a. Credit score

b. Relationship building

c. Interest on tax return

d. Proof of funds and

e. Ability to possible substitute collateral

2. A one hour consultation with the Coach Herb Strather to plan your destiny

a. Your situation

b. Your goals

3. Cash at closing Blueprint Manuel

a. For reading and testing

b. For listening

4. Live instructions for 8 weeks

a. From the coach

b. From guest speakers

5. A library of forms and case studies

a. Creative case studies

b. Creative forms for your use

6. A Purchase agreement on your own deal within the 8 week course

The existing lender wanted the usually stuff–all of their financial information in order
to make a positive decision and grant them a short refinance. I suggested they find the
lowest comparable home sales to provide the lender. I contacted a ‘Reverse Mortgage’
broker and asked for a mortgage commitment at the maximum amount possible. After
two weeks, I had not received either a commitment or a response so I contacted the
reverse mortgage broker again only to find that he thought it was a waste of his time
since the Smiths owed more than twice what the maximum reverse mortgage could
provide. I yelled at the mortgage broker and asked him to please provide me with what I
wanted!!

One week later the mortgage broker gave the Smiths a mortgage quote of $275,000. We
offered the lender $235,000; they took it under advisement–but no answer. Over the next
several months we tried to negotiate a deal but the lender was too busy and too aloof.
Finally the lender responded. The lender agreed to a short sale (not a short refinance) but
did not present us with an agreed upon amount they would accept and would not grant the
short sale to the Smiths because they were the defaulting party, the Smiths were asked to
lists the property ‘for sale’ and present them the offers – Can you believe that?

The lender then dropped a bombshell. They decided to foreclose. I told my client not
to worry, and to just get the reverse mortgage ready. I believed that whatever the home
sold for at the Sheriff sale, my client could buy it back for that amount. I was right. The
Sheriff sale occurred on a Wednesday in late November; the lender’s agent called my
client the first of December and offered the mortgage to them for just $118,000–just in

time for Christmas.

So what is the moral of this story?

First, the lenders and their servicing companies are overwhelmed with defaults and
foreclosures and often are unable to make deals in their best interest. You as the
mortgagor must be ready with your own flexible plans, be patient and keep the faith.

Secondly, this is the time for great wealth creation through ‘shorts’ (discounts) on
mortgages. Now is the best time possible to purchase real estate. These are times we
will probably never see again.

Thirdly, the world is upside down. The upper middle class is getting poorer and the poor
middle class is getting richer–i.e., people that can afford to pay their mortgages have to
keep 100% of their debt while those that cannot make it are reducing their debt and their
payments. One way for the upper middle class to stay even is to purchase depressed real
estate assets and take the equity ride up through the next 36 months.

If you are upside down on your mortgage and would like to take advantage of this once
in a lifetime opportunity to short your mortgage without wrecking your credit or to
accumulate wealth by acquiring distressed properties then come to my seminar

This Saturday May 5th at the Hotel St. Regis 3071 W. Grand Boulevard Detroit,
Michigan. To register call 313.444.9691 or go to stratheracademy.com

First, it limits your exposure in the event you default and get sued for specific performance. You
should always try to limit your liability by signing ‘without recourse’ and by excluding specific
performance language in the buyers default paragraph located in the purchase agreement.
Simply cross out the part that allows specific performance exposure or better yet never include
it. If you have been following me you know never to use forms. Create your own purchase
agreement or use mine.

Secondly, It give you fluidity and the ability to assign your interest in the deal without having to
assign the purchase agreement. Most banks will not allow you to flip the property by assigning
the purchase agreement to a third party. If you purchase in a newly created LLC you can simple
assign your interest in the LLC rather than the purchase agreement. You might even do it in
stages by assigning a partial assignment first then the balance immediately after closing. The
assignment can even be escrowed with the title company.

The only time I would not use a LLC is if there is a homestead purchase because title in entities
are not subject to homestead, thus much higher property taxes.

If you are interested in learning more about structuring real estate deals then consider Strather
academy: “Real Estate Entrepreneurship” Cash at closing Blueprint. Our home study course
gives you everything you need including step by step approach to a successful closing, all the
forms you will need and consultation with the Master….. Herb Strather.

