Top Ten Reasons to buy Real Estate . . . NOW!

For those of you who do not realize the amazing return of real estate or those of you who are hesitant to buy, to follow is my list of the top ten reasons to buy real estate . . . NOW!

1. Choices:

The first of Special Agent Dunn’s Top Ten reasons to buy real estate now, is inventory.  The amount of inventory or choices for buyers is at a 10 year high.  In the orange County real estate market, you can take your time and really make a sound decision based on fact, not emotion.  The more inventory, the more competition for sellers and the more choices you as a buyer are give.  This translates to a better price for you as well.

2. Less competition:

The second of Special Agent Dunn’s reasons to buy real estate now, is lack of competition.  When you go look at a  property today, the chances are 70% that you will not have competition on that property.  This translates into less pressure to out bid another offer.

3. Very few investors or speculators

This third reason is a key factor for you as a buyer.  You see when the market was hot, the market became flooded with investors which led to mortgage fraud.  This translates to less non-owner occupied rental properties which will keep the neighborhood value high.

4. Lower interest rates:

The fourth reason of Special Agents Dunn’s top ten reasons to buy real estate is the lowering of interest rates and the extension of the conforming loan limits.  The government is making money very cheap to borrow which means leverage for you.  Also, the conforming loan limit has been raised in Orange County to $729,000 only until the end of the year.  So hurry.

5. Motivated new home builders:

The fifth reason to buy is the extremely motivated inventory of new construction.  Home builders are offering tremendous incentives to close.  Everything from cash toward closing costs, to free upgrades and flooring allowances.

6. Affordability:

The sixth reason Special Agent Dunn’s says it is a great time to buy real estate, is the affordability.  A few years ago, especially in Orange County, buyers would buy inland and commute to Orange County.  Today, they can live and work in the same area; a huge benefit to families.

7. Seller financing:

The seventh reason to buy today is that sellers are very motivated to help the buyers make a deal.  As a result, many sellers are willing to finance the properties themselves for the buyers.  be sure to read the fine print on these deal, but often times, you can get a very good deal from the seller.

8. Longer contingency periods:

The eighth reason Special Agent Dunn says it is a great time to buy, is the lengthening of the contingency period.  When multiple offers were occurring, many sellers shortened the buyers contingency periods and buyers were forced to wave their inspections to get the house.  Today, buyers can take their time and make sure the property they are buying meets all their standards.

9. Negotiation:

The ninth reason Special Agent Dunn feels now is the time to buy, is the fear sellers have of a falling market.  Sellers fear that the market will fall further and they will lose more equity.  This fear helps you as a buyer to take advantage and ask for more concession such as having the seller pay for your closing costs, pay down your loan interest rate, add furniture or personal items to sweeten the deal.

10.  Buy it and wait:

The tenth of Special Agent Dunn’s top ten reasons to buy real estate today, is the age old adage.  “Buy real estate and wait”.   Today we are about 20% below the peak of 2005 and early 2006.  This means that when, not if, when the market starts up again, you already have a 20% equity build up.  Historically, the real estate market has rebounded past the previous peak.  In the meantime, you have a tax deduction and if you wish, you can have a tenant carry your property for you.

Their is an 11th reason to buy and this will only be divulged when you contact Mike at Mike@MichaelDunn.com or 949-533-2581.

Happy investing.

Mike

Posted: March 31st, 2008 under Hot Tips, Real Estate News.
Comments: 2

 

Top Real Estate Deals in Irvine

The following listings are the top Real Estate Deals in Irvine, if as a buyer you are looking for the following:

1. A fantastic stable environment to raise your family.

2. Insulated protection against a falling real estate market.

3. Convenient access to shopping, recreation, transportation.

4. The best education opportunities for you and your family.

Well, looks like you have made a great decision, so here are your choices:

- Fantastic first time home buyer opportunity with 3 bedrooms, 3 bathrooms in almost 1,600 square feet with two car attached garage, wood floors, cathedral ceilings and a lap pool sized yard.  Only $599,900 and this will lease for $2,500 per month - minimum.

