2011 was the worst year in history for new home construction so home builders need to evaluate their pricing structures very carefully and figure out how to satisfy their budget-conscious market.

Thanks to our friends at John Burns Consulting for the careful analysis each and every month!

While the opportunity to purchase a valuable piece of property or a terrific building at a fraction of its market value sounds like a coup, be aware that there can be problems associated with buying foreclosures, one of the most horrifying being possible legal issues. Ensure that the bank or mortgage lender who has placed your dream property on the market has followed the proper procedures in advance.

Specific time periods and notices are required, and ample opportunity for the owner to bring the loan up-to-date are required, in addition to other regulations that may apply for individual locations. Jumping the gun and selling a property before the proper steps are taken can result in legal headaches for the new buyer (You!) down the road. And those aren’t worth any “great price” you may find in a foreclosure.

In addition to the potential legal issues, foreclosure properties that have sat vacant for awhile may have developed physical damage from rain, wind, hail or other natural effects. Be sure to have the property inspected closely unless you’re prepared to pay additional money out-of-pocket to repair damages, or take a loss while a rental property sits empty during renovation.

Another potential stumbling block when buying a foreclosure is getting in over your head. Not just in terms of property values and potential debt, but in the fact that buying a foreclosure may be more than you’re ready for, particularly as an REI beginner.

Learning all you can about the foreclosure process and taking your time to understand exactly what takes place before you commit your time and money is key to REI success. Purchasing a foreclosure involves more than simply getting a loan and making payments. Be sure you can handle the process and avoid biting off more than you can handle!

One last word of warning for would-be foreclosure investors is to never underestimate the process. Every foreclosure is different. And each one comes with its own unique set of curves. Your state’s laws regarding foreclosures can vary, the type of foreclosure you’re purchasing (government, auction, bank foreclosures, FSBO, etc.) and more can all affect the process. Be sure you know all you can about every aspect of the foreclosure game in advance. Forewarned is definitely forearmed in the REI field.

This short video explains that it’s not about being efficient or quick with your networking; it’s about doing those networking tasks that bring you the best results.

The settlement is aimed at helping two different groups: those homeowners who lost their homes and underwater homeowners who owe more on their homes than the property is worth.

Here’s how the settlement breaks down:

• $17 billion to assist underwater homeowners
• $3 billion to refinance mortgages for homeowners who are up to date on their payments
• $5 billion to those who lost their homes in foreclosure
• $1 billion from Bank of America will be paid to the Federal Housing Authority regarding fraud charges stemming from its subsidiary, Countrywide Financial

The banks have also agreed to revise their procedures and follow all legal guidelines when going through the foreclosure procedure.

Read the full story here.

This new plan still needs approval from Congress but it would allow homeowners to save up to $3,000 per year by refinancing into loans backed by the Federal Housing Administration.

To pay for this program – which is estimated to cost between $5 billion and $10 billion – President Obama raised the issue of imposing fees on banks, an idea that has been shot down by many in Congress.

To be eligible for the program, homeowners must not have missed more than one mortgage payment in the last six months and no more than one missed payment in the six months prior. They must also have a credit score of 580 or better and they must own and occupy the home covered by the loan.

Stay tuned to see if this program passes through Congress. What are your thoughts on all these programs that we’ve seen over the last couple of years? Have they helped or hindered the real estate recovery?

Read the full story here.

Where do you find these networking partners? From business networking groups, chambers of commerce, or other community groups with whom you do work.

This isn’t offering someone a paid partnership in your business. This is simply meeting other people who might be of service to your clients. When you build this type of “team” you then become invaluable to your clients who might ask for a referral to someone who can do a certain job. When you say, “Yes, I know someone who can take care of that for you,” you then become the go-to person.

Just be sure that you’re referring someone who has an excellent reputation…otherwise your reputation might suffer as a result of a poorly done job.

McDonald’s is no exception. Seems kind of funny that this multibillion dollar, worldwide corporation that is so well known would need the extra exposure but they hopped on the social media bandwagon.

Recently they introduced a video campaign to showcase some of the country’s farmers who supply beef and produce to the mighty McD’s. They interviewed each farmer about the joys of working the land, set to soft music and beautiful video footage. These videos are on YouTube and were promoted using the hastag #meetthefarmers.

The reception was mixed, to say the least. Apparently the only responses most people remember are the outrage and horror from organic farmers and others in the healthy food/lifestyle industries, faulting these farmers for selling their produce to this evil villain they call McDonald’s.

So even though their campaign didn’t go exactly as planned, people were talking about McDonald’s and the campaign. Is bad publicity just as beneficial for a company as good publicity? Would you rather have people saying mean things instead of ignoring you? How do you repair your reputation after such a campaign?

These are some of the risks of using social media. Followers are not afraid of speaking their minds, especially if they’re upset.

If you’re embarking on a social media campaign, do you have a backup plan in case you get a less than pleasant response? How will you handle the outcry?

Read more about the campaign here.

Do you launch into a 20 minute diatribe about your business or do you have a concise answer?

Whether you call it an elevator speech or a business story, they are one in the same. People have very short attention spans, especially when you’re in a networking environment, so you have to grab them and share the information with them as quickly as possible.

As described in this video, craft your short answers to just four questions and you’ll have a concise but clear business story to share.

I love this short video from Entrepreneur because Kenny Lao from Rickshaw Dumpling explains exactly how and why his company uses Twitter. Kenny drives people to his restaurant and food trucks but YOU can use Twitter to drive people to your rental properties and to your website.