Three waves in the next Real Estate market shift

The next Real Estate market shift is Imminent.

What will this market shift look like?

The next real estate market shift in the residential sector will come in three different waves, so PREPARE yourself now.

The first wave will be people losing their houses after their forbearance has ended through the beginning of the foreclosure process.

With homeowners losing their jobs or being furloughed, their income has been reduced or eliminated because of the Covid19 pandemic.

The second wave will be a huge increase in the number of foreclosures being called out on the courthouse steps of each county in America.  These “call outs” are religiously done on the first Tuesday of each month.

The third wave will be vacant homes all throughout the country.  These homes have now been foreclosed upon and now sit empty.  Drive through any neighborhood USA and you will see home after beautiful home just sitting empty.  This third wave will be where many folks will finally try to “catch up” and at this point, it will already be almost too late.

What can we do now to prepare for these imminent waves?

Wave 1 of 3

Wave one will be people desperately trying to stop the foreclosure of their property. Initially there will be noticeable signage all over town saying “I stop foreclosures”. These organizations (or investors) can and do prevent and stop foreclosures through a process called “Subject to”.

Let’s explain how it works in a little more detail:

The homeowner falls behind with his mortgage and cannot catch up and the homeowner starts receiving strongly written letters indicating foreclosure is imminent.  These organizations then catch the arrearage payments for the homeowner and take possession of the home through a Quit Claim Deed.  Many times the investor may allow the homeowner to remain in the property and assist with making improvements on the property during that time.

Once the improvements are completed, the investor will usually rent the property out. This prevents the foreclosure on the home and maintains the homeowners mortgage payment history from negative impact that a foreclosure would cause.

Wave 2 of 3

The second wave is what is called the actual foreclosure process.   For example, in the state of Georgia from start to finish is approximately eight months.  Basically, from the time that the first mortgage payment is missed to the property being foreclosed on the courthouse steps is a very long and arduous eight months. The attorney that processes the (foreclosure) closing on the property represents the mortgage company that has been defaulted upon. It is normally a sixteen (16) step process to go through all the way through to the courthouse steps. There are two possible outcomes if the homeowner has not filed for bankruptcy during the foreclosure process or caught up the arrears mortgage payments prior to the foreclosure. If the homeowner has not done one of those two things then the property will be “called out” on the county courthouse steps that next first Tuesday of the month.

The “called out” process will end in one of two ways.  Either the property is purchased by the highest bidder on the courthouse steps or nobody bids high enough to satisfy the mortgage company and the mortgage company keeps it, which takes us to the third wave.

Wave 3 of 3

What happens if the property is not or does not change hands at the foreclosure process on the courthouse steps?  If the property is not sold on the courthouse steps then the mortgage company or lender keeps the property and puts it on the market for sale. This is what the general public typically sees or talks about or remembers when they think of the foreclosure crisis. Houses all over town in every subdivision with for sale signs that are vacant (and most of the time in disrepair) and end up selling below the values of typical houses in that subdivision which lowers values and equity for homeowners within that same subdivision.

If you’re an investor in residential real estate you can take advantage in these investments in either of the three waves mentioned:

Obtaining property through Wave 1:

After catching up the arearage you then obtain ownership through a Quit Claim Deed.  This is typically called the “subject to” process.

Obtaining property through Wave 2:

When the mortgage company or lender presents the property at the courthouse steps, which is typically called the “call out”, you bring either cashiers checks or cash.  You then obtain ownership through a Quit Claim Deed.

Obtaining property through Wave 3:

Obviously, the final way to obtain the ownership is when the foreclosure has actually occured and you can then buy the property directly from an REO (Real Estate Owned) agent.  This is the listing agent that represents the mortgage company or lender.

 

These three ways are exactly how investors made a lot of money during the last foreclosure crisis. Obviously, we are hopeful that we could have sustained the booming real estate market that we have all experienced prior to Covid19, however it doesn’t look good at this point.

Either prepare yourself for these three waves or depend on our expertise to get you through it.

Either as an investor or a current homeowner.  Being educated in the forefront of a crisis is the key to getting through it successfully.

Reggie Moon

Broker of Eclipse USA Realty

404-Eclipse

Why Eclipse Financial Services

Eclipse Financial Services

Hi, my name is Reggie Moon.  My wife Sindy and I own a Real Estate Company on the Southside of Atlanta, Georgia.  Three years ago we added financial services to what we do for a very simple reason. Two out of one hundred people are going to buy a house this year, two! Out of those same one hundred people there are eighty five of them that are in for the biggest financial train wreck that has been seen for generations. So if you are in the business of helping people like we are, would it be better to JUST change folks address or change their financial trajectory?  I go with the latter.

