Short Sale Flip Fraud – It’s not a law; nor is it an official policy, but it’s definitely going to be a problem regardless. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.

Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” Essentially, the article stated that a short payoff or a short sale can be considered fraudulent if the lender agrees to a short sale that already has a third-party buyer in place that is paying a higher amount than the agreed-upon loan payoff amount. This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The rest of the article detailed scenarios and red flags for “short payoff” fraud. The scenario revolved around a short sale facilitator who set up a deal with a lender to purchase a home worth 80K for 70K while the lender took a 30K loss. In the scenario, the facilitator fails to notify the bank he has a higher offer, 95,000, on the house. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.

The article urges buyers, sellers and lenders to be on the lookout for short payoff fraud red flags. These flags include sudden borrower default, a borrower who is current on other obligations and the buyer of the property being an entity rather than a person. The article also says that resale options in contracts can be a red flag.

Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.

Short Sale Flip Fraud – It’s not a law; nor is it an official policy, but it’s definitely going to be a problem regardless. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.

Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” Essentially, the article stated that a short payoff or a short sale can be considered fraudulent if the lender agrees to a short sale that already has a third-party buyer in place that is paying a higher amount than the agreed-upon loan payoff amount. This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The rest of the article detailed scenarios and red flags for “short payoff” fraud. The scenario revolved around a short sale facilitator who set up a deal with a lender to purchase a home worth 80K for 70K while the lender took a 30K loss. In the scenario, the facilitator fails to notify the bank he has a higher offer, 95,000, on the house. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.

The article urges buyers, sellers and lenders to be on the lookout for short payoff fraud red flags. These flags include sudden borrower default, a borrower who is current on other obligations and the buyer of the property being an entity rather than a person. The article also says that resale options in contracts can be a red flag.

Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:

* Internet Marketing – The internet continues to grow at an astounding rate and its value as a marketing medium grows even faster. With the expanding influence of social networking and the ability of “normal” internet users to directly interact with each other, the internet has become a center of social persuasion and an extremely viable medium for “getting the word out” about products and services available to average people. The benefits aren’t reserved for large businesses, either. While the internet has become increasingly competitive in recent years, it’s still imminently accessible as a marketing medium even for solo entrepreneurs with a modicum of determination and education.

* Hard Money Lenders– when real estate investors need cash funding for their deals, they frequently turn to hard money lenders who provide the needed funding in exchange for payment of up-front points and high interest rates. But in many cases, the real winner is the hard money lender who profits from a high-interest loan secured by very low loan-to-value ratios. For this reason, many well-funded investors are turning to hard money lending as an alternative profit strategy. Since the down-side risk for the lender is mitigated by an asset with significantly higher value than the money being loaned, the risk to reward ratio clearly favors the hard money lender.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:

* Internet Marketing – The internet continues to grow at an astounding rate and its value as a marketing medium grows even faster. With the expanding influence of social networking and the ability of “normal” internet users to directly interact with each other, the internet has become a center of social persuasion and an extremely viable medium for “getting the word out” about products and services available to average people. The benefits aren’t reserved for large businesses, either. While the internet has become increasingly competitive in recent years, it’s still imminently accessible as a marketing medium even for solo entrepreneurs with a modicum of determination and education.

* Hard Money Lenders– when real estate investors need cash funding for their deals, they frequently turn to hard money lenders who provide the needed funding in exchange for payment of up-front points and high interest rates. But in many cases, the real winner is the hard money lender who profits from a high-interest loan secured by very low loan-to-value ratios. For this reason, many well-funded investors are turning to hard money lending as an alternative profit strategy. Since the down-side risk for the lender is mitigated by an asset with significantly higher value than the money being loaned, the risk to reward ratio clearly favors the hard money lender.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

Jennifer sat on the living room sofa beside her husband of 2 yrs and, looking over at the Television she watched the lithe young female grinding and also gyrating. Although the news team had made an apparent endeavor to make the show family-friendly simply by cropping together with zooming in the video ın order that only the young female’s shoulders and face showed on the viewing display screen, she could easily tell that the initial video clip had most definitely been NSFW! “What’s on?” she questioned her husband.

