Cape Coral foreclosures at the lowest now

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In the field, we all agree, it’s a seller’s market now. Several major cities in the country show a solid level of activity that increase Real Estate prices slowly but steadily. And Cape Coral is no exception. I see we are headed to a much more normal market now, and the fact that we just got below the 200 foreclosures mark for Lee County is a good sign.

As I often say to my clients over the phone or email, we had a peak of 1,085 foreclosure at any given day in December 2010. Today, we had 196 foreclosures. And that number is decreasing on a daily basis. So we are inexorably entering a much more normal market.

Congratulations to all buyers who bought a property ion Cape Coral or around last year or even in 2010. They officially bought at bottom. And I predict that if they hold for another 3 to 5 years, they will build some great equity in their properties.

And for those who were on the fence, waiting for the best deal to appear to them, that boat has sailed away. We are in a seller’s market and purchase prices at asking prices or higher are not uncommon. I even see multiple offers on a majority of the deal I come across.

Knowing that Lee County in general and Cape Coral in particular have the lowest single family priced in the country, I have a lots of demand for properties under $100,000. But those buyers have a hard time to get in now, hardly finding anything just decent.

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Comments (0) Apr 21 2012

Buyer’s market or seller’s market in Cape Coral Real estate

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The number of foreclosure has hit the its lowest level. Today, when I checked those bank owned properties for Cape Coral, there were only 214 units. For your information, there were 1085 in December 2010. And that’s most likely why we see more interest in the non distressed market, often with multiple offers.

All is all, there are 1774 properties for sale in Cape Coral and we have experienced 451 sales in the last 30 days. That’s mean we have about 3 months inventory out there, making it a seller’s market now. And if you add the fact that multiple offers occur more often now, buyers have a harder time to have their dream home under contract. That is exactly what my french speaking buyers from France experienced. They use to make a search online for ” maisons a vendre a Cape Coral “, find me there, give me a call to begin the search and get very frustrated after looking around for a few weeks, seeing nothing good is available anymore.

Cape Coral luxury foreclosure

Cape Coral luxury foreclosure

The thing is, today, if you plan to buy a property here, be prepared. Get your financing handy, bank letter, pre-approval. And once you see a property you like, make that offers good enough to have the seller put his signature on your contract. Unfortunately, if you don’t act quickly, chances are the property will be pending before you realize it. Prices are still the lowest in the nation here, especially if you compare the amenities that Cape Coral is offering with cities in the middle of Tennessee for example. Not only the weather is more attractive, let’s face it, but also the proximity of the water, with the gulf of Mexico and the beaches.

So, in my opinion, 2012 shows the switch from a buyer’s market where sellers were waiting for a single offer to show how low was the price offered to a seller’s market where the buyers are competing so ferociously to have a chance to buy that property at often a price above the asking price.

If you are entering the market for selling or buying a property in the Cape, give me a call or send me an email. There is still time to find your dream house at an excellent price, but don’t delay.

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Comments (0) Mar 25 2012

Cape Coral is the highest rising home prices

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The very serious Real Estate section of Yahoo has brought something very interesting a couple of months ago, and a very good news for people who bought a home in Cape Coral in the past 12 months. And not only in the Cape Coral real estate but also all around, like Lehigh Acres or Fort Myers. The good news is that Cape Coral is the highest rising home prices in the U.S.!

Price differences show an increase of 12.1% for the last 12 months far ahead from Bridgeport-Stamford in Connecticut, but with still a median price of$100,000 for a typical 3 bedrooms 2 bathrooms house. But the number of foreclosure is still important with 1 foreclosure for every 92 homes. That alone will probably decrease the price rise into the single digit. It will remain steady in my opinion though because the median price is still the lowest nationwide, but steady because more and more people see a perfect place to retire when they think about the sunshine state.

Cape Coral italian style foreclosure for sale

Cape Coral italian style foreclosure for sale

The city of Cape Coral show only a 4 months’ supply of properties, which has to rise prices and demand. Lehigh Acres has only a 1 month’s supply and the rumor about how secure is the city is decreasing as well. People begin to realize that crimes in Lehigh Acres were made by A/C, pool and water system professionals in search of free parts by stealing A/C, pool equipment and water system equipment from abandoned foreclosed houses there. Those foreclosure having disappearing rapidly, those parts are no longer available and crimes rate has melted like snow under the sun.