Go to Stratheracademy.com

Or call 313 444.9691

Note: we are having a free seminar on Saturday May, 5th, 2012 from 1-3:30pm at Hotel St.
Regis 3071 W. Grand Blvd. Detroit, Michigan. This is the last seminar before the 8 week
course begins.

Furthermore banks have volunteered to sell property for 10 cents on the dollar no matter what the real value is. So why should anyone feel sorry for Detroit when we have plenty of equity and opportunity lying on the streets, and all we have to do is harvest it to create jobs, home ownership, profits, and better communities? The Strather Academy believes that Detroiters can and should do what we have always done — to lead the way.

Throughout my life, it seems other ethnic group have controlled Detroit either through real estate as landlords, or as merchants selling groceries and gasoline. Real estate investors all over the world see the value here and they buy Detroit real estate, 100 houses at a time. So why aren’t we buying and controlling our own community? The interesting thing is that Detroit led the world during the 20th century in music, manufacturing, and making money (by Innovation and entrepreneurship), so why do we allow others to gobble up the real estate in our community while we sit back and watch. It is hard to believe that those of us with Detroit DNA would allow others to eat our lunch inside our own house!

Perhaps we are asleep or simply unaware of the opportunities. Wake up Detroit! We are sleeping through a great recession, sleeping through opportunities to get our equity back, and sleeping through a chance to get wealthy. Even if you do not have lots of cash to buy, you can still get rich through structuring acquisitions and resale.

Now there is still good news.

The recession has not ended yet. You can still pick up a few good pieces of real estate and be set the rest of your life. God is still in the blessing business. Banks are still giving 90 percent discounts and Wayne County is getting ready for a mid-year auction in June. If you have any of the three C’s such as Cash, Credit, or Collateral, or a Computer, Cell Phone, and Car (with gas) along with Detroit DNA and you want to help restore a World Class City (and make a small fortune in the process), then wake up, get ready, and do it.

Before continuing to read I want you to close your eyes for a minute and ask yourself “Why Don’t I Own Real Estate?” and I want you to write it down. If you don’t have a pen and paper in front of you simply open a word document on your computer and type it out (I’ll explain later).

What I’ve found is that most people’s excuses for inaction fall into one of a handful of buckets.

Bucket 1: No cash…
Welcome to the good old US of A my friend. The average US citizen makes no more than $44,000 per year. Factor in big ticket items like children, health care and the rising cost of gasoline and there’s really not much left over for what your spouse may consider speculative investing. Well friends, the answer is simple, use Other People’s Money (OPM). Not so simple right? For most people the idea of asking for OPM brings about more questions than it does answers.

Consider asking yourself these questions:  1) Are you comfortable asking somebody to invest in your deal? 2) Do you know where to find people who might be interested in investing in your deal? 3) Do you know what a good deal looks like? 4) How would you present your deal to a prospective investor?

Bucket 2: No Time…
Some would say that Time (not money) is the most precious commodity we humans have and I would agree. There’s no getting around the time commitment necessary to effectively manage your property. In sticking with the leverage theme I would simply recommend using Other People’s Time (OPT). As a cash or credit investor, the idea is to make your money work for you. The last thing you should be dealing with is emergency repair requests or missing family time as a result of having to show a unit to a prospective tenant. Your time investment should be strictly limited to education and deal making. To the extent that a particular task no longer meets your educational needs it should be systematized and delegated. You don’t have to re-invent the wheel either. The people and systems needed to make your investment experience worth-while are already in place. You’ve just got to know where to find them!

Bucket 3: Bad Credit, No Credit…
The idea of Credit worthiness is in a state of flux. Since the crash it’s been redefined so many times by so many different institutions that nobody really knows what’s what anymore. If you don’t have steady income and/or you have a deficiency on your personal record within 3 years you’re most likely going to have a hard time finding a bank that will loan you money for residential property without a solid co-signer.  In this instance, consider offering a joint venture opportunity to somebody with good credit (e.g. “Your first deal with me is free, I want to show you what I’m capable of.” ). It should also be noted that properties of 5 units or more are considered commercial property and lenders take a different approach to approving or disapproving commercial real estate loans. In this case deals are underwritten (analyzed) and accepted or declined based on the quality of the deal. Factors such as Location, CAP Rate, Management Team, Occupancy and Debt Coverage can factor into your ability to get a loan. I recommend finding a strong balance sheet partner if you’re interested in going in this direction. Believe it or not these people are out there and they’re looking for people just like you. You might even be their next protégé.

