The Real Estate Sage at The Real Estate Investment Institute - REII

I've been in finance and real estate for almost 40 years. I've taught real estate for over 35 years, yet I've never taught this!

The most expensive current listing is a humble 56,500 sq. ft. single family home on 4,5 acres at the bargain price of $150,000.000.00!

Aaron Spelling's widow told the AP "that she let her dog Madison, a soft-coated Wheaten Terrier, help pick out the best real estate agent for the task."

The full story is at: http://www.breitbart.com/article.php?id=D9765EUG0&show_article=1

Incredible!

Bill

William J Archambault Jr

The Real Estate Investment Institute

Extra, Extra read all about it!

Housing Prices Hit New Low!

Interest Rates Lower Than 1947!

Obama Spends Trillions On Pork And Stimulus!

Obama Spends Trillions On Bail Outs!

Obama To Spend Trillions Nationalizing Health Care!

Obama Increases National Debt More In 60 Days Than All Former Presidents Combined!

Russia Wants To Replace Our Dollar!

European Union Wants To Replace Our Dollar!

China Wants To Replace Our Dollar!

Fed' Prepares To Print More Money!

Banks Have More REO's To Sell Than Ever Before!

Inflation Is Coming!

Tax Cut Just A Reduction In Withholdings!

Tax Cut To End In 2010!

Inflation May Rival Itallian WW II Levels!

Inflation May Exceed Mexico's Of The Eighties!

Stop The Presses! Today is the time to buy!

Never in our history has there ever been a more compelling time to own or buy your own home! Despite still falling home values it's hard to believe that homes can go much lower. Increasing demands for rentals by former home owners is making the supply of affordable, desirable, most importantly available rentals smaller and their cost higher. Rents will increase each year with inflation and market pressures. People have to live some where!

Today's artificially low 30 year fixed rates can not last! You may have already missed your opportunity for a fixed 4% rate. The very Governmental interference that created today's great rates insures that inflation is coming! The trillion dollars pledged to make such gifts possible guarantees inflation will soon follow!

You're buying more house for less money than in anyone's personal memory!

You're buying at a lower fixed rate than will ever, in our life times, be available again.

You're Principal and Interest payments will be fixed for the next 15 to 30 years, at which time they'll stop!

You're going to make your mortgage payments with cheaper inflated dollars!

You're going to prosper greatly compared to renters who's monthly rents are adjusted each year to compensate for inflation, ever increasing taxes, and insurance.

You're going to be a home owner before restrictions tighten any more.

You're going to be a home owner before approval of the Parties Select Committee On Home Ownership is required.

Now go buy a home. Go save a client's future.

Bill

William J Archambault Jr

The Real Estate investment Institute

Reverse mortgages to stop foreclosures!

So read the headline, unfortunately that's where it stopped.

If you're over 62 and in trouble a reverse mortgage might well be your salvation! With most past credit being irrelevant even, perhaps especially if you're in foreclosure you should consider this program.

I can hear all the nay-sayers now, but "we don't have 40% equity!" "That's not the way it's done!" "Nobody's done that!" "I never heard of such a thing!" And, on and on and on, adnauseam!

Well "There is always more than one way!"

At a time when so many claim to know more about banking than the bankers! A time with many thinking their clients should be automatically entitled to the bank's stock holders money. A time with short sales being common if not normal, the nay-sayers don't even think about settling with the bank!

What would happen if you were to offer the bank the net proceeds of a reverse mortgage in exchange for the title?

The bank might not accept it! O'my, you might be right. So what? How about settling the deficiency with an unsecured note? With no payments principal or interest on their home how much could your clients afford to settle their debt? Remember it's not necessarily an all or nothing proposition. Even if the bank won't give up everything they may well give up significant portions of their just due!

It might be wise to pay everything, this isn't a foreclosure it's a settlement! Settlements involve taxable debt relief. You might also consider an incentive offer, where the bank doesn't forgive the debt until you've paid as agreed! This type of settlement would defer debt relief until your payments were lower.

There is always more than one way! Now go do somebody some good!

Bill

William J Archambault Jr

The real Estate Investment institute

Of course you believe you play by the rules!

