A most unusual letter from Ted Lucier, the ‘only’ 2-4 unit and small multifamily investment specialist in San Diego

March 5th, 2009

Of Course You CAN Afford Your New duplex, triplex, fourplex, or small commercial multifamily property for your home or investment…

…Just Think of All the Money you’ll Save by Reading my Letter.

Dear Future Multifamily Owner

Before I get started with telling you why I’ve chosen to write this letter, I’d like to first ask you a question. Have you ever said to yourself…I’ve been meaning to get this property search off the ground, but is now the right time for it?’ (Or, I’ve been too busy to get around to calling someone!)

Well if this describes you, then I have terrible news. As you can imagine, my market, like most other markets, has been affected by the economy and for the first time in years, there are not enough properties for sale for the amount of buyers out there.

In fact, I’m worried that we’re not going to see the “wave of foreclosures” here in San Diego long talked about in the media. It’s hard enough to keep my clients who are in the “just looking” phase busy, and I’m even faced with having to consider laying off some of them that are not taking action fast enough. This is particularly disturbing to me since they are a part of Ted Lucier’s and Prudential California’s extended family (many have been with me for over six years) and besides, I’m afraid if I lay some of them off, I won’t be able to get them a great property when the economy turns around.

You SAVE - I FIND YOU A GREAT PROPERTY - A Deal-Of-A Lifetime

I am redoing my business by offering you (people who want to take Fast Action and take advantage of this unique market while it’s still around.) An opportunity-of-a-lifetime to save on your next 2-4 unit investment like never before…just give me a chance to prove it to you.

All you need to do is simply call for a FREE Planning Session where we can discuss what you have in mind. I’ll give you my expert advice that I’ve learned from over 87 property sales and then “wow” you with a price for the investment like you have never seen before.

This Is A RARE Opportunity To Get Into Properties Like:

A Duplex where you live in one unit/house and rent out the other one to pay for a part of your mortgage
A Duplex, Triplex, Or Fourplex that is a safe, physical investment that pays for itself and gives you money back
A 5 to 15 Unit building that the big investors ignore and you can get a great price and great cashflow every month
A 2-4 property in a great neighborhood that costs less than surrounding houses you can convert into a house

Or whatever you desire to invest and/or live in at bottom of the market, bank-owned prices

Here’s what to do next:

Pick up the phone and call my office (858-412-7484) and ask for me, Ted. If I’m not there, leave a message or you can email me at tedlucier @ gmail.com and we’ll make plans for a FREE Planning Session.

You are, of course, under no obligation to buy anything, but I think once you see the “You-Save-I-Find-You-A-Great-Property” LOW Pricing I can offer you (as long as there are still open time slots in my office) then you’ll be thrilled you gave me a call.

Of course, at these 20 year low “You-Save-I-Find-You-A-Great-Property” Prices, you are still protected by the “17 day take-it-or-leave-it” state of California buyer protection built into the purchase offer.

I look forward to hearing from you soon.

Ted Lucier

PS#1: I can only offer the “You-Save-I-Find-You-A-Great-Property” LOW pricing as long as there are open times at my office. So please don’t delay and call my office (858-412-7484) and for me, Ted. If I’m not there, leave a message or you can email me at tedlucier @ gmail.com.

PS#2: If you know a family member, friend, or co-worker who wants to take advantage of historically low purchase prices and interest rates, as well as my “You-Save-I-Find-You-A-Great-Property” offer, then please tell them to call and mention this letter and I’ll extend them this same offer.

PS#3 During this “You-Save-I-Find-You-A-Great-Property” LOW pricing opportunity, I’ll even include FREE estimates from my personal contractor who specializes in fixing up rental properties. Pick up the phone NOW and give me a call.

Sign Up Here For The Only Free San Diego-Specific 2-4 Unit Investment Newsletter Around!
First Name *
Email *
What Is Your Biggest Question About These Types Of Properties? *

Just how hot is this market? How many people are looking for the same deal you are? Click play on the button below to listen to an actual message left for me from a listing agent’s assistant on a bank-owned fourplex when I called to check availability (she was one of the rare ones that actually called back):

This is a simple website I put up for a few clients. I’m always out in the field in the metro area neighborhoods previewing these properties, taking pictures, writing summaries and emailing them individually.

