Wendy Patton talks more about Buying and Selling Real Estate on Lease Options in Indy and elsewhere.  She isn’t trying to sell you guru abilities, she is actually teaching you.

She speaks about talking with Realtors in Indianapolis and elsewhere. How to qualify Realtor listings and educate Realtors about creative selling techniques in Indianapolis and elsewhere.

Over 35 minutes of class time boot legged(not really) from Wendy Pattons’ Buying and Selling Real Estate Boot Camp… People paid thousands of dollars for this bootcamp, and you are getting a taste of it for free!

If you are looking to invest in real estate in Indianapolis or elsewhere, this is some great info!

Lee’s notes: Jon and I were talking the other day about Pareto’s 80/20 rule, and motivation etc.. Not sure if that was his motivation for this post, but it’s all good….

Jon Zorrer takes a Cuzz, and talks about time, and how to manage it. Talks about Greg Clement from realeflow.com, and Jack Walker who are creators of the Smart Internet Marketing Solution System(SIMS). Talks about finding 40 new buyers a week with little to no effort. All the deals you can handle while buying, selling, and investing in homes in Indianapolis, or wherever.

Three types of days: focus days, buffer days, and freetime days. Focus days are where you concentrate on the 20% of things that produce revenue(Pareto Principle).  Buffer days are where you catch up, and do the 80% things that need to get done, but don’t necessarily produce revenue. Freetime days are where you do your best to complete no work whatsoever. Basically you take 24 hours to rejuvenate, rest, and regenerate.

Full time investors should be using a schedule of: Mondays are focus days. Tuesday is a buffer day. Wednesday and Thursday are focus days. Friday is a buffer day. Saturday and Sunday are freetime days(try to avoid work at all costs).

Lee’s notes: We have 3 year old, but I saw this, and wow is it right on! Especially #2…

Preparation for parenthood is not just a matter of reading books and decorating the nursery. Here are 12 simple tests for expectant parents to take to prepare themselves for the real-life experience of being a mother or father.

1. Women: to prepare for maternity, put on a maternity shift and stick a 30 pound sack of potatoes down the front. Leave it there for 9 months. After 9 months, take out 10% of the potatoes.

Men: to prepare for paternity, go to the local pharmacy, tip the contents of your wallet on the counter, and tell the pharmacist to help himself. Then go to the supermarket. Arrange to have your salary paid directly to their home office. Go home. Pick up the paper. Read it for the last time.

2. Before you finally go ahead and have children, find a couple who are already parents and berate them about their methods of discipline, lack of patience, appallingly low tolerance levels, and how they have allowed their children to run amok. Suggest ways in which they might improve their child’s sleeping habits, toilet training, table manners and overall behavior. Enjoy it – it’ll be the last time in your life that you will have all the answers.

3. To discover how the nights will feel, walk around the living room from 5pm to 10 pm carrying a wet bag weighing approximately 8-12 pounds. At 10 pm put the bag down, set the alarm for midnight, and go to sleep. Get up at 12 and walk around the living room again, with the bag, until 1am. Set the alarm for 3am. As you can’t get back to sleep, get up at 2am and make a drink. Go to bed at 2.45 am. Get up again at 3am when the alarm goes off. Sing songs in the dark until 4 am. Set the alarm for 5am. Get up. Make breakfast. Keep this up for 5 years. Look cheerful.

4. Can you stand the mess children make? To find out, smear peanut butter onto the sofa and jam onto the curtains. Hide a fish stick behind the stereo and leave it there all summer. Stick your fingers in the flowerpots then rub them on the clean walls. Cover the stains with crayons. How does that look?

5. Dressing small children is not as easy as it seems. First buy an octopus and a string bag. Attempt to put the octopus into the string bag so that none of the arms hang out. Time allowed for this – all morning.

6. Take an egg carton. Using a pair of scissors and a pot of paint turn it into an alligator. Now take a toilet tube. Using only scotch tape and a piece of foil, turn it into a Christmas ornament. Last, take a milk jug, a ping pong ball, and an empty packet of Coco Puffs and make an exact replica of the Eiffel Tower. Congratulations. You have just qualified for a place on the playgroup committee.

