Robert Campbell Economic News

Had a combination of fun and learning hanging out with Robert Campbell yesterday afternoon and attending his presentation at the Holiday Inn in San Francisco sponsored by BAWB.

Robert has a great book called Timing the Real Estate Market - invaluable to assisting investors in assessing market timing.

Two new properties in escrow - one which will be re-sold with financing and one which will be a long term rental.

Our Latest Homeowners Signing Papers

We were thrilled to be able to put one more family into homeownership before the year end. The young couple are here signing their documents - this was a seller financed transaction using an All Inclusive Trust Deed to wrap the underlying financing. How the numbers worked were as follows:

• Sales Price: $249,900 with $22k down and interest rate of 7.5%.
• Purchase/Closing/Rehab: $179,000.00 (Overall profit of $71k combined cash/paper)
• Monthly payment to them: $1595.00 plus taxes and insurance
• If renting: $1995/month
• Benefits to them - payment less than rent, PLUS write off for interest payments.
• Benefits to Investor: No responsibility for repairs/taxes/water/sewer etc.

My favorite type of deal :)

Signing out - Caroline Hegarty

http://www.solanocommunityinvestorsgroup.com/

Local News and New Deals

Watch out for an interview with some of the women from Solano Community Investors Group coming up in January in a local online community examiner.

Website Address: www.examiner.com/x-2336-Vallejo-Community-Examiner

The online newspaper features local events, businesses, activities, restaurants etc. Three of us were interviewed about our business model of combining investors' capital with the provision of homeownership to those who cannot qualify conventionally.

The interview will be published some time in January.

In the meantime we had two offers accepted - $75k for a 2/2 1100 sq ft condo in Bencia and a 4/2 1700 sq ft townhouse in Vallejo for $110k - rents are $1200 and $1650 respectively. Picture of 4/2 on Daniels Avenue above.

Well, that's it for today. Caroline Hegarty signing out!

Recent Activities

Well, we have had NO offers on our house listed on the MLS even though we dropped the price to $219,900

We do not want to have the house vacant going into winter, so we are seller financing the house to a lovely couple and their two daughters who are moving from Burlingame.

Our deal will be a purchase price of $249,900 with 10% down, 7.5% full amortizing loan with a five year balloon. This will give them a payment of approx $1600/month plus taxes and insurance.

They are moving from a rental apartment where they have been paying $2200/month - win/win for everyone.

Looking to pick some new properties, but market has shifted considerably in several ways - huge reduction in inventory, very slow response time by banks and an overall very cautious buying and selling environment.

On pins and needles waiting to see what 2011 has in store!!

Rehabbed House on MLS

Latest acquisition was 4/2 1900 sq ft 2 storey home in quiet cul de sac - nice part of town.

Bought for $145k, $25k in rehab and listed for $229,900.

Two open houses, but no offers yet - alot of inquiries to rent, rent to own, or seller finance.

Will wait for a few more weeks to see what happens.

Winding down for rest of year to evaluate all of the recent turmoil in the big banking world.

Will be spending alot of time planning and preparing for next year to see if I can find some predictability in this mad environment!

Eviction Process

So had my first two evictions this year. One was smooth, as in defaulted. However, she was still there when I met the Sheriffs one morning but left fairly easily. Called me to make appointment to pick up her stuff in a UHaul van one week later, and actually left the place clean - wow.

The other one - not so lucky. Dramatic personality shift from the nice God-fearing woman I rented to! Gave ME notice that she was moving due to mold. Still there after 30 days. Left before Sheriff move out, but really trashed the place - $3,500 later, now rented again.

I will definitely not be writing a book called The Joys of Landlording.

I Survived Real Estate 2010 Event

Just came back from Los Angeles where I attended a great event put on by the Norris Group to benenfit Breast Cancer.

Over 400 people attended and the event was broadcast on You Tube.

After the dinner, a panel of experts were interviewed regarding their opinions on where the economy is headed both generally and in terms of real estate in the coming years.

The panel included Peter Wayman, Sr. REO Sales Director for Freddie Mac, Sarah Letts, Director of Credit Loss Management for Fannie Mae, and Joseph Magdziarz
President Elect of The Appraisal Institute.

You can find the recording of the live event on You Tube or on the Norris Group's website.