This makes it easier for me and you-I can post once and keep everyone updated, and you can sign up for automatic email updates to have new content pushed to your email account.

This site is not a comprehensive breakdown of all foreclosures in San Diego. There aren’t a ton of properties on here because I’ve already screened them on the mls and either eliminated them off the bat or decided to go look at them in person for a select few clients.

I’m also only doing duplexes, two on ones, triplexes and four plexes for the most part. Out of any real estate investment someone can make in San Diego right now, these have one of highest rates of return.

Once in awhile, I’ll check out a couple houses-almost never any condos or townhomes. When the niche is this narrow there are not a ton of bank owned places for sale at any given time.

The neighborhoods I generally check out for my investor clients are: Mission Hills (92103), Hillcrest, Golden Hill (92102), South Park, North Park (92104), Kensignton (92116), Normal Heights and University Heights.

To receive the automatic email updates for properties I personally review, just sign up in the box provided in the top right corner. I have link to a brief snapshot of my business under the “About” page and directions to my offices under another page.

For my newsletter pertaining to this specialty market, please sign up above. It’s regularly delivered via email and is not a waste of your time. Each issue contains to the point, no b.s. analysis and updates of this constantly changing “wild west” of markets.

I have to protect you and myself against spam, so once you sign in here, you will receive an email right away asking if you yourself actually signed up-click on the link and we’re all set!

Thanks

Ted

Lic# 01317331

Protected by Copyscape plagiarism checker - duplicate content and unique article detection software.

Posted in Uncategorized | No Comments »

Well, this explains a lot.

March 10th, 2010

Direct from the offices of the County Assessor/Recorder/Clerk, we have the latest year to date figures that compare this years foreclosure rate with last years. Click below:

sd-county-foreclosure-ytd

Notice of defaults are down 38% over last year. This really sucks for you, the investor because NOD’s are the primary indicator of how many bank-owned-they-don’t-mess-around bottom of the barrel REO deals are coming up.

It gets worse.

Actual foreclosures (the good stuff) are down 15%. Really. These are pretty significant drops compared to last year. And it shows. The majority of my clients take a looooooooong time to find something, because if you’re looking for a heck of a deal, and I know you are, there just isn’t much for sale at any given time. And tons of buyer competition. Damn buyers are swinging from the rafters in some of these places.

Have you missed the boat? Not really. Money is still cheap as hell to rent, as shown by this weeks sub 5% 30 yr fixed rates. Anytime you can get a loan under 6%, you’re doing pretty dang well. So, we still have cheap financing and cheap housing, but the prices are starting to creep up-no joke! Inexpensive financing and still very much undervalued housing will do that!

Your takeaway is this: If you’re looking, then decide right now to really look hard and consider seriously every opportunity in front of you. This market will last until this time next year, MAYBE.

If you’re dabbling, then you’re better off hanging out at the beach or playing XBox or something. This is kind of like dropping in on big wave at Black’s: you either commit and make the best ride ever or hesitate and get smacked. Good times. Never a dull moment in San Diego real estate, but where else would you rather be?!

Posted in Uncategorized | 4 Comments »

Very cool change with FHA loans = more places available for you to look at

January 21st, 2010

FHA TEMPORARILY SUSPENDS 91 DAY ANTI FLIP RULE -

READ BELOW FOR DETAILS!

HUD No. 10-011
Lemar Wooley
(202) 708-0685

FOR RELEASE
Friday
January 15, 2010

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

“This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,” Donovan said.

In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.

Posted in Uncategorized | 2 Comments »

Seller Requires Writing an Offer Prior to Seeing the Property…What To Do?

January 5th, 2010

This pops up on occupied multifamily like we deal with here all the time to shake out the tire-kickers and avoid aggravating tenants too much, but this is one of the very rare times I’ve had to deal with it on a house, check out my email to a client of mine below. She wants to see a short sale house in Pacific Beach that has been on the market for over three years:


Ok, you do need to see this one…but what’s tricky about showing it is that the owner and bank/s are requiring an offer to be written on it prior to showing. I know, crazy right?! This is why it’s still available.

I talked the other agent into just using a letter of intent, which is a non-binding one page form that basically just says “Seller, if I make an offer on this house, it will be for X dollars. Here ya go.” I see this on multifamily all the time, but almost never on a house.

