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Local actions to change the local environments are also maintained throughout the year, although these may not be directly related to the ongoing EPODE campaign. These changes are planned through activities that are often pilot tested before being transferred and adapted to other communities and organized in a sustainable manner. The process is facilitated through the development of EPODE action sheets that provide practical information for the replication of the projects, such as information on budget, human and technical resources, process and timing, etc.
To bring visibility and a sense of ownership, it is critical to create a singular brand whose features match the EPODE philosophy. This entails establishing central components to make EPODE stakeholders feel part of a common positive initiative, and to foster group dynamics and long-term commitment. For local stakeholders, it can be a lever to legitimize their action and involvement, and highlight a portfolio of initiatives under the same umbrella brand.
EPODE evaluation and monitoring is implemented at various levels through the collection of information on process indicators e. The monitoring and evaluation approach has so far included the collection of data on weight and height of all children BMI data allow international comparisons 29 which is not the case for other adiposity markers in children e.
BMI data collection in children is also a key driver not only for politicians as obesity prevalence is the principal goal for the EPODE methodology , but also for the mobilization of stakeholders at central and local levels. These data highlight the efforts and activities carried out and help to ensure a good media coverage of the programme.
An enhanced framework — including input, activities and output indicators — is now being established, based on learning from the academic literature and the experience within EPODE communities. Main results of evaluations are reviewed at the central level by the expert committee depending on the set programme goals and programme objectives , and are then communicated to the local project manager or mayor of each community.
They, in turn, are encouraged to communicate the outcomes at local level to both the general public and the stakeholders. Results are also communicated to partners at the central level and further disseminated through presentations at congresses and conferences, publications and to the media. The central coordination also provides assistance in linking media to designated EPODE sites when necessary. The purpose has been to promote the core EPODE methodology in new countries or states, taking into account the particular political, cultural, scientific and administrative specificities, while ensuring that the approach is in accordance with EPODE principles.
This is due to the central coordinating entity determining the way resources are mobilized at both central and local levels, and the percentage of public and private funds that are channelled to the programme. The annual budget at central level differs from one country to another, although in each case resources are planned to ensure coordination for 3—7 years, depending on the country.
While some campaigns are replicated from one country to another see Supporting Information Appendix S2 , the methods and social marketing process must be adapted to recognize specific barriers and utilize appropriate levers and opportunities for behaviour changes in each country. To date, all EPODE programmes have initiated continuous monitoring and evaluation practices at central, local and child levels, as well as in certain settings such as schools see Table 2 and Supporting Information Appendix S3.
Developing consistent practices and collecting comparable data across communities and programmes remains an important challenge. In EPODE communities in France, a long-term collaboration with the Ministry of National Education makes it possible to involve school health professionals in the collection of weight and height data. This contribution is critical when considering the time and human resources necessary for such data collection. In the THAO programme, local team members especially health professionals, students or research teams collect data.
In Belgium, BMI data for the entire population of children are collected, and although official authorizations have to be renewed regularly to have access to the data, with three different communities using different methods, the screening of overweight and obesity is thus made easier in VIASANO communities. This approach gives the evaluation team access to comparison samples, while in Spain, the THAO coordination teams recently integrated 19 control communities, and in Australia OPAL is using matched communities for comparison.
Comparison with national surveys is also a possibility, as has been adopted in France. The EPODE methodology has been described in terms of its four pillars: i political commitment; ii resources; iii support services; and iv evidence. For each pillar, the discussion section below highlights the achievements of EPODE and its future developments. To have any chance of success, it is commonly observed that local authorities have to engage in the EPODE programme on a voluntary basis.
As noted in a recent research study, the continuous and long-term implementation of activities in communities, together with the support of local political will, is critical for successful institutionalization of the EPODE programme at local level Bergeron et al. An active policy of recruitment is often not necessary because the reputation of EPODE travels through peer-to-peer awareness especially through elected representatives , official reports and the media.
This organization aims to develop awareness of the importance of political leadership within EPODE, to foster cross-sectoral mobilization of politicians and civil servants in each community, and to share examples of successes and failures. All the communities joining the programme in France are now invited to be part of this NGO.
As EPODE mayors and members of parliament, they can also mobilize their peers for amendments related to the food and physical activity environments. Conversely, if the elected representatives are not heavily involved initially, there may be a lower recognition of the actions undertaken by the local stakeholders, and thereafter a lower interest in getting involved. It is important to involve elected representatives from different political parties to provide continuity in the event of political turnover.
