Something is Stirring
 Next week there will be no newsletter because we will be in Edmonton, Canada at a Recreational and Investment Property Show. How we came to be a part of the show is an interesting commentary on the state of the U.S. housing market.
Canadians have been watching U.S. home prices plummet and have apparently decided it's time to capitalize on our troubles. So we got a call from the Bank of Montreal and were asked if we could bring discounted U.S. property to their show, which has in the past featured primarily Canadian vacation property. They were attracted to the fact that we have everything in house (realty, mortgage, property management and renovation capabilities) because they saw this as an ideal solution for Canadians investing across national lines. This request presented two challenges: 1) We have no experience in selling properties to Canadians, and 2) we had no idea how receptive builders in the U.S. would be to giving us the exclusive right to showcase their property in a Canadian property show. But, since growth requires getting outside of your comfort zone, we decided to go for it and the journey has been incredibly eye opening.
We were shocked at the result. Not only were developers open to the idea of thinking outside of their normal marketing channels, but we have been approached by and have now partnered with some of the top realtors in the country, who are bringing property at prices that are below the constructions loans that were used to build the properties. In just a few months we were able to assemble over half a billion dollars of some of the best property in California, Arizona, Nevada and Hawaii at specially reduced pricing just for the show. I would love to attribute this success to our disarming charm and likeability, but the truth is that it is much more of a comment on the severity of local market conditions.
Foreign buyers have always played a role in the warm climate housing markets, but this time around I think their role will be more vital. There is no question that they will aid in soaking up some of the inventory that is continuing to act as a drag on the housing market. But it's bigger than that.
1. Why are Chinese investors driving around on investor bus tours with suitcases of money buying properties all cash?
2. Do Canadians understand what I explained in a recent article, namely that a discounted price bottom happens before the fair market value price bottom?
Whatever the explanation, these buyers are serious and well capitalized. When a luxury, gated community in Arizona that was selling for $350k is now at $139k or when a luxury condo on the Vegas strip that was selling for $400k is selling for $170, I can't say that I blame them.
|
LOL - Laughs OnLine
"New Trailer Condo project with clubhouse and pool on 1st level."
|
For Want of a Bushy Tail
I don't think any of God's creatures has gotten a shorter end of the stick over the years than the rat. Perhaps it all started going south for rats when it was (falsely) believed that they were responsible for the spread of the Bubonic Plague during the 14th century. Interestingly, as much as they are feared and loathed, rats are largely defenseless, falling prey to cats, traps, poisons, and if you have the misfortune to be a rat of the white lineage, a variety of needles filled with who-knows-what in labs from here to Oslo. On the other hand, their cousin, the mouse, is mostly thought of as "cute" and has been the "good guy" in countless cartoons and children's stories; think Mickey, Mighty and most recently, The Tale of Despereaux. In these same stories, the rat invariably turns up as the villain. I wonder if our friend, the rat, doesn't sometimes gaze longingly at the squirrel, thinking "I'm only a bushy tail away from being hand fed at the park".
|
Share If You Care
Our goal with this newsletter is simple: Cover every important topic that might help homeowners and investors make more informed decisions concerning real estate. You can help in two ways:
1) Send us any articles or information you come across that might be of interest to other readers
2) Forward this newsletter to anyone and everyone you know that owns or plans to own real estate!
Sincerely,
Kwame J. Granderson
Equinaire
| |
Free Educational Webinar
|
|
Free Loan Modification Webinar
Learn About...
1. Getting your best deal: Five things banks won't tell you
2. Understanding your options
3. Direct to bank vs. Legal Representation
4. How to qualify: homeowner vs. investor
Date: Tuesday, April 21, 2009
Time: 7PM - 8 PM
Register by clicking here
|
Upcoming Webinars
|
|
Be on the lookout for upcoming webinars on the following subjects:
· 2009 Market Trends
· How do I know when the market has bottomed out?
· The Granderson Composite Index
|
Need a Loan Modification?
AmeRestart Can Help
Lender: American Home Savings
Old Int. Rate 9.3%
Old payment: $2,721
New int. rate: 5%
Interest only for
5 years fixed
New payment: $1,405
These are real numbers!
Click Here to learn more.
Call 877.619.3258
|
|
Investor Tip
|
|
As a landlord, you cannot ask, a tenant for first and last months rent. You can ask for first month's rent and a larger security deposit provided the total does not exceed three times the rent.
|
Newsletter Archive
|
Want to check out a previously published newsletter?
Click here to access our archives.
|
|
