1031 Houses

Investing in Foreclosure Properties

admin — Sat, 18 Apr 2009 14:24:08 +0000

I just heard the commercial on the radio and I am ready to make my millions in Foreclosure Real Estate!!!

Sound familiar? Anyone can do it - right? Maybe, but more likely NOT. You buy a property at a deep discount and just turn around and sell it at Fair Market Value. Correct? Or is the primary reason that you bought it at a deep discount still there when you go to sell it? With the proliferation of the Internet and Information, any subsequent buyer will know what you paid, when and to whom. They will base the price they are willing to pay upon that information….

http://www.creonline.com/money-ideas/mm-056.html

Columbus Housing Market Ranked Amongst Most Stable!!

admin — Wed, 25 Feb 2009 21:36:54 +0000

PMI Mortgage Insurance Company, who understands housing risk as well as anyone, has ranked Columbus Ohio Metropolitan Area as one of the most stable in the country. They traditionally insured conventional mortgages with less than 20% equity. See page 6 of the attached report

http://www.pmi-us.com/media/pdf/products_services/eret/pmi_eret09v1.pdf

Lower Interest Rates = Better Cash Flow

admin — Mon, 01 Dec 2008 21:27:33 +0000

Interest rates on 30 year mortgages have dropped .75% to 1.00% in the last week!! NOW is the time to buy. These are historical low rates. Based on our experience, rents generally lag anywhere from 9 - 18 months behind rates, so invest now to lock in these great rates and lock in your cash flow. Often, single family rental rates never adjust downward to reflect the reduced interest rates. Single family rental rates have generally moved up in good times and just stayed flat during bad times. Interestingly, we are seeing rents increase because so many people are unable to buy so demand for these properties has increased.

Net Jets and Flight Safety Bring High Paying Jobs

admin — Thu, 13 Nov 2008 15:11:12 +0000

Warren Buffet believes in Columbus. And why not? It’s a great city - affordable, plenty of arts and nightlife, great hiking all over the place, great schools.

These are exactly the people we want coming to Columbus - young, educated and well paid professionals - alot of engineers. We all hear the bad news. This is great news and we are seeing an influx of relocations. Alot of these folks want to Lease to Own - they might have to sell a home elsewhere or just “test the waters.” Either way - we get quality tenants who often turn into buyers.

http://columbusretrometro.typepad.com/columbus_retrometro/2008/07/netjets-job-cre.html

Columbus - A Great Place to Live (AND INVEST!!!)

admin — Mon, 20 Oct 2008 20:17:14 +0000

Once again, little “Cow Town” Columbus has received national recognition!!! We were ranked the SIXTH in the ”Best Bang for the Buck” category and SECOND in “Median House Price/Median Household Income” category.

http://www.forbes.com/2008/10/10/cities-buck-economy-forbeslife-cx_ab_1010realestatebest_slide_6.html?thisSpeed=20000

We also have the prestigous Battelle / Ohio State “technology corridor” that helped us rank FIRST in the country in “Up-And-Coming Tech Cities.”

http://www.forbes.com/entrepreneurstechnology/2008/03/10/columbus-milwaukee-houston-ent-tech-cx_wp_0310smallbizoutlooktechcity.html

More Tenants

admin — Mon, 22 Sep 2008 12:22:42 +0000

Once again, the Columbus Dispatch had proclaimed what we have been seeing every day - the “pool” of potential tenants is growing dramatically.

Foreclosure Puts More Folks Back Into Rentals (September 21, 2008)

http://www.dispatch.com/live/content/local_news/stories/2008/09/21/RENTERS.ART_ART_09-21-08_B1_V8BCQRL.html?sid=101

“In 2005, the city’s apartment vacancy rate was 12.6 percent; this year, it’s 7.5 percent, according to the Danter Co., a Columbus-based real-estate consulting firm.”

Cash Flow, Cash investment and Leverage

admin — Fri, 29 Aug 2008 20:14:51 +0000

Think of it as a lever. More cash investment up front equals more cash flow. It is really as simple as that. Everyone WANTS no cash investment and lots of cash flow. Sorry…. That’s why KKR and alot of the Merger & Acquisition deals of the late 80s failed. They overpaid for a company and saddled it with too much debt AND at too high an interest rate. The whole thing is bound to fail. Same thing goes for real estate. Don’t plan on putting no money down AND not having a cash cushion. Anyone who “sells” you anything else is giving very bad advice. If you put 50% down on a real estate investment, then you don’t need a cash cushion because your Principal and Interest payment are low relative to your net operating rental cash flow. If you put nothing down, more than likely, you have negative cash flow which can normally be more than offset by your income tax savings. Sound complicated? it is, and isn’t. Just talk to a knowledgable and experienced professional like an accountant and they can explain how all this ties together.

Freddie & Fannie Bailout

admin — Thu, 21 Aug 2008 15:57:44 +0000

it’s coming. Freddie Mac and Fannie Mae are goign to be bailed out and put under strict governmental control. What does it mean for Investors? Tighter lending standards for homebuyers and consequently, less buyers qualifying for loans. So, more tenants who would have qualified for mortgage loans…. Eventually - 18 months, 36 months???? Lending standards will be relaxed and the tenants will qualify for a loan. Guess what home they will want to buy? The one where they have lived, raised their families, made friends with the neighbors, sent their children to the neighborhood schools, made improvements, etc.

Down Payment Assistance Gone

admin — Thu, 07 Aug 2008 13:09:24 +0000

The elimination of downpayment assistance (DPA) substantially increases the need for rental homes. Too many Gen X and Gen Y have not saved any money for a downpayment. They have not been taught the need to save - they want instant gratification and are “willing” to do it on credit.

The new Housing Bill:

Bar the FHA from insuring mortgages in which the borrower’s down payment is paid by the seller, beginning on Oct. 1, 2008.
40% of all FHA loans use DPA
FHA says seller-funded down DPA’s present the single biggest challenge to its solvency. Borrowers who take part in DPA’s go to foreclosure at nearly three times the rate of borrowers who put their own money down.

Cost Segregation

admin — Fri, 01 Aug 2008 19:23:26 +0000

Want to increase the tax benefits of your rental propeties????

Substantially increase your depreciation deduction by segragating all the components of the property - the whole way down to elecrical outlets. There are 3 classes for depreciating residential rental homes - 5 years accelerated, 15 years accelerated and 27.5 years straight-line. Guess where you want the most of the property depreciated??? in the 5 year category, where you can deduct a whopping 52% in the first 2 years or around 5% for 27.5 year category.