But, do you even know the rules? Most people don't know the rules they just know how it's always been done.

Conformity is generally much more restrictive than the rules! Conformity is the mantra, the doctrine of the mundane and mediocre. Conformity is an excuse for failure! Conformity is the reason there are fewer of us today than there were two years ago! He conformed, is just as poor of an epitaph as, he had the right of way!

Conformity for it's own sake is not a virtue!

 

Non-conformity for it's own sake is not a virtue!

At a time when Commandments are though of as suggestions, it's amassing that most of us don't see difference between bureaucratic suggestions and governmental rules!

All most everyday I read complaints about short sales! Every one of these complainers have one thing in common, they all conform, they do things the way they've always been done! They believe the banks suggestions are rules! The bank's suggestions are not rules unless you accept them as such!

If the bank can have it's rules/suggestions, why can't you or more to the point your client have their's?

If you truly represent the buyer, why play by the other sides rules? Establish the buyer's rules! If the bank wants to deal with you let them conform!

The banks accept short sales when it's in there best interest! So make it in there best interest to do things your way! The bank is not a party to the listing, but they will receive the lion's share of the cash so make compliance with your rules affects the cash to the bank.

Flash the cash! In addition to your clients preapproval letter put the entire down payment in escrow! Then add a continency that if any third party approval isn't received in writing with in two weeks of the sellers approval that all but $500.00 shall be returned to the buyer with out further action! Make them play by your rules!

Take away the cash! Add a continency that if any third party approval isn't received in writing with in two weeks of the sellers approval that the sale price shall be reduced $1,000.00 each day there after!

Get their attention!

You should probably submit your offer to whom ever the bank suggest (get a signed recite) but there is no reason not to notify the President, The Chairman of the Board, and Departmental Vice-President that you have submitted a time sensitive offer. Do so with a very short cover letter sent to each by registered mail.

Understand the bank must sell that house, your's may be the only buyer!

Understand your buyer has other choices and must be prepared to lose any given property!

Understand it's necessary to conform with your personal morals, the law, and your contractual obligations! All other rules are only suggestions!

There is always more than one way!

Now go sell a house!

Bill

William J Archambault Jr

The Real Estate Investment Institute

Note to Consumers: If your REALTOR says that's the way it's always done, find a professional!

 

Today's subject: Upside Down 3 Minutes 5 Seconds

There is nothing here except the video!

I am these days primary an author and teacher. With that in mind this is an on going series of short, three minutes or less videos on real estate subjects.

You are invited to get involved! Comment, suggest subjects, respectfully criticize, let me know what your thinking.

Bill

William J Archambault Jr

The Real estate Investment Institute

http://www.billarchambault,com

http://www.realestatesage.info/

So what is fair?

Is fair a natural state?

Is anything in nature fair?

Can anything be made fair?

Is there anything that approaches being totally fair?

Brian Brady wrote an excellent post on how consumers should dress to apply for a loan: How Should You Dress For Your Loan Application?  it's the comments on that blog that bother me!

"Professionals" responding that it's not fair! They are right! It's not fair that anyone, consumer or real estate professional should have to dress for success!

No one should have to dress to impress, so go ahead and dress for failure! It's your right!

I have several core beliefs that I think are relevant.

1. I believe we find what we seek! So if you dress for failure more often than not you'll be dressed properly!

2. You only get one chance at a first impression!

3. There is always more than one way

, but why do things the hard way?

4. God helps those that help themselves!

Forty years ago educated hippies started promoting the idea that how we dressed had no affect on learning or education. Many of these ungrateful benefactors of their parents success when into education because it was the last and easiest draft exemption. As their anti-social cult expanded they promoted there perverted demagoguery! Eventually they convinced the courts of their "wisdom" based on the shear volume of their complaints. We all know what happened, today many schools haven't even consorted with education in two or three decades. But, the teachers and students do get to dress their way! Their students more often than not fail is blamed on discrimination not a lack of education or common sense.

Making a good first impression is common sense. Learning to make a good first impression is basic education!

Would be home buyers can dress any way they want! They will get good service, but they will never know just how much harder their LO might have worked for them had they made a good impression. It's not fair! But, it's often the key to success!

