Buying Foreclosed Homes and Real Estate!

Yes this is the number is the number two search criteria on Yahoo.com today.

As a real estate agent and more importantly, a student of my career, in 2009 I became an investor in foreclosed homes.  It has taken me a while to save a good nest egg for these opportunities and I have always visualized being able to do this.

Since I live in Irvine, California, the foreclosures in this neck of the woods do not compare to some foreclosures in Ohio.  A foreclosure in Irvine is 90% of the time completely upgraded with the latest quality materials.  The profit margin is also much higher as well.  As an example, I bought a foreclosure 4 bedrooms, 2.5 baths, 2,200 square feet home for $535,000 and sold it 65 days later for $650,000.  The same 4 beds, 2.5 baths, 2,200 square feet home in Ohio is $95,000 and can be rehabbed and flipped in 120 days for $115,000.

As you may know, you must pay ALL CASH for a foreclosure at the court house the day you win the bid.  In Irvine, this is much harder to do because not too many people have $650,000 in cash lying around.  At each foreclosure, there are about 10 to 15 people with this amount of money on hand.

If you can buy a foreclosure, you are going to be well positioned to make a great long-term profit because you will be purchasing a property for 10 to 20% UNDER the current market.  Some experts have said that we have reached the bottom of the market, and if this is true, and the market returns to its previous high in 10 years, then you will have made an incredible profit.

To be honest, no one really knows if we have hit bottom.  I can only judge based on my day to day experience in the field.  Remember, the last downturn took almost 7 years to come back.  This downturn is much more broad and wide affecting and also, the governments stimulus plan is ARTIFICIALLY keeping the market up.  We will really only know the real story AFTER June 30, 2010 when the buyer incentive program of $8,000 or $6,500 tax credit ends.

In the meantime, I see the default list and notice of foreclosure list continue to grow.  So this tells me there will be more opportunities coming in the next few months.

So if you are serious about learning the ins and outs of foreclosures and real estate in general, call me.  Remember, I am constant student of real estate and life.  Send me an email, Mike@MichaelDunn.com

Happy Investing.

Mike

Posted: January 31st, 2010 under Hot Tips, Real Estate News.
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iPad and Real Estate!

As many of you know, the new Apple iPad came out this week promising to fulfill many more of our communication needs with even more efficiency.  Apple and Steve Jobs have had a tremendous innovative run the past 30 years, especially the last 10 years.  Apple has been an example we can and should all learn from.

We all cn learn from his example.  This is why I propose the iHome.  Yes, the iHome.  The iHome will be a real estate investment that will year in and year out, gain value and every 10 years double in value.  It will provide for all our families by letting us retire with a prodigious nest egg of savings.  Here is how it works:

1. Buy a home you can afford and fits the needs of your family or you.  For example, if you make $100,000 per year after taxes or $8,333 per month and you have $3,000 in monthly debts, then you qualify for a $2,333 per month for your mortgage or a loan amount of around $400,000.

2. Be patient.  You have to assume you will live in this investment for a long time; 10 years or more.  And if you know you will have something for 10 years, you will more likely take good care of it.  On average, real estate doubles in value every 10 years, so just wait.

3. Work on paying down your mortgage and reducing your monthly payment.  The reason for this is twofold; 1. This will add more equity into your home and if you decide to rent it out, you will have greater cash flow.  2. The more equity you have in your property, the more you can borrow against it if a great opportunity should arise in the future.

Sounds simple right?  Well it is, the golden rule of living within your means rings very true here.   Now, the question is, where do you find the best value?

www.NorthwoodPointeIrvine.com for your primary residence.  http://www.MichaelDunn.com/real_estate/searchMLS.asp for possible investment opportunities

Or send a email to Mike@MichaelDunn.com for a list of upcoming foreclosures.

Happy Investing.

Mike

Posted: January 31st, 2010 under Hot Tips, Real Estate News.
Comments: none

Haiti and Real Estate!

The tragedy in Haiti coming from the magnitude 7 earthquake two weeks ago, is still being felt by the people on this tropical island.  When I first heard of the news and saw the suffering and the amazing stories of survival, I became extremely humble.

Here is Irvine California, we do not even have weather! Sure we get a small jolt every now and then but the wetaherman and women here can basically video tape the weather report and leave for 6 months.  of course everthing is relative, families in irvine still need to raise their children and run errands, so our daily routine is much different from the Haitian daily routine even without the distrous earthquake.

However, it made me think back in time when I was a college student and athlete trying to play professional abseball. I had perhaps $200 in my bank account, had a beat up pickup truck and a lot of energy.  When I looked at video of Haiti, I noticed that what I had then is more than 90% of what Haiti has today . . . yes TODAY! I started to feel incredibly blessed and on one occasion, I drew a deep breath and thought “Am I being too greedy by working so hard?”.

Then I tought about the opportunities we all have in the United States to flourish.  i also thought about how lucky haiti is to have the United States as a neighbor.  yes, it needs to be said.  We are a good neighbor and I am certain our neighbors appreciate us.  This is evidenced by more people coming into our country than leaving it.

Speaking of people moving into our country, their is a large influx of buyers coming into the United States and especially to Irvine.  Why?  In my 12 years of real estate, buyers have a genuine appreciation for good schools, clean streets and good Feng Shui.  Irvine fits all those and then some!  Curiously, EVERYONElikes good schools, clean streets and good Feng Shui!!!  This is why Irvine has withstood some of the major real estate downturn that other areas have experienced.

This brings me to www.NorthwoodPointeIrvine.com which fits all these criteria and more.  It is the only community in Irvine that does not have apartments in its zoning.

Here are some of the ebst real estate deals in Irvine today:

9 New Dawn 5 beds, 4.5 baths, 4,600 square feet for $1,799,850 to $1,828,000

16 Gardenia 5 beds plus bonus, 4.5 baths, 4,400 square feet $1,799,000

74 Ashcrest 4 beds plus office, 2.5 baths, 2,500 square feet $949,000

91 Shadywood 4 beds, 2.5 baths, 2,200 square feet $825,000

62 Montrose 4 beds, 2.5 baths, 2,400 square feet $879,000

6 Hibiscus 5 beds, 3 baths, 3,500 square feet $1,299,000

7 Photinia 5 beds, 3.5 baths, 3,500 square feet $1,299,000

FORECLOSURES:

3 beds, 3 baths, 1,600 square feet Opening bid $465,000

2 beds, 2.5 baths, 1500 square feet Opening bid $330,000

5 beds, 4 baths, 3,000 square feet Opening bid $775,000

There are more coming up so send an e-mail to mike@MichaelDunn.com and I will get you what you want.

Happy Investing.

 Mike

Posted: January 26th, 2010 under Hot Tips, Real Estate News.
Comments: none