Offer Limited To the First 10 Agents to Claim Their 25 FREE Leads

Are you one of the thousands of agents that are struggling to find new clients? As the real estate market contracts, buyers and sellers have become harder and harder to find. Agents are finding they have to spend much more time and a lot more money to get a shrinking share of the real estate leads. Do you spend hours of your time sitting open houses, floor duty and kiosks just to get a few meager leads that amount to nothing? Do you send out hundreds or thousands of dollars of postcards only to get dozens, even hundreds of them returned to you only to get couple of disappointing leads? Getting the business is the hardest part of the business. There is an alternative.

At iNet Realty, agents enjoy an abundant number of well qualified and highly motivated buyers and sellers. Imagine not having to waste hours of your time sitting open house, and instead spend that time showing qualified buyers homes to buy? Or instead of floor or kiosk duty, spending that time writing offers. Stop imagining because at iNet Realty, that’s exactly what our agents spend their time on. At iNet Realty, agents spend 100% of their time on the activities that directly make them money, like showing property and writing contracts. Getting the business is no longer the hardest part of the business.

And having all the business you can handle is just tip of the iceberg. iNet agents also enjoy:

E&O fees ONLY when they close a transaction. No upfront E&O payments that can be in the thousands of dollars.
And,
NO monthly fees associated with many other offices.
NO Franchise Fees
NO Desk Fees
NO monthly advertising or marketing Fees
NO monthly admin Fees

How is all of this possible?

iNet Realty is a progressive real estate company with advanced proprietary technology and a System that wraps it all together. Many companies have bits and pieces but nothing like the iNet Realty System. This complete turnkey system is PROVEN to make ordinary agents immediately successful.

With the iNet Realty System, I am working with 65 buyers and sellers, 14 showing appointments, 5 offers, 1 listing, in my first 2 months at iNet Realty.  If you use the iNet System, it works! Jason Mitsuda (RA), iNet Realty

I love being at iNet Realty.  With the iNet System, I’ve closed 2 escrows, opened 4 more escrows and got my first commission check within 30 days of getting my real estate license. Niome Queypo (RA), iNet Realty

Having a tech background, I can tell you there’s no comparison to iNet Realty’s System.  It is the most powerful real estate system I’ve seen and makes real estate easy. Because of the iNet System, I’m working with 40 buyers and sellers, opened 4 escrows last month and 4 escrows this month.  It just works. Branden Lee (RA), iNet Realty

All of their success is a direct result of applying the iNet System…

Imagine yourself closing one transaction every month in your first year. Sounds impossible? That’s what Jason and Niome thought before joining iNet Realty and applying this amazing system.

iNet Realty is so sure that its system can make you successful, we offer the ONLY income guarantee in the industry…If you don’t make $50K in your first year using the iNet Realty System, we’ll pay you the difference in cash

If you’re one of the many agents finding it difficult to meet your monthly financial obligations, you owe it to yourself to find out more about the incredible iNet System that is already changing agent’s lives.

To find out more about this revolutionary system and receive a confidential information packet, leave your contact information after the beep. We will discreetly rush you this packet FREE of charge. The iNet Realty System is the new paradigm in real estate.

There is a limited supply of these FREE information packets so order yours NOW before they run out.

We also offer you a FREE Gap Assessment Analysis to find out how easily you can make 2011 YOUR BEST YEAR EVER.

Find out more by calling:
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  Negotiate Your Best House Buy

  Keep your emotions in check and your eyes on the goal, and you’ll pay less when purchasing a home. Read

Depending on your area, many times it is not that hard to find a great real estate deal. In some areas you’ll see 20 to 50 percent as distressed sales. Even with this type of market, there tends to be an elite class of properties that stand out among the distress category.

It could be because of location, condition, price or terms that cause these types of properties to be stand outs and it is in this category that I’ll share some secrets as to how to get them.

PART I

Short Sales

Based on price these seem to be one of the most attractive categories to pick from. Not only that, but there are so many of them. The problem with short sales is that it comes with a HUGE contingency. It is subject to the lender’s approval.

That means the buyer and seller can agree on the price and terms, but it means nothing until the bank approves it. Many banks have a loss mitigation department and their objectives can be quite different from the seller and buyer.

Tip 1

One key is to work with approved short sales . That most likely means an offer was submitted and the bank had approved that offer and for some reason it fell out of escrow. The buyer and seller already know that the bank will accept the price they did previously. This helps a lot when looking to purchase short sales.