7. Forget the Miata and buy a Taurus. And don’t think you can leave it out in the driveway spotless and shining. Family cars don’t look like that. Buy a chocolate ice cream bar and put it in the glove compartment. Leave it there. Get a quarter. Stick it in the cassette player. Take a family-size packet of chocolate cookies. Mash them down the back seats. Run a garden rake along both sides of the car. There. Perfect.

8. Get ready to go out. Wait outside the toilet for half an hour. Go out the front door. Come in again. Go out. Come back in. Go out again. Walk down the front path. Walk back up it. Walk down it again. Walk very slowly down the road for 5 minutes. Stop to inspect minutely every cigarette butt, piece of used chewing gum, dirty tissue and dead insect along the way. Retrace your steps. Scream that you’ve had as much as you can stand, until the neighbors come out and stare at you. Give up and go back into the house. You are now just about ready to try taking a small child for a walk.

9. Always repeat everything you say at least five times.

10. Go to your local supermarket. Take with you the nearest thing you can find to a pre-school child – a fully grown goat is excellent. If you intend to have more than one child, take more than one goat. Buy your week’s groceries without letting the goats out of your sight. Pay for everything the goats eat or destroy. Until you can easily accomplish this do not even contemplate having children.

11. Hollow out a melon. Make a small hole in the side. Suspend it from the ceiling and swing it from side to side. Now get a bowl of soggy cereal and attempt to spoon it into the swaying melon by pretending to be an airplane. Continue until half the cereal is gone. Tip the rest into your lap, making sure that a lot of it falls on the floor. You are now ready to feed a 12-month old baby.

12. Learn the names of every character from The Wiggles, Dora the Explorer, and Teletubbies. When you find yourself singing “Backpack” at work, you finally qualify as a parent.

Great interview with Wendy Patton talking about lease options, land contracts(contract for deed). Lots of creative ways to purchase and sell real estate in Indianapolis with little to no money down. Also talking about different ways to market for buyers and sellers.

Wendy Patton started out investing in real estate in 1985. She started out using credit cards, and quickly learned that wasn’t the way to go. She has since published 4 major books about real estate investing, and understands how to buy and sell property in Indy with no money down.

Thank you to Dyches Boddiford, Elmer Diaz and National REIA for sounding the alarm and organizing vitally-needed action on this issue . . .

Pete Fortunato recently brought this Bill to my attention.

It has already passed the House of Representations and has been sent to the Senate. If it passes in its current form, it will restrict owner financing to once every 36 months (HR 1728 Sec 101(3)(E)). While this may not be much of a problem when we get owner financing from sellers, it severely restricts our ability to sell with owner financing.

Though the bill mainly deals with amendments to Truth-in-Lending for mortgage brokers and banks, this one section could reap havoc. This could limit not only your sales where you take back a mortgage, but _your lease-options and land contracts as well_.

Here’s the latest version of the Bill: http://www.govtrack.us/congress/billtext.xpd?bill=h111-1728

All owner carryback financing should be exempted from this bill. As one commentator noted, if this is left as is, it is a taking of private property rights. We can wait for someone else to fight it, but as for me, I am contacting my Senators today to let him know what I think. I suggest you do the same.

You can find and contact your Senators here: http://www.senate.gov/general/contact_information/senators_cfm.cfm Keep it short and to the point, but let them know your thoughts! Pass this along to your investor friends.

Dyches Boddiford

Lee’s notes: There is some new policies coming out that state you may be able to use the 8k first time home buyer tax credit as part of your downpayment on a new house.. Once again a first time home buyer is classified as someone who has not owned a home in 3 years, or ever. Found this article, and figured I would share.

FHA loans with no money down? You have to admit that HUD has an interesting idea.

On May 11th HUD posted an official notice for lenders saying that first-time borrowers could apply their $8,000 tax credit toward downpayments. This sounds good at first, but if you look closely at the policy it raises some complex questions.

