Roddy.com is the market leader in supporting investors & real estate professionals in Texas real estate. We are the oldest Read more →
Roddy.com is the market leader in supporting investors & real estate professionals in Texas real estate. We are the oldest Read more →
Foreclosure real estate investor John Barr gives a glowing testimony of the training received from Roddy Real Estate Investing Academy Read more →
George Roddy Jr., with Roddy Real Estate Investing Academy thinks it is important that you understand what type of investor Read more →
It is important for Texas real estate investors to understand the do’s and don’t of seller financing in Texas. Come Read more →
Here is a recent student that I had lunch with when he came in town last month preparing to attend Read more →
I sat down with Mark Bloom, CEO of Net Worth Realty and picked his brain on how his firm assist, Read more →
I am interviewing the owners of OneProp Management Group this Friday (Sept 9) at their office and I wanted to know what engaging question you want answers to from these guys. They manage several thousand units in the Dallas / Fort Worth area and I thought it would you guys could learn a thing or two from them.
Please ask any question about:
Finding the right kind of rental property
How do you rehab a rental (what type of flooring, paint, landscape, etc)
What tips and tricks on locating quality tenants
What special provisions go into a residential lease
What are the biggest mistakes they see investors make
What are the most costly repairs that could have been avoided
How do they handle late payments and eviction
Please ask your questions in the comments section at the bottom:
George Roddy, Jr.
Roddy Real Estate Investing Academy
P.S – Again, I want to know what questions you have about buying, repairing, finding tenants and managing these properties.
Ask any question below in the comments section.
By Tami Luhby August 31, 2011
NEW YORK (CNNMoney) — If the Obama administration really wants to save the housing market, it should speed up the foreclosure process — not prolong the inevitable, experts say.
Four years into the housing crisis, the real estate market is still teetering on the edge. The Obama administration has tried one program after another to stem the tide of foreclosures with limited success. And it is continuing to look for ways “to ease the burden on struggling homeowners,” though no new initiative is imminent, the White House said this week.
But some housing experts argue that the administration should go in a different direction than it has in the past. Instead, they say it’s time to focus on pushing many of those delinquent borrowers through the foreclosure process and putting foreclosed properties back into use.
While some of the 2.2 million loans in foreclosure can still be saved, many are too far gone, they say. Some 37% have not made a payment in more than two years, while another 34% have not made a payment in 12 to 23 months, according to Lender Processing Services.
“Loans enter into foreclosure, but never come out,” said Thomas Lawler, founder of Lawler Economic & Housing Consulting. “If this keeps going on, you have a continual overhang that never goes away.”
Delaying foreclosure increases the percentage of homeowners who’ll likely never catch up, Lawler said. In 2009, only 6% of delinquent borrowers were more than two years behind. And it means vacant properties still in limbo could fall even further into disrepair, hurting the value of the surrounding housing market.
Lawler is not the first to warn about the consequences of slowing the foreclosure process. Since the housing crisis began, several experts cautioned that foreclosure prevention efforts may only prolong the pain.
Accelerating foreclosures is tricky, however, especially since it is largely the purview of the states. But the administration could work with state officials to speed the process, especially on vacant homes, he said.
The push would come at a time when many mortgage servicers have slowed foreclosure efforts as they resolve shoddy paperwork practices. Foreclosure filings in July dropped to their lowest level since November 2007, due to processing delays and foreclosure prevention measures, according to RealtyTrac.
Getting rid of the glut
Another key to helping the housing market is facilitating the resale of homes that have already been foreclosed upon, experts said. This glut of vacant properties will continue to weigh on home values until they are sold.
“They can’t be a glacier hanging over the market with everyone waiting for it to fall,” said Jim Gaines, research economist at The Real Estate Center at Texas A&M University. “Those properties have to clear the market.”
A first step could be to sell off the foreclosed properties owned by Fannie Mae, Freddie Mac and the Federal Housing Administration. Collectively, they own 248,000 homes, about 31% of the foreclosure inventory.
The administration and the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, are already looking for ways to unload these foreclosed homes. Earlier this month, they put out a request for ideas, including possible bulk sales of inventory. Also, they are interested in turning many of these properties into affordable rentals, which are sorely lacking in many communities. Experts interviewed agree this would be a good move for the market.
