Santa Clarita Named One Of LA's Top 5 Most Business Friendly Cities
Saturday, 20 September 2008Los Angeles Economic Development Commission Recognizes City
The City of Santa Clarita has been named one of the top five most business-friendly cities in Los Angeles by the Los Angeles Economic Development Corporation (LAEDC) for 2008.
Additionally, the City is a finalist for the prestigious EDDY Award, which will be presented to the top city at a gala awards ceremony and dinner at the Beverly Hilton Hotel on November 17, 2008. The EDDY Award was introduced in 1996 by the LAEDC to celebrate organizations that demonstrate contributions to positive economic development in the region. Beginning in 2006, the EDDY’s began recognizing cities and Santa Clarita has been one of the top five finalists each and every year since the award was created.
As a business friendly City, Santa Clarita does not assess a business license fee nor does it assess a utility user tax, allowing businesses to save up to five percent or more on their electric, telephone, water, and gas bills. In addition, businesses located within the Santa Clarita Enterprise Zone enjoy state income tax savings that can reduce or virtually eliminate their state income tax altogether.
Santa Clarita aims to offer local businesses a highly educated workforce, available land for development, site selection assistance, and expedited plan reviews and permit processing. Additionally, the Newhall area of Santa Clarita has been designated as a Redevelopment Project Area providing opportunities for innovative financing and improvements.
The City of Santa Clarita has had a number of economic development successes this year including being honored by the California Association for Local Economic Development (CALED) with the Grand Prize for the Best Economic Development Program in California for the City’s Tourism program; being named by the Los Angeles Business Journal as the Best City for Industrial Development in LA County; and being recognized the California Retail Survey as one of the top 25 retail markets in California ranking higher than Santa Monica, Pasadena, and Beverly Hills.
The City of Santa Clarita Film and Tourism programs represent an industry that has experienced tremendous growth over the past few years and one that finds great success in the City of Santa Clarita. In Fiscal Year 2007/2008, the City of Santa Clarita issued 335 permits for location filming that resulted in an estimated economic impact to local businesses of $18.9 million. This increase in filming is particularly noteworthy considering the writers strike that began in 2007 negatively affecting film production industry wide for several months. In addition to the success of the film and tourism industry in Santa Clarita, the City has become a thriving center for industry clusters such as aerospace manufacturing, bio-medical, and technology.
“We are very honored to be named as one of Los Angeles’ top five most business friendly cities for a third straight year. We work diligently to make sure our City’s practices help City-based businesses thrive, while providing our residents with a choice to work locally,” commented Mayor Bob Kellar.
Information about the many economic development programs offered by the City can be found on the City’s main website at santa-clarita.com, or by visiting any one of several direct websites targeted to specific industries including: http://www.locatesantaclarita.com/ ; http://www.shopcityofsantaclarita.com/ ; http://www.scenterprisezone.com/ ; http://www.filmsantaclarita.com/ and http://www.visitsantaclarita.com/.
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The Fallout From the Fannie Mae, Freddie Mac Takeover by Dane Smith
First let's look at the reaction from the media and the general public. One would expect there to be some political fallout from the largest takeover in government history. But because of the election and Hurricane Ike the reactions have largely been muted. There have been of course the expected positive reactions that this was a shrewd move to help the real estate market and negative reactions that the government should limit its involvement. But for the most part their has not been a big reaction one way or another. I have actually seen more stories about the reactions on the takeover from the presidential candidates than stories simply about the takeover.
While the media reaction has been muted the reactions in the financial markets have not been. Not surprisingly, the stocks of Fannie Mae and Freddie Mac plummeted after the announcement. The government said before hand that the common shares of Freddie Mac and Fannie Mae would lose most of their value in the event of a government takeover. So following the news of the takeover the share promptly lost 80% of their value.
The mortgage markets have reacted very favorably to the news. Considering the Fed has cut interest rates multiple times this year mortgage interest rates have remained relatively high. The reason for this was that banks were unsure about the financial stability of Freddie Mac and Fannie Mae which provides insurance for about half of the residential loans issued in the United States. This risk has now been lowered since the government takeover. Consequently mortgage rates have plummeted in the last week. 30 Year mortgages have dropped from 6.35 to 5.93. This is after rates have moved down from 6.63 to 6.35 partially on expectations that Fannie Mae and Freddie Mac were going to be taken over. I have seen some reports that this is lowest rates have been in the last 4 months. I think this understates how low rates have come down. Besides two brief drops at the beginning of 2008 this is the lowest rates have been since 2005.
