Time to buy REO's

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How to take advantage of investing in distressed real estate without breaking your back or your bank.
Today's real estate market is at or near the bottom in many markets around the country. What was hot, was not for about 2 years. But what was hot appears to be getting hot again Take a look.

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  • Credit Suisse Report:Record high 9.12% delinquency rate (SAAR) for mortgage loans on 1-4unit residential properties in Q1’09, up 124bps QoQ, up 277bps YoYRecord high 3.85% loans in foreclosure process at end of Q1’09, up record high 55bps QoQ and up 138bps YoY (For CA, this number is 5.2%)MBAA: Median home prices for new and existing homes are expected to continue their decline this year, falling about five percent.  Prices should remain flat in 2010.RealtryTrac:Foreclosuresivity includes: Pre-foreclosures, Auctions, and REOsHousing Peak median prices:. Foreclosure activating is total number of properties that receive foreclosure filings - default notice, foreclosure auction notice, or bank repossession . Approx 3m foreclosures in 2008
  • Purchase originations should fall this year by about three percent to $847 billion from an estimated $871 billion in 2008 and should rise about eight percent in 2010, as both new and existing home sales rebound and home prices stabilize. MBAAA projected $847b in loans will be originated for home purchases in 20091Only 2.5 months of unsold inventory (Houses < $300k)1Record High Affordability: 72% of households can afford to purchase a home A projected 4.25mm single family homes will be sold in 20092 Gallup Poll Survey: 71% of participants say it is good time to buy 29% of transactions are first time home buyers 3. A projected $737b loans will be originated for home purchases in 2009, & $854b in 2008 June 22, 2009 . 4.9mm in existing home sales in 2008, Projected 4.7mm in 2009 . NAR: http://www.realtor.org/press_room/news_releases/2009/07/record_fourth Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®. The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004 Trending up despite stricter lending standards
  • Purchase originations should fall this year by about three percent to $847 billion from an estimated $871 billion in 2008 and should rise about eight percent in 2010, as both new and existing home sales rebound and home prices stabilize. MBAAA projected $847b in loans will be originated for home purchases in 20091Only 2.5 months of unsold inventory (Houses < $300k)1Record High Affordability: 72% of households can afford to purchase a home A projected 4.25mm single family homes will be sold in 20092 Gallup Poll Survey: 71% of participants say it is good time to buy 29% of transactions are first time home buyers 3. A projected $737b loans will be originated for home purchases in 2009, & $854b in 2008 June 22, 2009 . 4.9mm in existing home sales in 2008, Projected 4.7mm in 2009 . NAR: http://www.realtor.org/press_room/news_releases/2009/07/record_fourth Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®. The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004 Trending up despite stricter lending standards
  • Time to buy REO's

    1. 1. Distressed Asset<br />Transformations<br />Assess<br />Acquire<br />Repair<br />Resell<br />Return Capital<br />October 2009<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    2. 2. Invest in Distressed Property, with less of the stress<br />RealAscent will perform all 5 steps.<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    3. 3. Sacramento, CA<br />Median Home Price:<br />2006: $375k <br />2009: $170k<br />% Change: -55%<br />Foreclosures: 2,546<br />San Bernardino, CA<br />Median Home Price:<br />2006: $400k <br />2009: $173k<br />% Change: -57%<br />Foreclosures: 8,429<br />Las Vegas, NV<br />Median Home Price:<br />2006: $317k <br />2009: $155k<br />% Change: -57%<br />Foreclosures: 10,545<br />Phoenix, AZ<br />2006: $268k <br />2009: $129k<br />% Change: -52%<br />Foreclosures: 4,432<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    4. 4. Why Now? What’s Driving the Real Estate Engine?<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    5. 5. Supply and Demand<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    6. 6. Pricing and return estimates are for sample purposes only and subject to change in each individual investment. The analysis above does not represent a guarantee of actual investment returns.<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    7. 7. 559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    8. 8. The Capital Investor<br />Out of Pocket<br />Back in Pocket<br />50% of the net profit per transaction<br />RealAscent won’t divide or distribute any profits, unless the investor can secure a preferred return up to 9% per annum<br />Commitment of capital – 1 house at a time<br />Capital Investment Includes:<br />Acquisition<br />Fixed Repair Costs<br />Carrying Costs <br />Insurance, maint., etc…<br />Operating Costs<br />Inspections, appraisals, utilities<br />Secured with a note against the actual Real Estate Property<br />We don’t get paid until you make a preferred return.<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />
    9. 9. RealAscentllc.<br />559-334-3120 (office) | info@RealAscent.com | www.RealAscent.com | www.RealAscentProperties.com <br />

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