Monday, August 25, 2008

New Webinar Times for Home Seller Assist program with John Alexander

Don't forget, we have a live presentation each Tues
and Wed followed by a Q&A session.

Tue Night: 8:00 CST Seller Call ( attend this if you have a property to sell or buy

Tue Night: 9:30 CST Business Overview ( attend this if you want to make a 1% on any loan that funds - my profits since June 23rd are just over $17,000

Wed Night: 8:00 CST Seller Call ( attend this if you have a property to sell or buy

Wed Night: 9:30 CST HSA Training Call & Q/A Session (
using the info in our training, I have made over $17,000 since June 23rd


"You make money when you buy, not when you sell." So says the old adage. It's especially important to keep this in mind in today's market. Buying opportunities abound, and now is the time to take advantage of that and make your money.

I must admit, I have a soft spot in my heart for Detroit. That was where I was born and raised. And the entire southeastern part of the state of Michigan is dependent on the automakers staying in business. So whenever talk of the Big Three (or Two, if you prefer, since Chrysler is now privately owned) going bankrupt surfaces, I take note. But no matter what you hear, I believe the chances of them going bankrupt is very remote.

Here's why: If Ford or General Motors, for example, ever filed bankruptcy, it would likely shift consumers immediately away from their products and to those of its competitors, further hurting revenue. Because that sudden loss of customers would make it nearly impossible for the company to recover from bankruptcy, a more likely scenario would be a recapitalization of debt, and favorable concessions from suppliers and unions to ease the financial burden. It could also mean that new debt sources could be found at more favorable terms.

The government, having bailed out Chrysler in 1979, is well aware of the consequences of a major automobile manufacturer going out of business. It wouldn't just be GM or Ford going out of business. It would also mean the end for the hundreds of auto parts suppliers in the region, including Delphi, Visteon, and Johnson Controls. The trickle-down effect would be devastating.

So how does this tie into the old "you make money when you buy, not when you sell" adage? Ford and GM are currently trading near their 15-year lows. The outlook for them is bleak. Everyone is dumping shares. But, for the above reasons, I don't think these companies are going to go away - and it is time to look at them as long-term recovery investments.

Buying near 15-year lows gives you two advantages: You are buying at a very low price, so the upside is huge. At the same time, that low price makes your downside relatively small in the unlikely event that they do go bankrupt.

Saturday, August 23, 2008

Government Intervention Has a Ripple Effect

By Rick Pendergraft

Over the last month, the intertwined relationships of the markets have been wacky, to say the least. On July 15, the SEC announced its protection plan for Fannie Mae (FNM), Freddie Mac (FRE), and 17 banks and brokerage firms. This move totally disrupted the natural ebb and flow of the market.

Financial stocks bottomed (for now) on that date - which makes sense. But the next part doesn't make sense. Oil peaked on July 15. What does the U.S. government bailing out financial institutions have to do with the oil market?

When the government stepped in to protect those financial stocks, the dollar rallied. Oil is traded in dollars. And much of the rise in oil over the last year can be attributed to the falling dollar. So the rally in the dollar that started on July 15 caused oil prices to drop.

All this being said, it looks like the dollar has too much resistance to get through in the near term. Plus, at this point, oil has too much support at $110 to blast right through that level. Look for a pullback in the dollar and a rally in oil over the coming months.

You shouldn't get overly excited about this manufactured rally in financial stocks, or about the decline in oil. The downward trend for financial stocks is still in place, as is the upward trend for oil. The government may have reversed things for the short-term, but this could be a major opportunity for you to short financial stocks and buy energy stocks.

One thing it has helped is the Home Seller Assist program created by John Alexander as explained at, this no bank qualifying program is helping many who could not otherwise buy a house, check it out today.

Saturday, August 9, 2008

Fannie Takes $2.3B Loss; Nixes Alt-A Purchases

Fannie Mae has reported a $2.3 billion loss for the second quarter, up slightly from $2.2 billion in the first quarter, and the mortgage giant said it will cut its dividend to 5 cents and stop purchasing alternative-A mortgages later this year. Read more...

Fannie Sees No Revenue Boost in 2nd Half

Despite raising its loan fees and pricing several times this year, Fannie Mae says it does not expect to see an increase in revenues in the second half and is beginning to see the Federal Housing Administration take away some of its business.

Thursday, August 7, 2008

Household Debt

The ratio of household debt to GDP spiked up in recent years as investors were lured into borrowing money at artificially low interest rates in order to buy stocks and real estate as a hedge against inflation - in the mistaken belief that the assets would continue to appreciate.

The result was an inevitable asset bubble as demand for real assets exceeded supply. Prices were bid up to the point that asset yields were negligible and expected returns were based primarily on future speculative gains from inflation.

The financial sector, spurred on by soaring profits and fat bonuses, circumvented lax regulatory controls to expand debt to record levels - ignoring prudent banking standards to include borrowers with bad credit histories - again in the mistaken belief that ever-increasing asset prices would save them from defaults.

This is making it even harder for buyers to get loans, however, the Home Seller Assist program, created by John Alexander, is providing people with credit scores as low as 500 a chance to purchase a home and obtain good fixed rates. They loan from $50,000 to $300,000

Not only that, but the Home Seller Assist program allows sellers, agents, builders and investors to make a nice 1% commission on every loan that funds.

You can learn more about that part at

We have a live Home Seller Assist presentation there each Tues and Wed
at noon - Central followed by a Q&A, so attend and bring all your questions.

Larry Potter