The lower interest rates should have a positive effect on the real estate market. Lower rates pull down the mortgage on a house and tend to have a positive effect on real estate values and market activity. In another positive sign although their has not been too much media coverage the coverage that has come out has been mostly positive. To be honest I was a little surprised by this. I would have expected the coverage to be a little more mixed. But regardless the favorable media reaction combined with lower interest rates should help the real estate market. And based on what I have heard from different realtors their does seem to be an upswing in activity. But we won't have any hard data on this for a month or so.
So, at least in the short term, it seems the Feds have accomplished their goals of helping the real estate market with the Freddie Mac and Fannie Mae takeover. We will of course have to wait over the next few years to see if this move turns out to be wise. But for now the Fed has finally been able to push down mortgage rates.
About the Author
Ki is a real estate broker working in the Austin real estate market. He maintains a website with a Austin MLS search
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Getting Your Home Attention in a Slow Market by Jane Karwoski
Lets face facts; trying to attract attention to your home when selling in a soft real estate market isn’t an easy proposition. But, there are some things to do to help get potential buyers to pay attention to your home even when times are tough. Buyers spend much of their time outside the front door while the real estate agent is opening the lock box. This is usually the time when people will inspect the condition of the front entrance and exterior of a home. It’s so important to make a great impression on potential buyers at this point. What buyers see as they look at the front of your home can make or break a sale.There are several tasks you can do to hurry along an offer in a slow market. First, inspect the exterior of your home thoroughly, especially the front entrance and front door. If the front door is dirty, simply wash down the door. If the paint is worn or starting to peel, a good application of exterior paint is in order.
To give eye appeal, place a new mat at the front door and make sure all door hardware is shiny. Remove any dirt and cobwebs from overhangs, corners and window screens. Thoroughly inspect the windows for any cracks or chips and make sure screens are in tip-top condition. Windows should be sparkling clean as well as screens. A clean, well-kept front exterior is a good sign the rest of the home is worth a look!
Repaint the trim around your home if it has become worn. If it is simply dirty, wash off with a hose. House numbers visibly placed on the exterior of your home is always important, but artistically placed they will make a good impression on buyers.
Make sure your front landscaping is attractive. Trim any overgrown shrubs or trees, making sure to remove any dead or ailing plants. Try planting some pretty flowers near your front door or place some pots around the walkway to give your home a cheerful and inviting look. Flowerbeds should be free of weeds and driveways clean and swept. Remove any weeds that are growing through cement cracks on front walkway or driveway. Concrete that is worn or dull looking can be stained with one of the decorative stains on the market for concrete driveways and walkways. This will invite homebuyers into your home to take a further look.
Does your home have curb appeal? Step back and take a good look at your home. The lawn should be green and manicured. The front entrance should be immaculate and appealing to the eye. Are there any areas you have missed? Make sure you take care of any problems before calling a real estate agent. This will save time in the long run and give the agent a better idea of the market value of your home.
A slow real estate market doesn’t mean you have to postpone selling your home. Even if you must wait a little longer for the right offer to come along, it may be worth it in the long run. And if you have prepared you home ahead of time, the wait might not be as long as you expected.
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Can Government Solve the Foreclosure Problem? by Attorney William Bronchick
Foreclosures are up nationwide, and will continue to rise as prices continue to go flat in many markets. For some, the problem is painful. Ask New Century Financial Corporation, the nation’s second largest subprime lender, who recently filed for bankruptcy. Ask the guy down the block from you whose house is in foreclosure.
Some pundits think the rising foreclosures will bankrupt our economy, causing pain for people who lose their business or job as a ripple effect of all these foreclosures. Others think that the rise in foreclosures is a healthy adjustment to the end of a long real estate boom, and is nature’s way of taking care of a free-market economic cycle.
Who’s right? Time will tell, but it’s alarming to see politicians trying to fix this problem. Here are some of their solutions.
Give People Money
Tax the rich, give to the poor. The federal government now wants to fund programs to help people stay in their homes.
A new bill in the Senate proposes giving money to people who can’t pay their loans. We taxpayers are confused. If these people are in trouble because they never should have been given such a loan, why should taxpayer money be used to keep them in their homes that they could not otherwise afford?
Maybe someone in Washington has the answer to that question?