To entice investors to purchase these homes, as well as other foreclosed properties owned by banks, the administration could advocate for changes to the tax code, Gaines said. For instance, more favorable capital gains or depreciation rules could attract buyers.
The case against foreclosure
Of course, not everyone agrees that pushing people through the foreclosure process is the best solution to the housing crisis.
David Min, associate director for financial markets policy at the Center for American Progress, argues that there are many homeowners who can be saved if their payments can be adjusted to affordable levels or if some of their principal is forgiven. This particularly applies to those who are only a few months behind.
Foreclosure is very costly for servicers, homeowners and neighborhoods, he said.
“There are a lot of other options that make more sense” than foreclosure, Min said. “It’s just so destructive to value. We should be pulling every lever we can.”
Mediation, for instance, could help some homeowners avoid foreclosure, he said. Some 23 states and the District of Columbia currently have programs that require mortgage servicers to sit down with borrowers and discuss the homeowners’ options, though many began only in the last year. More than 70% of mediations end in a settlement, often restructuring the mortgage to a sustainable level, according to the center.
Helping those still current with their payments can also give the housing market — and the economy — a lift, albeit a somewhat marginal one, experts said.
For instance, the administration could revamp its refinancing program aimed at allowing underwater homeowners to take advantage of today’s lower interest rates. Improvements could include reducing some of the upfront costs and underwriting requirements.
Lowering borrowers’ monthly payments would give people more money to spend. And, for those on the edge, it could make it more likely that they will stay in their homes.
“It would be helpful to some borrowers with high rates,” Lawler said.
George Roddy with Roddy.com comments
I think that what the government needs to do is take a very proactive approach. The sooner we get these non-performing notes into foreclosure the faster this economy will recover. I have said this from day one, if the government would agree to a 10-15% tax incentive for investors, you would have investor who come in, buy these properties put a quality tenant in them and turn some of these neighborhoods around that are plighted with vacant homes.
George Roddy, Jr.
Owner financing is a great tool, which, when used properly, offers benefits to both buyer and seller. Like all tools it can also cause damage to buyers and sellers. The purpose of this article is to provide an introduction to the risks and rewards of seller financing plus some ideas for creative ways to make it successful for both parties.
When home sales slow down seller financing as a sales tool always becomes more popular. Problems occur when desperate sellers, driven by the need to sell immediately, get talked into providing owner financing without really understanding the risks or the process. They frequently bypasses some of the steps in the normal home sales process, especially those which protect the seller. When problems arise, and they ALWAYS do, naive sellers don’t know what to do and may not have the paperwork needed to protect their position.
I know people who can hardly wait for the downturn to really take hold because they know the boom in owner financing will create opportunities for them to profit. You do NOT want to find yourself unprepared for dealing with them! If you educate yourself about owner financing before you negotiate the deal and create the documents, you will be in a position of strength. When real money is on the table, professional advice should always be obtained.
Seller financing doesn’t have to be a win/loose situation. Your hourly pay rate for taking the time to educate yourself about owner financing ahead of time will be very high.
If you would like more information on how to CONSTRUCT a owner finance transaction property for yourself or your seller (for Realtors), then call our office and we can let you know what is involved. Roddy is collaborating Scott Horne (Texas attorney) on providing you guys with a all-encompassing Owner Finance blueprint that will answer all your questions.
Owner Financing is going to be the vehicle of choice for many sellers and Realtors for the next 5 years. Get educated on the subject.
George Roddy, Jr.
Owner/CEO of Roddy Real Estate Investing Academy
article provided by owner-financing.com
provided by Inman News
Real estate investors are likely to be three times more active than other types of home-buyers in their local markets within the next two years, according to a national survey by Realtor.com operator Move Inc.
Market research firm GfK Custom Research North America conducted the survey on behalf of Move from April 11-15, 2011. The survey included telephone interviews of 1,200 U.S. adults, of which about 200 were identified as real estate investors. Data was weighted by age, sex, education, race and geographic region.
A third of real estate investors are planning to buy in the next 24 months, compared to 8.6% of typical home-buyers — those planning to purchase a primary residence, vacation home or retirement property. Another 9.1% of typical home-buyers, and 28% of investors, plan to purchase between two and five years from now.
