Real Estate Insight

Rare Opportunity to Buy Real Estate at 30 Cents on the Dollar and Get Double Digit ROIs

03/03/2009 – 3:30 am

If you invest in real estate, YOU MUST READ THIS!

Would you like to improve your investment portfolio’s performance?  Take a look at the information below and see what Reuters Financial News is calling “the buying opportunity of our lifetime.”

Would you like to know where you can buy real estate at less than 40 cents on the dollar and get double digit ROI’s as high as 20% or more?

What’s All the Excitement About?

Here are examples of properties already acquired by our clients or are available. Both properties were purchased for less than 40 cents on the dollar and each started producing immediate cash flows of more than $400 a month with ROIs exceeding 15%. . If it sounds too good to be true, it’s not. These are real scenarios of just two of our many investors.

Here are examples of what all the excitement is about!

	Closed Properties
	1	2
1. Property address	2101 S. Pacific Ave #32	450 E. 4th St #228
2. APN #	932-89-032	937-83-116
3. Property Type	Townhome	Townhome
4. Square Footage	1228	980
5. Bedrooms/Baths	3/2	2/2
6. Peak FMV Date	9/1/2006	2/27/2006
7. Peak FMV Amount	$380,000	$304,500
7a. Zillow Value Estimate	$212,000	$317,000
8. Purchase Date	11/7/2008	12/9/2008
9. Purchase/List Price	$129,000	$118,000
10. Down Payment	$25,800	$23,600
11. Loan Amount	$103,200	$94,400
12. Repairs	$8,063	$3,900
13. Closing Costs	$3,090	$4,244
14. Total Cash Invested	$36,953	$31,744
15. Lease Start Date	12/1/2008	2/1/2009
16. Lease Amount	$1,600	$1,400
17. Mortgage (Int Only)	$516	$472
18. Taxes	$134	$123
19. Insurance
20. HOA	$250	$246
21. Monthly Net Cash Flow	$700	$559
22. Management Fee	$160	$140
23. Monthly Cash Flow	$540	$419
24. Cash-On-Cash Return	17.52%	15.84%

* examples shown are for informational purposes only and should not be construed as any guarantee of future performance.

Call me today to learn how you can take advantage of this incredible opportunity. This is not a gimmicky sales program. It is a bona fide rare opportunity that, based on current activity, will probably end in less than 12 months.

For more information, contact:

Elliot Y.C. Lau, Realtor

Inet Realty

808-306-0666 Direct Line

808-792-3515 Fax

elliot@pr2k.com

Posted in Distressed, Foreclosures, Investing, Lessons, Techniques, Uncategorized, buyers | 1 Comment »

Why Invest in Real Estate Now?

03/03/2009 – 3:19 am

From Zero Hedge , Friday, February 27, 2009 – Don’t Look Now But Market Going to 500

Or at least according to Robert Prechter , who had forecast the 1987 stock market crash, and is chairman of popular technical research firm Elliott Wave International. It is not like the Legion of Doom really needs any more groupies, but if that’s the man’s opinion we will take it.

My long term opinion is that the bear market has several years left to run, and stock prices will go a lot lower," Prechter, said in a telephone interview. more…

Posted in Investing, Lessons, Uncategorized | No Comments »

Investor Alert – Read What Reuters is Calling “the buying opportunity of our lifetime”

03/03/2009 – 3:04 am

Investors scrambling to salvage what’s left of their portfolios following the carnage of 2008 look for a safe haven in 2009.

Reuters Financial News – "This is the buying opportunity of our lifetime. "

Contact me for more information.

elliot@inethi.com

Posted in Distressed, Foreclosures, Investing, buyers | No Comments »

Hawaii Investors Flocking to Orange County California Real Estate Market

11/07/2008 – 4:22 pm

The collapse of mainland real estate markets, particularly in California, has created tremendous investment opportunities for Hawaii investors. This opportunity couldn’t have come at a better time as millions of Americans scramble to salvage what’s left of their retirement portfolios following the brutal carnage that has taken place in the stock markets. Why? Consider this:

As of October 27, 2008 year to date, the Dow Jones Industrial Average has lost 37% of its value; the first 27 days in October accounted for an unprecented 20% of the Dow’s YTD losses. The NASDAQ is even worse, down 42% year to date. Investors have seen a staggering $8.3 trillion dollars evaporate in the stock market so far this year.

