If you miss any of the previous part
PART 1
PART 2
Review, review, and review again.
CONGRATULATIONS! You may receive a letter or phone indicating that you are one of the finalists. They may be looking for more details to differentiate you from the herd, and they may also want to know what kind of a deal you are willing to make. Be prepared to negotiate or lose the contract. You may need to decide where you can cut costs in your proposal. If you did not present your lowest, best bid in the proposal, what are you waiting for, now is the time.
OK, so you didn't win the proposal, is all lost?
Not winning the proposal can be a key learning experience. Call the agency contact and ask where and what your RFP lacked. Under the Freedom of Information Act, FOIA, you are entitled to ask to see a copy of the winning proposal. Remember, practice makes perfect even though it is a difficult lesson to learn.
So, How do you write a winning Grant Proposal?
Most grant proposals don't have to be the size of a large coffee table book. In fact, the average length of a winning proposal is just ten pages. Nevertheless they must contain the "right stuff" as explain above and on the previous post.
The best grant proposals begin with a professional Cover Letter. The Cover Letter must be straightforward, to the point, and be written in an upbeat and exciting format. Explain to the funder your project, in a paragraph or two at the most. This letter must trigger your reader's enthusiasm. Make them want to open the proposal and continue reading, just as I have done to you, for you to read this post.
Next is the Cover Sheet. This must be written as a concise statement covering the basic points of the proposal. The Cover Sheet states the name, address and phone number of the person or organization making the request, the organizational structure, and the name of the contact person. It also includes the amount of the request and description of the project. An important note here is not to ever exceed the amount requested with the amount the funder is offering for a project. If so make sure that you have other sources to apply for and make it clear that you do.
The Narrative section of the proposal includes the Needs Assessments, Goals and Objectives, Program Description, Evaluation Process and a discussion of Future Funding.
Wednesday, April 22, 2009
Sunday, April 19, 2009
Short Sales Approval Being delays
Many of you have being asking me why Short Sales are taking longer to close now days. We at A. B. Home Buyers have not experience this problem, due to our pipe line being so big. Many Real estate or short sale investor are complaining about long waits. Lenders tend to take their time when reviewing and approving a short sale offer. Some are certainly better than others but as the short sale arena goes into overdrive, savvy short sale investors would do well to understand what is taking place behind the delays and how to address the most common causes. After speaking with them, they all came to the same conclusion:
Delays - Why the Long Wait
1. Multiple offers. One of the main reasons for a lender to take their precious time before approving a short sale is to consider multiple offers. Homeowners are increasingly entertaining several short sale offers in an attempt to get the best deal and maximize the likelihood of sealing a deal on their own timing. Ask homeowners if they are currently entertaining other offers or plan to do so in the future. Many short sale investors require contracts stipulating they are the only current offer on the table.
2. Lack of staff. Many banks are simply short on staff and unable to keep up with growing demand. Make it easy on overwork workers in every way possible; not only will they appreciate the reduced work but it certainly helps to present your offer in the best light possible.
3. Failure of the homeowners to prove financial hardship. Keep the lines of communication open and help the homeowner provide the appropriate paperwork in a timely manner. While it might seem a bit obvious, don't expect every homeowner to have the motivation required to follow-up even on something that is likely to help their own situation. Many people simply shut-down when overwhelmed.
4. Lack of other offers. While entertaining multiple offers is more frequently the cause of delays when processing short sale offers, the lack of any other offers especially on an otherwise, "attractive" property may also result in longer approval times or outright procrastination on the part of the lender. It's not uncommon to encounter a lender that rejects a short sale offer only to receive a lower net when a property goes to auction. Depending on your personal level of chutzpah, you may opt to date an offer then return with even lower offers until the property is accepted or rejected but don't expect threats to make any appreciable difference in the responsiveness - or lack thereof - of the lender. In fact, rather than speed things up you are probably more likely to get on the last nerve of some overworked bank employee. Either way, remain analytical and don't fall in love with any one house or property...remember, it's a numbers game. Now go flip a short sales.
If you are looking to learn more about Short Sales, check this link out. Myself nor any of my companies are affiliate with this program, but I feel that it is one of the best one out there.
Individual result will vary
Delays - Why the Long Wait
1. Multiple offers. One of the main reasons for a lender to take their precious time before approving a short sale is to consider multiple offers. Homeowners are increasingly entertaining several short sale offers in an attempt to get the best deal and maximize the likelihood of sealing a deal on their own timing. Ask homeowners if they are currently entertaining other offers or plan to do so in the future. Many short sale investors require contracts stipulating they are the only current offer on the table.
2. Lack of staff. Many banks are simply short on staff and unable to keep up with growing demand. Make it easy on overwork workers in every way possible; not only will they appreciate the reduced work but it certainly helps to present your offer in the best light possible.
