Category: Investing

Better than “house hunters”

October 10, 2012

Before I rehabbed my first investment property back in my college days, I read and Anibal-Group-LLCs-RealtyNetWorth-Handyman-Short-Sale-old-housereread 2 books by the investing couple Sam and Mary Weir, e.g.: How We Made A Million Dollars Recycling Great Old Houses.    I remember taking a trip east to look up these addresses and see if it was all real – it was !

The books are a bit dated, but the ideas in them are not – still one of the best quick easy but realistic reads for the just starting out investor I can think of. Clients that retain me I actually give them a free copy of this upon request via Facebook.

Fast forward to the HGTV days. I’m not a TV watcher, but these guys seem to be the modern rough equivalent primer for the wannabe/current investor.  Here’s the quip and link:

” Property Brothers.” features people who buy a fixer-upper and renovate it into their dream home with the help of twins Jonathan (the contractor) and Drew (the real estate agent) Scott. 

decent article

← Back

Thank you for your response. ✨

 

income property: a late-in-life retirement plan

September 18, 2012

“Income property can be an important bridge to retirement for those without quite enough to retire in the traditional sense,” says J. Camarda, a real estate investor, Certified Financial Planner, and Chief Investment Officer of Jacksonville, Fla.-based Camarda Wealth Advisors. Because real estate is such an inefficient market, it’s possible to find awesome bargains with a very high return on investment, Camarda says. And if you can manage the property yourself, you can collect more income.

Well, speaking from 2 generations of experience, I must agree. Dad helped put us through college with his investment properties that we would work on in the summer. When I got to college, I didn’t have enough funds to pay for the final year tuition, room and board. So I found a small house, cleaned it up over summer with a bathroom/kitchen gutting, and let 2 roommates pay 100% of my room cost. I held that for 10 years after graduation making a monthly income and having a nice equity build paycheck at the eventual sale. What did I do with the funds ?…bought local rentals for a new income stream closer to home. 30 yrs and some 50+ tenants later I can recommend this strategy if you have a mentor you can call on from time to time. ( ps, we’re available ! )

Feature article link

additional resources:

http://www.hgtv.com/income-property/show/index.html

 

zzzz For real estate, a giant spring clearance sale

March 26, 2011

DO NOT SHUT OFF YOUR COMPUTER !!

YOU WILL BE AUTOMATICALLY REDIRECTED IN 15 SECONDS.

IF YOU SHUT DOWN YOUR COMPUTER YOU COULD DAMAGE OR DESTROY YOUR HARD DRIVE AND ALL ITS CONTENTS!

Despite record affordability of homes, buyers are still spooked and staying on the sidelines

..Existing home sales plunged nearly 10 percent in February to their lowest level in nine years. It was the largest drop since July. Forty percent of those sales were on distressed properties. And new home sales are on track to come in at just 250,000 this year, the fewest since the Kennedy administration, when there were 120 million fewer people in the United States….

Nationwide, forecasters expect house prices to drop at least 5 percent more this year.

 

..A recent study by Capital Economics found that 60 percent of sales are to foreigners and investors, most of them paying cash. In fact, in international real estate circles, the U.S. is viewed as the “new emerging market,”………..

Make Money in 2011: Your Home

November 16, 2010

………..What to Watch: Signs of an improving market: three straight months of rising sales and a decreasing inventory of homes (a six-month supply is considered healthy; today it’s 11 months). A local agent or realtor’s association can supply you with that data.

Action Plan: Buyers. Don’t try to time the market perfectly. Even if prices fall a bit more in your area, mortgage rates could rise later in the year, offsetting the drop. Initially bid about 10% below what comparable homes have sold for over the past three months; go even lower if the area is rife with foreclosures………………….

Michigan foreclosure rates by ZIP Code…

November 15, 2010

Opportunities or scary realities ? The webmaster passes along these thoughts with the post/link: New administration in Lansing should make MI a changed economy in about 3 yrs ( ask me for my source ), the areas with the furthest drops should see the biggest opportunity for gains – we’ll we’ve certainly dropped, and current clients are loading up on rentals w/experiences that they feel favor the landlord….cheap properties/strong rents. Webmaster

Michigan’s foreclosure rate was the 5th highest nationwide for the month of October. About one in every 235 housing units in Michigan received a foreclosure filing. Nevada, Florida, Arizona and California were the top four states, respectively.

ZIP Codes in Monroe (48145), Van Buren (49027), Livingston (48139) and Oakland county (48178) had the highest foreclosure rates in the state last month.

Search this database

If You Don’t Buy a House Now, You’re Stupid or Broke

December 11, 2009

Have you read this in Business Week.  My first thought, wow! harsh! But Mark Roth makes excellent points for those on the fence.  Namely interest rates are at the lowest in 40 years. He noted that in the late 70s, rates hit 18%! In thAnibal-Group-LLC-Realty-Net_Worth-Investment-Toolse 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1st refinance.  Mr. Roth points out the history of previous rates in terms of one’s purchasing power.

I happen to agree with his prediction that as the economy becomes more stable, rates WILL rise to hedge inflation.  My prediction – that by this time next year, rates will have risen 1-2% at a minimum.

On a sale price of $250,000:

  • Assuming a 5% down payment at 5% interest on a 30 year fixed, your monthly principal and interest payment would be $1275.
  • If rates rise to 7%, your payment increases to $1580/month.  Some buyers may be on the fence because they fear prices may drop further. Consider this.
  • If there is a 10% decrease in price and the $250,000 falls to $225,000 in one year, but you wait to purchase and the interest rate rises to 7%, your payment will be $1422.
  • You spend more money per month plus at the higher interest rate, you pay more interest over the life of the loan.
  • Real estate appreciation is always a cycle and as the economy stabilizes, values will level out.  Steve Harney is already analyzing data this is happening in many markets and that this will occur by 2014 in many states. Making a home purchase is still a decision that should be weight carefully and is not for everyone.  One important consideration will depend on how long you plan to stay in the home.

Mark Roth summed up the article, “What I’m trying to impress upon everyone isFaces_Fall_Petosky_byChalet_Sml_button_FRAMED that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

We do NOT think you are stupid or broke if you don’t buy a house right now.  But if you are considering purchasing a home and would like to discuss it, we’d love to sit down and help you weigh options. 2009 may be a chance of a generation.  Source