National Private Real Estate Lender to Host Real Estate Investor Forum

A national private lender based in South Windsor announced that Daren Blomquist, Vice President of RealtyTrac www.RealtyTrac.com, a recognized authority on residential real estate foreclosure data and trends across the United States, will present the keynote address at its semi-annual Northeast Real Estate Investors' Networking Forum on October 23.

The event is the second of its kind to be hosted by RCN Capital; its May 8th forum attracted over 170 attendees, and the October 23rd event is expected to bring together as many as 300 real estate professionals, including investors, mortgage professionals, realtors, developers and contractors.
RealtyTrac® is a leading provider of housing data and analytics for the real estate and financial services industries, publishing a variety of reports, including its monthly U.S. Foreclosure Market Report, data. Wielding this data, RealtyTrac has been quoted on The CBS Evening News, ABC World News, NBC Nightly News, FOX News, CNN, CNBC and MSNBC, as well as in The Wall Street Journal, Los Angeles Times, Chicago Tribune, San Francisco Chronicle, The Denver Post and dozens of other print and online news outlets.

Mr. Jeffrey Tesch, the Managing Director of RCN Capital, states that "we are very excited to have Daren Blomquist as our keynote speaker as I am sure that many of our attendees have seen him on such national shows such as CNBC, Fox Business and Bloomberg, and he is quoted frequently in business publications such as WSJ, USA Today, and Bloomberg News."

RCN Capital is a nationwide, direct private lender providing short-term commercial loans from $50k to $2.5M+ to real estate investors, developers, and small business owners. RCN Capital is affiliated with TicketNetwork® through common ownership. Since 2010 RCN Capital has made over 800 loans totaling in excess of $180 million throughout 40 states, and financing the purchase and renovation of non-owner occupied residential and commercial properties. RCN estimates that approximately $100M of its loans have been made to borrowers in the Northeast.

The Northeast Real Estate Investors' Networking Forum will be held at RCN Capital's 9,000 square foot dining complex at 75 Gerber Road East, South Windsor, CT, and is free to attendees. Attendance is limited, go to www.RealEstateForum.ezevent.com to learn more and register.

Meriden Mayor Wants To Eliminate Landlord Fees

A first term mayor in Meriden is coming under fire for his plan to eliminate a program that keeps a close eye on landlords and their rental units. While some renters are up in arms, Mayor Manny Santos said he is sticking to his guns, saying the current program is bad business for the city. 
A student at Middlesex Community College in downtown Meriden, Troy Wiley said as a renter, he's had his fair share of lousy landlords.
"Not bad enough to complain, but pretty bad," Wiley said. "Me I'm the type that would just get up and move if it was that bad."
Wiley said he had some concerns when we told him about Santos' recent line item budget veto.
In an effort to trim the budget, Santos wants to get rid of Meriden's certificate of compliance program and defund the housing division, which he said would save roughly $70,000.
Since 1980, Meriden requires landlords to pay $25 every two years for each of their rental units. The city's housing inspectors then check those units to make sure they're up to the city's codes and regulations.
"At this point, I think it's an intrusive program, having out city inspectors going into rental units, private property every two years is too much," Santos said. "It shouldn't be a function of our city."
Santos said the current program does more harm than good and claimed it discourages investors from town.
"I want a process in place that's efficient, if a renter or a landlord has a complaint, I want that complaint acted on quickly and decisively," Santos said.
Just because he wants to eliminate the certificate of compliance, Santos said this doesn't mean landlords will have free reign. Rather Santos said the city will take a reactionary approach and that renters will need to step forward when there is a problem.
Others said they are concerned though that without that oversight, some landlords will let their rentals go.
It's why Thursday night's special council meeting looking at the veto and also including a resolution to review the current housing code is expected to be packed and contentious.
"Some landlords feel they don't need to do anything because they don't live in Meriden," Wiley said. "They live in New York, so they look at Meriden as their last priority."
Thursday night's special city council meeting is set for 6:30 p.m. at Meriden City Hall.