3. Failure of the homeowners to prove financial hardship. Keep the lines of communication open and help the homeowner provide the appropriate paperwork in a timely manner. While it might seem a bit obvious, don't expect every homeowner to have the motivation required to follow-up even on something that is likely to help their own situation. Many people simply shut-down when overwhelmed.
4. Lack of other offers. While entertaining multiple offers is more frequently the cause of delays when processing short sale offers, the lack of any other offers especially on an otherwise, "attractive" property may also result in longer approval times or outright procrastination on the part of the lender. It's not uncommon to encounter a lender that rejects a short sale offer only to receive a lower net when a property goes to auction. Depending on your personal level of chutzpah, you may opt to date an offer then return with even lower offers until the property is accepted or rejected but don't expect threats to make any appreciable difference in the responsiveness - or lack thereof - of the lender. In fact, rather than speed things up you are probably more likely to get on the last nerve of some overworked bank employee. Either way, remain analytical and don't fall in love with any one house or property...remember, it's a numbers game. Now go flip a short sales.
If you are looking to learn more about Short Sales, check this link out. Myself nor any of my companies are affiliate with this program, but I feel that it is one of the best one out there.
Individual result will vary
Thursday, April 16, 2009
How to get your share of Goverment $ Part 2
Part 1
Always make your responses specific answers.
RFPs generally do not define how an undertaking is to be accomplished, leaving that definition up to you, the applicant. your proposal must clearly identify the goal desired and illustrate in detail how you will accomplish those goals: who will do the work; what methods and procedures will be followed; what special materials and equipment will be used; how you will ensure quality outcomes; and what timeline will be met. Vague generalities, blowing smoke and other end runs around the problem will not receive any consideration at all! Therefore, specificity is a MUST!
Nontraditional solutions are not always the best.
Before proposing a nontraditional solution, make sue you have fully addressed the problem from the federal agencies' requested position. Chances are the agency wants the task accomplished its way and alternatives will be rejected on their initial review.
Experience, in this Case, is not always the strongest suite.
WHAT!!!! Shockingly, limited experience in the problem area is frequently not enough to prevent you from winning the job. Federal agencies are looking for evidence that you can do what you say you will do. This can be shown with references of completed projects. Recent hands-on experience in solving similar problems is also acceptable and rates highly. If you include graphs, charts or other material from a previous job, make sure the material is relevant and current, if not, do not include it. We got a contract in the city of Detroit just base on the solution we offer, our experience was not a factor on the bid.
Project cost must be as accurate as possible.
If you are pricing projects, explain charges in clear, ease-to-understand numbers and language. If you have pricing problems, call your agency contact and ask for guidelines in order to create a strategy that allows accurate pricing. Once you contact this government agencies keep in mind that they are very busy so when asking question go right to the point.
Register for our FREE Seminar
TO BE CONTINUE.....
Always make your responses specific answers.
RFPs generally do not define how an undertaking is to be accomplished, leaving that definition up to you, the applicant. your proposal must clearly identify the goal desired and illustrate in detail how you will accomplish those goals: who will do the work; what methods and procedures will be followed; what special materials and equipment will be used; how you will ensure quality outcomes; and what timeline will be met. Vague generalities, blowing smoke and other end runs around the problem will not receive any consideration at all! Therefore, specificity is a MUST!
Nontraditional solutions are not always the best.
Before proposing a nontraditional solution, make sue you have fully addressed the problem from the federal agencies' requested position. Chances are the agency wants the task accomplished its way and alternatives will be rejected on their initial review.
Experience, in this Case, is not always the strongest suite.
WHAT!!!! Shockingly, limited experience in the problem area is frequently not enough to prevent you from winning the job. Federal agencies are looking for evidence that you can do what you say you will do. This can be shown with references of completed projects. Recent hands-on experience in solving similar problems is also acceptable and rates highly. If you include graphs, charts or other material from a previous job, make sure the material is relevant and current, if not, do not include it. We got a contract in the city of Detroit just base on the solution we offer, our experience was not a factor on the bid.
Project cost must be as accurate as possible.
If you are pricing projects, explain charges in clear, ease-to-understand numbers and language. If you have pricing problems, call your agency contact and ask for guidelines in order to create a strategy that allows accurate pricing. Once you contact this government agencies keep in mind that they are very busy so when asking question go right to the point.
Register for our FREE Seminar
TO BE CONTINUE.....
Wednesday, April 15, 2009
Friday, April 10, 2009
Is the economy getting any better?
Banking sector improving -- over the weekend, anyway
In a glimmer of hope for the banking sector, Wells Fargo shares soared nearly 32% in early market trading on news that it had a better-than-expected profit of approximately $3 billion in the most recent quarter. Wells Fargo attributed the latest results to strong performances in its traditional banking and mortgage businesses. The news sent bank stocks higher across the board -- including Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley -- driving the Dow up over 200 points in early trading.
