February 24th, 2009
Yes! YEs! YES!
With a 19% reduction in Foreclosure filings in January compared to our peak in August and a 28% increase in foreclosure purchases. The market is indicating the damage for undervalued properties. Through out all of time when land has had potential to turn a profit, nations have gone to war over such matters. We are in a perfect storm to start collecting a commodity that there is not being anymore made of. When real estate is 30-40% below what its comparable are selling for, it is best not to sit on your hands. Because that are large cooperation with Hundreds of millions of dollars collecting these investment because they know the future value. As individual we are more scared than an entity with vast resource. But this is why you hire someone like me. Because I crunch numbers with more levels of scrutiny then the competition. I run a algorithm with 46 point of analytion. Most software and analyst run 7 to 12. Lets not mess around, with would of, could of’s, and should of’s. The time to invest in now.
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February 20th, 2009
This is a bar chart showing the Sold real estate in King County for 2008.
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February 20th, 2009
In the State of Washington in 2008 there were 19,437 foreclosure Filings. Washington is ranked 24th out of 47 states, 3 states do not allow foreclosure. The Average sale price for a foreclosed property in the state of Washington was $248,803.00. The peak filings in the state happened in August, currently we are 27% lower then the peak filings. Who knows what this 75 billion in foreclosure bailout will bring? I doubt it will yield any real support. Since there has been and will continue to be large amounts of layoffs, more and more people will not be able to afford their mortgages they once could support with their income. This stimulous has come to late, the dominoes have already started the chain effects. The compiled data shows another 12% drop in real estate values before, I believe a bottom will be called. Yes, there will be more foreclosures, but they will come at a slower rate and over a longer period of time. Good luck, and remember now is a great time to start investing in distressed real estate.
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February 3rd, 2009
With dividend cutting in the stock market, where does it really pay off to create residual income? The short answer that come jumping out at me is Multifamily real estate; not commercial; not all residential properties; and most definitely not condo’s. Why not commercial? Well as you see all over the news every day, retailers are hurting bad, so unless you can afford to buy a strip center in a great location and sit on it for the next 2-4 years before you start to see a return…Good Luck. Most retail prices for residential real estate here in the Seattle area is valued to high to give you a 1:1 rent to mortgage payment ratio. In most cases my client that purchases distressed properties we can get a 1:1 ratio and more than sometimes a small net income from that property that will only grow with long term ownership. The reason for not purchasing condo’s for investment is very simple; no matter how you cut it you still have a HOA payment; which will put you upside down every month.
People are losing their homes, having to down grade further in their present rental, or they are not in a position to buy a house. So they still need to live somewhere; and living with your parents until your 30 or 40 might be great for some; but not for most of us. Where are these people going to go? Apartments! Duplexes! MIL! Anywhere cheaper than what those people had. So we are seeing an increasing in demand for multifamily housing which will only grow as the economy get worse. What does multifamily give you…Lot’s of rent. Not only lots of rent, but you have other people paying your mortgage. You also get to raise rent which intern increases your capitalization rate; which increases your properties value! So if you have been thinking about a good safe place to put your money, that actual makes you money. Not only does it make you money, but you start a process of creating Generational Wealth by purchasing multifamily real estate.
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