tag:blogger.com,1999:blog-28832040229938873522024-03-13T21:50:50.844-08:00Clear Day CapitalDedicated to exploring issues of interest to northern Utah real estate investors and the professionals that support them.Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.comBlogger101125tag:blogger.com,1999:blog-2883204022993887352.post-89676117236041924082011-08-24T07:23:00.001-08:002011-08-27T10:57:59.666-08:00Renters Plan to Continue Renting. Blame Uncertainty<div><span class="Apple-style-span" >Do you own rental properties? If you do, take heart for good vacancy rates for the foreseeable future.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >People who are renting plan to continue renting. Why? Here are the reasons that I hear:</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >1. Difficult to get financing </span></div><div><span class="Apple-style-span" >2. Perceived difficulty to get financing, so qualified people don't even try</span></div><div><span class="Apple-style-span" >3. Fear of real estate prices declining further</span></div><div><span class="Apple-style-span" >4. Change of attitude- people don't want the responsibility of home ownership</span></div><div><span class="Apple-style-span" >5. Perception that it is more expensive to own than to rent</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >Read more about the trend...</span></div><div><span class="Apple-style-span" >
<br /></span></div><a href="http://www.mortgagenewsdaily.com/08172011_fannie_mae_housing_survey.asp"><span class="Apple-style-span" >Renters Plan to Continue Renting. Blame Uncertainty</span></a><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >What about you? Are you renting and continuing to rent? </span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-10371847652713051882011-08-23T15:35:00.001-08:002011-08-24T07:04:45.570-08:00The 20 Happiest, Healthiest Cities In America<div><span class="Apple-style-span" >2nd High Ranking in the same week!</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >This time Ogden, UT is ranked one of the happiest, healthiest cities in the U.S.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >Farmington is half-way between Salt Lake City and Ogden, so I get the best of both cities.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >Read all about it here....</span></div><div><span class="Apple-style-span" >
<br /></span></div><a href="http://www.businessinsider.com/best-places-for-a-happy-office-2010-12#9-ogden-utah-13"><span class="Apple-style-span" >The 20 Happiest, Healthiest Cities In America</span></a><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >One of my basic goals is to be happy and healthy, so I'm glad I live somewhere that supports both of those goals!</span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-52539677939235354602011-08-23T11:08:00.002-08:002011-08-23T15:35:49.916-08:00The Australian Subject-To Home PurchaseSo I am sitting at the Pizza Factory with an investor friend and he is explaining to his partner how he bought a house last night...
<br />
<br />A guy calls from Australia and he needs to sell his house in Layton, Utah NOW! It's been on the market for months with no nibbles an his family is about to leave for Australia to join home for his new job.
<br />
<br />The bottom line: The investor is buying the property for $25,000 more than the owner owes on the property, subject to the underlying mortgages staying in place. Included will be some furniture, appliances and a 50" TV!
<br />
<br />The buyer is paying closing costs and the monthly mortgage of $1,250 and it should rent for $1,600 or more!
<br />
<br />Good deal, huh?
