CoreLogic reported a decrease in foreclosures for the whole year in 2011 with 830,000 compared to 1.1 million in 2010.  According to Bloomberg, mishandled mortgages and foreclosures have cost banks as much as $72 billion.  In other news, the Mortgage Bankers Association reported a 7.5% increase in mortgage applications.

In The News:

DS News – “Report Reveals Number of Foreclosures Down From Last Year” (2-8-12)

“A foreclosure report released by CoreLogic Wednesday revealed that the number of homes in foreclosure is decreasing nationwide. The report included monthly data on foreclosures, foreclosure inventory, and 90 plus delinquency rates.”

Bloomberg – “Faulty Loans Top $72 Billion as Banks Seek Deal With Regulators: Mortgages” (2-8-12)

“Costs from faulty mortgages and shoddy foreclosures have topped $72 billion at the biggest U.S. banks as they near a settlement of a 50-state probe into the industry’s practices.”

NAHB – “Home Builders Applaud Menendez Bill to Restore the Flow of Credit for Home Building” (2-8-12)

“The National Association of Home Builders (NAHB) today commended Sen. Robert Menendez (D-N.J.) for introducing the Home Building Lending Improvement Act of 2012 (S. 2078), legislation to help restore the flow of credit for new housing production in order to create jobs, meet rising housing demand and bolster the economic expansion.”

Realty Times – “Mortgage Rates Continue Low Despite Upbeat Economic Data” (2-8-12)

“According to Freerateupdate.com’s weekly survey of wholesale and direct lenders, mortgage rates have remained the same for another week and through another stock market rally. Current 30 year fixed mortgage rates are at 3.500%, 15 year fixed mortgage rates are at 2.875% and 5/1 adjustable mortgage rates are at 2.250%, all available with 0.7 to 1% origination fee to well qualified borrowers.”

Mortgage Bankers Association – “Refinance Activity Increases as Rates Hit Survey Lows” (2-8-12)

“Mortgage applications increased 7.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 3, 201.”

Bloomberg – “Mortgage Bonds Face Eye of Storm as Refinancings Decline: Credit Market” (2-8-12)

Investors in U.S. government-backed mortgage bonds who benefited from a decline in early payoffs by homeowners are bracing for the fallout from a loosening of refinancing rules at Fannie Mae and Freddie Mac.”

Housing Wire – “Consumers take on more debt: Federal Reserve” (2-8-12)

“Consumer credit outstanding rose 9.3% in December to $2.49 trillion, compared to $2.47 trillion in November and $2.46 trillion in October, the Federal Reserve said.”

Bloomberg – “BofA Stalls Refinance Applications as Wells Fargo Is ‘Open for Business’” (2-8-12)

“Bank of America Corp., struggling to handle mortgage refinancing after a U.S. program boosted demand, is telling some customers to wait 90 days before starting an application, said two people with knowledge of the policy.”

Housing Wire – “Multifamily permits outpace construction in 2011“ (2-8-12)

“Multifamily permits surpassed the sector’s construction rate for the last three months of 2011, while single-family construction remained flat.”

Hard Money Loan Closed

Fontana, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $140,000 on a 4 bedroom, 2 bathroom home appraised for $245,000.

California Real Estate Investor Events:

The Norris Group posted a new event. The Norris Group will be holding their monthly REO Boot Camp, February 14, 2012.

Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

Fannie Mae and the MBA predicted the housing market would begin a rebound that would last until 2013, and Zandi predicted 4% gdp growth through 2012. IAS claimed national home prices fell 0.8% during the 4th quarter of 2010.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Bloomberg news and Los Angeles Times reported the economy grew less than expected in the third quarter, indicatinga slight increase in growth.  The FHA reported a slight decrease in mortgage rates sold to GSEs.  According to CNN, fewer banks are in danger of failing, marking the second quarter in a row for the number of banks to be reduced.

In The News:

Housing Wire - “Banks dark on previous work with foreclosure reviewers” (11-22-11)

“The Office of the Comptroller of the Currency posted the actual engagement letters Tuesday between the major mortgage servicers and their third-party consultants hired to perform reviews of foreclosures that took place over the past two years.”

DS News - “Judge Permits Delaware and New York to Intervene in BofA Settlement” (11-22-11)

“A judge ruled Friday to allow the Delaware and New York attorneys general to pursue litigation in Bank of America’s $8.5 billion settlement with major investors.”

Bloomberg - “Mortgage Servicers Make Progress Fixing Invalid, Flawed U.S. Foreclosures” (11-22-11)

“Banks and mortgage servicers are making progress in improving their processes and reaching out to homeowners hurt by invalid or flawed foreclosures, the Office of the U.S. Comptroller of the Currency reported.”

Inman - “Better Homes and Gardens Real Estae enters NYC market” (11-22-11)

“Franchise network Better Homes and Gardens Real Estate has entered the New York City market with the addition of a Staten Island brokerage, the network announced today.”

Los Angeles Times - “GDP revised downward; corporate profits up” (11-22-11)

“The U.S. economy grew more slowly than previously thought in the three months ending Oct. 31, the Bureau of Economic Analysis said, revising the nation’s third-quarter gross domestic product downward to growth of 2% from its previous estimate of 2.5%.”

Housing Wire – “FHFA mortgage interest rates fall slightly” (11-22-11)

“The average interest rate on mortgages sold to the government-sponsored enterprises fell 20 basis points to 4.36% in October, the Federal Housing Finance Agency said.”

Bloomberg - “U.S. Is Set for Fourth-Quarter Growth Pickup on Lower Inventories: Economy” (11-22-11)

“The economy in the U.S. expanded less than previously estimated in the third quarter, reflecting a drop in inventories that points to a pickup in growth as 2011 comes to a close.”

CNN Money - “FDIC’s list of problem banks shrinks” (11-22-11)

“The number of banks at risk of failing fell in the third quarter, marking the second straight quarterly decline, according to a government report issued Tuesday.”

