REO (also known as real estate owned, bank owned real estate, lender owned properties as a result of foreclosures) investments is where many investors and groups hedge their potential to purchase properties at a discounted price and capitalize on “higher than industry standard” returns. Individuals, pooled groups of investors and hedge funds are beginning to realize that without direct connections with established inner-banking relations, their abilities to truly maximize on REO product usually is lost in a juxtaposition of half-truths and meandering promises.

Being involved in the REO industry for quite some time, we hear, on a daily basis, the frustration in the voices of brokers as well as clients who have been sitting, continually stirring a pot which has nothing inside of it. Recently, it has become our job to be more of an educator to these clients, investors and brokers. The truth of the matter is that while we provide many of our clients with REO packages, for the most part, those looking for $100M dollar packages to a billion dollars, are usually disillusioned. It is important to understand how the REO marketplace really works.

Here is some reality:

The total expected sub-prime related losses through 2009 are about $500B. The majority of that is by way of write downs, discounted sales of whole loan pools and securities, legal and servicing, foreclosure and workout costs, holding costs, auction fees, and Wall Street brokerage fees and on and on. A small fraction of those losses are actual REO’s while even a smaller fraction is related to bulk REO sales at major fire sale prices.

This was the bulk of the sub-prime related losses through January of 2008:

MAIN SUB-PRIME LOSSES SO FAR:

Merrill Lynch: $22.1B
Citigroup: $18B
UBS: $13.5B
Morgan Stanley $9.4B
HSBC: $3.4B
Bear Stearns: $3.2B
Deutsche Bank: $3.2B
Bank of America: $3B
Barclays: $2.6B
Royal Bank of Scotland: $2.6B
Freddie Mac: $2B
JP Morgan Chase: $3.2B
Credit Suisse: $1B
Wachovia: $1.1B
IKB: $2.6B
Paribas: $197M.
Source: Company Reports.

So, this equates to a total of about $280B sub-prime “related losses” of which heavily discounted bulk REO’s would account for 6% (at best case scenario) through January, 2008. Deutsche is JUST NOW putting $40B out to “bid” and NOT to bozo broker chains, but to Blackrock and similar firms. Citi is JUST NOW putting $12B out to “bid.” The MAJORITY of those are loan pools and mortgage related securities, NOT bulk REOs.

So, when you hear of all these “phantom” REO pools that are out there that investors are directed to at 33% of market value, we caution you to be more pessimistic than optimistic. We are not saying that there are not smaller pools that are being sold, just not in the large volume or price points that so many believe are available…

Now, for the good news out of this:

While there appears to be a strong “attraction” to REO’s as well as the builder closeout that are being offered out there, many buyers who were purchasing bulk closeouts as well as REO’s are now more interested in what is referred to as High-Yield Private Investment Programs. Here are some of the reasons certain individuals have converted over to the lucrative world of HYPIP’s:

1. The returns generated are astronomical when comparing REO’s and builder closeouts to private investment. Imagine buying a bulk builder closeout purchase for 50 cents on the dollar. First of all, these are few and far between currently in the marketplace, though they do exist. After the cost of money, the rehab work needed on any of the properties, the price structure for liquidating those homes in a timely fashion and all the other added holding costs of purchasing that portfolio, a Buyer is hard pressed to earn a 30% return total.

2. The ability to link up correctly with someone who really, truly has the sources to supply those bulk closeouts from Sellers and banks is next to impossible for most “brokers”. Builders typically go direct to their sources already in the Matrix or those lucky few who have the relations already established with those builders. There are no more than roughly a couple dozen verified and legitimate groups out there (that we know of) who know how to close these transactions, understand the dynamics behind them and know how the system works from fruition to completion.

3. Builder closeouts as well as REO’s do not stand a leg against Private Investments. Become an REO investor for a minute. Would you rather realize a return of 20% annually with an immense amount of due diligence, implementation, eradication and hassle of a bulk closeout/REO buy; or, would you prefer a return that guarantees a monthly 5 to 13% return that’s on auto pilot once engaged?

Your investment is secure, never at risk and never taken out of your control.

This is what is referred to as the High-yield Private Investment Program. Many investors are looking for these types of programs. There is a Fraternity of Opportunity and it would behoove you to start looking for sources that are aware of these programs and offerings. We are in the education business and if you require a more detailed educational synopsis on the workings of these platforms, www.investorearth.com can supply you with those materials. Feel free to contact us at info@investorearth.com.

To your investing success.

InvestorEarth provides educational information to investors wanting to buy REOs, Medium Term Notes (MTNs), Bank Guarantees (BGs) and Collateralized Mortgage Obligations (CMOs) and High Yield Alternative Investments. Visit http://www.InvestorEarth.com for more information.

