Mike Knows Short Sales » short sale news

Underwater Homes by 14-17%

Mike Ouellette — Tue, 07 Dec 2010 15:40:28 +0000

Housing Currently Undervalued by 14% to 17%

(Source: DSNews 12/6/10)

No surprise there right? Well it is a BIG SURPRISE if you HAVE TO SELL before the bank takes it back. If you have bought in the last 10 years and have put less than 20% down payment then chances are your HOUSE IS UNDERWATER. So what do you do? If it makes sense not to loose it to the bank for a foreclosure on your record (that will hurt your credit for the next 7-10 years) then you SHORT SALE YOUR HOUSE. A successful short sale (meaning it is negotiated and closed with a buyer) then you have a chance to restore your credit within couple of years! I am an advocate of such measures not because I own and run a short sale negotiation business www.LossMitigationSpecialistGroup.com, but my wife and I have had to face the same decision.Be that as it may it is not about wrestling with the past it is about moving toward the future. Feel free to inquire how to sell your home undervalue!

Keep it Short,

Mike Knows

Mikeo@lmsgnow.com

http://www.dsnews.com/articles/research-firm-says-housing-currently-undervalued-by-14-to-17-2010-12-06

Distressed Sales 29% to 59% of Home Sales in the 2010 Market!!

Mike Ouellette — Sun, 11 Apr 2010 22:31:04 +0000

So here is where I CHALLENGE all of you whom raise their nose in the air, or let out a “but they are so difficult to deal with” to read this. STOP THE CHATTER in your head for 2 minutes. Ok, that was better then getting a hysterical slap off the cheek or cold water poured on you when you are having a nightmare (ask my buddy Gino about that one LOL)!

The article that I am sharing is simply the January 2010 statistics on the type of sales in our real estate world. I am one to recoginze change after I have fought it and usually been effected by not adapting to it, but I am also one that once I catch on….LOOK OUT. So this article basically states the obvious with what is out there in the market. In my own experience it has been in the Massachusetts market for the last 3 years. I personally have been effected and in it for the last 2 1/2 years. So, basically the reason for my bantering is because there are many RE Professionals (you know who you are) that still do not want to recognize that there is a viable opportunity in this market (namely short sales), but you refuse to listen and act on what I have for you. What you say? You already know? Hmmm not sure we’ve met or even done business together. Anyway, I have built a full service RE business that is working this market in short sales and other stuff. I have even created training and trained many to work with me…..and benefit. I would cal this a shameless plug if I were selling something but I am not….it’s FREE. I just need willing, able, and focused individuals to make it work. Want to know more. See my free report on my blog or email me at Mikeo@LMSGnow,com

http://www.dsnews.com/articles/distressed-sales-take-larger-share-of-market-first-american-2010-04-08

Keep it short,

Mike Knows

What’s Your Defensive Interval Ratio?

Mike Ouellette — Mon, 03 Aug 2009 15:18:00 +0000

Do you know your defensive interval ratio? Most novice short sale investors don’t’ have a clue what this even refers to while veteran investors have probably already rattled off their ratio. If you aren’t the accounting type don’t worry – a defensive interval ratio Is really quite simple. It’s the level of liquidity that reflects the ability of your business to meet current debt obligations. Plain and simple – how prepared are you to withstand a little period of insecurity? It’s a good number to know and something to keep an eye on in order to preserve your spending power and look good at the bank.

How to Calculate

Calculating the defensive interval ratio is easy; simple use the following formula to plug in your own numbers:

Defensive assets (anything you can sell or access when in need including money owed to you by others)/Projected daily operational expenditures – noncash charges

For example, let’s assume you have cash on hand of $50,000, access to bonds in $25,000 and expect to receive another $25,000 from debts, deals and other income for a total of $100,000. Your daily cost of sales, operating expenses and other income requirements amount to $1,000 per day giving you a projected daily expenditure of 100 days

How to Use

Keep an eye on both your personal and business defensive interval ratio. As a rule of thumb, more is better but it is possible to have too much cash sitting on the sidelines. Financial managers and short-term creditors pay special attention to defensive interval ratios so they are of particular interest to those seeking OPM or outside funding for quick cash deals or other relatively short term transactions.

Personal – Strive for at least a 90 day defensive interval ratio up to whatever makes you happy.

Professional – Calculate independently of your personal ratio. 30 days is a solid score but anything above 180 days tends to work against you by reflecting an overly cautious investing style with money sitting on the sidelines. Put the money to work in order to demonstrate your ability to formulate solid returns and mitigate risk. If you are unable to find appropriate investment instruments due to a relatively minor sum of money, try pooling it with others or use it as collateral when approaching deeper pockets than your own. In either case, show that you know and understand the concept behind the approach.

Research – Finally, take time to perform your own research with potential partners and others prior to sealing any deal. Obtain a quick look at their position before lending money or going into a partnership with anyone. Looks can be deceiving especially when it comes to elusive ideas like short sales.

Make sure they have the staying power requires to become equitable partners rather than a burden which weighs you down in the long run.