BUY APARTMENT BUILDINGS THEY WILL BE IN EXTREME DEMAND – UNDERWATER PROGRESS!

THE AMERICAN HOME MARKET HAS REACHED ANOTHER “INFAMOUS” GOAL in 2010:

DURING 2010 THE TOTAL OF UNDERWATER HOMES IN THE U. S. WENT FROM 21% IN THE FIRST QTR TO 23% IN THE THIRD QTR TO 28% IN THE FINAL QUARTER.  That represents a move toward 30% and on to 40% of the homes which have mortgages.

This is bleak news for homeowners but positive for the owners of Apartment Building Investment properties, especially in nice areas with great schools and services.

There is an additional issue with the Under Water Homes…when the owners sell or short sell or deal with a foreclosure…they will have no equity and probably no cash in the bank.  They will be renters, some for life and some for 2 years to 10 years while their credit heals and they accumulate a down-payment. One must have 10% equity to break even upon sale and pay costs…that’s why I predict we’ll be at 35% before long.

AND WHEN FANNY AND FREDDY DIE…OVER THE NEXT 10 YEARS…THERE MAY NOT BE ANY 30 YEAR MORTGAGES WITH EXTREMELY LOW DOWN PAYMENTS!

Some folks will make a pledge to “Never Own a Damn Home Again”, some will buy as quickly as they can.

Interest rates Must Necessarily Skyrocket (to grab a quote from our Pres).  For the first 20 years of my real estate career, interest rates did not drop below 8.5%.  I’m gonna’ guess that we’re heading that way interest rate wise in the not too distant future.  Some “pundits” say several years…some say several months. 

MY LAST BLOG WAS THAT THE REAL ESTATE BUSINESS IS IN ELVIS PRESLEY MODE: IT’S NOW OR NEVER!

My advice is that if you want to catch the next up wave…you should own Apartment Buildings.  Preferably 2 to 4 unit buildings if you have mor limited funds. 16 or more unit buildings if you have some retirement funds to place (5 to 15 units are a bear to finance and make productive…PRICE is the secret to them).

IT’S NOW OR NEVER…GET TO IT!

Please subscribe to my A R Blog: Tom’s AR Blog or or get my RSS feed: Tom’s AR RSS Feed

More info at my Apartment Building Investment Blog – or RSS Feed

Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205,  CYPRESS, CA 90630

714-895-2174 Direct; 714-398-8292 Fax  Tom@TomWaite.com

NEW FORECLOSURE MORATORIUM…BUY APARTMENT BUILDINGS!

FORECLOSRE MORATORIUM AT HSBC – MORE SHORT SALES AHEAD! BUY APARTMENT BUILDING INVESTMENTS HSBC (England Based Lender) DOCUMENTS from Tuesday show that they have placed ALL Foreclosures in the USA…until irregularities in their foreclosure documents and programs can be corrected. This might be a 30 day hold or a 60 day hold.  During that period, more and more HSBC Foreclosures will necessarily back up in the Phantom Inventory Tsunami.  These foreclosures will not be “dismissed” and when they come back online…Katey Bar The Door. IT COULD JUST TURN OUT THAT PLACING FORECLOSURES ON HOLD…IS A STRATEGY TO PREVENT THEIR NEW FORECLOSURES FROM “BIDDING DOWN or AGAINST” THE ONES THEY CURRENTLY HAVE ON THE MARKET! N.A.R. just announced that December 2010, January and February 2011 were all down months in Sales and Prices.  NOW IS THE TIME TO BUY APARTMENT BUILDING INVESTMENTS! The more folks who lose their homes to foreclosure…the larger the pool of Committed, Lifelong RENTERS there will be. Many people who lost their homes in the early 80s, and/or the early 90s (about 40% to 50% of those who lose their homes during this Recession) will never have the courage or determination to buy a home, again. THEY WILL NEED SOMEWHERE TO LIVE…APARTMENT BUILDINGS…BUY THEM NOW BEFORE THE PRICES MOVE UP DUE TO “INCREASES IN INCOME” AS THE UNITS IN NICER AREAS AND NICER BUILDINGS ARE BID UP…WHEN VACANCY RATES BEGIN TO DECREASE LATER IN 2011 AND INTO 2012! BUY APARTMENT BUILDINGS!!!  CALL ME! Please subscribe to my A R Blog: Tom’s AR Blog or or get my RSS feed: Tom’s AR RSS Feed More info at my Apartment Building Investment Blog – or RSS Feed Tom Waite THOMAS WAITE REAL ESTATE BROKER PO BOX 3205,  CYPRESS, CA 90630 714-895-2174 Direct; 714-398-8292 Fax  Tom@TomWaite.com

