Friday, July 29, 2011

Our Local Hero Wins for Disabled Senior Citizens

My friend and associate, Anthony Marler, won justice without having to go to court.

Do you remember my first blog post about this? Anthony was denied development rights to his land after the city council declared it a "wetlands." The city attorney warned them that Anthony could sue and that the council's position was indefensible.

Did the city council listen? No-o-o-o-o-o-o!

So, Anthony sued in federal court.

It wasn't much of a fight.

The city capitulated.


Without a fight.

Farr West council permits assisted-living facility - Standard-Examiner

Now the only question is: How much will it cost the citizens for Farr West to pay for the stupidity of their elected officials?

Saturday, July 23, 2011

Beware the Homeowners Association

Did you know that a home owners association can foreclose if you don't pay dues?

They can regulate your lawn? Your garbage?

They can have a "special assessment" that MUST be paid, regardless of how much it is?

Read this, it's a real eye-opener...

Neighbor vs. neighbor as homeowner fights get ugly | The Salt Lake Tribune

Have you ever had a run-in with an association?

Transaction #3 of 52 in 2011: Deep Discount for REO 4-Plex

Small, multi-family properties have been hit hard throughout the country. In Utah the duplex, tri-plex, and four-plex prices have been hit much harder than single-family homes.

Why Multi-Family Has Been Hit Harder than Single-Family in Utah
The answer is quite simple: Supply and Demand. The supply for multi-family residential is growing as investors try to divest and other investors have problems and the banks foreclose.

Demand is down for two reasons:
  1. People feel that real estate is not a good investment right now- even when it is on sale.
  2. Credit is more difficult for multi-family purchases. Banks are asking for 20% - 25% down. Most banks require this to be cash. Credit needs to be 700+ for most banks. Finally, the new rules limit investors to four properties so active investors that have cash and good credit still won't qualify.
We Make a Bid We Couldn't Refuse
After searching the MLS for properties, we made an offer on a 4-plex. The purchase price plus estimated fix-up was HALF of what the property would have sold for 2-3 years ago.

The bank accepted the offer.

The property will cash flow for years to come.

Friday, July 15, 2011

Far West City Hates Senior Citizens?

Anthony Marhler is a business associate of mine. He is honest and poured a lot of money into the development of this project only to have it rejected over fear of 24 dissabled senior citizens.

Read the full article:

OUR VIEW: NIMBY anger - Standard-Examiner

He should be allowed to build. What's your opinion?

Wednesday, July 13, 2011

Transaction #19 of 52 in 2011: We Borrow Private Funds

Private financing creates wins:

1. We win by having someone we can work with. Not a bank, but a real person that we can talk to about our project, show them our property and work out terms.

2. The private lender wins from much higher interest rates than banks are offering and the securing of a first position trust dead.

We Borrow $45,000 Against a $90,000 House
That right, a 50% loan to value. We borrowed it from a financial friend that we new for over two years before we did our first transaction.

Now that we've done our first transaction, we expect to pay him back soon. When that happens, he said he'd be happy to re-lend it to us for another project!

Does anyone you know what to lend money secured by rental real estate? Let me know!

Thursday, July 7, 2011

Bank of America vs. Citizens of Utah: Continued

Once again, the private sector comes through! The Utah attorney general's office threatened to sue Bank of America, but the Salt Lake City law firm of Mumford West & Snow struck the first blow last week.

Learn more from our friends at the Salt Lake Tribune.

Utah law firm sues to halt Bank of America foreclosures | The Salt Lake Tribune

So, who has a mortgage with Bank of America?

Wednesday, July 6, 2011

Is Real Estate Better Off without Government Intervention?

We know that loose lending standards creative financial bubble.

Now it looks like tight lending standards are preventing a housing recovery.

U.S. Housing Recovery Stymied by Government - Bloomberg

My opionion: Government should do less, not more. Set fewer rules and then police them better.

Tuesday, July 5, 2011

Some Good News: Spring Buying Boosts RE Prices in 13 Major Cities

The good news continues to come out little by little.

News is always looking in the rear view mirror. This is a glimpse into the rear view mirror of the recent past.

My opinion about Utah? Utah will lag 12-24 months behind the rest of the country.

Why? That's just the way it is here. We saw the impact of the economic downturn late and we'll see the same on the recovery. The same can be said of fashion, hair styles, etc. Another opinion: Our time lag is one of the reasons we have a more stable economy here.

Want more information? Read this article from our friends at the Salt Lake Tribune.

Spring buying boosts home prices in 13 top cities | The Salt Lake Tribune

One area that Utah seems to lead the country in trends? Foods! Smoothies, Kentucky Fried Chicken, A&W, Jello.....

Saturday, July 2, 2011

More Buy & Hold Real Estate Investment Opportunities in Utah

Home sales fall, opportunities for buy-and-hold real estate investors increase.


1. If people don't buy they need to rent. Buy and Hold investors need renters.

2. If people don't buy, prices stay low. The key to holding is monthly cash flow. The key to cash flow is buying low.

Read more:

Home sales fall to ‘11 low as first-timers balk | The Salt Lake Tribune

Are you convinced yet that NOW is the time to buy and hold?