SEG Blog

LA TIMES - Foreclosure filings — that includes default notices, auction sale notices and bank repossessions — were reported for 60,491 California residences in November, according to Irvine-based RealtyTrac, the most of any state. That was up 6% from the previous month (after two months of decreases) and a 51% increase from November 2007.

Just what are we talking about here? That translates into 1 in every 218 houses or more than two times the national average.

Some of the California metro areas making the U.S. Top 10 list for foreclosure filings and where they ranked:
Upland 3. Merced, 1 in 76
4. Modesto, 1 in 93
5. Stockton, 1 in 94
6. Riverside-San Bernardino, 1 in 107
9. Bakersfield, 1 in 129
10. Vallejo-Fairfield, 1 in 133

Nationwide, RealtyTrac showed a 7% decrease in November foreclosure filings (1 in 488) from October, but a 28% increase since November 2007.

As to why there was a November decrease nationally, RealtyTrac CEO James J. Saccacio cited state laws that have extended the foreclosure process, loan modification programs and holiday foreclosure moratoriums. “There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months.”

I think he’s got that right. The November slowdown was merely a delay of much more to come.

For the record: As commenter TMSELF correctly points out, California is not the leader in percent of homes in foreclosure filing: “Nevada maintained the nation’s No. 1 foreclosure rate, with one in every 76 housing units receiving a foreclosure filing during the month — more than six times the national average,” according to RealtyTrac. Also ahead of California, Florida with 1 in 173 homes and Arizona with 1 in 198 homes.

– Lauren Beale

On Monday we published a letter from the FDIC complaining about our recent editorial on the agency’s mortgage modification plan. Hours later, the Comptroller of the Currency released new data suggesting that the FDIC proposal may be as bad as we feared.

Background Reading

The FDIC wants to pay loan servicers to restructure delinquent loans and then have taxpayers share the losses if the loans fail again after six months. The FDIC did not appreciate that we reported private data showing that more than 50% of modified loans go delinquent again. The agency suggested that 15% might be a better estimate.

That estimate just got a lot harder to defend. Comptroller John Dugan released the default numbers on loans modified in the first two quarters of 2008, based on data from institutions servicing more than 60% of all first mortgages. “What makes these quarterly reports unique is that they are not merely surveys, but instead consist of validated, loan level data,” said Mr. Dugan. “We believe the reports include the most accurate and reliable data on mortgage performance that is available today.”
In today’s Opinion Journal

According to Mr. Dugan, “The results, I confess, were somewhat surprising, and not in a good way.” Of mortgages modified in the early part of this year, more than 35% had gone at least 60 days delinquent again after just six months, and a full 53% were 30 days delinquent or more. By eight months, this default rate had climbed to 58%. Second quarter modifications are on track to be nearly as ugly, with more than 50% of borrowers at least 30 days delinquent at the six-month mark. Come to think of it, these stinkers are going south so quickly that perhaps the FDIC’s plan actually will protect taxpayers — there won’t be much left to insure after these toxic loans blow up in the first six months after modification.

Of course, that would mean that fewer foreclosures would be avoided, which is supposed to be the point of this exercise. For her part, FDIC Chairman Sheila Bair says that “The OCC’s data on redefaults raises more questions than answers because it fails to define, in any meaningful way, the modifications that have redefaulted.” In politics, when you don’t like the data, merely wish it away.

She believes that her formula, which reduces interest rates initially but often creates larger obligations down the road, will yield fewer re-defaults than the industry average. Washington’s housing bubble resulted in many loans going to borrowers who cannot or will not make their mortgage payments. Let’s stop contriving ways for taxpayers to subsidize them.

From WSJ.com

After much anticipation for results of loan modifications, the foreclosure band-aid, a new report showed that 58% of loans modified during the first quarter of 2008 defaulted within 8 months.

This statistic is a strong indicator that while loan mods may be a great component in recovery it is primarily topical medicine when radiation is needed to remove the tumor. Loan mods more likely will only postpone the inevitable for the masses currently signing up for note modifications. One attorney specializing in loan modifications, James Burns Esq., said “When we speak with potential clients about modifying their loan or other options candidness is important to find the right solution.” This honesty is the reason it is critical prospective candidates choose an attorney firm wisely.

With loan modifications now the dull saving grace to the foreclosure crisis where will they look next for solution?
~ Joshua Host

SEG Advisors will be hosting the REO & Foreclosure Network every Thursday night for 5 weeks starting January 15th and ending February 12th at Dave & Busters located at the Irvine Spectrum from 6-8 PM. The event offers insight into investment strategies to capitalize during this foreclosure market. Come enjoy a Silent Auction with 0 reserve properties and opportunities to purchase properties from $5k to $20k. For more information visit BuyReos.org.

October 3, 2008
By Michael Lyster

Orange County Business Journal Staff

Fast-growing private companies—including a video game store franchisor, a flat TV seller and even a provider of healthcare to prison inmates—were honored at a cocktail reception in Irvine on Thursday by the Orange County Business Journal.

The event honored the top 10 companies on the Business Journal’s list of 100 fast-growing private companies, which appears in the Oct. 6 edition of the paper.