<br />
<br />Anonymousnoreply@blogger.com1tag:blogger.com,1999:blog-2883204022993887352.post-21695514903811745802011-08-20T18:43:00.003-08:002011-08-20T19:06:49.292-08:00Financing Gets Lower and Lower<span class="Apple-style-span" >Financing rates for home owners is getting lower and lower. Record low interest rates have made headlines for the last few weeks<a href="http://www.sltrib.com/sltrib/money/52411545-79/mortgage-rates-loan-percent.html.csp">. The Salt Lake Tribune announced that record low interest rates are fueling re-financing.</a> </span><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >That's all well and good for home owners, but what about investment property owners? I'll write some blogs about two situations:</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >1. A new real estate investor who has two properties purchased on contract who has great credit, W-2 income, but put little money down and has an income level that does not support rental properties without the income from rents. He is trying to get financing for the 3rd time, after being rejected twice.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >2. A Real Estate Investor who has held properties for at least 4 years and up to 6 years, has very high credit scores, very high W-2 income, and a lot of cash in the bank. His challenge? He has 11 properties in his name and most have high LTV's. </span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" ><b><u>The New Investor</u></b></span></div><div><span class="Apple-style-span" >He has applied at a credit union that said "yes" to the pre-application, and then underwriting turned down the file. He then applied with a portfolio lender that doesn't follow federal guidelines. They said "yes" for two months, and then once again the underwriters said "no." </span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >He is now working with a mortgage bank that has local preliminary underwriting. They have a loan officer that is prepping the file in accordance with the structure of the contract sale and the requirements of the lender. We will make adjustments to the structure of the contract sale to conform with the lending requirements.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" ><b>The Seasoned Investor with 11 Loans</b></span></div><div><span class="Apple-style-span" >The 11 loans might kill any kind of refinancing, but we are going to try. He got one loan refinanced with HAMP- a federal loan program. CHASE did that loan and they were outstanding to work with. That one loan will reduced the monthly payment <u>over</u> $400 per month! It makes the property go from break-even to profitable.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >Four other loans were rejected by Citibank under the same program. They were a nightmare to work with and ultimately came up with what we considered were excuses. They were incompetent at best. I would never work with Citibank again if I could avoid it.</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >I'll keep you up to date on both investors. Stay tuned....</span></div><div> </div><div>
<br /></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-3026758933190717902011-08-18T15:37:00.000-08:002011-08-18T15:37:37.847-08:00Farmington, Utah is 12th on CNN’s ‘best places’ list | The Salt Lake Tribune<div>Do you love where you live? I do!</div><div>
<br /></div><div>Now CNN is telling the world that I live in one of the "best places" to live in the U.S.</div><div>
<br /></div><div>Seriously, read it for yourself!</div><div>
<br /></div><div>CNN</div><div>
<br /></div><div><a href="http://money.cnn.com/magazines/moneymag/bplive/2011/snapshots/PL4924740.html">http://money.cnn.com/magazines/moneymag/bplive/2011/snapshots/PL4924740.html</a></div><div>
<br /></div><div>Salt Lake Tribune (see the other Utah Cities that made the top 100)</div><div>
<br /></div><a href="http://www.sltrib.com/sltrib/money/52411354-79/farmington-lake-salt-town.html.csp">Farmington, Utah is 12th on CNN’s ‘best places’ list | The Salt Lake Tribune</a><div>
<br /></div><div>
<br /></div><div>We also used to live in Solon, Ohio. It's the only place we liked as well as Farmington! It's ranked #3 and we still have great friends there.</div><div>
<br /></div><div><a href="http://money.cnn.com/magazines/moneymag/bplive/2011/snapshots/PL3972928.html">http://money.cnn.com/magazines/moneymag/bplive/2011/snapshots/PL3972928.html</a></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-88467971351554032342011-08-16T20:00:00.001-08:002011-08-16T20:02:54.288-08:00Low Home Ownership = Good Rental Market???<div><span class="Apple-style-span" >So if people don't own a house, does that mean rentals will be in more demand?</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >Probably....</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >...unless there is a basic over-supply of houses</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >...unless children move in with their parents</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >...unless parents move in with their children</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >... unless young adults stop getting married</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >So read this article about home ownership...</span></div><div><span class="Apple-style-span" >
