Easy Money


By now most of us have a decent understanding of how the subprime mortgage mess came to a meltdown.

Easy money caught up with us when borrowers could no longer afford their minimum payments, which were usually their mortgages, which had been refinanced(or leveraged with home-equity loans) to pay off unsecured credit cards which had been used to finance liabilities like cars, boats, college, home improvements etc.

But can you really blame someone for being handed easy money?

I mean think about it.. The media pushes the message because it is bought and paid for, just like the political parties and currency systems, and by the same people.

The message is to spend money you don’t have.

The government does that, why shouldn’t you?

And now, four years past Ground Zero of the recession, and easy money is still available. How can this be? And who can still qualify?

I saw a commercial today for mortgage rates at 3%. My flight instructor told me this morning that he has an interest rate of 3 1/2%. Yesterday my pool guy told me he had an interest rate of 3 1/2% too.

The reality is that it is a huge market and there are people who can borrow.

The difference, not “everyone” still can, at least not conventionally.

Okay so FHA financing or conventional financing might be out, but is your primary residence really an asset? I don’t think so. If it doesn’t put cash in your pocket, it’s not an asset.

Cash flow, combined with capital growth, depreciation, and other tax advantages that the government incentivizes real estate investors with, make real estate the best vehicle for investing.

So where is that you give money now?

We have so much information(content), that I don’t think it has been easier in the history of the world for anyone to get rich. No longer does it take land or capital to get started.

Don’t get me wrong, the gap between the rich and poor is greatly widening, with most of the middle class moving towards the poor. But, for those willing to invest in their financial education, the opportunity has never been so prime.

Easy money is still available, as our global economy is on life-support from quantitative easing and other stimulus provided from central banks like the Federal Reserve. It can’t last forever, and when they start just simply canceling out that debt, the system will crumble, unless they come up with another system before that.

They’ve done a good job of averting a severe depression, but if they don’t make changes now to start advancing technology and energy, as well as investing in our financial education as a generation, the system does not stand a chance.

Here in Arizona we are combining financial education with real estate and providing a platform for investors around the world to invest in their financial education and real estate.

Finding deals is easy once you have the education, and then the money is easy too.

Debt can be a good thing, if you can use it to acquire assets that put cash in your pocket.

We have seen what spending the money on liabilities has done, both on the neighborhood level, as well as with our government..

What are you waiting for? Get started now, we’re ready to get you going!

Why is it we so often put off the things that are really most important to us?

Not you, not anymore!

Written by: Joshua Gayman

Sent from my iPhone


Eminent Domain to Help Underwater Homeowners?

You may have heard, there is big buzz going around this month about an investment being pitch by a private mortgage company for municipalities  to use eminent domain to buy underwater mortgages. The deal they are pitching is to have the government come in and seize mortgages on properties where the homeowner is current on the payments, and that property is underwater.

The proposal is that the county use eminent domain to buy underwater mortgages. The mortgage company, working with the municipality(in this case, San Bernardino County) would then negotiate new mortgages with the homeowners that they could afford. If the proposal worked as planned, the county would get relief from the foreclosure crisis, the mortgage company would make a profit, and the idea would spread to other counties and towns.

The investor is hedge fund Waterfall Asset-Management, and they would step up as the potential investor in the proposal.

What is odd to me, is that most of the controversy between those who support and those who oppose the proposal, is that the controversy is all centered around the effect, and not the principle. By that, I mean supporters are looking for a way to justify the action, and not looking at what it might open the door to(then again, I think we are far past the days of opening the door to “re-interpret”/change the constitution…), but this proposal would, in my opinion, take government control to an even higher level. Supporters are claiming that it would be constitutional because a “fair price” would not be hard to justify, and there is a public benefit, which they claim is the point of eminent domain. With profits to the investor being talked about to be in the 15%-30% range, I find it hard to believe that could be contstrued as “fair price.” Then again, the banks did just simply print the money by an accounting entry..

