Holy Cow, the Government, the economy and the rest of the media have most of us sheeeeeple gripped in fear. We are being quoted unemployment statistics, global warming warnings for agriculture, rising inflation prices, property values plummeting, financial banking disasters, new prohibitive legislation and on and on it goes.

Before you jump off the wharf or start looking for pills, it may pay to actually see what we are worrying about. For most of us that is losing our security. So what does this mean?

Let’s face it, your house, your car, furniture and things in your garage; it’s all crap! If you lost all this stuff today, it would not take long for you to get it back again, even better, bigger and brighter. You did it once, you can do it again.

Stop holding on to it so tightly; as if your life depends on it. It doesn’t. Even losing your job or business is not fatal.  Admittedly all of these things have a nuisance factor to them, but it will not be the end of everything, and you will cope.

What is important is what you have between your ears. Your knowledge is your best weapon. Even if you lost everything, you will never lose that. When you get scared, fall back on what you know. Look at what you have achieved so far. How did you get here? Did you do it by allowing others to get you into a state of paralytic fear? Of course not. You are resourceful and whatever happens, you will cope beautifully. You have been successful so far at achieving what you have. Don’t underestimate your skills at coping with what you need to, IF that should ever be necessary.

Should your mind start to wander into worrying, bring it back to dealing with what IS, not what IF. Just look at what is REAL and in front of you right now and deal with that only.

I am going to say it again, knowledge is your best weapon and the more you have of it the better. Don’t let fear stop you learning about new skills, new ideas, new money concepts.

If you do want to focus on something, make sure that you focus on ways of making more income, not cutting costs. Expansion is more productive than contraction; it creates an energy of abundance. Stability comes from income. Consistent passive income is the ultimate for peace of mind. Work out ways that your knowledge can provide you with this.

Concentrate your time and efforts on learning new ways, perhaps even branch out into new industries. Keep in mind that basic human commodities will always be most popular. Shelter, food and clothing are the top three. These are exciting times and there are so many things and ways to learn to make more income.

Trust in yourself and don’t let others get into your head with all their doom and gloom messages. Once you let them get you on that path you will spiral down and not get off the couch. The world is not going to end and only YOUR world is your responsibility.
Focus only on what is important.

Learn More, Earn More!

Thanks to those who responded to my newsletter last week. It is always encouraging to get feedback. Also thanks for your kind concern, but NO Rineke and I have not gone through any mortgagee sales process.

Well, we are getting into what is usually the slow period for real estate and the whole country seems to close for a few weeks. Don’t let that stop you! Many lawyers are back on the 10th January.

Last year I negotiated a great deal on Christmas Eve. Not sure how that happened, but I had my shopping done and so did the others involved, so we all chatted and got the paper work sorted. The young couple wanted prior access to do some outside work and by the time the lawyers were back, things were well and truly humming along.

In fact the holidays are a good time to be responding to motivated vendors in the market. People are not rushing off to work and have time to sit and chat about their needs and are more agreeable to alternatives.

NZ is very much orientated to Cash sales. Often that is not the only or best solution for the vendors. I keep hearing myself say “listen to the vendor.” What are they trying to do? Some situations to look for;

• Are the vendors trying to cash up their equity quickly for another venture?
• Or is the home so highly mortgaged that there is no equity and they are just looking for debt relief.
• Is the owner a tired landlord who has had his rental property trashed yet again? He just wants out but has NO mortgage.
• Is there an urgent deadline for the sale? Mortgagee auction pending?
• Are the owners moving overseas? What will happen if the house is not sold in time?
•  Estate sale and the kids just don’t want or can’t deal with the house or the stuff in it.
• The property needs work but the vendors don’t have any funds.

Many of these situations can be solved with very different solutions. It is not a matter of one size fits all. When you learn the different strategies to help vendors, you can present them with suitable alternatives.  In fact some vendors can be very creative once they get the idea that selling for cash is often not the only or even the best way for them.

There are people out there who need help right now and if you know what to do for them, you can make $$$ in any market. We are working on upgrading our courses for next year. If you want to jump start your property career, get the home study kits.

There are more and more Mortgagee (foreclosures) sales than ever right now and there are more coming. The recession has seen more and more people struggle to keep their home. Mortgagee sales used to be rare, but now it is more common and there is not as much social stigma associated with this unfortunate business. Just a tit-bit of advice for anyone going through this process.