Economy beginning to turn?
According to the Wall Street Journal, there's a growing body of evidence that the economy is beginning to make a cyclical turn: wholesale inventories fell by the largest increment on record, and the inventory-to-sales ratio, the most direct measure of supply and demand in the economy, showed that the latter is gradually catching up with the former. Treasury prices declined, with the 10-year note sliding 16/32 to yield 2.921%, oil prices gained and gold prices fell, while the dollar strengthened against the yen and the euro.
Unemployment numbers slow, but unemployment stays high
If jobs were dollars, this would sound a lot like the national deficit, except that unfortunately the president can't just print more jobs to make up for it. The number of people filling for unemployment benefits dipped to 654,000, but continuing claims hit a record high. In the week ended April 4, a total of 654,000 people filed initial jobless claims, lower than the previous week's upwardly revised 674,000, the Labor Department reported. The 4-week moving average of people filing initial claims for unemployment benefits was 657,250, a decrease of 750 from the previous week's revised average of 658,000. A consensus estimate of economists polled by Briefing.com expected 660,000 first-time filers last week.
Trade deficit shrinking
A new government report reveals that the U.S. trade deficit shrank in February by 28.3% to its smallest level since November 1999 as imports slowed and exports grew slightly in the face of shrinking global demand. The monthly trade gap dropped to $26 billion, down more than $10 billion from the revised $36.2 billion deficit in January, and about $10 billion less than Wall Street economist polled by Reuters had forecast. The February percentage drop was the steepest since a 34.9% fall in October 1996. Overall world trade is expected to fall this year for the first time since 1982 as businesses and consumers cut back on spending in response to growing job losses and a continuing credit crisis. Imports fell across all major categories, with crude oil imports falling to $39.22 from $39.81 the prior month. Exports increased slightly across all major categories: food, feed and beverages, industrial supplies, capital goods, automotive and consumer goods.
What to do with toxic assets?
As part of its plan to sell toxic assets, the Obama administration is encouraging several large investment companies to create bailout funds, not unlike the war bonds sold to finance WW II. Well, except that one was for a noble cause and the other is for banks... The idea is to share the risk, and give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. Or lose, and there's the rub. If, as some analysts suspect, the banks' assets are worth even less than believed, the funds' investors could lose.
Berkshire Hathaway downgraded
This one disturb my mind!
Berkshire Hathaway, the legendary company owned by Warren Buffett, has lost its coveted top-level credit rating from Moody's Investors Service. Moody's downgraded Berkshire by two notches to Aa2 from Aaa, claiming that severe stock price declines and the U.S. recession have weakened National Indemnity Company -- an important Berkshire reinsurance subsidiary. Moody's says the outlook for its rating is now stable and says it has no plans to make further cuts over the next 12 to 18 months. Before we all panic, hedge fund manager Whitney Tilson said that the Moody's downgrade will have no effect on Berkshire's holdings, and only a very small potential impact on its earnings. It may face slightly higher borrowing costs, but Tilson notes that Berkshire has lots of cash and doesn't do much borrowing anyway.
Crackdown on scams
Yes you hear right SCAMS
Hard times always brings out the scammers, and this one is no exception. According to the Department of Housing and Urban Development (HUD), a multi-agency crackdown is set to target real estate scams and frauds, as well as bolster state and federal action and efforts to protect homeowners. An online survey by the FTC found 71 distinct companies running suspicious ads, and a Treasury committee found nearly 180,000 fraudulent mortgage reports. The FBI is currently investigating more than 2,100 mortgage fraud cases, up 400 percent from five years ago, according to ABC News. Among those involved in the effort are the U.S. Department of the Treasury, the U.S. Department of Justice (DOJ), the Department of Housing and Urban Development (HUD), the Federal Trade Commission (FTC), and the Attorney General of Illinois.
Uptick rule back again?
The U.S. Securities and Exchange Commission (SEC) will consider four proposals to restrict short selling - a bet that a given stock will fall. As it stands now, speculators can leap on a declining stock and drive it down further, according to many executives. At its Wednesday meeting the Securities and Exchange Commission will consider, among other ideas, the restoration of the "uptick rule," which allowed short sales only in cases where the last price was higher than the previous price. SEC Chairwoman Mary Schapiro said at the Council of Institutional Investors conference that they'll be looking at different proposals, including a so-called "bid test" and a "circuit breaker." Schapiro did not provide details on how the bid test or circuit breaker could work and did not elaborate on the fourth proposal.