Story by:

WFSB

Real Estate Guru Pleads Guilty on Fraud Charges

Karen Hanover of The Commercial Gold Rush Investing and Coaching program with DC Fawcett has plead guilty of defrauding investors.
Karen Hanover and her attorney John Barton signed an agreement yesterday : That she, in or around 2010 or 2011, hatched a scheme to defraud investors she found through her seminars on getting rich through commercial real estate.
The plea deal says she pitched her “Fast Track” program that investors could enter for $19,000 (later kicked up to $29,000) and made a series of false statements to rope people in, including guaranteeing returns of more than 100 percent and full refunds if they did not have investment property within a year.
At the time she made those statements, she knew they were false, reads the plea deal, which adds Hanover also knew she gave false promises to be an equity partner in real estate transactions without having any capital of her own to invest.
Hanover admits that on or about March 3, 2010, a victim wired a $20,000 payment for the “Fast Track” program from his bank account in Vineland, New Jersey, to Hanover’s “commercial education account” at a Wells Fargo branch in Long Beach.
“As a result of defendant’s fraudulent scheme, about 48 victims lost $1,437,091.36,” states the plea agreement.
In exchange for her guilty plea, the government’s prosecution team, now headed by Assistant U.S. Attorney Joseph McNally, agrees not to fight Hanover receiving the low end of sentencing guidelines, even though guilt made her subject to the high end terms that could have had her locked up for several years.
In exchange for the plea deal, the prosecution will not challenge a sentence of at least 20 months in custody and restitution of at least $1.5 million.
The plea deal indicates the judge can deduct her previous jail time from whatever term she ultimately gets.
Sentencing to come shortly.
This now opens the door for a class action lawsuit to go after DC Fawcett and  affiliates as they took monies in perpetuating the fraud.  DC still has over 1 million in his bank account he has held back. Other affiliates such as Kent Clothier made over 100K promoting her to his list and endorsing her coaching program.
A civil litigate should be initiated by a civil lawyer in a Federal Court now their is a list of plaintiffs for the class. Every attendee of any of her education classes has a claim against Karen, her broker if she was licensed and hung her license somewhere, every internet guru or mastermind member that supported her events. It has great possibilities.  Make sure you get on the list!

Story by www.duncanwierman.com

How To Use A 401k to Invest In Real Estate (Q&A)

 Click Here to email me your real estate investing question

Question: I currently have a primary residence, a vacation home/rental and a rental property, and have a loan on each of these three properties. Would like to buy another rental property but debt/income ratio is too high and was told that I could not qualify for another loan. Have a combined of approximate $140K equity in three properties, and $70K in 401K. Also had $25k in saving account for down payment. I'd like to know how to leverage the 401K balance to qualify for a loan to buy a $100K rental property. Will appreciate any suggestions you can offer.

Answer: Hi Pei, there are a few options that you may have available. First I'd recommend that you totally exhaust your banking options. Try 10-15 banks to see if they'll give you the $75k loan. If that doesn't work out, find out if you can barrow against your 401k. As you may know (based on the way that you phrased your question), many plans allow you to barrow up to 50% or $50,000 which ever is less. That would give you access to $60,000 (including your $25k in savings). If the bank won't loan you the remaining $40k, you may be able to find a seller that is willing to carry it back by way of owner financing. Another option is to partner-up. Maybe a friend, family member or a colleague will be willing to invest with you. You can structure it anyway that you want but if you're looking to buy a property for $100k then maybe you can own 60% of the property and your partner can own 40%. Also, having 2 years of rental income and equity buildup may put your Debt to Income Ratio in an acceptable range, so you could use a short term loan until you have the second year of rental income,but make sure that will bring your DTI to an acceptable level before you try this or you could end up with a high interest loan and no way out.

Click Here to email me your real estate investing question

If you have a different opinion or just something that you'd like to add, please feel free to leave a comment below.

This is not legal advice. Please contact an attorney for professional legal advice.