Apart from political leadership, the appointment of a project manager in each community is a compulsory commitment. There is no standard community size to implement EPODE; however, if necessary the project manager can be assisted by subproject managers in some areas e.
This particular model has raised questions regarding the politicians' motivation for involvement. While in part the answer may be re-election, it is also apparent that they are responding to the expectations of their voters to find solutions to the recognized problem of obesity.
In that sense, childhood obesity prevention can be seen as a deserving and common challenge across political borders, and engaging in EPODE could appear to be a relatively cheap and visible solution. For elected representatives, EPODE is a tangible way to improve health, tackle social inequalities and foster physical environment changes in the community.
It is noteworthy that while the time frame for action may be short for politicians they need immediate visibility and results , it is longer for scientists 32 and this can become a point of tension. Another potential point of discord is the time frame for dissemination of results. Politicians frequently expect short-term communications, highlighting the success they may have in their own community without considering issues of the statistical significance of their local results.
Nonetheless, measurements of obesity prevalence in the community may be a good opportunity to reinforce awareness of the childhood obesity issue, legitimize the action and encourage mobilization of resources. Public—private partnerships PPPs are one of the mechanisms through which healthy lifestyle promotion initiatives are addressing the childhood obesity problem worldwide 33 , For private partners, PPPs are important for corporate social responsibility and public relations by building trust among consumers and political authorities.
However, the additional value is not only in terms of money; at a local level, building action with local private partners supermarkets, local companies, producers, retailers, etc. Communication regarding their support to the programme can only occur at local level, and cannot be related to the promotion of any brand or product. However, public parties sometimes see the private sector as threatening because it is perceived to be motivated mainly from a profit perspective, which is thought to conflict with health promotion activities.
Furthermore, the public sector may be afraid of losing its integrity and independence when partnering with the private sector, which may cause conflicts of interest. The private sector may perceive the public sector as bureaucratic, politically dependent and slow moving, which may be more visible where programmes are entirely public funded. The private sector may also consider that its own commitment is not sufficiently highlighted.
Another risk can arise if the private partners at national and local levels are different. This may create tension among private partners. PPPs may also present different opportunities and risks to both parties. In the literature, both negative and positive considerations are being expressed and suggestions have been made to develop new kinds of PPPs in public health 35 — The determinants of obesity at a population level are complex Conscious and unconscious behaviours related to diet and physical activity are interrelated across levels and sectors.
Accordingly, intervention requires multilevel, multisectoral and multistakeholder preventive strategies Behavioural models have proven to be valuable frameworks for the design of successful health promotion programmes 43 and support the argument that the family and environment are crucial for the development of food and taste preferences, patterns of food intake, eating styles, activity preferences, etc.
The EPODE methodology aims to empower local stakeholders, giving them sufficient trust and flexibility to operate, at local level, tailoring their actions based on the profile and needs of the population. EPODE support services aim to create the necessary conditions in families for the sustainable dissemination of messages and implementation of change so that healthier behaviours can be adopted. These services include a broad range of activities at central level advocacy, partnership management, training and coaching of local project managers, development of social marketing campaigns, press relations, monitoring and evaluation, etc.
This is in contrast to public health programmes that have often been based on the capacity of individuals to give rational consideration to the recommendations they are given. Growing evidence indicates that interventions using social marketing principles can be effective and promising 23 , 25 , 45 , 46 and core communication principles should also be considered Accordingly, the core principle is to make changes easier, popular and sometimes humorous.
The motivation should be built on actual insight and direct benefit for the target audience, based upon issues that touch their emotional perceptions. Changes in the social environment through the creation of network dynamics by involving all possible stakeholders are another core element of the methodology, which has shown to be effective in many different settings 26 , Concrete, practical and effective implementation of EPODE methodology requires the use of multiple sources of evidence such as ongoing scientific reviews, consultation with experts, interviews with local project managers, pre-testing of messages, monitoring and evaluation of actions at all levels.
Monitoring the evolution of dietary and physical activity habits in children is carried out in an increasingly comprehensive way, but sample size, consistency, accuracy, reliability and availability of human resources to submit questionnaires remain challenges. Existing frameworks are available in order to learn and understand how cognitive and environmental determinants work and could act as potential moderators or mediators between underlying causes and energy-balance-related behaviours 49 , If resources are available, additional research could use data from these questionnaires as a basis to tailor interventions specific subgroups such as ethnic minorities or high-risk groups , to study determinants, and to compare changes in body composition and health behaviours within and between EPODE communities.