Bucket 4: Too Risky…
Flat out, there was ALOT of real estate speculation that went on in the years preceding what I fondly refer to as The Great Recession. Real Estate prices climbed annually at a rate that couldn’t possibly be sustained by our economy. Investors speculated in real estate deals as if they were stocks. The idea was to get in low, ride the value up and sell or cash-out refinance. The debt being placed on property couldn’t possibly be sustained by the actual income from operation of real estate itself. When investors lost their ability to borrow against increasing values they were forced to run their real estate portfolio like a legit business and unfortunately the ends did not justify the means. THE MATH DID NOT MAKE SENSE. This is not the case today. There’s only one time in the history of our country when real estate prices were better than they are today and that was 2011; Last Year! To put it clearly, every day that passes is another wasted opportunity. Any risk that exists is mitigated by your ability to run your property with even the smallest level of competency.

“Money follows the deal, Deals do not follow money”

Most successful investors will tell you the same thing and it goes a little something like this, “Money follows the deal, Deals do not follow money!!” and it’s the truth. What they don’t tell you is that most great deals are originated and architected by experts. The reasons are numerous: 1) Experts know how and where to find a good deal 2) Experts know what a good income property looks like, and 3) Experts have the know-how and experience to confidently shop or find a deal while protecting their own interest. But most importantly, experts spend time networking with other real estate experts. I find that most experts fall into one of these three categories: Category 1: Has Money - Needs Deal, Category 2: Has Credit - Needs Deal and Category 3: Has Deal - Needs Cash or Credit. When us “experts” work together we usually find the solutions to our own personal limitations.

With that said, I’d like to invite you to begin your own journey towards expertise in real estate by joining my friends and I for a 5 hour real estate seminar and networking event. The event runs from 10AM to 3PM this Saturday, April 21^st at the Hotel St. Regis, located at 3071 West Grand Blvd in the New Center area of Detroit. Please RSVP with your name and email address by visiting www.stratheracademy.com or call 313-444-9691. MY ONLY REQUEST IS THAT YOU BRING YOUR EXCUSE FOR INACTION WITH YOU (IN WRITING) AS YOUR COST OF ENTRY. I look forward to joining you for an exciting weekend. You never know, maybe you'll own property by the time you leave me on Saturday...

You will not believe the stories.

I was looking at a beautiful home the other day. The sellers moved to Florida, they have a $400,000 balance on a home worth $350,000 and wanted to sell it. They offered me $40,000 if I would buy the house. They have no idea that under HAFA rules they can keep their $40,000, list the house for the $350,000 and walk without a deficiency.

A person I know has a mortgage of $220,000 on a house worth maybe 75,000 in a great neighborhood in Wayne County. The 2009 property taxes were not paid and the property was foreclosed for non-payment of property taxes on March 31, 2011. The owner wants to walk away because of the debt and the taxes. She has no idea that if she successfully buys the house at the tax foreclosure sale in her LLC that the property would be free and clear.

Another seller with 5 kids in a 3 bedroom 1,100 sq. ft. home wants to short his mortgage when he should be buying another bigger home for pennies on the dollar. Why?

The answer is simple the real estate world is upside down and things just ain’t the same. Never before in our lifetimes have we seen such drama in the real estate business. I would say only 5% of the people is engaged, everyone else is sleeping and the engaged 5% is making more money then they ever dreamed.

So why is 95% of Americans sleeping and snoring through the greatest deal making time in history?