Tip 2

It’s a numbers game. Most experienced short sale agents do not think much of the first offer(s). The Listing agent knows it just starts a process with the bank and that statistically the buyer will end up finding another property instead of waiting 4 to 12 weeks for a response. In this case, a second key is to recognize that purchasing short sales is a numbers game and it usually takes about 10 offers to equate to 1 close. Play the game correctly and you’ll have a valid chance at owing some really good properties.

Tip 3

Think in nets. Usually, a good story and a strong qualified buyer with a large down matters to sellers and is essential to getting your offer accepted. With banks being so overwhelmed with loan defaults, the standard mode of operation is the path of least resistance. The primary indicator that they use is what they will net from this sale. So when making offers, look to see how you can show that the bank will net the most from working with you.

Tip 4

You MUST have an agent team that is aggressive in follow up. Remember, your offer may be used just so that the Listing agent can start talking to the right bank department or person and you can easily be ‘forgotten.’ I can think of over a dozen stories like these from other agents in the past 2 weeks! Follow up is a must and you need to have someone who has the resources to do it.

Tip 5

Keep your deposit check. There is no reason to open escrow when such a major contingency exists. You can not tie up the property by being in escrow. Let’s say you open escrow and wait 8 weeks. In that time 4 other offers come in and are presented to the bank. The bank can accept another offer even if you are in escrow.

Tip 6

Work with an experienced team. Don’t get sold on what an agent can do for you, have them prove it to you. That’s right – if you miss this step you can waste a lot of time. Many agents do not have successful experience in this area, transact too infrequently or do not have a team.

Experience

If they are learning on you then you could be paying too much or missing out on the best deals. Ideally, you want someone that has been through a market cycle before, is working fulltime and has no other occupation. They should have specialization in what you are looking for. An easy way to tell is to look at their business card. If they are not even trying to brand themselves as an expert in the category you want, then why take that chance working with them.

Transactions

They should have no less than 10 qualified active buyer clients. If you are the only one or 1 of 3 then you should run. If you needed to do brain surgery, would you want a doctor that does 1 every 6 months or see the doctor that has 1 to 2 surgeries every day. There is safety in crowds and working with an agent that doesn’t have a strong active client following in your category is a huge indication to ask a lot more questions.

Team

If they do not have a team (a real team) that can service you then there is really no way you can find the best deals. The reason – it takes a lot of hard work. This is not rocket science type of hard, more like ditch digging hard. If you want a Grand Canyon real estate steal then you need to have an agent team that can throw their resources behind you.

Caution, don’t get tricked by a franchise name thinking familiar is better, because the reality is that all of their agents are independent contractors and the ‘team’ may be nothing more than promotion and not the ditch digging hard work needed to win the best real estate deals.

The best way to find out is to ask who is on the team, what do they do and how will they service you.

In the next series we’ll talk about how to get the best REOs on the market.

The front end ratio is a measurement of just the total monthly house obligations. The acronym PITI is commonly used. It stands for Principle, Interest, Taxes and Insurance. The Principle and Interest represents the montly mortgage payment, Taxes are the property taxes broken down to monthly increments, and Hazard Insurance to insure the structure from fire, natural disasters, etc. Although not part of the PITI acronym, monthly mortgage insurance payments and Association dues/fees if applicable would also be included when calculating the total monthly house expenses. The total of all of these monthly house expenses divided by your monthly gross income will be your front end ratio.
For conforming loans, the front end ratio is typically 28%
For FHA loans, the front end ratio is 31%.
Example:
Principle and interest payments= $1500
Property Taxes= $250
Insurance= $250
Total housing expenses= $2000

Gross annual income= $85,000
Gross monthly income= $7083 ($85,000 / 12 months)

Front end DTI= $2000 / $7083 = 28%

The back end ratio adds all monthly recurring debt to the total house debt to arrive at the back end ratio.

Orange County

NOD List

NTS List

Banked Owned

Los Angeles

Banked Owned

Riverside

Banked Owned

San Bernardino

Banked Owned

List Update for May 27, 2008

How Low Will They Go?

People have a major misunderstanding of what they expect to accomplish when trying to purchase distressed or bank owned property. I emphasize trying because those same people end up never buying anything.

So how low will the bank go on a short sale or REO? If you’re hoping for a number, you can stop reading. If you’re hoping to steal the property, you can stop reading. If you’re hoping to buy property for 50% of market value, you can stop reading. If you’re hoping to wait and buy the property for less by dealing directly with the bank, you can stop reading.

