Home Sales Are Up and Inventory is Starting to Drop
Home Sales Are Up and Inventory is Starting to Drop
The National Association of Realtors just released their latest report on December 2008 home sales, and there is good news. Home sales rose 7% in December 2008 compared to November 2008. Inventory dropped 11.7% to 9.3% months of supply at the current sales pace.
Reasons Behind the Increase In Sales
Investment opportunities in Florida, California, Nevada and Arizona and other speculative markets can be attributed to the increase in home sales because prices in those areas have been declining for awhile and unemployment is rising. Lower interest rates and affordable homes are driving buyers and investors to the market place at the moment especially in these areas. The National Association of Realtors reported that the national median existing home price in December 2008 was $175,000, a whopping 15.3% lower than December 2007.
REO’s, short sales, and foreclosures are major factors in the increase in sales and the drop in inventory making affordability once more a reality for today’s home first time home buyers. Take for instance the Las Vegas market. According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index about 60.6% of homes for sale in the Las Vegas metro area as of the third quarter 2008 were affordable for median income wage earners. In 2007, only 18% of homes for sale were affordable.
Affordability to Continue
In my opinion we can expect to see the affordability continue the first and second quarter of 2009. That’s why now is the best time ever for buyers/investors to buy Florida properties. So what’s the best way to do this if you have never bought real estate before? The answer is simply. By working with an experienced and knowledgeable real estate coach or mentor. Right now, I am working with a select group of new investors who want to take advantage of the opportunities that are available in the market, but are not sure how to start. I am looking for a team of individuals who want to change their life forever.
Real Estate Junkie Systems
Interest rates are expected to remain at all time lows for quite awhile so there is no excuse not to invest in real estate now. The Real Estate Junkie’s proven systems will teach you everything necessary to become a financially successful investor in the shortest period of time. Real estate investing is a business. The Real Estate Junkie System will also teach you how to set up your business, your business plan and business model, accounting systems, select a management company and team of contractors and how to do foreclosure short sales.
There are hundreds of gurus and systems out there but knowing what is the truth and what is a lot of puff and hype is the key. It took me years and a lot of wasted time and money to figure out what was the truth about real estate investing- what works and what does not. That’s why I decided to share my knowledge and information with others by coaching and mentoring students that wanted to learn about the right way to invest in real estate. So what are you waiting for? Let’s get started!
For more information about my courses and other seminars, please contact me at my website at http://www.realestatejunkie.com.
New Year, New Investment Opportunities and Strategies
New Year, New Investment Opportunities and Strategies
With the new year, comes new real estate investment opportunities and strategies to starting implementing and exploring. Now is a perfect time to re-evaluate your current investment situation and make positive changes that will affect your long term investment portfolio. Whether or not you got caught up in the mortgage meltdown, the foreclosure crisis, credit crunches of 2007-2008 or the Wall Street financial crisis, it’s a good time to make changes and seek new investment opportunities. Or if you are a new investor, it’s a great time to start investing.
Why Working With a Mentor or Coach is Beneficial
Before you make any investment decisions these days, it is important to educate yourself and learn as much as you can about how to make the best choices for your financial situation. I have found over the years that one of the best ways to do this is to work with an experienced mentor or coach.
Yes, it’s a buyer’s market right now and you might be wondering why do I need to work with a coach? One of the reasons is that if you don’t know the basics of real estate investment and what not to do, your mistakes can cost you for years down the road. I coach my students on a one to one basis so that they can learn my proven systems, obtain their financial goals and dreams and avoid making those costly mistakes.
2009 Real Estate Outlook
HousingPredictor.com, an online real estate research firm located in Destin, Florida predicts that housing prices nationwide will fall 12.5% in 2009, compared with an estimated 11.1% in 2008. This means more investment opportunities for real estate investors.