Housing Wire - “Investor buying spurred by demand for rentals” (11-22-11)

“Investors looking for yield are acquiring more low-priced homes to fill growing rental demand, according to the latest HousingPulse Tracking Survey from Campbell/Inside Mortgage Finance.”

Looking Back:

According to CoreLogic, shadow inventory levels increased to 2.1 million units in August 2010. TransUnion reports mortgage delinquency rates fell to 6.7%. Data from Campbell Surveys showsed the current foreclosure problems were significantly delaying closings.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

The National Association of Home Builders announced record highs for housing affordability with the stabilizing markets.  Foreclosures have risen for the first time since last year, according to Bloomberg News.  DS News reported delinqunecies in the U.S. decreased to a level not seen in three years, displaying signs of improvement for people behind on mortgage payments.

In The News:

NAHB - “As More Markets Stabilize, Housing Affordability Nears Record Levels for 10th Consecutive Quarter” (11-17-11)

“Buoyed by stabilizing home prices and sustained low interest rates, nationwide housing affordability during the third quarter of 2011 hovered near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.”

Bloomberg - “Foreclosures in U.S. Rise for First Time in a Year as Lender Backlogs Ease” (11-17-11)

“U.S. lenders started foreclosures on more properties in the third quarter, the first increase in a year, as a backlog stemming from claims of faulty home seizures began to ease.”

Housing Wire - “House rejects bill allowing modified mortgages to count as performing” (11-17-11)

“A House subcommittee rejected a bill Thursday morning that would have allowed banks to count a recently modified mortgage as an accrual or repaid.  The Common Sense Economic Recovery Act of 2011, or H.R. 1723, was sponsored by several House Republicans.”

Realty Times - “Remodeling Activity Reaches Record High” (11-17-11)

“Many of today’s homeowners find themselves unable or unwilling to enter the housing market. Some may have unsteady jobs or are upside down in their home loans.”

Wall Street Journal- “Refinancing Guidelines Reassure Investors” (11-17-11)

“Mortgage-backed securities issued by Fannie Mae and Freddie Mac jumped Wednesday, as investors grew more confident that new incentives to boost refinancing for borrowers stuck with high-interest-rate loans would have a limited impact.”

O.C. Register - “Mortgage rates still near record lows” (11-17-11)

“From Freddie Mac’s weekly survey the average 30-year fixed rate remained virtually unchanged, moving up a single hundreth of a percentage point (or, a basis point) — to 4 percent and .7 point.”

DS News - “National Delinquency Rate Falls to Lowest Level in Three Years: MBA” (11-17-11)

“Industry data released Thursday indicates the number of borrowers in the United States behind on their mortgage payments is showing signs of improving.”

Bloomberg - “Housing Starts in U.S. Declined 0.3% in October” (11-17-11)

“Builders broke ground on more homes than forecast in October and construction permits climbed to the highest level since March 2010, signs that housing may become less of a laggard in the third year of the U.S. recovery.”

Inman - “Coldwell Banker rolls out agent learning portal” (11-17-11)

“Global franchise company Coldwell Banker Real Estate has launched an online learning portal for its approximately 87,000 agents, the company announced today.”

Looking Back:

The MBA reported mortgage application volume decreased 14.4% the week of August 17, 2010. According to CoreLogic, home prices fell 2.8% from September 2009. Mortgage fraud increased 20% from early 2009. Mortgage lenders were raising their minimum credit score requirements on FHA-insured loans.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 200 podcasts in our free investor radio archive.

I Survived Real Estate 2011

(Full Bio)

On October 14, 2011, The Norris Group returned with its award-winning event I Survived Real Estate. An expert line-up of industry specialists joined Bruce Norris to discuss current industry regulation, head-scratching legislation, and the opportunities emerging for savvy real estate professionals. 100% of the proceeds support the Orange County Affiliate of Susan G. Komen for the Cure. This event would not have been possible without the generous help of the following platinum partners: ForeclosureRadar and Sean O’Toole, Housing Wire, the San Diego Creative Real Estate Investors Association and President Bill Tan, Investors Workshops with President Shawn Watkins and Angel Bronsgeest, Invest Club for Women and Iris Veneracion and Bobbie Alexander, San Jose Real Estate Investors Association and Geraldine Berry, Real Wealth Networks, Frye Wyles, MVT Productions, and White House Catering. The event video can be found on isurvived2011.com.

Bruce continued his discussion with the panel on rental properties and homeownership. If some gigantic company owns 10,000 rentals, then Bruce for example would not know what to do with his because he would not know if the playing field was legit and if they are going to put 10,000 houses for sale. However, as a builder Bruce certainly would not carve up dirt waiting because that risk is out there that others could be his competitor at the drop of a hat. We should give investors a shot at taking the inventory down because it is manageable if we do not put it on the market.

Doug mentioned how he had come out of the venture capital industry, and a lot of folks in his industry put a lot of money into bad companies back in the late 90s. When there was a crash, they lost their money from bad investments. Therefore, the question is if Doug, for example, were to lend Bruce $100,000 and does not figure out what his ability to pay is and Bruce ends up stopping payments, then whose fault is it? The answer in this case is the lender. If you want to know how to fix things like this, from a market perspective the foreclosures should work through the system and let the banks take the loss. The issue in Washington is that the public has poured a lot of money into Fannie Mae and Freddie Mac, and a lot of those losses are going to rebound back onto taxpayers. You see the functions of the GSEs in terms of working other options other than the principle write-down piece, which will put those losses right back on taxpayers. Part of the reason that he hosted a meeting with some people at I Survived that night was to explore the investor option. They have a rule to have no more than ten loans per single investor. In the course of the bubble, the homeownership rate got well ahead of what was sustainable. There is not a broad based program to tear the properties down, and when Doug made a suggestion that it would be a good idea to tear them down, he was labeled within the company as “Dozer Duncan.”

Bruce said this actually happened in California with a brand new housing tract that The Norris Group made a bid on. Someone had sent Bruce an email with a YouTube video, and when Bruce saw the housing he thought they looked familiar. He asked Greg, and he told him those were the houses they had just made a bid on earlier. These were all brand new homes; the originals had all been torn down. Doug mentioned the evidence with the company’s portfolio from how they treated the properties, whether or not they were sold to owner occupants or to small investors and hedge funds was that the loss severity was greater. The loss severity on hedge funds is the greatest when you sell to owner occupants or small investors.

