Other Markets and First Mortgages

This post is just a reminder that we do have opportunities in other markets, some California, and some out of State.

Right now I am concentrating on Vallejo primarily because I live here, it is still Bay Area, the prices are super low and cash flow is great.

Additionally, it really is prudent, in my opinion, to invest in California right now as it has historically shown consistent appreciation over time, and does not usually cash flow (based on 20% down at 6.5% interest or so) in most markets.

We will ocassionally send out deals in other cities and/or States via our registered user list at http://www.reiinformation.com/

Also, if anyone is just looking for passive income with a first lien on cash flowing real estate, we can offer a 9% interest only payment for 3-5 years.

MARKET UPDATES

Looked at some more properties yesterday and drafting some offers. In terms of numbers right now in Vallejo (my home town), there are currently approx 700 listings, down from 1400 in December. The banks seem to be pricing alot of properties attractively, and there are still multiple offer situations occurring.

One of the properties I looked at yesterday is a 4/2.5 townhouse, 1700 sq ft, built in 2003. Were selling for $375K and currently listed at $114K. Rents are $1700 for such a house - beats the 1% rule!!!

Of course, there are alot more REOs in the pipleline, so it will be interesting to see what happens with the future batch brewing. Some of the new programs/stimulus package incentives may cause a slow down.

First time homebuyer credits ($8k Federal and $10K State) are likely to influence some buyers who have been waiting on the sidelines (have spoken with several in the past few days).

Additionally the federal incentives being offered to loan companies to modify loans, changes in the bankruptcy rules that allow a judge to change loan balances etc., may all work towards a pattern of stabilization.

Getting ready for REO Bus tour next Saturday 21st March - have 3 rent to own tenants coming along in the hopes of getting them matched up with an investor to create a win/win situation.

Busy Week

Well, it has been a busy week in real estate. The inventory here in Vallejo, CA has shrunk by 50% since December causing multiple offer situations.

Have been outbid on 4 properties in the last week - ouch! I hate the "highest and best" shennanigans.

Went to a RE investment club event where two young guys were talking about negotiating skills, both in real estate and in life - very impressive. Signed up for their 3 day event at the end of this month - at seminar special of $97!!! Probably the cheapest seminar I've ever signed up for.

Getting ready to do an REO bus tour on Saturday 21st March. Have a 47 seater bus booked. Lining up some local leaders to be available to meet some of the out of town investors coming to look at investing in some of the properties here.

Looked at 5 new properties yesterday and working on making offers with some joint venture partners. For more info on JV program, see our website at www.reiinformation.com

Also, a reminder of a great tool I use for analysing CA properties - www.krunching.com

Stay tuned!!

Great Weather for Plumbing Issues!

More plumbing issues during the past few days. Just spent 3 hours this morning on the latest issue with a leak from an upstairs bathroom.

Had to go to three different plumbing supply stores to get that naughty looking part on the left - Home Depot did not have it!!

Also have leaking faucet in another unit, so back to Home Depot for new faucet, which will be installed tomorrow morning.

On a related issue, another unit where there were drainage issues causing standing water under units has just had $7k worth of new drainage work performed (paid for by HOA thankfully!) and we are now waiting on a determination on whether or not the furnace will work (tenants living with pluig in heaters for past 6 weeks - thankfully they are understanding of the circumstances).

If it does not, we will be no doubt going up against the HOA to determine who will bear the financial responsibility for repair or replacement.

On the admin side of real estate, my hair is getting more gray by the day! Some really time consuming issues including HOA receiving checks and not cashing them, then sending account to collection with no notification to owner (one of my Joint Venture Partners - learn more at http://www.reiinformation.com/).

More fun stuff when evaluating property tax situation on a property to be told by tax assessors office that there is no such address - Must advise tenant that they are living in a Bermuda Triangle type property!!!

Looking at more houses today and working hard to keep updated on what is happening in industry with all of the new incentives for first time homebuyers, new modification packages etc. Attending several real estate investment club meetings in the coming weeks to promote my Vallejo REO tour on 21st March.