As if things weren’t bad enough, Hawaii investors trying to escape the bloodbath in the stock market by moving their investments into real estate are finding Hawaii’s real estate market a tough alternative. Real property values on Oahu so far have bucked the national trend of downward spiraling prices. This means high acquisition prices and low, or even negative, cash flows for investors. “On Oahu, investors are happy to just break even and avoid a negative monthly cash flow,” says Carlton Choy, a Broker In Charge at Premier Realty 2000.

Fortunately, it’s not all gloom and doom. Hawaii investors are turning to a safe and stable investment vehicle and are taking advantage of the downturn in California’s real estate market. Hawaii investors are finding big opportunities in Orange County, California.

There are hundreds of 2 & 3 bedroom homes in Orange County that are owned by banks that had to foreclose on the delinquent owners. These homes that sold for $300,000-$400,000 a few years ago, can be purchased today for as little as $100,000. That’s a 60%+ discount. Investors can buy these homes at 30 cents on the dollar. These homes generate anywhere from $1700-$2400 a month in rent. After all expenses, investors are experiencing positive cash flows of about $400/month per unit equating to a double digit return on investment. While double digit ROI’s and hefty positive cash flows are great, the real investment value is in its future value. It’s a reasonable assumption that these homes will return to the same value it sold for a few years ago. Where else can you invest your money today and reasonably assume that it will triple in value in the next ten years?

In contrast, owning or buying investment real estate on Oahu for the same amount of money will get you a small studio and a negative cash flow. On top of that, since Oahu has held its value, you’re paying “retail” for that property and future value is much more speculative. “I meet with investors several times a week looking to invest in Oahu real estate,” says Elliot Lau, a Broker In Charge at Premier Realty 2000. “When I show them the opportunity in OC, their initial response is that it’s too good to be true. That’s how great the opportunity is right now, and we have real numbers to support it.”

How can you tell that OC real estate is such a great opportunity right now? Follow the pros. Professional real estate investors lead the markets while amateur investors chase the markets. Right now, the pros are buying in OC. A leading indicator of real estate markets is the months of remaining inventory (MRI). It is used to gauge the type of market at any given time. 12 months ago, OC’s MRI was at 17 months; an extrememly strong buyer’s market. In less than 12 months, OC’s MRI is down to 7 months, considered to be a neutral market. Take one guess as to who’s buying all of that real estate? It is no longer a buyer’s market in Orange County. Premier Realty 2000, which has offices in Honolulu and Orange County, has helped many investors reposition their real estate holdings from Oahu to Orange County and triple their return on investment and cash flows. Investors like Paul Lam and Jared Nakamoto of Honolulu see this as a “no-brainer” and are buying as much as they can before this window of opportunity closes. “We expect that there’s about a year remaining for investors to invest in Orange County with such favorable conditions.” says Brian Laughlin, President and Principle Broker of Premier Realty 2000, heading the Orange County office. “The smart investors are seeing that Oahu real estate is not the place to be investing and that Orange County currently offers investors a rare combination of low acquisitition costs, great cash flows and tremendous appreciation potential in a safe and stable investment vehicle.”

Posted in Distressed, Foreclosures, Investing, Lessons, Techniques, buyers | 2 Comments »

Forclosure filings up 71%

10/23/2008 – 12:58 pm

Foreclosure filings surge 71 percent in third quarter as mortgage crisis worsens

WASHINGTON (AP) — The number of homeowners ensnared in the foreclosure crisis grew by more than 70 percent in the third quarter of this year compared with the same period in 2007, according to data released Thursday.

