Turn Chicken Shit into Chicken Salad – Real Estate Strategies

Turn Chicken Shit into Chicken Salad – Real Estate Strategies

We attended a Real Estate Cash Flow seminar this weekend. The format was the same. There were several speakers presenting their products and explaining why you needed it.

The difference this year was that attendance was smaller and the prices for the course and materials were cheaper and there appeared to be more bonuses added.

Only a year or 2 ago the cost of a 3 day Real Estate Seminar was around $5,000, this time it got dropped to $997. Is it the economy? Are people not willing to spend as much money or just not able to come up with the funds?

For some this is a great time to buy. Prices are being slashed and there are a lot more bonuses. Likewise, there are a lot of bargain real estate investments as well. America is on sale. There are a lot of strategies out there and a lot of money to be made when you do it right. Always keep learning and growing. They say you are the average of the 5 people you hang out with most of the time. Your income and success will reflect that as well so find other people who are smarter and richer than you are.

So what do you do if you are trying to clean up the mess that this economy and lending industry has caused? There are a lot of people who have homes and investments that are upside down and have negative equity and negative cash flow.

Here are 5 Options
1. Keep paying – Can you generate enough income to support the negatives? How long can you keep paying before you run out of money? How many hours can you work? This is not the best option to keep paying the lenders while you give every drop of sweat and blood.

2. Negotiate with the 2nd or 3rd mortgage lender to lower the payments or amount due. They know that in a foreclosure the 2nd and 3rd may not get anything. Sometimes you can lower a 100k loan down to 10k or 20k.

Negotiate with the first mortgage lender to modify the payments down to an amount you can manage. Let them know what that amount is and let them figure out how that will be set up.

The lenders do not want more foreclosures and properties to deal with so they have more motivation now to work with the homeowner.

Make sure to review this with your lawyer before you sign anything to make sure there are no legal mambo jumbo that puts your livelihood at stake. Remember the lenders are looking out for themselves and will make you responsible for paying until death and maybe even beyond that day. To protect yourself go to www.PrePaidLegal.com/hub/LoisThrelkeld and sign up for unlimited legal advice. We use the service all the time for our real estate business. It is only
$26 /month and the law firms used are AV rated which is the highest rating.

If you do not want to keep the property, sell it short. That means you sell the property for less than what is owed and negotiate with the bank.

3. Do a deed in lieu of foreclosure. There are no deficiency judgements as the lender is accepting the property to avoid the foreclosure process. That means you will not be liable for the back payments or loan balance.

4. Let the property go to foreclosure. The bank takes the property back so what. The worse that can happen is your credit score goes down. There was a time when we paid cash or used checks and did not use credit cards and we survived without it. Saving your credit but losing all your money and being all stressed and not eating or sleeping is not worth it. Besides you can build your credit back up in 1-2 years.

5. Declare Bankruptcy. This obviously is the last choice. The most common are Chapter 7 or Chapter 13. Chapter 13 is for reorganization of debt so you are still responsible for repayment. Unless you have companies/ businesses and you know that your business and income will be able to cover the debt this is not the best choice.

Chapter 7 is total liquidation of debt. That means all your debt is wiped out and you have to literally start all over without any money. Well the good news is that you can build your credit and money back and this time you will do it better and smarter.

The information provded are suggestions only and from my personal experience so you should always consult with a lawyer and CPA. To get some legal advice, go to www.PrePaidLegal.com/hub/LoisThrelkeld and now sign up for the service.

After you negotiate with the lenders so the payments are more manageable then you can save your home as long as you make the payments. The same goes with investment properties. So how do you turn things around and have your investment property make money?

To change to a positive cash flow on single family home rentals, do a rent to own / lease option. Have the tenant buyer give you a non-refundable deposit ( between 5-10% of purchase price) so now you have extra money. Make the monthly payments from your tenant buyer higher than your payments so you can get a little extra monthly cash flow. The tenant buyer takes care of the property. Now you got money in your pocket and monthly cash flow.

That is how your turn Chicken Shit into Chicken Salad.

Amy Yoshimitsu
Lois Threlkeld

check out this website www.PrePaidLegal.com/hub/LoisThrelkeld

Investing in Your Future

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