Now is a Good Time to Invest in the Florida Real Estate Market
Whether you are an experienced investor or a new investor, now is a good time to invest in Florida real estate. Areas such as Florida, California, Arizona and Nevada have already seen substantial home-price declines since 2007, as much as up to 30% in fact. The majority of the foreclosures were as a result of the sub-prime mortgage mess, which has created a record number of foreclosures and short sales. Also, the state of the economy and the high unemployment rate, have contributed to the foreclosure rate as well.
However, the current real estate market condition in Florida has created a climate for some of the best investment opportunities. Low interest rates, rock bottom prices, and a large source of inventory are all perfect real estate conditions for buyer/investors considering investing in Florida real estate.
Florida real estate markets such as Naples, Orlando and Tampa have seen some slowing down in declining prices, and many investors have already taken advantages of these at or near rock bottom prices. Miami prices are still continuing to fall. In fact, Florida was number one in foreclosures at the end of the third quarter 2008, with Nevada leading in second place.
Industry experts are predicting a new wave of foreclosures hitting this year, which could be triggered by the Alt-A and option adjustable rate mortgages given to borrowers with good credit starting to readjust.
Option ARMs allowed borrowers to make minimum payments that don’t even cover the accrued interest. The majority of these loans were made in Florida, California and Las Vegas. Real estate financial experts are expecting about 45% -50% of the option arm loans made in 2006 to default. The 2007 option ARMs, which were originated right at the time home prices started declining are also expected to perform badly.
It appears that foreclosures are going to continue to influence 2009 real estate prices and the market for awhile that is one of the reasons I relocated to Florida.
What You Need to Know About Today’s Investment Strategies
With the opportunity to purchase affordable real estate throughout the country, including luxury real estate, real estate investors have realized that now is the time to seize the moment and buy. Whether you are a new investor or a seasoned one, buying with a long term investment strategy in mind is a smart investment choice. However, there are some other strategies I want to discuss as well.
Many of my students are also having great success with the rent to own real estate investment strategy. With the rent to own program, my students purchase a discounted property using my Real Estate Junkie strategy. The property is then offered to a tenant for lease with an option to buy. My student gets a large upfront deposit which is nonrefundable if the tenant/buyer does not purchase the home. The tenant’s a small portion of the monthly rent is applied as a credit towards the purchase of the home.
Also, a number of my savvy students are following my advice and making their tenant/buyers responsible for the all maintenance due on the property after the first $100.00 of repairs each month. This strategy works well for you as the investor/owner because it reduces your property maintenance and upkeep costs. The tenant/buyer has more of a vested interest in the property because they are spending money to maintain the property. Since they are making a financial investment in the property, they are less likely to decide that they don’t want to buy the property.
With so much uncertainty in the job sector and the economy, you can no longer afford to rely on your job for your sole source of income. Now is the time to make changes that will have lasting long term affects on your financial independence.
This is Kimberlee Frank the Real Estate Junkie wishing you a Happy New Year. Please visit my website at www.RealEstateJunkie.com.
STARTING OVER OR GOING FULL FORCE
Starting Over or Going Full Force!
Many investors are asking me Kimberlee what should I do right now? Invest in more property, wait, try and sell what I have? Give the property back to the bank? I recommend taking time to re-educate yourself about your marketplace. Figure out your mistakes and look for new strategies and solutions to avoid making those same mistakes again. Right now is a great time to buy and start your investment strategies with fresh and new ideas.
Buying Strategies
Buying discounted properties is an investor’s dream and with so many properties available on the market now, this is the best time ever for making long term real estate investments and rebuilding your portfolio. If you have cash, now is a great time to purchase real estate or if you have good credit, you might have to but a little more money down, it is still well worth the investment. Another option is to ask the seller if they are willing to do seller financing.
Selling Strategies
If you are selling your investment property, then Seller financing is a great way to get buyers with less than perfect credit to purchase your property. I recommend offering this incentive to your buyers as well as other incentives such as prepaid homeowner dues or taxes, credit for repairs. Since the competition is stiff, you need to be creative with your marketing of your property and pricing at or below market.
