Time to use Public funds on Startups, Not Bail-Outs!

Dear Senator,

As a startup owner, I am writing to express our extreme distaste about the FREE handout of money to failing business such as AIG, GM and Chrysler while companies like ours are starving for capital. If we were offered such convenient access to capital, we would be hiring staff to grow our business and the economy!

We are currently working with banks with liquidation of their non-performing mortgages and foreclosed properties. We need capital to open 3 offices in Orange County, Sacramento and Modesto. However, the tight restrictions on credit are preventing us from obtaining financing. As a member of the Santa Clara County's Affordable Housing, we can use the financing to purchase these foreclosed properties for use by our non-profit housing institutions who offer much needed affordable housing solutions in Silicon Valley.

It's time to focus precious public dollars on startups and not bailouts !! There is no reason why US can NOT have a thriving Auto Industry with ONE healthy, re-organized auto maker vs 3 crippled one's on life support! We urge you to decline ANY further request for additional funding from the BIG 3 since they were the guys who fought the innovation and fuel economy standards. As tax-payers we are appalled that you are risking our kids future; so Auto Executive and Wall Street t THUGS can give themselves bounces!

The findings of the Congressional Oversight Committee chaired by Elizabeth Warren, offers damming evidence of how irresponsible Congress was in allocating our tax dollars. Without attaching ANY condition to the TARP money given to big corporate tycoon; you have put our kids and grand kids future into monumental risk. Unlike US Congress, UK government has attached very strong conditions to their bail-out funds. UK banks and companies who received bail-out funds, will be audited after a year to make certain that the funds were used to fund small companies as opposed to TRAP dollars who are being used to purchase corporate jets!

We will remember your conduct and your vote when it comes time to elections if Congress continue to waste tax payer dollars un-checked. We are looking forward to seeing much tougher stance from Congress on ANY future spending of public's money.

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What do you think!? If you agree, please write to your representatives as well.

Tricks to get AWESOME pricing on REOs! Post Contract Price Reductions!!

We have been noticing an interesting strategy which some buyers are using is to contract our REO property at huge discounts to the list price once they have it under contract!! These buyers are ordering inspections which in 95% of cases reveals more repair requirements. These buyer then request additional dollars towards these repairs and we are seeing complete compliance from our Asset Manager since they don't want to lose the buyer!! This results in huge deals.

Here's an an example that we saw work this past month!

1) Write an offer at $310,000 for a property listed for $359,900.
2) Get it coutner and contract at $325,000.
3) Order inspection and come up with $30,000 of repairs (not that hard to do with REO properties).
4) Amend offer price to $295,000 or request credit for repairs.
5) Close.

That more than $64,900 discount to the list price and goes a long way to cover debt service. With rents on the rise, this is a good strategy to acquire rental properties using REOs.

Do you think you can use such a stragey? Let us konw what you think!?