It's Official: If you've been waiting for the bottom...you missed it!

The numbers have been looking up for about the last 60-90 days: inventory is dropping off, sales volume is up and the closings are up.

Industry Barometer Shows Gains in Home Prices for Second Straight Month

Prices of single-family residential homes rose for the second consecutive month in June, Standard & Poor’s reported Tuesday. Quarter-over-quarter gains were also evident during the second quarter of the year, for the first time since 2006.

Yes the new lending guidelines are a hassle, no there's no 100% no doc loans but, the huge sucking sound that was our equity disappearing alongside 200+ banks and lending institutions, has eased.

The opportunity is there but you can't win if you don't enter the race.

market conditions, real estate, short sale, REO, cash flow, houses

If you are thinking about a short sale you need to read this!

It's been my understanding that the IRS has "waived" the "gain" of a short sale - it was just for a short time period, etc so read up on the details at irs.gov.

In all my short sales, I've only had one bank negotiate a deficiency judgment but read on:

A Short Sale May Not Mean You're Home Free - WSJ.com

Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over.

Not necessarily.

Some homeowners are finding that when they sell their homes for less than the outstanding mortgages -- a so-called short sale -- their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.

More Turn Around Talk

You know, I said it first but John agrees with me :-)

Biz break: Cisco CEO foresees economic turnaround in 8 or 9 months, optimistic about stimulus plans - San Jose Mercury News

Biz break: Cisco CEO foresees economic turnaround in 8 or 9 months, optimistic about stimulus plans

Compiled by the Mercury News
Posted: 04/24/2009 01:50:43 PM PDT

This too shall pass: Cisco Systems CEO John Chambers said today he believes the global economy will begin to recover in December or January.

That view is based on the performance of the stock market and his personal experience, Chambers told reporters at a news conference in Mexico City. The remarks have no bearing on Cisco's financial results, he said.

Reader Email Regarding Investment Property

Got this inquiry about income property and thought you'd like my response:

Hey Miguel,

That's so great that you're from San Jose. I grew up in San Jose and have an office in Campbell and in Dallas. One segment of my business is cash flow houses in Dallas.

My clients have done really well in Dallas. We have typical returns in the 12-14% range - and that's just on cash flow. We aren't hoping that the properties double in value - because they don't here.

Austin has been a good market, their cap rates are a bit lower because they are betting on appreciation, but the key for an out of state investor is your property manager. I just had a client the other day that had paid their property manager $8,000 to rehab a rental and he couldn't figure out why the property was sitting vacant. Turns out the work was never done.

I also have an acquaintance from the gym that bought new duplexes in Forth Worth. It was cheap - $250K - and the projections looked really pretty. Turns out they bought in a sea of new duplexes. Remember vacant rental property is NOT an asset, it's a LIABILITY. In the end the property sat vacant for EVER, they finally rented it well below their payments and they are stuck in it. Last time I talked to her she was considering walking away.

I have a million stories like this - unfortunately.

So, Miguel, three things. 1) You need 25%+ down for non owner occupied money; ie; income property. 2) Crunch the numbers. As a rule of thumb, your $125K rental should rent for $1250 in order to cover your payments, taxes, property management and return. You may still have repairs to do on top of that. 3) You have to manage your property manager. They are your employee which means that you'll need to "stop in" every once in a while.

Investing in real estate is not PASSIVE income. It's work and it's your money.

Ok, off my professor box! Good luck to you.

Lastly, if you want professional representation and management in Dallas, I am always here to help.

Rebekah
408-378-5569
DallasForeclosureFinder.com
SanJoseForeclosureFinder.com
RebekahOwen.com