The Puma NO not the Shoes
Will urban streets soon be clogged with two wheeled electric automobiles that look more like partially assembled wheelchairs than cars? They will if General Motors (GM) gets its wish. GM is teaming with Segway Inc., maker of the upright, self-balancing scooters to build the PUMA, an acronym for Personal Urban Mobility and Accessibility. The machine, which GM says it aims to develop by 2012, runs on batteries, has a range of about 35 miles between charges, and uses wireless technology to avoid traffic backups and navigate cities. GM didn't say how much the machines would cost, but research chief Larry Burns said owners would spend one-third to one-fourth of the cost of a traditional vehicle. Well, we all said we wanted change, right?
Thursday, April 9, 2009
How to get your share of Goverment $-Part 1
OK this was a tough one to write, too much info, too many thoughts going thru my mind, so here is, what I think is the key point on this Subject. We are making lots of money Buying houses using Government Grants that don't have to be pay back and some are only 1% interest for 15 years, you can use them for what ever you want, but in today economic we found that it is really easy to get multiplies grant for Real Estate Investment.
Right now is the best time to apply for some of the new and very profitable Federal, State and Local Government contracts. There are also special opportunities for minority & women-owned businesses. The key is to ASK!
Thanks to President Obama and all the recent Bail Out, government spending will increase in literally thousands of areas. Changes in the way government does business opens window of opportunity for all small business owners. This is because government officials are looking for better solutions to age problems with new and innovative solutions to the new problems that have been created by both natural and man made activities.
In order to get your share of government money, there are some suggestions that must always be followed. They are:
How do you start to get your share?
The first thing you must do is get on the list to receive a Request for Proposal (RFP). Most Federal Agencies want as many bidders as they can get to apply for their programs. However, none of these agencies have a very public way to advertise. Thus, the easiest way to do receive the RFP is to contact the Small Business Administration Office in your area and find out who can help you, or stay tune for for more info.
Following instructions is very important part of the equation!
I can't stress this enough, at first we were not getting the result we wanted due to this simple rule. Almost 50 percent of first-time bidders have bids rejected because they failed to follow instructions precisely. These federal agencies usually have their own set of rules and forms to use. Always follow the prescribed format and your proposal will be guaranteed to be read and evaluated. This is no time and place to be innovative and creative. Yes, some RFPs are difficult to interpret, but you will always have the name of an agency contact that can help you comply with all application processes, also it is not a bad idea to consult with an Attorney, but make sure that he/she knows about government grants and it will be costly.
TO BE CONTINUE.......
Right now is the best time to apply for some of the new and very profitable Federal, State and Local Government contracts. There are also special opportunities for minority & women-owned businesses. The key is to ASK!
Thanks to President Obama and all the recent Bail Out, government spending will increase in literally thousands of areas. Changes in the way government does business opens window of opportunity for all small business owners. This is because government officials are looking for better solutions to age problems with new and innovative solutions to the new problems that have been created by both natural and man made activities.
In order to get your share of government money, there are some suggestions that must always be followed. They are:
How do you start to get your share?
The first thing you must do is get on the list to receive a Request for Proposal (RFP). Most Federal Agencies want as many bidders as they can get to apply for their programs. However, none of these agencies have a very public way to advertise. Thus, the easiest way to do receive the RFP is to contact the Small Business Administration Office in your area and find out who can help you, or stay tune for for more info.
Following instructions is very important part of the equation!
I can't stress this enough, at first we were not getting the result we wanted due to this simple rule. Almost 50 percent of first-time bidders have bids rejected because they failed to follow instructions precisely. These federal agencies usually have their own set of rules and forms to use. Always follow the prescribed format and your proposal will be guaranteed to be read and evaluated. This is no time and place to be innovative and creative. Yes, some RFPs are difficult to interpret, but you will always have the name of an agency contact that can help you comply with all application processes, also it is not a bad idea to consult with an Attorney, but make sure that he/she knows about government grants and it will be costly.
TO BE CONTINUE.......
Tuesday, April 7, 2009
Lost 50lbs
As some of you notice, I have lost about 50 lbs and everyone is asking me how? So here is the secret, I being seen this doctor, read below to see how it work....
Q: Doctor, I've heard that cardiovascular exercise can prolong life; is this true?
A: Your heart is only good for so many beats, and that's it... don't waste them on exercise. Everything wears out eventually. Speeding up your heart will not make you live longer; that's like saying you can extend the life of your car by driving it faster. Want to live longer? Take a nap.
Q: Should I cut down on meat and eat more fruits and vegetables?
A: You must grasp logistical efficiencies. What does a cow eat? Hay and corn. And what are these? Vegetables. So a steak is nothing more than an efficient mechanism of delivering vegetables to your system. Need grain? Eat chicken. Beef is also a good source of field grass (green leafy vegetable). And a pork chop can give you 100% of your recommended daily allowance of vegetable products.
Q: Should I reduce my alcohol intake?