I’ll be honest, I had never heard of eminent domain until I studied for my real estate license several years ago. When I first heard of eminent domain, I thought the idea was completely ridiculous. I don’t care what the reason is and how great it helps the community, I don’t think there is ever a reason the government should come in and say that they are reclaiming possession of my property because it benefits the public. To me, that pretty much goes against everything that is supposed to be part of being an American. Look, if my front yard every becomes the battlefield of a war I believe in, I will gladly volunteer the use of my property to protect my neighbors. The government shouldn’t have the right to force that. Of course, since we pay property taxes and the government gets priority over all other liens for unpaid property taxes, we really never OWN property at all, but simply lease it from the government.

But let’s face it, the banks have been crooked and played a large part in creating the mess we are now in. Banks are the biggest beneficiaries of the debt system that the global economy they have created(specifically central banks).

Opponents are saying that the proposal is unconstitutional and will harm housing. They also say that returns of 15 to 30% are ridiculous and this goes against the fair price factor of eminent domain.

So my point is this, two wrongs don’t make a right. The system is screwed up. The Fiat dollar is screwed up. Repealing the Glass-Steagall act in the late 90’s which allowed  deposit banks to act as an investment banks is screwed up. Bailing out the big insurance companies and banks with tax payer dollars was screwed up.

In a world of creditism, NOT capitalism, it is hard for one to be surprised by much these days that the government or big $ does. After all, they’re all in bed with each other.

So how does this relate to real estate investing investing? Well, the local investor, which greatly benefits the community, is pretty much screwed here. Great opportunities for his investments are robbed by a huge firm which comes in and politically/effortlessly reaps huge returns and profits.

Regardless of what happens here, whether it happens in San Bernardino or not, and whether it spreads to other parts of the country or not – what is important is that, if you want to be wealthy, you mind our own business and increase your financial education. By this I mean, don’t fight the system, but use your knowledge to thrive in spite of the corruption/economy.

Regardless of what the government does, regardless of what Wall Street does, regardless of what your neighbor does, you have a choice. You can increase your financial education and stock up on assets while they are affordable and easy to cash flow.  Big hedge funds can’t take all of the deals, and the government offers huge incentives for you to help them provide safe, affordable housing in the marketplace.

If you are interested in investing in real estate or would like more information on how to get started, please check out our site. If you are finding yourself in a market where it is hard to find deals that cash flow, you might considering investing in Arizona.

Written by: Joshua Gayman

Sent from my iPhone

Joshua Gayman is a full time Realtor and Real Estate Investor. He has closed over 125 deals since 2009 and is an expert in the Arizona Real Estate Investment market. Joshua provides coaching and investing options for clients around the world.
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Phoenix Leading the Nation in Real Estate Gains

An article from CNN caught my attention this morning, as I was doing my daily morning scroll through my Facebook wall.  The title: “Home Values Rise for First Time in Five Years.”

I started to scroll through the article and realized that they were getting their data from Zillow.com. It was showing them that home prices have hit a bottom and are finally bouncing back.

Nationwide, home values rose .2% year over year to a median $149,300 during the second quarter. This was the first annual  increased since 2007. Prices were up 2.1% just from the first quarter. They go on to talk about different markets that are rising fastest and when she know it, Phoenix is leading the way!

In  Phoenix AZ, the median sales price for homes for Apr 12 to Jun 12 was $112,000. This represents an increase of 23.7%, or $21,432, compared to the prior quarter and an increase of 31.8% compared to the prior year.

So why is real estate gaining so fast, particularly in Phoenix? Well, the media and politicians would like you to believe that it is from policies implemented, and improving employment rates, that have spurred the real estate recovery. This is simply false.

The reality is that home values crashed so fast and so hard when subprime borrowers, and even other borrowers, were unable to continue to keep paying the interest on the massive debts they had taken on to buy real estate.