Regulate Foreclosure Investors
I have written extensively about the assault on foreclosure investors that have been initiated by consumer advocate groups, resulting in a tsunami of new “Foreclosure Protection” laws across the country.
While protecting innocent homeowners from unethical investors is a good idea, new legislation is not always the answer. Enforcement of existing consumer protection laws and prosecution under existing criminal laws is certainly a better option than creating new laws that limit the options of a seller in foreclosure. The best solution to a foreclosure epidemic is a free market that allows investors to gobble up inventory. By hamstringing investors with complicated, punitive regulations, it will only discourage transactions and result in more properties in lender inventory. More lender inventory forces them to sell at lower prices, which hurts the entire real estate market.
Stop the Foreclosure Process
The Government of the State of Massachusetts recently handed the State Banking Division the authority to put up to a two month delay on any lender foreclosure. All a homeowner has to do is file a complaint with that office.
It is not year clear on how many lenders this will affect, but certainly this move is troubling. If the government’s action is based on a consumer complaint, what kind of complaint deserves the kind of government involvement that stops a lender from collecting on its debt?
Certainly, any homeowner whose legal rights have been violated under state or federal law can stop or delay a foreclosure with a court order. Opponents, of course, will argue that since these people in foreclosure can’t afford lawyers, they won’t have the means to seek this remedy. Such is life, that people who are in debt can’t afford lawyers to protect their legal rights. Do people in $1,000,000 homes deserve the same protection as people in $100,000 homes? Do lenders and their shareholders have the right to foreclose and get their collateral back?
And, think about the next logical step... will the government stop allowing landlords to evict if the problem gets bad enough?
Stop the Lenders from Lending
Nobody can seriously deny that lenders got sloppy in how they lent mortgage money over the last 10 years. As a result, many people got into loans they couldn’t pay back, and we now see the consequences.
Conversely, with the exception of gross overreaching by mortgage brokers, it’s hard to deny that most people didn’t understand the risk involved in borrowing money they couldn’t pay back. If you buy a house with no money down and a negative amortizing loan, you are gambling that you will make more money in the future and/or the price of your home will increase. If you are wrong, you lose your home. That’s the gamble. It’s like Vegas, except for one thing – the house doesn’t win when the customer loses. Everybody loses, except the attorneys who get paid to foreclose.
Should the government stop lenders from offering “risky” loans? The answer, I believe, is emphatically “NO”. If lenders go too far, they suffer financially. Thus, the market will take care of itself, in that lenders who lose profits will tighten up loan regulations, and Wall Street will downgrade or reject portfolios of risky loans.
Before you get too excited by this last paragraph, I do believe that some regulation is appropriate to protect the consumers and shareholders from getting duped in the process. Additional disclosures to both homeowners and Wall Street investors are appropriate considering the large number of defaulting subprime loans. However, if people want to borrow money under risky terms and lenders want to lend under a high risk of loss, why should the government stop them? Pawn shops, check-cashing stores and used car lots all operate on a high-level of risk.
Step Up Enforcement of Existing Laws
Instead of stopping the business, I believe the government should throw money at enforcement. Prosecute the bad people and leave the options open for people who want to do business under their own terms. There are enough existing laws that give the state and federal prosecutors plenty of room to go after bad operators, and many of them already have.
The government can put bandaids on it, but only the market can solve it the foreclosure problem. When demand exceeds supply in a given market, prices will go back up, and people will have enough equity to sell their homes. Somehow, I don't imagine people will learn their lesson and, thus will continue the same cycle in the future. But, most Americans believe it is not the government's job to stop people from willingly doing stupid things.
When it comes to your financial decisions, be responsible, read the fine print, and remember... "buyer beware".
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MAJOR CRIME DOWN OVER 16% IN SANTA CLARITA
First Six Months of 2008 Reveal Downward Trend for Part I Crimes
Part I or major crimes in the City of Santa Clarita has decreased over 16% during the first six months of 2008 as compared with the same period last year. Forcible rapes are down 47%; arsons are down 43% and burglaries have been reduced 23% according to the Santa Clarita Valley Sheriff’s Department. The City saw a 19% reduction in larceny theft and a 5% reduction in aggravated assaults during the first half of this year. The only categories to show an increase were robbery, which went from 61 in the first six months of 2007 to 66 this year, and grand theft auto which changed to 218 from 200. “The partnerships that we have forged among City leaders, our residents, the business community and our Sheriff’s department are absolutely paying dividends. We are vigilant in our efforts to prevent crime and prosecute criminals,” commented Mayor Bob Kellar. The City of Santa Clarita increased its Sheriff contract this fiscal year, adding two new patrol deputies to its annual contract to help improve responsiveness and further aid in crime prevention efforts. The City also added a commercial vehicle enforcement deputy to help keep local roadways safe from large and potentially unsafe commercial vehicles. The City also credits the City/Sheriff Business Alliance program, which provides response and prevention services to City-based businesses. Major efforts over the last year include the Sheriff’s Department anti-gang program, which targets active gangs and providing swift and aggressive action including probation and parole compliance checks and warrant enforcement operations.