Nationwide, nearly 766,000 homes received at least one foreclosure-related notice from July through September, up 71 percent from a year earlier, said foreclosure listing service RealtyTrac Inc.

By the end of the year, RealtyTrac expects more than a million bank-owned properties to have piled up on the market, representing around a third of all properties for sale in the U.S.

That’s bad news for anyone who lives nearby and wants to sell their home. While foreclosure sales are booming in many areas, those properties are commanding deep discounts and pulling down neighboring property values. "It has a pretty significant impact in terms of pricing," said Rick Sharga, RealtyTrac’s vice president for marketing.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. More than 250,000 properties were repossessed by lenders nationwide in the third quarter, 81,000 of which were taken back last month.

Six states — California, Florida, Arizona, Ohio, Michigan and Nevada — accounted for more than 60 percent of all foreclosure activity in the quarter, with California alone making up more than a quarter of all U.S. foreclosure filings.

Detroit and Atlanta were the only cities outside California, Florida, Nevada and Arizona to make RealtyTrac’s list of the 20 hardest-hit metropolitan areas.

The combination of sinking home values, tighter mortgage lending criteria and an economy that many economists think has already slipped into recession has left hundreds of thousands of homeowners with few options. Many can’t find buyers or owe more than their home is worth and can’t refinance into an affordable loan, with the global credit crisis making loans far less available.

For those who can qualify for a loan, or have cash to invest, there are bargains to be had, especially in ravaged markets like Nevada and California. Last month, foreclosure resales accounted for more than half of existing home sales in California last month, as home sales jumped 65 percent from a year ago, while the statewide median home price fell 34 percent to $283,000, according to MDA DataQuick.

RealtyTrac, however, reported foreclosure filings in September were actually down 12 percent from August. But much of that decline was the result of new state laws that delay the foreclosure process. In California, for example, lenders are now required to contact borrowers at least 30 days before filing a default notice. A similar law in North Carolina gives borrowers an extra 45 days.

Still, that’s not likely to be enough to save homeowners who owe more on their mortgages than their homes are worth. Nearly 12 million of the 52 million Americans with a mortgage — that’s 23 percent of them — are in that position, according to Moody’s Economy.com.

It remains to be seen how much the government’s intervention will stem the housing crisis. Earlier this month, the Federal Housing Administration launched a program that aims to prevent foreclosures by allowing homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan. The bill is projected to help about 400,000 households.

Meanwhile, the Federal Deposit Insurance Corp., which took over Pasadena, Calif.-based IndyMac Bank over the summer, has been aggressively modifying troubled home loans since August in an effort to stave off foreclosures. Congressional Democrats are calling for that approach to be expanded as the Treasury Department buys billions in troubled mortgage debt as part of a $700 billion financial industry bailout.

By Alan Zibel, AP Business Writer

Posted in Uncategorized | No Comments »

Need help with a downpayment?

07/20/2008 – 3:13 pm

Maybe a first time buyer grant would help…here are are few with the contact numbers.