MORE DISPLACED HOMEOWNERS = MORE RENTERS IN 2011-2012

Bernanke says: NO MORE JOBS IN 2011 THRU 2013!

Ben Bernanke testified before the banking committee earlier this year and broke the news to everyone that the economy is still in DIRE SHAPE and not to expect job growth for the next two to three years. 

He expects unemployment to be at least 8% through 2013 maybe longer.

LET ME SEE…WHAT CAN PEOPLE WITH NO JOBS…NOT DO?

ANSWER:  BUY REAL ESTATE, BUY NEW CARS, SHOP AT THE MALLS, ETC, ETC.

 They WILL rent apartments in droves.

Oh, and did you miss the part about Inflation for Food, Energy (Gas, Oil, Electricity) and Rent?

Looks like more:

FORECLOSURES

SHORT SALES

REOs

But remember…I didn’t tell you so…Okay, Okay…I TOLD YOU SO!!!

Please subscribe to my A R Blog: Tom’s AR Blog or or get my RSS feed: Tom’s AR RSS Feed

Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205,  CYPRESS, CA 90630

714-895-2174 Direct; 714-398-8292 Fax  Tom@TomWaite.com

THE LAST TIME (1978-1982) INFLATION LED THE WAY!

 

The last time our Government tried to ‘MONITIZE’ the National Debt was when Jimmy C got the Ugly Stick from, Gerald Ford who got it from, Richard Nixon (who TRIED price controls – did not work out well) who got it from LBJ…as a result of the GREAT SOCIETY!!! SEE HOW OLD I AM? The financial blogs this week are speculating on two things. 1)  HUGE! Price inflation of Commodities such as Oil, Food and Energy (not counted in the CPI) (I’m not making that up…the CPI does’t count the stuff that inflates in the “inflation rate” since doing that KILLED Carter’s presidency – well, that and the handling of the Hostages, Gas Crisis, Energy problems…not enough space for this discussion here…). 2) The Municipal Bond Market crashing due to that TERRIBLE Meridith Whitney…who exposed the Emperor with Nudie habits…like SPENDING WAY TOO MUCH LIKE A DRUNKEN SAILOR WITH HIS BUDDY’S WALLET! (I apologize to all of the Drunken Sailors who read my blog…I didn’t mean anything by it…honest) There have been NO fixed interest rate loans for Apartment Buildings or Commercial since 2008…so they’re already Scre&#d when the rates rise.  Look for more defaults in apartment properties which are on the verge due to unemployment. Anyway!  Get ready for the House Interest Rates to Head NORTH!

HOME SALES DROP IN JANUARY TOO! N.A.R. REPORT – BUY APARTMENT BUILDINGS!

I just saw a report that N.A.R. found that home sales dropped by nearly 3%, again, in January. 

When buyers are scarce, the Inventory of homes builds up on the market.  The Smart Folks are still predicting a Tsunami of FORECLOSURES coming in March and into the Second Quarter of 2011.

The less homes that are purchased, the more the Value of Homes Sinks…the lower the Market Value of Homes…the more homes fall below the Underwater Homes Point. 

THE MORE HOMES THAT FALL BELOW THE UNDERWATER LINE…THE MORE FORECLOSURES and SHORT SALES.  This isn’t Rocket Science…just common sense. 

Out of ALL of the folks who lost their homes in the 1980s and 1990s in California, the estimate is that 40% of them became a nearly permanant renting class until the mid-2000s…then they jumped in too late and at too high a price. 

NOW, they will resolve to that “I will NEVER allow myself to risk buying a home, again!”.  So, if 40% to 50% of the Foreclosed homeowners will NEVER own again…the demand for Apartments and Rental Homes will grow VERY QUICKLY in Southern California…and elsewhere in America.

