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.

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.....

Declining California Markets

Interesting info I got this morning:



This lender has reduced it's max LTV by 5% for these areas. That means that if you used to be able to borrow $90,000 on a $100,000 purchase, you now need to come up with another $5,000 because they'll only loan you $85,000.

I wonder if 5% is a reasonable expectation, some areas are expecting double digit declines. hmmm.