Then who are going align with to help folks?    An entrepreneur that has done it maybe NEVER or one that has built not just one but two multi-billion-dollar market-cap financial services companies. We aligned with Hubert Humphrey with Hegemon Group International.    He originally built Primerica Financial Services and World Financial Group.  So if you are going to align with someone then why not go with someone who has already successfully done it.

If you do more than just change a family’s address then give me a call to discuss.  Reggie Moon, Eclipse USA Realty and Eclipse Financial Services.

Call or click 404-Eclipse(325-4773) www.404Eclipse.com

 

 

 

Budgeting Like a Boss

When it comes to creating your own monthly budget, sometimes planning is easier than the practice. Keeping track of finances can be tricky, but, with a few guidelines and time, you can take charge of your bank account once and for all.

Adopt a weekly allowance
Parents offer their children an allowance to teach them about saving money, and the same principles can be applied to your own spending as an adult. Set aside a specific amount for treats and other nonessential expenditures, and vow that once the money is gone, extras can wait until next week.Avoid eating your meals out

Planning out your meals for the week and grocery shopping ahead of time may seem like a pain, but it can help you save money in the long run. Eating out at restaurants and fast food places adds up significantly over time. Just remember to be cautious at the grocery store or warehouse store to avoid temptation buys.Consider saving to be a payment to yourself

Adding to your savings account after each paycheck is just as important as paying any other bill, so treat it as such. Choose a set amount to put away from each paycheck you receive and, before you know it, the number in your savings account will be something you can be proud of.

Save all of your receipts

Keeping receipts is a great way to see your spending in action. Sometimes it’s difficult to remember how much a cup of coffee a day or a take-out meal each week adds up by the end of the month, but putting your receipts in a secure spot and adding up the amounts can help prevent you from overspending.

Master Your Money or It Will Master You!

People make several mistakes when saving and investing for retirement, and one of the biggest ones is not getting started because they think they need a large sum of money to begin, says Tony Robbins, 54, an inspirational speaker and best-selling author.

 

Some folks think investing and personal finance are so complex that they “never take the time to figure it out,” he says.  His goal with the new book is to “help the average person to cut through all the complexity and all the mythology that is sold to us about how you really can’t manage your own finances, and show them that the best people on earth have given them the guideposts and the steps to go from wherever they are financially to where they truly want to be.”

But his advice isn’t guaranteed to make you money. Even professional investors took different paths to their fortunes.

 

After researching the new book, Robbins developed what he calls the seven steps to financial freedom. Those are:

 

Step 1. Make the decision to become an investor, not a consumer. “You don’t want to own an Apple phone, you want to own Apple,” he says.

You have to commit a certain percentage of your income to savings for your financial freedom. Whatever that number is — 10%, 15% — stick to it in good times and bad. Have it taken automatically from your paycheck and put directly into a retirement or savings account.

 

Step 2. Become an insider on investing. Know the rules of the game. Understand mutual funds and learn what mutual funds beat the market or their benchmark over any 10-year period. Look into the fees you are paying on mutual funds and how that affects your financial future.

He says people also don’t read the fine print on their investments so they don’t realize what fees they are paying. Just like there is compounding growth, there are compounding costs, he says.

If you are only paying 1% in fees, you will probably end up with a lot more in your final nest egg than if you are paying 3% in fees, he says.

He points out that if you had a $100,000 investment and were lucky enough to get 7% annually, paying 1% in fees, you’d have about $574,000 after 30 years. If you paid 3% in fees, you’d only have about $324,000.

“What you don’t know will hurt you in the financial world. But once you know these things, you’ll be able to take advantage of the system instead of having the system take advantage of you.”

 

Step 3. Make the game winnable. “Most people have a number that’s so big that they never begin the journey,” Robbins says. Figure out how much money you need for financial security and financial independence. Calculate this and come up with a plan. Look for places you can save more.

 

Step 4. Evaluate your asset allocation. “You have to create a bucket list. You have to learn where to put your money to keep it safe and where to put your money to grow it with some risk,” he says. Put your money in different types of investments, such as stocks, bonds, commodities or real estate. Diversify your investments.

 

Step 5. Create a lifetime income plan. Make sure you won’t run out of income for as long as you live. “Income is all that matters. Assets won’t buy your food. They won’t let you travel. You have to focus on income. The investment community wants you to think about keeping your money in assets.”

 

Step 6. Invest like the .001%. “That means learn from the very best on earth (Schwab, Icahn, Bogle, Dalio, Forbes and others he interviewed for the book), and what you learn from them apply and you’ll achieve financial security faster than you will any other way.”

 

Step 7. Just do it, enjoy it and share it. Make a commitment to be wealthy now, not in the future. “Start where you are, and you’ll begin to find out that there’s more than enough.”

Robbins advises people to educate themselves in investing. It’s worth the time, and it’ll pay off. “You master money, or it masters you,” he says.

Based on article written by:

Nanci Hellmick

USA Today

Referencing book written by:

Anthony Robbins

Money: Master The Game