The American Dream is different for every person. In general it’s something similar to - Money, A Beautiful Home, and Perfect Relationships. Today, our topic is Money. We will discuss getting it, and what do with it in order to increase your savings and eventual wealth.

In order to increase your savings you must first have an income. My first suggestion is to do something you enjoy. And, at the very least, do what is legally expedient while seeking something you will enjoy.

Second, set aside at least 10 percent of what you earn and put it in a savings account; preferably one not connected by overdraft to your checking account. Banks push overdraft protection and this has its merits. However, the idea is to organize and keep track of your money so that each dollar-to-the-penny is accounted for. This way - You are your own overdraft protection.

Your 10 percent savings is key. No, it’s crucial. This is the money you will eventually use to invest and increase your wealth. Without this, you will most likely continue to survive pay check to pay check rather than live in the comfort of wealth as I believe we are all intended to do.

After you save 10 percent of your income, that leaves you 90 percent to live on, right? Not quite. Do you have any debt? If you live in America, and haven’t already developed the habit of savings and wealth building, you most likely do. So, your next step is to get rid of your unproductive debt by taking an addition 10 percent from your income for debt relief. This leaves you with 80 percent of your earned income. Now what?

Heard the expression, “Give and it shall be given unto you?” How about “Charity begins at Home.” They are the same. Our home is Earth and our family, other human beings. Therefore, we are responsible for one another just as the universe is responsible for securing us via Sun, Rain, Air, etc. This simply means that our existence is reciprocal and that what we give, we get back in one way or another. It’s really that simple.

So, from that 80 percent of your remaining income, if you want to increase your savings, and wealth - give 10 percent of your income to someone less fortunate than yourself (whether to an organized entity or someone you know or come across who could use the funds). How you do so is entirely up to you. Just try it. You will see. It’s an awesome principle that works 100 percent of the time.

Recapping - You’ve developed a consistent income; Paid yourself first with 10 percent for your savings account; Put aside and/or paid 10 percent toward your debt relief; and Given 10 percent to charity. Now you have 70 percent of your earnings for daily living expenses. This is more than possible to live on. Here are some tips to do so.

How To Live on 70 Percent of You Income…

These tips will get you off to a good start.

1. Take a real inventory of what you spend your money on. It will amaze you. Make a budget. If you find that you simply must have more income, intend it and get a better paying gig.

2. Eat at home - Cook

3. Make coffee at home (Carry your homemade coffee to work in your Starbucks container if it makes you feel better)

4. Entertain at home rather than splurge out each weekend.

5. Buy in bulk at places like Costco, Sam’s Club, Smart & Final, etc.

The process of increasing your savings account seems restricting at first. It is. Developing a new habit of finance is developing a new way of thinking about money and wealth. But remember, you are doing this to eventually amass wealth. Take the time, work the process and begin to change your financial status forever.

Much success as you begin to increase your savings painlessly. I look forward to hearing about your progress with the concept of Increasing Your Savings Account Painlessly. Feel free to visit my blog at http://www.todayzbestyou.blogspot.com

Who put the Christian in Christianity? Life Marriage is What This is All About! That sure sounds like a strange title to an article in Christian marriage doesn’t it? Well, there is a reason for it. Let me explain.

As Christians we are followers of Christ. That is who and what we are. In the Bible we read that the term Christian was first used in Antioch. It was to mean a “follower of Christ.” The point I am making is that we are followers of Christ and in a Christian marriage we are to act like the One we say we believe in. To the degree that we do this mutually will be the degree of success we have in our marriages.

Next, I want to briefly share what “Life Marriage” is. Again, in the Bible we read that Jesus said that He came that we may have life and that more abundantly. The abundant life! Is that where your marriage is right now? Is that where you want it to be? Don’t we all. Guess what? That is what Jesus wants for you and your marriage as well. The Good News is that He can and will do it if you and your partner allow Him to. That is why I call this “Life Marriage.” Think Abundant Life Marriage. Now you may see why I titled this article, “Who put the Christian in Christianity? Life Marriage is What This is All About!”

If you would like Christ Centered help for your marriage it is abundantly available and I suggest you click on the link below. I believe it may be what you are looking for. If it does not help I believe there is an 8 week money back guarantee. Regardless, I hope you find your help and most of all stay close to Him, He never fails. God bless you all.

If you would like real help with your marriage from a Christ Centered approach check out this blog:

http://savingachristianmarriage.wordpress.com/

Steve Feltrip is an evangelist and minister of the gospel. He has seen God work on his own marriage and continues to seek His help on a daily basis.