Sean talked about how you have 600,000 people right now who are 90 days or more delinquent, and there are another 200,000 who have a notice of default or are in the process of foreclosure. However, even though there are 800,000 in these groups, we have 2.4 million who are underwater. Between short sales and foreclosures, we’re cleaning up about 18,000 houses a month, so we’re looking at a span of five years if things stay at the same pace. It’s amazing that our pace of sales has stayed as high as it has, and it clearly would not have stayed this high without investors in California because repeat home-buying is gone.

Bruce next talked with a second group of representatives from the Mortgage Bankers Association, the National Association of Realtors, and the Appraisal Institute. The first, Debra Still, is President and Chief Executive Officer of Pulte Mortgage, a national lender headquartered in Inglewood, Colorado. She is the vice-chairman of the Mortgage Bankers Association, and she has been in the mortgage industry for 30 years. This year marks the first time Debra Still has been on the panel for I Survived Real Estate.

The next person was Sara Stephens. Sara is the 2011/2012 president of the Appraisal Institute, and she will become president on January 1, 2012. She serves on the organization’s board of directors and on its executive committee. Sara has been active in appraisal institutes up to regional and national levels for 20 years, and she is owner and principal of Richard A. Stephens and Associates, the oldest appraisal firm in Little Rock, Arkansas.

The next representative, Gary Thomas, is the first vice president of the National Association of Realtors. He is the second-generation real estate professional and owns Evergreen Realty in Villa Park. He has owned the business for over 30 years and has served the industry in countless roles. One of the things that struck Bruce was he has 16 grand kids.

Debra Still went first to say that her company is a national company, so they do business in 29 states, wholly on subsidiary of the homebuilder. She is very pleased to say that real estate is very stable and feels pretty flat, even with some of the dramatic headlines they have had in the last couple months. Their new orders and sign ups are very steady. In the third quarter they ran around a 22% cancellation ratio.

Sara Stephens said the market in Little Rock is doing well, and their public supply is officially in the office area. The retail properties are multi-family, while the residential market is stable in some parts of the city, more than other parts. It’s specifically in the Delta where they see declines and real problems.

Gary talked about how Orange County has faired pretty well for Southern California. It’s actually the best performing county in the Southern California area. They are holding their own and doing fairly well. He has not seen any challenges with loan reduction amounts, but he thinks we will sometime, especially along the coast where the average sale price is much higher and will therefore have an effect there. Bruce wondered what his down payment would look like if he was getting a down-payment loan and if he would be able to be self-employed. Gary said this would be very tough as it is harder to get a loan when you are self-employed. He would probably still be able to make a 20% down payment, but the loan would be harder to obtain.

Legislation passed the Dodd-Frank bill about a year ago, but it is almost to be figured out later what it needs. We’re arm-wrestling right now for the terms of what Dodd-Frank is even though it already passed a year ago. Bruce wondered what they did and if they had said what they wanted accomplished and were still trying to find a way to get there. Debra said the Dodd-Frank Act has about 250+ rules that need to be written, about 100 focused on mortgage lending. Now, the regulators are charged with actually writing the rules and the definition to meet the spirit of the law. There is a lot of facets to it, but one of them is a qualified residential mortgage. This could be a problem for our industry because if in fact they adopt the rule, it would mean to receive the better rate, you would have to have a 20% down payment. The problem with the thinking that you have to have skin in the game or it’s not a performing loan is because they’re not concentrating enough on the underwriting, which is what they really need to focus on rather than the down-payment. If somebody can afford the payment, it does not matter whether they have put 10% down or 20% down, or even 5% down. It’s really about whether or not they are a qualified buyer and if they can afford the property that they are buying. That went out the window in the past, so now it has to come back. There is a thought that that is getting back to basics, so Bruce wondered when the basics existed because it was not true in his first house purchase.

The risk retention rule is the rule that the definition of QRM comes up under, and the rule would say that someone who securitizes mortgages needs to retain 5% risk or reserve for the loans that they securitize. When the rule was originally published, there was no exemption other than FHA, USDA, and VA. One of the things the Mortgage Bankers Association lobbied very hard for was the notion of a carve-out for a qualified residential mortgage, and the definition of a QRM was left to the regulators to write. The regulators put out the first definition of a qualified residential mortgage that required the 20% down payment, a 28/36 jet ratio, and required no late payments within the previous 24 months. This is what the industry has been reacting to asking whether the regulators wrote a rule that was more conservative than the spirit of the law. Hundreds and hundreds of comments were filed, and whether it was mortgage bankers, realtors, homebuilders, or consumer groups, Debra believes everyone agrees that the rule went too far and we need to try again. The sound goal of it all was to encourage sound lending behaviors that reduce future default without harming responsible borrowers and lenders. This is where the rub is in that if it’s a 20% down purchase or 30%, it’s 30% equity for a refi. That is a big chunk of equity. The Mortgage Bankers research would suggest that if you look at the law, it provides for fully documented loans, no negative amortization, no exotic loan programs like IOs or payoffs in arms. Their research would suggest that the loan parameters inside the law were strong enough to prevent extraordinary default, and you don’t need the other underwriting restrictions that normal protocol for underwriting should prevail.
Risk retention sounds almost like a good thing because somebody who is creating a loan would have skin in the game, but there are unintentional consequences. If you think about the spirit of the regulation, it was to protect consumers; yet the regulation has gone so far that it is probably denying credit to well-qualified borrowers. Statistics would show that you can have the right risk balance without going as far as the 20% down or the debt-to-income ratios. MBA’s stats would show if you look at the 2009 Book of Business, which was a pretty conservative underwriting year, you see that still 70% of the consumers that received loans in 2009 would not qualify for a QRM loan. For a non-QRM loan, the difference in the interest rate would probably range from 100 basis points to 300 basis points. This would apply to a lender who would want to put capital reserves up and make a non-QRM loan. This is the concern as the Mortgage Bankers Association won’t have that kind of capital, so there would be too many of us that will not be making non-QRM loans. It would also eliminate a lot of buyers from the marketplace if your interest rate was 1 ½% higher. If it was necessary for safety, it would make sense, but if not then it would not make sense.

