First Capital Funding Corporation’s Blog

Update 1: As you all know we have been very proactive in obtaining homes for our members to transact on. The Realtors Report and the Home Builders report is one of the main reason for our present success. As we enter in a buyers market, sellers of all types are looking for alternatives to their current situation. We have been able to meet their needs by not only getting their homes but by doing so fast. Having so many buyers gives you the ability to negotiate with sellers in a position of advantage. Presently we have Properties in 5 States and looking to expand more.

Update 2: We have conducted our second home auction and we have to say, we are pleased. We manage to sell a not so nice home in a weekend for top money neting a little over 10K. We did this with a home that had not had any offers in 9 months while it was listed with an agent. We will conduct several more and as we fine tune the process, we will be passing it to our members.

The web is full of resources to make your life as a real estate agent an easy one. You get resources for leads, comparables, notary services etc., all at very little cost if any. Use them.

I am happy to say that the early results of 15 generators are nothing short of spectacular.  In less than a month we have accumulated 1,295 buyer leads.  Out of the those, 27 leads were ready to buy a home now.  One came in with over 50% down payment for one of our homes.

There should be no doubt that the Home Buyer Lead Generator is a necessary tool to close more deals in this market.  Imagine having ready buyers for your homes in record time.  Do you have empty houses? This is the answer.  Read more about it here: http://www.homebuyerleadgenerator.com/

As many of you already know, we have been successfully running a FREE Joint Venture Program where a JV Member finds a home and with our assistance, we close it and split the profits 50/50.

Unfortunately, we have decided to close the program in its Free format for several reasons.

When the program was first created in June 2006, it was intended to be a profitable alternative for cash strapped people who could not afford the high price seminars but had the desire to learn and get ahead in life.

Unfortunately, at the time of this writing (December 2007) there were 1537 members, 1,350 of those who never did anything with the system yet they took time and resources and never really devoted the time to really correct the woes of their future.

After months of consideration we have decided to only work with the members who are serious about their future. Members who talk the talk and walk the walk.

It is unfortunate that in America, the land of opportunity, where you can truly forge your future and make a difference, a company has to charge big money for people to see the value. Well with that in mind we have decided to end the program and instead start a new paid program, like everyone else…but better!

The good news is that we will not charge near the amount of money that other companies charge for 1/10th of our support. We will not charge you $12,000 for a system and on top of that takes 60% of your profits. We will not charge you 3-5k for a bunch of DVDs and books and leave it up to you to figure it all out on your own and when you need help, they sell you a mentorship program for 4-7K with a mentor that is never around when you need him who teaches what he does not do.

Our new system has some of the same great things the old one had.

We will continue to provide toll free phone and fax support and endless coaching for you, even if it takes making the phone calls for you to close the deal. That is the level of commitment the old program offered that not many took advantage of. This new program will have less members, allowing us to provide you with top notch support. if we don’t see any activities from you, we will call you to see what the problem is. That is the level of commitment you can expect from us.

The new program will also have several new additions:

1. We will negotiate the short sales for you with no upfront fees and no review fees. We will negotiate steep discounts and split the profits 50/50. If the deal does not close, you owe nothing. Compare that to other systems.

2. We will teach how to do subject-to purchases properly and safely and how to build your portfolio.

3. We will teach how to use Land Trusts to take title of a property.

4. We will walk you through lease options and how you can make money in the front end and in the back end.

5. We will teach you how to do contract assignments for quick profits.

6. We will teach you how to do buyer assignments for quick large profits.

7. We will provide you the ability to have an endless supply of buyers and get paid in the process. (NO JOKE)

8. You will become part of an elite group of investors nationwide who control their respective markets, not survive them.

9. We will have regular training calls where only our small group of motivated investors participate, learn and apply.

10. We will put you in a fast track towards making $10,000 -$30,000 per month beginning your second month with our proven techniques.

11. We will implement a technique that will allow you to work on listed homes and still make tremendous amounts of profit. This until now has been virtually impossible. You will hold a deciding advantage over all your competiting real estate investors.

How are we different from other Real Estate Training Gurus pushing their courses on the web? Simple, we are working deals every day. We answer our phones, we call you back after hours at your request. We tell you how to do it as we do it on a daily basis.