There are four things you need to understand: 1) The bank only accepts short sales when they believe it’s in their best interest! 2) Banks do not voluntarily accept losses. 3) Banks will always try to limit their losses. 4) Banks know the fair market value of the property.

These four are in no particular order. If they were, number four would probably be number one. I talk to people on a daily basis who want to make offers so low, I can only assume they think the bank has no idea what the property is worth. Don’t be so naive. The bank has a legal obligation to get the highest amount possible for any property. The bank can even be held liable for the difference if they are negligent in approving a sale that is too far under fair market value with no justification. Stories of someone picking up a property at 50% of market value are either urban legend or missing critical factors that played a part in the purchase.

You Can Get Good Deals In Distressed Real Estate

Yes you can. Just be realistic. If you think you can purchase real estate at a 50% discount, you’re not realistic. There isn’t one single situation, no matter how desperate, that would cause an owner to sell their home for 50% under market value when an experienced Realtor can sell that same house for 30% under market value in the same amount of time under the same conditions. Anyone who tells you they did is leaving out part of the story. However, it is very possible to buy distressed homes at a 25% discount. Anyone who tells you a 25% discount isn’t a good deal, doesn’t know real estate or investing in it and you’d be better off steering clear of the real estate advice they have to offer. As a matter of fact, a 25% discount on anything you buy, whether it be gasoline, groceries or a car, is a great deal.

I see so many people that won’t buy unless they can get it for no more than 60 cents on the dollar. They pass on property that’s 25% under market value. Big mistake, here’s why:

Let’s assume there are 10 properties with market values of $100,000 each. 9 of these homes can be purchased for $75,000 each (25% discount) and one at $50,000 (50% discount). This is a fair ratio for illustration purposes. In the real world, it could easily take you more than a year to wait it out for the 50% discount. It’s very possible that you never find something discounted that much.

Investor A buys the 9 homes for $75,000 each

Investor B buys the 1 home for $50,000

Assuming a 5% annual appreciation for each property, this is what each investors real estate portfolio would look like 5 years later:

Investor A’s Equity = $473,653 ($100,000 original FMV x 5% annual appreciation x 5years – $75,000 purchase price x 9 properties)

Investor B’s Equity = $77,628 ($100,000 original FMV x 5% annual appreciation x 5years – $50,000 purchase price x 1 property)

Investor B’s strategy to wait for the great deal cost him nearly $400,000. He made the mistake most amateur investors make; focusing on only one thing – discounted value. Investor A created wealth through leverage. Professional real estate investors know that leverage trumps discounted value every day of the year. Leverage is so powerful, had Investor A bought all 9 properties at full market value ($100,000), he still would have equity of $248,653 or triple Investor B’s investment with a 50% discount. In this market, you can buy real estate at a 25% discount all day long and maybe never find the 50% discount.

Top 10 Tips For Purchasing Short Sales and Bank Owned Property

1. Be realistic. Reread the tale of two investors above if you still don’t understand how being unrealistic can and will cost you dearly.

2. Get off the fence and get in the game. If you’re waiting for the market to drop, reread the tale of two investors above to remind you of how much waiting can cost. Learn more about timing real estate markets here: Secrets for Timing The Real Estate Market

3. Know the true market value of your target property.

4. When making an offer, be able to support the amount of the offer. Pulling a low ball number out of thin air isn’t going to work. If you don’t understand why, reread the four things you need to understand in bold type above.

5. In a short sale, the bank will only accept your offer if it’s a better alternative to foreclosure. This means that the bank will take the fair market value of the property in its current condition, subtract the costs of foreclosure and selling it as an REO, and the "fudge factor". The "fudge factor" covers the costs that will accrue if the bank has to take the property back at foreclosure and includes lost opportunity, risk of vandalism of the vacant property after foreclosure, declining market risks and time to sell as an REO. The "fudge factor" will be the only area the bank will be willing to negotiate. This is the supporting amount mentioned in tip #4.

6. In REOs, the bank can be more "motivated" during certain times of the year. They will generally be more likely to entertain low offers at the end of the month, quarter and year. The banks want to get real estate off their books and these calendar targets can create motivation. But remember, be realistic. Just because it’s nearing the end of the year, doesn’t mean the bank is going to jump at an offer that’s ridiculous.

