Prosperity Properties Blog

Road to Housing Recovery will be ‘Longer and Bumpier’

foreclosureThe Wells Fargo Economics Group released its Housing Chartbook for May 2014. The group found that most markets are finding themselves “wildly out of balance” from inflated home prices driven by investor purchases, as well as exceptionally tight inventories that are well ahead of any improvement in demand.

The group said that the “lack of a rebound in home sales this spring has reinforced our view that there was more than harsh winter weather behind the recent slide in home sales and mortgage applications.” The group notes that the road to housing recovery will be longer—and much bumpier—than expected.

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Why now is a great time to start investing in nonperforming notes

Bloomberg Businessweek has published an excellent article that describes the favorable economics behind purchasing nonperforming mortgage notes. The article references a former Lehman Brothers exec, David Sherr, who is now running One William Street Capital management LP, a $2.7 billion investment firm and a huge buyer of non-performing loans, or NPLs, tied to delinquent borrowers who haven’t yet lost their homes to foreclosure. A letter to investors released by the firm (also referenced by Bloomberg) states that, in their view, NPLs offer the “cleanest exposure” to housing.

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Working In The Shadows: Non Performing Notes

I‘ve had a good run for flipping homes over the past five years. Thanks to the subprime fiasco, the nation’s economy tanked, home prices fell, interest rates took a nosedive to historic lows, and inventory was plentiful — especially in the foreclosure market. I’ve been able to pick up REO properties at a good discount, then renovate and get a healthy profits on resale.

But recently the market is shifting and the ability to buy distressed homes at a low enough discount to earn a healthy profit is starting to diminish. It seems that the banks are

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3 Fundamental Changes To Your Real Estate Investment Strategies

It’s time to re-evaluate your real estate investment strategies and holdings. The market has already made a fundamental shift that has changed the entire industry. The smart money has already reacted to this and will reap huge rewards as a result. If you wish to take advantage of these market changes, like the smart money already has, you must first identify what these shifts are.

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The Memphis Market Is Hot!

Memphis is one of the most undervalued markets in the U.S. With over 45% of the population as renters, the city has become an attractive destination for investors seeking stable appreciation with positive cash flow. With the tremendous tax advantages associated with real estate, the opportunity Memphis has to offer is second to none.

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Why should I sell my note at a discount?

We are often asked why should sell my real estate note for less than the note value. There are a number of reason that you may need money, and money today is worth more than money in the future, this is the time value of money.

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