The long-predicted double-dip in housing has begun, with cities across the country falling to their lowest point in many years, data released Tuesday showed.
Prices in 20 major metropolitan areas fell 1 percent in November from October, according to the Standard & Poor’s Case-Shiller Home Price Index. The index is only 3.3 percent above the low it reached in April 2009 and has fallen fell 1.6 percent from a year ago.
“A double-dip could be confirmed before spring,” the chairman of S.&P.’s index committee, David M. Blitzer, said.
Eight of the 20 cities in the index fell to new lows for this cycle, including Atlanta; Charlotte, N.C.; Portland, Ore.; Miami, Seattle; and Tampa, Fla. Only a handful of places — essentially California and Washington — saw prices rise.
Analysts said the declines would continue even if they would be nowhere near as intense as in 2007 and 2008.
“The enormous supply overhang of existing homes (particularly factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time,” Joshua Shapiro, the chief United States economist of MFR Inc., said.
The housing market, which usually leads the economy out of a recession, is holding it back this time. New home sales are in the doldrums and mortgages are hard to come by. Government programs have stanched the bleeding but do not provide permanent relief.
In some cities, the decline over the last year was quite sharp.
Prices in Atlanta and Chicago fell more than 7 percent, exceeding even the drops in the perennially troubled Detroit and Las Vegas.
The Case-Shiller Index is a three-month average of prices. One hopeful sign is that on both a seasonally adjusted and an unadjusted basis, the declines measured in November were less than in October.
The 20 cities fell 0.5 percent on seasonally adjusted basis in November after a 1 percent drop in October.
DAVID STREITFELD, On Tuesday January 25, 2011, 10:43 am EST
Wednesday, January 26, 2011
FHA extends suspension of ‘anti-flipping’ rule for another year
FHA extends suspension of ‘anti-flipping’ rule for another year
The rule was intended to prevent speculators from defrauding the government, but it also stifled the purchase and renovation of foreclosed homes by legitimate investors.
For years the federal government prohibited the use of Federal Housing Administration mortgage financing by buyers purchasing homes from sellers who had owned the property for less than 90 days. The idea was to prevent speculators from defrauding the government through quick flips of houses — often involving straw buyers and corrupt appraisers — at wildly inflated prices.
One side effect of that policy had been to stifle purchase-and-renovate projects by legitimate, small-scale investors who buy houses after foreclosure or loan defaults and then resell them in substantially improved condition. In many parts of the country, first-time and moderate-income buyers often sought to buy these fixed-up houses using FHA-insured mortgages with 3.5% down payments, but were prevented from doing so by the “anti-flipping” rule.
This left large numbers of foreclosed, vacant houses sitting unsold and deteriorating, with negative effects on the values of neighboring properties.
Last January, FHA Commissioner David H. Stevens announced a one-year suspension of that rule, permitting qualified buyers to obtain FHA mortgages on properties that were acquired by rehabbers less than 90 days before. The plan, set to expire at the end of this month, came with safeguards for purchasers, including inspections and multiple appraisals in some cases to document the amounts spent by investors on the improvements.
Vicki Bott, deputy assistant secretary for single-family housing at the FHA, confirmed in an interview that the agency expects to continue the policy for another year. Not only have first-time buyers responded overwhelmingly to the opportunity to buy “turnkey” renovated homes with low down payments, she said, but they have performed well on their mortgage obligations.
“Obviously we have concerns about flipping in general,” Bott said, but the FHA has seen none of the fraud problems, defaults and re-foreclosures that cost the agency millions in insurance payouts in earlier years.
Investor Paul Wylie, who with a group of partners and contractors specializes in acquiring, renovating and reselling foreclosed and distressed houses in the Los Angeles area, says the government’s policy “has been a very positive approach” because “it recognizes the role that [private investors] can play in helping the housing market get back on its feet.”
In the L.A. market, Wylie said, FHA financing accounts for 40% of all home purchases and 60% of purchases in predominantly Latino and African American communities.
Buying foreclosed houses “comes with a lot of risk factors,” Wylie said. “There’s no title insurance. We don’t have a good idea of the extent of the defects” inside properties that have been sitting vacant or vandalized for months. Some houses come with delinquent property taxes, which Wylie’s group typically must pay.
Then again, the profit opportunities can be significant as well. Most of the Wylie group’s houses sell for more than 20% higher prices than Wylie paid at acquisition — a quick turnaround gain that potentially works for buyers, sellers, neighborhoods and, yes, the FHA itself.
The rule was intended to prevent speculators from defrauding the government, but it also stifled the purchase and renovation of foreclosed homes by legitimate investors.