With that said, three of my favorite clients including the most famous made terrible first impressions!

Carl  was covered from head to toe with caked on horse manure, Carl Hotave was possibly the most successful merchant in his community. Carl became a good friend and cleint. I still carry a gift he gave me almost every day.

I stopped at the small community of Jones, Michigan it was being rebuilt and restored to it 18^th century glory. My timing was off the town was only opened week ends. As I walked the board walk looking into the vacant building I was approached by the night watchmen dressed in what looked like Salvation Army sheik carrying a large flash light and an even larger key ring. After showing me around for about two hours I tipped him $20 and bought us both a Coke. As we talked he ask what I did, I handed him my card. He read it he ask your in commercial real estate could you help me? Ya' sure, I could drive 50 miles to consult with the watchman! But, always polite I listened and he said he had some property he need to sell, then he gave me his card. Ed Low, President and Chairman of the Board, Low Industries. Strangely, I knew what Low Industries did, they sold absorbent clay to machines shops and garages. You many know them by their more consumer oriented product, Ed was the man that brought us "Kitty Litter!" Ed kep my $20 and I sold the property.

Eric, then about 4, and I were walking the "War Bird" flight line at the Experiential Aircraft convention when we were asked to help a grease covered mechanic working on a P-47 "Jug" could I crawl inside and hold a wrench while he tightened the bolt from under the plane? Could I? How much was it going to cost me, I'll pay! After the job was finished we talked. He said I looked familiar had I ever been to Kalamazoo? As I handed him my card I ask if he worked for Kal-Airo he said sorta! He handed me his card, Pete Parrish, Chairman of the Board The Upjohn company! Never did work for Pete, but he sent me another member of the Board and family member! O' he was the majority partner in Kal-Airo.

As real estate pro's we have to look beyound first impression, but as salesmen and consumers it helps to stack the deck in our favor!

Bill

William J Archambault Jr

The Real Estate Investment Institute 

Today's subject: Appreciation 2 Minutes 26 Seconds

I am these days primary an author and teacher. With that in mind this is an on going series of short, three minutes or less videos on real estate subjects. Much of it may be simple vocabulary lessons, words as they are properly related to real estate and mortgage lending.

You are invited to get involved! Comment, suggest subjects, respectfully criticize, let me know what your thinking.

Bill

William J Archambault Jr

The Real estate Investment Institute

http://www.billarchambault,com

http://www.realestatesage.info/

I know it seems strange, but it's easer to believe than Nostradamus!

I believe Bryan Highland also wrote: "Dead Man's Cruve" for Jan and Dean that so accuraly predicted Jan's future, so there may be something to it!

Let's take a quick look between and amongest the lines of The Beach Boys 1964 bit "Shut Down"

"...Buddy gonna shut you down..."

Can any thing be clearer of what Obama's doing to everything American! America?

"...Two cool sharps standin side by side..."

Obama and Bydin?

"...injected stingray and a four-thirteen
Were revvin up our engines and it sounds real mean"

Pelosi or maybe Reed they both have barbed tails and the Democrats in Congress.

"Buddy gonna shut you down"

The only honest thing heard from Washington!

"Declinin numbers at an even rate
At the count of one we both accelerate" Decelerate!

Lord knows our numbers except the for National Debt are declining!

 

"My stingray {GM} is light the slicks are startin to spin But the four-thirteens really diggen in"
"Gotta be cool now power shift here we go"

Could this mean anything else? Anything but a power shift!

"Superstock dodge {Chrysler} is winding out in low..." "

My pressure plates burnin that machines too much..."

"...And now the four-thirteens lead is startin to shrink..."

Pray that it's so!

 Shut it off, shut it off buddy now I shut you down
Shut it off, shut it off buddy now I shut you down
Shut it off, shut it off buddy now I shut you down

Shut it off, shut it off buddy now I shut you down

Can "it" be anything other than the American way of life?

Just one man's astute humble opinion.

Bill

William J Archambault Jr

http://www.youtube.com/watch?v=Ykmekz9--t8

 

Today's subject: Alligators 2 Minutes 14 Seconds

I am these days primary an author and teacher. With that in mind this is an on going series of short, three minutes or less videos on real estate subjects. Much of it may be simple vocabulary lessons, words as they are properly related to real estate and mortgage lending.