I am very proud of the work our Santa Clarita Valley Sheriff’s department is doing here in Santa Clarita. These are some of the most dedicated and motivated men and women I have ever worked with and they are committed to protecting this community,” said Captain Anthony LaBerge, of the Santa Clarita Valley Sheriff’s Department. “I would also highly credit our community partnerships with the reduction in crime in our City,” added LaBerge.
Release Date: 8/7/2008 http://www.santa-clarita.com/
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What Is Affordable Credit Repair?
When looking to repair your credit, a frequently asked question is what exactly affordable credit repair is? The last thing you want is to go in and pay a bunch of money on something that you do not necessarily need to spend too much money on. But it is difficult to clarify exactly what affordable means. The reason it is difficult to clarify what affordable credit repair means is because everyone’s situation is different. While you may be on a pressing deadline to get something paid off, someone else might have a minor problem that they need fixed. Either way, it is important you realize you can repair your credit regardless of how bad your credit is. Some people opt to try and repair their credit on their own. While this is an option, you have to be cautious about doing this. There are a lot of terms, laws and techniques that you are probably not familiar with. The last thing you want to do is worsen your situation because you thought you could do it on your own. Instead, it is safer to hire someone who repairs credit for a living. While it will cost you money, it will be worth it when your credit is better far quicker. Professionals know the tricks to get your credit back to normal. It can be tempting to fix it yourself, but just know that there are a number of advantages to hiring a professional. You have to look at it like any other thing you may do in life. If you are selling a home, you can try to sell it on your own. But typically, you would hire a real estate agent that can take care of everything for you and make sure you get the best deal possible. If you are going to court, you are probably going to hire a lawyer to defend you. Of course, it depends on the situation though. If you are going to court for a speeding ticket, a lawyer is probably not needed. If you have a minor problem with your credit, you may be able to get away with repairing it on your own. In order to determine what affordable credit repair means, you have to look at it on a case by case scenario. Before going out and hiring the most expensive professional available, research and find out what your options are. Just know that bad credit is what you are trying to fix. While it can be difficult to pay someone to do something you think you can, it is better to repair your credit properly. Allan Zolis is can help improve your credit scores, help you get approved for loans and help with bankruptcy removal.
About the Author Allan Zolis is owner of http://www.creditscoresusa.com/ - a credit repair agency with a unique advantage. See how he successfully combines a collection agency with credit repair to save you money and fix your credit the right way.
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Tax credit for home buyers works like an interest-free loan
They mark the eligibility period for the home purchase tax credit created by the housing bill enacted last week. If you have not owned a house during the last three years -- or are considering buying a first home -- and you close on a purchase before the end of next June, you may be eligible for a credit of as much as $7,500 against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).
The new tax credit is expected to benefit hundreds of thousands of buyers. Here's an overview of the specifics.
* The basic idea: To jump-start housing sales and clear out stocks of unsold real estate, Congress is offering tax credits to encourage new purchasers. Buy any house -- new, old, in any location or condition for any price -- within the designated time period and the IRS will cut as much as $7,500 off your tax bill this year or next.
For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.
* Eligibility rules: If you own a home now, you're not eligible. If you sold your home more than three years ago and now rent, you are eligible. The same is true if you've never owned a home. Close on a house before next June 30 and you can claim a credit of up to 10% of the purchase price to a maximum of $7,500.
If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down. You cannot claim the credit if you financed the property using a state or local housing agency's tax-exempt bond mortgage, or do not plan to use the house as your principal residence.
* Payback: Unlike some past tax credits, this one must be repaid over an extended period. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year.
If you sell the house before the end of the repayment period, and you have no gain on the sale, you won't be expected to repay the remainder of the credit from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.
At its core, the new tax credit works very much like an interest-free loan. You pay the principal back in increments over time, but there's no interest charge to you.