Among the investors, half plan to hold their properties for five or more years while 11% expect to sell within a year of purchase, according to the survey.
Some 56.5% of investors said the repair and maintenance of their property has not been difficult, and 42% plan to spend their own time and energy for that upkeep going forward.
Among the rest, 29.5% said they would hire a contractor for repairs and 28% said they would purchase move-in-ready properties. About 65.7% don’t expect repair costs to surpass 20% of the property’s purchase price, the survey said.
“This data suggests today’s climate is hot for investing and is attracting a lot of new people that don’t fit the stereotypical deal-driven flippers who buy and sell properties quickly,” said Steve Berkowitz, Move CEO, in a statement.
“They’re mostly entrepreneurial individuals who will make vital contributions to local communities by investing their own money and sweat equity to improve and maintain properties. These personal sacrifices made over the long run will help improve housing stocks, home values, property tax bases, and thousands of local communities.”
More than half of investors, 53.5%, expect home prices to remain the same in the next six to 12 months. Of the rest, 23% expect prices to fall. About 69% expect it would be easier to find properties in the next six months, though 43.5% expect it would be harder to find bargains.
Some 41.5% of investors expect it would be easier to sell their properties in the next six months, the survey said.
Only 18.5% of investors said they will engage in an all-cash purchase, while 75.5% plan to combine cash and credit to purchase a property. More than half (59.5%) plan to put down cash but finance more than half of the purchase.
Sixteen percent plan to put down more than 50% in cash and finance the rest. Of the cash-only buyers, eight out of 10 expect discounts from sellers.
About 65.5% of investor respondents expect the financing difficulties first-time buyers are having will make it easier for them to compete for properties, according to the survey.
“The fact that most real estate investors plan on combing cash and credit for their purchases goes against the conventional wisdom that investor transactions today are mostly cash-only sales,” Berkowitz said.
“This suggests they’re seeing tremendous or once-in-a-lifetime opportunities and may be tapping into credit or taking out second trusts on existing properties. The data also shows they’re expecting high returns to match the level of investment they’re making in an arena that is new to many investors.”
Most, 59%, of investors said they were new to investing; only 36.5% had experience with more than one property transaction. Nearly half (48%) said they expected a profit of 20% or more from their property investments, equal to a 4% annual rate of return over five years, the survey said. Another 40% expected a profit of 10%.
If you have any questions, please contact George Roddy, Jr. at www.Roddy.com. For over 40 years, the Roddy family has been helping investors make profitable real estate investing decisions.
from the San Antonio Business Journal – by Tricia Lynn Silva
A total of 1,143 foreclosure notices were filed in the Bexar County Courthouse for the upcoming July auction — down 27 percent from the 1,561 postings filed for the July 2010 auction, according to the latest analysis by Addison, Texas-based Foreclosure Listing Service (FLS).
The July report marked “the fourth month in a row that monthly posting levels have been lower than for the same month one year ago,” observes George Roddy Sr., president of FLS.
“While I am not ready to say the foreclosure market has rebounded, I am certainly encouraged,” continues Roddy. “Frankly, if this year-over-year decline continues for two more months, reaching six consecutive months, then we may be able to see the other side of this foreclosure crisis.”
Another bit of positive news — July marked the third consecutive month that postings have fallen below the 1,200-per-month threshold, Roddy says.
“So, on two counts, July’s 1,143 postings brought welcomed news,” he adds.
George Roddy Jr.’s comments with Roddy.com: As we have mentioned for several months, the worst is behind us, but the reduction of Texas foreclosures will slow down and remain the same for the next 12-18 months before lowering again.
George Roddy, Jr.
June 20th, 2011
Texas real estate investors and Realtors,
OK, we admit, House Bill 8 is a bit tricky. We have read it, have you? One of the problems with real estate investors is we get all excited about legislation every two years, and then we realize there will be a solution and we calm down. A lot of you are wondering how this type of bill could sneak up on us. Here is the surprise, it didn’t!
Real Estate Investors do not have a lobbying presence in Austin, and have very little of a presence in Washington, DC. The fact of the matter is, we are all too cheap! We are not willing to spend the money it takes to protect our livelihood.
Over the past ten years, we have seen numerous organizations and groups start up, and attempt to “protect the industry”. They have all faltered because the industry would not support them. Until there is a central organization in Texas to protect us, this issue will pop up like wildfire every two years.
