Why The Worst May Be Over

I found this article interesting because it has some compelling arguments for economic recovery.

Also because, just like a depressed Seattle-ite in March that hasn't seen the sun for 8.67 months, I am dying for a little sunlight and cheer to break through all the grey economic overcast.

Change = Opportunity

I love times of change. I've watched my clients leverage themselves into some amazing deals.

If you make the right decisions now, you'll reap the rewards within the next 5 years. Two years ago a buyer couldn't buy anything because they were outbid on everything that looked attractive. I had clients with 30% down, excellent financials and Letters of Credit from SIVB - that couldn't buy anything!!

Today, the buyer with the cash is queen.

What are the chances that San Jose Home Prices Will Be Lower In Two Years?

About 51%, according to the PMI group report.

I found it interesting that Dallas Fort Worth had a less than 1% risk while Riverside came in at the top with a 93% probability of lower home values in two years.

Profiting From The Market Misery

I love a down market. All this uncertainty has property values dropping faster than a womanizer drops a date that says the "L" word.

The statistical figures are starting to show some significant drops - in the 20-30%ranges - and I don't see daylight yet.

I like this NNN leased investment. It's got a lease guaranteed by CVS corporate. It's 2.3M and returns a 12.58 cap rate. Unheard of only 2 years ago!

Or 48 units in Los Gatos for $12.22M, net income of $568,277 and 4.61 cap. based on actual rents. Just a year ago we were seeing 3-4 caps based on proforma rents.

So, there are a lot of investment opportunities in the market. It hasn't been this great a time to buy since 1993-1994! If I only would have kept the house I bought in 1993, in willow glen, for $172K.....