<br /></span></div><a href="http://www.sltrib.com/sltrib/money/52290078-79/percent-homes-rate-ownership.html.csp"><span class="Apple-style-span" >U.S. home ownership falls to lowest since 1998 | The Salt Lake Tribune</span></a><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >... and then think about why NOW is a good time to buy real estate:</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >.... housing prices are LOW</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >.... interest rates are LOW</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >.... pent-up demand is HIGH</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >.... rent vs. price is HIGH</span></div><div><span class="Apple-style-span" >
<br /></span></div><div><span class="Apple-style-span" >So why are you waiting to invest? </span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-13170921157796417222011-08-04T09:41:00.009-08:002011-08-04T10:24:37.092-08:00Private Mortgage- Money at High Interest Rates, Secured by Real Estate<span class="Apple-style-span" >Private mortgages are as old as real estate itself. People borrowing money from other people and then secure their loan using real estate as collateral.</span><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Banks became popular and the lender of choice for most Americans, especially when the U.S. government starting promoting home ownership in the 1950's with the introduction of the 30-year mortgage.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><u><b><span class="Apple-style-span" >Most Banks Sell Their Notes to Private Investors</span></b></u></div><div><span class="Apple-style-span" >Most banks sell their mortgages soon after they originate the loan. Until recently, most were sold to private investors, either directly or through REIT's and/or mortgage backed securities. These were pools of mortgages, all combined and many times jointly owned by multiple investors.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The quasi-governmental mortgage companies FannieMae and FreddieMac now buy 95% or more of the bank loans.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" ><b><u>Where Did the Private Money Go?</u></b></span></div><div><span class="Apple-style-span" >Private money is still investing in first-position mortgages. The difference is the money is now backed directly by individual properties.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" ><b><u>Want to learn more?</u></b></span></div><div><span class="Apple-style-span" ><a href="https://cleardaycap.egnyte.com/h-s/20110804/1922ce2e004e4506">Click Here</a> to for a FREE copy of the <b>Private Mortgage Report</b>. It's easy to read and will answer a lot of questions, including:</span></div><div><ul><li><span class="Apple-style-span" ><i>Increasing security</i> of your loan</span></li><li><span class="Apple-style-span" >Why Private Mortgages are <i>a h<b><u>edge against taxes</u></b></i></span></li><li><span class="Apple-style-span" ><i><u>Long Term Income</u> </i>through Private Mortgages</span></li><li><span class="Apple-style-span" >Using<i> <b>Balloon Payments</b></i><b> </b>to <u>shorten the length of the loan</u></span></li><li><span class="Apple-style-span" >Use Private Mortgages for <i><b>Estate Planning</b></i></span></li><li><span class="Apple-style-span" >How to <i>Document Your Loan </i><b>for maximum security </b></span></li></ul></div><div><span class="Apple-style-span" style="font-family: 'trebuchet ms'; ">Want to learn even more?!? The CALL ME! I'd love to talk with you.</span></div><div><span class="Apple-style-span" style="font-family: 'trebuchet ms'; "><br /></span></div><div><span class="Apple-style-span" style="font-family: 'trebuchet ms'; ">David Safeer 801.510.3566</span></div><div><span class="Apple-style-span" style="font-family: 'trebuchet ms'; "><br /></span></div><div><span class="Apple-style-span" style="font-family: 'trebuchet ms'; "><br /></span></div><div><br /><div><br /></div><div><br /></div></div>Anonymousnoreply@blogger.com3tag:blogger.com,1999:blog-2883204022993887352.post-46401599581737914642011-07-29T09:45:00.002-08:002011-07-29T09:48:44.229-08:00Our Local Hero Wins for Disabled Senior Citizens<div><span class="Apple-style-span" >My friend and associate, Anthony Marler, won justice without having to go to court.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Do you remember <a href="http://cleardaycap.blogspot.com/2011/07/far-west-city-hates-senior-citizens.html">my first blog post about this</a>? 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. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Did the city council listen? No-o-o-o-o-o-o!</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >So, Anthony sued in federal court. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >It wasn't much of a fight.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The city capitulated.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Quickly.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Without a fight.