A: No, not at all. Wine is made from fruit. Brandy is distilled wine, that means they take the water out of the fruity bit so you get even more of the goodness that way. Beer is also made out of grain. Bottoms up!
Q: How can I calculate my body/fat ratio?
A: Well, if you have a body and you have fat, your ratio is one to one. If you have two bodies, your ratio is two to one, etc.
Q: What are some of the advantages of participating in a regular exercise program?
A: Can't think of a single one, sorry. My philosophy is: No Pain...Good!
Q: Aren't fried foods bad for you?
A: YOU'RE NOT LISTENING!!! .... Foods are fried these days in vegetable oil. In fact, they're permeated in it. How could getting more vegetables be bad for you?
Q: Will sit-ups help prevent me from getting a little soft around the middle?
A: Definitely not! When you exercise a muscle, it gets bigger. You should only be doing sit-ups if you want a bigger stomach.
Q: Is chocolate bad for me?
A: Are you crazy? HELLO Cocoa beans! Another vegetable!!! It's the best feel-good food around!
Q: Is swimming good for your figure?
A: If swimming is good for your figure, explain whales to me.
Q: Is getting in-shape important for my lifestyle?
A: Hey! 'Round' is a shape!
Well, I hope this has cleared up any misconceptions you may have had about food and diets.
And remember:
'Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways - Chardonnay in one hand - chocolate in the other - body thoroughly used up, totally worn out and screaming 'WOO HOO, What a Ride'
AND.....
For those of you who watch what you eat, here's the final word on nutrition and health. It's a relief to know the truth after all those conflicting nutritional studies.
1. The Japanese eat very little fat
and suffer fewer heart attacks than Americans.
2. The Mexicans eat a lot of fat
and suffer fewer heart attacks than Americans.
3. The Chinese drink very little red wine
and suffer fewer heart attacks than Americans.
4. The Italians drink a lot of red wine
and suffer fewer heart attacks than Americans.
5. The Germans drink a lot of beers and eat lots of sausages and fats and suffer fewer heart attacks than Americans.
CONCLUSION
Eat and drink what you like.
Speaking English is apparently what kills you.
Q: Doctor, I've heard that cardiovascular exercise can prolong life; is this true?
A: Your heart is only good for so many beats, and that's it... don't waste them on exercise. Everything wears out eventually. Speeding up your heart will not make you live longer; that's like saying you can extend the life of your car by driving it faster. Want to live longer? Take a nap.
Q: Should I cut down on meat and eat more fruits and vegetables?
A: You must grasp logistical efficiencies. What does a cow eat? Hay and corn. And what are these? Vegetables. So a steak is nothing more than an efficient mechanism of delivering vegetables to your system. Need grain? Eat chicken. Beef is also a good source of field grass (green leafy vegetable). And a pork chop can give you 100% of your recommended daily allowance of vegetable products.
Q: Should I reduce my alcohol intake?
A: No, not at all. Wine is made from fruit. Brandy is distilled wine, that means they take the water out of the fruity bit so you get even more of the goodness that way. Beer is also made out of grain. Bottoms up!
Q: How can I calculate my body/fat ratio?
A: Well, if you have a body and you have fat, your ratio is one to one. If you have two bodies, your ratio is two to one, etc.
Q: What are some of the advantages of participating in a regular exercise program?
A: Can't think of a single one, sorry. My philosophy is: No Pain...Good!
Q: Aren't fried foods bad for you?
A: YOU'RE NOT LISTENING!!! .... Foods are fried these days in vegetable oil. In fact, they're permeated in it. How could getting more vegetables be bad for you?
Q: Will sit-ups help prevent me from getting a little soft around the middle?
A: Definitely not! When you exercise a muscle, it gets bigger. You should only be doing sit-ups if you want a bigger stomach.
Q: Is chocolate bad for me?
A: Are you crazy? HELLO Cocoa beans! Another vegetable!!! It's the best feel-good food around!
Q: Is swimming good for your figure?
A: If swimming is good for your figure, explain whales to me.
Q: Is getting in-shape important for my lifestyle?
A: Hey! 'Round' is a shape!
Well, I hope this has cleared up any misconceptions you may have had about food and diets.
And remember:
'Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways - Chardonnay in one hand - chocolate in the other - body thoroughly used up, totally worn out and screaming 'WOO HOO, What a Ride'
AND.....
For those of you who watch what you eat, here's the final word on nutrition and health. It's a relief to know the truth after all those conflicting nutritional studies.
1. The Japanese eat very little fat
and suffer fewer heart attacks than Americans.
2. The Mexicans eat a lot of fat
and suffer fewer heart attacks than Americans.
3. The Chinese drink very little red wine
and suffer fewer heart attacks than Americans.
4. The Italians drink a lot of red wine
and suffer fewer heart attacks than Americans.
