Hi Friends,
I am moving my blog to http://www.theieu.com/blog from today forward. Please go there for daily updates. There are so many things going on in the market and we don't want you to miss a thing.
Thanks for tuning in here...see you at the new site...
Have a Blessed Day,
Dwan
http://www.theieu.com/
About Me
- Dwan
- I started as a single mom with NO money, NO experience, and NO real estate license. I have been investing in foreclosures for almost 20 years and am considered one of the nations foremost experts on short sales, foreclosures, and just about anything related to real estate investing. My goal is to help you to become a superstar!
Saturday, September 27, 2008
Friday, September 26, 2008
Bail Out? What does this mean to us?
Hello Friends,
Wow...is our country in a mess. The bail out is the only thing on the news right now. What is going to happen???
Here are my thoughts...
As I am sure you know that Washington Mutual went under last night.The problem with the bail out is that it appears to bail out banks, not homeowners who are facing foreclosure. What will happen is that the government will buy up all the inventory the banks hold. I believe that all the purchased properties will then be dumped as cheap as possible to free up money and begin repaying the loans given.
Bank-owned properties will be cheap and easy to buy for a while...Once the bank-owned properties are off the books of the bank, the banks will start to lend money again...being more cautious than before.
By jump starting the lending industry...it should give our economy a boost. The problem is that millions of people are in foreclosure right this minute and no one is talking about how to STOP the foreclosures.
I am hoping that banks will do loan modifications with distressed homeowners and give them a fresh start.Unless the interest only and adjustable loans are dealt with, we will be right back in trouble very soon.
We are advising our students to find homeowners in distress, do the short sales, and then flip properties to landlords or start building rentals for long-term wealth. For the students who can afford it, rentals are a good option because when values go back up - you will be sitting on a goldmine.
In the mean time new investors need to flip to landlords - not rehabbers. Rehabbers are having a hard time because they sell retail and can't get people approved for loans.
I think people should focus more than ever on real estate. Most of the millionaires who came out of the great depression made it in real estate...
Now is NOT the time to bail out..it is the time to gain extreme wealth...
I will be back blogging next week and will keep you posted daily...
Have a Blessed Day,
Dwan
www.theieu.com
Wow...is our country in a mess. The bail out is the only thing on the news right now. What is going to happen???
Here are my thoughts...
As I am sure you know that Washington Mutual went under last night.The problem with the bail out is that it appears to bail out banks, not homeowners who are facing foreclosure. What will happen is that the government will buy up all the inventory the banks hold. I believe that all the purchased properties will then be dumped as cheap as possible to free up money and begin repaying the loans given.
Bank-owned properties will be cheap and easy to buy for a while...Once the bank-owned properties are off the books of the bank, the banks will start to lend money again...being more cautious than before.
By jump starting the lending industry...it should give our economy a boost. The problem is that millions of people are in foreclosure right this minute and no one is talking about how to STOP the foreclosures.
I am hoping that banks will do loan modifications with distressed homeowners and give them a fresh start.Unless the interest only and adjustable loans are dealt with, we will be right back in trouble very soon.
We are advising our students to find homeowners in distress, do the short sales, and then flip properties to landlords or start building rentals for long-term wealth. For the students who can afford it, rentals are a good option because when values go back up - you will be sitting on a goldmine.
In the mean time new investors need to flip to landlords - not rehabbers. Rehabbers are having a hard time because they sell retail and can't get people approved for loans.
I think people should focus more than ever on real estate. Most of the millionaires who came out of the great depression made it in real estate...
Now is NOT the time to bail out..it is the time to gain extreme wealth...
I will be back blogging next week and will keep you posted daily...
Have a Blessed Day,
Dwan
www.theieu.com
Thursday, September 11, 2008
Are You an Underwater Homeowner...Continued
Hi Folks,
I have been doing a series for UNDERWATER HOMEOWNERS. Whether you are an underwater homeowner or an investor helping one...keep reading.
