The State of California's Real Estate Market

Many market conditions point to a healthy return of the housing market in California. Although, prices may not rebound at rates they did in the early 2000's, they also may stop falling any lower than they are now. That is only one reason to buy now.
Other reasons to buy now: Shrinking Inventory, Congress Driven Low Interest Rates, Cash Flow for investors, Homes are selling below the cost it takes to rebuild, etc...

Take a peek at this recorded webinar for a market update, and some great sample REO opportunities.

Foreclosures don't have to be ALL CASH buys

Usually, you have to pay all cash to get some of the best deals in the foreclosure realm.

Below is the webinar presentation from 1.22.09, where we show you how you can buy great foreclosures with little to nothing down.

Inside are examples of New Properties, Bank Owned, and REOs that are remodeled and rented.
There are also examples of portfolio financing and 30 year fixed conventional financing, specific to individual properties. We have solutions for clients that have over four investment loans too.

Importantly, where do we have these opportunities? Inside the presentation, 3 markets are presented. Atlanta, Charlotte, and Memphis.




For more information about properties, financing and market specifics, please email me at Steve@NorthPointGroup.com

The solution to your real estate problem.

Here's a chronology that we are all too familiar with:

1. You bought real estate and it went up in value
2. You found a renter that covered your expenses
3. Time goes by, things are smooth, but your rate went up
4. You begin the pain of negative cash flow, but you live with it
5. You want to refi and you discover you CAN'T because you lost value!
6. Your tenant just informs you that they are moving out
7. You want to sell and cut your losses

Daily I run into this problem with random clients, my past clients, or even myself.

I don't blame people that want to sell. It's in our human nature to flight to safety.
If you put in a down payment, you want to get some of it back before it's too late, right?
Holding on to an investment that everyone says will just keep going down in value, with no exit strategy is just insane. Everyone wants their strategy to be, "buy low and sell high." But if you bought in the last 5 years, and want to sell 2008 or 2009...You are doing exactly the opposite.

So, if you take a look back at an investment and realize you bought high. SELL HIGHER! Don't sell low.

Didn't I say I had a solution?

The solution lies in holding on to the asset, gaining more income, but at the same time, putting the actual plan of selling into action.

The Lease Option.

What is it?
A renter that pays a premium rent with the intent to purchase your home.

Why does this work?

1. Lease-Option Tenant pays more rent. This lessens your cash flow problem. In some Lease Option agreements, the rent is increased by a much higher level, and that rent is given back to the tenant in the form of price reduction, or down payment, or closing costs. Whichever is the norm in that market.
2. Avoids Vacancy. Whenever you sell, it should be vacant. Buyer's do not enjoy looking at homes that are tenant occupied. And in today's market, it will take a lot longer to find a buyer than a renter. But a Lease Option Tenant will live in the unit until they buy it. No sell vacancy period.
3. Sells the property at future value, not today's loss. Tenant will sign up to buy the property at the value you want today, but not until tomorrow.
4. Reduce Realtor Fees. This is almost a guarantee in every market. You can do this yourself, if you have the time to find a renter. You just make an amendment to your rental agreement. Most Property Management companies can do this as well. They will charge extra, but it's heck of a lot cheaper than 2 Realtor commissions.

The pickle that most people are in, where this solution may not work for, are the ones where the loan has gotten out of control. Rate is adjusting 2pts every time, or the loan has a balance due, or the Neg Am is at recast (if you don't know what this is... good :-))

If you fall into this category, a loan modification can solve that problem for some people.

If you are facing $400 negative output every month on your investment property, all you have to do is Lease Option for $200 more than your current rent, and Loan Modification for $200 off your current payment.

Now you are breaking even again. I am not going to tell you that it is easy. But losing $50,000 is not easy to swallow, either.

New Construction, Bank Owned and Financed at low down

Total Down at closing = $2,000
$175,000 Price. Appraised $195,000.
Originally priced well above $200,000
Builder could not sell in time before the bank took them back. Now the bank wants to finance for you, Owner or Investor, for $2000 down.

Located on a quiet street in Atlanta Metro, Georgia.
These are big 2000+ square feet, 5 bedroom, 3 bath houses.
Complete move in ready, blinds, fridge, landscaping.
If you want to rent it out, or rent it, the market rent is $1200.
2 Homes just like this are rented for $1200 in the neighborhood.
The Mortgage payment will be $948 for the next 3 years.

If you live in Atlanta, you know about the wonderful reasons to live there.
Which is why over 1 million people have moved there in the last 7 years.
The most growth for any city in the US during the same time.

Put up $2000, and receive $100 per month in return

How about this for a business opportunity?

1. You invest $2000, up front
2. In return, you will get between $89-$163 per month in return
3. You will have your $2000 back in 1.6 years.
4. You keep receiving payments until you ultimately own a $118,000 asset
5. At which point, your monthly receivalbe will now increase to $600 per month
6. Each year, your monthly income may increase 3%, depending on market conditions
7. Each year, the value of your asset could also increase about 3% per year depending on market conditions

Yes, this is a Real Estate Transaction, and it sounds too good to be true.
But it’s not. Take a look at this example:

Just under 10 miles from downtown Atlanta

$118,000 home for $90,000,
That’s $2,000 down and $88,500 borrowed at 6% 30yr fix.
WE CAN FINANCE THESE TERMS
Rents are $925 for similar properties
Beautifully remodeled.
Previously foreclosed on, provides for deep discounts.

