investment: California Notice of Default Law
- 02/20/08 06:29 AM
I was just asked this question and had to look it up.I figured it was worthy of a post.In California, if the property is in Notice of Default (NOD), and the purchaser does not occupy the property (Investor), the transaction becomes what is called an Equity Purchase.That's important because there are specific rules that need to be applied and adhered to. Here's the actual question:"I plan on buying a home that is in foreclosure and flip it, But I just heard the seller (homeowner) has a 2 year right of rescission. What does that mean? Do I have to hold the … (6 comments)
investment: Real Estate Investor ?
- 06/05/07 03:51 AM
This is Part One in a Three Part series The System Have you ever seen one of those signs and wondered?"We Pay CASH for Homes!"or the latest incarnation..."Real Estate Investor Apprentice Wanted"Wonder how all these people could pay cash for all those homes?Wonder why the same looking signs have popped up everywhere?Wonder why if they have so much money, they can't afford better signs or advertising?Wonder why if they are seeking an Apprentice - why are they driving a beat up Pinto?I have too.So a little over a year ago I paid good money to go to this big Real Estate shin … (3 comments)
investment: Existing Home Sales for April 2007
- 05/25/07 03:35 AM
The National Association of Realtors just released the data for the existing home sales nationwide. I have a bias towards the "Existing" figures as opposed to the "New" home sales which were reported yesterday.The Existing numbers are based on facts. Sales that have closed. They also account for 85% of all sales.The New sales figures are based on contracts that have been signed. It's a fuzzy number as an estimated 40% of those contracts do not go to fruition. Read more about the difference here: LINK
Here's a quick view of the numbers: Overall Existing Home Sales for April were down 2.6%This represents … (0 comments)
investment: Existing Home Sales UP!
- 04/03/07 10:48 AM
Good News!The National Association of Realtors (NAR) released their numbers for Existing Home Sales in February.Internally this is called the PHSI, or Pending Home Sales Index.It tracks the number of contracts signed.Nationally, the number of sales of existing homes rose in February .7% over January numbers. The biggest gains were in the South with a gain of 4.5%The data surprised market watchers nationwide.http://www.realtor.org/press_room/news_releases/2007/phs_feb07_show_effects_of_weather.htmlHere's a breakdown of the numbers nationally and regionally.http://www.realtor.org/Research.nsf/files/PHS.pdf/$FILE/PHS.pdf But life is never that simple is it? Here's the Bad News...In the Western United States, we didn't see the same jump as the rest of the Nation.Instead we saw a DECLINE of … (0 comments)
investment: East Bay, Hot Bed of Defaults
- 04/03/07 09:43 AM
I read an article in the Contra Costa Times yesterday.It was also covered by all the news stations."Loan Defaults are the Worst in the East Bay!"Hey, I can see that.I blame all sorts of people here: LINKGood people have been mislead into signing for more house than they can honestly afford.The payments on the loan changes and viola!"Honey, we can't afford to pay the mortgage this month"And since money is the primary cause listed in divorces - guess what else the east bay might soon be leading in?I was talking to a divorce attorney the other day and he was eagerly … (0 comments)
investment: Commercial is Different
- 03/19/07 03:14 AM
My main project today is to get to started on a 6 Unit Complex refinance. (Obviously this isn't the property)This is a new client. We met and discussed ideas last week and very late on Friday she bought in the paperwork I requested.Since she is a new client, I'm starting from scratch.I don't know who did her original loan - and that really doesn't matter.What does matter is she has a loan now that is rapidly painting her in a corner.She says...She has a 5 yr ARM.Her rate started at 9.75% the first year.Her rate bumped to 11.75% the second year.Her … (6 comments)
investment: Volatility Kills
- 03/05/07 02:42 AM
Volatility.In Chem class we learned volatility was about how fast something went from liquid to vapor."The higher the volatility the faster our beaker of blue stuff evaporated."I know that because that's exactly what Susie D. (my lab partner) wrote down for Problem 17 on the big test. And that's exactly what I wrote too. Ok, so I was a "team" player.And then that led to Mr. Wisner bringing in my parents for a... shall I use the word, "Volatile" meeting?So there I was, hopelessly wishing that any of the participants, Mr. Wiz, my parents, or even myself, were a little more volatile.I … (2 comments)
investment: Fuzzy Numbers
- 02/28/07 05:21 AM