For years the federal government prohibited the use of Federal Housing Administration mortgage financing by buyers purchasing homes from sellers who had owned the property for less than 90 days. The idea was to prevent speculators from defrauding the government through quick flips of houses — often involving straw buyers and corrupt appraisers — at wildly inflated prices.
One side effect of that policy had been to stifle purchase-and-renovate projects by legitimate, small-scale investors who buy houses after foreclosure or loan defaults and then resell them in substantially improved condition. In many parts of the country, first-time and moderate-income buyers often sought to buy these fixed-up houses using FHA-insured mortgages with 3.5% down payments, but were prevented from doing so by the “anti-flipping” rule.
This left large numbers of foreclosed, vacant houses sitting unsold and deteriorating, with negative effects on the values of neighboring properties.
Last January, FHA Commissioner David H. Stevens announced a one-year suspension of that rule, permitting qualified buyers to obtain FHA mortgages on properties that were acquired by rehabbers less than 90 days before. The plan, set to expire at the end of this month, came with safeguards for purchasers, including inspections and multiple appraisals in some cases to document the amounts spent by investors on the improvements.
Vicki Bott, deputy assistant secretary for single-family housing at the FHA, confirmed in an interview that the agency expects to continue the policy for another year. Not only have first-time buyers responded overwhelmingly to the opportunity to buy “turnkey” renovated homes with low down payments, she said, but they have performed well on their mortgage obligations.
“Obviously we have concerns about flipping in general,” Bott said, but the FHA has seen none of the fraud problems, defaults and re-foreclosures that cost the agency millions in insurance payouts in earlier years.
Investor Paul Wylie, who with a group of partners and contractors specializes in acquiring, renovating and reselling foreclosed and distressed houses in the Los Angeles area, says the government’s policy “has been a very positive approach” because “it recognizes the role that [private investors] can play in helping the housing market get back on its feet.”
In the L.A. market, Wylie said, FHA financing accounts for 40% of all home purchases and 60% of purchases in predominantly Latino and African American communities.
Buying foreclosed houses “comes with a lot of risk factors,” Wylie said. “There’s no title insurance. We don’t have a good idea of the extent of the defects” inside properties that have been sitting vacant or vandalized for months. Some houses come with delinquent property taxes, which Wylie’s group typically must pay.
Then again, the profit opportunities can be significant as well. Most of the Wylie group’s houses sell for more than 20% higher prices than Wylie paid at acquisition — a quick turnaround gain that potentially works for buyers, sellers, neighborhoods and, yes, the FHA itself.
Rehabbers Wanted in The Inland Empire.
1) 322 Gifford Ave. Los Angeles, CA. 90063
SFR
3 Bedrooms
1 Bath
1106 Sqft.
3999 Lot Size
Price $ 163,900
Rehab $ 10,000- 15,000
Retail Value-$ 235,000
_______________________________________________________________________
2)1069 Sycamore Ct. Upland, CA. 91786
SFR
2 Bedrooms
1 Bath
802 Sqft
6000 Lot Size
Price $150,000
Rehab- $15,000
Retail Value- $210,000
__________________________________________________________________
4) 3168 Hideout Ln. Corona, CA. 92882
SFR
4 Bedrooms
2 ½ Bath
2287 Sqft.
8276 Lot Size
Price- 285,000
Rehab Cost- $10,000
Retail Value- $ 365,000
______________________________________________
9) 827 N. Vineyard Ave. Ontario, CA. 91764
Unit A- 3 Bedrooms 1 3/4 Bath
Unit B- 2 Bedrooms 1 Bath
Unit C- 2 Bedrooms 1 Bath
Unit D- 2 Bedrooms 1 Bath
3,832 Sqft
6,222 Lot Size
$ 315,000 Price
Rehab Cost-$ 32,000
Retail Value-$ 440,000 Retail Value
_______________________________________________
10) 3773 Roosevelt St. Riverside CA. 92503
8-1 Bedroom 1 Bath
1-2 Bedroom 1 Bath
. Amenities include a laundry facility and open parking spaces. One bedroom units have been converted into two bedroom units.* Units do not have kitchens. Small kitchenetts only.
Price- $504,950
Retail Value- $650,000
If interested please email me for appraisal
Click on link to see 2 Deals not listed on MLS.
http://socalhartfordinvestmentgroup.ning.com/forum/topics/2-so-cal-deals-not-listed-on
Fernando Young
Acquisition Director/Investment Consultant
424.259.3733 V/M
661.262.3115 Direct
Note: Please do your own due diligence. This information is provided to the best of our
knowledge and we make no guarantees to the accuracy of this data.