“UmmMMMmmm,” Fred replied, turning up the volume.

“….an astonishing report of exactly how one brave young woman had enough of the ongoing debt trouble so she took matters into her own hands.”

“That’s correct, and also I must tell you, the story truly gives me the goose bumps. Let’s go to Michael who’s currently on location for more.”

(The media transmission cuts from the newsroom studio to an official government-looking location in front of which a twenty-something anchorman with smartly clipped sideburns stood attired in a blazer holding a microphone and planted next to the beautiful young girl from the clip. the young woman was at the moment donning sophisticated dangling gold earrings, motion picture starlet colored glasses along with a small yet chic cashmere shirt that accentuated her firm bosom flawlessly)

“Leslie, Erin, I am talking with Anastasia Kornienko, a cosmonaut from the Russian Space Agency. The unbelievable adventure all started off with a freak asteroid mishap, is that right Anastasia?” the anchorman asked, offering up the microphone so that the girl could talk.

“Yes, is certainly correct. Asteroid was built of ice so did not show up on radar. We use significant fuel to avoid last minute collision.”

“Amazing,” Michael interjected, “Just what exactly happened after you concluded the ship couldn’t contain sufficient fuel to be able to come back to our planet?”

“Well,” the woman cosmonaut chuckled to herself, “This crisis went from – how do you say – bad to worst. After I passed details concerning fuel situation to base they claim that delivering new energy resource supply vessel is not even conceivable. Due to modern world money problems, Russian Space Agency can’t fund energy resource supply vessel.”

“So Anastasia, let me ensure I have this so far,” Michael interrupted. “You are in space, driving a rocket from the Russian Space Agency. You swerve so that you can avert an uncontrolled asteroid not to mention by the time you’ve maneuvered to get back on course, more fuel has already been used than was allocated for the round-trip voyage, is that right?”

“Yes, is accurate,” Anastasia nodded enthusiastically, the earrings dancing in the light of the news camera.

“Please convey to our viewers at home exactly what transpired next,” the news anchorman encouraged.

“Well, allow me say first factor – I have family. Not seeing them once more was not alright to me. And so I needed to – how do you say – think outside your box. All I have got to work with is myself, transmission equipment, and big spaceship which has no fuel. Therefore only solution I can imagine is become webcam model girl and raise funds for Russian Space Agency to dispatch energy supply ship.”

“I see. Just what exactly made you believe that you might pull it off?” Michael asked.

“Well, I have sibling and cousins who are webcam models. They like it. My family have got good genetics, everyone in family is beautiful. Therefore sister and cousins make very excellent rubles webcam modeling.”

“I see, and I expect that being the only Russian cosmonaut to ever before get to be a webcam girl practically gave you an exclusive specialized niche to perform in. Was it enough in the end to pay for the gas supply vessel?” the anchor asked.

“Well do you see me here now?” the Russian webcam model shot back, smiling.

“Yes we certainly do,” Michael replied in a deep voice, quickly glancing down and back up again into the woman’s eyes. Then, turning back again to the camera he continued, “And there you have it, our own galaxy’s first interplanetary – and sexiest webcam model. Leslie, Erin, back to you in the studio.”

“Wow! That’s such an extraordinary account,” Leslie said in appreciation and wonder, looking at Erin.

“Yes without a doubt. Quite the entrepreneurial soul she has. Anastasia, make sure you explain to the TV audience back home precisely how they can become a web model too. We have got to do something in relation to this economic uncertainty, lots of individuals are still needing occupational opportunities,” Erin stated.

“Yes, you could go to Webcam Modeling website and there you find info regarding webcam model jobs. Is actually incredibly straightforward system and easy to start up; we earn income straight away.”