So, this is an excellent news for our community and I really hope you bought within the last 12 months. If not, and if you still want to take the running fast train to real estate wealth, feel free to give me a call at 239-240-7346 or send me an email at info@1capecoral.com.

Here is the link to that Yahoo Real Estate article.

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Comments (0) Mar 13 2012

Want to buy a Cape Coral home in 2012? 5 Things To Do NOW

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If 2012 is your year for home hunting and purchase, here is a list of 5 things you should consider to do NOW before anything else.

  1. 1. Check your credit. And I’m serious about that. Make a copy of your credit report online and review anything that can show negative transaction. Call the credit bureau in charge and fix your problem. There is nothing worse than finding the perfect home at the perfect price, getting ready with the down payment and everything and learn that you have been denied because of your bad credit. So, if there is any problem there, fix it now.

  1. 2. Do your homework. Do you research online about 1 month before buying. Check the neighborhood, the market value, compare the foreclosure with the regular market, learn about short sale and see if it’s for you. Shop around for the best terms mortgage out there, call 4 or 5 mortgage broker and compare what they need and they fees/expenses. Ask them what documents you need to be qualified. Ask to be approved for a loan before even getting out to see properties. It’s frustrating to fall in love with a home that is price at $10,000 more than you can afford. Everything else will be disappointing at that point!

  1. 3. Fluff up your down payment. Make sure to have a full understanding of the money you have to bring at closing, all fees including. Again, it’s frustrating to be short of a couple of thousands dollars in front of the home of your dreams. Get your finance in place and ready to go.

  1. 4. Grow your cash. You’re gonna to move. So double check all that stuff that you didn’t use for the last 12 months or more. You won’t probably never use it ever. So make a big yard sale of that stuff, sell them on ebay or on craigslist and keep the money for your down payment or for some work you’ll need to do in your new home, like painting or new moldings.

  1. 5. Be prepared. If you want to purchase a great deal, like a foreclosure, be prepared. I wrote a guideline about being prepared to make an offer on a foreclosure: Cape Coral Foreclosure . I have come across a lot of excited people like kids in front of a toy getting frustrated with those above asking price multiple offers. So being psychologically prepared will help you to handle your purchase.


Once you have everything ready and you have prepared yourself for your 2012 home purchase, feel free to give me a call at 239-240-7346 and I’ll prepare some visits and will help you during your transaction to make it as smooth as possible.

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Comments (0) Dec 17 2011

Are you looking to buy a property in Cape Coral, Florida?

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So, you have been looking to buy a home in Cape Coral for over 6 months now. There is something important for you to know.  Stop looking to buy a home right now.  You are wasting your time and energy. Cape Coral properties prices have been increasing for the last 6 months in a row. So, if you’re still looking, it’s not for finding the best deal of the century, it’s already too late. It has to be because you’re searching for the best floor plan or curb appeal possible, but then, the inventory is so wide, if you didn’t find it already, it’s because it doesn’t exist.

Not to mention all the time that is being wasted by professional lending and real estate brokers. They are not your taxi driver even if it’s my second job. They are not the ones to fix your poor credit scores.  They are not the ones to hold your hand every step of the way even if I do it on a daily basis.  They are there to help you not be taken advantage of by someone who is not committed to the home buying process.

Buying a home is a process and it doesn’t take over 6 months to complete.  A Realtor can help you with the home buying process, however, you the buyer must take action to make it become a reality.  Seeing every home that comes on the market for a year is insane!  It’s not that big of a deal to find the house you will come to know as home.  If you see a house you like and it’s within your means, then buy it.  Otherwise, go home and leave everyone alone.

You can read more at 1capecoral.com or in my blog. The time to buy a home was in the last 6 month, with a rock bottom price reached last December 2010/January 2011  or today…not in 6 months. Quit trying to out think the other guy or the sellers. Find what you like and buy it.  If there isn’t anything out there that you like then you probably are not going to find it.

Go home.  Stop wasting your time. Watch some football or NASCAR or a movie anything but get out of the home buying process as you are not a buyer.  You are a looker and you are frustrating people around you that can actually and willingly help you.

The time is ripe to buy a home today.  Interest rates are low.  Prices are still low. In most markets inventory is high.  Sellers want to negotiate on their homes. It’s easy and time for action. And if you think that a home priced below a car’s price is too high, you’ll never buy anything. So, do something else.