Perhaps you can answer the question

Is it because:

You have no idea what you are doing
You don’t know the new real estate game rules
You don’t know HAFA rules
You don’t know HAMP rules
(You don’t know Strather RULES)
You don’t know mortgage modifications are a sucker deal
You don’t know shortening a mortgage on a refinanced home is forgiveness of debt and can cost you
You are frighten to tell the bank to foreclose so that you can buy back at the redemption price without perjury
You are scared to short
You think you can pay a consultant $1,995 and he will save your house
You think the only way to make money in real estate is to flip
You don’t know where to get financing
You don’t know where to find deals
You don’t know how to evaluate or underwrite deals
You have no cash, credit or collateral
You don’t know you can buy without credit
You don’t know you can buy without cash
You don’t have a REAL, real estate coach
You do not know you have everything you need to make it

If you admitted yes to any of the questions above, but you are ready to empower yourself in the real estate arena, I will help you

Come to my real estate seminar this Saturday April 21, 2012 at the Hotel St. Regis 3071 West Grand boulevard, Detroit, Michigan

Herb Strather

Recently I wrote about the 7 benefits of joint venturing with 501c3’s….. well joint venturing with a church is like a 501c3 on steroids. I like to call it the P power. Churches have all the P’s. The purpose, the people, the politicians, the purse, the purchasers and the power. If I am going to get into trouble on a real estate deal, I want to be with a church because I know I got a winning hand. Consider these 15 reason s to JV with a church
1.You can gift sale to a church
2.You can JV with a church and possibly carry developments tax free
3.You can become an advantaged bidder with a church
4.You can leverage more with a church through Housing Authorities and HUD
5.You can purchase municipal real estate at a discount with a church
6.You can meet and greet powerful people with a pastor
7.You can qualify for a grant working with a church
8.You can carry out your purpose with a pastor and his parishioners
9.You can better connect with a community through a church
10.You can borrow easier with a (big) church
11.You can get investors and people with power to help you in a church
12.You can sell property to parishioners who want to live in a church community
13.You can get out of trouble easier with a big church
14.You can meet a spouse and get married in a church
15. You can go to heaven working with a church!

Consider this, supposed you were working on a community project and you screwed it up real, real, real bad. I can imagine you asking St. Peter if you can get in to see the lord to ask for forgiveness and he telling you to “Go to hell”…. that would be bad, however if you had been working with a church, St. Peters may let you in to see the lord to ask for forgiveness…… so tell me what do you think is the moral of this story? (I will let you know if you are correct)

If you are interested in working with non-profits then you belong at Strather Academy where you will find all the tools (forms, case studies and how to videos) you need to succeed . Just go to www.stratheracademy.com and I will see you there.

The seminar of a lifetime

Hotel St. Regis

Saturday April 21, 2012

10am to 2pm

Register at 313 444.9691 or go to Stratheracademy.com. Limited seating

2. Detroit has the world’s largest manufacturing base (automotive) which will drive technology for the next 50 years.

3. Detroit has 15,000 young intellectuals wanting to live in a loft near downtown.5 years from now downtown Detroit will be majority white, young and socially energetic.

4. Detroit is in the middle of an exciting economic turnaround, when all the smoke clears Detroit will be amongst the top cities in America.

5. Detroit real estate can be bought for 10 cents on the dollar.

It is hard to believe that you can get rich within the next 18 months in Detroit without putting yourself at unacceptable risks. Just find 5 deals and close them. If you do not have cash… so what, just find the deals and the investors and split the profits. Money follows deals; deals do not follow money. The most important part of this equation is finding and properly structuring good deals.
So where do you find good real estate deals? Where do you learn how to leverage them to pull out cash? How do you flip deals the right way for all to benefit?
It would seem like these are things you can learn at college or trade school, unfortunately becoming a urban real estate acquisitioner is not something normally taught at U of M, Michigan State, Wayne State, Harvard or Yale. There is however GOOD NEWS, yours truly will be teaching the ART of Acquisition over the next 30 days at some of these institutions and you are invited to attend. Please be my guest.

“The Art of Developing your Community” Wednesday April 18th, 2012 from 4pm to 6pm at Harvard Divinity School, Cambridge Massachusetts.

“The Art of Acquisitions” Saturday April 21, 2012 from 10:00am to 2:00pm at Hotel St. Regis 3017 W. Grand Boulevard Detroit, Michigan

“Urban Real Estate Entrepreneurship” Wednesday May 9, 2012 from 10pm until 2pm at Wayne County Community College east campus at i-94 and Conners. Detroit Michigan

Please register at stratheracademy.com or call 313.444.9691. Limited seating available.