Thursday, October 29, 2009

Interesting San Jose Condo Complex BPO

Interesting BPO just completed on a 2005 built residential condo complex in San Jose. Of the 13 active and pending in the complex, 11 were short sales and 2 were bank REOs. 12 of them were "in escrow" with the remaining unit taking offers in few days. Prices were in the $450,000 range for new units bought from the developer in 2006, now the base line trading value is between $245,000 - $280,000. The complex has two main issues - even though the units are very luxurious and in a good location - an HOA litigation and a very high rental to owner ratio. These two problems have eliminated most lender financing and relegated buyers to pay all cash. Obviously this then only brings in more investor buyers and keeps the rental/owner percentage the same or even worse. The short sale process seems to be taking hold well and that is a trend that will continue in the overall market as many banks prefer to short sale a property instead of the foreclosure alternative. Sales of approximately 5% of the complex happened this year at these low prices. What is worrisome are the 95% of remaining owners who are significantly under water.

Wednesday, October 28, 2009

REOtrans now handling short sales

Bank of America and GMAC now using REOtrans to process electronically
their short sale offers. This is very beneficial because the paper
process of faxing short sales to banks had dragged out those deals for
months. I've heard over and over about agents (including me) talking to bank short sale departments to verify that they received faxed contracts - only to be told "it takes 5 business days for them to hit the system" or "we have no record of that submittal, please fax again". Now documents can be uploaded to transaction files with verification of receipt. This should speed up the short sale process immensely.

Sent from my iPhone

Monday, October 19, 2009

Short Sale Fourplex San Jose

There is a very well located fourplex in the Cambrian area of San Jose. Fully occupied, 2 bedroom, 1 bath units, each renting for $1,300. The building is offered at $699,000 and depending on bank short sale approval, may be delivered at a much better price. Contact us for our pricing and analysis guidance.

Wednesday, October 14, 2009

Sunnyvale Bank Owned REO Fourplex

Very good deal in Sunnyvale for three 2-bedroom units and one 1-bedroom unit on Ayala. FNMA owned building which allows for 10% down non-owner occupied financing. 3,000 square foot property on a 7,840 square foot lot near north Sunnyvale. This is a good deal with very decent upside in a strong rental market. Offered at $725,500.

Wednesday, October 7, 2009

2 Great East Oakland Apartment Building Deals

18 units, built in 1990 with no rent control in the Golf Links area. 20,742 sqft with gated underground parking. $2,200,000. *** 9.11 GRM***

19 units, built in 1990 also no rent control, virtually next door to the above 18 units. 20,742 square feet, *** 8.96 GRM ***

Excellent way to pick up 18, 19 or 37 units in a strong rental market.

These properties are priced very well and will move fast.