The National Association of Realtors estimates that as many as 180,000 homebuyers have qualified for the tax credit and met the contract deadline of April 30, 2010, but might not be able to close their transaction by the June 30, 2010 deadline due to the sheer volume of loan applications in the pipeline.

At this point many homes are selling quickly in Santa Clara County, but this should help to create some more momentum in the industry and get some loans closed.

Leave some comments and tell me about reactions you have received from naysayers after you rehab’d a property and showed people the beautiful after effects of a rehab.

So, are real estate investors “vultures” who purchase properties at a deep discount, only to rehab them and rent/sell for profit. Hit me up with your thoughts.

Rents were in decline in every market nationwide in the current quarter
with the exception of a few modest increases in Tampa-St Petersburg, FL at
1.2%; Kansas City, MO at 0.7% and San Antonio, TX at 0.6%. On average,
asking rents are down nationwide in the second quarter of 2009 from
$968/mo.over first quarter at $978/mo. The markets that were hit the
hardest this quarter are high-end markets such as those found in the
Golden State. The San Francisco Bay Area, usually ranked as the most
expensive place to live in the country lost some of its luster this
quarter. The current quarter’s decline comes upon the heels of similar
losses sustained in 1Q09.

The San Jose MSA posted the greatest decline for the current quarter at
-3.8%, followed by San Francisco at -2.7% and Austin, Texas at -2.4%.
Other struggling markets are Oxnard-Thousand Oaks at -1.8%; Riverside-San
Bernardino, CA at -1.8% and Los Angeles at -1.6%. With the exception of
Austin, TX what these markets have in common is that they are located in
California and their average rental rates are over $1,000.00/mo.
The RealFacts survey demonstrates the effects of higher than average
unemployment statistics in the state of California. According to a May
2009 survey released by the EDD, California’s unemployment now stands at
11.5%, compared to the National average of 9.4%. The San Francisco
Business Times reported that the San Francisco Bay Area has lost 130,000
jobs from May 2008 to May 2009. Companies such as Yahoo! Inc.,
headquartered in Silicon Valley have had to make cuts of about 10% of its
regular staffers.

On the brighter side of the rental markets are the current occupancy
rates. The rate at which occupancy has been declining in the past two
quarters has slowed down in the second quarter of 2009. This suggests that
asking rents are beginning to reflect what the market can bear. For
example, in Oxnard California, the average rent went from $1551/mo. down
to $1,473/mo. But the occupancy rate actually increased by nearly 1.0% in
this same quarter. Other markets that posted positive absorption this
quarter were Orlando, FL, 0.6%, San Francisco, 0.4% and San Jose at 0.3%.
All other markets were down. The highest drop in occupancy for the quarter
was found in Boise, ID at -3.2%, Oaklahoma City, OK at -2.1% and
Indianapolis, IN at -1.4%.

It’s seems today’s renter is looking for a bargain. There aren’t enough
high income renters with good credit to commit to premium rents prevalent
in high-end markets. Many renters have been forced out of high markets due
to lack of employment opportunities or sufficient income. In some cases
these renters decide to move to a location where housing is less expensive
and where they can rent the same quality apartment unit for less than half
the price.

Source: Real Facts

Give me your thoughts.

This just in from Bill Bronchick, Real Estate Investor and Attorney.

From: Bill Bronchick <reply@legalwiz. com>
Date: 11 June 2009 18:33:35 BST
Subject: The truth on House Bill 1787
From: Bill Bronchick

Re: The truth on House Bill 1787

I’ve received a number of emails from people claiming that House
Bill 1787 will eliminate owner financed deals to once every 36 months.

This is patently FALSE.

Become an informed citizen and read it yourself:

http://www.govtrack .us/congress/ bill.xpd? bill=h111- 1728

This bill aims to include owner financed deals within the definition
of “Truth in Lending” law. I’ve always instructed in my courses and
seminars that you should comply with Truth in Lending, which
requires just a few simple disclosures.

The bill also would, in theory, make a person who sells a home a
“mortgage originator”. This would require compliance with RESPA,
which I’ve always instructed in my courses and seminars that you
should comply with anyway.

Finally, the bill would require that you actually qualify your
buyer. It prohibits, “lending without due regard of the mortgagor’s
ability to repay”. Duh! Only a fool would put someone in an owner
financed house deal without checking their income, debt and credit.

All in all, there’s nothing to worry about here for investors, it’s
just a matter of compliance with some federal rules and a couple of
disclosures.

Any comments or questions are welcome.

Your partner in success,

Bill Bronchick, Esq.

so hit us up with some comments and let us know what you think.

Oh, our next Real Estate Free Seminar starts again second Wednesday

of the month

Sign up to be notified

at

http://www.RealEstateGranite.com/meeting.html

Yous in Success !

Why? Buy low and sell high is how you succeed in real estate.

Don’t follow the pack that is running away from real estate.

WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama’s recovery plan.

The tax break was adopted without dissent, and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider scaling back spending.

“Let’s not make the perfect the enemy of the essential,” Obama said as Senate Republicans stepped up their criticism of the bill’s spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly “will turn crisis into a catastrophe and guarantee a longer recession.”