First of all don’t play tricks with the bank if you can help it. Most of them also are not having an easy time right now and are being blamed for many of the current problems in our society. Bank staff have to tick boxes and they will tick the best ones for them to keep their job.

Don’t make assumptions about deadlines. Sometimes the banks operate on reinstating the previous deadline rather than creating a new one. So even if a payment has been made they will still work on the deadline that was in place before the payment rather than start counting again from the date of the last payment and the penalties continue. It is not unusual for one branch of the bank to tell you one thing and then you find out that there was something else you were not aware of, that they are charging extra fees for.

There is no such thing as customer loyalty anymore. Gone are the days of your personal doctor, dentist and banker.  It doesn’t matter, how long you have been a customer or what your history with them shows, they don’t care anymore. Probably, because nowadays bank personnel change so frequently, that it is likely that the current staff won’t know you.

My lawyer says that when a bank has employed a Real Estate Agency to organise the mortgagee auction then the owner still has the right to try to sell privately. He says that even when the hammer has gone down at a set price to the highest bidder, that the owner can still sell to someone else.

Apparently crunch time is settlement (the day the money actually changes hands and the title gets transferred to the new owner). The race is on and it becomes a matter of first-in, first-served. If the owner has a private buyer who can settle BEFORE the agent’s auction client, then the owner’s buyer will be the winner as the new title holder.

So it is worth trying to sell privately and beating the bank’s mortgagee auction even if the bank is already using a real estate agent to sell for them. Never give up!

Well things out in the property market are sure a lot different from 2006-2007. Back then the banks would throw a mortgage at anything that moved. Prices of houses were far higher than GV and everybody was thinking they would all go even higher and the property bubble would never burst. Hmmmmm???? Was a correction needed? Who knows?

Well those days are gone and things are different now. Bank lending criteria has done a complete 180 degrees and is so tight that neither investors nor first home buyers are finding it easy. Prices around NZ have fallen mostly below GV. Many vendors can’t sell because their property is ‘upside-down’ (market prices are lower than the debt owing). Banks are charging break fees for any mortgage being discharged. Previou sly those fees were only charged if the interest rate being broken was lower than the floating rate.

Still, all these new market conditions don’t actually stop people from dying, transferring, divorcing etc. No matter what the media says, there are people out there with problems that need to be solved right now.

Good thing then, that there are strategies available to help vendors who can’t sell and purchasers who can’t borrow. There are investors who can offer solutions and also making some $$$. Are you one of them? Do you know what to do for them? Are you making money in this market? If not, you could be. You just need knowledge;

- no cash

- no mortgage

- no credit

This weekend is your last chance for this year to come and learn these strategies. We will be covering all that you need to know to make money in this market. You will go home with an A-Z manual and be able to make $$$ within weeks, like two of the students from the course in last September, who made $20K and $11K. find out more…

• 27 & 28 Nov - Auck. Attend our next Sandwich Lease and Trading workshop.
  find out more…
• Buy the Home Study Kit (same price as live weekend)
  Find out more….
• Do the Modules course on line.
  Find out more…

Well we promised you last week a testimonial from a student who did the Global Business Ideas course only 6 weeks ago. Just to prove that the strategies taught are working in this market. So don’t be fooled by the media or negative people. You can make money and be successful if you have the best knowledge for the strategies that are useful right now.

Here is proof from someone who is new to property and knew very little until she did the course. The numbers maybe a little low but that is just fine for a first time.
……………
“I did GBI “no money down” course 6 weeks ago and I have made $20k in 3 weeks.
I put out over 50 we buy houses signs in an Auckland sub urb; I got 5 phone calls….. went to view all the properties and decided to take on one house. It was a 3 bedroom 1 bath plus a sleep out. The owners were facing a forced sale. I advertised the house on trade me and on my third open home a family made an offer. With some negotiation we all agreed on a price. I made 20k, the family bought the house of their dreams and the owners didn’t have to go to a forced sale. Everyone wins!!!

If you follow the advice and process in the course you too can have these results. It’s not a walk in the park, there is some hard work involved but if I worked out my hourly rate it would be $1176…… not bad at all. I also work full time. This is my first ever property deal, but this is just the start.”

