Top Ten Foreclosure Cities

1. Merced, CA

2. Modesto, CA

3. Stockton, CA

4. Riverside, CA

5. Detroit, MI

6. Fort Lauderdale, FL

7. Cape Coral, FL

8. Vallejo, CA

9. Las Vegas, NV

10. Sacramento, CA



Interesting that Merced is the top foreclosure city in the US. Why Merced? Perhaps because it was a hotbed for home investors over the last few years ever since the new University of California campus was chosen there. I saw a lot of people buy there with the expectation that some 30,000 students and faculty would greatly impact the value of real estate in that city. Just buying anything in any market does not guarantee you success. We may all agree that now is a good time to buy. What is more difficult is what location, property type, etc. is best to buy. Following the herd is also not wise. The herd was very present in Las Vegas too as seen by their 9th place ranking. The land of glitter had many non-owner purchases. These being the easiest to let go to foreclosure when times get tough. The strongest markets? - those that have very high owner occupant ratios. Look at the central bay area with ratios as high as 98% for owner occupied single family homes - now that is stability.

Bank REO Purchase Addendum - Watch Out!!!

After a buyer makes an offer on a bank owned property, the counter offer addendum that comes from the bank or from the asset manager/servicer is interesting, for lack of a more nasty word! Little clauses such as: attorney fees for the bank to be paid by buyer if buyer loses their dispute, buyer's attorney fees to be borne by buyer if buyer wins! Evil, evil, evil. If buyer defaults on the purchase agreement, then the bank keeps the deposit without needing buyer to approve release of deposit from escrow (I hear retired Realtors turning over in their graves at that one - also to be known that Realtors never retire, they just sell underground dwelling into eternity). OK, yes, you can hear in my words that I am a bit upset at these addendum and the rough-shod take-it-or-leave-it attitude of the banks disposing of their inventory. My current buyer loses his job during escrow and the bank (to remain un-named - let's just say they are now owned by Chase...) decides to keep the family's $5,250 deposit. Nice, very nice...

Bank Owned Duplex San Jose

The following financial analysis is of a duplex that I previewed today. The numbers make good sense.

$399,000 list price for two 2-bedroom, 1 bath units in decent shape.
Assuming a purchase price of $380,000
Down payment of $76,000
1st loan of $304,000
payments at 5.25% = $1,450
Insurance, taxes and utilities = $550
Rent at $1,200 per month per unit
$400 monthly cash flow

Not a bad little investment at all!

San Francisco Apartment Building Deals

The core rental markets in San Francisco have always been great areas in which to own. Due to the softness in certain other markets such as the single family rental home sales market, the buyer demand of small apartment buildings has lessened. Fewer sellers of rental houses are initiating 1031 exchanges and then looking for small apartment buildings to trade in to. If you have the ability to buy in this market, it very well may be the best time to get into the SF rental market. I have seen very nice buildings for prices not seen in a long time. Two such deals in Nob Hill and the Inner Richmond stand out with asking prices in the $260 per square foot range. Prices at $1.6M - $1.9M. And... rents are very healthy! And, and... interest rates are way low! Time to take advantage of the deals out there. Call me to run the numbers and see the opps.

Bank Owned Cambrian Home

Just on the market today is a beautiful 4 bedroom and 2 bath single story home. Prefect for first time home buyers. Large front and backyard, spacious and bright living room, open floor plan. Nice and quiet neighborhood. Great location, easy access to major freeways, close to schools, parks and shopping's. Must See! List Price $534,900

Home Buyers Workshop Thursday, Jan 15th

Willow Glen Duplex Listings Under $450,000

Live in one and rent out the other, or rent out both. Either way this is a great deal for an investor or first time home buyer. Willow Glen has some really great bank owned duplex listings. We have four currently on the market all asking below $450k. Very close in distance to Downtown, transportation, and freeways. Now is your chance to make a great move. If your interested in finding out more information regarding bank owned properties or one of these duplex listings I mentioned please contact me mario@interorealestate.

Cambrian Bank Owned Home

Very cute bank owned home with a lot of potential to make your. Nice lot and home that has lots of space. The 3 bedroom/ 2 bathroom has a very large floor plan and fireplace in living room, kitchen and dining area combo that leads to back yard patio access. List price $515,900

New Condos San Francisco

There are some very good investment opportunities in new San Francisco high rises these days. Rents are up and holding their prices well while sales prices are down especially in the newer communities near the Bay Bridge and the ball park. If you compare annual rents to purchase price (the GRM), that ratio has become significantly better. GRMs unheard of in San Francisco for decades. Call me for some great investor deals with good equity upside in the future.

Excellent location in the Villa's, just walking distance to Santana Row's upscale shops and restaurants. Very nice sized 3 bedroom/2.5 bath with large living and dining room. Very clean and bright home. Good sized fenced and landscaped rear yard. We are currently tracking this excellent bank owned deal listed for $724,000. If you have additonal questions please contact my assistant krasmussen@interorealestate.com.

