Seeking Investors for Financial Backing to Purchase Discounted Real Estate

I am seeking investors to either partner with me or to provide short term financing on real estate.  The government is not offering much if any return if you buy its Treasuries.  The banks are not offering much on their money market accounts.  I will guarantee a healthy interest rate and your money will be backed by the real estate which is very secure.

I am coming across all kinds of distress sales, short sales, and foreclosures that might be able to be purchased for 60-80 cents on the dollar.  By buying the homes so far under market value, your investment will be protected.

My area of focus is the western suburbs including the following cities:

  • Medina
  • Plymouth
  • Maple Grove
  • Wayzata
  • Orono
  • Corcoran
  • St. Louis Park
  • Golden Valley
  • Hopkins
  • Minnetonka
  • Edina
  • Eden Prairie
  • Lake Minnetonka Area

Contact me if you’d like to discuss this further.

If you’re interested in doing your own investing and would like to be on my distribution list for potential properties, please let me know.

Builder Foreclosures in the Twin Cities

New construction foreclosures, REOs, short sales and distressed sales from Twin Cities builders in the western suburbs.
From $500,000.
FREE List with photos and descriptions.

www.BuilderForeclosuresMSP.com

Banks changed their strategy.
10 Things You Need to Know Now Before Buying a Bank Foreclosure.
FREE special report.

www.HowToBuyTwinCitiesForeclosures.com

Foreclosure
New Construction

Luxury Homes

November Existing and New Construction Home Sales Data

Calculated Risk did his usual terrific job breaking down the latest data for both the November existing home sales report as well as the new home sales (i.e. new construction).

The one point I would disagree with him is his way he discounts REO (bank owned) sales.  Those are real sales.  Buyers are just choosing to pursue those first right now because they are so often such a great deal.  If we didn’t have REOs in the market, overall home sales would certainly be slower, but buyers would then end up buying more new construction or striking deals with tradition, normal sellers – not the banks.

St. Anne’s Catholic Church, Hamel, MN – Christmas Mass Schedule

St. Anne’s in Uptown Hamel (Medina, MN) will have four masses for Christmas.  They are as follows:

Christmas Eve: 4pm and 8pm

Christmas Day: 8am and 10am

St. Anne's Uptown Hamel, Medina, MN

Minnesota Continues to Lose Ground on Population – US Census Bureau

The latest population statistics were just published from the US Census Bureau and they don’t paint a great picture for Minnesota’s growth.  Yes, some 38,000 more people live in the state now than they did a year ago, but we are slipping behind the growth rates of many other states across the country.

At 5,220,393 people, Minnesota ranks 21 in overall state population but with growth of .7% over the past year, we rank 29 in overall growth.

Tom Gillaspy, State of Minnesota Demographer, published this press release yesterday about the results.  He further stated:

The growth in Minnesota is due largely to an increase in the number of births. Between July 2007 and July 2008, Minnesota recorded 73,657 births and 37,959 deaths for a natural increase of 35,698. Another factor in Minnesota’s growth has been migration from abroad. During the past year,

Minnesota had a net loss of 7,136 residents to other states, which was offset by international migration to Minnesota of 9,403.

I think it would be very interesting to see the demographics on those who left versus those who arrived.  My guess would be we lost some high paid citizens and gained more dependents on the government.
The natural tendency for people is to move to the south and the west, particularly as they get older.  Given the lovely weather we have here in Minnesota this winter, it’s not hard to see why they would do that.

Minnesota’s population is aging very rapidly and I’m afraid we are in for a radical change in our society and culture here if we don’t figure out how to dramatically attract younger workers and encourage young families to have children.

The culture here is geared towards heavy government regulation, is anti-business, and is mostly focused on just taking care of those who are here today.  It seems to me there is little emphasis on growth in the future.

Minnesota has the opportunity to be the absolute standout state in the Midwest.  There are great people here.  Smart people…ambitious people and we need to create a culture that blows away every other state in the Midwest.  We should have businesses clamoring to relocate here but we don’t.   Yes, there remain many wonderful things about the Twin Cities…the arts, entertainment, sports, parks, lakes, successful businesses, decent housing prices and housing stock, the environment, clean air, etc., but we cannot rest on this.  The growth of government and regulations is going to choke the life out of this state.

People and businesses have to have a reason to move to this state.  It’s not going to be because of the weather.  The incentives must be significant to overcome to lousy weather here.  We can start by establishing a business friendly environment.

If we don’t the state will continue to suffer with slow growth, higher unemployment and the productive highest paying citizens leaving for warmer climes that are more business and tax friendly.

