Wait for it... Wait for it... Too late

By the time you know the market had turned the corner, you are too late. Because it already happened.

The article below is about what's happening across some cities in the US. And its happening in many parts of Portland right now too.

As reported in the Bloomberg/Businessweek article today 3/27/12.  see full article

Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers. The number of contracts to buy previously owned homes jumped 14 percent in February from a year earlier, the National Association of Realtors reported yesterday.

Here's an interesting portion of the article talking about Palo Alto and the Facebook millionare hype.  By the way, I've seen this Realtor speak at a conference 2 years ago, and he's not what you'd expect from a stuffy luxury home Realtor.  But he is exactly who you would expect Mark Zuckerberg to have as his agent.

Competition Increases

Agents encountered multiple bids on about half of offers in Seattle, Boston, Washington, D.C. and Oregon this year through March 15, said Tim Ellis, real estate analyst for online brokerage Redfin. In the San Francisco area, Redfin agents reported that three of four offers involved competition, he said.

One home in Palo Alto, California, received 38 offers and sold for $1.65 million, or $452,000 more than its asking price, said Ken DeLeon, a real estate broker in Silicon Valley since 2002. Another client paid $2.56 million for a home in 2007 and is listing it for $3 million, with the expectation of receiving higher offers, he said. The seller wants to use the proceeds to buy a home in Saratoga, about 18 miles southeast of Palo Alto, where the market hasn’t heated up yet, DeLeon said.

Prices are hitting all-time highs, above Palo Alto’s 2007 peak levels, in the 94301 and 94306 ZIP codes, as buyers rush to purchase in advance of an expected flood of newly minted millionaires when Facebook Inc.

Can't fight the Wal-Mart anymore

Whether we like it or not, Wal-Marts are coming. 

Portland's adversity toward the big box chain has kept the mega company and it's low prices and controversial/alleged low-waged-underpaid-discriminated employees, mostly outside the cities limits.  With the exception of SE 82nd and the one in Cornelius.  But not any more.  Wal-Mart is anouncing, not just plans, but acquisitions, and lease-ups in 10 identified sites already.  And plans for 7 more. 

Those 2 near Portland must be doing very well, for Wal-Mart to want to expand that big, and that fast.  Below is the list of sites you can expect to see a Wal-Mart pretty soon.  One could be right in your neighborhood.  Don't be fooled by their strategy to call these new stores "neighborhood markets".  They are just smaller versions of the BIG BOX. 

I guess on the bright side, they will create a lot of jobs.  Or replacing jobs.  Look at what they are replacing.  We've lost a lot of Hagen's, Zupan's and Gi Joes.  Even the famous empty WHOLE FOODS in Lake Oswego will be a new Wal-Mart!!!  Do you think these same employees are going to put on the blue apron?  Do you think the same clientele that attended these shuttered stores will be walking right into the sliding doors of hospital white floors and aisles of anonymity?  Probably not. 

I guess I am just sad, that our economy has gotten so bad, that we are replacing character with that sterile sameness.  It's so mid 70's.  

1. Raleigh Hills: Ex-Zupan’s at Beaverton-Hillsdale Highway and Apple Way.
2. Lake Grove: Ex-Whole Foods at Boones Ferry and Jean roads.
3. West Linn: Ex-Lamb’s Thriftway at Highway 43 and Hidden Valley.
4. Gresham: Ex-QFC at 182nd and Powell and ex-Food 4 Less Powell and Burnside.
5. Beaverton: Ex-Haggen’s at Southwest Murray and 147th.
6. Vancouver: Ex-Fred Meyer at Fourth Plain and Grand; and ex-Winco at Highway 500 and Thurston Way and land parcel in the Salmon Creek area at 134th and Interstate 5.
7. Oregon City: Land at Molalla Ave. and South Beavercreek
8. Tigard: Southwest Greenburg Road and Highway 217.
9. Oak Grove: Ex-G.I. Joe’s at Southeast McLoughlin and Concord.
10. NW Portland: Ex Ashley Furniture.  173rd and Cornell.

The Economy Hit The Reset Button

Are we in the middle of just another market cycle?
Or is this a full blown reset of the current economy and the way we know it?

If the best advice is to invest in the valleys and troughs of a normal business cycle, wouldn’t you rather buy commodoties at the bottom of the biggest trough in this generation’s history?

Steve Roesch
Market Advisor
http://northpointgroup.vflyer.com/
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