- Single family detached home at end of cul-de-sac with 5 bedrooms, 4 bathrooms in almost 3,100 square feet with a guest suite downstairs.  Granite counters in kitchen, wood floors, 3 car side by side garage and a large spa or spool in the yard.  This street is families galore.  Offered at $1,199,000.

- Award winning Taylor Woodrow in the exclusive Mayfield development.  4 bedrooms plus a bonus and 4 full bathrooms in almost 3,400 square feet on a gigantic 10,000 square feet lot with wood floors, granite counters and a 3 car side by side garage.  Offered at $1,499,000.

- Almost half an acre lot with step down BBQ, fireplace, saline pool with rock waterfall and slide, spa, basketball court and golf putting green.  The house has 5 bedrooms, 5 bathrooms in almost 3,700 square feet with upgraded everything - travertine and wood floors, granite counters, coffer-ed ceiling, custom paint, built in closets all for only $2,099,000.

- Near end of cul-de-sac with private access to Hiking Trail with 4 bedrooms plus a bonus, 3 bathrooms in almost 3,500 square feet with two car attached garage and extra large lot.  Granite counters, plantation shutters, custom paint.  Only $1,299,000.

- Close to end of cul-de-sac backing to a view of trail and open fields with 5 bedrooms plus a loft, 3.5 bathrooms in almost 3,600 square feet with 3 car tandem garage.  Offered for $1,699,000.

- BANK OWNED and discounted beyond comprehension.  This is 5 bedrooms plus two lofts with a guest suite downstairs in almost 2,500 square feet at the end of a cul-de-sac with 2 car attached garage.  Only $925,000.

- Amazing starter home with 4 bedrooms and one downstairs, 2.5 bathrooms in almost 2,300 square feet with 3 car side by side garage.  Only $925,000.

 For more information on these and other deals, call Mike at 949-533-2581 or Mike@MichaelDunn.com

Happy investing.

Mike

Posted: March 31st, 2008 under Hot Tips, Real Estate News.
Comments: none

Real Estate and Acting 

Real Estate and Acting. Yes, I can hear you “Looks like Special Agent Dunn is really reaching to find things to write about for real estate”. In reality acting and real estate have a lot in common.

First of all, to become a good actor, one must do their research and shadow the person the actor is portraying. In real estate, one must do their due diligence and research to make sure the property will make a good investment.

Secondly, an actor must be able to be spontaneous or in the moment. In real estate investing, one must be ready to pounce on a great deal. This means that you should be pre-approved with your loan and be ready to close quickly if a good deal comes around.

Third, like an actor, you must be able to role play. By this, I mean be able to be a chameleon and learn to adjust to the situation. If you come upon a seller who is very motivated to sell, you must play hard to get and see how much the seller will give you.

In acting you only win an Academy Award when your peers vote for you. In real estate you only win an award when you make the right decision.

In real estate, pretend you are an actor portraying a savvy real estate investor. What do you need to learn? Who do you need to shadow? When do you start training? These are all questions that you need to ask yourself and once you apply them, you will flourish in real estate.

Also, the picture above is from an acting class I took called the “WOW Factor” with Lynn Rose, a tremendous motivational speaker and actress. Go visit her at www.LynnRose.com.

In the meantime, play Monopoly and see what you get. The real world is much like Monopoly but the money is real.

Happy investing.

Mike

Posted: March 29th, 2008 under Hot Tips, Real Estate News.
Comments: none

 

Real Estate - The Longhorn Investor Network

 

The Longhorn Investor Network is a company founded by Mike Dunn in 2005 specializing in real estate investment properties.  Contrary to the names’ suggestion, in addition to investing in Texas real estate, the company owns properties along the Eastern seaboard and California.

 

Mike started the company during the height of the California real estate boom primarily because he was frustrated with the lack of cash flow in

Orange

County investment properties.

