Mixed messages on loans

Commercial looks good, residential bad
Bruce Spence - The Record - Friday, Jul 28, 2006
Although residential mortgage-loan default activity has been on the climb in recent months, the commercial-loan delinquency rate statewide remains well below one half of 1 percent. That's half the delinquency rate of a year ago.

This points to a strong state economy, said Peter Ulrich, analyst for the California Mortgage Bankers Association's new report.

The survey found that in the second quarter of this year, 99.91 percent of California commercial real-estate loans serviced by 17 mortgage banking firms were current or only one payment delinquent.
Read the whole story...

Know the area's GRM...

Hello there,
Chun Liu here with Team WOWWHEE.com.

One of the things to add to the previous post is to know the area you are purchasing and learn the approximate GRM that other properties sell for in the area!

For example, Long Beach has different areas such as Bixby Knolls and north Long Beach and downtown Long Beach and east Long Beach and Belmont Heights and Belmonth Shores etc. Each of those areas will have investment buildings available that should be close in GRM in the final sales prices.

Knowing what the GRM is will help you make your business decision on whether or not to purchase the income property in that specific location with the expected income coming in. Plus, once you know the GRM, you will know if the general area is expecting a cash on cash return or primarily tax deduction purpose purchase or ?...

Bottom line is that the more you know, the better off you are in your investment. Like doing the homework before buying stocks, do the homework before buying investment properties!

Like usual, please consult a professional in real estate to help you sort everything out. Thanks for stopping by!

The best investment of time you'll ever make...

Welcome to the Southern California Real Estate Investment blog. Several top commercial and investment real estate agents combined their talents to form this informative blog for investors and aspiring investors. We encourage your participation in the comments and look forward to helping you understand and to feel comfortable with the "language" of real estate investment.