The difficulty in showing gives you a competitive advantage, as you will be dealing with fewer other buyers making offers. My suggestion is that we drive by, check the house out as well as the neighborhood, and in the meantime I’ll put some comparative past sales together to establish a price. Based on that we can see it if you still want to, and put together an LOI.

The takeaway here for you is that when a property is hard to see, it immediately cuts out 80% of the other buyers who can’t be bothered to make a little effort. Fewer buyers = fewer offers, which equals a LOWER SALES PRICE for you when the dust settles.

Posted in Uncategorized | 5 Comments »

Top 5 NEED to Know FHA Loan Changes for 2010

December 30th, 2009

If you’re planning on using an FHA loan, you need to read this. Do it right now, it’s short and to the point:

Here are the top five points:

-Focus on enforcement and lender accountability

-Reduce the maximum seller concession from 6% to 3%.

-Raise the minimum FICO score.

-Increase the up-front cash for borrower (it isn’t clear if this is an increase in the downpayment, currently a minimum of 3.5%, or requiring the borrower to pay more fees).

-Increase FHA insurance premiums.

Posted in Uncategorized | 3 Comments »

Golden Hill Duplex Update…

December 30th, 2009

This one went quick-total of 14 offers with the winning offer being all cash and “significantly” higher than the list price according to the listing agent.

I couldn’t get an exact number out of him. but if this buyer closes it, I will know in 35-40 days or so. All of this happened on the 23rd of December, which is supposed to be when the market is at it’s slowest, right!?

Posted in Golden Hill | 6 Comments »

VIDEO: If You Had Just One Opportunity To Jump On A Property Investment, JUMP ON THIS ONE!!!

December 18th, 2009

I just got back from shooting some video on a sweet little duplex in Golden Hill. List price: $234,800

Yep. You can own a solid investment property for under $300,000. Heck, even a HOUSE in this area under $300,000 is good deal.

VIDEO:

MAP: By the way, it looks like it’s really close to the 94. It’s not, the property is situated on top of a canyon above the 94.


View Larger Map

Let’s Talk Numbers:As always, these are estimates! Please do your own due diligence as well-I work very hard to present honest and conservative scenarios, but I don’t know your own personal situation!

I talked to the agent yesterday, one bs offer, nothing else as of 24hrs ago. I have not been able to reach him again today. Let’s do the numbers:

Say on the not too high, not super low side each unit rents for $850. You get off street parking, garage storage space, washer and dryer, so that should be pretty easy to get.

The list price is $234,800, I think a conservative (i.e., high purchase price) number for this is at least $265,000. So let’s do the loan at 5% assuming owner occupied financing with 20% down. A 30 year fixed principal and interest will be $1,138. Plus $221 for tax. You’re clocking in at $1,359 total.

I’m assuming this would be self managed and am not including a 7% management fee, and as this is 2-4 units, not commercial loan is required. Your gross rents are $1,700, subtract the monthly payment, and you’re left with $341 POSITIVE CASHFLOW per month. Knock off the $41 for the heck of it and insurance, and you’re still up $300 bucks per month.

If you live in one of the units, you’re at $509 per month, with insurance, $550. This is your monthly payment. Unbelievable.

Pretty cool! This place pays for itself, and if you live in one of the units, you can do it for less than it would cost to rent it!

See how this investment performs over time!

Call me if you have any questions:

Posted in Uncategorized | 2 Comments »

VIDEO: 3549 Madison Normal Heights, 92116

November 18th, 2009

Yeah, I know this is all about 2-4 units. But this house is pretty rad, and even works as a straight investment. For a price of $254,900 and four bedrooms, it’s hard NOT to make it work. I shot some video for a client of mine that has an offer in, but couldn’t see the place asap.


View Larger Map

Pretty Quick Little Drive to Adams Ave:

What’s In It This For You!?

Sometimes, just sometimes, a house can make a good investment.

Bam! You just increased your investment opportunity pool and am now in a position to make more money faster.

House and yard walkthrough:

Well if you’re into this kind of stuff, you probably already know that a 2-4 unit beats out houses almost every time. More bedrooms for the same price = more rent. The only time a house can match the deal is like this one when the price is so freaking low. And even then it has to have three-four bedrooms as in the example.