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://www.standard.net/stories/2011/07/21/farr-west-council-permits-assisted-living-facility"><span class="Apple-style-span" >Farr West council permits assisted-living facility - Standard-Examiner</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Now the only question is: How much will it cost the citizens for Farr West to pay for the stupidity of their elected officials?</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span"><br /></span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-29507682232731097502011-07-23T18:26:00.001-08:002011-07-23T18:28:15.162-08:00Beware the Homeowners Association<div><span class="Apple-style-span" >Did you know that a home owners association can foreclose if you don't pay dues?</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >They can regulate your lawn? Your garbage? </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >They can have a "special assessment" that MUST be paid, regardless of how much it is?</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Read this, it's a real eye-opener...</span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://www.sltrib.com/sltrib/money/52149989-79/association-associations-homeowners-homeowner.html.csp"><span class="Apple-style-span" >Neighbor vs. neighbor as homeowner fights get ugly | The Salt Lake Tribune</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Have you ever had a run-in with an association?</span></div>Anonymousnoreply@blogger.com2tag:blogger.com,1999:blog-2883204022993887352.post-61495657607266978762011-07-23T13:31:00.006-08:002011-07-28T08:23:42.989-08:00Transaction #3 of 52 in 2011: Deep Discount for REO 4-Plex<span class="Apple-style-span" >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. </span><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" ><b><u>Why Multi-Family Has Been Hit Harder than Single-Family in Utah</u></b></span></div><div><span class="Apple-style-span" >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. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Demand is down for two reasons: </span></div><div><ol><li><span class="Apple-style-span" style="font-family: 'trebuchet ms'; ">People feel that real estate is not a good investment right now- even when it is on sale.</span></li><li><span class="Apple-style-span" style="font-family: 'trebuchet ms'; ">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.</span></li></ol><div><span class="Apple-style-span" ><b><u>We Make a Bid We Couldn't Refuse</u></b></span></div></div><div><span class="Apple-style-span" >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.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The bank accepted the offer. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The property will cash flow for years to come.</span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-29105382639466241902011-07-15T10:11:00.001-08:002011-07-15T10:12:04.284-08:00Far West City Hates Senior Citizens?<div>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. </div><div><br /></div><div>Read the full article:</div><div><br /></div><a href="http://m.standard.net/topics/opinion/2011/07/14/our-view-nimby-anger">OUR VIEW: NIMBY anger - Standard-Examiner</a><div><br /></div><div>He should be allowed to build. What's your opinion?</div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-44082097041410101882011-07-13T18:01:00.004-08:002011-07-13T18:14:28.468-08:00Transaction #19 of 52 in 2011: We Borrow Private Funds<span class="Apple-style-span" >Private financing creates wins: </span><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >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.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >2. The private lender wins from much higher interest rates than banks are offering and the securing of a first position trust dead.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><b><u><span class="Apple-style-span" >We Borrow $45,000 Against a $90,000 House</span></u></b></div><div><span class="Apple-style-span" >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. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >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!</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Does anyone you know what to lend money secured by rental real estate? Let me know!</span></div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-4440943853476274412011-07-07T22:46:00.001-08:002011-07-07T22:48:27.419-08:00Bank of America vs. Citizens of Utah: Continued<div><span class="Apple-style-span" >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.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Learn more from our friends at the Salt Lake Tribune.</span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://www.sltrib.com/sltrib/money/52138891-79/bank-utah-america-law.html.csp"><span class="Apple-style-span" >Utah law firm sues to halt Bank of America foreclosures | The Salt Lake Tribune</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >So, who has a mortgage with Bank of America?</span></div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com1tag:blogger.com,1999:blog-2883204022993887352.post-46997060155734783232011-07-06T09:40:00.001-08:002011-07-06T09:41:52.517-08:00Is Real Estate Better Off without Government Intervention?<div>We know that loose lending standards creative financial bubble.