Investors Target 'Hipsters' when Flipping

Hipsters usually refers to a subculture of 20-something or 30-something men and women who follow the latest lifestyle trends and fashion. Many hipsters have delayed forming their own households and are living with their parents longer to get more control over their finances and find steadier employment, RealtyTrac reports. But some investors are banking on the hipsters' flood into the housing market soon.

“The low hipster home ownership rate of the past five years translates into a market of potentially millions of first-time home buyers looking to find a home that matches their budget and fits into their hipster lifestyle,” RealtyTrac reports.Some real estate investors are targeting affordable communities where this growing hipster demographic may decide to settle.

The average gross profit nationally of a single-family home flipped in 2013 was more than $58,000. But areas known for a high number of hipsters are offering much higher returns on flips, according to RealtyTrac’s analysis.

So how can you benefit from this information? If you're into house flipping, find towns/cities or neighborhoods in Connecticut that have a large demographic of people between the ages of 25-34. Locations that are within walking distance of restaurants, shopping centers, public transportation, Gyms are ideal. As with everything else in real estate, location is everything. Find a property with these amenities and you could potentially set yourself up for serious profits!!

If you'd like help finding great properties to invest in, Click Here and fill out the form to let me know a little about your goals and objectives. 

Hartford's Real Estate Market Outlook

The Hartford Connecticut Real Estate Market is expected to surge this year by 8.3% according to CNN Money. The City of Hartford should thank Obamacare for these forecasted home price gains. Home to some of the nation's biggest insurers, like Aetna and UnitedHealth Group, the new health care law has helped these firms expand and bring jobs to the area, according to Thomas Deller, who directs development for the city of Hartford.
All of the white-collar jobs have kept household incomes high -- at a median of more than $85,000 last year. That makes the area's median home price of $234,000 quite affordable for most residents.

CoreLogic forecasts a 12-month gain of 8.3% and sees another price increase of 6.6%, for the 12 months after that.

With such a strong market outlook, Hartford is the place to be for investors.

Click Here to see available properties in and around the city.

New Haven County Rehabbed Property Market Analysis (Last 90 days)

Are you thinking of flipping a house in New Haven County? Check out these numbers....

 

This is an analysis of 29 renovated New Haven County properties that sold in the past 90 days

(10/26/13 - 1/24/14)

Click Here to see that properties that were included in this analysis

General Market Analysis

	Beds	Baths	SqFt	Listing Price	LP$/SqFt	Sale Price	SP$/SqFt	SP/LP	DOM
High	5	3.1	2,560	$685,000	$285.42	$675,000	$281.25	106.3%	323
Low	2	1	864	$89,900	$84.48	$83,000	$75.48	84%	2
Average	3	1.86	1,611	$275,547	$167.46	$265,228	$161.2	96.38%	72
Median	3	2	1,636	$279,900	$165.71	$270,000	$162.31	97%	53

LP$/SqFt= List Price per Square Foot

SP$/SqFt= Sale Price per Square Foot

SP/LP= Sales Price to List Price Ratio

DOM= Days on Market

 

Price Analysis Report

Price Range	Quantity	Average DOM		Summary	List Price	Sale Price
$79,999 or under	0	0		High	$685,000	$675,000
$80,000 - $89,999	1	14		Low	$89,900	$83,000
$90,000 - $99,999	0	0		Average	$275,547	$265,228
$100,000 - $119,999	1	2		Median	$279,900	$270,000
$120,000 - $139,999	2	51
$140,000 - $159,999	2	23
$160,000 - $179,999	2	38
$180,000 - $199,999	2	91
$200,000 - $249,999	3	140
$250,000 - $299,999	7	74
$300,000 - $399,999	7	76
$400,000 - $499,999	0	0
$500,000 - $599,999	1	146
$600,000 or over	1	47
Total	29	72

 

Days on Market Report

	0-30 Days	31-60 Days	61-90 Days	91-120 Days	120+ Days
No. of Listings	9	7	5	3	5
Breakdown %	31.03%	24.14%	17.24%	10.34%	17.24%
Avg % SP/LP	97.82%	96.97%	94.4%	95.52%	95.55%

 

High/Low Comparison

 

Days on Market Breakdown

 

List to Sales Price Ratio

 

Real Estate Investing is all about NUMBERS!! If you'd like stats on a particular city/town in Connecticut or if you need help evaluating a deal, Please click here to contact me!!