Did you know that Henry Ford went bankrupt seven times? Think about it – he started a company and went bankrupt; started another company and went bankrupt; started another company and went bankrupt again; started yet another company and went bankrupt again; now it’s getting hard to read – he started another company and went bankrupt yet another time; with all the naysayers in his life he started another company and went bankrupt again; still not defeated, he started another company and went bankrupt again; then he started Ford Motor Company – who you may be making payments to right now.
If you are an investor losing your investment properties – it’s okay, too. Our advice for the future is not to buy any rentals unless you can afford to make the mortgage payments – in addition to your bills - for five months on all your rentals. For example – say you own five rental properties and the mortgage payment is $500 on each. This means your monthly commitment is $2,500 a month. Unless you can afford to pay $2,500 for five months, in addition to all your regular bills, do not become a landlord. We realize that this seems extreme because t is unlikely that all five of your rental would be vacant at the same time; however, it does happen. The great news is that in this book we are going to cover some great ways to turn your rentals into cash flow machines again.
If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it’s not that much time. When you recover and start over, you’ll have many more good years than bad.
People tend to live above their means in this country. We have both traveled extensively around the world and we are the most spoiled country. Personally, we like living a spoiled lifestyle, but we didn’t come by it easy. We have both had financial problems in the past, been divorced, suffered foreclosures, and barely gotten by. Through a lot of hard work, cutting back, and many blessings from God, we were able to make it to the top percentage in the entire country.
Stay tuned for this continued series...
May God Bless You,
Dwan
www.theieu.com
I have been doing a series for UNDERWATER HOMEOWNERS. Whether you are an underwater homeowner or an investor helping one...keep reading.
Did you know that Henry Ford went bankrupt seven times? Think about it – he started a company and went bankrupt; started another company and went bankrupt; started another company and went bankrupt again; started yet another company and went bankrupt again; now it’s getting hard to read – he started another company and went bankrupt yet another time; with all the naysayers in his life he started another company and went bankrupt again; still not defeated, he started another company and went bankrupt again; then he started Ford Motor Company – who you may be making payments to right now.
If you are an investor losing your investment properties – it’s okay, too. Our advice for the future is not to buy any rentals unless you can afford to make the mortgage payments – in addition to your bills - for five months on all your rentals. For example – say you own five rental properties and the mortgage payment is $500 on each. This means your monthly commitment is $2,500 a month. Unless you can afford to pay $2,500 for five months, in addition to all your regular bills, do not become a landlord. We realize that this seems extreme because t is unlikely that all five of your rental would be vacant at the same time; however, it does happen. The great news is that in this book we are going to cover some great ways to turn your rentals into cash flow machines again.
If you look at the average life span, we live to be 75 or so. If you are in financial hardship and it takes you three years to recover, in the big picture, it’s not that much time. When you recover and start over, you’ll have many more good years than bad.
People tend to live above their means in this country. We have both traveled extensively around the world and we are the most spoiled country. Personally, we like living a spoiled lifestyle, but we didn’t come by it easy. We have both had financial problems in the past, been divorced, suffered foreclosures, and barely gotten by. Through a lot of hard work, cutting back, and many blessings from God, we were able to make it to the top percentage in the entire country.
Stay tuned for this continued series...
May God Bless You,
Dwan
www.theieu.com
Monday, September 1, 2008
UNDERWATER ...continued...
Hi Friends,
In my last post - I spoke of how many people are "UNDERWATER" in this crazy period in our economy. I want to continue that series...
Banks figured that if you used 40 percent or more of your income for the mortgage payment, you would be “house poor.” If you used $800 of your $2,000 income for a mortgage payment, that leaves $1,200 for everything else.
Let’s look at what this could mean:
Income - $2,000
Mortgage - $800
Electric - $150
Car Payment - $300
Gas - $250
Phone - $100
Groceries - $400
Based on these very realistic figures, you are dead broke every month. What if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?
Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know – you’re one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.
Many investors bought rental properties with no landlord experience. When their rentals sat empty, they used mortgage money to keep up the rental payments or worse yet, they spent the rental income for their own bills and fell behind on investment properties, which often ended up in foreclosure without the tenants knowing a thing. Next thing you know, the tenant is being served eviction papers from the sheriff and must move in three days. It would stun you to see how many investors are going under right now – so you are not alone.
