Buying Real Estate is a Patriotic Act – Especially Fixer-Uppers – See Why Below….

This is what creates jobs

Why do I say that…?   Because it’s true.

I posted a story a couple of months ago about Mr. Philips and his inability to “qualify” for a decent loan because he is a “high net worth” investor that has “passive” income.  Click here for the back ground story.

In that story I wrote about the “multiplyer effect” that each Real Estate Transaction generates.   Because Mr. Philips didn’t do these new deals, non governmental stimulous funds were stopped from “spreading the wealth”.

So with the back ground story in mind, I’ve posted a video that will show you what happens when folks spend money on Real Estate.

Take a look at the video of the “street scene” of a Duplex we sold to a Buyer that actually lives on one of this property.  He’s fixing up his place and look at what is going on around him.

Comments anyone…?

Make it a great day.

Ed Favinger, Broker CRS, GRI     916-203-1260

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Hot Bank Owned Properties – Sacramento – Cash Flow Opportunities

What About Short Sales…?  They’ re Hot too.

If you’ve been to this site before,  you already know that I am a big fan of Duplexes… especially the “REO or Bank Owned” type because they are for the most part deeply discounted from their highs from years past.

The dis-advantage to a Bank Owned or REO deal is that,  while you get the property at a dicounted price, there will be that “as is” thing they insist on and with rare exceptions they don’t deviate from it.   You get these deals with the property vacant, which means you have to go in and do the “fix up” to get them in a “rent ready” condition.  If you want to see what an vacant REO/Bank Owned property can look like, go here.

Now even “Short Sales” are becoming a great deal because the banks are now more willing to complete them in a timely manner.   

OK… Why do I say Short Sales are Hot Too…?

Well, for starters, most of the time in a Short Sale the property is still occupied by Tenants.   The trick is to get one that has “rent paying tenants”.   However, even though the case may be they are not paying rent, this could be the result of  the tenants having been notified that a foreclosure is pending and they are holding funds in case they have to move.  Or… the current owner has just abrogated the responsibilty and is not even making an attempt to collect it.

Either way in most cases you can work a deal out with the existing tenants to have them stay.   Now keep in mind when an owner is in this situation, you will probably run into an old “deferred maintenance” issue that has been neglected by the current owner which,  if resolved by you, will go a long way in keeping the tenant there and happy to stay.

The advantage then of keeping the tenant there is that you will not have to go in and spend the extra “bucks” to re-rent the unit.  

And Finally.. the best reason to go after a Short Sale now is you still get the same “discounted” or “market price and that Lenders are beginning to approve them much quicker than in the past.    How cool is that…?

If you want a list of REO/Bank Owned & Short Sales…?

You’ve come to the right place.  I’ve analyzed both types and prepared “pro-forma” Cash Flow figures for each one on this page.  I’ve got videos too on some of them.   If you book mark this page, you will get updates as I go out and view these properties and post the information.

Make it a Great Day.

Ed Favinger, Broker, CRS, GRI            916-203-1260

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Bank Owned or Short Sale Investment Property – Good Time to Buy – See Why Below

Have you ever heard of “Supply & Demand“..?

If you are on still the fence about buying an investment property in the Sacramento Region, I thought I’d update you with a forecast from Marcus and Millichap that they came out with.  

They’ve analysed several markets all over the country.   You can read the artcle yourself below.  What they don’t tell you is in the conclusion that in the future,  there will be upward pressure on rents along with prices when the economy picks up.   Why…? Nothing has been built in this area lately.  

You can read the entire article but here’s the most important part as regards new apartment construction in the Sacramento Region.   “Completions are expected total fewer than 100 apartments this year. No units were delivered in 2009.”

U.S. APARTMENT ROUNDUP: Marcus & Millichap Sees Sluggish First Half for 30 Multifamily Investment Markets

Mortgage interest rates are low and prices,  while they have stabilized in the Sacramento Region,  are still depressed because of the weak employment picture  here.   When the un-employment rate finally starts to goes down… folks that have been doubling up with relatives or roomates will want their own place.  

So if you are investor, now is the time to jump on a Bank Owned or Short Sale Duplex, Four-Plex or a Single Family Home.     

Take a look at some of the inventory out there now by clicking here.

Remember….   If you believe in America this economy is not going to last forever.

Make it a great day…!

Ed Favinger,  Broker, CRS, GRI            916-203-1260

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Bargain Prices Lure Homebuyers in February – Sacramento Business Journal:

Just One of many homes for sale in Folsom, CaliforniaGood News in The Hunt for a Home.

Hey.. Looking for some good news…?   Well here’s some.   Take a look…  I ran across this article regarding New Homes Sales in the region that was in the Sacramento Business Journal.

Bargain prices lure homebuyers in February – Sacramento Business Journal:.

Make it a great day.

Ed Favinger, Broker, CRS, GRI            916-203-1260

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Got Rough Credit, You Want to Rent, But No One Will Rent to You…?

Check out the Notes Below From a Property Manager & Landlord.

Let’s start with some credentials

I’ve been a landlord a long time now.  This includes running properties that I have an ownership interest in and the Property Manager for other folks that either don’t have the time or inclination to deal with the day to day operations and/or interactions with Residents/Tenants.

Here are two common problems that we are encountering now.  If you fall into one of these groups, I’m going to give you ideas to help you create a better rental application.  I hope to help you here,  so you can get a nice place and not settle for a run down property with a slum lord that is willing to take you after you’ve run out of options.

Got an Eviction on your Credit Report?

When calling a potential Landlord tell them you have an eviction if it’s been within the last 3 years.   If you have re-establshed a good rental history for the last couple of years that does help…  but be prepared to explain what happened.   Our company will review each case, work with you if you have re-established a good rental history since and it’s verifiable.

Compenstating factors in your favor might be that you’ve been on the job for the last 2 or 3 years with the same company.  To qualify you might be required to pay an increase in a “security deposit“.   We typically charge a Security Deposit equal to one month’s rent.   State Law, by the way, won’t allow a security deposit of more than twice the monthly rental amount for a vacant unit and three times the rental amount for a furnished rental.

If this is a recent event, say,  within the last year and you have not re-establshed a good rental history…?  You are going to have problems.  You will need a co-signer and a have to pay a higher deposit in most cases.

You work for Cash or you are Self Employed:

I have to be honest with you here.   If you don’t have a bank account and you pay for everything in “cash”, you will have to learn to live in crummy properties until you build up a “verifiable”  long term rental history with a Landlord.

If I can’t verify your income because you don’t have a bank account showing consistant deposits  and you have no “veriable” rental history…?   These are real big red flags to me and just about any other landlord or property manager.

This is because our experience tells us,  in most cases,  with folks that fall into this category, they will have other issues and or problems as well.    (I will write another article later on being a “good neighbor”.)

If you want to be able to rent a nice place from us,  or any other Landlord,  you’ll have to become a more involved person in society by getting a bank account.    You will have to pay your bills on time and stay away from collections and be able to show us that you do make an income.

If you’d like to see our “qualifying criteria”  you can click here.

Contact me anytime if you have questions.

Make it a great day

Ed Favinger, BROKER, CRS, GRI 916-203-1260

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