Democratic leaders have pledged to have legislation ready for Obama’s signature by the end of next week, and they concede privately they will have to accept some spending reductions along the way.

Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only.

Isakson’s office said the proposal would cost the government an estimated $19 billion.

Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

“This bill needs to be cut down,” Republican Mitch McConnell of Kentucky said on the Senate floor. He cited $524 million for a State Department program that he said envisions creating 388 jobs. “That comes to $1.35 million per job,” he added.

Republicans readied numerous attempts to reduce the cost of the $900 billion measure, which includes tax cuts and new spending designed to ignite recovery from the worst economic crisis since the Great Depression.

But after days of absorbing rhetorical attacks, Obama and Senate Democrats mounted a counteroffensive against Republicans who say tax cuts alone can cure the economy.

Obama said the criticisms he has heard “echo the very same failed economic theories that led us into this crisis in the first place, the notion that tax cuts alone will solve all our problems.”

“I reject those theories and so did the American people when they went to the polls in November and voted resoundingly for change,” said the president, who was elected with an Electoral College landslide last fall and enjoys high public approval ratings at the outset of his term.

Obama did not mention any Republicans by name, and most have signaled their support for varying amounts of new spending.

Even so, the president repeated his retort word for word in late afternoon, yet softened the partisan impact of his comments by meeting at the White House with senators often willing to cross party lines.

His first visitor was Sen. Olympia Snowe, R-Maine, a moderate GOP lawmaker. Later he met with Sens. Susan Collins, R-Maine, and Ben Nelson, D-Neb.

“I gave him a list of provisions” for possible deletion from the bill, Collins told reporters outside the White House. Among them were $8 billion to upgrade facilities and information technology at the State Department and funds for combatting a possible outbreak of pandemic flu and promoting cyber-security. The latter two items, she said, are “near and dear to her,” but belong in routine legislation and not an economic stimulus measure.

Collins and Nelson have been working on a list of possible spending cuts totaling roughly $50 billion, although they have yet to make details public.

The House approved its own version of the stimulus bill last week on a party line vote, but the political environment in the Senate is far different.

Democrats hold a comfortable 58-41 majority. But because the legislation would increase the federal deficit, any lawmaker can insist that 60 votes be required to add to its cost.

While the 60-vote threshold can impose a check on Democrats, it can also illuminate the cross-pressures at work on Republicans.

A Democratic attempt on Tuesday to add $25 billion for public works projects failed when it gained only 58 votes, two short of the total needed. But a few hours later, a proposed $11 billion tax break for new car buyers attracted 72 votes, including several from Republicans.

___

Associated Press writers Jennifer Loven and Andrew Taylor contributed to this story.

(This version CORRECTS the estimated cost of the homebuyer tax break to $19 billion, not $19 million.)

Copyright © 2009 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following: 1. Second stream of income: When you move to another place and keep your current house as a rental, this gives you an extra stream of income. 2. Pay less tax: Your rental property produces business income. When you have a business, you are entitled to tax write-offs.

1. Second stream of income: When you move to another place and keep your current house as a rental, this gives you an extra stream of income.

2. Pay less tax: Your rental property produces business income. When you have a business, you are entitled to tax write-offs. This could save you a lot of money that you would normally pay to CCRA (Revenue Canada).

3. Fast wealth: Tenants will pay off your mortgage in a rental property. Your net-worth will grow without you having to save out of your own income. When you have one or more tenants there is a team effort in building your wealth, fast!

4. Bargain priced: You will never again be able to buy the same type of property for the amount you paid for it originally. The value of all the other houses have gone up along with yours. You already own what an investor would consider a bargain in the current market.

5. High rate of return: The rent you can charge for your house is based on the current market. Rents have gone up but the cost of your house is still what you originally paid for it. You are getting a higher return on investment. In the current market you would have to spend a lot more to get the same rental income.

6. Guaranteed income: If you are willing to make some small changes to your house so it meets the standards required for disabled people, you will have a long list of potential tenants waiting for you. In many cases, some government agency will be paying their rent. You will get a good, stable, low-maintenance tenant. You will also be helping someone in need. If you need money for the renovations, you can re-finance as much as 90% to 100% of the market value of your house. Government grants may also be available.

7. Increased tax write-offs: In most cases, you can write off the interest paid on the mortgage of a rental property. If you keep the mortgage as high as possible, you maximize the tax write-offs.

8. Pay off your own home faster: Keep the mortgage on the rental property as high as possible by re-financing to the max as the value goes up. Use that equity to pay off the home you live in, faster.

9. Tax-free retirement income: After your house is paid off quickly by using the equity in the rental property, you may be able to use the refinanced cash as a tax-free retirement income. Borrowed money may or may not be taxable. Check with your accountant.

10. Gain freedom from the slavery of a J.O.B.: It takes far less time to maintain rental properties than the amount of time you would spend in a job. If you build up your portfolio of rental properties to 5 or 10 and pay them off (or keep refinancing), you will have as much or more income than your present job. You can be your own boss, work only a few hours, spend time with your family, and really enjoy your life.

These strategies will not work for everyone. Before you implement your plans, check with an accountant, lawyer, mortgage broker or other professional. You may need to work with someone. Use your children, parents, brothers, sisters, good friends as a co-signer or co-investor. Grow wealthy together, with the people you love.