Most Americans live paycheck to paycheck – even investors. The best way to stay ahead of the game is to control your debt. If you are a two-income family, our thought is to live on one paycheck. This way, if one of you gets sick and can’t work or if you fall victim to divorce, your lifestyle won’t change. We realize that right now may of you are thinking – no way could I possibly do that, our bills are too high. By living on one of the two incomes, you can get so far ahead – it would stun you.
If you are a one-income family, try living on 80 percent of your income. I realize how hard that can be, especially if you are a single parent. You must cut back, downsize your lifestyle, get a smaller house or apartment, drive a less expensive car, pay off credit card debt, save 10 percent of your income for emergencies, and don’t forget to tithe 10 percent of your income to God.
Don’t worry about keeping up with the neighbors. The neighbors aren’t going to pay your bills if you get into trouble. In fact, my guess is that most of your neighbors will gossip about you if you do get into trouble. It is sad how shallow our society has become. You don’t have to have the best of everything. You do need to be prepared for emergencies and hard times. Our economy isn’t going to pick up for several years and we don’t want to see you fall victim to the hard times that lay ahead. Whether a distressed homeowner or an underwater investor - if you have already fallen into hard times – don’t worry about it.
We have so many great ideas and will show you how you can start over … and come out on top!
...TO BE CONTINUED...
Have a Blessed Day,
Dwan
www.theieu.com
In my last post - I spoke of how many people are "UNDERWATER" in this crazy period in our economy. I want to continue that series...
Banks figured that if you used 40 percent or more of your income for the mortgage payment, you would be “house poor.” If you used $800 of your $2,000 income for a mortgage payment, that leaves $1,200 for everything else.
Let’s look at what this could mean:
Income - $2,000
Mortgage - $800
Electric - $150
Car Payment - $300
Gas - $250
Phone - $100
Groceries - $400
Based on these very realistic figures, you are dead broke every month. What if you have a car repair, medical bills, need a home repair, need to buy clothes, or anything else? Where does the money come from? What about trying to save for retirement or trying to care for ailing parents?
Sometimes life just takes over, you have a problem, you use some of the money that should be used for the mortgage payment, and next thing you know – you’re one payment late, then two, then three, then the bank files foreclosure papers, and then everything spirals out of control.
Many investors bought rental properties with no landlord experience. When their rentals sat empty, they used mortgage money to keep up the rental payments or worse yet, they spent the rental income for their own bills and fell behind on investment properties, which often ended up in foreclosure without the tenants knowing a thing. Next thing you know, the tenant is being served eviction papers from the sheriff and must move in three days. It would stun you to see how many investors are going under right now – so you are not alone.
Most Americans live paycheck to paycheck – even investors. The best way to stay ahead of the game is to control your debt. If you are a two-income family, our thought is to live on one paycheck. This way, if one of you gets sick and can’t work or if you fall victim to divorce, your lifestyle won’t change. We realize that right now may of you are thinking – no way could I possibly do that, our bills are too high. By living on one of the two incomes, you can get so far ahead – it would stun you.
If you are a one-income family, try living on 80 percent of your income. I realize how hard that can be, especially if you are a single parent. You must cut back, downsize your lifestyle, get a smaller house or apartment, drive a less expensive car, pay off credit card debt, save 10 percent of your income for emergencies, and don’t forget to tithe 10 percent of your income to God.
Don’t worry about keeping up with the neighbors. The neighbors aren’t going to pay your bills if you get into trouble. In fact, my guess is that most of your neighbors will gossip about you if you do get into trouble. It is sad how shallow our society has become. You don’t have to have the best of everything. You do need to be prepared for emergencies and hard times. Our economy isn’t going to pick up for several years and we don’t want to see you fall victim to the hard times that lay ahead. Whether a distressed homeowner or an underwater investor - if you have already fallen into hard times – don’t worry about it.
We have so many great ideas and will show you how you can start over … and come out on top!
...TO BE CONTINUED...
Have a Blessed Day,
Dwan
www.theieu.com
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