SFR
3 Bedrooms
1 Bath
1106 Sqft.
3999 Lot Size
Price $ 163,900
Rehab $ 10,000- 15,000
Retail Value-$ 235,000
_______________________________________________________________________
2)1069 Sycamore Ct. Upland, CA. 91786
SFR
2 Bedrooms
1 Bath
802 Sqft
6000 Lot Size
Price $150,000
Rehab- $15,000
Retail Value- $210,000
__________________________________________________________________
4) 3168 Hideout Ln. Corona, CA. 92882
SFR
4 Bedrooms
2 ½ Bath
2287 Sqft.
8276 Lot Size
Price- 285,000
Rehab Cost- $10,000
Retail Value- $ 365,000
______________________________________________
9) 827 N. Vineyard Ave. Ontario, CA. 91764
Unit A- 3 Bedrooms 1 3/4 Bath
Unit B- 2 Bedrooms 1 Bath
Unit C- 2 Bedrooms 1 Bath
Unit D- 2 Bedrooms 1 Bath
3,832 Sqft
6,222 Lot Size
$ 315,000 Price
Rehab Cost-$ 32,000
Retail Value-$ 440,000 Retail Value
_______________________________________________
10) 3773 Roosevelt St. Riverside CA. 92503
8-1 Bedroom 1 Bath
1-2 Bedroom 1 Bath
. Amenities include a laundry facility and open parking spaces. One bedroom units have been converted into two bedroom units.* Units do not have kitchens. Small kitchenetts only.
Price- $504,950
Retail Value- $650,000
If interested please email me for appraisal
Click on link to see 2 Deals not listed on MLS.
http://socalhartfordinvestmentgroup.ning.com/forum/topics/2-so-cal-deals-not-listed-on
Fernando Young
Acquisition Director/Investment Consultant
424.259.3733 V/M
661.262.3115 Direct
Note: Please do your own due diligence. This information is provided to the best of our
knowledge and we make no guarantees to the accuracy of this data.
MUST SELL IN SO CAL
RECENTLY ACQUIRED PROPERTIES AT A TRUSTEE SALE (Listed below) are handled differently then the discounted properties noted above. THESE ACQUIRED TRUSTEE SALE PROPERTIES ARE NOT LISTED ON THE MLS.
1) Duplex, 418 Centinela Ave. (BUYER DID NOT PERFORM. PROPERTY IS AVAILABLE AS OF 1/26
Inglewood 90302
Total of: 7 bedrooms 4 bathrooms
Total of: 2,212 square feet of living space
8,098 square foot lot
Occupied
$30 - $35k to clean up
Taxes are current
Valued at $349,000
Our price: $ 235,000
2) TRIPLEX - 1554, 1552, 1555 1/2 and 1556 N. Soto St
Los Angeles 90033
4 units:
2- 2 bedroom units
2- 1 bedroom units
3 occupied - 1 unit is vacant
Taxes are current
$360,000 - $375,000 value
25K clean up
Price to you $245,000
Buyer will assume responsibility for cash-for-keys with the occupants or may pursue an eviction.
Fernando Young
Acquisition Director/Investment Consultant
424.259.3733 V/M
661.262.3115 Direct
Click on this link for Inland Empire Fixers.
http://socalhartfordinvestmentgroup.ning.com/forum/topics/inland-empire-fixers
Note: Please do your own due diligence. This information is provided to the best of our
knowledge and we make no guarantees to the accuracy of this data.
1) Duplex, 418 Centinela Ave. (BUYER DID NOT PERFORM. PROPERTY IS AVAILABLE AS OF 1/26
Inglewood 90302
Total of: 7 bedrooms 4 bathrooms
Total of: 2,212 square feet of living space
8,098 square foot lot
Occupied
$30 - $35k to clean up
Taxes are current
Valued at $349,000
Our price: $ 235,000
2) TRIPLEX - 1554, 1552, 1555 1/2 and 1556 N. Soto St
Los Angeles 90033
4 units:
2- 2 bedroom units
2- 1 bedroom units
3 occupied - 1 unit is vacant
Taxes are current
$360,000 - $375,000 value
25K clean up
Price to you $245,000
Buyer will assume responsibility for cash-for-keys with the occupants or may pursue an eviction.
Fernando Young
Acquisition Director/Investment Consultant
424.259.3733 V/M
661.262.3115 Direct
Click on this link for Inland Empire Fixers.
http://socalhartfordinvestmentgroup.ning.com/forum/topics/inland-empire-fixers
Note: Please do your own due diligence. This information is provided to the best of our
knowledge and we make no guarantees to the accuracy of this data.