7. Having access to REOs before they are listed can give you a big advantage. How do you get this information? Here’s one way: Hawaii REO Bargains

8. Don’t get emotional or stuck on any property. Real estate investing should be run like a business. Keeping emotions out of it allows you to make rational decisions.

9. Understand and accept the risks involved with these types of properties. To get the good deals, you will have to accept risks involved with them.

10. Retain the help of an expert Realtor with experience in these types of properties to help you. Don’t think you can do it yourself. That mindset can cost you thousands. Besides, as the buyer, you don’t pay for their services.

Hope this helps. Until next time, happy house hunting!

Elliot Lau

Judicial Foreclosure Available: Yes

Non-judicial Foreclosure Available: Yes

Non-judicial Sale Typically, a title insurance company is named as the trustee to arrange the sale of the real estate.

California is famous for its one-action rule, in which a lender must carefully elect one action to take against the borrower if the borrower defaults. If the lender forecloses the deed of trust out of court, the lender has chosen one action and may not bring a lawsuit to recover a deficiency, which would be a second action. If the lender chooses to sue the borrower and obtain both a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance. Such a suit is permitted as the lender’s one action.

California lenders rarely elect judicial foreclosures.

Preliminary Notice: Non-judicial

Notice of Sale

The notice of sale must contain the name, street address and phone number of the trustee conducting the sale and the original trustor, along with a statement warning borrowers that their property is about to be lost at a public foreclosure sale and to contact a lawyer for an explanation.

The notice must give the street address. If no street address exists, the notice must state the address of the beneficiary from whom a set of directions to the property may be obtained I they are requested in writing within ten days from the first publications of the foreclosure notice.

Advertising

A copy of the notice of sale must be posted in a conspicuous place on the property to be sold at least 20 days before the sale. If access to the property is restricted by means of a central guard gate, then the notice must be posted on the guard gate. A copy of the notice must be posted at one public place in the city where the property is to be sold (or judicial district in rural areas) at least 20 days before the sale.

Recording

A notice of trustee sale must be recorded at least 14 days before the sale.

Mailing

A notice of trustee sale must be mailed by certified mail, return receipt requested, 20 days before the foreclosure sale to the borrower, to anyone who requests notice or recorded a request and to the trustors, beneficiaries or parties at interest.

SaleProcedures: Non-judicial

Time

All sales under a power of sale in a deed o f trust will be made between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday through Friday, at the time specified in the notice of trustee sale.

Place

The sale shall commence at the location specified in the notice of sale.

Manner

The sale must be made a public auction to the highest bidder. The trustee has the right to require every bidder to show evidence of ability to pay the full bid in cash, cashier’s check or certain bank checks. Each bid is by law an irrevocable offer to purchase. However, a higher bid cancels an earlier bid. It is unlawful and a criminal offense (a fine of $10,000 or up to one year in jail) to offer anyone consideration not to bid, or to fix or restrain the bidding process in any manner.

Postponement

Sales may be postponed by announcement at the time and location specified for the intended sale. The borrower may postpone the sale in order to obtain cash, provided the written request for postponement identifies source from which the funds are to be obtained, and the postponement is only for one business day. The borrower may obtain one such postponement.

Reinstatement

Debtors may reinstate up to five days before non-judicial foreclosure sale.

Junior

Junior lien holders may no longer redeem, so they may try to protect themselves by (1) advancing funds to bring the senior loan payments current, then foreclosing for the sums advanced; (2) bidding at the foreclosure sale so the price will be sufficient to pay off the senor and the junior liens; or (3) acquire the property by bidding at the foreclosure. If the debtor has a right to redeem and does so, the junior who purchased the home must be reimbursed. Junior liens do not reattach the property if a borrower redeems a senior lien whose foreclosure extinguished the junior. This helps borrowers by encouraging the junior to bid up to the property to fair market value at the foreclosure sale, or else lose out, giving borrowers closer to fair value at sale.

Deficiency

Lenders may not seek a deficiency judgment if (1) the foreclosure is non-judicial or if (2) foreclosure is on a purchase money obligation. The same rules do not apply to guarantee or later lien holders. The lenders may seize alternative collateral. If the lender forecloses by filing a lawsuit, then the lender can obtain both a foreclosure sale order and a judgment against the borrower for a deficiency after the court-ordered sale, but only for the difference between the judgment and the fair value of the security.