Another part of the bill is reps and warranties. This basically means that the person who has represented their mortgage as exactly what MBA would buy then has something go wrong with it; this person would be asked to re-buy it. If you look at one of the things those lenders are struggling with right now and the primary driver of some of the behavior that you see from lenders in terms of concerted underwriting guidelines is the notion of reps and warrants. When MBA sells a mortgage in the secondary market, they make reps and warrants to the investor as to certain parameters. They are always on the hook for borrower misrepresentation as well as on the hook for not following the investors’ underwriting guidelines. As investors have gotten more and more conservative and as loans have been put back to lenders, the lenders are starting to get more and more conservative in today’s environment because we are on the hook for reps and warrants. One of the parts of the law suggests that a third party do all of the reconfirming of verifications. This would probably get to the stated income loans that the industry was doing in the past. The fact that we did not have a third party with a verification of employment or depositor bank statements means it would address more a fully documented loan.

Sara went on to say that the appraisal business has not been left out of the Dodd-Frank Act. HVCC came first, and this did a fair amount of damage to the appraisal industry. Bruce wondered what changes happened with HVCC and if that has been replaced with what is intended with Dodd-Frank. Sara said one of the things that most real estate appraisers, especially those who are doing residential real estate, found was that the firewall was initially installed between the appraiser and the lender. Rather than communicating directly to the lender, the appraisers would be placed in a situation where they were directly communicating with the management system and management company. In many cases, their residential appraisers surveyed who worked with them extensively have lost 40-60% of their business. Whereas, when they had a direct relationship with the lender, they were suddenly thrust into the idea that they had to communicate with a management company. In many cases, rather than look for quality, expertise, education, things became quick and cheap. This is what so many of our people are facing now. We see people coming in from 250-400 miles away from markets where they probably had very little expertise. This has been a real problem for the Appraisal Institute, and it has changed the face of residential lending activity in a huge way.

Bruce said if he was an appraiser who had gone to sleep in 2007 and woke up in 2010, he would have been quite surprised at what had happened. You would have your income divided by multiples because you would have the assumption that you must be doing something crooked if you have a relationship, and you also now have to have a middle person taking half of your fee. This would be very frustrating, and the industry has unfortunately lost a lot of people who said they are not interested in this anymore. The statistics on renewal for our specific certification requirements has seen that in some states the renewal rate is as low as 30-40%. If you cannot continue to support your family doing what you are trained to do and what you have expertise to do, then you have to look for something else. This is what so many member of the Appraisal Institute have had to do. It is extremely difficult to re-train yourself to work in a lending environment where your expertise, education, and you qualifications really don’t mean that much to the person or persons that you are communicating with. This is unfortunate, especially for the consumer.

Bruce talked about how they had an interesting appraisal that happened the opposite way. Someone with no experience in a very unusual area where you received a lot of money for a certain located lot had a $1.3 million comp for the model-match house. They had the right location, but The Norris Group did not. They had a home for sale for about $700,000 for 90 days, which is not worth $1.3 million. When they went pending, the home was appraised for $1.3 million because it was a model-match house; someone had come in from out of the area who did not have a clue that it mattered there.

To find out more, tune in next week for I Survived Real Estate 2011, part 5. The Norris Group would like to thank their gold sponsors for the event: Adrenaline Athletics, Coldwell Banker Pioneer Real Estate, Conaway and Conaway, Delmae Properties, Elite Auctions, Inland Empire Investors Forum, Inland Valley Association of Realtors, Keller Williams of Corona, Keystone CPA, Kucan & Clark Partners, LLC, Las Brisas Escrow, Leivas Associates, Mike Cantu, Northern California Real Estate Investors Association, Northern San Diego Real Estate Investors Association, Pacific Sunrise Mortgage, Personal Real Estate Magazine, Raven Paul and Company, Realty 411 Magazine, Rick and LeaAnne Rossiter, Southwest Riverside County Board of Realtors, Starz Photography, uDirect IRA, Wilson Investment Properties, Tony Alvarez, Tri-Emerald Financial Group, and Westin South Coast Plaza. Visit isurvived2011.com for more details.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Doug Duncan, Fannie Mae’s Vice President and Chief Economist, to join real estate analyst Bruce Norris and others in an Oct. 14th panel discussion on the nation’s continuing real estate crisis

YORBA LINDA, Calif., Sept. 28, 2011 – There’s no question there are fewer qualified buyers in today’s real estate market.

When 65 percent of all home sales in places like Riverside County are either short sales or foreclosures, that means there’s only 350 potential repurchasers for every 1,000 sales.

But that’s not the only problem. According to Fannie Mae’s National Housing Survey released in August, there’s growing consumer concern about the economy.

“It seems like just the idea of buying a house has become more complicated because people are being forced to consider other factors involved including employment stability, national debt, and foreign debt defaults,” said Bruce Norris of The Norris Group.

“You’re seeing a continued financial conservatism on the part of households as they attempt to get their household balance sheets back in order by reducing debt and increasing savings, all of which create a demand-side problem for housing,” said Doug Duncan, Fannie Mae’s vice president and chief economist.

Duncan will join real estate analyst Bruce Norris of The Norris Group and other nationally known real estate experts at the Nixon Presidential Library on Oct. 14th to discuss potential solutions to the nation’s continuing real estate crisis.

The event, dubbed “I Survived Real Estate 2011,” is organized each fall by The Norris Group and features some of the most respected voices in real estate. This year’s lineup also includes:

•  *  Doug Duncan, chief economist for Fannie Mae
•  *  Eric Janszen, founder and president of iTulip, Inc.
•  *  Debra Still, chairman elect of the Mortgage Bankers Association
•  *  Sean O’Toole, president of Foreclosure Radar

Norris, who has built a following in the real estate community and with news reporters after producing consistently accurate real estate forecasts, said the panelists should provide a clearer picture of what we can expect to happen in real estate markets in California and elsewhere in the coming months in addition to identifying potential solutions to the crisis as well as opportunities for real estate professionals and investors.