You are invited to get involved! Comment, suggest subjects, respectfully criticize, let me know what your thinking.

Bill

William J Archambault Jr

The Real estate Investment Institute

Today's subject: APR, Annual Percentage Rate   Oops 3 minutes 3 seconds

I am these days primary an author and teacher. With that in mind this is an on going series of short, three minutes or less videos on real estate subjects. Much of it may be simple vocabulary lessons, words as they are properly related to real estate and mortgage lending.

You are invited to get involved! Comment, suggest subjects, respectfully criticize, let me know what your thinking.

Bill

William J Archambault Jr

The Real estate Investment Institute

http://www.billarchambault,com

http://www.realestatesage.info/

The unprepossessing country we have currently become we are no longer honorificabilitudinitatibus! My concern is with those vile omnisciency dweebs among us. The aged droog so anxious to demonstrate their compassion for those devastated by their own frivolous folly, that they don't care who or how many they emaciate to do so!

This is one sesquipedalian's opinion! I suggest we return to the simple basics.

"Thou shalt not steal."

"Thou shalt not covet thy neighbors' house, thou shalt not covet thy neighbour's wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor any thing that is thy neighbour's."

 "Thou shalt not bear false witness against thy neighbor's".

I believe there are the enablers  as sinful if not more so than their leaders!

I believe there is hope!

I believe there are still honorable among us!

Bill

William J Archambault Jr

 

Today's subject: Act  1 minute 38 seconds

I am these days primary an author and teacher. With that in mind this is an on going series of short, three minutes or less videos on real estate subjects. Much of it may be simple vocabulary lessons, words as they are properly related to real estate and mortgage lending.

You are invited to get involved! Comment, suggest subjects, respectfully criticize, let me know what your thinking.

Bill

William J Archambault Jr

The Real estate Investment Institute

http://www.billarchambault,com

http://www.realestatesage.info/

 

I've just read a blog where the clients are fighting over a $250.00 earnest deposit. Can you believe it $250.00!

With no mention of what the financing contingency clause said commentary is coming down strongly on both sides of the issue and several non-issues. One person even ranted illogically against mortgage brokers, it turns out that the lender was one of our largest banks.

As I said: "Who gets the money depends entirely on the contract." Unfortunately no one seems interested in the contract.  

There was a great deal of concern over the amount of the deposit. Opinions ranged from it should have been $500.00 to $1,000.00 again with no reference to the contract or sale price. It turns out it was a small (under $60,000.00) short sale contingent on the seller's lenders approval. Which means the $250.00 may have been entirely reasonable, especially from the buyers point of view.

What is reasonable? Just how much should a earnest money deposit be? I'd say it depends! When I was new the recommended deposit on a home was 3%. 3% was a good deposit in most cases, but way to low in some and extremely to high in others.

The main purpose of an earnest deposit was to provided security for the seller incase of bad faith by the buyer. The REALTORS didn't mind that if the buyer backed out they split the deposit with the seller. So the deposit should be large enough to compensate the seller and agent if the buyer should default. That sounds so simple, but it's not! There are other contingencies.

A deposit, a large deposit impresses the seller and may make even a weak offer acceptable even over competitive offers! After an Earl Knightengale seminar suggested it, I once took a very large cash deposit with me to present a low offer, before showing the contract to the seller and his agent I made a big show of counting out a huge stack of hundred dollar bills and spreading them in front of me. It worked, but the seller cried when I picked them up and put them back in my case. His agent explained that the money had to be placed in escrow just like we'd told him before he signed. My broker nearly fired me for taking cash, I never told him I'd flashed it at the seller, but the listing broker, the other agent, did a few months later. 

On the other hand. Who's taking the risk? I've used very small deposits when the seller might be the one to default.

When I sold my own condo not to long ago, I learned that the buyer had backed out of two previous offers, so while her offer was acceptable and she was pre-approved, I demanded a non-refundable $10,000.00 deposit! To her agents surprise she paid it.