5. The Germans drink a lot of beers and eat lots of sausages and fats and suffer fewer heart attacks than Americans.
CONCLUSION
Eat and drink what you like.
Speaking English is apparently what kills you.
Monday, April 6, 2009
What the heck is going on?
Mortgage refinances up
Fannie Mae said on Friday that its mortgage refinancing volume nearly doubled in March from the prior month to $77 billion. Tom Lund, executive vice president of Fannie Mae's single-family mortgage business, said "A majority of our business volume in March was in refinanced loans, and we anticipate that volumes will increase even more as millions of additional homeowners become eligible to refinance under the President's Making Home Affordable plan." Under the program, Fannie Mae can refinance loans up to 105 percent of a home's value, allowing borrowers, some of whom owe more than their home is worth, to refinance.
Treasury Department extends deadline for PPIP
The Treasury Department says it will extend the deadline by two weeks, until April 24, for private fund managers to participate in the administration's Public-Private Investment Program (PPIP), to purchase distressed assets from banks. Department officials also say fund managers will not have to satisfy all three criteria released last month to participate in the program, which provides government capital and guarantees to spur purchases of the toxic assets.
Bailout goes surreal
Ok, this is getting weird. Now several U.S. banks that have already been bailed out by the government because of toxic assets, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are thinking about buying more toxic assets -- the assets about to be sold by rivals under the Treasury's $1 trillion plan. John Mack, Morgan Stanley's chief executive, told staff his bank was considering how to become "one of the firms that can buy these assets and package them where your clients will have access to them," according to the Financial Times. Spencer Bachus, the top Republican on the House financial services committee, said it would mark "a new level of absurdity" if financial institutions were "colluding to swap assets at inflated prices using taxpayers' dollars." For some reason the banks have declined to comment.
GM
Speaking of gaming the system, GM's new CEO Fritz Henderson keeps changing his mind about bankruptcy, depending on the day of the week, or the weather, or whether he needs taxpayer money or not. Last week it was bankruptcy, this week it's not. Henderson said on CNN's State of the Union that there would be more job cuts and plant closings, but that bankruptcy was not inevitable. GM has already received $13.4 billion and requested an additional $16 billion. Says Henderson: "We are planning to get the job done. Our preference would be to do it outside of the bankruptcy process, [but] if it cannot be done outside a bankruptcy process, it will be done within it." Thanks Fritz -- good to know you have a plan.
Chrysler and Ford
Chrysler has also asked for a new round of aid. David Axelrod, a senior adviser to President Barack Obama, said, "We want these to be going concerns -- not wards of the state." Is it just me or is decorating the nursery and offering billions of dollars worth of baby food NOT the best way to encourage independence in potential wards of the state? The only bright spot in all of this is that Ford says it completed a tender offer and reduced its debt by $9.9 billion. The auto maker says an offer to purchase notes from its financing arm produced $3.4 billion in securities tendered. Ford Motor Credit will use $1.1 billion to purchase that debt. But don't start jumping up and down quite yet -- U.S. auto sales fell by 37 percent in March, the 17th month in a row of declines.
Now on to our real estate investing education section...
Big Bank Losses & the Future of Short Sales
Recently released data by the Office of the Comptroller of the Currency (OCC) reports commercial banks lost well over $3.4 billion in interest rate derivatives during the last quarter. This is an especially unsettling number when you realize this is the first time in the history of the USA that bets on interest rates have failed.
To understand the significance of this it is important to first realize the CDO or credit default swaps represent less than 8 percent of the derivatives market...with over 80 percent of the remaining portion of the derivative market represented by interest. To date, most of the banking crisis has been concerned with bad mortgage loans and even a few credit default swaps...together they comprise only a small portion of the total derivative market which represents an estimated $200 Trillion (yes, trillion!).
So, how does this relate to short sales and other investments?
In plain language...
Banks are losing money from betting on interest rates. If banks and other lenders can't make money from current business practices what is the likely outcome? Change of course. Change is likely to come in the form of higher rates, tougher lending standards and more stringent down payment or other requirements...it won't happen overnight so savvy short sale buyers will recognize the writing on the wall to take action now.
The current national (and even global) financial melt-down is likely to grow worse before getting better. Yes, the Federal Reserve was put into place to prevent a major banking crisis from wrecking havoc on the nation in a 1929 style run but keep in mind, despite the stabilizing efforts of the Fed, inherent differences also place the system at risk. For example, derivatives were all but non-existent. According to the Office of the Comptroller, the five biggest banks in America control 96 percent of the total derivatives. This means a new round of failure, bail-outs and banking crisis could hit the nation at any moment should even one of these banks be exposed to major losses. Remember, banks must "make good" on those losses but with only 10 percent or even less of the capital required to pay out a claim, banks are simply unable to do so; creating the risk of a domino like default scenario.