Companies were ranked by revenue growth for the 12 months through June 2006 to the 12 months through June 2008.

The companies honored:

No. 1 Newport Beach-based Play N Trade Franchise Inc., which franchises video game stores and saw two-year growth of 1,926% to $7 million in sales.

No. 2 Orange-based American Correctional Solutions Inc., a provider of healthcare to prisons that saw 720% growth to $12.3 million in sales.

No. 3 Irvine-based Earthbound Media Group, an Internet marketing company with yearly sales of $2.5 million, up 525% from two years earlier.

No. 4 Irvine-based Vizio Inc., a seller of flat-panel TVs with yearly sales of $2.3 billion, up 480% from two years earlier.

No. 5 Mission Viejo-based Stone Equity Group, which markets unsold homes to individual investors and has yearly revenue of $1.7 million, up 477% from two years earlier.

No. 6 Costa Mesa-based Pacific Building Care Inc., a provider of janitorial and other building services with sales of $90 million, up 400%.

No. 7 Costa Mesa-based Lead Tracking Solutions Corp., a provider of advertising tracking software with sales of $1.4 million, up 361%.

No. 8 Costa Mesa-based BandCon, a provider of Internet services with sales of $14.5 million, up 323%.

No. 9 Irvine-based Neudesic LLC, a technology services provider and custom software developer with sales of $34 million, up 231%.

No. 10 Laguna Hills-based Blytheco LLC, the top reseller of business software made by Irvine’s Sage Software Inc. with sales of $23 million, up 228%.

In all, the 100 companies on the Business Journal’s fast-growing private companies have yearly sales of $27 billion, up more than 40% in the past two years.

The event honoring the top 10 companies at the Hyatt Regency Irvine drew about 450 people.

Reo Foreclosures, Foreclosure Investing, Real estate investing

Stone Equity Group (SEG) announced last Friday the appointment of James Burns, J.D., LL.M.,. as the Director of Asset Management. Mr. Burns is the author of the new book “The 3 Secret Pillars of wealth” which parallels SEG’s business model. This strategic move furthers both parties’ initiative of providing a simplistic retirement path for busy professionals.

James Burns currently holds two law degrees and focuses on estate planning, wealth creation, business transactions, and wealth crisis management (asset protection).
Mr. Burns will be responsible for the structuring and implementation of asset management strategies for clientele. In addition Mr. Burns will provide seminar and webinar education for investors nationwide.

“Our number one goal is customer satisfaction, with a great reputation and tremendous experience James is the perfect compliment to help fulfill our clients’ needs.” Stated Joshua Host, CEO of Stone Equity Group.

Stone Equity Group (SEG) is currently one of the fastest growing real estate investment firms in the country; specializing in assisting busy professionals build profitable real estate portfolios that cash flow. SEG locates, underwrites and negotiates with developers nationwide in the disposition of real estate at discounted prices. These discounts are structured as an incentive package creating turnkey solutions for end term investors. SEG provides a network for investors including education, property management, and investor resources that mitigate unnecessary risks and expenses associated with real estate.

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SEG has negotiated millions of dollars of discounts in Real Estate on behalf of our members. If you are interested in less risk, higher returns, and PASSIVE CASH FLOW then SEG is the perfect partner for you. With hundreds of REO properties discounted 15%-40% in the hottest markets nationwide SEG can help you build true wealth in 2008. Learn why hundreds of investors trust Stone Equity Group by registering for your password to one of the fastest growing Real Estate Investor website online.

United States of America (Press Release) May 19, 2008 — Orange County, CA – Stone Equity Group started receiving numerous requests for Karla Dennis shortly after Ms. Dennis was a co-speaker at a recent seminar sponsored by SEG. One attendant responded “Karla was so thorough and down to earth; she simplified the GO ZONE tax benefits in a way that was easy to understand”. After numerous inquisitions and discussions SEG extended an offer for Ms. Dennis to sit on the Board of Advisors. “We have been blessed in building a Board of Advisors that are innovators in their perspective fields and parallel our company’s beliefs and values” Said Joshua Host, CEO of SEG.

SEG is tireless in their pursuit to help busy professionals build profitable real estate portfolios in changing markets. Ms. Dennis will aid SEG members in both tax consulting relating to real estate investing and tax preparation in all 50 states. The addition of Ms. Dennis to the SEG Board of Advisors and the SEG dedication to progressively add value and make financial freedom more accessible to the masses has set them aside from would be competitors.

Karla K. Dennis is a licensed Enrolled Agent. An Enrolled Agent is the designation granted to a select few who have exemplified expertise in the field of taxation and have passed a rigorous exam administered by the U.S. Treasury Department.

Ms. Dennis holds a Masters of Science Degree in Taxation from Golden Gate University and a Bachelor of Science Degree in Business Administration from California State University Dominguez Hills.

In addition to being a SEG Advisor, Ms. Dennis is the President and Founder of COHESIVE– a professional tax firm that employs distinguished tax professionals who specialize in complex tax situations, tax preparation and resolving tax issues.