In a recent interview on Norris’s weekly radio program, Duncan said housing is still a worthwhile long-term investment. “If you don’t own in the future,” he said, “the housing bill will always take the majority of your income. If you are able to buy and lock in a fixed rate, it will become less and less a percentage of your budget.”

Norris regularly interviews lenders, economists, builders and other housing experts on his weekly real estate radio talk show, which airs at 6 p.m. Saturdays on KTIE 590 AM in San Bernardino. Podcasts of Norris’s radio interviews can be accessed through his company website, www.thenorrisgroup.com.

Net proceeds from the Oct. 14th event will be donated to the Orange County affiliate of Susan G. Komen for the Cure, the world’s largest grassroots organization dedicated to finding a cure for breast cancer.

The event has more than 25 sponsors, including Kucan & Clark Partners, LLC, Las Brisas Escrow, Leivas Associates, Mike Cantu, Northern California Real Estate Investors Association, Northern San Diego Real Estate Investors Association, and Pacific Sunrise Mortgage.

For tickets and other information involving the Oct. 14th event, please visit www.isurvived2011.com. Reporters seeking advance interviews with Norris and panel participants before or after the event should contact Aaron Norris at (951) 780-5856.

Sources:
Foreclosure activity falls to 44-month low
Jobless claims hover around 400,000 for third week
Mortgage Rates for 30-Year U.S. Loans Decline to Nine-Month Low
Housing Affordability up in California with home price decline
Rates on 15-Year Fixed Lowest Ever Recorded
Home Prices Decline in Almost Three-Fourths of U.S. Metropolitan Areas
Fed to Keep Interest Rates Low until 2013
Goldman Sachs Says AIG, Fannie, Freddie Threatening to Sue Over Mortgages
Realogy calls for White House housing summit
Dow plunges after S&P downgrade
Demand for real estate rentals rises, homeownership rate drops

Today’s News Synopsis:

This week’s video gives the news of the week in the world of real estate and other big events. Bloomberg reported again today that foreclosure filings are at the lowest they have been in 4 years.  DS News reported that mortgage fraud has still remained a problem over the last five quarters despite a 2.3% decrease this year.  Barclay’s said the best locations for building new homes is Atlanta and Phoenix. 

In The News:

Housing Wire – “Fully excused second-lien mortgages spike in June” (8-12-11)

“Servicers participating in the Home Affordable Modifications Program extinguished more than 1,000 second-lien mortgages in June, according to Treasury Department data.”

DS News - “National Mortgage Fraud Remains Relatively Steady, Shifts Regionally” (8-12-11)

“On a national level, mortgage fraud risk has declined 2.3 percent over the year but has remained relatively steady for the last five quarters, according to Interthinx’s Second-Quarter Mortgage Fraud Risk Report.”

Realty Times - “Market Concerns Produce New Record Low Mortgage Rates” (8-12-11)

“Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging new all-time record lows this week.”

Inman - “Portal displays Fannie, Freddie, FHA REOs” (8-12-11)

“The U.S. Department of Housing and Urban Development has unveiled a Web-based mapping tool displaying the location of all foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) — nearly half of all “real estate owned” (REO) properties in the U.S.”

Los Angeles Times - “Consumer confidence at lowest point since 1980, report says” (8-12-11)

“Consumer confidence in August took a swan dive to its lowest level in three decades.  Even as they pushed retail sales up 0.5%, Americans were the most pessimistic they’ve been since May 1980, according to a preliminary index of sentiment created by Thomson Reuters and the University of Michigan.”

Housing Wire - “SEC ready for new whistleblowers” (8-12-11)

“The new Securities and Exchange Commission whistleblower program officially launched Friday, giving new protection and rewards to those who come forward with information.”

San Francisco Chronicle - “Foreclosure filings near a 4-year low” (8-12-11)

“U.S. foreclosure filings dropped 35 percent last month to the lowest level in almost four years as lenders and state and federal agencies increased efforts to keep delinquent borrowers in their homes, RealtyTrac Inc. said.”

Bloomberg - “Phoenix and Atlanta Will Be Best New-Home Markets in U.S., Barclays Says” (8-12-11)

“Phoenix, where foreclosures have surged and prices plummeted since the U.S. housing bubble burst, and Atlanta are the best potential markets for the sale of newly built homes, Barclays Capital said in a report today.”

DS News - “Heavy Distress Sends Las Vegas Home Prices to 15-Year Low” (8-12-11)

“Sales of foreclosed REO homes and short sales continue to dominate the Las Vegas market. These distressed sales made up nearly 70 percent of the region’s home resales in June, according to the research firm DataQuick.”

Realtor Magazine - “Weak Appraisals Hamper Home Sales, Experts Say” (8-12-11)

“Weak appraisals are “driving down the real estate market” and “borders on buffoonery,” says William Maxwell, an expert in finance and professor at Southern Methodist University’s business school, who has seen his own Dallas property fluctuate in appraised value by $60,000 in just a year.”

Looking Back:

Freddie Mac claimed the average rate for 30-year fixed loans fell to 4.44 percent during the week of August 9, 2010. RealtyTrac reported that national foreclosures increased 3.6% from the previous month. Initial unemployment insurance claims increased the week of August 9, 2010 by 2,000 to 484,000, according to the Department of Labor. Foreclosure Radar announced notices of default filings in California slipped 4.8% from June 2010, and notices of trustee sale fell 18.9%.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

NAHB reported that the U.S. Commerce Department released new numbers reporting that housing starts increased 3.5% in the month of May.  CNN reported that the number of filings for foreclosures fell for the 8th month in a row, while DSNews reported that the U.S. Conference of Mayors and Wells Fargo Home Mortgage are collaborating to help prevent foreclosures.  On another positive note, the sales and prices of homes were the same this month as in April, showing a positive trend.