I’m going to help you learn foreign exchange trading the smart way. This is a market that most people should dive into. It’s a great way to make a second income and when you’re confident enough, you can turn it into your primary income.

The first thing I think you need to take into consideration is the fact that you’re not trading a currency, you’re trading a pair of currencies. You need to stop looking at a currency as just a value because technically it’s being compared against something else, usually the US dollar. There are many different combinations to look a currency. You can look at the Yen with respect to the US dollar or you could look at the Yen with respect toe the Canadian dollar. With respect to the Canadian dollar, there might not be a much for a potential trade at this moment, but compared to the US dollar it could be a golden opportunity. Be aware that you’re trading pairs.

The next thing I think everyone should do, if they want to be successful with anything is developing simple daily routines. Routine is the key to success. Anything that you’ve done good over a period of time is the result of routine. Got clean and healthy teeth? That’s because you have a routine of brushing and flossing. Routines require no thought, just action and because of this, they’re easier on the head. Develop routines, so you can easily go through days making profitable moves.

Lastly, you’ll want to be confident. The last thing you need is indecisiveness and hesitation. Learn to stick with your decisions, within reason, and look at the outcomes. Some will be good and some will be bad. You learn from all of them and you’ll grow into that confident trader.

I’m currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.

Defense wins championships. A good defense gives your team a chance to win; it keeps you in the game. To put this in trading terms, your game plan should keep your losses manageable while waiting for an opportunity to build a position. When you trade with this mindset you will always be in the game and ONE trade could turn around your entire day or your week.

Too often we see trader after trader trying to earn their entire month by gambling big on every single trade instead of seeing the big picture and earning your pay by the month.

There are literally stores and bookshelves filled with trading books and videos about how to earn money in the stock market. If I was forced to put a number on it I would say that 98%of them focus on telling you what to do to be successful as a trader.

We are going to discuss some of the things you can AVOID to give yourself the best chance of netting money on a regular monthly basis.

1. Using maximum leverage all the time: Most retail traders who make the venture into full time trading have a very common belief; “if I had more buying power I would make more money.” So when they actually make the jump to a professional firm they can’t wait to “load up” a position. All they can see is the dollar signs of what they will earn as the trade moves in their favor. It is just not possible for every trade you take to be one where you should increase your leverage. Placing maximum share size on your initial entry requires you to be amazingly accurate with every entry. Think about that, maximum share size all the time forces you to be perfect. Is that possible?

2. Not using enough leverage: There are however certain times of the day, week and month when you will have the market condition to increase your position size. Keep in mind this will occur on average around 30% of the day, week, and month. Think about that; 70% of the month will NOT be optimal conditions for max share size!! How often does the market, sector, your stock, market internals and volume all line up for this perfect storm?

3. Trading the entry signal instead of the trend: One of the most exciting things to do when trading is obviously getting into a trade, that’s what gets your blood pumping. Unfortunately because the entry is so exciting that is where most new traders put most of their focus during the trading day; on the entry signals. This is equivalent to going to the beach and watching the small splashes of water around your ankles and thinking those splashes move the ocean. It is the other way around and that should be your focus. The big picture first and THEN the smaller time frames to enter or exit. Don’t even look at the smaller entry time frames until it looks good on the higher time frames.

4. Guessing when a trend will end: When you remove the ego based desire to pick tops and bottoms you will immediately become a better trader. This will add to your net profitability than any other advice you will receive. One of the first mentors I had said it the best; “it is what it is until it’s not.” In other words assume the order flow the buying or selling pressure is intact until you see a heavy volume pause or exhaustive volume.

5. Trying to scalp AND position trade: Pete Rose was not a home run hitter and Barry Bonds was not paid to hit singles. They both knew very clearly before they went to the batters box what they were trying to accomplish. This is a very important concept to understand before you begin trading for the day it will affect how you manage a position and how you get shares for a trade. If you are a “singles hitter” as a trader you will be trading full size on both entry and exit. If you are a trader who holds positions you will be building a position as the stock moves in your favor and scaling out as well. It is very difficult to scalp and to be a position trader; you will constantly be mixing business plans. This is a quick road to the poor house. Pick a style that fits your personality and trade it like you own it. This will make it much easier to replicate your success.

Spend some time during lunch or after the close and see how many of these five you can remove from your daily trading.

Good luck this week,

Pete

The founders and instructors of Keystone Trading Concepts have managed a profitable short term trading desk for the last seven years. Our specialty is short term intra day to five day stock trades.
http://www.keystonetradingconcepts.com/