Investors

Investment Vehicles and Opportunities

Your definition of investment might be a good deal on a foreclosed condo by the beach. It could also be a $25M pool of delinquent commercial notes. We can help with both, and everything else in between.

Voak Homes is part of Weichert Realtors Elite, the largest broker of foreclosed homes in San Diego and Maricopa Counties. With our constantly refreshing inventory of bank owned homes, we are bound to have something you are looking for.

On a larger scale, we work with clients and successfully obtain tapes of bulk REO and delinquent notes. Investment in these tapes requires a minimum of $5M, but we often have inventory obtained at 50% of value that our investors want to turn quickly which is where you may benefit.

Contact us now at 888-311-6311 or email Scott directly at Scott@VoakHomes.com to set up a meeting where we can discuss your needs.

Small Investment Opportunity

Last modified on 2010-06-18 23:37:58 GMT. 0 comments. Top.

Front of Condo

Fallbrook Short Sale condo

For those of you looking for a small real estate investment, try this one:

2 Bedroom (dual master) condo on Gird Rd that sold in June of 2005 for $355,000 owner then re-did the kitchen with granite counters and new appliances.
Will rent for $1,300 – $1,400 – the rear entrance to Camp Pendleton is nearby.
HOA is $200/mo and there are no Mello-Roos.
It is a short sale and I think I can get it approved between $170k and $180k.
With 25% down, it looks like worse case it is break even cash flow and best case it is a 4% return on invested cash

No, it’s not the perfect unit. Yes, there is road noise. No, you are not going to want to retire into it.

It’s an investment. With cash flow. And upside.

Kitchen

So, if you are looking for an investment in San Diego that you can get with 25% down as a small investor and get it for about 50% of the price paid in 2005 (with a kitchen re-model thrown in since then), give me a call.

February San Diego Sales Numbers

Last modified on 2010-03-07 23:11:10 GMT. 0 comments. Top.

February San Diego Home Sales

Looking at February sales numbers, there were 2059 homes sold (includes all types and relies on the hope that agents have listed homes sold as “sold” in mls). This is an 8% reduction from last year and combined with January’s 10% reduction, puts us about 400 homes behind last year at this time. The trend is likely to continue, as there are also fewer homes in escrow than there were last year.
The slower pace of sales is more than offset by the lower number of listings (37%) than we had at this time last year. This makes sense as inventory really started to dive last year in April as the banks were actively holding off the foreclosure process. Inventory was down at the end of February compared to the end of January by about 5% (550 homes), but there is already an additional 400 homes on the market on the 6th of March.
The graph below shows the last 6 years activity (I’m going to have to go to a quarterly graph soon)

Graph of San Diego Home Sales Activity from 2004

San Diego Home Sales (MLS)

A couple of interesting points to see when it is graphed out like this:

Sales volume (demand) has remained fairly consistent since late 2006 with the exception of the specific issues we had in the mortage markets in September of 07 and November of 08.
The increase in March 09 was when the Fed started purchasing mortgages (which is supposed to end this month).
The drop in sales in January (last month) can be attributed to two factors: First, there were a lot of closing in October and November as people were trying to beat the expected expiration of the tax credit (which is now been pushed to April contract/June close). Second, new mortgage rules have stretched out closings past the normal 30 days. You can see this in the fact that at the same time closings have fallen, homes in escrow increased – the activity is there, the government just put a kink in the hose with all the new regulations. I expect we will see a strong March in terms of closings as these homes work their way through escrow.

An interesting chart to look at takes a look at inventory levels over the last several years. For the chart below, I am measuring inventory of San Diego homes differently than others do. I am including all homes that are Active on the market, plus those that are Pending and Contingent. The reason for this is twofold: The Contingent designation is relatively new. In the past, these homes might have been included in Active or Pending, so there would be errors either before or after the Contingent designation was created if I did not capture all the activity. Also, there are buyers with offers on multiple shortsale homes and they aren’t going to close on more than one of them. Showing all the homes that are available and in some stage of closing vs those that close each month helps mitigate this factor.

San Diego Home Sales - Inventory Levels

Note: Inventory is calculated using a 12 month average of sales.

At first look, the graph doesn’t provide much interesting information. But when you look at the % change in inventory, you can see that it started to rise in the second half of last year. While this is akin to saying “things are getting better because we are losing fewer jobs every month,” it is a start of a change. It shows that inventory is reaching an equilibrium on its own and the creates the possibilty that when the stimulus and tax credit expire, we may see inventory start to climb on its own – with or without the banks releaseing foreclosures.