By Don | August 7, 2009
Our office is across Victoria Avenue from the County’s Hall of Justice where the majority of foreclosure auctions in Ventura County are held every day at 11:00. I was interested in a particular commercial property scheduled for sale yesterday, and so for those interested in what happens at a foreclosure auction read on… Read the rest of this article »
By Don | March 2, 2009
On Friday I met with an investor who owns a number of rental properties by the SeaBee base. I told him, “I’ve got good news and I’ve got bad news”. The good news is that inventory is way down from last summer. The bad news (for investors like him) is that property values have plunged. Here is detailed data of active listings, homes in escrow, and sold listings for a micro section of Oxnard: Read the rest of this article »
By Don | October 28, 2008
You know many investors are snapping up REO (bank owned) properties. But why?
You can buy any number of nice homes for about $400,000. These will be 3+2 or 4+2 homes, about 1,500 or 1,600 square feet in good family neighborhoods. Assume for now you pay all cash. Let’s run some numbers:
Income – $2,000 a month gross x 12 months = $24,000
Taxes – about $400 a month x 12 months = <$4,800>
Insurance = <$750>
Vacancy (5%) = <$1,200>
Maintenance (5% budget per year) = <$1,200>
Approximate Net Operating Income (NOI) = $16,000 (4% cash on cash return)
But are investors buying properties today because of cash flow? NO! They are making the assumption prices will come back over the long term and are looking for future appreciation. That’s why properties look so good today to investors!