Hello Fellow Real Estate Investors!
What a hay ride! I'm excited about this current market. Now is the time fortunes are made. I just read the monthly MLS Houston Market. It's rather discouraging on the surface. But, if one reads it with the advantage of hindsight and knowledge of market cycles, it's like finding a treasure chest map.
The average and the median price of single family homes fell. Foreclosure sales are up while the median price of foreclosures being sold fell 15%. During the same period the median price of non-foreclosure homes sold only dropped 1.2%.
But let me not bore you with these stats. Let me put some of them together for you.
I just received an e-mail from one of my lenders. They're now going to 660 Fico on 95% financing. Soon 20% down will be the norm under a 660 credit score. Much of the buying market is being squeezed out of the American Dream.
So what's the good news in all of this? People will still need a place to stay. The Houston rental market is exploding. Plus, there's tons of cash flowing properties in on the market. The real hidden gems are in multi families.
Check back soon, I'm going to continue this post with specific properties and reasons why they are good transactions. For instance, you can own a whole city block in Galveston (needing IKE repairs - currently cash flowing), for less than $300,000. I'm going to make my private notes available to a select few individuals. Here's a sample of one the e-mails that I send out. You're going to be more than supprised by some of the responses.
To: Scott Young Subject: 1002 Commodore I have an buyer that might be interested in your listing. Do you feel the seller might entertain an offer requiring a 35% discount in price?
Dick Green Triad Mortgage and Realty