Karla Dennis offers a complete tax and accounting service
to individuals and businesses. Because she has been working with clients and businesses for over 15 years, she has unsurpassed expertise in the field of accounting and taxation. Her track record includes not only preparing tax returns, but also representing clients in audits and collections issues before the Internal Revenue Service. The expertise of knowing what the IRS or other taxing authorities are looking for when your return is prepared is an indispensable benefit that she offers to her clients. Her expertise coupled with personalized service is the number one reason why clients come to her again and again. Her goal is to build a relationship with clients so they may have someone they know and trust to handle their tax and accounting needs.

Stone Equity Group (SEG) is a real estate network that is focused on assisting busy professionals build profitable real estate portfolios that cash flow. Over the last few years SEG has negotiated millions of dollars in discounts on behalf of their members and created a turn key system that takes care of everything from negotiations to property management. For more information on SEG visit Stone Equity Group.

It was said at 55-60 a barrel Houston thrives….at over 100 a barrel Houston is on fire. But if we only wanted to focus on areas specialized in the petroleum industry Lafayette, LA or Tulsa, OK would be great candidates as well. What separates Houston from the pack is the diversification among energy, health care, tech, and financial industry that give an economic buffer to energy fluctuations. As the second largest city nationwide, with an affordability index, job market, and cost of living that rival any city in America to date Houston offers the investor’s paradox of cash flow and potential appreciation like no other market.

While opportunity is vast, speculation can lead to unsatisfactory results. So to maximize the environment SEG led a market analysis to identify profitable markets. Through research two were identified, being multifamily and Duplex/Town homes in the inner Beltway. As gas prices soar and traffic worsens property values in the inner Beltway of Houston will have little way to go but up. In a search to capitalize on these findings we have negotiated discounts for SEG members on duplexes with a Houston based builder. Due to the hot market finding discounts has proved difficult, but SEG established a long term relationship that allowed these discounts on sixteen duplexes in Houston at only $94 a square foot for a nicely finished product. At the purchase price alone they are a deal, but with a $30,600 lease back they are a steal. In addition the Federal Government approved the “Tax Stimulus Act: Section 179” that allows accelerated depreciation on materials with less than a 15 year life span*. Other purchasers of these duplexes have been able to write off $100,000 year one by completing cost segregation which SEG can help to facilitate.

As the wealthiest country in the world you would imagine after 45 years in the work force your retirement would be comfortable….Unfortunately statistics show 95% of Americans at the age of 65 cannot retire or have to depend on family and social systems. Additionaly more and more of the rare 5% that do retire comfortably are living longer so are forced back into the work force in their later years. When I ask most clients about their retirement plans the question is typically met with a dazed look and shoulder shrug. For some it seems retirement is a distant twinkle, and for others it is becoming the 600 pound gorrilla. The difficulty with these extremes is the first needs only slight attention to obtain future security but the idea is often shelfed because there are currently bigger fishes to fry. The latter usually need to make larger investments to secure financial security but now risk adversion and fear of failure cause analysis paralysis. There is no snake oil or secret sauce to escape retirement poverty. There is a three step process that will aid in hitting the hammock:Make a plan: This is often easier with a mentor, counselor, or friend that has the fortitude to keep you accountable. When ever I am assisting a client in making a plan it includes their current financial picture, forecasts, and future necessity. With these components we find the end term financial consideration in achieving the goal. Once this number has been established alond with the period of time til retirement we can work backwords in producing a plan to build a profitable real estate portfolio.Find a team: In any pursuit a team does not add to the likelyhood of success but rather multiplies the odds in your favor. So on the road to financial freedom to decrease your risk and speed the results make sure you have specialists in tax preparation, asset management, real estate finance, real estate acquisition, real estate management and again a mentor, consultant or friend to hold you accountable.Take Action: For most taking action can be very uncomfortable due to the unknown. A smart man once told me you have to do what’s uncomfortable until it’s comfortable, that is the only was to grow. The fact is there will be bumps in the road and it will probably be harder than you expect but isnt your family’s future securtiy worth putting in a little elbow greese? One group in particular, Stone Equity Group, is a real estate network specialized in assisting busy professionals build profitable real estate portolios in changing markets. SEG has a board of advisors that cover areas from tax strategy, asset protection, residential investments, reos, foreclosures and many other areas important in building and protecting your nest egg. Regardless of your dream remember one thing. “He who aims at nothing will hit it every time” Ancient Chinese Proverb. ~ Joshua Host

Many investors have realized their pots at the end of their rainbows have disappeared, and are lost as to where to invest now.

In this Real Estate Market there is so much happening outside of our backyards. We have been looking at the places that are hot in this market place and we happen to see all fingers pointing at Texas. The reason why Texas is the big place to invest in is because of job growth. With so many people are losing their jobs all over the country there is a lot of people moving out of state and looking for a new place to call home. The big plus in Texas is a mix of affordability and job opportunity by what you can read in this article below.

Report: Dallas-Fort Worth has strongest job market in U.S.

Investors need to think their way of think from flipping to renting. The market is so volatile you cannot be sure that the foreclosure or rehab you’re trying to fix and flip has the equity at the end of the day to make it a profitable investment. Come over to SEG and see what I’m talking about.