The importance of the monitoring tools to be chosen and the value of items in the EPODE questionnaires should be shared by local project leaders and partners. This is due to monitoring requiring a certain level of intrinsic motivation that exists only when practitioners realize that their programmes will be more effective and reach more people if they are able to adjust and improve their programmes on the basis of available data.
The evaluation and dissemination framework needs to be flexible and dynamic, with consideration for the feasibility in the field and that includes core and optional components. Future research and evaluation needs to take into consideration whether other evaluation designs are similarly useful, or indeed, whether they are a better alternative to the classic randomized controlled trial design.
EPODE is the largest global childhood obesity prevention programme. The theory behind EPODE methodology reflects the multifactorial approach important in the prevention of childhood obesity. The four pillars show the core components of the approach and help to explain why EPODE has been able to reach this scale.
Childhood obesity prevention programmes, which aspire to have a wide reach, may benefit from the insights into the EPODE methodology. Already EPODE is referenced in several national and international reports, position papers and conferences as an innovative example of a community-based project aimed at promoting healthy behaviours in children 19 , 51 — Further insights will follow from the standardization of actions and monitoring across all EPODE programmes around the world.
Additional Supporting Information may be found in the online version of this article:. Obesity Reviews. Obes Rev. Author information Article notes Copyright and License information Disclaimer. Re-use of this article is permitted in accordance with the Creative Commons Deed, Attribution 2. This article has been cited by other articles in PMC. Summary Childhood obesity is a complex issue and needs multistakeholder involvement at all levels to foster healthier lifestyles in a sustainable way.
Introduction The prevalence of overweight and obesity has increased worldwide during the last 30 years 1 — 6. Objectives The FLVS study identified four critical factors which now form the four pillars of the EPODE methodology: Political commitment: Gaining formal political commitment at central and local levels from the leaders of the key organization s , which influence national, federal or state policies as well as local policies, environments and childhood settings;.
Resources: Securing sufficient resources to fund central support services and evaluation, as well as contributions from local organizations to fund local implementation;. Support services: Planning, coordinating, and providing the social marketing, communication and support services for community practitioners and leaders;. Open in a separate window. Figure 1. Each local community has a dedicated local project manager with sufficient capacity and cross-sectoral mandate for action;.
An approach to action is planned and coordinated using social marketing. This is specifically to define a series of themed messages and actions, informed by evidence, from a wide variety of sources, and in line with official recommendations;. Local stakeholders are involved in the planning processes and are trusted with sufficient flexibility to adapt actions to local context;.
Messages and actions are solution oriented and designed to motivate positive changes and not to stigmatize any culture or behaviours;. Strategies and support services are designed to be sustainable and backed by policies and environmental changes;.
Evaluation and monitoring are implemented at various levels. This is achieved through the collection of information on process, output and outcome indicators, and informs the future development of the programme. Organization At central level In each country, the EPODE programme has to be endorsed by central public authorities ministries and scientific organizations. Initial and ongoing training, coaching and experience-sharing sessions for the local project managers;.
Development of tools and materials based on social marketing to define themed messages, actions and stimuli:. External communication about EPODE through a communications plan which includes newsletters, a web site, media commentary, presentations and publications;. Figure 2. At local level Local administrations education, health, sports, culture, etc. To appoint a local project manager who will be the primary contact for the Central Coordination Team and will have the assignment of coordinating the programme at local level;.
To ensure that a dietician and physical activity teacher or an activity leader with physical activity skills are involved at various stages of the programme;. To print and distribute the information and communication documents supplied by the Central Coordination Team to the target groups concerned action sheets, general public information leaflets, posters, etc. To comply with and implement possible adaptation requests made by the Central Coordination Team concerning label requests.
Be the link between the Central Coordination Team, its elected representatives and local stakeholders;. Advocate for the programme with the support of the municipal communication department and elected representatives;. Get in contact with public and private partners that may fund or contribute to the project's funding by providing equipment, human resources, techniques, etc. Attend meetings that make possible the sharing of best practices with local project managers of other communities.
Implementation In recent years, social marketing techniques have become widespread in community-based obesity prevention programmes to promote healthier behaviours. Figure 3. Structured input process The CCT receives inputs from multiple sources, such as official recommendations, expert consultation and literature reviews.