HUD posted the May 11th notice and then withdrew it. However, everything online remains online eternally, so you can readily read what HUD had to say in Mortgage Letter 2009-15 because it’s been re-posted on a non-HUD site.

Given the current surplus of homes for sale — especially in California, Arizona, Nevada and Florida — any effort which is likely to reduce our bloated housing inventories should be welcomed. But while the thinking here is good, the complications are considerable.

New Policy

Now HUD is back with a revamped tax credit policy and a new 2009-15 mortgagee letter. What the policy says is very different from the original announcement. As HUD explains:

____”Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments.”

That sure sounds like you can use the $8,000 tax credit toward a downpayment. However, the very same release also says:

___”Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate.”

Translation: You still need 3.5 percent down from savings or from a gift if your financing comes from a commercial lender, but if the financing comes from a state housing agency or a non-profit then you can apply the tax credit toward a downpayment.

I have great sympathy for what HUD. They get big credit for trying to help home sellers by making the loan process for buyers more attractive. There is an essential decency to this effort. That said, the idea of purchasers buying with no money down is a part of what got us into the mortgage meltdown in the first place — and that’s not comforting.

For specifics, please speak with lenders and state housing organizations.

The complete news release is below:

DONOVAN ANNOUNCES RECOVERY ACT’S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME

FHA plan will stimulate new home sales and help stabilize housing market.

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration’s homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA’s current market share, it’s estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

Lee’s Notes: This is another interview from Jon Zorer with Michael Keefe, a real estate investor near atlanta GA who specializes in buying and or investing in real estate via buying tax deeds or liens at real estate tax sales. 

Would you like to make high interest return or buy a property for pennies on the dollar? Michael Keefe talks about buying homes at tax sales. Each state varies on their returns, and timelines involved, but this is another highly creative way to get great returns on a real estate investment in Indianapolis or wherever.

The general principle is that you purchase the property at a tax sale. The owner has a certain amount of time to buy-back the property(1 year generally) with interest of around 10-25%. During this redemption period, you(as the investor) can’t really do anything with the property(put a tarp over a leaky roof maybe, but no renovations are recommended). If the owner doesn’t redeem, then you can file the appropriate paperwork(s) to get the deed in your(or your companies) name, and then that home in Indianapolis is all yours! This all depends on your local state laws regarding tax liens/deeds, but you get the picture. Definitely want to check with your local real estate attorney or another real estate investor to find out all the bonuses and pitfalls, but overall a great way to put your money to work for you!

Lee’s Notes: I am working with one of the top dog up and coming real estate investors out of New Jersey, and he and I are collaborating on some webinars etc. So I wanted to share some of his past video interviews with some of the big names in Real Estate Investing.

Would you like to make half million, million, or two million dollars in commercial real estate investing in Indianapolis or elsewhere? Now is definitely the time to buy real estate.

Peter Conti speaks about commercial real estate investing. Peter also offers 7 free videos at his website FreeCommercialMentor.com. Peter talks about gaining rapport with sellers.

“Commercial Real Estate Investing For Dummies” is Peters’ new book. Check it out at amazon.com or your local book store!

Whether you are looking to buy commerical real estate in Indy or elsewhere, it is a GREAT time to buy! Get in on the ground floor and get your life in order!

Lee’s Notes: My family is pretty artsy.. We build a lot of things, and my son doesnt thing there is a single thing he can break, that I can’t fix… Well, except for when Daddy sat on his Avalanche toy truck and snapped the wheels off, but I digress…

We have been looking for a playset for our son, and came upon Cedarworks. They have some brilliant stuff, and we have been in awe of their equipment since last year when we ordered one of their catalogues. Well fast forward a year, and my father who is very handy decided to take one of their Rascal Ramps for inspiration and built a ramp for one of his clients.. Came out rather well, and Cedarworks liked it as well!