City of Meriden Steps in to Help Tenants After Wall Collapse

City leaders in Meriden said Thursday that they'll make sure tenants forced out of their apartments after Wednesday's wall collapse will have a place to live. "The city is prepared to help get new apartments including first month's rent, first month security deposit, moving truck and van," said Thomas Kilroy, Meriden's Chief Housing Inspector. Between 50 and 60 people lived in about 18 units on the condemned East Main Street according to city officials. They said the wall collapsed in the rear of the building around 8:30 a.m. Wednesday and forced everyone out. Some tenants were unable to return to retrieve their belongings. "I was home when they came knocking at door," said Anais Vargas, one of the tenants. "Had to leave and evacuate. Grabbed everything I could and there was a big hole in the building. We didn't know what to do."

City officials addressed concerns Thursday at a local hotel. "Where's the landlord? Police?" asked tenant Ramona Torres. "That's a fantastic question. We're going to find out." Officials said they provided the displaced residents with a list of area landlords that have close to the same rent as they were paying.

No one was allowed back into the building without a police escort. Police said they will be patrolling the area Thursday night and looking for looters. They said two minors were arrested for trespassing so far. The city's building official, William Lussier, said, about a year ago, they were notified about a potentially problematic part of the wall. That piece did not collapse, but apparently was right near the collapse. "They said going to fix outside, do this, do that, "Torres said. "They were going to make changes." Lussier sent a letter to the landlord on May 8 in which it stated "that the brick wall is deteriorated and has a distinct bulge. Letter also said there is "numerous cracks and loose bricks are present."

City officials told the landlord to hire a professional "to determine the extent of the damage and present a plan indicating your course of action." No exact date was given. "(It was) supposed to be produced around Christmas time," Lussier said. Lussier sent a second letter to the landlord on Oct. 31. "If this order is not addressed by you within five days, the city will retain the services of a structural engineering to evaluate the condition of the building," the letter stated. Lussier admitted on Thursday a city engineer was sent for the first time Wednesday. "If we thought, it was dangerous woulda done something at time," Lussier said. "This sorta thing happens all the time, unfortunately this one collapsed."

Story by WFSB

 



Hartford County Rehabbed Property Market Analysis (Last 90 days)

Are you thinking of flipping a house in Hartford County? Check out these numbers....

 

This is an analysis of 34 renovated Hartford county properties that sold in the past 90 days

(10/18/13 - 1/16/14)

General Market Analysis

	Beds	Baths	SqFt	Listing Price	LP$/SqFt	Sale Price	SP$/SqFt	SP/LP	DOM
High	4	3	3,062	$508,250	$227.07	$496,000	$222.62	103.5%	181
Low	2	1	912	$99,900	$52.03	$89,900	$48.96	90%	7
Average	3	1.7	1,540	$224,066	$146.7	$218,715	$143.25	97.65%	47
Median	3	2	1,448	$209,900	$139.79	$202,000	$134.94	98.1%	30

LP$/SqFt= List Price per Square Foot

SP$/SqFt= Sale Price per Square Foot

SP/LP= Sales Price to List Price Ratio

DOM= Days on Market

 

Days on Market Report

	0-30 Days	31-60 Days	61-90 Days	91-120 Days	120+ Days
No. of Listings	17	8	3	3	3
Breakdown %	50%	23.53%	8.82%	8.82%	8.82%
Avg % SP/LP	97.91%	97.92%	96.64%	98.03%	96.1%

 

 

 

Real Estate Investing is all about NUMBERS!! If you'd like stats on a particular city/town in Connecticut or if you need help evaluating a deal, Please click here to contact me!!