Newsletter

Bet you want to hear “UP, UP and AWAY! Knowing precisely when home prices will turn and reverse the slide experienced for the last year and a half would definitely make a real estate investor’s day. It’s like the stock market though. If someone tells you that they can predict a national turn in home prices … run.

On the 17th of September, the Dow plunged 450 points, in good part due to the announcement of the government takeover of the insurance giant AIG. Of course, this is just another domino falling as the mortgage crisis plays out. Some financial giants have fallen, and there may well be a few more.

Why Bad News is Good News for Real Estate Investors

The news is dismal, with mounting foreclosures in many areas of the country. Families are losing their homes at a rapid clip. They may have purchased a home that they simply couldn’t afford in the first place. Or they may have selected a mortgage that is now a problem for them. Huge numbers of variable rate mortgages are resetting, with higher interest rates. These homeowners can’t afford their new payments. They simply must walk away.

Value in Today’s Housing Markets

The mortgage crisis began to unfold in 2006, with steadily eroding home prices and negative housing news still in play through 2008, with some predicting no real improvement until late 2009 or 2010. However, the news is never as bad as the media makes it appear. One reason is that the media relies heavily on information from pricing indexes and “experts” who watch them.

Selling Rental Property With a Lease Purchase

Just as there are a number of financing options you can use to purchase a rental property, there isn’t just one way to sell one. When we purchase we have some kind of plan as to how long we’re going to hold a property, as well as the expected profit on sale.

Marie Clay
Nina Baykova
Floyd House
Casey Saul
Chris Townsend
Jonatan Villasenor
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Beverly Daily
Julio Santana
Susan Sours
Christine & Charles Arteago
Rochelle Anglin
Thomas ****son
Michael Greene
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Gerardo Caro
Gary Tenkley
Gwen & Alan Borgese
Daryl R Nath Jr.
Milton Carter
April Pusateri
Ruby Darrough
Diane Wilson
Jacob Legendre
Roderick Wilson
Marvin Shepherd
Shannon Spivey
Tom Fry
Ricardo Navarro
Matt Abney
Michael Bangsal
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J and S Wilson LLC Wilson
Robinson Melissa
Adrian Mihaescu
Ken Melnick
Gustavo Fernandez

Elements of a Good Lease Document

In today’s computerized world, you can find lease documents all over the Internet. Some are free, and some come at a cost, even though it is usually quite reasonable. However, nothing can take the place of a legal document prepared by a legal professional for your specific use. So, you may just want to have an attorney prepare your lease agreements, or the format for them.

Dean’s “News” Diet Won’t Make You Thinner… Just Happier and Maybe Richer!

Here is a little something I want to share with you that you may think sounds a little crazy. But as always, I share with you, what works for me. It’s a diet that has nothing to do with exercise or eating, but everything to do with your well being.

I CALL IT MY “NEWS DIET”

It consists of going on an information diet for a few weeks. Why do I do this?

Actually, we’re going to talk about both GRM and Cap Rate, as they each have their value in the due diligence process involved in buying or selling real estate investment property. They can support each other, and both are valuable tools for the real estate investor’s toolbox.

GRM as a fast comparison tool – First, let’s see how we calculate GRM:

Market Value divided by Annual Gross Income = GRM

So, if we are considering the purchase of a property at $750,000, and an annual income from rents of $110,000, we have:

$750,000 / $110,000 = 6.82 GRM

As we go about all the activities related to investing in real estate, sometimes it’s easy to forget the reasons we’re doing it in the first place. Between purchase research, financial analysis, management and profitable sale, we should remember the very sound reasons why real estate investment outperforms most other investment vehicles.