This is another reason banks are not lending - they are frantically attempting to hoard as much cash reserve as possible in order to hedge against the risk of a default looming in the future. Again, savvy short sale investors should recognize the ongoing threat of tighter lending standards far into the future -without government intervention (and even with it), purchasing a home for decades into the future may simply be out of reach for many Americans.
Make sure you are doing business with a solid bank. Short sales investors have two options; deal with small local banks that have strong bottom lines, didn't engage in derivatives or other risky investments and are able to work with you personally...or, work with one of the A rated big banks. To find out how your bank is rated, visit http://www.TheStreet.com or http://www.MoneyandMarket.com with publishes a list of the best and worst banks across the nation.
Today's recommendation:
http://www.shortsalesriches.com
Fannie Mae said on Friday that its mortgage refinancing volume nearly doubled in March from the prior month to $77 billion. Tom Lund, executive vice president of Fannie Mae's single-family mortgage business, said "A majority of our business volume in March was in refinanced loans, and we anticipate that volumes will increase even more as millions of additional homeowners become eligible to refinance under the President's Making Home Affordable plan." Under the program, Fannie Mae can refinance loans up to 105 percent of a home's value, allowing borrowers, some of whom owe more than their home is worth, to refinance.
Treasury Department extends deadline for PPIP
The Treasury Department says it will extend the deadline by two weeks, until April 24, for private fund managers to participate in the administration's Public-Private Investment Program (PPIP), to purchase distressed assets from banks. Department officials also say fund managers will not have to satisfy all three criteria released last month to participate in the program, which provides government capital and guarantees to spur purchases of the toxic assets.
Bailout goes surreal
Ok, this is getting weird. Now several U.S. banks that have already been bailed out by the government because of toxic assets, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are thinking about buying more toxic assets -- the assets about to be sold by rivals under the Treasury's $1 trillion plan. John Mack, Morgan Stanley's chief executive, told staff his bank was considering how to become "one of the firms that can buy these assets and package them where your clients will have access to them," according to the Financial Times. Spencer Bachus, the top Republican on the House financial services committee, said it would mark "a new level of absurdity" if financial institutions were "colluding to swap assets at inflated prices using taxpayers' dollars." For some reason the banks have declined to comment.
GM
Speaking of gaming the system, GM's new CEO Fritz Henderson keeps changing his mind about bankruptcy, depending on the day of the week, or the weather, or whether he needs taxpayer money or not. Last week it was bankruptcy, this week it's not. Henderson said on CNN's State of the Union that there would be more job cuts and plant closings, but that bankruptcy was not inevitable. GM has already received $13.4 billion and requested an additional $16 billion. Says Henderson: "We are planning to get the job done. Our preference would be to do it outside of the bankruptcy process, [but] if it cannot be done outside a bankruptcy process, it will be done within it." Thanks Fritz -- good to know you have a plan.
Chrysler and Ford
Chrysler has also asked for a new round of aid. David Axelrod, a senior adviser to President Barack Obama, said, "We want these to be going concerns -- not wards of the state." Is it just me or is decorating the nursery and offering billions of dollars worth of baby food NOT the best way to encourage independence in potential wards of the state? The only bright spot in all of this is that Ford says it completed a tender offer and reduced its debt by $9.9 billion. The auto maker says an offer to purchase notes from its financing arm produced $3.4 billion in securities tendered. Ford Motor Credit will use $1.1 billion to purchase that debt. But don't start jumping up and down quite yet -- U.S. auto sales fell by 37 percent in March, the 17th month in a row of declines.
Now on to our real estate investing education section...
Big Bank Losses & the Future of Short Sales
Recently released data by the Office of the Comptroller of the Currency (OCC) reports commercial banks lost well over $3.4 billion in interest rate derivatives during the last quarter. This is an especially unsettling number when you realize this is the first time in the history of the USA that bets on interest rates have failed.
To understand the significance of this it is important to first realize the CDO or credit default swaps represent less than 8 percent of the derivatives market...with over 80 percent of the remaining portion of the derivative market represented by interest. To date, most of the banking crisis has been concerned with bad mortgage loans and even a few credit default swaps...together they comprise only a small portion of the total derivative market which represents an estimated $200 Trillion (yes, trillion!).
So, how does this relate to short sales and other investments?
In plain language...
Banks are losing money from betting on interest rates. If banks and other lenders can't make money from current business practices what is the likely outcome? Change of course. Change is likely to come in the form of higher rates, tougher lending standards and more stringent down payment or other requirements...it won't happen overnight so savvy short sale buyers will recognize the writing on the wall to take action now.