This crash was so devastating to values that it put them at all-time lows at a time where interest rates are also at all time lows.

The thing no one talks about with interest rates being at all-time lows, is that there are very few people in general who can qualify for a traditional loan. First time homeowners are having a hell of a time, and second and third time homebuyers trying to move up are facing similar situations, especially when they have  negative equity on their current croperty.

So, again, what is causing this increase in value? Well, it’s really simple. Values got so low that investors from around the world (yes, I did say around the world) are sending their cash to America, specifically Arizona, to invest in the real estate. Borrowers trying to purchase property to live in themselves are finding it very hard to get an offer accepted when competing with all of these cash offers that are investors.

So, the reality is that as the middle class is wiped out and the poor class is getting bigger, the rich are also getting richer. Some people are moving from the middle-class to the rich instead of to the poor, by taking advantage of the markets through financial education.

There has never been a time quite like this where properties were so cheap and easy to cash flow, at the same time as interest rates being so low. Yes I did just say it is very hard to qualify for loans, however, if you can find properties that cash flow or have equity, times have never been easier to find the private financing or hard money loans to acquire that asset.

So go out there and find a deal to take advantage of this market and join the new rich. What choice do you have? Life is not getting any cheaper, but if you can increase your financial education and start investing in assets, you can achieve the lifestyle you want and deserve regardless of the economy, real estate, or unemployment rate.

Written by: Joshua Gayman

Sent from my iPhone

Phoenix Housing – Recovery – Shadow Inventory For Real?

Arizona is taking off right now! Prices are up over 20% in Phoenix the last 12 months and the reason is because Arizona is such a great place to live. The weather.. for retirement.. entrepreneurs.. affordability.. and people that want to go to school.. So there’s a lot of different things in the Valley that make it a very good economy. If you are looking at investing in Arizona, it’s a phenomenal place right now! Many people here and a lot more are still moving here! We have low home prices still and the rental rates in Phoenix have gone up 18% in the last year! These things make it a super hot place to invest! If you want to invest here in Arizona, you can do it from anywhere in the world by clicking here to get started! 


“The actual lender owned inventory is tracked down to the individual parcel and is available to Cromford Report subscribers here. There are fewer than 5,900 residential properties, and this includes some 2,600 or so that are already listed as active, pending or temporarily off market on ARMLS. The idea that an inventory of 3,300 is being artificially held back by lenders is ludicrous. Even if by some miracle this inventory were to be placed on the market all at once, it represents less than 2 weeks supply and would have a negligible effect on prices. This number also includes homes that have been leased out to tenants by owners such as Fannie Mae and Bank of America. Miami and Phoenix should not be regarded as in similar situations. If we compare Florida and Arizona home loan delinquency, as reported by Lender Processing Services, we see that as of the end of May, Florida had 21.3% of its first home loans 30 or more days late or in foreclosure. The equivalent number for Arizona is 8.7%, which is below the national average of 11.3%. In addition there has never been any serious evidence that lenders have held back on foreclosing in Arizona except during very brief and well-advertised periods in 2009 and 2010. We have one of the lowest elapsed times between notice and trustee deed and a relatively low percentage of loans that are delinquent by 30 or more days but not yet in foreclosure (5.9%, which compares with a US average of 7.6%).” – Michael Orr(Cromford Report)

Cash flow or equity? Arizona has both

When it comes to real estate investing I always look at two things first: how much, if any, can I cash flow the property? and 2. Is there any built in equity with the deal?

Let’s explore cash flow. Cash flow is my favorite part about real estate investing.. Actually, cash flow is my favorite part about investing in any asset! The reason is simple, we all need a couple bucks in our pocket. There are two ways to accomplish this. We can either work for money, or have our money work for us. Logic would say that to build a nice retirement or lifestyle, one would want to choose the latter.

Cash flow, or passive income as viewed by the IRS, is also taxed at a lower rate than earned income. The reason for this is also not too complex, the government gives incentives for people to invest in housing. The government needs housing, so by investing in something that they need, you can take advantage of these incentives they offer.

