Apartment Investor's Advisor November 2008 EZine

Agent photo

Katherine J. Higgins

The Market Leader in North Bay Apartments

Investment Broker

Bradley Real Estate - Luxury Division

(415) 721-2595 office

(415) 302-7730 cell

(415) 721-2596 fax

851 Irwin Street, Suite 104

San Rafael, CA 94901

www.khiggins.com

Apartment Investor's Advisor

November 2008 EZine

Dear Investors,

The majority of investor activity here in Marin County is taking place in the depressed residential housing market. This includes homes and condos that were purchased in 2004-2007 with 100% financing and are now either upside down and being offered as short sales or have been foreclosed on by the lenders.

As of today, there are 102 distressed properties being offered for sale in Marin, with an additional 103 pending and over 150 sold in the past six months. Why are these properties such bargains in today's market? Not only are they selling for 50 cents on the dollar, but they can be rented out at today's premium rental rates.

The majority of the properties are located in San Rafael and Novato, with perhaps 60% condos and the remaining single family homes. There are distressed properties in other locations, too, like high end areas of Mill Valley, Tiburon and Greenbrae. In order to locate the properties you need to work with a knowledgeable broker as these properties are seldom advertised or promoted as foreclosures or short sales.

Other investments that are selling well are smaller apartment complexes in central Marin that are now being offered at 13 times rents. At those gross rent multipliers lender required downpayments are reduced from 35% to 30%, and with a little nudge in the rents by the new owner returns are again approaching an acceptable 5%.

Smaller, entry level investments that include 2-4 units, are sitting on the market now if priced from the mid $700's and up. Today's prices for buildings this size are in the $600's. All those pending in the multiple listing are in the mid $600's or lower.

Listed below are current inventory being offered by my office. If you would like to explore the distressed property market opportunities please call me at 415-302-7730 and we can talk about your search.

Regards,

Katherine J. Higgins
Investment Broker
Mobile: (415) 302-7730

Below is the current inventory available through my office. For these and other investment opportunities, please call me anytime on my cell at (415) 302-7730.