Opportunity is Knocking

shutterstock_273084119With the current improvement in the California real estate market it just might be a good time to look into using the equity in your home to purchase a second property. The equity in your home can be used to get the down payment money to purchase that new property.

Many people have suffered from the mortgage meltdown that began in 2007 and from the overall real estate recession by losing their homes. So many people have been put in the position of going from being property owners to being renters. This recent event has caused an imbalance in the supply and demand ratio for available rental properties currently on the market. This has caused monthly rental amounts to increase and has provided the opportunity for real estate investors to take advantage of higher monthly rents. With current mortgage interest rates (now at historical lows) triggering lower monthly mortgage payments, the definite possibility exists for positive monthly rental net income.

Most institutional lender are not currently providing financing for cash out which many potential homeowners need in order to purchase an investment property. Private real estate financing does not live by the same constraints that the big banks or large institutional lenders are required to operate under when making lending decisions.

While the interest rates for private real estate financing are higher than traditional financing sources the opportunity that the current real estate market is offering far outweigh any additional interest rate expense.shutterstock_97730039

With one call and a few minutes over the telephone our company can calculate the costs associated with purchasing a second property and determine the ongoing monthly expenses from owning and managing a rental property. We can show you the amount of monthly rental income you can earn each and every month which would be in addition to any increase in property values leading to an appreciation in your net worth.

The old adage that “a rising tide lifts all boats” apply so perfectly to the real estate market. Owning one property when the real estate market goes up will get additional equity resulting in increased net worth. But when two properties are owned the owner gets a multiplier effect of having two properties increase in value leading to increased equity in both properties and an exponential increase in net worth for the benefit of the property owner.

It is so true two is better than one!!!!

Good news to benefit California

shutterstock_284509337Good news continues to flow in that benefit the California real estate market, Interest rates are at the lowest level in recorded history. The largest institutional banks settled for a staggering 25 Billion dollars with the Federal government for inappropriate foreclosure activity and now the California Homeowners Bill of Rights is completely implemented.  All have led to a resurgence in the California real estate market that will benefit homeowners as prices should continue to increase due to the positive economic factors.

But probably the best news is that foreclosure activity is down 65% from January 2012.  Couple this with the banks being much more active in “working things out” with delinquent homeowners and with the Homeowners Bill of Right instructing California lenders to stop the process of dual tracking will only lead to more future positive news for homeowners and real estate professionals throughout California.

The restrictions on “Dual Tracking” is the process of one department at the bank foreclosing on the property while the other department attempts to work things out with the homeowner.  This was tantamount to helping someone while at the same time stabbing them in the back.  It just wasn’t the right thing to do to people who were experiencing hardship due to many factors, this being possibly the largest factor being the downturn in both the national and California economy. It is now considered illegal for California banks and their foreclosure companies to employ such a process on homeowners.  The great news is that so many struggling homeowners are going to be able to keep their homes and this will prevent or minimize the vacant homes in neighborhoods all over California.

It is so nice to be able to report good news after so many years of month after month of reporting so much bad news.

California Real Estate Prices Rising 20.9% Year-Over-Year

shutterstock_265126766Good news has finally come to the California real estate market.  With many of the foreclosures that occurred due to the irresponsible lending policies of state and federal chartered banks now behind us prices are now finally starting to rise.

As of March 1, 2013 California real estate prices have increased 20.9 over prices from a year ago.  In addition, sales activity is at a six year high and shows no indication of slowing down due to positive current economic factors.  First time buyers and investor confidence are significant factors in leading to the improvement in values.  It’s important to keep in mind that even after the current increase in values that the current medium sales price is still down 37% over the all-time high set in early 2007.

Most every market gauge indicates prices are up significantly over the past twelve months, even after adjusting for the type of properties sold, size, location and sales prices.

The current low inventory of available house or sale has also contributed to the increase in values.

I will have more positive news about real estate market in the days ahead.