Cash flow is also a solid foundation and can weather the storm of a housing first. We saw in recent years many so-called real estate investors getting slaughtered when the market took a turn as housing loans collapsed. The investors who had built their portfolio on cash flow were fine, in fact they actually thrived as rental rates took off from a growing demand of renters who could not afford the loans on their own property any longer.

When you invest for cash flow, it does not matter whether the value of the property goes up or down or remains constant. You have calculated your return based on how much cash it puts in your pocket on a monthly or yearly basis in comparison to how much you initially put into the asset to acquire it.

Many successful real estate investors have found ways to acquire cash flowing properties without using any of their own money initially. This is what rich dad Robert Kiyosaki refers to as printing your own money. There are many strategies of doing this, some that include having money partners or private lenders or other types of financing, and others that include going out and finding motivated sellers.

Now let’s talk built in equity. Built-in equity is nice as you obviously increase your net worth as soon as you acquire that asset. The thing about equity however is that it does not provide any cash flow directly. You might have increased cash flow with the more equity you have, as a result of lower loan costs each month, but simply acquiring a house that is worth more than you buy it for in and of itself does not put cash in your pocket on a regular basis. However, properties with built in equity are usually much easier to cash flow, and worst-case scenario are always prime opportunities to create some earned income by wholesaling or flipping, which can also be done using other peoples money or financing.

If you are interested in building or expanding your real estate investing portfolio, head over to our investors page. We are happy to assist investors from around the world to invest in real estate in Arizona no matter how little or how much they have to invest!

Phoenix boomtown! Great place for real estate investors

Phoenix housing boomed with the housing market and then crashed hard with the subprime mortgage crisis. Now things are looking up again in the state. It seems as though when the national markets go up, Phoenix goes higher, and when they go down, Phoenix goes lower..

This makes Phoenix one of, if not, THE best place to invest in real estate. You can buy properties for cheap when the market is rough, then rent them for amazing cash flow and tax breaks, all the while riding it out to realize some significant gains from appreciation.

Phoenix is volatile, but for the cash flow investor, that’s good news!

Click here for to get started investing in Arizona real estate!

Phoenix Housing Market: Rental rates up 18%

Phoenix rental rates are up 18% in the last 12 months, making it one of the greatest places in the nation to invest in cash flowing real estate! Couple this with the fact that Arizona continues to grow with education across the valley as well as being one of the premiere retirement spots in the world as baby boomers are approaching retirement and rapidly moving towards Phoenix. Values and rental rates are increasing along with a greater demand for rentals, as unfortunately, foreclosures still plague the state.

Phoenix Housing Market Trends – June 2012

The median sales price for homes in Phoenix AZ for Apr 12 to Jun 12 was $112,000. This represents an increase of 23.7%, or $21,432, compared to the prior quarter and an increase of 31.8% compared to the prior year. Sales prices have depreciated 52% over the last 5 years in Phoenix. The average listing price for Phoenix homes for sale on Trulia was $282,323 for the week ending Jul 04, which represents an increase of 0.4%, or $1,251, compared to the prior week and a decline of 0.1%, or $357, compared to the week ending Jun 13. Average price per square foot for Phoenix AZ was $200, an increase of 159.7% compared to the same period last year. Popular neighborhoods in Phoenix include Camelback East, Deer Valley, Paradise Valley, North Mountain, Maryvale, and Alhambra.

Two Rumors have been going around the Phoenix real estate market: 1.foreclosures are rising and 2. there is a “shadow inventory” of foreclosed homes the banks are sitting on.

Foreclosures are down big time in Phoenix and while we still get the occasional blip up here or there, the trend has been consistently down since the start of the year. Comparing the number of foreclosed homes for sale in January of 2012 to January of 2009 – the supply is down 92%. There will always be foreclosures, but the numbers are consistently dropping and the forecast is more of the same.