Raising awareness This process leads to the development of a mix of techniques and tools aimed at advocacy for the programme at central and local levels see Table 1. Empowerment of the local project manager and local stakeholders The CCT visits each EPODE site at least once a year for specific follow-up and coaching and for local communication purposes.
Box 4 Examples of actions implemented by local stakeholders. Changing environments Local actions to change the local environments are also maintained throughout the year, although these may not be directly related to the ongoing EPODE campaign. Monitoring and evaluation EPODE evaluation and monitoring is implemented at various levels through the collection of information on process indicators e. Anthropometric measurements The monitoring and evaluation approach has so far included the collection of data on weight and height of all children Dissemination of results Main results of evaluations are reviewed at the central level by the expert committee depending on the set programme goals and programme objectives , and are then communicated to the local project manager or mayor of each community.
Figure 4. Social marketing campaigns While some campaigns are replicated from one country to another see Supporting Information Appendix S2 , the methods and social marketing process must be adapted to recognize specific barriers and utilize appropriate levers and opportunities for behaviour changes in each country.
Evaluation practices To date, all EPODE programmes have initiated continuous monitoring and evaluation practices at central, local and child levels, as well as in certain settings such as schools see Table 2 and Supporting Information Appendix S3. Discussion and future challenges The EPODE methodology has been described in terms of its four pillars: i political commitment; ii resources; iii support services; and iv evidence.
Political commitment To have any chance of success, it is commonly observed that local authorities have to engage in the EPODE programme on a voluntary basis. Resources Public—private partnerships PPPs are one of the mechanisms through which healthy lifestyle promotion initiatives are addressing the childhood obesity problem worldwide 33 , Support services The determinants of obesity at a population level are complex Evidence Concrete, practical and effective implementation of EPODE methodology requires the use of multiple sources of evidence such as ongoing scientific reviews, consultation with experts, interviews with local project managers, pre-testing of messages, monitoring and evaluation of actions at all levels.
Conflict of Interest Statement No conflict of interest was declared. Supporting Information Additional Supporting Information may be found in the online version of this article: Appendix S1. Click here to view.
References 1. Body mass index and overweight in adolescents in 13 European countries, Israel, and the United States. Arch Pediatr Adolesc Med. Spurgeon D. Childhood obesity in Canada has tripled in past 20 years. Br Med J. Trends of obesity and underweight in older children and adolescents in the United States, Brazil, China, and Russia. Am J Clin Nutr. Prevalence of overweight and obesity and trends in body mass index in German pre-school children, — Wang Y, Lobstein T.
Worldwide trends in childhood overweight and obesity. Int J Pediatr Obes. Lobstein T, Frelut ML. Prevalence of overweight among children in Europe. The levelling off of the obesity epidemic since the year — a review of evidence and perspectives. Evidence that the prevalence of childhood overweight is plateauing: data from nine countries. The public health impact of obesity. Annu Rev Public Health.
Wang Y, Beydoun MA. Epidemiol Rev. Secular trends in cardiovascular disease risk factors according to body mass index in US adults. J Am Med Assoc. The need for comprehensive promotion of healthful eating, physical activity, and energy balance. The prevention of overweight and obesity in children and adolescents: a review of interventions and programmes obesity.
Katan MB. Weight-loss diets for the prevention and treatment of obesity. N Engl J Med. School-based interventions promoting both physical activity and healthy eating in Europe: a systematic review within the HOPE project. Downward trends in the prevalence of childhood overweight in the setting of year school- and community-based programmes. Public Health Nutr. Int J Public Health. Commission of the European Communities. White paper on a strategy for Europe on nutrition, overweight and obesity related health issues.
Can you tolerate wide swings in the market, or are you willing to accept potentially lower returns for lower volatility? Determining your risk tolerance is one of the first steps you should take in setting out your investment plan. The very point of diversification is to limit downside losses in difficult markets.
Realise that in the history of sharemarkets, very few events have had a meaningful impact on long term returns. Broadly speaking, in time companies and markets themselves tend to recover from events that may seem overwhelming in the near term. In difficult times, fear is a natural reaction. One of the best ways to deal with it is to get information. Should I adjust my portfolio? To paraphrase Winston Churchill, courage is the value that makes all others possible.