 

At the peak of the real estate boom, a typical 3 bedrooms, 3 baths, 1,600 square feet town home would require a 40% down payment to achieve positive cash flow.  This typical home in Irvine would sell for $650,000 and 40% down would be $260,000. 

Mike searched in his collegiate town of Austin, Texas and discovered that the same 3 bedrooms, 3 baths house with 2,000 square feet was selling for $180,000 and would fetch $1,400 per month in rent.  This translated to a 10% down payment to achieve positive cash flow.  A $160,000 loan at 6% interest only translated to a mortgage payment of $750 per month. 

As a result of this disparity in cash flow and the amount of money required for a down payment in California, Mike decided the Longhorn Investor Network is the best way to plan for the future.

There are two ways to look at this investment:

1. As an appreciating asset ready to sell when it reaches a certain level
2. As a long term retirement plan that pays a monthly divided

Assuming a modest appreciation of 5% per year, after 10 years the property would be worth around $300,000.  If Mike bought 10 of these properties, after 10 years the net worth would be $3,000,000.  In the meantime, he could carry the property or start paying down the mortgage.

 

Now let’s examine the dividend scenario.  

Let’s assume you pay the amount that the tenants pay every month, instead of the minimum payment.  In the above example, instead of paying $750 per month, we pay $1,400.  This will payoff the property in 15 years instead of 30.

Now, after 15 years you will get around $1,200 per month after dues and taxes, in income.  If you have 10 properties, this becomes $12,000 per month.  A nice retirement income.

 

This is all simple mathematics, but it works.  So if you are interested in putting your retirement plans into action, use the Longhorn Investor Network.

 

Call Mike at 949-533-2581 or send an e-mail to Mike@MichaelDunn.com

 

Happy investing.

 

Mike

Posted: March 28th, 2008 under Hot Tips, Real Estate News.
Comments: 1

 Real Estate - Wall Street versus Main Street

The past few years have seen some incredible events on Wall Street.  Between Enron, insider trading and just plain old criminal activity, we have seen our trust in Wall Street wane and for good reason.

Why would you trust your money with perfect strangers?  Or should I say, why would you trust your money with imperfect strangers?  It is time for you to trust the only dependable person on the face of this Earth . . . YOU!

Yes, YOU have the power to become independently wealthy without the roller coaster of greed taking your money away.  The answer is REAL ESTATE. 

In REAL ESTATE, you have control of everything.  You know the area you are buying in because you have done the research.  You know the tenant you are renting your property to, because YOU have done your due diligence.  You are not depending on a slick haired hung over newbie to tell you where to put your money.

You are listening to your inner voice and tapping into the greatest asset you have, YOU.  A great philosopher once said, “The power is within YOU!”.  This philosopher has over one BILLION followers today and many have reached their goals and aspirations by following this simple yet time tested philosophy.

If you are truly interested in building your financial freedom, let go of Wall Street and go to Main Street in your town ad you will see that all you need is in front of you.  It is simple mathematics. 

Buy a property that you can afford, make sure the rent you get covers your payment and live your life.  The rest will take care of itself.

I know it sounds simple, but the greatest “secrets” in life are simple.

Happy investing.

Mike

Posted: March 27th, 2008 under Hot Tips, Real Estate News.
Comments: 1

The Best Real Estate Buy 

The Best Real Estate Buy is at 10 Azalea in the Northwood Pointe part of Irvine.

This property is located in the gated community of Somerton built by Standard Pacific Homes and features 4 bedrooms plus a bonus and an office in almost 3,500 square feet with a two car attached garage and is located less than 200 yards to elementary and high schools.  The Best Real Estate Buy is also less than 2 miles to shopping and freeways.

The owners have found another home and are anxious to move on to the next exciting phase of their lives.  As a result, this Best Real Estate Buy has been priced well below market at $1,299,000.

Specific upgrades include a professionally landscaped yard with built-in BBQ and a waterfall feature.  Inside the kitchen features upgraded granite counters, porcelain tile flooring, custom paint, and crown molding.  The living and dining areas feature cathedral ceilings which allow maximum sunlight and brightness.  The living room also features three large windows which can be made into french doors opening to the backyard.