Also, if you own luxury or vacation property, you may want look into selling it fractionally. Fractionalizing your property is when you sell the property to different buyers in different percentages and each buyer gets a deed for their percentage of ownership. The buyers share the maintenance costs and work out a use schedule. Before you decide to fractionalize, I do recommend you speak to your attorney to make sure the property qualifies under your state and county laws and also check with your homeowner association, if applicable to make sure they allow fractional ownership.
The advantage of purchasing fractional real estate for buyers is that they don’t have the high costs and maintenance responsibilities associated with ownership of a vacation or retirement home because those costs are shared. Buyers get to own a luxury vacation property in a great area that they could not otherwise afford on their own, and they get the amenities of a four or five star hotel with all the comforts of their own home. The advantage to the seller is that fractional real estate usually sells for a higher price since several owners are purchasing it, buyers are willing to pay more because individually they are still buying the property for less than if they were buying it on their own. Vacation areas like Florida, California, Nevada, Arizona and Colorado are popular vacation destinations and good choice areas to sell fractional real estate.
Team Up with Other Investors
Several of my students are teaming up with other investors, friends and family and buying bulk properties. In fact, there are lots of investment opportunities all over Florida right now because Florida was one of the hardest hit areas as a result of the subprime mortgage mess. Short sales, foreclosure auction properties and bank owned properties are just some of the investments that my students having been taking advantage of in the Florida real estate market. Prices have declined as much as 30% or more in some areas because of the high foreclosure and short sales so it is definitely a market worth checking into.
Other students and experienced investors are also using my proven Real Estate Junkie methods to purchase these discounted properties and then offer a lease option to their tenant/buyer. By obtaining a large upfront deposit from their tenant/buyer, they are able to establish a monthly cash flow, reduce their mortgage payments and at the same time rebuild their equity and investment portfolio to achieve their goals of long term wealth.
If the tenant decides to purchase the property, then the small portion of the monthly payments and the upfront deposit are credited towards the purchase price. If the tenant decides not to exercise their lease option, then the monthly rental payments are just applied towards the rent and the deposit is nonrefundable. Also, many students have implemented my system of negotiating in the lease that the tenant is responsible for the first $200.00-$300.00 of repairs each month. This reduces your monthly maintenance costs and keeps the tenant interested in purchasing the property because they have already made a financial investment in it.
These are just some of the ways that my students and seasoned investors are rethinking and implementing new strategies to keep their investments growing and secure.
Now is a great time to start the new year fresh with new and innovative real estate investing techniques and systems. I am offering a 15 minute free consultation for anyone who wants to take their business to the next level. All you need to do is go to my website www.RealEstateJunkie.com and send me an email to schedule an appointment. For more information on my seminars and coaching programs, you can also visit my website at www.RealEstateJunkie.com.
Than Merrill from Flip This House says Yes to Kimberlee Frank
Have you ever watched the show Flip this House on A & E with Than Merrill? It is a television show that shows how to buy, fix and flip a house for profit. One of the star’s is my friend, Than Merrill. Than and I are in a Mastermind Group together and we share how we can help our students excel in the real estate world. Than and I spent an hour talking about my program “Apprenticeship Business System” which is a simple step by step process that shows the investor how they can share their knowledge with no investors.
Than Merrill is known for having systems and was very impressed on how well the Apprenticeship Business System is put together so that Even You Can Be a Local Guru. Than states that Kimberlee has not forgotten about a single step. She will even do a tele-seminar with you to find students for you. What dedication she has to her students to help them be successful.
Than Merrill is releasing this tele-seminar to his coaching students in early 2009. Kimberlee decided that she would release it to you now so that you could get a jump on his students.
Listen to the Tele-Seminar and you will learn how you too can cash in on your knowledge. Go to www.RealEstateJunkie.com and sign in as a free member and listen to the seminar along with all the other seminars that Kimberlee Frank has recorded.
