I am reading the book Canada by one of my favorite authors, Richard Ford. Early in the novel which centers on irrational acts committed by the main character’s parents, he writes, “Common sense should have dictated none of this ever take place. But no one had access to common sense.” That is how I feel […]
I recently had a investor client call saying they would need my services to help rent out their property in Vienna VA. This is a property they bought for $225,000 and is now worth $325,000. They are blessed to have been able to pay off the home and own it free and clear.
This client has called a few times over the past two years and asked about buying another property but even though they were able to pay off the existing rental, there is not much cash available now to purchase a new investment and for various reasons (mainly being that they recently purchased a principal residence with me) the numbers never seemed to work for that next investment. So when I heard that their long term tenant had left and they wanted to rent it again, I proposed they sell it instead and here is why.
Technology is great. When I started in the business in the late 80s I would have never thought I would be writing a blog (and would not even have known what the word meant). I would have never thought my clients would be using a computer to find homes. And that they would be able to pull up pictures, get aerial views, estimated values and more – unfathomable.
This is all wonderful but despite all of our advances, nothing beats old fashioned “boots on the ground” (just saw Acts of Valor with my son). Let me explain what I mean
There was an article in this month’s issue of Update Magazine, the trade magazine for the Northern Virginia Association of Realtors on the ins and outs of Section 8 housing. I will summarize the key points and add in my experiences with Section 8 tenants . (A link to the full article is at the […]
For years I have kept a record of the market stats. I have tried to keep my summaries simple. I look at the 3 major categories of housing: single family detached, townhomes and condos. Through different market cycles, they move in different directions. I also pay attention to days on market, inventory levels and the percentage of sale price to list price.
For a more thorough analysis, I would recommend clicking on the Real Estate Business Intelligence link under the Market Stats tab above. There you can not only look at a variety of charts and graphs but can drill down to very specific sub markets including zip codes.
The chart below gives you a good overview of how 2011 compared to 2010. The numbers reflect activity in Fairfax County, Arlington County and the cities of Alexandria, Falls Church and Fairfax.
Recently I wrote a blog outlining the basics of buying foreclosures, short sales and other distress property. I mentioned in that post that short sales are a vast wilderness with many pits, traps and paths leading nowhere. The stories below reinforce that statement. These are real cases I have worked over the last few years. The names and some other data have been modified to protect privacy but the key points are accurate and, most importantly, the timelines are real. The moral of all of these stories is that before deciding to pursue a short sale, make sure you have enough time and resources to wait for the bank to make a decision. If you are one who likes certainty and control, the short sale world is not for you. There is very little the buyer or buyer agent can do to shorten the time between contract and settlement. The pace of the transaction depends on the bank negotiator, the seller and the listing agent. On to the stories….
Many buyers ask me about buying foreclosures or short sales thinking they are the “best” deals. I have helped buyers, particularly investors, make great below market acquisitions but just because a home is a foreclosure or short sale does not mean it is a great value. And, more importantly, depending on your situation and goals, distress property may not be the right type of property to consider.
Below is a brief review of the pros and cons of foreclosures and short sales. I also have some comments on court ordered sales, another type of distress sale but one that is not as prevalent as the other two.
One of the most powerful tools in the real estate investors arsenal is the 1031 exchange. In our current market cycle with a great disparity among markets throughout the country, now may be an great time to take advantage of this opportunity to expand and diversify your real estate portfolio. It could be a time to sell high and buy low.
