Market Trends and Condition

Real Estate cycles tend to last about seven years. This has been an historical fact for nearly two houndred years. Understanding where we are in that cycle is important as we are trying to make money.

Over the past little while we have seen, in somee areas, a rocket ride as properties start going back up. This opens up a whole new workd of buyers for us. These are Speculative buyers. These folks do not want to be left behind. They will purchase properties and hold on for the ride. They are not always looking for fixer uppers. They just want to own and make their money on the back end.

Look for these speculative buyers. They have money and they want to buy.

I know this does not apply to everywhere but in some areas of the country they are still experiencing slow markets. So we look for properties in places other that the MLS and the FSBO market just does not go away.

Four years ago, when Judy Cruz decided to try to sell her house on her own, it couldn't have been easier. She struck up a conversation with a neighbor who said he'd love to buy it from her. Deal done.

But when she decided to sell her Chicago condo this year, it was a different story.

"I tried advertising it online for four months," said Cruz, who explained that posting free classifieds on Craigslist were the sum of her efforts. "The only calls I got -- and I think there were just five -- were from people who wanted to know if I would consider rent-to-own."

A pretty awesome thing that I have been doing with real estate agents that I am working with is using their access to the MLS to get me active cash buyers who are buying properties with CASH. Believe it or not, Real estate agents can actually do a search on the MLS to find and pinpoint cash buyers and can legally give you that list to work with to build relationships with buyers. Here is what I say to agents and how I say it to them to get this list to help me out. I like to do this face to face and not over the phone or email because I get better results actually talking to them. (I see this in many aspects of my investing)
First thing I will say to them is this:

This is from a friend who is a broker in Houston.

http://www.har.com/Houston-Real-Estate-Blogs/dispSinglePost.cfm?id=34880

The National Association of Realtors (NAR) tracks existing home sales across the country. NAR is reporting rising prices across the nation, with 133 out of 150 metro areas showing price increases in the first quarter of this year. They also report that total existing home sales are at their highest since the fourth quarter of 2009.

The price increases in 133 of 150 metropolitan areas showed the best year-on-year performance in seven years. Only 17 areas had price declines, still far better than the same period in 2012, with only 74 areas showing price increases that quarter. Other data noted includes:

• Inventory is expected to be constrained and contributing to rising prices well above the inflation rate.

http://money.cnn.com/2013/05/09/real_estate/homebuyers-mortgages/index.h...

http://www.marketwatch.com/story/10-hottest-us-housing-markets-of-2013-2...

from BestTF

However, it is interesting that the FHFA has recently announced a return to the subprime style ‘No-Doc’ mortgage loan, at least for refinancing delinquent homeowners, and is being heralded as the ‘solution’ to the foreclosure crisis. Perhaps they shouldn’t have gotten rid of them in the first place?

Anyway, real question is, if Fannie and Freddie are done away with altogether, or at least if low down payment loans become a thing of the past, and 20% down is the new standard for all (a reversal of current trends), will it be the end of flipping houses and a crippling blow to real estate investors?

Fortunately on the acquisitions side transactional lenders are still offering 100% plus financing, regardless of credit, employment, assets or appraised value.

CNNMoney reports that in “many” real estate markets bidding wars are cropping up. They tell the story of one couple who lost out on three homes to higher bidders. Then on their fourth try they managed to successfully bid through a real estate agent who “they believe pushed their bid harder in order to double their commission.” Representing both the buyer and the seller in the deal is a common practice, but it’s impossible to prove that either party gets aggressive representation, especially when the agent is doubling their compensation to keep the deal together.

Payments Coming from $3.6 billion Settlement

Homeowners who lost their homes in 2009 and 2010 could be seeing some financial compensation coming their way. In cash payments ranging from $300 to $125,000 each, 4.2 million borrowers will receive checks soon. The largest settlement payments will be made to 1,082 military service members who lost their homes illegally to foreclosure. Servicers participating in the agreement are:

• Aurora
• Bank of America
• Chase
• Citibank
• Goldman Sachs
• HSBC
• MetLife
• Morgan Stanley
• PNC Mortgage
• Sovereign Bank
• SunTrust
• U.S. Bank
• Wells Fargo