And then shadow inventory.. Shadow inventory is the homes that the banks have taken back and are sitting there vacant being held off the market in an effort to control pricing. The banks in Arizona do not have some stash of houses they are holding back. The thing about real estate is that changes of ownership cannot occur in secret – they require a public recordation to transfer ownership. So this persistent rumor is more attributable to errors in counting and tracking foreclosures than anything factual. What happens is that many houses are vacant due to homeowners vacating the premises prior to the bank actually foreclosing. I’ve walked the neighborhoods and door knocked the pending foreclosures and it is amazing how many houses are vacant.

The Phoenix market is hot and the opportunity to invest is still one of the best in history! This is a choice, and it’s not an easy one. The easy choice is to continue doing what you’re already doing. The hard choice is to beginning the process of changing your mindset—the process of choosing to be rich by investing in Arizona Real Estate. Call me. This starts with increasing your financial intelligence. Through these endeavors you will change your mindset.

I challenge you to invest in Arizona Real Estate. Will you accept the challenge?

From Facebook: “Comping a property this morning I found only one active and it had been on the market for six days. I contacted the listing agent on it to find out if they had received any offers yet to find out they have 15 offers and most are over list price! Nothing new for those who are in the market but just thought I’d throw it out there so everyone knows that no it is not cooling down yet!! Prices in the Phoenix metro area are up 32% since last August!! And one of the biggest metropolitan areas in the country there are less than 8000 homes on the market that are active and of those MANY have offers already on them just not accepted yet. % at 3.6 r u kidding me?!

Phoenix Housing Market Trends – May 2012

Those of you who are wondering what the facts are on the valley’s real estate market values, this will be a quick primer.

Despite national news or even the local news stories (shadow inventory, prices dropping, foreclosure wave coming, etc.) the fact of the matter is prices have been marching upwards at a record pace the last 3 months. The price per square foot since February 16th has jumped from $85.62 to $98.81. In three short months that is an appreciation of 15.4%. On an annualized basis that would equate to 61.6%. Yikes! This jump can be attributed to the scarcity of inventory – which had been dropping dramatically since the beginning of the year.

Do we think the market will continue appreciating at that clip? No. Inventory appears to be stabilizing – and price appreciation seem poised to do the same in June. But appreciation seems to be the theme for this year – so although we don’t expect the rate to hit a dramatic 61% we do expect it to continue its upward climb.

Here is a snap shot of what has been happening recently. The most sales were purchased with CASH (3967) and the largest number of homes ( 1760) were on the market for only 1-10 DAYS before they SOLD! ( ARMLS data ending April 2012). Yes that is correct…DAYS!

Financing used to purchase homes:

Cash- 3,967
Conventional- 2,544
FHA- 1,441
Other- 18
Owner- 56
VA- 264


0 days- 166
1 to 10 days- 1,760
11 to 20 days- 971
21 to 30 days- 633
31 to 60 days-1,349
61 to 90 days- 846
91 to 120 days- 603
121 to 180 days-907
181 to 360 days- 785

Phoenix Housing Market Through May 2012

For those of you who are wondering what the facts are on the valley’s real estate market values, this will be a quick primer.

Despite national news or even the local news stories (shadow inventory, prices dropping, foreclosure wave coming, etc.) the fact of the matter is prices have been marching upwards at a record pace the last 3 months. The price per square foot since February 16th has jumped from $85.62 to $98.81. In three short months that is an appreciation of 15.4%. On an annualized basis that would equate to 61.6%. Yikes! This jump can be attributed to the scarcity of inventory – which had been dropping dramatically since the beginning of the year.

Do we think the market will continue appreciating at that clip? No. Inventory appears to be stabilizing – and price appreciation seem poised to do the same in June. But appreciation seems to be the theme for this year – so although we don’t expect the rate to hit a dramatic 61% we do expect it to continue its upward climb.