Hi Friends,
Went to the Inland Empire’s meeting last night and saw Bruce Norris. Had to be 300 people at least – standing room only.
So what did he say? Let me summarize…
Even though I thought I had a handle on this market, Bruce shook me with the numbers. The avalanche of foreclosures is just beginning to hit, and not even near what it will be later in the year. Prices will continue to drop steeply until a majority of the inventory is priced at break even or cash flow levels. The correction that took 7 years in the mid-late ‘90s is occurring in less than 2 years this time. He admits frankly that the downward momentum of the market has caught even he off guard and he is very cautious about buying for flipping, as you can get caught chasing the market down.
Some of the scariest numbers are the supply vs. demand ones. Demand in the state this year will be around 300k units. Supply from REO’s alone will be 325k min. So even if you think you have equity now, as the REO’s take over the market and compete for buyers (by driving prices down). Equity will evaporate. OUCH!
REO brokers whom are struggling to handle 500 listings will be inundated with as many as 2000 in the next couple of months!
OK, so now that you are ready to run for the hills – what is the good news? Well, short sales are going to dominate. Lenders will be very negotiable with REO’s, so make offers! Do your homework “Bruce” style, and you will make a ton of money. Line up your team – Hard Money, Real Estate Broker, Attorney, Escrow and Title, Marketing, and Therapist.
One additional, essential team member you should have is a mentor (call it teacher, Guru, coach, etc). Unless you have dedicated yourself like Bruce (or me) to staying on top of this market, you can get burned. Call me anytime if you want to talk. But you may have to leave a message as I’ll be out driving REO’s…
Rich
Wednesday, January 30, 2008
Thursday, January 24, 2008
Sales Down Nationally
From the "Duh!" File...
Existing-home sales and prices dropped in December, the National Association of Realtors reported today, adding fuel to the trade group's argument that President Bush and Congress need to increase the conforming loan limits on mortgages backed by Fannie Mae and Freddie Mac to jumpstart home buying and help the economy avoid recession.
December sales of existing homes -- including single-family, townhomes, condominiums and co-ops -- slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units from a pace of 5 million in November, and were 22 percent below the 6.27 million-unit level in December 2006.
For all of 2007 there were 5.65 million existing-home sales, the fifth-highest year on record; however, the total was 12.8 percent below the 6.47 million transactions recorded in 2006.
For Local San Diego area market information - see our website at www.78Homes.com !
Existing-home sales and prices dropped in December, the National Association of Realtors reported today, adding fuel to the trade group's argument that President Bush and Congress need to increase the conforming loan limits on mortgages backed by Fannie Mae and Freddie Mac to jumpstart home buying and help the economy avoid recession.
December sales of existing homes -- including single-family, townhomes, condominiums and co-ops -- slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units from a pace of 5 million in November, and were 22 percent below the 6.27 million-unit level in December 2006.
For all of 2007 there were 5.65 million existing-home sales, the fifth-highest year on record; however, the total was 12.8 percent below the 6.47 million transactions recorded in 2006.
For Local San Diego area market information - see our website at www.78Homes.com !
Wednesday, January 16, 2008
Carpe Diem ~ Seize the Day!
The time is finally here! The wave of foreclosures has hit, the dam has broken. The “blood is running in the streets”. What does this mean to you as a Real Estate Investor?
• Lenders are finally negotiating and agreeing to short sales.
• Lenders are finally paying attention to - and accepting offers on REO’s.
• Sellers are willing to drop prices to almost any depth to get their properties sold.
If you are a serious Real Estate Investor, this is the time you have been waiting for! Is this the absolute bottom of the market? Probably not. But you will make a fortune with the right moves today! Seize the Day! If you aren’t investing now, you might as well get out of the business.
Listen…
• You don’t need to know how to do a short sale.
• You don’t need to know the exact formula for a hard money loan.
• You don’t need to be a hard core negotiator.
You just need to know me.
Don’t let this be the time you look back upon 2-3 years from now and say… “Coulda, woulda, shoulda.” Real Estate cycles are undeniable – and all factors point to the opportunity at hand. It’s time to do it again. Join me! Call 760 809 4666, or email me at Rich@78Homes.com. I’ll show you how to do it. Call NOW!
For Red Hot Bargain Basement Foreclosure Deals, see my website www.ShortSaleGroup.com
For Local Real Estate Market info and Stats, see my website www.78Homes.com
To Network with other investors, check our my Investors Group www.NSDREI.com
To Blog and see the latest investor stories, check out my blog InvestorNews.blogspot.com
Best regards,
Richard L. Worcester
Real Estate Investment Consultant
A Pensco Trust Preferred Professional
Use Your IRA to Invest in Real Estate!
3809 Plaza Dr., #107 - Oceanside, CA 92056
Ph: 760.809.4666 Fax: 760.454.2956
email: Rich@78Homes.com - On the Web at www.78Homes.com
Real Estate Investor News Blog ~ InvestorNews.Blogspot.com
Distressed Property Specials ~ www.ShortSaleGroup.com/OurProperties
Founder ~ North San Diego Real Estate Investors
On the Web at www.NSDREI.com
• Lenders are finally negotiating and agreeing to short sales.
• Lenders are finally paying attention to - and accepting offers on REO’s.
• Sellers are willing to drop prices to almost any depth to get their properties sold.
If you are a serious Real Estate Investor, this is the time you have been waiting for! Is this the absolute bottom of the market? Probably not. But you will make a fortune with the right moves today! Seize the Day! If you aren’t investing now, you might as well get out of the business.
Listen…
• You don’t need to know how to do a short sale.
• You don’t need to know the exact formula for a hard money loan.
• You don’t need to be a hard core negotiator.
You just need to know me.
Don’t let this be the time you look back upon 2-3 years from now and say… “Coulda, woulda, shoulda.” Real Estate cycles are undeniable – and all factors point to the opportunity at hand. It’s time to do it again. Join me! Call 760 809 4666, or email me at Rich@78Homes.com. I’ll show you how to do it. Call NOW!
For Red Hot Bargain Basement Foreclosure Deals, see my website www.ShortSaleGroup.com
For Local Real Estate Market info and Stats, see my website www.78Homes.com
To Network with other investors, check our my Investors Group www.NSDREI.com
To Blog and see the latest investor stories, check out my blog InvestorNews.blogspot.com
Best regards,
Richard L. Worcester
Real Estate Investment Consultant
A Pensco Trust Preferred Professional
Use Your IRA to Invest in Real Estate!
3809 Plaza Dr., #107 - Oceanside, CA 92056
Ph: 760.809.4666 Fax: 760.454.2956
email: Rich@78Homes.com - On the Web at www.78Homes.com
Real Estate Investor News Blog ~ InvestorNews.Blogspot.com
Distressed Property Specials ~ www.ShortSaleGroup.com/OurProperties
Founder ~ North San Diego Real Estate Investors
On the Web at www.NSDREI.com
Saturday, January 05, 2008
Thursday, January 03, 2008
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