If you are angry right now…good.  Here is a way which may help.  Revisit why you wanted to buy a home in the first place and re-motivate or inspire yourself.  If that doesn’t work then forget about it.  You will never achieve your American Dream without concise methodical action on your part.  Now go out there and become a buyer and call me to seriously get started!

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Comments (0) Oct 25 2011

Cape Coral: second best place to retire

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I read an article published by cnnmoney about the 10 best places to retire. Cape Coral was voted #2!. So that’s good news after all the effort put into making Cape Coral a better place to live.

The single most effective move in making your retirement stash go further is, well, a move. “There’s nothing more powerful than relocating from a high-cost-of-living area to a low-cost one,” says Baltimore financial planner Tim Maurer.

If “low cost of living” conjures up visions of some bleak backwater, think again. MONEY combed its Best Places to Live database to find affordable cities and towns that offer lots to do, both inside and out. Places that are safe, with violent-crime rates below the national average. Where there’s good medical care close at hand. And where at least 30% of the population is over the age of 50, so you’ll have no shortage of golf or bridge partners.

The ten places you’ll read about in the story that follows offer all that — plus they’re exceptionally kind to your wallet. Their cost-of-living indexes range from 87 to 97, meaning that as little as 87 cents buys residents what a dollar would buy the average American. Homes are affordable, with median prices below the $173,100 national median (some well below). And tax rates are reasonable, with either no state income tax or significant exemptions for retirees. Could Cape Coral be your new home?

You can read the full story by following this link

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Comments (2) Sep 22 2011

Future convention center in Cape Coral

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If it is up to a small group of citizens, a convention center in Cape Coral could become a reality in the not so distant future.

I read an article online the other day and it was said that Councilman Chris Chulakes-Leetz spoke of working with a group of citizens to present a proposal to construct a convention center in Cape Coral. Last week the group unveiled its plan to a group of citizens and business leaders at City Hall.

The brainchild of Cape Coral resident, Martin Brady, the group announced the idea of the Cape Coral housing a 16,000 to 18,000 convention center and entertainment complex in the city, “Anything you can do outdoors and anything that can be done outdoors can be done at the complex we are imagining,” said Chulakes-Leetz.

The group says the area of land in North Cape Coral known as Academic Village would be the perfect spot for such a venue. Academic Village is located on 170 acres of city owned property at the corner of Del Prado Boulevard and Kismet Parkway. The area was in the spotlight in 2010 as the proposed location for the failed Swim Center.

Brady, a retired firefighter from Philadelphia, moved to Cape Coral in 2005 and began working for the city’s Parks and Recreation Department. During this time he realized the city was missing something in his opinion, “As I drove around I realized this city has a lot of parks. Everything here was planned around children and young adults. There was nothing for adults.”

It wasn’t until Brady and a few friends attended a boat show at the Harborside Convention Center in Fort Myers that he realized what Cape Coral truly needed, “We went to the boat show and had to park a mile and a half away from the venue and had to be shuttled in, making numerous stops on the way. Another thing I noticed was they basically closed all the streets in downtown Fort Myers for the show and upsetting many local business owners doing so. I thought North Cape Coral has a vast amount of land and would be a perfect location to host these types of events and conventions.”

During this same time, the city began discussions with a private company regarding the idea of building a Swim Center in North Cape Coral. Brady said he decided to wait and see what happened with the swim center before moving ahead with presenting his idea of a convention center. Once the swim center was defeated, Brady began putting together his plan for the convention center.

Brady says he has spent the last 1.5 years working on the plan and feels the convention center would be a major economic boom to the city, “Do you know how many industries and companies have events and conventions throughout the year? The American Medical Association, the Boy Scouts, big trucking companies, any type of industry that is out there, anybody that sells anything, where do they go? They go to conventions.”

Brady also stated that when people attend conventions, it is not just the conventions they attend, but many of the surrounding businesses as well. Brady says because of this it would cause the need for such businesses as hotels, restaurants and other service oriented businesses.

Something Cape Coral resident Mike Kumbier, who has worked the last 27 years in the RV industry as a manufacturer’s representative completely agrees with, “A convention center like this would add a lot to the Cape. It would bring industry back into the Cape and put people to work. Really, that is what we need to see happen.”

According to a recent study conducted by the Convention Industry Council, the meetings industry was responsible for $263 billion in spending in 2009. The study also related 1.7 million jobs in the United States to the meetings industry.