So Cal Fix and Flips, EASY MONEY...
1. CHINO HILLS, CA - 3769 Garden Court - 4/2, 1,600 sq, 1 acre lot, year 1983, situated on a cul-de-sac. Price $333,000. Repairs: $10,000. ARV: $408,000-415,000 Rental rate $1800/monthly. ACCESS: Combo code. Pls inquire if interested. Single level SFR in Chino Hills, large back yard, covered patio, indoor laundry, tile floors throughout, kitchen in usable condition, bathrooms highly upgraded with granite counter tops, block rear and side fence.
2. COLTON, CA - 2427 S. La Cadena - 3/2, 1,380 sq, 8,200 lot, yer 1982. Price $166,000. Completely rehabbed. FMV $210,000 per seller. The seller controls the sale of this property and it is listed "ACTIVE" for marketing purposes only. Please disregard the MLS price and notice the potential profits you can earn. This did come to me from another source seller is eager to sell.
3. TORRANCE, CA - 3615 W. 190th Street 90504-5705 - 3/2, 1,557 sq, 5,720 lot, 2 car garage. Price $374,000. FMV $495,000. VACANT. ACCESS: SUPRA KEY. NEEDS REPAIRS: Do not have the costs.
4. HIGHLAND, CA - 7534 Victoria Street - 4 plex. 1/1 each unit. Each unit rents for $675/mo. Two units are rented and you can easily fill the vacancies of the other two units. Repairs: 2-4K. Price: $206,000. FMV $250,000 per seller.
5. HIGHLAND, CA - 26853 9TH Street - Triplex, 3,212 sq, 0.14 acres, Price $237,000. FMV $270,000 per seller
6. RIVERSIDE, CA 92504 - 8570 Glencoe - SFR 3/2, 1,206 sq, 6,534 lot single story home. Price: $203,000. FMV $215,000 per seller
Do your own due diligence. Maybe some of these are retail opportunities @ slightly discounted prices...buy & hold
Fernando Young
Acquisition Director/Investment Consultant
424-259-3733
2. COLTON, CA - 2427 S. La Cadena - 3/2, 1,380 sq, 8,200 lot, yer 1982. Price $166,000. Completely rehabbed. FMV $210,000 per seller. The seller controls the sale of this property and it is listed "ACTIVE" for marketing purposes only. Please disregard the MLS price and notice the potential profits you can earn. This did come to me from another source seller is eager to sell.
3. TORRANCE, CA - 3615 W. 190th Street 90504-5705 - 3/2, 1,557 sq, 5,720 lot, 2 car garage. Price $374,000. FMV $495,000. VACANT. ACCESS: SUPRA KEY. NEEDS REPAIRS: Do not have the costs.
4. HIGHLAND, CA - 7534 Victoria Street - 4 plex. 1/1 each unit. Each unit rents for $675/mo. Two units are rented and you can easily fill the vacancies of the other two units. Repairs: 2-4K. Price: $206,000. FMV $250,000 per seller.
5. HIGHLAND, CA - 26853 9TH Street - Triplex, 3,212 sq, 0.14 acres, Price $237,000. FMV $270,000 per seller
6. RIVERSIDE, CA 92504 - 8570 Glencoe - SFR 3/2, 1,206 sq, 6,534 lot single story home. Price: $203,000. FMV $215,000 per seller
Do your own due diligence. Maybe some of these are retail opportunities @ slightly discounted prices...buy & hold
Fernando Young
Acquisition Director/Investment Consultant
424-259-3733
Wednesday, January 12, 2011
Looking to Partner up in Whittier.
Dear Investors.
Our mission at is to provide secure high ROI Real Estate Investment
Opportunities. We currently have a new investment opportunity in a prime
Area of Whittier with a ROI of 25%. We have form a alliance with a private
equity firm located in Los Angeles. They will fund 100% of
acquisition all our Rehab Projects. As you may be aware in todays market
most Private lender only lend up to 55% or 60% of After Repair Value. And in
order to any private lender to loan full acquisition cost in today market
it's very difficult.
We are offering small inexperience individual a tool to earn high ROI with
minimum investment opportunity of only 25k to 50k. We would appreciate, if
you can refer individual that are interested in investment in this one's in
a life time opportunity. Remember " WINDOW OF OPPORTUNITY IS WIDE OPEN.
BUT IT WON'T LAST FOR EVER."
We also offer a 30% to 50% split of our Net Profit to referral sources that
bring in a investor.