Cheers Sara

Last Course For the Year 27-28 Nov FIND OUT MORE HERE

Last Chance
If you too want to make this sort of money or more, join us for the last course this year on 27/28 Nov at the Auckland Airport Holiday Inn. Come and learn from the Pioneers of these strategies the girls who started it all in NZ and have the most tried and tested paperwork in NZ. Buying contracts from the internet or from overseas is risky. Paper work is the backbone of successful property deals. Don’t skimp here.

Perhaps you are sitting on the fence and would like to discuss whether this course is for you, send an email with your contact phone number and best time to call. We can answer your queries about the course (only the course).

Don’t miss out, get into gear today. Your name could be on many $$$$ in the market, if you get off the couch and jump to it! This is your last chance! Register now!
< br />To success
Dorien, Rineke and  the GBI team.

Last Course For the Year 27-28 Nov FIND OUT MORE HERE

From Dean Letfus

In 2005 I was invited to attend a training course with a woman I had never heard of.  I reluctantly attended, arriving late on the first day expecting to be bored stupid. What I learned over the next 2 days forever changed my investing. I literally went out and bought over a dozen houses the following week using the incredible strategies I had just learned.

I unreservedly recommend this course as the best property education in the country!

So don’t miss this chance to be blown away yourself.

Dean

Last Trading and Sandwich Lease course for the year 27 – 28 Nov, Auckland. - FIND OUT MORE HERE

You will leave with an A-Z manual that you will use over and over again. In fact one of our earlier students asked us for a new manual as his previous one was falling apart from constant use.

• 27 & 28 Nov - Auck. Attend our next Sandwich Lease and Trading workshop.
  find out more…
• Buy the Home Study Kit (same price as live weekend)
  Find out more….
• Do the Modules course on line.
  Find out more…

New Student Makes $20,000 This Week!

Who says you can’t make money in this market. One of our new students who did our course only six weeks ago, made $20,000 a few days ago.

When I say new student, I mean brand new student. She was not yet familiar with completing Sale and Purchase agreements. She has promised to write a testimonial when she gets back from Aussie tomorrow. So watch this space!

Another return student on the same course made $11,000 last week.

Folks, don’t be fooled by what the media tells you. There is money to be made in ANY market. You just need to have the right tools in your property tool box.

Right now is a good time to help sellers in a crazy market and buyers who are finding it difficult to borrow.  You can do this and make many $$$$ for yourself. If you need some cash input into your life or regular cashflow, then you need to be out there amongst it. Sitting on the couch blaming the government isn’t going to fill the coffers.

Come and learn from the NZ pioneers of these strategies, the two girls who started it all and have the most tried and tested contracts for New Zealand. NO Money Down simple concepts. No credit, no bank loans, no fuss! New students have just proved that by making $20,000 and $11,000. You can too, with

- Assignments (Good for quick small chunks of cash)
- Double Settlements (Good for quick LARGE chunks of cash)
- Cash Back Stop (Dorien’s invention for tricky situations)
- Lease Options (Good for moving difficult houses you already own)
- Sandwich Lease Options (Excellent for slow selling properties)
- and much more

All of these strategies are working in this market and you need to be able to offer s ellers and buyers these ideas with confidence and good paper work.

Last Trading and Sandwich Lease course for the year 27 – 28 Nov, Auckland. - FIND OUT MORE HERE

You will leave with an A-Z manual that you will use over and over again. In fact one of our earlier students asked us for a new manual as his previous one was falling apart from constant use.

• 27 & 28 Nov - Auck. Attend our next Sandwich Lease and Trading workshop.
  find out more…
• Buy the Home Study Kit (same price as live weekend)
  Find out more….
• Do the Modules course on line.
  Find out more…

Last chance for the Sandwich Lease and Trading weekend. Don’t miss out. 27/28 Nov in Auckland.
After this weekend you will know how to make money straight away in this market with no money down strategies.

- Assignments
- Double Settlement
- Cash Backstops
- Lease Options
- Sandwich Leases
- and much more.

If you are going to be a full time property investor you must be able to make money in ANY market. No matter what the media is saying there are people out there who need you to help them. To do that, you need the right tools in your property toolbox. There are $$$ to be made with simple strategies.

Christmas Seasons have traditionally always been slow and a great time to do Sandwich Lease Options. Please note I said Sandwich Lease not just Lease Options. The two strategies are quite different. Lease Options involve your ownership, banks, mortgages etc. Sandwich Leases don’t. You can do these without needing to own the house, without qualifying for a loan. No need for cash or good credit.