“Thank you Anastasia, our collective hat is off to you. You’ve undeniably made your nation proud. What a brave young lady!” Erin said, and referring to her notes promptly added, “Since her return landing, Anastasia has founded her own internet based dating business. She claims that her modeling experience has paid her a substantially greater income in comparison with her former employment as a Russian cosmonaut and she plans on following this much more rewarding path her fine genes and also looks have made it possible for her to explore. All of us genuinely wish her the best of luck. In case you would like to get in contact with Anastasia, you can find out more simply by proceeding to WebcamModelingTalk.com and clicking her photograph at the bottom on the left hand side. What an awe-inspiring young lady, she really has a whole lot going for her. Well stay tuned, just after the break as we cover the bank-robbing carjacker that law enforcement officers fired forty-two rounds at in a Wendy’s drive-through to attempt to save mother and toddler…”

Chewing another bite of Stroganoff, Fred pressed the downward switch on his Television remote control volume and considered for a moment. “You know, that’s not a bad idea.”

“Yeah, that is just what I was thinking about,” Jennifer agreed, and looked in the direction of the empty baby room.

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:

* Internet Marketing – The internet continues to grow at an astounding rate and its value as a marketing medium grows even faster. With the expanding influence of social networking and the ability of “normal” internet users to directly interact with each other, the internet has become a center of social persuasion and an extremely viable medium for “getting the word out” about products and services available to average people. The benefits aren’t reserved for large businesses, either. While the internet has become increasingly competitive in recent years, it’s still imminently accessible as a marketing medium even for solo entrepreneurs with a modicum of determination and education.

* Hard Money Lenders– when real estate investors need cash funding for their deals, they frequently turn to hard money lenders who provide the needed funding in exchange for payment of up-front points and high interest rates. But in many cases, the real winner is the hard money lender who profits from a high-interest loan secured by very low loan-to-value ratios. For this reason, many well-funded investors are turning to hard money lending as an alternative profit strategy. Since the down-side risk for the lender is mitigated by an asset with significantly higher value than the money being loaned, the risk to reward ratio clearly favors the hard money lender.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

Real Estate Investing is a tough business right now. While the business of buying and holding real estate as a long term investment remains a legitimate and viable strategy for wealth building, profit is no longer guaranteed as it once appeared to be.

With that in mind, the astute real estate investor will consider some specific real estate investment concepts to complement the “tried and true” strategy of long-term buy-and-hold investment houses:

* Internet Marketing – The internet continues to grow at an astounding rate and its value as a marketing medium grows even faster. With the expanding influence of social networking and the ability of “normal” internet users to directly interact with each other, the internet has become a center of social persuasion and an extremely viable medium for “getting the word out” about products and services available to average people. The benefits aren’t reserved for large businesses, either. While the internet has become increasingly competitive in recent years, it’s still imminently accessible as a marketing medium even for solo entrepreneurs with a modicum of determination and education.

* Hard Money Lenders– when real estate investors need cash funding for their deals, they frequently turn to hard money lenders who provide the needed funding in exchange for payment of up-front points and high interest rates. But in many cases, the real winner is the hard money lender who profits from a high-interest loan secured by very low loan-to-value ratios. For this reason, many well-funded investors are turning to hard money lending as an alternative profit strategy. Since the down-side risk for the lender is mitigated by an asset with significantly higher value than the money being loaned, the risk to reward ratio clearly favors the hard money lender.

It’s a different world in the real estate investment business. It would be very, very simple to think that the foreclosure crisis has caused the door of opportunity to be slammed entirely shut. Yet that’s simply not the case. When one observes the state of the real estate market, it is undeniable that fundamentals matter more than ever. For example, the selection of the local real estate market is of greater importance than ever, considering the huge disparity that exists among the thousands of real estate markets across the United States. Additionally, the role of regulatory compliance is greater than ever given the activist nature of the current presidential administration.

Without a doubt, there are very major challenges in today’s real estate investing market. But with some persistence, determination and creativity, there is still plenty of opportunity.