Rob Dietz, an economist for the National Assn. of Home Builders, says the credit not only will pull first-time buyers into the market but also will have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses go out and purchase replacement homes for themselves -- extending the effect of the credit into the move-up segment.
How do you claim the credit? If you qualify, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. The home builders group is launching an educational website, at http://www.federalhousingtaxcredit.com/, with additional information for consumers.
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10 Questions To Ask A Remodeling Contractor
10 Questions To Ask A Remodeling Contractor
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Most states require contractors, even sub-contractors to be licensed. Make sure your contractor is properly licensed. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the law. If a contractor cannot produce a valid license, Do Not Hire Him! You can check the contractor’s current licensing status with your states Secretary of State. Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing, and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance. Make sure your contractor carries workers’ compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor does not carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor, or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers’ compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption from Workers’ Compensation. This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor’s workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor. Many Contractors are lender-approved contractors. They have been approved and investigated by lenders as being financially sound, maintaining satisfactory relationships with suppliers, satisfactory credit and no outstanding complaints at the Better Business Bureau. NARI stands for the National Association of the Remodeling Industry and NAHB stands for the National Association of Home Builders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated. Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to “code." Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are either unlicensed or the work is outside of their license. A reputable contractor will permit every job where a permit is required. Your contractor should guarantee his work for at least one year from date of completion. They should also include any warranties from the material used if applicable. Make sure the contractor or his foreman is on the job whenever work is being performed-especially if sub-contractors will be used. The responsible party must be familiar with every aspect of your project. You cannot be worried about what is going on when you are not there. A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several customer references from the last 6 months to one year. Ask for the name of the contractor’s accountant or banker. You want to ensure the contractor is financially sound and will not be declaring bankruptcy in the middle of your project.
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10 Frequently Asked Short Sale Questions
Here are 10 frequently asked short sale questions that are very helpful especially if you are just getting started or considering short sales as a means to acquiring pre-foreclosures.
1. What happens to the seller's credit rating when they allow an investor to short sell their property?
What typically happens is the loan will show up as "paid" on their credit report; however there will be a notation that says "settled for less than originally owed" or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.
2. Where do you find investors for short sales?
Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors club meeting.
3. Define a short sale?
A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition... but without the luxury of time.
4. Can an owner profit from a short sale?
The seller cannot profit (monetarily) from a pre-foreclosure short sale.. But there are always exceptions to the rule.
5. How do bankruptcies affect the possibility of doing a short sale?
Most mortgagees won't consider a short sale if the homeowner is in bankruptcy...why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.
6. Can somebody tell me what documents do I have to include in a short sale package?
Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, ECOR, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), amongst other things.
7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?
All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.
8. How late in the pre-foreclosure process can you start a short sale?
Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale.
9. What is a Due on Sale clause?
"Due on Sale" Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of all or any part of the real property securing the loan without the lender's prior written consent.
For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.
10. Will banks allow a short sale when the owner has some or a good amount of equity?
If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.
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By D.C Fowler
“B.U.L.L.” Is My Four Part Formula For Beating A Bubble Market:
Jim Kramer is a genius. He hosts a show called, “Mad Money” on CNBC. He graduated top of his class from Harvard and is one of the most respected names in the financial news industry. Jim has an expression - “There’s always a bull market somewhere”. I like this so much I am going to pilfer it and use it in my presentations because it so aptly applies to real estate investing.If you invest in REITs, stocks or funds that are dependent on the real estate market, the housing news (bad news) is very relevant. If you are a dealmaker, a house buyer, and a bargain hunter, you look for deals that exist despite the market. In other words, look at neighbhorhoods figures, not national or statewide figures on housing when investing. In every city there’s certain neighborhoods that are up or down, no matter what the citywide or statewide news about housing is telling you. Find those bull markets, and you will make money.
B - Buy Local. If you focus on local news rather than national news, you will do much better.
U - Under Value. If you buy properties under their current market value, you will win in any market, because if the value drops, you’ll still have equity to spare before the market cycles around again.
L - Low Interest Rates. Lock in low interest rates, and when things rebound, you’ll have a nice low payment.
L - Long Term. If you are buying for the long term, the temporary drop in the market won’t hurt you, particularly if you buy under value and with low interest rates as described above. “Dollar Cost Averaging” is the name of the game for long-term players, which means no matter when you buy in the cycle, in the end it always goes up.