So this, of all times, is an excellent opportunity to avoid panicking. Fear is a great motivator — but a bad guide. A better strategy is to stay calm. People who act coolly will make better decisions than those that act emotionally. You may benefit from the help of a financial professional. Along with determining a prudent strategy for your investments, a professional helps protect you from common pitfalls. Use a documented investment strategy as you may not be as likely to deviate from it — even when markets test our emotions with wild swings.
Rather than trying to time your entry points into the market, utilise dollar-cost averaging to contribute to your accounts at regular intervals. Most superannuation investments benefit from this investment strategy as you are drip feeding funds into your account on a monthly basis. Although it does not assure a profit or protect against loss in a declining market, it provides consistency. Use funds that automatically rebalance, or schedule at least an annual rebalancing of your funds that forces you to sell some investments that have grown in value and buy some that have been out of favour.
Remember, the idea is to buy low and sell high. Resist impulse when markets are racing or retreating. Make sure your decisions are aligned with your long term objectives. Email: avsinfo avsuper. This information is of a general nature only and does not take into account your personal objectives, situation or needs.
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The content on this site may change at any time. If there is any discrepancy between the information in this website and the Trust Deed and Regulations, the Trust Deed will be the final authority. Watch out for behaviours that could threaten your financial security For most investors, recent market volatility has caused some anxiety and concern.
You may recognise your own past decisions in a handful of other frequent behavioural tendencies. Crash of — a time to sell, or a time to buy?
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Heck no! Folks, please don't get turned off to trust deeds because of all of this scary stuff. Trust deed investing can be marvelous. The smart trust deed investor can avoid most foreclosures by simply making sure his loan payments are affordable. That's a great return for a fixed income investment. The secret to successful trust deed investing is actually pretty simple. Don't get greedy. It's not quite enough to invest in trust deeds with affordable interest rates. The borrower still has to be able to afford the monthly payments.
The interest rate on that loan was only 9. But what if the borrower was an old widow, living solely on social security? While she may be able to carry the negative cash flow for a few months, we want to avoid investing in trust deeds where the monthly payments are so high that they financially grind the borrower into the dust. Okay, we only want to lend to borrowers who can reasonably afford the payments. Got it. That's easy. Let's look at the borrower's paycheck stubs and tax returns and verify that he can make the payments.
Unfortunately its not that simple. How can they do this? They are securitizing these loans and getting this paper rated by the rating agencies. The good news is that the market is not perfect. Borrowers don't always know about these Wall Street lenders, so your hard money broker should still be able to find some loans where the borrower can prove on paper that he can afford the payments. Increasingly often, however, hard money brokers are being forced to look at deals where the borrower cannot document on paper the fact that he can afford the monthly payments.
Many of these loans can still be quite good. A good example of such a reasonable hard money loan is a loan to a restaurant owner who is showing only a paltry income on his tax returns, and yet he has tens of thousands of dollars in the bank and very little credit card debt. Another example could be the owner of an unflagged hotel, where many of the guests pay in cash. Another example is the owner of a small trailer park, where the park owns a number of the coaches.
A great many times the tenants pay their rent in cash, and - shhhh - maybe not all of the incoming rent gets reported on the park owner's tax returns. It's true. Foreclosures are losers. Three reasons: 1 If there is lots of equity in the property, the borrower will almost always file a Chapter 11 Bankruptcy to buy himself some time to sell the property.
It never works. We explore points two and three further below. An example will make the first point clear. That's reasonably conservative, right? The borrower falls behind in his payments. The trust deed investor files a Notice of Default. About four months later, just as the Trustee is about to hold his Trustee's Sale, the borrower predictably files a Chapter 11 Reorganization Bankruptcy. A stay of the foreclosure sale automatically springs fancy legal words for, "Hey, trustee, stop trying to foreclose!
The borrower is invariably late in filing his Plan of Reorganization, his bankruptcy attorney pleads for extension after extension, months drag on, and the trust deed investor's loan balance grows and grows as interest accrues usually at a juicy interest rate.
Finally - finally - the debtor's Plan of Reoganization arrives, and the plan is nothing more than to sell the property. Finally, the debtor get serious about selling the property. The debtor is going to sell the property, and everyone is going to paid off in full. Sorry, Charlie, in 37 years in the hard money business and through several hundred Chapter 11 bankrupties, I cannot remember ever seeing a debtor successfully sell his property while in Chapter 11 Bankruptcy.