Brady along with Chulakes-Leetz says the center will not only house conventions and other events, but it could also serve as an emergency evacuation center during times of disaster. Brady says school gyms are not made for housing people after a storm and the convention center could store ready to eat meals, have a 3,000 gallon water tanker available, air conditioning, first aid, cots, and everything else needed for creating a well equipped evacuation center. Brady also says by creating the evacuation center grants from state and federal government agencies could help offset the cost of construction on the convention center.

The city currently owns the land the proposed convention center would be built. Chulakes-Leetz says in order to finance the construction of the center it would have to be financed by bonds and hopefully federal and state funding, “This would be the citizens investing in their own city.”

Chulakes-Leetz said the city would retain ownership of both the center and the land and would outsource the running of the center to private companies. The revenue generated from events, souvenir and food sales would go back to paying the bonds off and once those are paid money generated from the center would become a revenue stream for the city.

In order to make the convention center a reality, Chulakes-Leetz says it would have to be something the citizens of Cape Coral actually want. Chulakes-Leetz said he would like to see a referendum on the initiative before 2013. The councilman says he has been in touch with the Lee County Elections office and said it would be possible to do a mail referendum to get a vote on the initiative.

Those in attendance seemed cautiously optimistic about the reality of Cape Coral getting its own convention center, “I think it is a great start. I would love to see something like a convention center come to the city of Cape Coral. Who wouldn’t? There is a long road to go, though,” said Cape Coral Construction Industry Association Executive Director Heather Mazurkiewicz.

Brady says the next steps will be to put together the framework and further define the overall vision of the project, “This is the shot in the arm this city needs. This will make Cape Coral a destination for thousands each year.”

The group says it plans to meet again at the end of October and the meeting will be open to the general public.

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Comments (0) Aug 30 2011

Cape Coral low ball offers

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Low-ball offers from Cape Coral homebuyers seems to be the norm these days. But as economic and stock market woes continue, some buyers are using it as an opportunity to submit even lower offers.

“Buyers are going to use every point of leverage they can to get a lower price,” Glenn Kelman, chief executive of Redfin Corp., told The Wall Street Journal.

For example, homebuyer Anne Gordons says she reduced bids on two homes he submitted in Cape Coral, Fl., because of the stock markets plunge. She and her husband had originally offered $460,000 for a home listed at $525,000, and this week submitted a new offer of $425,000.

“Unless we get a steal, we’re not going to buy any house,” Gordons says.

Analysts say that the Federal Reserve’s vow to keep short-term interest rates near zero until 2013 has reduced the urgency of buyers. It gives buyers “comfort that they are not missing out on low interest rates if they wait,” says John Burns, a home-building consultant in Irvine, Calif. “That has tilted even more power toward homebuyers.”

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Comments (0) Aug 23 2011

5 reasons why you home doesn’t sell

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If there has been no action on your residence which is for sale, chances are it is as a result of 1 or all of the factors we have listed below. If the Realtor you might have hired has not gone more than these guidelines, possibly it is time to reevaluate why your house is just not selling.

Overpriced!

This really is the most common reason for a home not selling. Unrealistic property owner objectives can cause this even with the best of Agents guidance. A Seller that will not listen to their Agent, are losing both their times if your residence is valued greater than the competition. The 1 thing you Do not need to do is overprice your residence!

The Condition

When there are numerous houses within the marketplace for sale, buyers will keep searching until they discover that ideal move-in prepared property. If your house will be the identical cost as the competition, but they’ve new kitchen/baths/carpet or hardwood floors, they will get the action. If your price may be the very same, but the competition has much more bedrooms, a lot more baths, or perhaps a finished basement, you might be giving the buyers the benefit of seeing yours and then acquiring the 1 that they are going to get more for the same money. You want to make the biggest impact on any buyer viewing your house.

Showing Times

When you have limited times when a home buyer can view your property, you are performing a dis-service to your self, the buyer and the Real estate professional who desires to obtain your house sold. We know it can be tough to show at a moments notice, but you never ever know when the proper buyer will appear. Should you can’t show it as a result of work schedules, you could wish to supply your Realtor using a important to ensure that no appointment will probably be missed. Other Agents will have a tendency to show houses when you can find not too many restrictions and they know they are able to acquire access to easy.

Net, Net, Net

That is appropriate, if your Realtor will not market your property on the net, you could not be obtaining the very best marketing and advertising value. Though all listings should be on your local MLS, your Realtor need to also have their very own web sites and other ways to promote your property online. This really is the top form of advertising your house for sale.

