James Yoakum

If you've ever stayed up late watching infomercials and thought "maybe I could make millions in real estate..." then you'll appreciate this website: www.landlordmentor.com. It seeks to provide much of the information that you would learn from the Real Estate Riches style programs without any of the gimmickry or sales pitches (it's a purely free, informational website written by a guy in Texas). While the site doesn't claim to be for everyone, it does give you in depth information about one successful investor's experience and does a good job of setting expectations at the right level - specifically that you can make lots of money in real estate, but it requires hard work and dedication, just like anything else. I also think the way this investor writes is much more entertaining than most used-car pitch get rich quick programs.

I'm still working my way through the website now, reading what he has to say and thinking about how it does or doesn't apply to the markets I work in (mainly Philadelphia). I'd be happy to discuss the finer points of real estate investing and the particular things to watch out for in the Philly market with anyone who's interested, just give me a call or email.

Over the past couple of weeks events have conspired to give first-time home buyers a second chance at snagging the deal of a lifetime! First the $8,000 tax credit was extended through April 30th of 2010 and expanded to include a tax credit for some repeat buyers, letting them in on the fun a bit as well. Additionally, mortgage rates have again dropped solidly below 5% - one banker I work with is quoting 30-year fixed-rate mortgages at 4.875% this morning, and they offer even lower rates for qualified first time buyers. Finally, there is still an abundance of housing inventory available, at least in the Philadelphia neighborhoods where I work. Everything from bargain-basement fixer-uppers and distressed condos to fully renovated or new construction townhomes, duplexes, or triplexes.

If you've been on the fence about buying or if you thought you missed the boat think again. I'd be happy to discuss your personal situation and help you decide whether or not it makes sense for you to buy in this once-in-a-lifetime market.

According to a survey from Move.com the percentage of homebuyers who classify themselves as investors has doubled since March - going from 5.6% to 12.1%. While we could certainly argue about their survey methods and definitions of investors, I think that this survey does capture the general trend of investors 'coming back to the market' after a period when it just didn't make much sense for many smart investors to be closing deals. It's not that the investors went away, or weren't looking for deals, it's just that they couldn't actually get to the closing table.

Now the number of deals that make sense is increasing, for at least two reasons. One reason is that investors are getting a better sense of when and how the economy will recover. For several months late last year and earlier this year the economy looked like a bottomless pit and when you can't predict future economic growth it's hard to be confident enough to invest even at fire-sale pricing. The second reason that more investors are getting to the closing table lately is that 'fire-sale' pricing is becoming more common, even if it's still not as common as some would like. This is luring cautious investors off the sidelines. As more distressed owners (often banks with REO portfolios) realize that they are going to be the ones to eventually take a hit they are becoming more motivated sellers, preferring to get out of their real estate positions sooner rather than later.

For the savvy investor we've reached the beginning of the 'bottom' that we've all been waiting for. Start looking now and you should find plenty of great opportunities over the next 6-24 months. When you start to surveys showing that 25-30% of homebuyers consider themselves investors you should probably start slowing down or selling. Part of the reason for the real estate crisis was, after all, that seemingly every-other home sale was to an 'investor,' many of whom ran up prices without regard for basic fundamentals.

The extension and expansion of the first-time buyer tax credit (now for some other buyers as well) passed through the Senate yesterday and should get through the house and onto the President's desk soon. The details of the expansion are:

$8,000 tax credit for first time buyers extended to those under contract by April 30, 2010 with 60 days to close after that.

Income limits increased to $145,000 for single taxpayers and $245,000 for married couples, with phaseouts beginning at $125,000 and $225,000 respectively.

Eligibility for up to $6,500 in tax credit is extended to repeat buyers who have lived in their home for at least five of the past eight years. These are typically the move-up buyers who will be selling to first-time buyers so this should really help to get the market moving for a few months (and of course lead to a bubble that has to deflate come next summer).

To be eligible for either credit the price of the home being purchased must be under $800,000.

If you're thinking of buying or selling this extension creates a limited-time window where the market should be quite active - strike while the iron is hot.

It may sound like a trick given that it's the day before Halloween, but this house in Darby, just outside Philadelphia could turn into a treat for a lucky essay writer. The owner is conducting an essay contest with a $100 entry fee - the prize for the best essay a free house. Check out this Daily News article for details.