It’s unclear if Minnesota will lose a Congressional seat based upon this latest data.  WCCO’s Don Shelby reported on December 1, 2008 that Minnesota may well lose a Congressional seat.  According to the Iowa Independent, the states that are losing a Congressional seat are:

  • Iowa
  • New York
  • Louisiana
  • Massachusetts
  • Michigan
  • New Jersey
  • Ohio
  • Pennsylvania

If we want to make this list 10 years from now, we just have to keep doing what we’re doing and Minnesota will continue to slip behind the other states in the U.S.

Wells Fargo on Short Sales and Underwater Mortgages- Commentary by Cara Heiden, Co-President Wells Fargo Home Mortgage

Cara Heiden, Co-President Wells Fargo Home Mortgage, wrote this commentary piece in this month’s REALTOR(R) Magazine.  It’s written to help real estate practitioners help clients through the short sale process, but it’s insightful for all to read who might be considering either selling short or purchasing a short sale property.

I’ll have an update on short sales today or tomorrow.

Short Sale

Distress Sale

Plymouth Homes Are 10% Cheaper Now Due to Interest Rate Reductions

With the Federal Reserve’s aggressive action on interest rates, mortgage rates have fallen to under 5% for a 30 year conventional loan (under $417,000) for well qualified buyers with good credit.  Here’s a link to live rates.

I ran some numbers based upon various mortgage rates.  A few months ago, rates were in the 6-6.25% range.  Now they can be had for under 5%.  For the sake of this example, let’s look at values based upon interest rates of 6.25% vs. 5.25%.

While overall asking prices and sold prices are critical, part of the way we get to those numbers is can buyers afford the monthly payments.   With rates dropping from 6.25% to 5.25% buyers’ affordability just jumped by 8.8%.  Given that the present rate decline is greater than the 1% decline I’m using in this example, buyers can now afford 10%+ more than they could just a few months ago.  In essence, without even changing the price on a home, it just became 10% cheaper.

Scenarios based upon a $300,000 home with a $250,000 mortgage.  Taxes will be priced in at 1.25%.  That could certainly vary depending upon your city and county.

Monthly payments at 6.25% = $1,799.71

Monthly payments at 5.25% = $1,640.93

Difference in monthly payments = $158.78  or 8.8%

To run your own scenarios, check out this mortgage calculator.  I will also add the calculator to my links on the right if you’re looking for it in the future.

Median Sales Prices Across the U.S.

I found this report on the National Association of Realtors web site.  It shows median sales price data existing homes for hundreds of metro areas across the U.S.  It shows that the median sales price in the Twin Cities is down 10.7% comparing Q308 vs. Q307.

Where Home Prices Increased the Most in 2008 According to Zillow.com

This information was published in Realtor Magazine based upon an analysis by Zillow.

Areas of the U.S. that saw home prices increase the most in 2008:

  • Ithaca, N.Y., 5.6%
  • State College, Pa., 4%
  • Jacksonville, N.C., 3.9%
  • Winston-Salem, N.C., 3.4%
  • Bay City, Mi., 3.2%
  • Rochester, N.Y. 3.1%
  • Greenville, S. C., 2.8%
  • Anderson, S.C. 2.7%
  • Burlington, N.C., 2.6%
  • Spartanburg, S.C., 2.0%

Areas that saw the biggest decrease in home prices:

  • Las Vegas-Paradise, Nev., -24.6%
  • Bakersfield, Calif., -24.9%
  • Madera, Calif., -26.2%
  • Gainesville, Ga., -26.4%
  • Riverside-San Bernardino-Ontario, Calif., -30.4%
  • Modesto, Calif., -31%
  • Salinas, Calif., -32.4%
  • Merced, Calif., -32.5%
  • Vallejo-Fairfield, Calif., -33.2%
  • Stockton, Calif., -35.5%

Minnesota Foreclosure Rate Slows 2008 According to Housing Link and Pioneer Press

The Pioneer Press published this story this morning with data from HousingLink.org outlining the trends in the number of foreclosures in Minnesota.  The growth rate in foreclosures is expected to slow in 2008 to 39% growth over 2007.    That’s down from a growth rate of 84% for 2007 over 2006 but that was when the foreclosure trend was in its infancy.

Hennepin County still leads the way in foreclosures in the Twin Cities accounting for 45% of all foreclosures in the Twin Cities in 2008 according to HouseLink’s projected analysis found in this excellent report which was published in April 2008.  (I hope they reproduce a second version soon).  Hennepin County is expected to have nearly 8,900 foreclosures out of the projected 20,000 this year in the Twin Cities.

While the growth may be slowing, as well it should, the foreclosures will continue to move out to the suburbs where we’re seeing a significant increase in distress sales and foreclosures.  I would expect next year’s overall number to continue to grow but the overall rate will continue to slow.  I mean, how many more homes can really be foreclosed on in Minneapolis?  If anyone has the specifics for the foreclosure trends in Minneapolis for 2006-2008, it would be interesting to see and publish them.

Foreclosure