This Best Real Estate Buy already has received three offers and will go quickly, so act fast.  For you investors, this property will rent for between $4,500 and $5,000 per month, so 20% down will make you break even and perhaps a positive cash flow after your tax deductions.

For more information on the Best Real Estate Buy, go to www.NorthwoodPointeIrvine.com and take a tour of this amazing area just minutes from the California Riviera.

Happy Investing.

Mike

Posted: March 26th, 2008 under Hot Tips, Real Estate News.
Comments: none

Real Estate and Clinton, McCain and Obama

With the presidential election almost 6 months away, all eyes are on what our future leaders (Clinton, McCain and Obama) will do to protect us from the rising foreclosure rate, the large debts we as a nation have incurred and what will happen if the economy is not stimulated.

As a nation, the answer is very complex, and one which is going to take a long time to not only find but take action on.  The have a national paradigm shift is the big challenge for all candidates.   The great news is that on an individual basis, the shift can happen quite easily.

Many of us have seen our real estate values go down, but our spending has continued to go up.  Much like a professional athlete who retires and still eats the same amount of food a he did when he played, but exercises less - one is going to gain fat and as a result become lazy and reach less of one’s potential.

Clinton, McCain and Obama are the front runners vying for our votes.   We should be giving real estate our vote.

And if you want the best return on your vote, buy on the Irvine Ranch in sparkling orange County, California.  Clinton, McCain and Obama will never make the impact that you will when you make the commitment to invest in your future. 

Clinton, McCain and Obama will fight it out over who will lead our nation for the next 4 years.  The question is, who will fight for your future retirement?

www.MichaelDunn.com

949-533-2581

Happy investing.

Mike

Posted: March 24th, 2008 under Hot Tips, Real Estate News.
Comments: 1

 

 The Real Estate Foreclosure Market

This Real Estate Foreclosure Market blog is taken from Inman News.  I am taking Easter Sunday off and wanted to at least give you some good information about foreclosures.

 Again, let me emphasize from a previous blog, foreclosures are not always the best deal, especially today when the amount owed on them is substantially higher than the value of the property. 

The following was taken from Inman News on March 20th, 2008: 

California foreclosure rate eases in February

Data company reports month-to-month drop

California’s foreclosure rate fell in February compared to January but was up from the fourth-quarter 2007 average, a foreclosure research and data company reported Wednesday.

Foreclosure sales at auction in the state fell 15 percent compared to January, with 16,931 sales at a combined loan value of $6.85 billion. Notices of default dropped 7.6 percent to 37,362, and notices of trustee sale (which set the auction date and time) fell 20 percent.

The rate of defaults rose 26 percent, though, compared to the fourth-quarter 2007 average, and foreclosure sales were up 36 percent.

“February declines are a welcome break from the astonishing increases in December 2007 and January 2008,” said Sean O’Toole, a foreclosre tracking company founder, in a statement. “Unfortunately, those increases and the continued withdrawal of lending options point to more trouble ahead. Based on current activity levels, we still do not expect foreclosures to peak earlier than the third or fourth quarter of 2008.”

A national foreclosure data provider earlier this month reported a 59.8 percent year-over-year rise in U.S. foreclosure filings activity in February. Foreclosure filings activity decreased 4 percent in February compared to the previous month, though the year-over-year rise in activity grew from January to February.

California had the second-highest rate of foreclosure filings in February, with one foreclosure filing for every 242 households. Nevada led the nation with a rate of one foreclosure filing for every 165 households. And California had the highest volume of foreclosure filings among states, with 53,629 total filings in February.

Lenders took back 98 percent of foreclosure properties at auction, “despite offering substantial discounts,” a foreclosure reporting company reported.

About 77 percent of foreclosure property sales at auction are discounted by an average amount of 19 percent, with 31 percent of those properties discounted 30 percent or more, the company reported. A year ago, only about 3 percent of properties at auction had an opening bid discount of 30 percent or more.