The current national (and even global) financial melt-down is likely to grow worse before getting better. Yes, the Federal Reserve was put into place to prevent a major banking crisis from wrecking havoc on the nation in a 1929 style run but keep in mind, despite the stabilizing efforts of the Fed, inherent differences also place the system at risk. For example, derivatives were all but non-existent. According to the Office of the Comptroller, the five biggest banks in America control 96 percent of the total derivatives. This means a new round of failure, bail-outs and banking crisis could hit the nation at any moment should even one of these banks be exposed to major losses. Remember, banks must "make good" on those losses but with only 10 percent or even less of the capital required to pay out a claim, banks are simply unable to do so; creating the risk of a domino like default scenario.
This is another reason banks are not lending - they are frantically attempting to hoard as much cash reserve as possible in order to hedge against the risk of a default looming in the future. Again, savvy short sale investors should recognize the ongoing threat of tighter lending standards far into the future -without government intervention (and even with it), purchasing a home for decades into the future may simply be out of reach for many Americans.
Make sure you are doing business with a solid bank. Short sales investors have two options; deal with small local banks that have strong bottom lines, didn't engage in derivatives or other risky investments and are able to work with you personally...or, work with one of the A rated big banks. To find out how your bank is rated, visit http://www.TheStreet.com or http://www.MoneyandMarket.com with publishes a list of the best and worst banks across the nation.
Today's recommendation:
http://www.shortsalesriches.com
Thursday, April 2, 2009
Housing bust hits Manhattan
Gotham 's prices are off slightly but sales volume has plunged.
Is finally here, as an investor I have been waiting on this. I found this article on cnn.com and wanted to share it and find out what do you all think?
By Les Christie, CNNMoney.com staff writer
The big hit was seen in sales volume, which plummeted 48% in the first quarter of 2009 compared to the previous quarter and year, according to data compiled by Jonathan Miller, of appraiser Miller Samuel, for Prudential Douglas Elliman.
The primary reason given was the gap in expectations between house hunters and sellers. "That's really showing the huge ocean that separates them," he said. "Many sellers left their prices too high for too long. We had a lot of long negotiations that ultimately led nowhere."
Lately, he added, sellers have capitulated but buyers have not: "Now our problem is that buyers have gotten too aggressive. Their offers are unrealistic and that can be a turnoff for sellers."
Meanwhile, the median sales price of all condo and co-op apartments sold rose 6%, to $907,500, in the first quarter of 2009 compared to the first quarter of 2008, according to
During the boom years,
The Corcoran Group was the only broker that reported falling prices, noting that the median sales price of apartments tumbled 2%, to $925,000.
Where prices are dropping is in the co-op market, which saw a 13% decline in median sales price in the first quarter compared to the last quarter of 2008, according to the Elliman report. Miller believes this is more reflective of the "real market" because co-ops sales are almost always existing homes, whereas most new home sales in
And, in fact, it was sales of new condos that skewed overall market prices higher. The median condo price rose 9.6%. The average size of apartments in these developments was nearly 1,700 square feet, 40% larger than last year. That, combined with a record market share of 43%, pushed up overall average prices.
The price per square foot, however, declined by 2.3% for all apartments to $1,289, compared with a year ago, according to Elliman. Corcoran reported it dropped 6% to $1,158.
Tipping point
"The tipping point was in September and was largely triggered by the bankruptcy of Lehman Bros. and bailouts of AIG, Fannie Mae and Freddie Mac," said Miller. "This marked a sharp contraction of credit, greatly restricting demand as participants had more difficulty obtaining financing.
"Plus," he added, "unemployment related to credit markets affects
Not only were there many layoffs on Wall Street, there was also a substantial reduction in bonus money paid by investment banks, down 44% from 2007.
Wall Street, even after it recovers, will likely to never be quite the same, which could lead to a permanent restructuring in high-end housing.
"Already," said Greg Heym, chief economist for both Halstead and Brown Harris Stevens, "there's been a decline at the highest end of the market, $10 million and above, a big drop in sales."
Big, indeed, with 87% fewer closings than during the first quarter of 2008.
The
"There are a lot of buyers [in that range] who had been priced out of the market and who are making sure they get in this time," she said.
As an example, she told the story of a woman in her mid-40s who previously had not looked into purchasing anything bigger than a studio; it was all she could afford.
"Now," said Ramirez, "she bought a one bedroom and she's absolutely delighted."
The lower prices are giving aspiring New Yorkers reason to hope, according to Corcoran Group's Liebman.
"The silver lining is that people can move to
First Published: April 2, 2009: 3:40 AM ET
I think is time to go out there and acquire as many deals as possible and take advantage of a market which will not be down too long, once the financial industries get back on their feet and all the greedy people on Wall St start spending money again, you should have a good inventory to flip. My suggestion is to concentrate on Luxury town home-condo. I personally will stay away from co-op.
Ok now go out there and buy some houses.
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