</div><div><br /></div><div>Now it looks like tight lending standards are preventing a housing recovery.</div><div><br /></div><a href="http://www.bloomberg.com/news/2011-07-06/housing-recovery-hindered-in-u-s-as-government-works-at-cross-purposes.html">U.S. Housing Recovery Stymied by Government - Bloomberg</a><div><br /></div><div>My opionion: Government should do less, not more. Set fewer rules and then police them better.</div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com2tag:blogger.com,1999:blog-2883204022993887352.post-39693729173869358302011-07-05T20:59:00.001-08:002011-07-05T21:02:33.604-08:00Some Good News: Spring Buying Boosts RE Prices in 13 Major Cities<div>The good news continues to come out little by little.</div><div><br /></div><div>News is always looking in the rear view mirror. This is a glimpse into the rear view mirror of the recent past.</div><div><br /></div><div>My opinion about Utah? Utah will lag 12-24 months behind the rest of the country.</div><div><br /></div><div>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.</div><div><br /></div><div>Want more information? Read this article from our friends at the Salt Lake Tribune.</div><div><br /></div><a href="http://www.sltrib.com/sltrib/money/52089853-79/prices-percent-april-index.html.csp">Spring buying boosts home prices in 13 top cities | The Salt Lake Tribune</a><div><br /></div><div>One area that Utah seems to lead the country in trends? Foods! Smoothies, Kentucky Fried Chicken, A&W, Jello.....</div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-15432622490961823402011-07-02T10:20:00.001-08:002011-07-02T10:24:35.857-08:00More Buy & Hold Real Estate Investment Opportunities in Utah<div>Home sales fall, opportunities for buy-and-hold real estate investors increase.</div><div><br /></div><div>Why? </div><div><br /></div><div>1. If people don't buy they need to rent. Buy and Hold investors need renters.</div><div><br /></div><div>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.</div><div><br /></div><div>Read more:</div><div><br /></div><a href="http://www.sltrib.com/sltrib/money/52047284-79/sales-homes-percent-fewer.html.csp">Home sales fall to ‘11 low as first-timers balk | The Salt Lake Tribune</a><div><br /></div><div>Are you convinced yet that NOW is the time to buy and hold?</div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com2tag:blogger.com,1999:blog-2883204022993887352.post-33017452104563704092011-06-30T05:55:00.001-08:002011-06-30T05:55:49.366-08:00Aha! The WSJ Takes Note: Investors Buying and HoldingI've mentioned that eventually the popular press will catch ip to reality: NOW is the time to buy and HOLD real estate. <br /><br />Check out this Wall Street Journal article. The note that there IS competition for properties- a lot from first time buyers who want to buy and hold. <br /><br />Can you find them and mange the properties for them? They need professional management or they'll be selling at distressed prices in about two years!<br /><br />http://blogs.wsj.com/developments/2011/05/26/with-buyers-scarce-investors-rule-housing-market/?mod=wsj_share_facebook<br /><br />Are YOU buying and holding? Where? How? Why?<br />Anonymousnoreply@blogger.com1tag:blogger.com,1999:blog-2883204022993887352.post-74934774277200114142011-06-28T06:00:00.004-08:002011-06-28T06:23:16.434-08:00Transaction #4 of 52 in 2011: Success! Contract Buyers Refinance with the Bank<span class="Apple-style-span" >All too often, people who "rent to own" or "lease option" or "buy with owner financing" never complete the transaction- they never own the house.</span><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >At Clear Day, our goal is for every person who inters into a "creative financing" purchase with us to complete the purchase so they can enjoy the benefits of ownership that they desire. With Clear Day, the buyer has all of the control- it is up to them to complete the purchase, yet at the same time we are willing to do what it takes to help them complete the purchase, if it is reasonable and legal and a win-win solution.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><b><u><span class="Apple-style-span" >A Couple Purchases a House FIVE Years Sooner than Planned!</span></u></b></div><div><span class="Apple-style-span" >So transaction #4 (yes, this is out of order!) revolved around a couple that purchased a house from us in July of 2010. She had mid-500's credit scores and he had NO credit score! They had been through bankruptcy and he never applied for new credit.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The couple and Clear Day met with a credit repair specialist and he gave us the opinion that they were only six months from having the needed credit to get bank financing. They were stunned! They had been told that it took seven years to qualify for a bank loan and here they were looking at year three and qualifying. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >We moved ahead with the sale and they purchased it for about $2,000 more than it later appraised for. The couple immediately started to repair their credit.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Eighth Short Months Later</span></div><div><span class="Apple-style-span" >It did not take six months, it took eight months to get a bank loan. That is still almost 4 1/2 years sooner than they anticipated. The refinancing lowered their interest rate significantly and their monthly payment went down almost $200 per month.