Alameda Downpayment Assistance Program (DAP)	$10,000	(510) 749-5824
Anaheim Home Program (HOME)	$35,000	(714) 765-4340
Anaheim Police Residence Assistance Program (PRAP)	$20,000	(714) 765-4340
Anaheim Second Mortgage Assistance Program (SMAP)	$25,000	(714) 765-4340
Brentwood Police Officer Recruitment Incentive Program (BPOAP)	$28,500	(925) 516-5195
California Gold Taxable MRB Second Mortgage Loan Program (SML)	$25,000	(916) 444-2615
California School Facility Fee Down Payment Assistance Program (DPA)	$25,000	(916) 322-1353
Campbell Deferred Second Loan Program (DSLP)	$50,000	(408) 299-5142
Chico Mortgage Subsidy Program (MSP)	$20,000	(916) 895-4862
Citrus Heights First Time Home Buyer Program (FTHB)	$20,000
Coalinga Downpayment Assistance Program (DAP)	$6,400	(559) 935-1533
Concord First Time Homebuyer Program (FTHB)	$25,000	(925) 671-3325
Costa Mesa Homebuyer Assistance Program (HAP)	$40,000	(714) 754-5692
Culver City Mortgage Assistance Program (MAP)	$60,000	(310) 253-5780
Del Norte/Humboldt Yurok Indian Housing Authority Downpayment Assistance Gift	$40,000	(707) 482-1506
Dinuba Homebuyer Assistance Program (HAP)	$20,000	(559) 591-5900
Dixon Down Payment Assistance Program (DPA)	$40,000	(707) 678-7000
El Cajon 120% First Time Homebuyer Program (FTHB)	$60,000	(619) 441-1768
El Cajon 80% First Time Homebuyers Program (FTHB)	$60,000	(619) 441-1768
El Monte Down Payment Assistance Program (DPAP)	Max 22%	(626) 580-2070
Emeryville First Time Homebuyer Program (FTHP) Moderate Income	$71,025	(510) 596-4316
Fairfield City-Wide In-fill Housing Silent Loan Program (FSLP-2nd)	$50,000	(707) 428-7457
Fairfield City-Wide In-Fill Housing Silent Loan Program (FSLP-3rd)	$50,000	(707) 428-7457
Fremont Adams Ave Home Project Second Mortgage (SM)	$207,926	(510) 494-4520
Fremont First Time Homebuyer Programs (FTHB)	$40,000	(510) 494-4506
Fresno CalHome Mortgage Assistance Program (MAP)	$30,000	(559) 262-4292
Fresno County Downpayment Assistance Program (DAP)	$4,000	(559) 262-4292
Fresno County- Economic Opportunities Commission (FCEOC) Refugee Individual Development Account (IDA)	$6,000	(559) 263-1065
Fresno Downpayment Assistance Program (DAP)	$4,000	(559) 498-4815
Grand Terrace Affordable Housing Program (AHP)	$25,000	(909) 825-3825
Hanford Home Sweet Home Program (Home)	$20,000	(559) 585-2587
Hawthorne First Time Homebuyer Program (FTHP)	$80,000	(310) 970-7086
Hayward First Time Homebuyer Program (FHP)	$11,000	(510) 583-4244
Hesperia First Time Homebuyer Downpayment Assistance Program (DAP) Scott McGookin	$20,000	(760) 947-1907
Imperial First Time Home Buyer Program (FTHB)	$20,000	(760) 355-4373
La Quinta Home Purchase Program (HPP)	$85,000	(714) 541-4585
Lincoln Homebuyer Mortgage Program	$40,000	(800) 995-0431
Livermore Down Payment Assistance (DAP) Deferred Payment Third Loan	$20,000	(925) 373-5699
Livermore Down Payment Assistance Program (DAP) Ten Year Amortization Second Loan	$20,000	(925) 373-5699
Long Beach Housing Development Company Downpayment Assistance Program (DAP)	$10,000	(562) 570-6949
Los Angeles County Home Ownership Program (HOP)	$60,000	(213) 890-7248
Los Angeles County Montebello Housing Development Corporation Calhome FTHB Mortgage Assistance Program (MAP)	$30,000	(323) 722-3955
Madera County Homebuyer Assistance Program (HAP)	$20,000	(559) 675-7821
Manteca City Manteca First Time Home Buyer Assistance Program (DAP)	$30,000	(209) 239-8427
Mendocino County Down Payment Assistance Program (DPAP)	$70,000	(707) 463-5462
Mendocino County Individual Development Empowerment Account Program (IDEA)	$10,000	(707) 462-0522
Mendota First Time Homebuyers Program (FTHP)	$25,000	(559) 655-3291
Merced County First Time Homebuyer Program (FTHP)	$60,000.	(209) 385-7654
Merced First Time First Time Home Buyer Grants Program (FTHB)	$25,000	(209) 385-6863
Modesto Down Payment Assistance Program (DPAP)	$60,000	(209) 577-5310
Monterey County First Time Home Buyers Program (FTHB)	$135,235	(831) 786-1357
Monterey Down Payment Assistance Program (DAP)	$25,000	(831) 646-3728

