Like a perfect storm the late 2008 price decline accelerated into 2009 with a force few predicted. But as quickly as prices fell, investors have flown into Hemet in droves and have picked up cheap properties at well below the ask. Within the past month, the average REO property entering the market attracts multiple bids above the ask, thus, stabilizing the prices somewhat. They are still cheap, but not dirt cheap anymore. Also, with the federal government's new program introduced last week, banks are finally going to have to work it out with borrowers. This has reduced the amount of REO inventory in the market. Foreclosure is no longer an option. Short sales and loan modifications are going to increase as federal funding begin to enable banks to stay up with the mountain of paperwork. More jobs for pencil pushers and more stability in the housing market.
So what's an investor to do? Be glad that sanity is coming back. Cash is still king and capital is scarce. If you have cash you can still buy low and cash flow! Plus we can maximize cash flow and minimize risk of holding rental properties by using Lease Purchase instead of just renting to dead beat tenants. Target the homeowners in Hemet, get them to short sale, and offer them a second chance through a lease purchase. Face it, loan modifications are for folks who have income and are not significantly under water. For folks in Hemet, short selling, saving their cash for 6 months and then locking into a lease purchase on a similar property is the best solution. For investors, we can sleep at night knowing our lease purchase buyers have skin in the game and were once hardworking homeowners who now have a chance to gain true equity in the home. Plus you are doing the people of Hemet a lot of good by giving them hope for the future by not renting your properties to questionable types who may give you more headaches than cash! If you want more information, go to my website: www.HemetPropertyVentures.com
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