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The share of all cash buyers has been on the rise since 2006. Almost one-third of all homebuyers paid with all cash in 2012, and it was more than triple what it was in 2001 when the share was 8.8 percent.

Despite a slight dip from 2011, demand for investment properties and second homes remained strong in 2012. Sixteen percent of all sales went to investors.  For those who purchased an investment property, 83 percent bought it as a rental property and the rest of them bought it as an investment to flip.

Source:  C.A.R. 2012 Annual Housing Market Survey

WARREN BUFFET

Price is what you pay.  Value is what you get.

Real estate is now an attractive asset class because its a way you can short the dollar.  If you take out a 30 year loan today and interest goes down, you can refinance.  If you borrow now and interest goes up, the banks are stuck with it for 30 years.

Three Elements for Smart Home Ownership:

  • Fixed mortgage
  • Affordable payments
  • Long-term hold

HomeServices of America - betting on housing turnaround by buying up brokerages.

KL REALTY GROUP ADVANTAGE

At KL Realty Group, we assist both novice and experienced investors in the acquisition and disposition of residential investment properties.

Purchasing or selling a residential investment property is very different from your primary residence.  Different paramaters and analytics should be used when we discuss and evaluate investment properties.

We will help you identify the primary advantages and disadvantages of different property types such as single family, 2-4 units, and larger residential buildings.

We review and discuss typical investment principles such as key benchmarks, rates, and ratios.

Prepare and explain the C.A.R. Residential Income Property Purchase Agreement and Joint Escrow Instructions (RIPA) and the Commercial Property Purchase Agreement (CPA).

We guide investors on understanding the lender's guidelines and requirements for certain loan programs.

Additonally, we help review the different loans available for residential and commercial properties, including environmental and appraisal issues.

Calculate cap rates, gross rent mutltipliers, set-up sheets, return on investment, vacancies and expenses.  Then analyze and determine the value of the property using the income approach and current market conditions.

We will also discuss the impact of market rent vs actual rent for value analysis.