I'm sure it happens occasionally, but I have never seen it. Why is it so hard for a debtor to sell his property while in a Chapter 11? Sooner of later the prospective buyer will see a title report aka: title commitment. Prominently displayed on the title report will be the fact that the borrower is in bankruptcy. The borrower is in bankruptcy. He is over a barrel.
Why should I bail him out? I'll just say that I was unsatisfied with one of the property inspections, and then I'll buy the property for a lower price from the lender after he forecloses. In the meantime, the unpaid interest accrues and accrues.
Only when there this no more equity left in the property and the lender is guaranteed to take a loss, will the Bankruptcy judge finally grant the trust deed investor's Motion For Relief of the Automatic Stay. You might be thinking to yourself, "Gee, I never knew that trust deed investing could be so risky.
Imagine yourself on the beach as time washes up interest payment after interest payment. Careful here: Before you lay out your beach chair and umbrella, please be sure to read the the serious warnings at the end of this article. You should be noticing a common thread to all of these scary scenarios. Some greedy trust deed investor invested in a loan where the borrower couldn't afford to make the payments.
He then financially gets beat over the head with his beach chair. Don't do that. Most painful trust deed losses take place during recessions. Don't panic and try to sell the property during a recession. You will only end up taking a painful and unnecessary haircut. In the case of great recessions, you'll end up taking an outright scalping. Instead, simply rent the property out and wait for three and a half years.
By then real estate will probably be approaching new highs again, and you'll likely end up making a handsome profit, instead of taking a painful haircut. Not convinced? I could make a good argument that one of the best investments on earth is real estate purchased at the very bottom of a recession. Therefore, rather than sell your foreclosure at the bottom of a recession, hold at the bottom of a recession. It is unfortunately very hard for a trust deed investor to get fair market value for a foreclosed property.
Why is this? Buyers think the lender is over a barrel. Over a barrel? Well, that how the world perceives them. Their depoits are not insured by the public so that the banks can become landlords. Therefore a bank really is over a barrel when it forecloses on a property. It really must sell that property quickly. And everyone knows this. But wait, if you are one of those six private trust deed investors that owns that nice retail building free and clear The OCC can kiss your seat!
Yeah, but the buying public doesn't know this. In their minds, you and your fellow trust deed investors are "a bank", and hence you are over a barrel. How did these potential buyers even find out that the property was a foeclosure? Your disloyal listing real estate broker couldn't wait to spread the word to his cronies that the property was a foreclosure.
Potential buyers started to salivate and rub their hands together in greed. Okay, so what should a wise trust deed investor do if he forecloses? Don't immediately list the property for sale. Fix it up a little and then rent it out. Once you are offering a leased investment, the world will beat a path to your door! An alligator is a property with a negative cash flow, and alligators will quickly eat you alive.
Picture this Sicily, Seriously though, picture this The borrower then becomes an opioid addict and stops making payments. You get notice from the bank that the first mortgage is seven months in arrears, and you are facing another eight months to foreclose and to get relief from the borrower's inevitable Chapter 11 bankruptcy.
And what about the cost of the repairs and the renovations that will inevitably be necessary? And there is no guarantee when the bankruptcy judge will finally grant your Petition For Relief From the Automatic Stay.
The borrower might be able to postpone the sale for another full year. Alligators are a dangerous thing. When there is no definite end in sight, and when you are shelling out big money every month, six months feels like six years. Alligators can drive investors mad. They tend to lose all sense of economic reason. Do you know what happens in real life, at least seventy percent of the time? Moral of the story: Avoid second trust deeds unless you are richer than Crassus.
You foreclose on a property. You are reluctant to throw good money after bad. Some of the most foolish words ever uttered. The roof starts to leak, mold grows, and vandals - after seeing no activity on the property for months - break in and steal the appliances and the copper pipes. Heed these words of warning: Foreclosed property never sells or leases until it is renovated. The wise trust deed investor, on the morning of the foreclosure sale, immediately sends in his locksmith and his renovation contractor.
You don't have to turn the place into the Taj Mahal, but you do have to immediately renovate it. Observable facts of nature: Apples fall out of trees. Water flows downhill. Foreclosed property never sells or leases until it is renovated.
Been there, learned this again and again. It just an observable fact of nature. At that time, you will want to start paying more to get superior quality first trust deeds. The way you "pay more" is to accept a lower yield. For example, your hard money broker may be offering two different loans. Four and a half years from now, you need to start choosing deals like loan number two. Recessions always follow recoveries.