Our system is not cheap but it is a real system designed to make you real money the moment you sign up. Compare to other so called “surefire systems” and you will see the difference.

Why did we price it not so cheap or even Free like the old program? Because we want to differentiate the players from the wannabes. We want people who are serious about their financial future. People who can take action when they see a great opportunity who will actually work the system.

If this is something you think you can be a part of, then visit this link:

http://www.homebuyerleadgenerator.com/

Thanks for your interest and I hope you join us.

Sometimes you are unable to convince a seller to sell you the home with the terms you feel you could make a decent profit.  Using Free Reports can be a way to stay in the mind of the seller while they are contemplating your offer or what direction to go.  You can send them something that can help them sell the home on their own and if they do you can at least get a testimonial for a future deal.  Below is an example of what you can tell the seller:

Selling a home privately

When you chose to sell your home privately (without the help of a real estate agent), most likely it’s because you wanted to save some money. A research shows that selling a home privately can save as much as $9000 during the home selling process. Don’t let this fact sway you, though. A qualified real estate agent costs a lot because they have experience in the market and is more likely to give you a more secure price of your home. An agent also wins in network; being able to reach people who’s looking for a house, or can help selling one.
Selling a home privately will also affect the marketing process. If you sell your home without the help of an agent, it’s not likely that you’ll have access to Multiple Listing Services – a database full of house listings given out to homebuyers. You might need to get the buyers in some other way, like holding an open house or putting an advertisement on local newspaper.

Furthermore, when a buyer sees that you are selling your home privately, they will offer a lower price, because they knew you’re already saving money from not hiring an agent.

On the other hand, it is understandable that some people can not trust other people to sell their home. Selling your home privately means being in total control of the transaction. You know that you will always be available for questions or home showings.

Whenever you made a mistake, it’s yours and only yours to blame (trust me, a mistake that costs you nothing would still feel better than an expensive one).

When you’re sure that selling your home privately is the way to go, there are some extra preparations you need to do. Take extra measures in preparing your house. Remember that you’ll be competing with professional agents and their clients’ houses – make sure you have a chance to stand out! Find websites that provides a “selling by owner” kit. Get as maximum exposure as possible

You also need to get educated in legal requirements and contract making. This will take some time, so get help from an attorney and start researching way behind your selling date.

Selling a home privately is a tricky business. Some say that you’re able to sell your own house if you have three free hours every day of the week. With a little bit of work, you’ll manage to put that much-needed money to better use.”

Here is part two of the video series.

Further proof that the market can be vibrant for the right investors with the right plan. The Real estate agent proposes to “Lower the price”!. Perhaps we can offer the solution they need!

What is the state of the market?

Whether you’re a seasoned real estate investor or brand new to investing, you will – at some point in your career – need to turn to hard money!

Many people turned away from hard money except on the REALLY UGLY properties for much of the early 2000s or if they had pretty beat up credit. This was because conventional lenders were giving money away for all intents and purposes! Virtually anyone – first time home buyer to seasoned investor – could get 100% financing on their properties and it didn’t seem to matter how many properties one had!

Well… welcome to 2007! The “conventional” lenders (like Chase, Indymac, Countrywide, etc.) have tightened their reins, and for good reason!

Before we go into how to get hard money, let’s talk about some of the pros and cons of hard money versus conventional financing!

Pros

• Hard money lenders look at the property first and the borrower second. 
• Hard money lenders will loan on UGLY HOUSES that conventional lenders won’t touch!
• Hard money lenders will often give you 100% of the purchase price PLUS all – or a portion of – the repairs.
• Hard money lenders will lend between 50% - 80% of the AFTER REPAIR VALUE.
• Hard money lenders tend to know your area – and the local real estate market – and can keep you from making a mistake when you buy. 
• Hard money lenders can close quickly – sometimes in as little as 3 to 5 days.
• Hard money loans are usually interest only.

Cons

• Hard money loans tend to have higher interest rates (11% - 16%+)
• Hard money loans often charge more points (1 point – 5 points)*
• Hard money loans have shorter repayment terms (6 months – 1 year)
• Hard money lenders can be more conservative in softer markets

Now that we’ve covered the majority of pros and cons to hard money loans, let’s look at what we can do to get better rates when we do need to get these types of loans. And… it all comes down to organization!