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California Foreclosures and Distressed Sales

07/15/2008 – 9:35 am

Notice of Trustee Sales

Notice of Defaults

Banked Owned Properties

Posted in Uncategorized | No Comments »

4 Costliest Mistakes Sellers Make

07/14/2008 – 2:40 am

As the real estate market continues its downward spiral with no end in sight, homeowners who must sell now are finding the going tough and getting worse. For those homeowners, committing the most common mistakes are amplified and can cost thousands of dollars. If you find yourself having to sell your home now, it is essential that you avoid these costliest mistakes.

1. Use a discount broker to sell your home.

When the market was going crazy just a few short years ago, selling a home meant putting it into the local MLS and prepare for the frenzy of buyers with multiple offers above list price. The market conditions at the time didn’t require much experience of the Realtor to get top dollar for your home.

That was then, this is now. Discount brokers rely on volume to make up the discounted commissions they charge. That volume doesn’t allow them to provide full services to the seller. Regardless of what they advertise, don’t believe for one second that they will. Their definition of “full service” means putting a sign and lockbox on the property, putting it into MLS, maybe hold an open house and review offers for you. If you consider that “full service”, you’re about to make the first costly mistake.

This market requires experience AND real marketing to get you top dollar for your home. Do some research on discount brokers. What you’ll find is either small 1-2 person operations or larger offices where most of their agents are new to the business with less than 5 years experience. They don’t have the experience or a real marketing system for getting your home sold. 2008 data shows that discount brokers take twice as long to sell your home and get 5% less than a full service broker. Lots of sellers lose thousands of dollars when they choose a discount broker because they’ll save 2% on the commission but net 5% less on the sale. It is totally acceptable to want to save money. But if you do your homework, you’ll realize that hiring discount brokers in this market is “being penny wise, and pound foolish.”

2. Cut the commission.

Just as in mistake number 1, the last real estate boom taught sellers to negotiate down the commissions. In that market, it was hard for Realtors to justify the 6% commission. It led to sellers expecting to pay reduced commissions as evidenced by a huge increase of market share for discount brokers. Once again, that was then, this is now. And now is not the time to be cutting the commission. You want to attract as many buyers as you possibly can. 91% of buyers in 2008 are introduced to the seller by a broker. With lots of inventory and choices available, which home do you think the broker will show their client; the home offering a reduced commission to the broker or a comparable home offering full commissions?

If you want to sell your home for top dollar, you should be increasing the incentive to sell your home, not decrease it. It’s natural to want to save money, but if your house sits for months on the market because there’s little incentive to sell it, how much is that going to cost you?

3. Price it too high.

I don’t care what your reason is. If you overprice a home in this market, prepare for a long and expensive lesson. The only market you can possibly overprice a home and still get it sold is in a rapidly appreciating market. In any other market, it just won’t sell. With so many homes for sale in this market, you’re better off not listing it then overpricing it.

If you have to sell, you’re going to have to bite the bullet and price it right. And don’t buy into the common thinking that you price it high so that you have room to negotiate. That mentality will be your next costliest mistake.

4. Keep it in the family or Sell it yourself.

It’s nice of you to want to help your niece who just got into the business, but underestimating this market and the need for experience is one of the costliest mistakes you can make. Thinking that all agents are the same and don’t see the need to interview and find the best agent with the experience to get your home sell will cost you both time and money.

Trying to sell it yourself falls into this same costly mistake. Thinking you have the knowledge and experience to sell your home in this market will be an expensive lesson.