Your second choice, encapsulation, involves containing the asbestos materials so that the particles do not become an airborne hazard. It might save you some money initially, but encapsulation doesn’t mean you will never have to worry about the asbestos again – it just might delay it for a while. Before any construction, renovation, or demolition can take place on a commercial building, owners must have their property inspected, so due to the potential risks, removal might make more sense. When choosing between asbestos removal or encapsulation, remember that removal takes care of the problem for good. Because they are certified at the state level, asbestos removal companies know how to deal with asbestos materials in a safe and proper manner, adhering to environmental laws and occupational safety standards as they do.  Mark Attwood 

In an industry such as this, you have options, and you would be wise to screen for the right firm. Don’t be hasty when it comes to hiring the right contractor; you want one who gives you confidence in their ability and experience. So as you sort through the available asbestos removal companies, choose one who makes safety and customer satisfaction a priority. You will want to conduct interviews, check references, and be sure the asbestos removal company is not associated with the asbestos inspector, thereby avoiding a conflict of interest. There are many asbestos removal companies to choose from, so approach your search with common sense and do your homework to find the best one.  Mark Attwood

Virtual real estate investing probably makes you think of a number of things. Depending on how familiar you are with real estate investing already, you might think of hard money lenders or real estate portfolios and real estate retirement plans, or you might focus on short sales, bulk reo investing and virtual real estate investing. You probably also wonder how these things play out in real estate investors life in the current economy.

You can learn a lot about real estate investing. To get the most out of real estate investing education, be familiar with basic information ahead of time. Short sales, bulk reo sales, virtual real estate and general real estate investor abilities all are improved by knowing some basics of real estate investing. Here are three real estate investing basics that even some experts do not really know:

1. Real estate investing education always yields positive. Every good real estate deal represents thousands of dollars in potential wealth. The knowledge of how to get that wealth is the key to your success. Knowing more about real estate betters your odds of success when you do a real estate deal. Small investments in education yield big results upon implementation.

2. Real estate investing success is possible in any economy. Many people think that you can only succeed in real estate when the economy is booming. In reality, a bad economic situation is not bad for real estate investors. You can often buy properties at deep discounts. Additionally, you may find deals that would not exist in a booming economy. Real estate investing often is what turns the tide for poor economies. When the economy is not so good, short sales, bulk reo sales and virtual real estate are great. You can save yourself from financial difficulty along with others by knowing how to do these deals.

3. You do not need lots of your own cash to be a successful real estate investor. You can be a success in real estate investing no matter how much money you have on your own. There are lots of types of deals that you can perform with the money of other people. If you appear to be a solid investment you may be able to use a private lender’s money. A person who is a solid investment knows as much as possible about real estate investing. This will help you represent yourself as a good investment to private lenders who do not know how to make money in real estate investing.

A good deal of wealth can be generated with real estate investing. You can create income regardless of the economy. You can create your own success using your knowledge of short sales, real estate investing, bulk reo sales and virtual real estate. Knowing the basics of real estate investing will help you succeed as a real estate investor. Knowing some real estate investing basics (beyond what older gurus like Robert Allen teach) and applying them will help you succeed as a real estate investor.

Great real estate investing resources are available at RealEstate.BryanEllis.com.

With more foreclosures now than ever before, America’s weak real estate market seems to set new dismal records each month. Yet as always, this challenge has given rise to a huge new opportunity for alert real estate investors.

The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a real monster.

Take a just a minute to consider the basics of this highly profitable business.

Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.

A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender. After a certain period, the lender will then formally begin foreclosure proceedings. From that time through public auction is called ‘preforeclosure’.

Foreclosure is completed when the property is put up for auction. The lender regains ownership of the property if there are no buyers at auction. The lender then categorizes the property as ‘Real Estate Owned’ – or ‘REO’ for short.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. But as a consequence of the weak economy, lenders are frequently selling their REO properties far below their actual value. The trade-off is that the buyer must purchase multiple REO properties in each transaction.

The REO investment packages available today have provided a way to profitably capitalize on the U.S. recession. One of the best ways to take advantage of Bulk REO Investing opportunities is to partner with a well-regarded source of funding. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Buscemi of Dandrew Capital Partners, a hedge fund in New York.