Understand that hard money lenders turn away dozens of deals every single day and if you’re just starting out and it’s your very first deal, they’re going to be a bit more conservative on your first loan. So, it’s important to show them that you’ve got a plan, you know what you’re going to do and that their money is not “at risk” with you. Hard money lenders DON’T want to foreclose on you… they don’t want your property… They want you to make money, pay back the hard money loan and do it again.

The faster you can pay them back, the more money they’ll make. Look at it this way:
Let’s say you find a lender that’s willing to give you a $100,000 hard money loan at 3 points and 15% interest. So… they make $3000 on the loan up front (3 points = 3 percent of the loan). Next, each month, they make $1250 in interest. At the end of the year, they’ll make $18,000 on the loan.

BUT… if you pay the hard money loan back in 6 months and do it all over again, they make $21,000 on the same $100,000 because they’ve charged the points twice!

So, if you can show them that you are going to get them their money back – FAST, they’ll be more likely to work with you – AND to give you better rates. By following this process, I’ve been able to get hard money loans with 0 points, 11% interest rate, and no payments until the property sold.

Provide the lender with a detailed property report. In it, include the following information:

1. Property photos
2. Purchase Price
3. Description of property
   - Description of neighborhood
   - Justification of why this is a “great” deal
4. After Repair Value 
   - Justify it with at least 3 sold comparables and 3 on the market
   - It’s best if you go with the lower – more conservative numbers
5. Detailed plan for the property
   - Work to be done
   - Estimate of repair costs 
   - Schedule of repairs
6. Marketing plan for the property including:
   - Commissions for Realtors® (Even if you’re going to sell FSBO, calculate 3% for the buyer’s agent in the event they bring you a buyer). It’s better safe than sorry
   - Closing costs
   - Seller concessions, if applicable
7. Financials
   - Purchase price
   - Closing costs for purchase
   - Holding costs including interest, taxes, insurance and utilities
   - Closing costs for sale
   - Estimated net sheet based on best, worst and likely case scenarios

The bottom line is this… there are just some deals that you will have to use hard money on. (Sure, you can find private lenders and get lines of credit once you’ve built some experience, credibility, and credit,but the majority of people just getting started in real estate will need to use hard money until they have built up their credibility and often, their credit).

Not to mention… if you use this same format, you will be able to get private lenders faster too, which will reduce your costs of money and increase your profits!

*1 point is equal to 1 percent of the loan amount

Written by: Heather Seitz, the co-creator of the Fixing and Flipping software, the fastest and easiest way to calculate repair costs, holding costs and closing costs for real estate investors.

“Your 4-Hour Workweek Starts TODAY!”

“Your 4-Hour Workweek Starts TODAY!”

Stop whatever you’re doing and picture this:

One month from today you have 100 people bringing you extraordinary leads on unlisted properties in any market you want to invest in. Every single day. For absolutely NO CASH out of your pocket and absolutely NO EFFORT on your part.This is every investor’s DREAM!! And it can now become your reality.

Two of my friends in Hawaii have created an automated system that uses free online classifieds and a web-based management center to recruit, train, launch and manage a massive network of bird dogs that brings them leads all day long, every single day.EVERYONE is talking about this, and you need to see it for yourself! 

If you’ve been wanting to cut your marketing budget or free up some of your time, this is exactly what you’ve been looking for. Go check it out for yourself right now!

www.teamworkleadsystem.com

It’s a big season for foreclosures. And we’ve collected some stats and information that you’ll find very helpful.

National numbers

• A total of 147,708 foreclosure filings were reported nationwide in April
• Foreclosure activity decreased 1 percent from March
• Foreclosure activity increased 62 percent from April 2006
• The foreclosure rate was one foreclosure filing for every 783 households

State highlights

• Nevada documented the highest state foreclosure rate for the fourth month in a row — one foreclosure filing for every 232 households
• California reported the most total foreclosure filings of any state for the fourth month in a row — a whopping 30,505 Metro highlights
• The highest metro foreclosure rate was in Stockton, Calif. — one foreclosure filing for every 131 households
• Six of the 10 cities with the nation’s highest metro foreclosure rates were located in California

*Actual year-over-year increase may not be as high due to expanded data coverage in this state.