In The News:

Inman – “Mortgage rates level off at 2011 lows” (6-16-11)

“Mortgage rates leveled off this week at or near their lows for the year after declining for eight consecutive weeks, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.”

RisMedia – “Monthly Housing Market Trends Point in a Positive Direction” (6-16-11)

“Home sales and prices were both nearly the same as April in the May 2011 RE/MAX National Housing Report when compared to the same time last year. ”

DSNews – “CoreLogic Launches New Property Condition Report” (6-16-11)

“California-based CoreLogic, a provider of information, analytics, and business services, now helps regulated financial institutions meet the federal Interagency Appraisal and Evaluation Guidelines for lending decisions via its new property condition report.”

NAHB - “Housing Starts Gain 3.5 Percent in May” (6-16-11)

“Nationwide housing starts rose 3.5 percent to a seasonally adjusted annual pace of 560,000 units in May, according to newly released figures from the U.S. Commerce Department. The gain partially offsets a larger decline that was registered in April.”

Inman – “California sales, prices sag in May” (6-16-11)

“Sales of existing single-family homes in California fell 5.8 percent from April to May to a seasonally adjusted annual rate of 471,480 units, according to statistics collected by the California Association of Realtors from 90 Realtor associations and multiple listing services.”

Housing Wire - “Bair floats combining mortgage servicer consent orders with AG settlement” (6-16-11)

“Federal Deposit Insurance Corp. Chairman Sheila Bair said there is a possibility the servicing standards from both the recently signed consent orders and the ongoing negotiations with the 50 state attorneys general can be combined.”

CNN Money – “Foreclosures fall for 8th straight month” (6-16-11)

“Foreclosure filings experienced their eighth straight month of declines, according to RealtyTrac.”

Housing Wire - “Jobless claims fell to 414,000 last week” (6-16-11)

“Initial jobless claims fell last week, coming in well below most analysts’ estimates and remaining higher than 400,000.  The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended June 11 decreased about 3.7% to 414,000 from 430,000 the previous week, which was revised upward by 3,000 claims.”

Los Angeles Times – “California home sales fall 13.3% in May” (6-16-11)

“Sales of homes in California plunged 13.3% in May from the same month a year ago, when tax incentives were fueling the market, according to real estate research firm DataQuick of San Diego.”

DSNews – “Freddie: 30-Year Fixed Rate Ticks Up for First Time in Nine Weeks” (6-16-11)

“Freddie Mac released its weekly survey of mortgage interest rates Thursday, which showed that the 30-year rate edged up 1 basis point while the 15-year rate dropped 1 basis point.”

DSNews – “Wells Fargo and U.S. Mayors Form Foreclosure Prevention Alliance” (6-16-11)

“The U.S. Conference of Mayors and Wells Fargo Home Mortgage have joined forces to create a national alliance focused on foreclosure prevention, property disposition, homeownership promotion, and community development.”

Looking Back:

The Commerce Department reported housing starts fell 10% from April of 2010. According to the MBA, mortgage application volume increased 17.7 percent from the prior week. Fitch Ratings Ltd. predicted that most borrowers who received lower mortgage payments under a federal government program would default within 12 months. New home sales were down 27% in May of 2010, according to a John Burns Real Estate Consulting builder survey.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Leslie Appleton-Young Vice President of C.A.R. (Full Bio)

This week Bruce is joined by Leslie Appleton-Young. She is the Vice President and Chief Economist for the California Association of Realtors; a statewide trade organization with over 165,000 members. Leslie directs the activities of the association’s member information groups, she oversees the analysis of housing markets and broker industry trends, member communications and member development activities.  She is well known as a speaker in the California real estate community.

Leslie started with CAR in 1984. At that time, California was in the middle of a bad cycle. The biggest difference between our recent downturn and downturns of the past was the change in median home prices. In the early 80s, the median home price flattened when transactions dropped over 60%. In the early 90s, the market contracted 25% and home prices did drop, but the biggest single annual decline was less than 5%. In our recent downturn, the statewide median home price dropped 59% within one year.

In earlier cycles, sellers had equity, so if the market was doing poorly, they would rely on their equity to help them through the bad times. This time around, the flood of non-discretionary sellers overwhelmed the market, and caused the sharp descent in prices.

Surveys from ThinkTank and Fannie Mae show that homeownership is still sought after. The demand for housing from first time buyers and investors is still robust. The idea of owning a home has not been too badly damaged, however, the buyer’s ability to gauge market timing has. People are too worried that prices have not bottomed, so they are waiting until prices stabilize. Leslie also thinks people now realize that buying a home is not going to make them rich quickly.

In 2006, a lot of people were buying homes because they wanted more room, nicer neighborhood, and better school districts. Leslie believes most home buyers are not buying for these reasons any more.

1 in 4 mortgages are underwater today. Leslie believes this will impact the strength of the housing market over the next couple years.

In 2005, net cash to seller was a median of $220,000. Last year it was $35,000. In the distressed sales market, the net cash to seller was around negative $143,000. This means many of those people will not have the necessary cash to buy a home in the near future. A survey showed that only 33% of sellers were planning on re-buying a home in the near future.

When we released 500,000 home sales in 2010, that means we have to manufacture 250,000 buyers that aren’t showing up out of natural causes. Leslie is very glad we have investors to help create buyers for those sales.

Approximately 23% of California home sales are bought for cash. In the luxury markets, those numbers are significantly higher. Bruce read a survey stating that 60% of Beverly Hills homebuyers use all cash in their purchase. Many of the people buying in that area are global home buying clients, and California looks very attractive and affordable to them.

Leslie believes the homebuyer tax credits were the most beneficial of the real estate programs to come from the government. The $8,000 tax credit was very effective at encouraging buyers to enter the market. It also encouraged investors to get their properties ready for potential buyers.