I can’t emphasize enough how different this market is from a few short years ago. Making any one of these common mistakes in this market will be magnified and when you consider the value of your home, these mistakes amount to thousands of dollars. You wouldn’t consider going to an inexperienced doctor to treat a life threatening illness, or hire your part time nephew who just passed the bar exam to defend you in a big lawsuit. Just like these professionals, experience is everything. Don’t trust your biggest asset you own to someone without that experience. There’s a reason why professionals are paid well. They are entrusted with your most important things in life.

Hope this helps. Until next time, happy home selling.

Elliot Lau

Posted in Lessons, Techniques, buyers, seller's | 1 Comment »

Hawaii Bank REOs

07/11/2008 – 2:09 pm

Just Listed
Address	City	List Price	Trans
3732 Kilauea Ave	Kaimuki	$739,900	$721,809
86-040 Glenmonger St	Waianae	$319,900	$350,000
91-1050 Kauiki St	Ewa Beach	$499,900	$419,215
Hot Buys
Address	City	List Price	Trans
54-177 Kawaeku St	Hauula	$504,900	$725,000
Listed
Address	City	List Price	Trans
1778 Ala Moana Blvd. #1004	Honolulu	$389,900	$560,000
2145 Palolo Ave	Honolulu	$559,000	$623,199
57-120 Lalo Kuilima Way #7B	Kahuku	$269,900	$312,867
84-937 Hanalei St	Waianae	$384,900	$370,563
85-175 Farrington Hwy  C430	Makaha	$92,500	$99,866
211 Kawaihae St #D6	Honolulu	$739,900	$734,400
91-644 Makalea St	Ewa Beach	$469,900	$450,000
57-101 Kuilima Dr 21/170A	Kahuku	$279,000	$310,000
94-315 Paiwa St	Waipahu	$649,900	$624,000
91-496 Makalea St	Ewa Beach	$395,000	$400,000
Not Yet Listed
Address	City
98-729 Moanalua LP #217	Aiea
54-045 Waikulama St	Hauula		$790,380
91-907 Nohoihoewa Pl	Ewa Beach		$444,150
1129 Kokea St. H101	Honolulu		$250,000
92-305 Akaula St	Makakilo		$375,860

Posted in Distressed, Foreclosures, Investing, buyers | 3 Comments »

Important numbers to know.

07/08/2008 – 11:58 am

Buying or selling a home?  A lot of times you need services and don’t know who to contact.  Here is a list of phone numbers that can make this transition a little easier.

1. Hawaiian Telcom 808-643-3456

2. Hawaiian Electric Co Inc. 808-548-7311

3. Board of Water Supply 808-748-5030

4. Oceanic Time Warner Cable 808-643-2100

5. Honolulu Department of Motor Vehicle 808-532-7700

6. Hawaii Drivers License 808-532-7730

7. The Gas Company 808-535-5933 ext 2

8. TheBus Pass Office 808-848-4444

Route Information 808-848-5555

9. Business Registration, Permits, Licenses (DCCA) 808-586-2727

10. Oahu Real Property Tax Assessment Division 808-768-3799

Oahu Real Property Tax Collection (Treasury Dept) 808-768-3980

11. Disabled Parking Permits 808-586-8121

12. Picnic and Camp Permits 808- 523-4527

13. Honolulu C&C Satellite City Hall 808-527-6695

14. Honolulu C&C Municipal Golf Course Reservations 808-296-2000

15. Bulk Item, Green Waste Pickup

Honolulu 808-832-7840

Aiea – Pearl City – Ewa 808-455-9644

Kailua, Kaneohe, Waimanalo 808-262-7298

Koolauloa 808-293-5657

Haleiwa – Waialua – Sunset Beach 808-637-4795

Wahiawa – Mililani 808-621-5241

Waianae: Honokai Hale – Makaha 808-697-1178

16. People’s Open Market 808-522-7088

17. Honolulu C&C Mayor’s Office 808-523-4141

Posted in Lessons, buyers, seller's | No Comments »