Tag Archives: Featured

December Existing-Home Sales Rise, 2013 Strongest in Seven Years

 

topStories Friday, January 24, 2014
December Existing-Home Sales Rise, 2013 Strongest in Seven Years
Existing-home sales edged up in December, sales for all of 2013 were the highest since 2006, and median prices maintained strong growth, according to the National Association of Realtors®. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops …Read More >

Don’t Get Trapped By The Real Estate Guru Hype

A few times every year the Real Estate Guru Circus comes to town.  The radio ads start blasting how their strategy is perfect for your town and they will teach you how you too can make big money flipping foreclosures.

Seats are limited so call Now!

Truth is they are Marketing Gurus. They travel all over the country selling the same ideal. Sure they made some money flipping houses when they started out in THEIR HOME TOWN.   But do you think they know more about the city then the people who live their or the local investors and realtors that do this every day. The answer is NO.

They never mention in their ads that you will have to sign up for their Coaching Academy for $25,000-$40,000 before you are qualified to learn their strategy.

They usually get your phone number when you reserve your seat, so someone can contact you before the event to find out how much cash and or credit you have . This is how they know who too devote more time with when they ask you to stop at the tables in the back of the room.

Every time these Gurus leave town we get calls from the  disillusioned attendees, asking for help with finding a deal or helping them fix the dumps they bought because they are now alone and  NO GURUS in site.

Last year one person told us that they were told  they would get more out of the Coaching Program  if they pay 40K instead of just the 25K .

That would get them two calls a week from the coaching staff instead of the one phone call to ask them if they are looking at properties  and have they been making at least 25 offers a week.

If you are even thinking about investing in Real Estate find someone who lives where you do to work with. There are good honest people in this business in every city find them and start out smart.  The best way is to earn while you learn, with the right help they will show you how to invest that 25K-40K instead of wasting it on some out of state Coaching BS.

Real Estate Investing  has been around since we moved out of the caves don’t fall for all the New Strategy Hype.  Find someone local that has been doing it and ask them if they would like to partner up with you. Good Luck and invest smart.

Come to one of our events and meet the right people here in your home town.

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Taking the Temperature of the Market

 

topStories Wednesday, January 22, 2014
Taking the Temperature of the Market
Recently, Freddie Mac released its U.S. Economic and Housing Market Outlook for January showing that four of the key housing indicators are all moving in the right direction, which bodes well for an ongoing recovery. “As we start 2014, the housing recovery continues its steady pace,” says Frank Nothaft, Freddie Mac vice president and chief economist. “House-price gains will likely moderate …Read More >

December Housing Production Tallies Third Highest Month for 2013

 

topStories Tuesday, January 21, 2014
December Housing Production Tallies Third Highest Month for 2013
Following an unusual surge in housing starts in November, nationwide housing production fell 9.8 percent to a seasonally adjusted annual rate of 999,000 units in December, according to newly released figures from the U.S. Department of Housing and Urban Development and the …Read More >

Property Ownership and Property Management Outlook 2014

 

Property Ownership and Property Management Outlook 2014

Posted: 17 Jan 2014 10:52 AM PST

The year 2013 will go down in the record books as a good year for both owners and managers of residential income properties.

As I wrote recently in an article titled, It’s Tough to Afford to be a Renter These Days, “Housing affordability doesn’t look too promising as 2014 begins. If you listen to the National Association of Realtors the opportunity to be a homeowner hasn’t been this affordable in a long time.”

If you’re looking to sell a home, 2014 may be a good year though probably not as good as 2013. But if you’re looking to buy, 2014 will likely be a better year than 2013.

These are just some of the expectations that Jonathan Miller president and CEO of Miller Samuel, a real estate appraisal and consulting firm, shared with The Daily Ticker at Yahoo.com.

“Take home prices, which have been rising at a rate of 10%-12% — depending on which data you use, for example.” Miller says home prices will rise half as much in 2014 because more supply will come on to the market. “Inventory is now below the usual six-month average, credit remains tight and unemployment and underemployment will remain high even if they’ve declined over the past year.

“How can we have price growth that we didn’t see in decades? It doesn’t make any sense,” Miller explains in the video above. About 40% of Americans have low or negative equity in their homes, says Miller. “They can’t trade up, make a lateral move [or} downsize, so they sit.”

And those who have the resources and good credit to buy will find that mortgage rates are higher. This is mostly due to the Fed’s recent decision to reduce its purchases of Treasuries and mortgage-backed- securities (MBS). As I’ve stated many time before, qualifying for a new loan is and will continue be harder than in recent years.

“Under the Dodd-Frank financial reform law, lenders are required to meet new underwriting standards for “qualified mortgages” (QM) if they want greater protection from lawsuits. A QM loan must have a regular schedule for payment of principal and interest and fees paid by the borrower can’t exceed 3% of the loan amount and monthly payments can’t exceed 43% of the borrower’s gross income” Miller explained.

The new rules “will continue to slow the momentum of improvement” in the housing market, says Miller. They will “bog things down for the first half of the year…an adjustment period [for rules] that is “probably a necessary evil.” The hope, of course, is that the new regulations will help protect the financial system from a crisis like the one in 2007-2008.

“These new rules will also impact Fannie Mae (FNMA) and Freddie Mac (FMCC) — the government sponsored enterprises that are still the backbone of the mortgage market. They buy about two-thirds of new mortgages and bundle them into mortgage-backed securities for sale in the secondary market. Fannie & Freddie will buy only mortgages that meet most of the QM criteria.

In addition, Fannie and Freddie are raising the fees they charge mortgage lenders in exchange for guaranteeing new loans. The increase will make Fannie & Freddie-backed loans more expensive, which will create more opportunities for private companies to compete in the same mortgage market, says Miller. That’s “taking our medicine,” says Miller. To read the rest of this insightful interview and watch the video click here.

So 2014 looks like a more challenging year for both property owners and managers, but don’t let that worry you. The flip side and the silver-lining is that owners who have invested in areas where vacancy rates are low will still find plenty of desperate renters wanting to become residents.

For property managers, whether your region has an abundance of potential renters or a deficit, if you’re a smart competitor with the latest and best technology, software and marketing strategies, you’ll outshine your competition.

Being a big proponent of cooperation versus competition, I’d recommend that property managers network with their peers to learn what’s working and how to cooperate your way to success. If you help your competition by referring business to them they’ll do the same for you. Why? Sooner or later you’ll find a prospect who wants to rent in an area where you have nothing available.

When the opposite is true, you’ll find your property management competitor will refer prospect to you. Start 2014 with a winning, cooperative attitude and it could be one of your best years yet.