Each month we get two reports back to back.The Existing Home Sales Report and the New Home Sales Report.While they sound like they are pretty much the same they are indeed drastically different.The Existing Home Sales Report derives it's figures and data from The National Association of Realtors. It's based on exactly what you might think it is, the number of existing homes sold over a given period of time.Existing home sales account for roughly 85% of all home sales.The New Home Sales Report doesn't come from N.A.R. - it comes from the builders themselves.It's what we call a fuzzy number.It's … (0 comments)
investment: The "Right" Answer
- 02/26/07 09:28 AM
As I was talking to a Realtor the other day on Broker Tour,They had happened to see me on the News where the host had asked me the question, "If you make $90,000 a year and have $25,000 in the bank can you afford to buy in the Bay Area?"The Realtor and I were having a lively discussion about what the right answer would or should be.I was contending there is actually two correct answers, the TV version and the Reality answer.The TV answer is short. It's a broad based statement. It's a generalization. It comes with obligatory YMMV stipulations (Your … (0 comments)
investment: The Lead Gen Biz - Part One
- 02/12/07 11:11 PM
So I caught a little flak over my explanation of the LTree and it's business model.LINKNo biggee.If I get this right, I am the "Flak-er", and they would be the "Flak-ees".The Flak-ees reactions ranged from the standard issue knee jerk "Duh", to eye opening wild disbelief.Let's do this in two parts: Part One - the answer to the Dee-Dee-Dee side, (Carlos Mencia reference)...Some of the Flak-ees maintained that the Tree was and is doing what it needs to do to stay in business. In order for the Tree to continue offering the great services it does to us poor consumers, they need … (7 comments)
investment: Scarcity is a Value
- 02/06/07 03:42 AM
Over the weekend we held our Investing in Real Estate: 101 seminar.We filled the big room of the Walnut Creek Marriott. 150 people if I heard right.No room for walk ins.I heard nothing but good comments so far.One of the best things (I think) in doing these seminars is that each and every person has a card they can turn in before the end and have their question answered. They don't have to stand up, they can ask anonymously, and get a real answer to maybe something they were afraid to ask.The question came up, "Where would you suggest investing in?"It's … (7 comments)
investment: BUY, SELL, HOLD
- 02/01/07 02:56 AM
We're doing another Investing in Real Estate 101 seminar this weekend.This one will be at the local Marriott in their largest room.And guess what?I just found out we're overbooked!Not only are we sold out, we're really oversold!"I'm sorry Mr. and Mrs. Smith we're going to have to bump you to a later flight, Oooops, I mean seminar."Room capacity is 120. Let's just say, we're going to be cozy in there!The good news: More than 100 people are going to get some solid education in investing.The bad news: You are probably not going to be one of them.So just in case, here's … (1 comments)
investment: FOMC Meeting today and tomorrow
- 01/30/07 02:12 AM
As you may know, the Fed's are meeting today.It's a two day meeting, where they'll announce tomorrow.The statement will be released at 11:15 Pacific time.So there's a pause in the markets today.We've seen the 10 yr. react in a general upwards direction.It opened this morning at 4.87%It's still a matter of supply and demand but a simple and general rule to remember when it comes to rates is this:Good economic news = Higher ratesPoor news = Lower ratesIt's a gross generalization, and it still boils down to supply and demand, but it's something to put in the back of your head … (0 comments)
investment: The Right Answer
- 01/26/07 07:35 AM
As I was talking to a Realtor yesterday on Broker Tour,They had happened to see me on the 4 PM News where the host had asked me the question, "If you make $90,000 a year and have $25,000 in the bank can you afford to buy in the Bay Area?"The Realtor and I were having a lively discussion about what the right answer would or should be.I was contending there is actually two correct answers, the TV version and the Reality answer.The TV answer is short. It's a broad based statement. It's a generalization. It comes with obligatory YMMV stipulations (Your … (0 comments)
investment: Existing Home Sales Report
- 01/26/07 07:32 AM
As promised, here's a better look at the existing home sales numbers with an eye towards the bay area.If you were watching the headlines yesterday, you saw the world coming to an end!It's the natural sensationalistic thing to do.Is that a word?It should be!Headlines like:"Existing Home Sales Tumble in 2006""Existing Home Sales Hit 17-Year Low While Mortgage Rates Rise"We even have the sky falling overseas,"European Markets Fall On US Existing Home Sales Data, Weak Oils ..."Headlines like that would lead you to believe.In scanning the headlines an came across this little tidbit:Two different news agencies, two different takes on the same … (0 comments)
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