Leslie believes the home market will not receive much federal aid in 2011. Also, the reduction in the $729,000 loan limit will occur this year. She believes the government will go back to a $625,000 loan limit. The government’s efforts to wind-down Fannie and Freddie means financing will be more expensive. However, Fannie and Freddie are not currently expected to be taken away quickly, because the government believes that would negatively impact the economy. Because financing will become more expensive once Fannie and Freddie leave, people will be encouraged to buy sooner rather than later.

Leslie cannot imagine a scenario where interest rates will ever be lower than they are now. Bruce does not think monthly payments for housing will ever be lower. Down payment requirements are going up as well as credit score requirements. This should make people rush to buy.

In January of 2011, there was a 6.7 months supply of homes in the California market. This means that at the pace in which homes were selling during January, it would take over six months to get rid of the entire inventory. The typical average for inventory supply is 6 and 7 months, so that is actually fairly balanced. However, when you break the inventory down by price category, properties priced above 1 million have a 13.8 months supply, $750,000 to $1 million properties have a 9 month supply, $500 to $750 properties have a 7 month supply, $300 to $500 properties have a 6.5 month supply, and under $300,000 is 6.3 months supply. This is a critical piece of information for buyers and sellers.

The most expensive prices have the most discretionary sellers. The more expensive the home, and the more expensive the community, the lower number of distressed sales there will be. Many higher priced sellers also have a lot of equity in their home.

If sellers are discretionary then they are not being forced out of their home. Short sales are considered to be non-discretionary sales. That category is expected to grow considerably. Realtors are hoping lenders will be encouraged to look at short sales in a more positive light. Lenders typically get a higher price for short sales than if the sale goes through foreclosure.

The 6.7 months of inventory does not account for inventory that should be on the market but is not. We have a large number of delinquent properties that should be in foreclosure and entering the market, but are not.

Leslie’s website is www.car.org

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Top News Stories: Several sources have reported that the number of foreclosures are expected to increase in 2011.  Bloomberg expected them to rise almost 20%.  In other news, a top story is that mortgage rates declined for the second week in a row according to Freddie Mac. Corelogic reported that home prices continued to decline.  On a positive note, however, John Burns said this has not stopped consumers from wanting to purchase homes.

In The News:

Housing Wire- “Foreclosures getting more erratic out West: ForeclosureRadar” (1-13-11)

“As mortgage servicers grapple with unique foreclosure issues from state to state, the amount of filings varied just as widely in December.”

Inman - “Steady growth foreseen, but no ‘housing revival’” (1-13-11)

“A recovering economy should translate into a spring home-selling season that’s better than last year’s, according to two economic forecasts presented jointly here at the annual meeting of the National Association of Home Builders.”

Bloomberg - “U.S. Foreclosure Filings May Jump 20% in 2011 as Crisis Peaks” (1-13-11)

“The number of U.S. homes receiving a foreclosure filing will climb about 20 percent in 2011, reaching a peak for the housing crisis, as unemployment remains high and banks resume seizures after a slowdown, RealtyTrac Inc. said.”

RisMedia - “RealtyTrac Releases Year-End Foreclosure Report” (1-13-11)

“RealtyTrac, a leading online marketplace for foreclosure properties, released its Year-End 2010 U.S. Foreclosure Market Report, which shows a total of 3,825,637 foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on a record 2,871,891 U.S. properties in 2010, an increase of nearly 2% from 2009 and an increase of 23% from 2008.”

Housing Wire – “Freddie Mac mortgage rates decline for second consecutive week” (1-13-11)

“After about a month and half of increases, Freddie Mac mortgage rates declined for a second consecutive week.”

CNN Money - “Regulators: Wake up and smell the loan risks” (1-13-11)

“Disputes related to failed mortgages are ballooning amid the fallout of loan securitizations and sales made by some of the biggest banks. But, for the time being, it doesn’t look like the primary bank regulators are doing much about it.”

DS News - “Pro Teck Valuation Services Partners with Collateral Analytics” (1-13-11)

“Pro Teck Valuation Services, a Massachusetts-based national provider of residential real estate valuations, recently partnered with Collateral Analytics, a developerof real estate analytic products and tools headquartered in Hawaii, to offer a suite of real estate analytic products to Pro Teck customers.”

Realtor - “More Borrowers Face Expiring Lock-in Rates “ (1-13-11)

“Many borrowers opt to lock in mortgage rates when buying a home or refinancing to help protect themselves against any sudden increases in interest rates while the loan is being processed.”

The O.C. Register - “Calif. home prices decline again” (1-13-11)

“Whatever momentum the California housing market may have had early last year seems to have evaporated. California home prices were falling at a 2.03 percent annual rate in November, the second consecutive year-over-year drop, according to CoreLogic’s math.”

Housing Wire - “John Burns: Despite the housing struggle, people still want to buy” (1-13-11)

“While the overall economy is starting to head forward through recovery, housing continues to stumble behind, according to a recent report card from John Burns Real Estate.”

Looking Back:

CBIA reported that condominium sales were 39 percent higher from 2009. The MBA’s weekly survey showed that mortgage loan application volume increased by 14.3 percent from the prior week. Jumbo residential mortgage-backed securities increased to 9.2 percent from December 2008 to December 2009. All but two of the Federal Reserve districts reported increased activity or improved conditions.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

Tony Alvarez Veteran Investor (Full Bio) Mike Cantu Veteran Investor (Full Bio) Rick Solis Veteran Investor, Appraiser (Full Bio)

This week Bruce is joined by Mike Cantu, Rick Solis and Tony Alvarez. Mike Cantu has been an investor in the Inland Empire for over 25 years. He has been a builder, rehabber and property manager. Rick Solis appraises all of The Norris Group’s loans, and he is also an investor. Tony Alvarez has been an appraiser, residential and commercial property buyer and author.

Rick meets with many of tenants in his current buying market. When you talk with tenants, and ask them what they do and don’t like about a property, it helps one understand what they are looking for. Rick will not buy any property without two bathrooms. A property without a garage is practically worthless. Small bedrooms can be deal killers as well.