You therefore want to be invested exclusively in superior quality first trust deeds by the time the next recession starts. We can be fairly sure of this because the Great Recession already cut most of the fat buggywhip manufacturers holding on by a shoestring out of the U. On the flip side, you can be much more aggressive during recoveries. Therefore, if the subject property is attractive and less than 40 years-years-old, go ahead and be aggressive on your loan-to-value ratio right now, if this is what it takes to win the deal.
For the first time in 15 years, I believe that we are about to enter a big-time bull market in real estate - perhaps almost a mania. It has to do with the trillions of dollars injected into the economy by the Fed during the Great Recession.
When Americans start borrowing and spending like normal again, inflation has the potential to go ballistic. This section is going to sound like a Ronco television commercial. In truth, however, this section is perhaps the second or third most important among all of my 25 tips.
If you dilly-dally every time you see a good trust deed offering, the remaining 24 tips are moot. You'll never get into a deal. It is no longer easy to find good first trust deeds in which to invest. Hundreds of brand new hard money shops have opened up over the past two years, so the competition for good loans is immense.
This is by far the most competitive market for hard money loans that I have ever seen in my 37 years in business. If your hard money broker offers you a good new loan, you need to call him instantly. You are in a race with the other investors on his list. After you have dilly-dallied a few times, only to find that you called too late, you will learn this lesson.
Cold, Hard Fact: There is far-far more investor demand for good-quality first trust deeds than there are good loans available. You have probably seen the reality show, Fix or Flop , about the guy who flips houses. Juicy gossip: The couple is divorced now, and that former beautiful wife of his is now before? Anyway, our hero in Fix or Flop would go to foreclosure sales, and there would actually be competitive bidding at the foreclosure sale. Yeah, but competitive bidding doesn't happen very often in real life.
When you bid at a foreclosure sale, you have to bid all-cash. If it happened, the second mortgage investor would be rescued. Unfortunately, in real life almost no one ever bids at foreclosure sales. Okay, if we are talking about dirt cheap, foreclosed houses that are desperately in need in of a major renovation, then, yeah, the fix and flip community may be there bidding Ourtside of these dirt cheap houses, there may be vultures and lookey-lou's at a foreclosure sale, but the odds are 20 to 1 that the no one will bid.
The all-cash requirement is one big hurdle. The second big hurdle is that most bankruptcy judges are bleeding hearts. The bankruptcy judge is unlikely to grant the first mortgage lender's Motion For Relief From the Automatic Stay in a Chapter 11 bankruptcy, until the accrued interest on the first mortgage loan has eaten up almost all of the junkie's equity in his house. Do you remember that footnote in Tip 1 where we posed the question, "Isn't that loan servicing fee pretty high?
Let's address that issue now. Here's a wake-up call for you. There were around hard money mortgage companies in America when the Great Recession began. By the end, maybe a dozen of them survived. Actually the real number may even be lower than that. A Trust Deed from Carrington Dean can certainly help you get out of the debt swamp by walking you through the whole procedures and methods.
While making a final decision on whether or not to sign a trust deed, it is best to get expert debt assistance because there are a number of factors to consider, such as:. How Old Is Too Old? You must be logged in to post a comment. What Is Trust Deed? At the end of this time around, the unsecured debt is usually wiped off. Benefits of Trust Deeds With the assistance of an IP Insolvency Practioner , you plan repayment schedules to the creditors over four years.
Therefore it is important you comprehend exactly what percentage this would be A trust deed can have an impact on the particular terms and conditions of your employment; if you are worried about this, you ought to check your agreement or discuss with the HR department Other Points to Consider with Trust Deed While making a final decision on whether or not to sign a trust deed, it is best to get expert debt assistance because there are a number of factors to consider, such as: Your trust deed is a legally binding arrangement between both you and your creditors As long as you adhere to the terms and conditions of the trust deed, the creditors will not take action to recover your debt or make you insolvent You will have to check if it will cause problems for your employment.
A trust deed is actually a form of liquidation and having one may result in dismissal or disciplinary action against employment, such as those in the legal profession or financial services If you are provided with a trust deed and you rent any property, the landlord may terminate the tenancy agreement. Most Recent. By Finance Monthly On Mar 27, 0. You might also like More from author. Prev Next.
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