is a mess - you will find it more difficult to reach your goals.
• If your family life is a mess, but your financial life is great - you won’t enjoy the money.
• If you have old baggage hanging around - get rid of it today!
• If you are depressed over your lack of money - change your mind-set now.
• I realize that this sounds easier than it actually is; however, you can do it. You have to make the effort to have balance. It doesn’t just happen. Schedule time for the gym, your children, church, spouses etc.
  

Strive to keep all areas of your life balanced. Run your life as if it were a business, starting with one week at a time.

• Monday - walk for 15 minutes
• Tuesday - attend a short money making seminar
• Wednesday - call your parents or family
• Thursday - spend one hour reading a self-improvement book
• Friday - take your kids to a movie
• Saturday - walk for a half hour
• Sunday - go to church
  
  

People fail because they try to do everything at one time. They decide to join the gym, quit smoking, diet and spend time with family - all at the same time. You set yourself up for failure this way. Just make a small change each day. After 21 days, that small change will become a habit. After another 21 days, it will become a LIFESTYLE.

We all have the same excuses for why we fail: We are too tired, we work too many hours, we can’t fit anything else into our lifestyle and schedule. Folks, you are the ONLY person holding yourself back. Trust me, balance is tough when you are juggling so many things at once - I have become a master at balance! I use schedules for everything from time with my family and friends to time off to relax. It is easy to do. Most of you schedule your day at work, but at night, it becomes a free-for-all. Organization is key to your success.

I recently asked students in my boot camp just how many of them want to make $500,000 this year. Every hand went up. Then I asked them how many have written goals and a plan to get there...and all of the hands went down. Without a written plan, how do you possibly expect to become successful?

Here is an example: If you want to make $500,000 this year...you must plan to speak with X number of homeowners each month. Out of that number, you must plan to put together X number of deals. Out of those deals, you must plan to make X amount per deal.

If you put this in writing and stick to it, you will be able to achieve it. Why settle for $500,000 per year - there is no reason you cannot make a MILLION dollars in the next 12 months!

I'm going to give you a little homework - write short term goals (maybe just three months at a time), include all five equities, and keep me posted on your success. I look forward to hearing about them.

My immediate goal....get back to exercising!

Have a wonderful day.....

Dwan - http://www.theieu.com/

Random Acts of Kindness

Hi Friends,

We are coming to the end of our trip to Maui. We have been here for nine days. I must say, it has really been relaxing. Bill and I went to church yesterday and learned about a program that gives out groceries to the needy.

I think when anyone thinks of the Hawaiian Islands, they think of warm weather, people having money, a great place to visit, resort life. I don't think anyone ever thinks of what the rest of the island goes through. This small resort church is part of an organization that goes into local communities and gives out bags of groceries twice a week. They give out over 60,000 bags a week! It's hard to imagine that that many people need help. Once you get off the "resort path," there are many poor people here. Folks have a hard time making it because everything costs so much.

For example:

We had to send a fax several days ago - $45
We had to get our signatures notarized - $85 - I was floored by that cost!!!
A very small coke is $4
We played golf at a top course - $500
A bottle of water - $6

It is very expensive here. It got me to thinking....every place we ALL live has people who struggle, not only in Hawaii, because of the high cost of living.

As investors, I think most of us live in nice places, our friends live in nice places, we have a car, we have nice clothes, and we don't really give much thought to the poor. Sure, we feed the hungry through programs on TV, but what do you personally do to help out?

Some of us give money to the people on the street corners, but are they really poor? I saw a show in TV recently and some of those "homeless" people make over $800 a week. They are not homeless, this is their job. So the few bad ones ruin it for the ones who really need help.

So....what can we really do to help? I'm not sure, but I know we need to do something. We can't always assume that "someone else" will do it. We are the "someone else's" of the world.

As investors, we make money from helping homeowners in foreclosure...I feel we need to personally do more. Maybe go downtown where the homeless hang out and personally give food, donate time to the homeless shelter, find a family in your community who needs help and offer to help - maybe fix a porch for an elderly widow, buy someone storm windows in the winter, find a house with no air conditioning and buy a window unit and leave it on the porch, help someone who needs surgery and has no insurance. Stop into an auto repair shop and look at the poorest looking car and pay for the repairs. Pay for someones new tires. Put a bag of groceries on a doorstep.

The Bible says that we will be blessed by what we do in private. No one needs to know your good deeds. Knowing that it pleases God should be reward enough.

Bill and I have done so many anonymous things for our community. We don't want people to know it was us because we don't want them to feel indebted to us. By contacting a local church, you could find folks right in your community who need YOUR help. You can make such a difference in the lives of the folks who live in your community.

Let's all practice random acts of kindness and see what happens... It would make this a wonderful world.

So....what does today's post have to do with real estate investing? Nothing. It has to do with the first step...making a difference in the lives of others.

Let me know what you have done by posting some of your good deeds here...anonymously, of course:-).

Have a blessed day...

Dwan
http://www.theieu.com/

Over 1 Million People in Foreclosure

Hi Everyone,

We are certainly enjoying Maui. I am sitting on the beach, as we speak. It's quite windy today, but still better than snow:-).

As you know, my goal is to keep you posted about changes in the real estate market and in our country. I have been reading while I have been here and I came across some interesting information... did you know that in the history of our country, there are more people right now on food stamps that ever before?

There are currently over 28 million people on food stamps right now. Why? With the rising number of layoffs, rising fuel prices, rising food prices, and the crashing housing market people are being driven to new extremes.

We haven't had this many people on food stamps since the 60's. In Michigan, one in eight people receive food stamps. One in eight! As most of you know, Michigan is one of the hardest hit states in the current crash with auto factories laying off or closing and industrial jobs being lost.

So, what does this mean to us? It means that we can't look the other direction, we can't assume someone else will help out, it means we are in for a long haul. Now, more than ever, it is time to take action.

Currently, we have over 1 million people in foreclosure. The numbers are expected to rise to 2 million by the end of the year and possibly as high as 7 million in the next few years. The time is ripe for you to become a real estate investor. Millions are made and lost in times like this. There are millions of homeowners who need a break. Why don't you be the person who gives them that much-needed break.

Take time to follow these blogs, tune into conference calls, attend boot camps, educate yourself so that you are one of the people becoming a millionaire, while helping others get a fresh start in these hard times. The people you help will be grateful for your knowledge and you can leave a legacy for your children.

Step up and make a difference...I know we are....

Have a Wonderful Day,

Dwan
http://www.theieu.com/