We are having a webinar on Monday that will have George Roddy, Jr, Bryan Dunklin and Tim Herriage, at 6:00 PM CST to explain HB 8, the implications, and how you need to prepare. Do yourself a favor, and read the bill before the webinar.
Here is the link to read the bill: http://e-lobbyist.com/gaits/text/298034
Here is the link to register for the webinar: https://www3.gotomeeting.com/register/446744670
Stay informed to stay out of court!
George Roddy, Jr. – Real estate investor, mentor, consultant.
Reporter shows how problems with mortgage documents are prompting lawsuits and could slow down the weak housing market
If there was a question about whether we’re headed for a second housing shock, that was settled last week with news that home prices have fallen a sixth consecutive month. Values are nearly back to levels of the Great Recession. One thing weighing on the economy is the huge number of foreclosed houses.
Many are stuck on the market for a reason you wouldn’t expect: banks can’t find the ownership documents.
By STEVE BROWN
Real Estate Editor
North Texas home foreclosure respite is best in a decade
The home foreclosure deluge is definitely slowing in North Texas.
Foreclosure filings in the Dallas-Fort Worth area were down 16 percent for April from a year earlier, according to Addison-based Foreclosure Listing Service.
And so far in 2011, foreclosure postings for the year are 4 percent lower than in the same period in 2010. It’s the first such decline in more than a decade for the D-FW market.
Do you want to learn about how to wholesale real estate in Texas. Attend our workshop this Saturday in Addison. Read more →
By Sandra Baker
Foreclosures up 39%
That’s because commercial foreclosures jumped 39 percent in Dallas-Fort Worth in 2010, with 3,357 postings compared with 2,424 in 2009. Of those, 3 out of every 4 properties were repossessed by the lenders, according to Foreclosure Listing Service, an Addison-based real estate research firm.
The amount of REO on banks’ books has skyrocketed since the early days of the recession. Among all U.S. banks, REO jumped from $13.2 billion at the end of 2007 to $53.3 billion as of Sept. 31, 2010, according to Federal Deposit Insurance Corp. data. Texas banks showed a similar increase, going from $372 million in REO to $1.84 billion in the same period.
Last week, John Paulson the multi-billionaire hedge fund operator who bet against sub-prime mortgages and made billions addressed a standing room only crowd at New York’s University Club recently. He thinks the run up in bonds is over and told the crowd “…this is the best time in 50 years to buy homes…your debt and interest payments get locked in at record lows, while the price of your home will rise.” “If you don’t own a home buy one…if you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”
Now I’m not a billionaire, but I couldn’t agree more Mr. Paulson. There’s two ways to take advantage of this market and opportunity,but you need to ask yourself what type of investor are you: Active or Passive?
Have you see the public storage auctions shows on A&E and SpikeTV? Basically it show people attending public storage and bidding on contents from people who are delinquent on their rental agreements. Here is a recent article on the subject and if you have an interest in learning the process from a local guys who has been going to these auctions for the past 3 years here in the Dallas area, then you might want to attend our upcoming workshop on the subject.
Here is the link for the workshop that is on February 12th: Attend the Texas Self Storage Auction workshop.
Here is the recent article in the Star Telegram:
Tim and George discuss what you will learn and get when you attend our February 5th Advanced Wholesaling course. It Read more →
Written by: Dean Graziosi with contributions by George Roddy, Jr.
Texas has done surprisingly well, enduring the burst of the housing bubble. Texas has had a medium rise in foreclosures as compared to the rest of the large states in the country. Between the years of 2006 to 2010, Texas foreclosures have risen 67%. At the end of the first quarter of 2010, Texas had survived 204,464 foreclosure starts. This was quite a feat, just of itself.
Over the same period of time, the state only sold 67,669 of its foreclosed homes, leaving Texas with a inventory of just under 65,000 foreclosed homes. The annual loss per home in Texas, was recorded by the state, as relatively small $3,030. In the end, Texas residential real estate compiled a total loss of $20 billion. As of the last quarter of 2010, Texas is embarrassed by its total of 337,620 past due mortgages. The number of private homes in nearby foreclosure in Nevada, are 6,596,254, an outrageously high number for such a low loss per home.