South Lake Tahoe Bank Owned Homes

I just took a trip up to south shore Lake Tahoe to see the inventory of bank owned homes. There are some very nice deals up there. My focus was on the sub $400,000 price range, single family homes all near Stateline, Heavenly Ski Resort and the lake. Of course, everything in south shore meets these requirements. There are very nice homes selling at or near $200 per square foot prices. Some that take a bit more work are in the $150 per square foot range. These homes are selling significantly below what the market was a year ago ($300 per square foot range - with many homes still listed at those prices). If you have an opportunity to invest in this market, you will be very happy a few years from now. Let me know if you want to see some of the standout opportunities that I saw.

Home Buyers Workshop Thursday, January 15th

Peninsula Investment Forum - January 27, 2009

Don't miss out on the Peninsula Investment Forum on January 27, 2009. To find out more information just click the flyer above.

Great Bank Owned Homes for First Time Buyers

Great opportunity for first time home buyer or investor! Charming Cambrian home in a wonderful neighborhood. Close to all services including schools, parks, shopping and transportation. Corner lot, 4 bedroom/2 bathroom house! Recently remodeled kitchen with granite countertops, hardwood floors, dual pane windows, recessed lighting,newer electrical panels . Bank owned. List price $449,900.

Nice 3 bedroom 2 bath bank owned Cambrian home with an extremely low listing price. This home has updates throughout, very close to schools, shopping and freeways. List price $378,900.

Willow Glen Bank Owned Duplex

Spacious Willow Glen duplex for the price of a single family home. Live in one and rent out the other! Unit #1 3 bedroom/2 bathroom, upgraded, Unit #2 is a 2 bedroom/1 bathroom. Each unit has a fireplace and laundry facility. This home is just walking distance to banks, shopping, restaurants, schools and churches. Don't let this one pass you by. List price $589,000.

Santa Clara County Market Update Week Ending 1/1/09

Here is the Santa Clara County market update week ending 1/1/2009. To view larger picture of diagrams please click on the picture below.

Bay Area Apartment Brokers Forum

Group: Bay Area Apartment Brokers Forum - Established 1986 - (23 Years)
Guest Speaker: Kari Noomen-WaMu - J.P.Morgan Chase - The Noomen Team
Topic: Financing Multi-Housing Properties2009
Date: Wednesday, January 14, 2008 - 8 AM
Place: First American Exchange Company, 1737 North First St., San Jose ---- 4th Floor
Breakfast: Continental Breakfast - no charge - First American Title/Exchange
Chairman: Richard Domich - CB Richard Ellis
Vice Chairman: Keith Suddjian - Cornish & Carey
Membership: Kari Noomen - WaMu - J. P. Morgan Chase
Sponsor: Mary Kay Kennedy - First American Exchange

Note: All present will have an opportunity to present their listings, buyer requirements, as well as their analysis of current events and market trends that directly effect the multi-housing (apartment) industry in Silicon Valley and greater Bay Area.

Adjournment: 9:30 AM
Feb. 11, 2009 Larry Souza - Bay Area Multi-Housing Overview 2009
March 11, 2009 Ric Russell - The Future of Multi-Housing Brokerage 2009

Happy New Year's Eve!

This year has been....____________. Fill in the blank for your most relevant description. I am sure we are all very glad to wrap up 2008. Home prices have dropped dramatically, the economy is hurting, friends have been laid off, bailouts, bank closures, investment houses disappeared, etc. etc. etc. Yuck!

And then I look at the things that I cherish. My kids, Max & Vivienne, now 10 years old. My lovely "significant other" with a smile that won't quit. My mom, grandma and other family members. My friends, coworkers, and the far flung supporters of my life and our community (from local to global). These "assets" never lose their value. In fact, they become more precious every day. I hope you have wonderful people in your life too.

It's time to be thankful for what we have and to look forward to what 2009 will bring. I wish you all a wonderful evening to wrap up this year and an awesome new year. May it be the best you can hope for. Happy New Years:-)

New Milpitas Listing

Great low pricing for 5 bedroom/2.5 bath bank-owned property!This home is 5227 sq. ft. lot, 1bedroom/1bath on 1st level, hardwood & tile floors, high ceilings in family room, very spacious backyard, open floor plan. Great neighborhood, adjacent to Milpitas Montessori school yard. Close to shopping and Hwy. 680. List price $599,845

Bank Owned 4-plex Listings In Silicon Valley

Here is a short list of some interesting bank owned REO fourplexes in the South Bay. The 5+ unit apartment market is very healthy because financing was based on the building's net operating income. The fourplex market has had the same hits that the single family sub-prime market had. So, this is where the deals are:

$869,875 1850 SOUTHWEST EXPRESSWAY, San Jose, CA 95126, 4,339 square feet
$799,900 3829 UNDERWOOD DR, San Jose, CA 95117, 3,986 square feet
$708,100 1407 CALLE ORIENTE, Milpitas, CA 95035, 2,944 square feet
$650,000 188 GRAMERCY PLACE, San Jose, CA 95116, 3,206 square feet
$529,900 1352 CARNELIAN DRIVE, San Jose, CA 95122, 3,214 square feet

Let's take advantage of the great rental market and the softness in the 4plex market.

We are tracking over 40 fourplexes in the valley alone!