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >There was one challenge when they refinanced: Their credit scores were about 20 points to low because their debt was about $500 too high. The credit repair coach / mortgage broker said it would take another 1-2 years to get their credit up if they just made monthly payments. Solution? Clear Day lent them another $500 that they used to pay their credit card. Result: Their credit scores went up and they qualified for the loan.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >They are happy in their new home. They are happy to have a low-interest, fixed-rate 30-year loan. They are happy with Clear Day to make their purchase and refinance happen.</span></div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-63956278472062389292011-06-27T08:48:00.001-08:002011-06-27T08:50:45.667-08:00Foreclosed homes: Fannie Mae and Freddie Mac hold summer clearance sales - latimes.com<div><span class="Apple-style-span" >Good idea, but why include only owner-occupied and not real estate investors? We are helping clear-out inventory 2, 3, or 4 houses a quarter. We are their best clients, but we are treated like their worst clients.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Once again, government genius at work.</span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://www.latimes.com/business/realestate/la-fi-harney-20110626,0,7587312.story"><span class="Apple-style-span" >Foreclosed homes: Fannie Mae and Freddie Mac hold summer clearance sales - latimes.com</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >If you are an investor, how do you feel about being treated like a second-class client?</span></div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-36126041021717069352011-06-25T00:15:00.001-08:002011-06-25T00:16:11.002-08:00With home market in tatters, high-end sector suffers even more | The Salt Lake Tribune<div><span class="Apple-style-span" >The market as a whole is down. The high-end down more than entry-level.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >We have always focused on entry-level housing. There will always be demand for solid 2-4 bedroom houses with 1-2 baths that rent for $800 - 1,200 per month.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >This is what happened to local high-end housing:</span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://www.sltrib.com/sltrib/money/52005587-79/million-market-homes-square.html.csp"><span class="Apple-style-span" >With home market in tatters, high-end sector suffers even more | The Salt Lake Tribune</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >What do you invest in? High-end? Low-end? Somewhere in-between?</span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-20465700091593171362011-06-22T18:44:00.000-08:002011-06-22T18:44:32.863-08:00Post Recession Real Estate Boom Inevitable: Steve Dexter, Real Estate Expert, Pens Article Predicting Better Times Ahead<div>We think there will be a boom in real estate as the economy recovers, so do other investors.</div><div><br /></div><a href="http://www.expertclick.com/NewsReleaseWire/Post_Recession_Real_Estate_Boom_Inevitable_Steve_Dexter_Real_Estate_Expert_Pens_Article_Predicting_Better_Times_Ahead,201136780.aspx">Post Recession Real Estate Boom Inevitable: Steve Dexter, Real Estate Expert, Pens Article Predicting Better Times Ahead</a><div><br /></div><div>What do you think?</div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com6tag:blogger.com,1999:blog-2883204022993887352.post-32386010084857108582011-06-22T15:44:00.006-08:002011-06-28T05:59:21.653-08:00Transaction #16 of 52 in 2011: Investor Refinancing Still Lives!<span class="Apple-style-span">Have you heard that it is impossible for a real estate investor to get a loan on an investment property? It's just an ugly rumor!</span><div><span class="Apple-style-span"><br /></span></div><div><span class="Apple-style-span">One of the strategies that we are using when we sell properties on contract to real estate investors with good credit is that we agree:</span></div><div><ol><li><span class="Apple-style-span">The investor who buys from us on contract will get an equity line of credit from a financial institution to repay Clear Day Capital as much as possible</span></li><li><span class="Apple-style-span">Clear Day Capital will carry a second for the balance of the purchase price</span></li></ol><div><span class="Apple-style-span">Pretty simple, right? Yes!</span></div></div><div><span class="Apple-style-span"><br /></span></div><div><span class="Apple-style-span"><iframe width="560" height="349" src="http://www.youtube.com/embed/vmnjNhQcJHI?rel=0" frameborder="0" allowfullscreen=""></iframe></span></div><div><span class="Apple-style-span"><br /></span></div><div><span class="Apple-style-span">Transaction #16 was the refinance of a duplex we sold on contract. The refinance went smoothly. It was with Golden West Credit Union and was fairly quick. The biggest challenge was the appraisal was much lower than hoped. Duplexes are on sale and it really dragged the price down.