Principle Real Estate http://www.prehomes.com Just another AIOS2 site Wed, 18 Apr 2012 21:26:27 +0000 en hourly 1 http://wordpress.org/?v=3.1.2 Shadow Inventory- Myth or Reality? http://www.prehomes.com/2012/04/18/shadow-inventory-myth-or-reality/?utm_source=rss&utm_medium=rss&utm_campaign=shadow-inventory-myth-or-reality http://www.prehomes.com/2012/04/18/shadow-inventory-myth-or-reality/#comments Wed, 18 Apr 2012 21:12:04 +0000 prehomesadmin http://www.prehomes.com/?p=620 I have been going to REO conventions for the last 4 years and every year they say there is a large shadow inventory of homes that have been foreclosed on, but not yet released to the market. Every year we wait for this big wave to hit the market and it never comes. So I ask you, if a shadow inventory never hits the market, does it really exist?

What seems to be happening is that every time the banks start getting a little momentum in clearing out the backlog, a new law is passed or bill is proposed and they have to stop everything and make sure they are in compliance with the changes. In the long run, the person that seems to be suffering the most is the person who has the ability to pay their mortgage. It’s a little odd to me that there seems to be an incentive not to pay your mortgage these days. With the news that some banks are forgiving up to $100,000 in principle I’m sure there is more than one person out there thinking “how much is my credit score worth?” If the answer is less than $100,000, then you’d have to have just a little internal struggle going on.

As I write this there are news stories coming out that the market has stabilized and we are seeing multiple offers on properties. I think that is great, but I also know that there are a number of banks that have pretty much stopped their foreclosure operations in order to get in compliance with the new settlement agreement. Once they start releasing homes again the sellers market may cool a little.

So I ask you, what’s best for the housing market. Rip the band aid and take the hard quick hit or the slow painful pull that lasts for years?

]]> http://www.prehomes.com/2012/04/18/shadow-inventory-myth-or-reality/feed/ 0 Perfect Storm For Real Estate Investors? http://www.prehomes.com/2012/03/12/perfect-storm-for-real-estate-investors/?utm_source=rss&utm_medium=rss&utm_campaign=perfect-storm-for-real-estate-investors http://www.prehomes.com/2012/03/12/perfect-storm-for-real-estate-investors/#comments Mon, 12 Mar 2012 16:28:08 +0000 prehomesadmin http://www.prehomes.com/?p=589 In working with one of my real estate investors I was checking on interest rates and was surprised at how low they have gotten for the investor type loan.  By “investor type” I mean a non-owner occupied loan.  As I am writing this, rates on a 30 year fixed investor loan are about 4.5%.  If you wanted to get a 5 year arm type of loan, those rates are at around 3.5%.  These are based on a 25% down payment. 

Those rates are crazy!

Finding a good investment in real estate was tough when the market was hot.  It was hard to find properties that cash flowed for my investors.  They were still buying, but they were banking on rapid appreciation gains to off set the monthly costs they were having to pay to keep the property afloat.

That has all changed.  Now investors have to find properties that cash flow from the start, since banking on appreciation that may not happen anytime soon is not the best idea. 

The current combination of low rates, lower prices and strong rental demand seems to be the perfect storm that investors look for.  I will predict that they will make up a large part of the buyers that help bring housing out of it’s current recession. 

To find great investor properties in your area, contact us today! info@prehomes.com or (425) 449-5160.

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