Georgia gains the 4^th most population in 2008. US Census.
Atlanta is home to the world’s busiest airport, and 22 of the Fortune 1000 HQ.

Steve Roesch
Market Advisor
Cell: 503-318-6351
steve@northpointgroup.com

Low Risk Foreclosures for $7,000

Let's talk foreclosures...

What's on your foreclosure wish list?

1. Deep Discounts
2. I don't want to buy bulk
3. Built in Quality Tenants with Cash Flow
4. No Surprise Liens
5. No Repairs Needed
6. And I want the ability to use financing for leverage

The majority of foreclosures usually come with a discount. But you're lucky to get one other item off the wish list. And, the deepest discounts are usually found if you buy in bulk.

Everybody wants to get a deal.
But if you have to go Deep into your pocket, to get a Deep discount, it's not much of a Deal.

Let me show you how you can acheive your foreclosure wish list and still have a Great Deal.

Example:
Foreclosed Duplex
Wholesaler Acquires in Bulk for Deep Discount
Title Cleaned, Property Rehabbed, Professionally Placed Tenants.

$130,000 appraisal

Numbers of the Deal:

$104,000 Price and Only $7,000 Down
$1150 Rent Per month, Total for both sides
$165 ++Cash Flow per mo. after all necessary expenses and foreseen maintenance

$7,000 is the total cash investment for Down Payment, repairs, lease up expenses, start up vacancy, etc
$97,000 is the loan with 30 year fix loan at 6% rate (rates change daily, not guaranteed)

Where are these Deals located?

We have similar programs like this in several markets across the US.

This duplex is located in the Atlanta Metro. Specifically, Covington GA, just 30 minutes East of downtown Atlanta.

Atlanta Accolades

One of the highest ranked cities for jobs and population growth in the country
over the last decade.
Huge Rental Demand. Nearly 50% of residents are
renters.
Home to the World's Busiest Airport and HQ for many
mega-corporations like: CNN, Coca-Cola, UPS, Home Depot, Delta, and more. About
27 of Fortune 1000 are HQ here.
Lots of Government jobs including, GA State
Capital, Military Bases, Federal Reserve Bank, and the CDC (center for disease
control)
Home to 5.1 Million people, and attractions for all, such as: NFL
Falcons and Major League Baseball Braves, SIX Flags Amusement Park, Nascar at
Atlanta Speedway, and the Nations Largest Aquarium.

Call me for more Markets and Deals, or Follow the Blog

Jacksonville, Florida. Great Investments.

Jacksonville appears to have suffered less real estate pricing volatility than most Florida markets. The pricing correction has appeared to slow down in its decline, and many submarkets have actually seen small month over month increases. (study by DataQuick 12/08)

Would I say buy? Yes, But, Buy at a discount!

Reasons Jacksonville is different than other markets:

1. Diverse Economy= Government, Military, Distribution, SeaPort, Financial, Manufacturing, Retail Headquarters, Medical and Telecom


2. 7 of the Forbes 1000 are Headquartered in city of Jacksonville. 2nd most in Florida behind Miami


3. 3rd most population growth in Florida from 2006-2007. Above Tampa, Orlando, and Fort Myers.


4. #8 Best Place for Real Estate Bargains. Forbes Magazine 2008


5. #3 Best City in US for Jobs. Forbes Magazine 2007


6. 9.5% Population Growth 2000-2007

Here are some statistical demographics on the area:

1. 12th Largest city in the US. 805,000. 1.5 million in the MSA


2. Median Home Price $175,000


3. Median Household Income $50,000


4. JaxPort (international foreign trade zone) supports 43,000 jobs


5. US Navy supports 35,000


6. Home of Fidelity Nationa Financial Headquarters


7. Home to PGA Tour Headquarters


8. Home to NFL Franchise -- Jaguars


9. Hosted 2005 NFL Superbowl

Many cities of similar size are not considered for an NFL Franchise, let alone considered sufficient to support a Superbowl.

Jacksonville has an economy strong enough to support and attract amenities that some major markets cannot.

Its location on the coast increases the quality of life component, with less fear of the hurricane factor. Jacksonville waters are a cooler temperature than the rest of Florida, and it is located North of the Gulf Stream. No hurricane has come close since approximately 1964, therefore the insurance rates are lower, making this a better cash flow investment than other cities in Fl.

Where to buy in Jacksonville:

• West of the city. East is pricier because it's coastal. The median income is a tad low for the median home prices. To buy conservative, you want to invest where it is most affordable for the majority of home buyers.


• Near the 295 Loop. Most of the jobs are downtown and at the Ports. JaxPort has 3 major locations and the Naval Bases have two. Commute to all 3 job sectors is best near this major arterial freeway.

Property Profile:

Remodeled Foreclosures, allow you to purchase at discount, without the headache of repairs, extra liens on title, and large capital investments. Companies, NorthPoint, can help find the safest investment, complete with improvements and with tenants already in place.

Be ahead of the curve.

Steve@NorthPointGroup.com
503-213-3550
rushsteve1 @ skype
http://www.linkedin.com/in/steveroesch