Basically you are borrowing the house from the seller and lending it to the purchaser.
You the investor are the meat in the Sandwich, the middle person making cash flow for overseeing both the vendor’s asset and the tenant buyer’s great opportunity.
The purchasers will be excellent tenants as they will eventually own the property and so are not likely to trash it. In fact most of them work very hard on the property and fix-ups are very desirable.

With the liberal banking of 2006-2007 when banks were lending at 95-100% and the current downturn in this market there is no better time for Sandwich Leases. They are excellent for properties which are up-side down (when the market will pay less than what is owing).

The sellers are not waiting for their equity from upside down properties, they are just looking for debt relief; in fact some are pleased just to be able to ride out their huge bank break fees.

With the bank tightening up their lending criteria, purchasers are also struggling and now need a much bigger deposit. Sandwich leases allow them to work on the property and create their deposit as well as save it.

There are so many people crying out for this right now and there is lots of money to be made for the savvy investor who can provide solutions for them.

Believe me, in this economy you need to know how to do these. There are opportunities everywhere. If you don’t know how to, no problems, you can learn.
Dorien and Rineke Forster are the pioneers of Options, Sandwich Lease Options and other trading strategies in New Zealand. They brought the systems to NZ and therefore have the most tried and tested contracts available in this country. They have taught most of the NZ teachers using these strategies, Dean Letfus, Grant Clifton, Shannon Tawhiti, Jay Bennett, Robyn and Derrick Masters, Sue Laurie, Roger Hardie and many more.

It is important to get the best paper work for the country you wish to operate in. There are contracts offered all over the internet, mostly available from USA or Australia. Beware of using these in NZ. Good paper work is the backbone of good property deals. Many investors who have tried cheap contracts have found out the hard way that paper work is not an area you want to skimp on.

Also you need to know how to use them and for that you need some guidance. Who better than the two ladies who introduced the concept to NZ and pioneered the best contracts? If you need income, don’t miss out on the last opportunity this year to learn about these lucrative cashflow strategies from the girls who started it all.

27/28 Nov is the last opportunity for this year to join GBI in a live weekend seminar in Auckland.

• 27 & 28 Nov - Auck. Attend our next Sandwich Lease and Trading workshop.
  find out more…
• Buy the Home Study Kit (same price as live weekend)
  Find out more….
• Do the Modules course on line.
  Find out more…

About 100 years ago we didn’t care what the GV (Government Valuation) was. Nobody was interested, nobody even asked. We just went with whatever the market would cope with.

Not so in this market. Generally throughout most of NZ buyers start with the GV and then go down. The percentage below GV depends on each local area.

This is even worse for properties being sold which are upside down. Market won’t pay for the amount owing. Typical scenario, bought in 2006-2007 on overinflated prices at high LVR 95-100% gearing. Now the market has dropped, greedy banks are charging an arm and a leg for whatever they can, mostly break fees, then lawyers, agents etc.

So how do we get GV or above?

In any market a registered valuation will always trump a GV. I kn ow it costs $500-$600 and you are saying that is a lot of money if it is not absolutely necessary. I agree, I agree. But if you are trying to get top dollar it will certainly be worth the investment.

I am not saying the price will match the registered valuation.. Buyers will still bargain down. But a registered valuation will help and it could be worth the extra cost.

It is also a great marketing tool for selling a property. The buyers usually need to get the Registered Valuation, but if it is supplied already that is one step out of their system and also less costs. It may just persuade them to take your property over the many others available. You will need to get the valuer to get it re-addressed to their bank if the sale goes ahead, but that is no biggie.

Another reason to get a Registered Valuation done is for a Sandwich Lease Option. The price of the property needs to be established at the time the contracts are signed. At this stage i t is a good idea to get a third party professional report done so that in future you cannot get accused of anything. Your reputation is all you have in this game and getting accused of price inflation is not the best for future business.

Sandwich leases are a great tool in this market. We are the pioneers of Options, Leases, and Sandwich Lease strategies in NZ. Many investors have done very well, in fact some of them are teaching it as well.

If you don’t know how to these no money down strategies yet, we have three ways you can learn.

1. 27 & 28 Nov – Auck. Attend our next Sandwich Lease and Trading workshop.
   find out more…
2. Buy the Home Study Kit (same price as live weekend)
   Find out more….
3. Do the Modules course on line.
   Find out more…

We are just helping a young couple who live in Porirua and both work in Mirimar. If you know Wellington, that is a loooonnnng way to travel twice a day.  They want to move closer to their work to reduce time and diesel costs for his large truck.