</span></div><div><span class="Apple-style-span"><br /></span></div><div><span class="Apple-style-span">The good news? We found two banks that are offering up to 75% investor loans- fixed rate and 30 year amortization. You'll have to keep reading to learn more about them.</span></div>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-16307087331371791952011-06-20T15:47:00.001-08:002011-06-20T15:48:57.619-08:00Buy vs. rent: These days, buying wins - May. 13, 2011<div><span class="Apple-style-span" >We don't look at winning vs. losing when we think about home ownership. We think that everyone can win by dividing the seven benefits of home ownership. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >If you want to see a traditional view on winners vs. losers in the housing market, take a look at this story from CNN Money: </span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://money.cnn.com/2011/05/13/real_estate/rent_not_buy/index.htm?iid=EL"><span class="Apple-style-span" >Buy vs. rent: These days, buying wins - May. 13, 2011</span></a><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Either way- buy or rent, contact me if you ever want to learn more about sharing the benefits of real estate.</span></div>Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-38311382325507197782011-06-17T12:09:00.001-08:002011-06-17T12:09:54.865-08:00Bryan Ellis Real Estate Letter - SEC May File Civil Fraud Charges Against Credit Rating Agencies<div><span class="Apple-style-span" >It's about time. The major companies that contributed to the HUGE miss-steps by note providing the services they were contracted for, and worse- being complicit in misleading investors, the government, and the public should be held accountable.</span></div><div><span class="Apple-style-span" ><br /></span></div><a href="http://realestate.bryanellis.com/4658/sec-may-file-civil-fraud-charges-against-credit-rating-agencies/"><span class="Apple-style-span" >Bryan Ellis Real Estate Letter - SEC May File Civil Fraud Charges Against Credit Rating Agencies</span></a>Clear Day Capitalhttp://www.blogger.com/profile/05991065321645069271noreply@blogger.com0tag:blogger.com,1999:blog-2883204022993887352.post-53621873464985172942011-06-09T15:17:00.003-08:002011-06-09T15:51:53.262-08:00Transaction #18 of 52 in 2011: We Sell a Property and Take a Long-Term Interest<span class="Apple-style-span" >Clear Day never wants to sell real estate. Our goal is to have long-term real estate holdings that will bring us income for the next 30 years or more. </span><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Once in a while, we decide that the best opportunity is to sell properties- but we STILL want to have a long-term interest even after we sell. Here is the scenario:</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >We foreclosed on a property that had one (1) lot with two (2) houses. The first house was a 2 bedroom / 1 bath with a 1-car garage. The second house was a 1 bedroom / 1 bath with off-street parking. Based on rents, the house was worth about $120,000. The problem? Banks won't lend on rent-based appraisals anymore. They will only lend on sold comparable properties. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >The real estate investor that had repaired the property had tried to sell it for $120,000 unsuccessfully. The problem? People wanted the property, but appraisals were coming in much lower than justified by rents OR the square footage of the two properties combined. Why? Because the appraisers only county the larger property as "regular" square foot value. The second, smaller house was only counted as an "extra" building- like a shed!</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Why was it a shed? Because those are the rules! No further explanation given by the appraiser.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >So when we were approached by an investor who liked the property because of the great cash flow, we sold it to him at a slight discount to full price. He received what he wanted- growth, profits, income, tax benefits, and amortization. </span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >We sold it at a discount because he was willing to lease the property back to us and share the cash flow, growth, and amortization. We received what we wanted: a long-term position in the property that gives us ongoing cash-flow from rents and property management as well as long-term profits when the house sells at a much higher price than we can sell it right now.</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Here are the approximate numbers:</span></div><div><span class="Apple-style-span" > Income-based property value : $120,000</span></div><div><span class="Apple-style-span" > Sale price to investor : $110,000</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" > Monthly rent : $ 1,300</span></div><div><span class="Apple-style-span" > Monthly property management : $ 130</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" > Quarterly Additional Cash Flow : $ 200</span></div><div><span class="Apple-style-span" ><br /></span></div><div><span class="Apple-style-span" >Right now we are lining up more properties for more investors to work with us and share growth, equity, and cash flow. Interested? Let me know.</span></div>Anonymousnoreply@blogger.com0