Location Is Nonetheless Key

It is still accurate, as far as Real Estate is concerned ~ the top locations, best schools, and curb appeal with the neighborhood is still crucial. Even so, not each and every property could be Mid-Block location, or handy to all things, and have the very best of almost everything. It is possible to make your home stand out from the crowd by enhancing your own curb appeal, generating improvements towards the interior and by pricing it lower then the rivals. We recently had a listing exactly where the backyard faced a large commercial developing. By pricing it correct and producing some small interior upgrades, ours sold as well as the 1 across the street is nonetheless in the marketplace. Make your house outshine the other people.

Also, believe about Staging your residence. Your home will stand out among the competition as a stager will showcase your home to its best advantage and this can re-force the buyers decision that your home may be the proper option.

Bear in mind, the longer an over-priced house remains on the market, the lower it’s final selling cost will probably be. Step into the buyers shoes and you will see that you wouldn’t wish to invest a lot more cash on a comparable property and you can’t anticipate others to be any diverse.

Most essential ~ listen closely to your Real estate professional. They sell homes everyday and have the experience to lead you inside the right direction for a closed sale!

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Comments (0) Aug 22 2011

To be or not to be…a landlord? That’s the question.

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I read an interesting article in the Wall Street Journal yesterday about the renting market versus the owning market. While the scene is in California, this can be very similar here in SW Florida and especially in Cape Coral and Lehigh Acres.

Agustin Gutierrez, a construction worker from this town in the hills northeast of San Francisco Bay, lost his job in 2009, then, 10 months later, he lost ownership of his home.

Now, the husband and father of 4 rents the identical five-bedroom ranch from McKinley Capital Partners, an investment company that is at the forefront of a brand new breed of big-money landlords.
McKinley, which has acquired more than 300 foreclosed single-family houses in the Bay Area over the past two years, lately teamed up with Och-Ziff Capital Management Group LLC, a new York hedge fund, with plans to buy at least 500 more foreclosed houses in the subsequent year. Those homes, too, will probably be rented to people like the Gutierrez loved ones.

Acquiring foreclosed homes as investment properties has long been dominated by mom-and-pop investors. But now hedge funds, private-equity firms, pension funds and university endowments are dipping into that market place. The attraction is double-digit returns at a time when most bonds along with other income investments yield extremely small.

Essentially the most well-liked strategy is for a large investor to team up with a neighborhood organization that scouts out houses and finds the renters. The hope would be to flip the homes within the future when prices recover.

“It’s kind of the Wall Street meets Principal Street phenomenon,” says John Burns, an Irvine, Calif.-based real-estate consultant who has discussed investing in single-family rentals with hedge funds. “The Major Street guys need to have the capital, and Wall Street requirements the expertise.”

At the finish of May possibly, 3.five million loans had been at least 90 days delinquent or in foreclosure, based on investment bank Barclays Capital. In the very same time, the country’s house ownership rate has fallen, to 65.9% inside the second quarter of 2011 from its peak of 69.2% in 2004, based on figures released by the U.S. Census Bureau final month. That drop has produced millions of new renters and helped push the vacancy rate for rental housing down by about two percentage points, to 9.2%.

“The single-family rental market is truly very large,” said Dennis McGill, director of investigation at Zelman & Associates, a study firm that follows the housing market place. “The average American says, ‘If I’ve got two kids and a dog, I can’t live in a one-bedroom apartment.’”

Zelman lately issued a report saying that in Arizona, Florida and Nevada, states hard-hit by the foreclosure crisis, the number of families renting a single-family house increased 48% from 2005 to 2010.

Huge institutional investors could eventually help stabilize the marketplace by soaking up the huge overhang of foreclosures, which could allow housing to begin healing. However, the number of single-family houses being bought by institutional investors is still small compared to the millions of distressed properties. The biggest players in the industry are deploying hundreds of millions of dollars, not the billions necessary to make a major dent.

The federal government has a significant role as well. The Obama administration is currently considering ways of selling foreclosed houses to investors who agree to rent them out. Fannie Mae and Freddie Mac and the Federal Housing Administration own a lot more than half of all unsold foreclosed houses.

Being a landlord can be a costly hassle for significant investors. Unlike apartment complexes, which concentrate hundreds of rental units in one place, investors must obtain hundreds of single-family houses that are miles apart, each with separate maintenance problems. Tenants can be troublesome.

