Jack Miller Options Seminar, Reno, July 11-13th

Jack Miller's options program is one of the best out there - that is why several of us are attending. It is on in Reno and will be well worth the time. Options are a great way to build your IRA and this seminar will give you all the specifics.

Click on the link to get the details on the Jack Miller Option Seminar scheduled for July 11-13. The SJREI pricing is $330 (as opposed to $495) but you have to fax in your registration with the SJREI written on it to get the special pricing. Learn how to utilize options to maximize your profits and minimize your risk.


This is one of the more complete options classes out there and the price is right. "You will learn the nitty-gritty legal limits of what can and cannot be don't to implement the techniques and concepts taught including Pure Options, Sandwich Leases, Contract for Options, Paper Options, Business Options and more." We hope to see you there.

Susan G.Koman Foundation Fundraiser with The Norris Group

We are partnering with the Norris Group for this worthy fund raiser which is scheduled for September 11th, at the Nixon Library located in Yorba Linda in Southern CA. There is a fabulous line-up of experts that will be presenting on the real estate market, at the beautiful Nixon library over a wonderful meal.

The Norris Group underwrites this event which costs approximately $60,000 to put on! All of the money raised goes to the Susan G. Koman foundation, Orange County Affiliate. You can make a donation - any donation over $200 qualifies for a free ticket to the live event/dinner. There is a group of us planning to attend to support this worthy cause, so let us know if you would like to join us. If you would like to simply make a contributution also that would be great. Click on the link for details of this event and email us if you would like to attend.

Santa Clara Valley Update

Homes are selling briskly again in the lower end market here in Santa Clara County with prospective buyers making multiple offers. The median price of a single family home (SFH) in May was $445,000 in the county, up 5.7% from February when prices stopped dropping. The significant drop in prices has lured first time buyers into the market . This segment dominates right now, and they do not have to sell a house to buy. Additionally, they have some great incentives to make the leap including government assistance, and interest rates are still at very attractive rates. The move-up buyer is missing from the equation with little equity in a lot of cases, and difficulty qualifying for a new loan.

I spoke with someone recently whose daughter had purchased a 2 bed/2 bath condo in 2005 in South San Jose for $400,000, and her son just bought the identical unit for $180,000. Does this signal the bottom? I don't think so. CA unemployment rate was 11.5% in May - this could push additional home owners into foreclosure. The banks at some point will have to liquidate those inventories which would put downward pressure on the market and create a buying opportunity.

Here is another interesting statistic - in Silicon Valley the median price of a previously owned home fell 48% to $420,000 in January, down from a high of $805,000 in 2007. This is another reason why people are buying now. The number of pending sales in the county has nearly double to 3882 as of last week up from 2096 a year ago according to the Santa Clara County Association of Realtors.

Loan mods, short sales etc

At our Mid-Peninsula meeting we hosted a panel to address options for people who were in trouble with their homes or investment properties. The information shared was very relevant and we got a lot of great feedback on it.

Here is the contract information for the panel members.

Jeffrey B. Hare

Jeffrey B. Hare APC

jeff@jeffreyhare.com

www.jeffreyhare.com

501 Stockton Ave

San Jose, CA 95126

408-279-3555

David B. Rao

Binder & Malter, LLP

david@bindermalter.com

2775 Park Ave

Santa Clara, CA 95050

408-295-1700

fax 408-295-1531

Natalie Knowlton

Short Sale Results Team

2053 Grant Rd #133

Los Altos, CA 94024

650-900-4608

fax 866-614-9322

HR1728 Mortgage Reform and Predatory Lending Act

In my last communication I neglected to mention one important detail neither the President or Congress have approved this bill at this time. When I get close to 100 emails in one day on a new piece of legislation, I generally don't jump on the band wagon and respond impulsively, as what normally happens is that when the hype is eliminated the truth is revealed. As Attorney Jeffrey Hare commented "the sky is not falling".

Jeffrey also shared the following insights:

HR1728 (not 1787 as reported frequently by some) is a very lengthy and overstuffed piece of legislation that aims to tackle a wide range of perceived, alleged and real problems associated with mortgages, predatory lending. The National Association of Realtors has taken what appears to be a position of qualified support on this legislation, but notes that restrictions that require sellers providing seller financing – which they point out plays an important and necessary part of the financing of home purchases – to comply with the range of complex regulations is probably not in the best interests of the legislation, and has asked Congress to clarify this section.

For a short summary, click here and just spend a minute reviewing what the legislation covers.

Attorney Bill Bronchick had this to share:

This bill aims to include owner financed deals within the definition of "Truth in Lending" law. I've always instructed in my courses and seminars that you should comply with Truth in Lending, which requires just a few simple disclosures.

The bill also would, in theory, make a person who sells a home a "mortgage originator". This would require compliance with RESPA, which I've always instructed in my courses and seminars that you should comply with anyway.

Finally, the bill would require that you actually qualify your buyer. It prohibits, "lending without due regard of the mortgagor's ability to repay". Duh! Only a fool would put someone in an owner financed house deal without checking their income, debt and credit.

All in all, there's nothing to worry about here for investors, it's just a matter of compliance with some federal rules and a couple of disclosures.

Creative Financing.

I attended the Jack Miller, John Schaub, and Pete Fortunato event in San Francisco last week and it was very informative.

Just to give you a perspective John Schaub is a serious investor of forty years - during the run-up in prices from 2003-2006 he bought one house - he knew what was coming and elected not to play. Since last summer he has bought six houses and is still buying aggressively.

There are good buys for the savvy investor and creatively financing them is the way to go especially with the lack of financing available to investors. One needs to become educated, sometimes it take time, money, and energy to learn how to structure deals and do things right. With changing business cycles, changing laws, and new technologies the savvy investor stays plugged in. Bill Tan, private money investor, will share his 25 plus years of experience with us at the SJREI this month, so mark your calendar and join us for an informative, provocative perspective.