One caveat: a multi unit property you can live in one and rent out the other units, thus getting the best out of the investment and residential ownership worlds, but a house you either all in, or all out (unless you rent out rooms, but that’s another story).

Here’s some numbers for you.

They don’t include a 7% management fee, so may want to knock that off the gross rents if you’re going that route. As always, this is just an estimate, you need to consult a qualified professional. Or at least dust off that calculator.

I called this one to sell around $270,000, 20% down, 6% interest rate just like the one above. Your monthly payment with tax is $1,520. So if you live in the house, this is what you’re looking at every month. Now it is your OWN place, not sharing the lot with your tenants, so that privacy is supposed to be what you’re paying for there. I estimate this one could rent out for $2,200. Your cashflow is +$680 per month. Pretty sweet! Also has a large lot with big new shed for all your stuff.

Posted in Normal Heights | 2 Comments »

Interesting article from the SF Chronicle…are short sales getting easier?

November 4th, 2009

Well, if you use the term “easier” loosely. Still, people who work in the industry and buyers I’ve been talking to have noticed that short sales are becoming more streamlined by the banks that approve them.

Plus more and more banks are turning to short sales vs. bank owned sales (a clue: it’s cheaper for them). Bank Of America just hopped on the short sale bandwagon, and when an institution that big does something, the rest usually follow.

Check out the article, it’s good:

Fewer Short Sales Are Coming Up Short

What’s In It For You?

I’ve been saying this for months: There are only a small handful of discounted properties available in an area at any one time-and they sell within 3-8 days.

We’re not talking about national trends like the media does, we’re talking about the neighborhood you want to buy in. Unless you can pay cash OR have 20%-50% down on a conventional loan, you don’t have a chance on the bank owned properties.

HOWEVER, because of the bad reputation short sales have, there are real, live deals out there for you with these types of properties.

You will be competing with fewer buyers, far fewer “strong” buyers, and will be able to tie up a low price with the types of loans that REO sellers won’t touch.

Now that more banks are doing these and it’s becoming a faster process for buyers, you have about ninety days from now before this becomes common knowledge to the general public and more and more qualified buyers catch wind and dive on this opportunity.

Posted in Uncategorized | 1 Comment »

I know, I know: been waaaaaaaaay too long! PICS + VIDEO 1503 Dale St

October 19th, 2009

I’ll be the first to say it’s been way to long since I’ve posted. To be honest, all the ones I was going to post of late, I ended up selling. So rather than create even more competition for my clients, I sold the properties instead. The benefit to YOU is that you get actual real world case studies of what’s REALLY happening out there-plus I of course have a ton of new ones to throw in here.

Check out this bad boy:
Stormtrooper
Stormtrooper art-I guess it’s what happens in the “hip” part of town. Found it on the ancient garage door of this awesome place on Dale St:
Beech

You’ll see in the video this place is sweet. Bank owned, arguably the best neighborhood in South Park:

Catch is, it’s sold already. In six days. Doesn’t surprise me. A beautiful big old house with two extra units, a big chunk o’ land and a garage to boot. It is just in escrow, not closed yet, so I’ll let you know if it pops back up on the radar.

Stats:

List price $444,777. Built in 1911. One 2/1, one 1/1 and one 0/1.

Google Maps:

View Larger Map

Posted in South Park | 1 Comment »

Your Typical 5+ Units Deal In Pacific Beach

July 24th, 2009

You probably remember the “brass balls” post about the eight units in PB. Price was in the low to mid $900,000’s, cap rate of 9%-10%, multiplier of 10, etc, etc. Stellar deal for the beach. Added bonus is that it’s just clean title sale now, not a note sale.

Well, here is some typical pricing for multi-units in PB. Built within one year of each other, also eight units, and in North PB: $2.4 million, cap rate of 3.7%, multiplier of 19%. Almost three times the price of eight units down the street! Who cares if it’s in North PB!? The rents are almost the same!!!

The land value is not worth that much in a market where development is mostly dead: it’s all about income in relation to price. Not to mention the one HUGE thing cap rates and multipliers do not take into account: the massive appreciation you get for doing nothing on a property that you buy at deep discount. The years to come will reward you well for “buying right”. This thing on Loring is so expensive, good luck with that-not happening.

Posted in Pacific Beach | 2 Comments »

« Older Entries