For Rick’s typical 3 bedroom, 2 bathroom, 1,100 sq feet house, he typically rents for $1,000 per month. If he can squeeze an extra bedroom into the house, then he can raise rents by $100. Rick’s rent rates are $50 less than most landlords.

All of Rick’s houses are upgraded with granite counters and wood laminate floors. Those 2 items seem to attract a lot of quality tenants. Most of Rick’s desert properties do not have yards. Tony calls that “desert landscaping.”

Mike’s rental property criteria is very different from Rick’s. Mike is less concerned with house structure, and more concerned with lot location. Mike has many 2 bedroom, 1 bath houses, and some of them have served as his best rentals. Houses wear down, but dirt goes up in value. Mike is very concerned with buying houses near good school districts. People will overlook the size of their house if they can get a home in a good school district. Mike’s average rent for his 2 bedroom, 1 bath houses is $1,095. He does not lose many tenants.

Tony will not buy condos in his market. The condos in his market are too condensed, and the percentage of rentals to owner occupied properties is not good. Some time ago, Tony was able to buy 2 bedroom, 2 bath condos for $15,000. If prices go down to that level, then he will probably start buying condos again. Tony likes to buy 2 bedroom, 1 bath houses and 3 bedroom, 1 houses.

Tony buys a combination of properties. They range from lower class to upper class properties. He finds that mixing up his inventory allows him to receive a variety of benefits. The last time Tony began investing, 90% of his renters were Section 8. Now approximately 50% of his renters are Section 8.

Rick tries to avoid Section 8, because he loses a couple months of rent waiting for inspectors to come out. He has also found that Section 8 tenants are not quality tenants. Rick says he is not opposed to Section 8 tenants if they can quickly move into the property and pay rent.

Tony believes that Rick’s problems with Section 8 are due to the difference in his market. Rick’s Section 8 tenants were from San Bernardino County. Tony has found that LA County’s Section 8 is more efficient. Also, the extent to which you know the Section 8 workers makes a difference in how quickly they service you.

Mike has no Section 8 tenants. However, he is not opposed to renting to Section 8 tenants. In the past, when Mike had Section 8 tenants, he lost all of them. Almost all of them had a problem with breaking things and not fixing them. Mike will not keep tenants who will not pay for the items they destroy.

After Mike receives an application from a potential tenant, he will give a surprise visit to their house. He checks to see if they keep their properties in good shape. If he is not allowed to come into their current house, then he will reject the potential tenant.

Back in the 80s, Tony developed a good understanding of the rhetoric for how bankers and politicians communicate. You have to carefully analyze what they say to understand what they really mean. Tony believes that they want to release the inventory, but they have a control issue over how the inventory will be released. Unfortunately, bankers are not as motivated to release the inventory now, because they are receiving large sums of money from the government. Tony believes that much of the inventory will be released between now and 2012, because that is an election year. They will want to get the pain out of our memories before the next election. Americans do tend to have short term memories for economic pains, but Tony believes the damage done by this down turn was too deep.

There was a bill that was recently rejected. This bill would have squashed most of the foreclosure cases we are having right now. There probably were some foreclosures where the paper work wasn’t completely done, but if you went back through history and looked at the paper work for every foreclosure, you would probably find just as many foreclosure problems. The bottom line is that if you aren’t making your payments, then you should be foreclosed on.

Mike has noticed a difference in the kind of inventory being released during the second half of this year. They are letting go of strange, derelict inventory. Typically, when Mike looks at newly released inventory, 8 out of 10 will be worth bidding on. Recently, when Mike analyzed the new inventory for his market, only 5 of the 18 were worth bidding on.

Rick doesn’t pay much attention to what people are saying about what is coming to the market. There are too many different opinions for him to take many of them seriously. He would rather just focus on what trends are currently visible in the market.

Tony recently talked to an REO agent who was very worried by some recent news released by Fannie Mae. The news said that Fannie Mae was hiring new agents, but they had to hire a racially diverse group of agents. Also, the news said that the experienced agents would be required to train the new REO agents, or lose their job.

There is a difference between a real REO agent and an imposter. The imposters are bulk buying companies. Some of the imposter companies are named Atlantic and Pacific. If you do research on their listings, they are all owned by one holding company. These guys are buying bulk and then trying to sell at high prices. Also, many of them are buying non-performing notes, not houses. That is not a true REO agent, and the information you will get from them is not accurate.

If you are buying $150 million of notes, that inventory will not hit the market in the typical way. It won’t be an REO that will go to 20 different agents, it will just go to the one company.

As long as Mike is in real estate, he will be a student of it. He goes to 8 to 12 seminars every year. If you work hard on your job, you will get paid money, but if you work hard on yourself, you will earn a fortune. A lot of bubble riders who are still in trouble, and he wonders how much of their failure is due to their lack of education. Mike believes that his success is due to his education. He likes to have a variety of education. He doesn’t want to be limited in any aspect of his education. Mike’s favorite trainer was Jack Miller, who recently died. Bruce is in Mike’s top 4 favorite trainers alongside John Schaub and Peter Fortunato.

Tony does not feel he has taken much education. He has taken some of Mike’s seminars. He got involved in real estate because he listened to a late night infomercial. Tony’s career was all about learning through his mistakes until he met Bruce. Before Tony met Bruce, Tony was only buying REO properties. Bruce taught Tony to look into owner sellers, and how to time markets. Bruce told Tony to hold on to his properties when Tony was about to sell. When Bruce told Tony to sell, Bruce said, “Would you rather sell to a euphoric market or an uninterested market?” Tony earned $3 million from the advice Bruce gave him, so Bruce is the person he listens to the most.

Rick has been reading books and going to seminars since he was a teenager. One of the teachers he listened to when he was younger was Dave Deldado. In the last few years, Rick has stopped going to all other seminars other than Bruce’s. Bruce is in Rick’s market and he respects Bruce’s market timing. Before hearing Bruce’s seminars, Rick was only buying 1 or 2 properties per year, but now he tries to buy 1 or 2 every month.

Thank you Mike Cantu, Rick Solis and Tony Alvarez for being a part of our 200^th show.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.