Unprecedented Times
 One of the reasons real estate has enabled so many people to retire either earlier or more comfortably is because occasionally a market comes along where large sums of money can be made in a short period of time. We are in such a market. Here is why. Let's look at the numbers of the Faulkner Street property I featured in April.
Purchase Price: $107,000
Renovation Costs: $25,000
Closing Costs: $5,400
No Mortgage Holding Costs: Paid all Cash
Total Capital Outlay: $137,400
Sale Price: $185,000
 If that were an isolated case, it would simply be a good deal. What makes this deal an overall commentary on the market is the fact that these opportunities can be found systematically. We just acquired title to a property from a trustee sale on Hemmingway in San Jacinto on August 10, 2009, that we bought for $123,000. We completed $7,000 of renovations and listed it last Thursday August 20, 2009, for $160,000. By Monday August 23, 2009 we had 3 offers over asking price as high as $173,000.
We won the bid on another house at the trustee sale on Friday August 21, 2009 in Temecula for $309,000 with a market value of about $365,000. The trustee hasn't even conveyed title yet and we have an interested buyer waiting to present an offer. What's nice about the properties we are targeting is that they do not need a lot of work, which lowers the risk of unexpected renovations costs.
The reason this market has so much profit generating potential is that foreclosures are not slowing down. In fact, foreclosure activity jumped 7 percent in July from June and 32 percent from a year earlier according to RealtyTrac. July filings mark the third time in five months that a new record has been set for foreclosure activity. This means that investment capital deployed now has several years to rotate through deals. Because the current volume of profit
At the low price points, the market is absolutely flooded with buyers. One of my agents is representing two clients who are first-time homebuyers looking for condos in the Temecula/Murrieta area. My agent has written over 30 offers in the last three weeks, many of which were over asking price, and still hasn't gotten an offer accepted. These new buyers do not have the cash to go to a trustee sale and many of them do not have enough reserves to fix up a bank owned property. Therefore, they end up having to buy either from investors or from banks that spend the money to fix up their REO's before putting them on the market (few properties these days in affordable areas are being sold as traditional transactions from a homeowner/seller to a new homeowner/buyer).
Our team now goes to trustee sales three days a week and we will continue to update you on what's happening at the street level.
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LOL - Laughs OnLine
"It's time for your 7am extreme wake up call"
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Trailer Trash
by Dennis Duling
Motion pictures in their ideal incarnation are a grand expression of art. On the other hand, the movie preview or trailer, as it is known in the industry, is pure science. Studios and production companies rarely have anything to do with the content of trailers, as that has been in the hands of marketing companies for years now. When you consider that the average feature length film is around 110 minutes and the typical trailer is under 120 seconds in length, every second of trailer footage is precious.
As a frequent Cineplex attendee, I've noticed a trend that I find especially annoying. I call it frenetic escalation, where the trailer creators have taken the 120 most action-packed seconds from the film and cut them into decreasing lengths as the trailer progresses, so the action and sound is hurled at you faster and faster until it achieves strobe-like intensity. Imagine if these guys had gotten their hands on The Wizard of Oz. The trailer would have consisted of trees throwing apples, the scarecrow being ripped apart, flying monkeys, melting witches and probably not a single shot of Dorothy or the yellow brick road
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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
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Informative Loan Modification Webinar
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Upcoming Webinars
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Be on the lookout for upcoming webinars in the "Flipping the Smart Way" Series:
How to Identify a Profitable Flip Project
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What to Look for in the Home Inspection
How to Market for Resale
Analyzing Your Profits
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