The company found that 98 percent of the foreclosed loans for which the company had determined loan position were first mortgages, and most of those properties had their second mortgages erased at sale. About 46 percent of foreclosed loans were originated in 2006, with 36 percent originated in 2005, 10 percent originated in 2007 and 5 percent originated in 2004.

 So, as you can see most of these loans originated at the peak of the market between 2005 and 2006.  If you are interested in foreclosure lists or even better, bank owned lists, just send an e-mail to Mike@MichaelDunn.com and I will get you on your way to building some tremendous wealth.

Happy investing.

Mike

Posted: March 23rd, 2008 under Hot Tips, Real Estate News.
Comments: none

 

Real Estate and the Golden Goose – Continued – part two.

 You may have read my Golden Goose story the other day and I actually had more to add to show how leveraging other people’s money can bring you large dividends and, as you will see, a lump sum payout at the end. When someone wins the state lottery, the state gives the winner the option of taking a lump sum or a payout over 30 years. In this sense, the lottery has much in common with real estate. 

For example, in real estate you get a double benefit with a tenant helping to pay your mortgage and you have the appreciation as well.  In real estate you have a choice to either sell your property after a few years of appreciation or continue to rent it. 

Here is a real life example:

A friend Newport Beach bought a 2 bedrooms 2 baths, 1,200 square feet property in 1966 on the sand.  He and his wife lived in it for about seven years and then decided to rent it as a vacation rental.  They bought the property for $65,000 and put $15,000 down.  They financed $50,000 at 5% interest and their payment was around $400 per month.  Initially, the rents were $600 per month, but as the years went by the rents got up to $5,000 per month and $3,000 per week between memorial Day and Labor Day.  They sold their property last year, 2007, for $3,200,000 as tear down/fixer.  Yes, that’s right

$3,200,000! Now let us look at the numbers: For 32 years they had a tenant not only paying for their mortgage, but in some cases, they were getting a positive cash flow of $10,000 per month.  If we take $3,200,000 minus $65,000, we get a net of $3,125,000 in profit. After capital gains, it is more like $2,625,000. The last few years, they were getting $3,000 per week from Memorial Day thru Labor Day for a total of $36,000 which is the same amount as they originally paid for their mortgage for 7 years.  During the winter months, they were getting $4,000 to $5,000 per month.  If this does not convince you that real estate is the Golden Goose with the Golden Egg, I need to go back to the George Bush School of Salesmanship! Buy what you can afford, have a tenant help you with it, and wait . . .

Happy Investing.

 Mike

Posted: March 22nd, 2008 under Hot Tips, Real Estate News.
Comments: 1

 

Northwood Pointe Real Estate

Are you relocating to California?  Are you relocating to Orange County?  Do you want the best real estate investment in Orange County?  Remember, if you answered “YES”, you must not be afraid of success and the rewards you will receive for taking the plunge.

Northwood Pointe Real Estate is the best choice you can make.  Go to www.NorthwoodPointeIrvine.com for an overview of the community, but in the meantime, here are some of the best real estate investments you can make:

Detached 3 bedrooms plus a loft with almost 2,300 square feet for $899,000. Northwood Pointe Real Estate.

Detached 4 bedrooms, 2.5 bathrooms in almost 2,300 square feet with 3 car garage in guard gated community for $900,000. Northwood Pointe Real Estate.

Detached 4 bedrooms plus a bonus, 4.5 bathrooms in almost 3,400 square feet with 3 car garage in guard gated community for $1,499,000.  Northwood Pointe Real Estate.

Detached 5 bedrooms or 4 bedrooms with a bonus, 3 bathrooms in almost 3,500 square feet with 2 car garage or third car option for $1,299,000. Northwood Pointe Real Estate.

Attached 3 bedrooms, 3 bathrooms in almost 1,610 square feet  with 2 car attached garage for $599,000.

For more Northwood Pointe Real Estate, go to www.MichaelDunn.com

Mike

Posted: March 22nd, 2008 under Hot Tips, Real Estate News.
Comments: 1