A Surge in Foreclosure Filings

Just thought that this was interesting and good news for many of us...

A Surge in Foreclosure Filings
http://www.nytimes.com/2007/03/18/realestate/18WCZO.html

AFTER 20 years as a lawyer, David Volman has handled enough divorces to know that many marriages collapse under financial strain. So when his practice, in Shelton, began receiving an unusually large number of divorce cases last summer, Mr. Volman took it as an omen. “Divorces go hand in hand with foreclosures and bankruptcies,” he said.

Real Estate Community

I ran across a site today that I saw in a news article. It's another community site, similar to this, but narrows each user down to state, county, and city and then you can find information and network with those in those specific areas (note to this site's admins, once there are more users). That could be a great enhancement to this site in the future. I think it is geared more towards what would be called real estate "professionals", but should have some useful information for investors as well.

http://activerain.com/action/referrals/kcrealestate
(FYI - I will not get anything besides points on the website if you sign up through this link)

It never seems to stop...

So, if any of you have read my previous blogs, you may remember that after making an offer on a house (for my family to live in), that was being sold as-is, we found out it was in the FEMA flood plain. Well, we eventually got that figured out (refer to previous blog).

Well, three days before the closing, I was looking online for investment properties. I went to the IRS treasury department site for house auctions. I clicked on my state, and my city and there was one property. As I started to scroll down the page, I sarcastically thought "wow, that's interesting..." as I saw the address of the house that I was supposed to be buying. Bid commitments were required by March 17th, but an auction date had not yet been set. Needless to say, I was a bit concerned by this bit of news.

I contacted my realtor, who contacted the seller, who contacted whoever they bought it from, etc. Apparently it had been wholesaled before the seller bought it. The seller thinks that the IRS is wrong and that they don't have redemption rights. Of course the IRS thinks it's theirs. So, as of now, the results are as following:

• Lawyers are having friendly discussions
• We extended our closing 30 days, in hopes that the issue will be resolved.

The IRS is trying to get $20,000 more than we are paying for a minimum bid. Good luck!

Thank God that I came accross this site, somewhat by random.

Apartments as investments

I have been hearing a lot from the Gurus about buying rental properties as one of the best ways to gain long-term wealth. I am very interested, but was wondering a few things. I found one apartment building listed with 18 units. It states that 2 are 1 bedroom and the other 16 are EFF. What is EFF? I found one place online that said it was an EFFiciency unit, but what does that mean? Is it like a studio?

Has anyone purchased both apartments and houses for rent? What are pros/cons of one over the other.
And finally, does anyone have a document that they would like to share that they use to calculate cash flow? I just want to make sure that if I go this route, I'm not forgetting any expenses. i.e.

Gross Monthly Rent: $2,000
Tax: $100
Mortgage: $700.
Etc..
Net Cash Flow: ?????

Thanks

An investment opportunity I have never seen

Hello,
No matter how much this post sounds like an advertisement, believe me it is not. Also know that I will not get anything in return if you visit this site, or choose to do business with the person.

I have a relative who is a very successful real estate investor. His name is Al Lee and I believe that he only invests in rental properties. Recently, I contacted him to get some advice and discuss my plans. One of his websites has an opportunity for investors that I am curious about. Someday I may ask him more details, but I don't want to try to ask too much at once.

Basically, he builds new housing developments, then sells you a house for $119,000 with 20% down. He then turns around and leases it out for you and handles all of the management duties (so you could even be out of state). You receive a rent payment, that is higher than your mortgage payment and you will own the house.
I am wondering if you think it is a good deal and also where do you think he is making his money the most? I believe he is renting to section 8 tenants, so I guess maybe he is getting more from the government, and then paying you less, so that both you and he are having positive cash flows.

The website is: http://buyrenthouse.net/GarReturn.htm

Check it out and please let me know what you think about it. Feel free to help out my family. Who knows, maybe if I do send some business his way, he'll give me a cut!