(For the record: I required that the buyer deposit the $10,000.00 to the escrow company with in 24 hours. Then gave the buyer 10 full days to make any and all inspections she or her lender wanted. When she didn't object to the findings the money was released to me unconditionally on the morning of the 11^th day. The contract expired with her lender failing to get her financed. I could have moved on but instead I got her lender a source and we closed a week late.)

The point is earnest money is just a tool! Like all real estate tools if you understand it can be extremely useful, but it can be abused. If the seller demands and receives the deposit normally he waives all other remedies, like specific performance or specific damages, in most cases I recommend you seek legal advice before demanding the deposit, the buyer's assets are known you may have options.

I wouldn't tie up a lot of my buyers money in a long term or opened ended short sale offer. But I might suggest a huge deposit to be returned on a date certain if the offer is not approved by the sellers bank! There is always more than one way! A large withdrawable deposit could motivate the seller's bank!

Who do you represent? What do you want to accomplish for your principal? The deposit is possibly the least considered iteam on the sales agreement!

Bill

William J Archambault Jr

The real estate Investment Institute

Talking about who is entitled to the Bank's money like it belong's to the Bank not it's stock holders or the American tax payers I read: "Who is deserving??? Anyone whose property value has declined in the past 5 years"

Can you believe it that's an actual quote from an American (?) regarding who's mortgage should be forgiven with other peoples money. Did even one of these leaches entitled people plan on sharing profits with the bank?

If everyone is entitled to anyone's money it has to be a Ponzi scheme, where today's tax payers are given tomorrows tax payer's money! We're all going to have to pay for these people a long with our grandchildren!

In 1802 a real American, Thomas Jefferson said: " The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." 

Is there any question that, that is the kind of thinking that got the Republicans to run their verison of Jimmy Carter and the Democrats to win the White House with their version of Carl Marks?

If you believe we are entitled please send me your fair share of my entitlement to my new address: William J Archambault Jr, 448 W. 19^th St, Suite 245, Houston, TX 77008

Every entitlement check I receive will be acknowledged with a large star here on my AR Blog! If your envelope is post marked with in 48 hours of this post you'll get two large stars beside your name on my post.

Bill

William J Archambault Jr

PS: Congress is considering the "Cram Down Bill" today, in which we renounce the integrity of contracts! It's a sad, sad, sad day. Is there to be no end of our shame?

I've been playing with You Tube learning as I go. Well I also want video phone capability My daughter recommended Skype. All it took was a quick free down load from: tthp://www.skype.com/download/skype/windows/ The same little video camera that I've been using for years and my headset.

Now all I need is some one to talk to so I/we can learn to use Skype.

I'm listed as William J archambault Jr

If I'm not on line you can reach me at 832-259-7078

Bill

 

I continue to experiment with You Tube. I'm using the little Logitech web camera that I bought to go with my first laptop several years ago. Camera placement is limited by the very short cord on the camera, I can focus it, but not while recording. It may be time for a better camera.

For sound I've tried the built in microphone, I've tried my headset the one I use for pod casting, and I've tried a hand held microphone there doesn't seem to be much difference.

I'm open to suggestions about software that would let me edit the videos, any one have an inexpensive suggestion?

Bill

William J Archambault Jr

 

Self defeating behavior is just one of the unintended consequences of a new short sale addendum form propagated by the Florida Association of REALTORS®! I have not had an opportunity to review this short sighted document, form SSA-2 my knowledge of it comes from a blog here on Active Rain: Short Sale Addendum & Mid-Florida Regional MLS Rules: Which One Wins?

As presented: "Unless otherwise agreed upon by Buyer and Seller in writing, Seller may continue to market the Property for sale and accept other offers and submit those accepted offers to the Lender."

At a time when lenders are dragging their feet on approving donations to delinquent home owners this ill-conceived document undermines other wise acceptable sales. Short sales are not a right, delinquent home owners are not entitled to the banks money! Banks accept short sales if they are in the banks best interest. If the seller/delinquent is inconclusive about the offer being presented or is reticent about the offers likelihood of closing why should the bank accept the offer? If the seller/delinquent keeps the property on the market seeking either a higher offer or a back up offer why would the bank believe in the current offer?

What? Can be gained by such incongruity?

Bill

William J Archambault Jr

The Real estate Investment Institute