Redemption

A borrower’s right to redemption is terminated when a deficiency judgment is waived or prohibited. When redemption is permitted, after judicial foreclosure, only the borrower can now redeem and junior lien holders or "redemptionors" may not. When the lender is permitted to seek a deficiency, elects to pursue a deficiency and forecloses judicially, the borrower may redeem 12 months after sale, but a full credit bid by the lender cuts it to 3 months.

Judicial Foreclosure Available: Yes

Non judicial Foreclosure Available: Yes

Foreclosure in Hawaii takes one of two forms: (1) judicial foreclosure by a lawsuit much like any other lawsuit or (2) sale under a power of sale clause in the mortgage.

Preferred Method:

Judicial foreclosure is the preferred method in Hawaii . Although trust deeds are available, they are not commonly used.

Judicial Foreclosure

In a judicial foreclosure, the Circuit court may assess the amount due on a mortgage, without a jury, and render judgment for that amount and an order of foreclosure on the mortgage. The actual sale of the property will take place in the same way as normal execution sales.

Non-judicial Foreclosure

Preliminary Notices

Advertising

Out-of-court foreclosures must be published, in English once per week for three consecutive weeks. The last publication must be run no less that 14 days before the sale date.

Mailing

Mortgage creditors having a mortgaged lien against the property that another mortgage creditor intends to foreclose on under a power of sale clause may, if a written request is given to the foreclosing mortgage creditor, receive notice of the lender’s intent to foreclose. The foreclosing lender must mail the notice to the other mortgage creditors at least seven days prior to the date of the sale.

Sale

The highest bidder at the foreclosure sale buys the property.

Post-Sale Matters

A buyer at the foreclosure sale holds title subject to the existing liens. Any surplus from the sale shall be paid over to the owner of the mortgaged property.

Special Procedures

A notice of any foreclosure on a condominium apartment must be sent certified or registered mail to the association of the condominium. This notice must be sent at the time the lender begins foreclosure proceedings. This provision may not be waived.

Redemption

Redemption rights have been abolished in Hawaii

The real estate market experienced a slight increase in sales in February, largely due to the battered housing market. National Association of Realtors report that February was the first month-to-month rise of the annualized pace since last July.

The median price of a single family home sold on Oahu during the month of February fell 2.5% to $599,000 from $614,500. We have been able to have modest sales because of this drop in prices.

The market is experiencing a large inventory of homes for sale and some builders across the country have been cutting back dramatically in the production of new houses.

The bad part of all this is buyers who bought late in the cycle, get hurt because they owe more on their houses than their house is worth. (Due to the sharp fall in housing prices.)

A lot of buyers cannot refinance because they did 100% financing.

500 University Avenue #2010, Honolulu Ala Wai Plaza 3/2.5 FS 1-2-7-13-2-304 2804426 $634,900.00

723B Makaleka Avenue, Honolulu & 723 Makaleka Ave. 5/3 FS 1-2-7-34-13-3 2800730 $690,900.00

2145 Palolo Avenue, Honolulu 4/2 FS 1-3-4-23-40 2721469 $609,500.00

54-177 Kawaeku Street Hauula 96717 SF 3/2 FS 1-5-4-19-40 2800415 $578,900.00

57-120 Lalo Kuilima Way #7B Kahuku 96731 Kuilima Estates East 1/2 LH 1-5-7-1-27-7 2720664 $289,555.00

84-937 Hanalei Street Waianae 96792 SF 6/3 FS 1-8-4-14-43 2719782 $434,500.00

91-1031 Kaimalie Street #4R1 Ewa Beach 96706 Mariner’s Place 3/2.5 FS 1-9-1-115-17-7 2803936 $349,900.00

No Price yet…

1778 Ala Moana Blvd. #1004 Discovery Bay LH 2/2 Recently remodeled

85-175 Farrington Hwy C430 Makaha Surfside/Makaha FS 0/1

91-1169 Kaileonui Street Ewa Beach SF FS 4/3

211 Kawaihae Street #D6 Honolulu Gateway Pennisula FS 3/2.5 Marina Front, remodeled kitchen

91-214 Makalea Street Ewa Beach Terrazzo – end house FS 3/2.5 Excellent condition home

98-729 Moanalua Lp #217 Pearl Ridge Terrace FS 3/1

92-515 Palailai Street Lower Makakilo SF FS 3/1.5 Corner lot, with a tree house

54-045 Waikulama St Hauula SF FS 5/3.5 Needs lots of work