NOW IS THE TIME TO GET AHEAD OF THAT CURVE….BUY APARTMENT BUILDINGS (4 PLEXES GET SINGLE FAMILY HOME LOAN STATUS EVEN IF THEY ARE “NOT” OWNER OCCUPIED). 

THE EASIEST BUILDINGS TO SELF MANAGE ARE DUPLEXES TO FOURPLEXES…one can still easily manage 5 to 8 units, however, there are loan issues because they are considered Commercial Property and it’s a real issue if you have vacancies in this unit range. 

Feel free to call, email or text me with questions about how to invest in Apartment Buildings before the prices break out upward, again!

More info at my Active Rain Blog…Please subscribe TOM’S A R BLOG or RSS:  TOM’S A R RSS LINK 

Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205 CYPRESS CA 90630

714-895-2174 Direct;  714-398-8292 Fax   Tom@TomWaite.com

FINALLY SOME GOOD NEWS – CONSTRUCTION OF APARTMENTS IS WAY UP

The GOOD NEWS is that construction of Apartment Buildings is rising quickly…needed to house all of the folks who lost their homes and the new families that have been and will be created over the next few years.

Apartment building construction has been nearly non-existent for a number of years so it’s well overdue to start.  Many of the properties have gotten old and are not being maintained due to lack of supply…competition will solve that problem.

Housing construction is likely to remain VERY LOW for the next few years as the Resale Market works down the excess inventory left over from all of the past, current and coming foreclosures and short sales.

At least in a couple of years the folks who need to rent will have someplace to live.

Those who Buy Apartment Building Investment Properties in the Very Near Future will be the RICH INVESTORS of the next up cycle…even if it is shallow…because the TRAUMATIZED folks who lost their homes will become a permanant renter class.

Please subscribe to my Active Rain Blogg or get my RSS feed:

http://activerain.com/blogs/tomwaite    http://activerain.com/blogs/tomwaite/rss

Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205

CYPRESS CA 90630

714-895-2174 Direct

714-398-8292 Fax

Tom@TomWaite.com

Why Apartment Building Investments?

Great question isn’t it?  Who would want to invest in apartment buildings?  Well, the Fed has decided to make a LOT of additional money available to build Multi-Unit Apartment Buildings, Construction is up ONLY in the construction of Apartment Properties. Why?

There is a growing number of people who have lost their homes and have been, or will be, so deeply traumatized by that event that they will never, in their lifetimes, buy another home to avoid repeating that type of loss.

Think of it…a PERMANENT renter class.  It looks like 15% to 20% of the housing stock in America will deal with some type of traumatic issue with their mortgage and leave family members to be renters.

Those with some foresight, who get on the Investment Property bandwagon early will reap the benefits of this NEW REALITY…the New Normal, if you will.

I will be writing more in the days to come.

The richest folks in world history have always made that happen by owning Investment Real Estate!

 Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205

CYPRESS CA 90630

714-895-2174 Direct

714-398-8292 Fax

Tom@TomWaite.com

ORANGE COUNTY APARTMENT BUILDING INVESTMENTS DISTRESSED SALES

136 11th Seal Beach CA 4units

 

Seal Beach CA:        Client Full Report + Photos   

Placentia CA:           Client Full Report + Photos   

Garden Grove CA:  Client Full Report + Photos 2-22

ORANGE COUNTY DISTRESSED SALE APARTMENT BUILDING INVESTMENTS are among the best bargains available to you today. 

These properties are available at prices well below the comparable sales due to the level of difficulty involved in acquiring them and upgrading them to obtain the highest current market rents.

If you have sufficient cash available for a 30% to 40% downpayment as well as the cash necessary to upgrade the units and complete deferred maintenance…you could win in this real estate lottery.  

DISTRESSED PROPERTIES come in several different conditions.  Short Sales, Foreclosures, Bank Owned, Corporate Owned and several other terms are considered among the distressed property category.

Here are just a few of the many great deals available to you in the Low Priced smaller building range.

Feel free to call me at:

Tom Waite, Thomas Waite Real Estate Broker: 714-895-2174 Tom@TomWaite.com