“You could have a bad tenant who doesn’t want to pay their rent, or maintain the pool,” says Guy Johnson, an investor who buys foreclosed properties in Nevada, Arizona and California and rents some of them out. “A hedge fund manager doesn’t want to have to be their own plumber or electrician.”

Purchasing foreclosed properties isn’t easy either. Investors sometimes have to pay thousands of dollars in “cash for keys” payments to the previous homeowners in order to entice them to leave the property, and foreclosed homeowners often damage their houses before they are evicted.

Private-equity giant Carlyle Group LLC tried its luck with the single-family property market two years ago but abandoned the strategy late last year after concluding that the returns weren’t big enough. Carlyle’s method was different. The organization formed partnerships with nearby asset managers in California that bought and flipped houses, rather than renting them.

For now, a lot more investors are plunging into the single-family rental marketplace. McKinley, the Oakland, Calif., business that owns Mr. Gutierrez’s house, has already begun to use Och-Ziff income to purchase houses. Its model would be to acquire houses at an average price of about $100,000 apiece, put between $10,000 and $25,000 in renovations into them, and set the rental rate of the house so that it produces a return of 8% to 12% annually. This often works out to a rent of roughly $1,200 per month.

McKinley and Och-Ziff could see additional returns from selling the houses at a higher price after a few years, once the market place has improved. “Two years ago no one thought you could scale this business or that it could be institutionalized,” stated Gregor Watson, a principal with McKinley. “Now, you can get extremely good yields. It’s a quite good long-term strategy.” He declined to comment on the Och-Ziff investment. Och-Ziff also declined to comment.

Other significant investors have formed rental-housing partnerships.

G8 Capital, a private-equity fund based in Ladera Ranch, Calif., has bought 3,000 houses across the country since 2008, mostly to flip them. It decided last year to begin pursuing a hold-and-rent technique. It has since bought 250 foreclosed houses as rentals. Carrington Property Services LLC, a Santa Ana, Calif.-based property investment business that manages about 4,500 houses nationally, is in talks with investors to raise funds for a real-estate investment trust, to be called Residential National Trust, which would acquire foreclosed houses for rental. The company plans to purchase as many as five,000 far more rental homes in markets including Chicago, Miami, Phoenix and Las Vegas.

Waypoint Genuine Estate Group, an Oakland, Calif.-based firm, has bought 700 houses within the past two years as rental properties. Doug Brien, a former place kicker for the New York Jets who is now managing director of Waypoint, says that his company has approached pension funds, university endowments and big private investment groups about investing in his fund. In July, he says he closed on a financing deal from an Ivy League university endowment, but declined to name the university.

“At some point, there is going to be a shortage of housing,” Mr. Brien mentioned. “Everyone is realizing that single-family buy-and-hold is the way to go.”

In November, hedge fund manager William Ackman’s Pershing Square Capital Management LP released a report arguing that single-family rental properties are an “under-owned asset class” that would make “an intelligent investment for institutional investors.” Pershing Square predicted that investing in single-family houses and holding them as rentals for 10 years could produce double-digit investment returns, even if U.S. residence costs only improved marginally.

All the activity is fueling a renewed debate over whether investors are good or bad for the housing industry. In the early days of the housing bust, some community groups discouraged banks from selling foreclosed houses to investors for fear they wouldn’t take proper care of the properties. Some communities riddled with foreclosed houses became slums.

Alan Mallach, a senior fellow with the Brookings Institution in Washington, argues that instead of running from investors, local governments should provide subsidies to investors who buy, rent out and are good landlords for foreclosed properties. “If a neighborhood has a high rate of residence ownership, that’s obviously better,” he stated. “But in some markets, there was so much inventory coming on the market place that the sheer number of properties was destabilizing those markets.”

Mr. Gutierrez, the Vallejo construction worker, now pays $1,800 a month in rent, compared to the $2,500 per month he was paying to cover the cost of his mortgage when he owned the house. He says it bothers him that he no longer owns his property, but is happy to pay less and says his new landlords are good property managers.

He bought the house in 2003 for $340,000 using a $322,700 loan. He refinanced the house 5 times, driving up the total amount of debt on the house to $400,000. He lost the house to foreclosure in 2009. McKinley paid about $155,000 for the house that year.

“It’s confusing, because sometimes I think it’s my house, but I have to remind myself that it’s not,” mentioned Mr. Gutierrez, who says he doesn’t plan to try to repurchase the house. “It’s sad, but it’s what happened to a lot of men and women.”

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Comments (0) Aug 06 2011

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