They have a dear little house they bought in 2007 on 100% finance, but now they are keen to sell. After our initial chat, I encouraged them to confirm with the bank what charges were involved.

Surprise, surprise? The break fees are $9000 on a house with a GV of $220K. Holy Cow, that is close to 5%. Not unusual these days.  The fixed term is due to come off in Feb 2012 that is 15 months, approx $150 pw. A lot of $$$ for a young couple with two little ones.

So what to do?

1. Stay in the house for another 15 months.
   Result -Lot of wasted time and extra costs in travelling.
2. Rent out the house.
   Result -They are concerned about the house getting neglected.
3. Sell for cash.
   Result -Possibly low cash offer ($200K) and pay break fees ($9K) = net $191K.
4. Offer the house Rent-to-Buy with settlement not before Feb 2012
   Result -No break fees. Better sale price (GV $220K) Rent-to-Buy purchasers would be living in the house with a view of buying it and will take much better care of it. This option is likely to give the sellers $21k more than a cash sale, over the next 15 months, i.e. $350 per week. Close to one wage.

Well, what do you think?

Right now there are so many couples in this situation. This is by no means an isolated case. There are people crying out every where for help. The banks are now charging break fees for breaking any fixed mortgage. They used to only charge break fees if the interest rate being discharged was higher then the current rate. But forget that. Now they have their hands in your pockets for any mortgage, no matter what the interest rates are.

The worst case I have heard of is a lady who called me from Cambridge. Her break fees were $90, 000. That would nearly buy half a house in most areas. She couldn’t afford the payments on the house, but if she sold she would be left with a huge debt and no way of repaying it.

If you are dealing with sellers, make them check their circumstances before you get into negotiations. You will be surprised how many of them only know what the outstanding balance of their mortgage is and have no idea about the rest of the charges or consequences. After that consider many possibilities including doing a Sandwich Lease for them.

This is a No-Money-Down strategy for you as the investor. You will not need any cash, credit or bank funding. It is pure cashflow for you.  If you don’t know how to do a Sandwich Lease, we have three options for you.

1. Attend our next Sandwich Lease and Trading workshop. 27 & 28 Nov - Auck.
   find out more…
2. Buy the Home Study Kit (same price as live weekend)
   Find out more….
3. Do the Modules course on line.
   Find out more…

We have a rent-to-buy on offer at the moment. It is a house we have let for about 8 years and it is tired. We could do it up again ourselves but feel it is a good opportunity for some tenant/buyers to do the work.

There are all sorts of people clambering over it and right now many of those in this economy have NO deposit. I am amazed at how creative people are when it comes to solutions for dealing with NO money. I love the line “Well, I have bought a Lotto ticket this week.”

One of the punters is a grounds person / rubbish removal contractor with trucks etc. He seems the best person for the property as it has large grounds. He is offering to do the work in lieu of the deposit.

However, the final outcome will be that he has NOT put any of his OWN money in the deal and has nothing to lose. The banks call this hurt money and we call it commitment funds. We are not actually looking for money, we are looking for their commitment to stay and look after the property. Unlike the banking industry, we don’t care where the money comes from, credit cards, Aunty, advance from the boss. Who knows, who cares? As long as they think it is a lot of money to lose.

When you are trying to figure out how much the amount needs to be, it is more important to make the figure big enough for them to be emotionally tied to the property rather than assess the dollar figure.

In low socio economic areas $3000 may be considered to be a lot of money, whereas in higher areas that would be a joke. A good guide is somewhere between 3-5% of the CV or purchase price.

Gone are the days when we had to save up for something we wanted. By the time we got the thing we were so proud and it was so precious, that we really appreciated it and looked after it.

I do wonder when I see ads offering goods with no payments for the next three years. It would be interesting to see the success statistics for that system. The easier it is to get it, the less appreciation or commitment towards it. That includes Rent-to-Buy homes.

There is in the worst of fortune the best of chances for a happy change. -Euripides

I know it is not 2007 anymore and in this economy there is so much doom and gloom. But don’t forget that no matter what is happening or being said, people will always still take care of their basic needs, food, clothing and shelter.

Whether you are active in property at the moment or not, don’t get discouraged everybody needs shelter.