Almost one third of home sale transactions in the U.S. last year have been all-cash, according to an article in the Wall Street Journal.  Which might explain why mortgage applications have been down, as all-cash transactions completely bypass the mortgage process.

The Journal reports that more and more homebuyers are selling other investments to pay cash for real estate.

"Lending is very tight, so we are seeing people who can't qualify for loans but are invested in the market, cash out (and buy a home)." says Mitra Kalita of WSJ. "You are starting to see people who may have been on the sidelines, now taking the plunge."

For the real estate market to rebound, however, we need to see lending requirements loosen so that first time home buyers can bring vitality to the economy.  Most of the cash buyers are baby boomers looking for a retirement home and taking advantage of markets that have been hardest hit.

Read the full article at WSJ.

photo credit: wallyg

Posted in Real Estate Investing, Real Estate Market Conditions

Real Estate Investment Trust (REIT) companies will be investing in more 100k+ single family homes in 2012.

"For the first time you will see billions of dollars coming in from publicly traded and non-publicly traded REIT's into single family homes." predicts Greg Rand, CEO of OwnAmerica.com. "It's the most significant trend in residential real estate for 2012."

A Real Estate Investment Trust company uses pooled money from investors to invest in real estate.  Usually REIT's invest in commercial real estate and multifamily projects but, in today's market, the demand for rentals is going up along with rents and apartment complex values. Single family homes are a better value plus they are more "liquid" in terms of being able to sell them easier than a huge apartment complex.

"REIT's have been in existence for decades, and there are exactly none that are invested in the single family home sector." explains Rand.   But the industry is all abuzz with this new trend.  "The main things holding REITs back are (a) some laws and regulations that need to be ironed out, and (b) a field operation that can select, acquire, rehab, lease and manage the portfolio."

Rand predicts that real estate companies and individual agents who ready themselves for this next trend will see their business grow dramatically in the next few years as the competition among residential REITs heats up.  

"This is bigger than new construction. Bigger than corporate relo. Bigger even than distressed property. This is billions in transaction volume. Do you think it is worth preparing for? If you are reading this in January 2012 and take action, you are ahead of the curve." says Rand.

Read Rand's blog at OwnAmerica.com.

Watch Rand on Fox Business News

photo credit: Jonathan D. Blundell

Posted in Real Estate Investing, Real Estate Industry Trends

Looking for a vacation home while the prices are low?  Lifestyle Asset Group, a Ft. Collins Colorado based company is selling luxury vacation home ownership at a small investment.

The business model offers investors a one-eighth ownership in twelve $1 million dollar homes in locations such as Napa Valley, NYC, Chicago, Florida, Mexico, Turks and Caicos and the Dominican Republic. 

Investors must make a $10k fully refundable deposit to guarantee membership and then members pay a capital contribution of $300k.  The first property group will close on February 28^th, 2012. Annually, members can expect to pay $24,000 for expenses.

Rich Keith, CEO of Lifestyle Asset Group was the founder of another once-thriving luxury vacation club that ultimately ended in bankruptcy in 2010 after struggling with huge debt.

"What we learned," said Keith in an interview with Fox Business News," is that you cannot have bank debt in the luxury market." The members will be part of an LLC and will own the properties free and clear.

In seven years, the inventory of homes will be sold and assets will be divided, as stipulated in the LLC contract.  Seven years was chosen because it is the average length of time most people maintain a club membership and is also the amount of time it takes to fully emerge from an economic downturn.

Timing for a new vacation ownership model and for picking up luxury properties in a still-cool real estate market couldn't be better, says Keith in an article in the Northern Colorado Business Report.  He said the club intends to eventually sign up 200 members to own 24 luxury properties.

Watch the full interview at Fox Business News

photo credit: Carlanne McCrystal

Posted in Headlines, Real Estate Investing

According to Fox News, the top city for investing and making money in the housing market is Denver Colorado.

Greg Rand, CEO of OwnAmerica.com spoke with Fox Business News on how to invest in the economic and housing growth of Denver.

People are moving to Denver from all over the country," says Rand, "The average age is 31 years old, so the population is young, stable and the future looks good in the long term."

The unemployment rate in Denver at 7.9 percent is lower than the national average and the foreclosure rate, according to Rand, is half the national average.

"It comes down to the lifestyle," says Rand, "low cost of living, high quality of life, and a love of the outdoors."

Denver is also home to 9 Fortune 500 companies, offering great job opportunities and the median home price is only $244,100.  Looking at housing prices for Denver in the last 15 years; "we didn't see a full housing collapse in the Denver market," says Rand, "we see a correction, but it bounced back again."

Watch the full video at Fox Business News.

Image Source: Denver.org

Posted in Real Estate Investing, Real Estate Industry, National News

Sunset Magazine lists the West's top ski destinations, featuring 3 Colorado ski areas named in the top 10 categories.

The Top Honors go to:

Steamboat Springs, CO for most Old West Charm, where cowboys mingle with fur clad skiers on the main street in town.  They also give a nod to the 1905 F.M. Light & Sons to do a little shopping and look like a local.

The Prettiest Ski Town goes to Telluride, CO.  "Nestled in a box canyon, the perfectly preserved Western town is dwarfed by 13,000 foot peaks and Bridal Veil Falls, Colorado's tallest free-falling waterfall." says the article.

Crested Butte, CO is the most charming ski town according to Sunset.  "Mix boho with Victorian and you've got C.B.'s funky Historic District main street, from the ski-toting bike riders to the hand-painted town bus rolling by. Getting here isn't easy, but C.B.'s remoteness keeps the masses away."

Also represented in Sunset Magazine, are the Top Winter Travel Retreats.  Named in this category is the Dunton Hot Springs resort in Dolores, CO near the Telluride ski area.  The area is well known for its hot springs and Dunton Hot Springs is a destination in itself.

"Dunton's new life springs from German entrepreneur Christoph Henkel, who transformed the 125-year-old mining town into a high-end resort." reports Sunset.  It has 12 guest cabins, 2 spa/treatment areas, a dining room featuring regionally sourced food and many activities right outside your door, such as cross country skiing, snowshoeing, dog sledding, not to mention Telluride Ski area and town is only a short drive away.

The resort might look rustic, but it is first class accommodations and the price reflects that.  "But where else do you get your own town?" states the article.

Read more at Sunset Magazine

photo credit: rante_i

Posted in Headlines, Real Estate Investing