Fernando Young
Acquisition Director
Our mission at is to provide secure high ROI Real Estate Investment
Opportunities. We currently have a new investment opportunity in a prime
Area of Whittier with a ROI of 25%. We have form a alliance with a private
equity firm located in Los Angeles. They will fund 100% of
acquisition all our Rehab Projects. As you may be aware in todays market
most Private lender only lend up to 55% or 60% of After Repair Value. And in
order to any private lender to loan full acquisition cost in today market
it's very difficult.
We are offering small inexperience individual a tool to earn high ROI with
minimum investment opportunity of only 25k to 50k. We would appreciate, if
you can refer individual that are interested in investment in this one's in
a life time opportunity. Remember " WINDOW OF OPPORTUNITY IS WIDE OPEN.
BUT IT WON'T LAST FOR EVER."
We also offer a 30% to 50% split of our Net Profit to referral sources that
bring in a investor.
Fernando Young
Acquisition Director
Owner Financing in Atlanta,
Atlanta, GA 30331
Price: $20,500
3.0Br / 1.0Ba
Sq Ft: 1,486
Property Details:
Exterior Features
White single story home in sitting on a fairly large lot, home has faircurb appeal and looks to be in good condition overall. Siding: Exteriorwall is made of wood/vinyl, home is clean and looks free of any damage.Windows: Intact. Soffits and Eaves: Intact. SF: (Lot) 42632. SF: (Home)1486. Patio/Porch: Roof: Asphalt shingle, looks to be in goodcondition, no major damage visible. Driveway: Gravel/grass.Interior: Seems to be in fairly good shape overall, looks clean, damageto one wall in bedroom, no major issues looks fine.
Interior Features
Seems to be in fairly good shape overall, looks clean, damage to one wall in bedroom, no major issues looks fine.Living Room: White walls, wood trim, green carpet, room is in good shape.Dining Room: White walls and trim, green carpet, looks fine, no issues.Kitchen: Vinyl floor, white walls, cabinets & sink are intact, room looks in nice condition.Bathroom: Tile floor, white & black walls tiles, appliances are in good order, looks in good shape.Bedroom: Are of similar make up: White walls & wood trim, pink carpet, all appear to be clean and healthy.Basement: None.Mechanics: Unknown.Garage: None.
Short-term Affordable Home Improvement Financing: (Basic overview, terms vary)
* 35% down
* No application or credit check
* 3, 6 and 9 month terms
* Upfront points can be financed
* Equal monthly interest and principal payments required
* For purchases of more than one property with financing cross default provisions are required.
For example, on a $30,000 purchase, you would make a $10,500 down payment and would pay the remaining $19,500, along with interest and points, over a period of up to nine months. During that time, you would make necessary improvements and then either resell the property or refinance with a traditional mortgage and rent it.
Price: $20,500
3.0Br / 1.0Ba
Sq Ft: 1,486
Property Details:
Exterior Features
White single story home in sitting on a fairly large lot, home has faircurb appeal and looks to be in good condition overall. Siding: Exteriorwall is made of wood/vinyl, home is clean and looks free of any damage.Windows: Intact. Soffits and Eaves: Intact. SF: (Lot) 42632. SF: (Home)1486. Patio/Porch: Roof: Asphalt shingle, looks to be in goodcondition, no major damage visible. Driveway: Gravel/grass.Interior: Seems to be in fairly good shape overall, looks clean, damageto one wall in bedroom, no major issues looks fine.
Interior Features
Seems to be in fairly good shape overall, looks clean, damage to one wall in bedroom, no major issues looks fine.Living Room: White walls, wood trim, green carpet, room is in good shape.Dining Room: White walls and trim, green carpet, looks fine, no issues.Kitchen: Vinyl floor, white walls, cabinets & sink are intact, room looks in nice condition.Bathroom: Tile floor, white & black walls tiles, appliances are in good order, looks in good shape.Bedroom: Are of similar make up: White walls & wood trim, pink carpet, all appear to be clean and healthy.Basement: None.Mechanics: Unknown.Garage: None.
Short-term Affordable Home Improvement Financing: (Basic overview, terms vary)
* 35% down
* No application or credit check
* 3, 6 and 9 month terms
* Upfront points can be financed
* Equal monthly interest and principal payments required
* For purchases of more than one property with financing cross default provisions are required.
For example, on a $30,000 purchase, you would make a $10,500 down payment and would pay the remaining $19,500, along with interest and points, over a period of up to nine months. During that time, you would make necessary improvements and then either resell the property or refinance with a traditional mortgage and rent it.
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