What Is the Bottom?

How to identify the bottom of the market -- I found this article so well-written that I did not wish to try to re-cap, so this is quoted from RISMedia Daily E-Mail News:

"The trick is identifying the bounce and when to buy a specific property. For me as an investor looking to maximize profits, the price of a specific property is at rock bottom when the return on investment is better if I buy the property than if I leave my money where it is. Compare the real estate rental income and positive cash flow to the other investment options we all have, i.e.: stocks, bonds, savings accounts, etc. As real estate prices come down, and consequently the mortgage payments and taxes come down, while at the same time the demand for rentals is growing, at some point the positive cash flow will make the investment irresistible. That is the bottom for an investor.

With the scenario I have just describe each individual property is a micro-market of its own. The only thing that matters is its return on investment. You must only consider how you will benefit from that specific property. You must ignore everybody else and their investments. What we see now in hind sight is that many people paid too much when they invested like the masses in a sellers market. Remember, for you to win somebody else has to lose. Because so many people are losing so much of their equity it makes your ability to win much easier in a buyers market like we are in right now.

In a stable market, real estate prices are not driven up by investors. Home owners should be the predominant driving force. When a renter sees that their rent is higher than what they would be paying if they were to buy a similar property the tenants tend to once again convert to homeowners. That is the bottom for tenants. We know not all tenant have what it takes (income, savings and credit) to secure the American Dream of homeownership consequently there will always be tenants and they will always need investors like us to provide them with a home.

It has been years since we have seen prices low enough that we could invest in nice properties in great locations that yield an attractive positive cash flow. I got tired of hearing, “I remember when I could” or “I should have bought them all when I had the chance”. Now you can. You have a second chance. It may be your last chance. Take advantage of it."

About the author: Rick Harper grew up in the real estate business. He is a multi-million dollar real estate investor, and invests in commercial, residential and land. He has developed a strategy to acquire real estate with financing and then get it paid off to enjoy the pure cash flow. He is a broker, national speaker and investment consultant.

Family Matters

Family and Home are at the very core of my existence. I get some of my greatest pleasures in spending time with my family, in particular with the younger ones as the sweet granddaughter in this photo or my weekend camping trip with grandsons. Your family matters to me also which is why I take such pleasure in getting buyers into homes, whether it's your first home or fifth.

Call me (734-439-8405) for your real estate needs - I'll take good care of you and your family whether you are buying or selling a home.

Need to Get Rid of Good Stuff???

I often deal with clients who are selling their home of many years and they have lots of good stuff to give away but can't always find someone to take the items. The curb is often a good and simple option if you have useful smaller items like a lamp or bedtable or bike. Put these things out on a dry day, just one day before your trash pickup and they are likely to be salvaged by someone. I love this system of recycling!

Here are some other resources:
Friends in Deed at 734-484-7607 They were recently willing to take mattresses and bedding which is very hard to give away and not wise to put out on the curb.
Purple heart at 734-728-4560
Dawn Farms at 734-485-8725
Dr.Raymond Molano at 734-429-2737 who I've heard will take clothes (often hard to find someone to take)
Salvation Army at 734-668-8353 or 734-761-7750

Definitely call these contacts to verify that they are still willing to take items as at times they may get overloaded or have to discontinue. But go ahead and clean out those closets even before you get to the busy time of a big move!

Need any other help with your move? Do call me at 734-439-8405. I've lots of resources for all the moving issues!

Good Info on the New Tax Credit

First-time home-buyers can learn all about the credit by clicking on the title above.

Any additional questions, please call Barbara at 800-923-3245.

Rent-to-Own

Rent-to-own is becoming popular once again

Rent-to-own options are gaining favor again after falling out of favor during the last few decades when mortgages were easy to get.

The advantage of rent-to-own to a buyer includes a way around poor credit and an opportunity to rebuild credit worthiness and get in a home and position oneself a to obtain a mortgage.

For sellers, it offers cash flow from a property that might otherwise just be sitting there.

In some parts of the country, like Florida, rent-to-own arrangements are fairly commonplace; but in other parts of the country, buyers and sellers are only beginning to experiment with this form of purchase.

For developers it can be very beneficial as a tool to market their idle spec homes and produce cash flow to keep their lenders happy.

If you have any questions about this type of sale, please email me at Barbara@BGaines.com or call me at 800-923-3245.