Freddie and Fannie Mae are huge. Together they hold $5 Trillion of US mortgages which equals roughly 50% of the US mortgage market. If these bankers prove to be insolvent, the United States will have a crisis on its hands in the form of 1970-80s style stagflation. To bail out these two banks, the national debt would have to adjust from $10 Trillion to $15 Trillion. Continue Reading »
The worst part about this is that the 15.3% loss represents a hefty piece of American consumerism. Its now safe to suggest that people who purchased homes in the last few years have $0 in equity, and are even upside down on their homes. While this may seem to be a microeconomic situation, the macroeconomics are beginning to show through. People don’t have spending money nor do they have the HELOC to fall back on. Continue Reading »
Washington Mutual announced today that Kerry Killinger will no longer serve dual role as chairman of the board and also as CEO. He will instead become a regular board member and retain his title as Chief Executive. The problem isn’t in the executive lineup or in the restructuring of “corporate governance” these loan companies are just trying to avoid pressure from average Joe investor and his opinion on subprime investments. Continue Reading »
Poor timing, too low price points? No, it appears that Yahoo might be avoiding a Microsoft buyout solely for sentimental reasons. Now that Jerry Yang is the CEO, it appears he’s wanting to hold onto the company he worked so hard to start back in his own college years at Stanford.
Yang owns about 4% of the company that is currently worth $1.5 Billion, his stakes are huge and he’s still drawing the infamous $1 salary that is common with many tech giants. His wealth has been derived in its entirety from the growth and capital gains he’s received as a huge shareholder in Yahoo. As CEO and a founder, it seems that his own unwillingness to sell might lay in a dislike for Microsoft and sentimental views of Microsoft rather than what shareholders want. Continue Reading »
Investment firms borrowed over $270 Billion dollars from the Federal Reserve last week for an average of just under $33 Billion per day. The Federal Reserve has practically opened its doors to banks who need the cash to calm liquidity concerns. The first week of the new program prompted about $100 Billion in loans, an amount that has nearly tripled over the course of one week. Banks raised their borrowing by nearly 7-fold as they trade worthless assets for more cash. The Federal Reserve now allows banks to use mortgage backed securities and other assets as collateral for new loans, even if the value of the collateral is much lower than its stated value. Continue Reading »
That’s the new buzzword on the street. Bank of America which is hurting greatly from the subprime credit crunch, has proposed an offer to Congress, asking for the creation of the Federal Homeowner Preservation Corporation. Continue Reading »
By Angela Baca
In a 8/31/07 address to the Federal Reserve Bank of Kansas City’s Economic Symposium, Chairman Ben Bernanke said: “Sales of new and existing homes have declined significantly from their mid-2005 peaks…The cutback in residential construction has directly reduced the annual rate of U.S. economic growth about 3/4 percentage point on average over the past year and a half…” Continue Reading »
This week the rates on 30-year mortgages dropped to their lowest point in 2 months, averaging 6.59%, down from 6.68% last week. Of course, this is good news for people who are thinking about buying a home, especially those who are having a difficult time getting credit. Continue Reading »
There are a lot of people who are trying to make money by flipping houses today. Herein they purchase a home beneath its market value to rehabilitate so that they can sell it for a profit in a short period of time. Here are 4 tips to help you make money by doing this: Continue Reading »
While there are a lot of great advertising methods available to you, here are a few more. These are oftentimes not utilized enough by real estate investors. Here are 3 things that you should look into so that you can make your real estate investing as profitable as possible: Continue Reading »
Of course, there are some medias that you will not want to get involved with as a real estat investor. One of these is radio. The audience is too hit and miss, which makes it very difficult to build an image for what you are trying to do. Continue Reading »
As a real estate investor, you should create different lists to promote to. This is because your message to the different industries who may be interested in your property will need to be different. In other words, you will need to connect with these people by saying what they want to hear. When you do this you will create interest in reacting to you because you have said something that they wanted to hear. Continue Reading »
If you are a real estate investor, you will find that billboards will bring in 11% of your business, unless they are located on a major roadway where they could bring in 45% of your advertising, if not better. However, it is very important that you always hang these billboards in the area where you want to purchase homes from. Continue Reading »
You can generate approximately 32% of your business from the television media. Here you will be able to address your audience and speak directly to them. So, you need to make sure that you outline the reason why these distressed sellers should call you instead of using a realtor. Continue Reading »
If you are interested in buying real estate in order to lease it out and make a profit, then you will need to have a successful marketing campaign in place. This means that you will need to use various marketing methods. Continue Reading »
Approximately 43% of your business will come directly from display ads. Of course, this has to be an ad that speaks to the seller’s needs, then you will have an incredible call to action. You need to be prepared to handle the response rate though. Continue Reading »
It is important to understand that the field of real estate investment is constantly growing. Of course, there are going to be some fluctuations along the way. This is true for any business that you could get into though. However, not every business is going to be as good of an investment as the real estate market will be and here is why: Continue Reading »
Every business centers upon relationships with people. This is something that you should really give some thought whenever you are thinking about investing in real estate. After all, real estate especially centers upon people because you are trying to get them to rent your homes, apartments or shopping spaces. Continue Reading »
As was previously mentioned, you should never fear a slump in the real estate market. In order to help you relax, there are some things that you can do. You may wish to consider this as your “homework” as it really is something that you should do. Here is what you should and can do: Continue Reading »
A good, solid, money-making real estate investment is the best way in which you can work your way toward financial freedom and wealth. This should be obvious though since most of today’s millionaires have invested in real estate, not in stocks, bonds, gas, oil, or precious metals. Continue Reading »