Multi-Unit #1 Is Still Alive

Despite my earlier pessimistic outlook for this deal coming to fruition, it appears it now stands a good chance of happening. There is a group of investors that will be coming in to fill the funding gap that the loss of the mezzanine loan created. They still have to raise the money from their investors, but they have analyzed the deal and have a "high confidence" it can be done.I know some readers don't feel this is a good deal. Everyone is entitled...

Possible Trouble For Arizona Landlords

This is an email I received from the ACLU today and it applies directly to all landlords in Arizona.Currently, the Arizona House of Representatives is considering a bill that, if passed, would restrict housing for Arizonans, and cost the state of Arizona millions to enforce. HB 2625 would prohibit landlords from renting to undocumented immigrants. Private landlords are not trained in immigration-related document review and verification, yet this...

Time Is Running Out For Rental #1

Well, the potential renter never panned out and my rental is still empty. There have been some other people who looked at the place and, according to the property manager, the problem is with the trashy neighbors. Not only do they have a habit of throwing their trash into my yard, but apparently they don't keep their yard too tidy either. So, in an attempt to fill the place, I've lowered the asking rent back down to $750, which is what it was rented...

Fear Mongering Comes To Mortgage Commercials

Mortgage companies must be hurting for business right now because I was shocked at a commercial I heard on the radio this morning. In an attempt to get people to refinance their mortgages, it used fear-mongering tactics that would have made the President proud.The ad started off by saying that private mortgage insurance, or PMI, is required on all loans where the loan to value ratio is greater than 80%. That's true. However, the ad then went on to...

Update On Multi-Unit #1

Time for an update on my potential multi-unit investment.The short version: I don't think it's gonna happen.The longer version: The buyers have not raised enough money to be able to buy the place. They were looking to get a mezzanine loan for about $500,000 and the lender they had lined up decided not to make the loan. They are looking for a new loan or additional investors to provide the additional capital.Escrow was supposed to close at the end...

The Case For Foreclosures

I was pleasantly surprised to see an article titled The Case For Foreclosures on Slate.com the other day. Finally, someone was taking a critical look at the recent desire by Congress to "do something" about the wave of foreclosures sweeping the nation.The article doesn't touch on one of my pet peeves, namely that capitalism, by definition, requires some businesses to fail, or in this case, some loans to default and go into foreclosure. Capitalism...