Folks, they did it to us again... This past Thursday our Treasury Seceratary Paulson broke the news to homeowners. The 700 billion dollar bailout will not be helping homeowners in trouble after all. Instead, they are just going to give the money to banks so they can hoard it and keep their balance sheets solid.
Are we surprised? Not at all. Bailing out the banks was the intent all along. Homeowners are again left to fend for themselves. As investors, we consider this the best way anyway. These property values must be reset - but how? Aren't the banks doing Loan Modifications? Yes, a few. But why would you want a loan mod? Other than some short term relief, it locks you in to a property worth WAY LESS than what you owe on it.
So what is the answer? SHORT SALES, of course! Get rid of that property at market value, get the lender to share/take the loss. Short sales of one of the most effective yet misunderstood methods of selling property in todays' market. See our special report at http://www.78homes.com/Short_Sales.html !
Saturday, November 15, 2008
Wednesday, November 05, 2008
Auction News
Hello Fellow Investors:
This is a quick note to give you my observations of the REDC Auction at the San Diego Convention Center on Saturday. As a reminder, these are mostly bank REOs, some of which have been on the market for awhile with no luck for the seller. Many of these properties need a lot of work – some, however, are turnkey.
So what did we see? In a nutshell - just more of the same. We had viewed many of the properties and determined conservative retail market values.
Though the starting bids were attractive, usually homes were bid up to and sold for about 80% of that conservative market value. Add the 5% buyers premium to the transaction, and you end up at 85% of retail. In my humble opinion, just not a good deal. Especially if you believe, as we do, that there is still more downside to this market.
If you are in the market for "buy and hold", positive cash flow real estate in San Diego, NOW IS THE TIME. To find these properties and make them work, you need an edge. The Savona Group finds these properties, and brings quality, economical rehab services to these deals, giving you that edge.
Call or email us for a list of potential properties, and to get moving on your investing career!
Richard Worcester
The Savona Group, LLC
952 Postal Way Suite 5 Vista CA 92083
Phone: 760.208.2845
Fax: 760.454.2956
This is a quick note to give you my observations of the REDC Auction at the San Diego Convention Center on Saturday. As a reminder, these are mostly bank REOs, some of which have been on the market for awhile with no luck for the seller. Many of these properties need a lot of work – some, however, are turnkey.
So what did we see? In a nutshell - just more of the same. We had viewed many of the properties and determined conservative retail market values.
Though the starting bids were attractive, usually homes were bid up to and sold for about 80% of that conservative market value. Add the 5% buyers premium to the transaction, and you end up at 85% of retail. In my humble opinion, just not a good deal. Especially if you believe, as we do, that there is still more downside to this market.
If you are in the market for "buy and hold", positive cash flow real estate in San Diego, NOW IS THE TIME. To find these properties and make them work, you need an edge. The Savona Group finds these properties, and brings quality, economical rehab services to these deals, giving you that edge.
Call or email us for a list of potential properties, and to get moving on your investing career!
Richard Worcester
The Savona Group, LLC
952 Postal Way Suite 5 Vista CA 92083
Phone: 760.208.2845
Fax: 760.454.2956
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