If imitation is the sincerest form of flattery, consider us very flattered. We recently received an email from Dale Smith of Indy, Indiana (“a corn field with a race track in the middle” according to Dale) in which he describes an unusual project he had just completed. It seems that the assistant minister of his church needed some way for his son to access the loft area of his bedroom, and asked Dale whether he could help.

My real estate investing lawyer, Matt Griffith, hit me up last night about a new Fannie Mae program that allows investors to get financing on some of their REO properties… This comes from a local mortgage broker, Mickey Brooks (317 218.0283), who has the contacts to get deals done in a couple of states nationwide, so give him a call, and if he can’t help you, he can prolly refer you to someone who can!

“Dear Valued Partner,

As we enter 2009, the crisis in the financial markets seems to be the top story on every news channel. But many of the reporters and so-called pundits don’t understand what really happened, what’s happening today…and what may happen next.
That’s why I’m excited to tell you about a series of articles I’m creating to put an end to the confusion once and for all! In these easy-to-understand articles, with help from many resources, I explain in layman’s terms exactly what caused the current financial crisis, what the almost daily news reports really mean – and what to be watching for in the near future.  The content for these articles comes from various services that I have invested in to stay up to date and educated, in order to always best serve as your trusted advisor. It’s important to me to stay on the leading edge as a professional, and when I saw these resources, I wanted to make them available to you as well.   I’ll attach basic stories behind the crisis for your review, to help you better understand what happened, why, and where we’re going from here. The few minutes you spend reading them will open your eyes to what very few experts truly understand.

As your trusted advisor, I’m committed to doing whatever I can to help you understand what the current economic situation means for you going forward in 2009.
Give me a call if you want to discuss strategies for strengthening your financial future in the weeks and months ahead.

Fannie Mae HomePath Financing Program
Fannie Mae has just released a new program called HomePath to help consumers buy and finance many of their REO properties.  All FNMA REO properties are not eligible for HomePath financing.  Only those properties listed at the following web site www.homepath.com  with the HomePath logo qualify for this program.

Mortgage Financing  The benefits include:
•  Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
•  You may qualify even if your credit is less than perfect
•  Available to both owner occupiers and investors (Primary, Secondary, Investment)
•  Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer (2% Seller Maximum)
•  No mortgage insurance
•  No appraisal fees
•  Also eligible for HomePath Renovation Mortgage (see details below) (Primary Residence Only)

Available only on homes you make your primary residence  and offers these benefits:
•  Financing to fund both your purchase and light renovation.
•  Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate).
•  Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer.
•  No mortgage insurance.
•  Renovation funds are borrowed as part of the purchase financing and held in escrow until the renovations are completed.
•  Renovation Costs limited to 20% of the “as repaired or completed” value or $30,000, whichever is less, and renovations must be completed within 3 months of closing.

About Fannie Mae Homes

•  Why does Fannie Mae have properties for sale?  Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.

•  What kinds of properties are available in the Fannie Mae HomePath database?  Fannie Mae’s HomePath database includes only properties that are owned by Fannie Mae. There is a wide selection of homes, including single-family homes, condominiums, and town houses — located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

•  How is buying a home owned or managed by Fannie Mae different from other home purchases? Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.  When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.•  Has Fannie Mae fixed everything in the house? Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement. Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn’t mean everything in the house is new, or even works. Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense. You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.

•  What can you tell me about this house? If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.

•  What type of sales contract does Fannie Mae use? Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don’t understand or aren’t comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.

•  Do I have to use Fannie Mae’s selected title, settlement, or escrow companies? No. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.

•  Will Fannie Mae accept an offer contingent on the sale of my house? No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.

•  Why does Fannie Mae require a lender’s prequalification statement before negotiating a home purchase offer? Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range. A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.

•  Does Fannie Mae provide special financing? Special financing is available on many properties through HomePath Renovation Mortgage.

•  Can I buy a house directly from Fannie Mae without going through a real estate sales professional? No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.What happens if Fannie Mae gets more than one offer? All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest. Fannie Mae is not obligated to accept any offer submitted.

General Mortgage Lending Terms
(Underwriting conditions may change on a per transaction basis)