Chula Vista Flip… Going once, Going twice, Sold the cat pee house…

Chula Vista Flip… Going once, Going twice, Sold the cat pee house…

Ahhhh finally we sold our Chula Vista 2 bedroom 1 bath house.

Besides

The cats in Chula Vista didn’t use the bathroom like this good kitty did

  • trying to get rid of the strongest nastiest cat urine smell I have ever encountered (see video below for the smell O’ vision cam)

  • the 30′ septic pit we discovered (which was supposed to be a septic tank – actual picture)
  • paying $13,000 in city fees to hook up the septic (pit) to the city.
    • An appraisal that came in $20,000 to low.
Besides those little things you couldn’t have asked for a smoother, easier, less stressful transaction.
I must have been on a bathroom break (training the cat to pose for the picture above) while I was watching those get rich quick late night Real Estate riches infomercial (those nights I wake up thinking about sink holes, low appraisals, and dealing with city governments) hosted by those two midget dudes.

Does one steer while the other brakes and accelerates?

I just don’t recall seeing my little buddies mentioning those damned septic pits that cost 15 gees to take care of.
In addition they didn’t include the super duper negotiating navigating techniques it takes to keep a deal together with these challenges.

That must come with the more expensive course sold by Tom Vu

(more…)

Making Money in Housing – CNBC.com

Making Money in Housing – CNBC.com.

Following is a 7 minute video that was aired the 24th of August on CNBC with Hessam Nadji of Marcus & Millichap Advisory Services, and Alex Goldfarb of Sandler O’Neaill & Partners.

The subject of the interview is how to make money in the housing sector right now

Here are some key points.

  • Apartments leading recovery by demand, followed by industrial properties
  • The Commercial Real Estate sector usually trails the economy by 6 months and Multi-Family is usually the first to recover (which is starting to happen) due to there short terms leases.  The meaning is that since the apartment leases are usually a year or less they can be adjusted upward as the market or that segment improves.
  • Starting to see multi-family REITS doing better. Raising there rents on average of 5% over the last 12 months.
  • Home ownership is going down which is good for rentals.
  • Some people are realizing that owning homes is very expensive and only having to write one check for their rent is attractive.

They also talked briefly about the fact that institutional investors are looking at core trophy properties and locations.  They are much more conservative and are betting that once a recovery happens that there will be above average rent growth due to the supply constrained markets they are in and the lack of multi-family construction that has been done.

I know many of you probably wonder why a company (institutional/REIT) would buy buildings at 5 CAP rates and it is a good question. What you need to consider though is they are usually more conservative and they are comparing these investments to T Bills which are giving almost no returns.

Private investors are looking at non core properties B & C. This is what most of us will buy.

Personally I am thinking that it is time to start considering Apartments again (remember I am more of an apartment investor than houses but it is the houses where we are making the returns right now because there are not many attractive apartment deals we are finding).

I don’t believe in just jumping right (back) in. I like to wait until there is some type of pricing trend because right now there is not enough sales in San Diego to be able to accurately price apartment buildings.

It’s also good to watch other people work out the kinks and really study the market/niche you are going into. Knowing the market (your niche) better than your competition is how you create opportunities for yourself. For example if you know rents can be 20% higher than your competition because you know that segment better you have the advantage of making better choices.

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30 Day property buying challenge

Okay originally I was planning on buying 2 properties in May and recorded this video towards the end of April. In these series of videos, I walk you how and what I plan to do to accomplish these buys. I will keep you posted with my progress.

Intro Video 1 – Buying 2 Flips in 30 Days

Video 2 – Relations with Realtors

US Real Estate Home prices adjusted for inflation plotted as a roller coaster

US Real Estate Home prices adjusted for inflation plotted as a roller coaster

I was using stumbleupon which is a really cool site which as they claim “Discover the Best of the Web in less time” is true.

Here is how the site describes itself

StumbleUpon helps you discover and share great websites. As you click Stumble!, we deliver high-quality pages matched to your personal preferences. These pages have been explicitly recommended by your friends or one of 8 million+ other websurfers with interests similar to you. Rating these sites you like () automatically shares them with like-minded people – and helps you discover great sites your friends recommend.

Anyways it is a great tool to search the web for great content and is where I ran across this interesting video that plots the housing market since 1890 from a roller-coasters perspective. Don’t miss the end.

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

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