creiZ (pronounced crazy or craze, whatever you prefer) is about Real Estate, my endeavors in real estate, and anything else that comes to mind regarding real estate and other interesting deals. It stands for Commercial Real Estate Investment Zest or Common Real Estate Investment Zanyness or Creating Real Experiences in Zigzags(whichever you prefer). Thanks for visiting and you can access the site directly by going to creiZ.com.
April 04, 2008
Anyone have a spare $100M laying around? or Equity Fund buys S&L home loans
I wish I had a $1 billion pool that I could tap for investing in distressed real estate over the next decade...
Anyone want to start one? I bring the sweat equity, you can bring the capital. :)
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
Opportunistic Deal of the Week - What a deal? - 7 cents on the dollar - Bear Stearns Crisis Averted With Acquisition
JPMorgan is buying Bear Stearns for the price that non-performing 2nd liens (notes) and HELOC portfolios are trading for. Incredible! And the fed is helping make it happen. Sweet deal!
JPMorgan is acquiring Bear Stearns at a huge discount of $2 per share. On Friday the stock closed at $30 per share.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
What Christmas Wreaths and Distressed or Discounted Real Estate or REOs have in common
On my way back from Safeway this morning after buying about a week's worth of milk (in other words 6 gallons, hey I've got 4 kids and it's just past noon and half a gallon is gone already... but anyway), on my way back home I passed by Michaels and saw a bunch of Christmas wreaths selling for 90 cents each. These are normally about $5 to $10 wreaths at the peak of the Christmas season. If someone or even maybe a Christmas store (you know those that only open for a couple of months at the end of the year) bought these and held them till the end of the year, they could probably make a killing. They could probably have an ROI in the few hundreds.
Rather than stopping and buying 100 wreaths (since I know my wife would not be too happy seeing 100 wreaths in the garage), I got to thinking how much the wreaths were like discounted real estate/REO properties (or in general any discounted asset that is out of season). The subprime mess (among other things) in the United States has caused a glut of residential real estate to fall out of season.
As with wreaths, residential real estate will be back in season eventually. The time frame may not be the same since wreaths will most likely be back in season in the latter part of year and residential real estate may or may not recover some, but it will recover. It always does. It is, to use Warren Buffett's words, a "high-probability event" that residential real estate will be back to where it was 1.5 to 2 years ago. It may just take 1, 2, 3 or more (or less) years to get there.
So imagine the returns those that buy now at 40 to 70 cents on the dollar will see once the residential real estate market is back up again. It may not be in the hundreds as with wreaths, but in the 30s to 50s shouldn't be too bad.
Could this be of interest? If not, I can definitely find you some wreaths that available for pennies on the dollar. You can open up your own Christmas store and you'd make a killing!
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
I am buying $10 million worth of bank-owned properties that need little to no work in Maryland (Anne Arundel, Prince Georges, Montgomery & Howard counties and Baltimore City and County) for cheap and I am wholesaling them. Wholesale prices starting at $165,000+ with retail prices of $250,000+. I will have properties in 21076, 21228, 21045, 21144, 21113, 21075, 21061, 21060, 21228, 21229 and many others. You can find more details about this great Maryland real estate deal here: http://esenai.com/real_estate_deals/66_cents_deal.pdf
Email or call me, if interested, or if you have a particular that you are interested in and if you'd like a copy of the Letter of Interest.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
What would I do if I had a spare 200K for real estate and why?
The short answer is: I'd buy a $1 million apartment complex that needs work (not too hard to find) or a small shopping center that needs work (a little more difficult to find for that price).
Some questions you may have:
Q: Why don't you buy a single family rental for cash?
A: Simple, cash is king and the more I can leverage it, the better. Why tie up 200K in one house? I wouldn't be fully utilizing one of the benefits of real estate: leverage. A key ratio that I use here is cash-on-cash return. Below is a classic (oversimplified) example that I'm sure many have seen in real estate books. (I know I have. :)
Property Type
Cash Needed
Purchase Price
Leverage
Gross Rental Income per Month
Gross Rental Income per Year
Cash-on-Cash Return after Year 1
Single Family House
$200,000
$200,000
0%
$2000
$24,000
12% (not bad)
20-Unit Apartment Building
$200,000
$1,000,000
80%
20*$500 = $10,000
$120,000
60% (wholly ratio, Batman!)
So which one looks better on paper (well, actually on the web)? Naturally, the 20-Unit Apartment Building scenario does. Of course, there are many other things that you need to consider because now you are getting into the semi-pro league, so you have to be more diligent in everything or hire someone that can help (psst, I can help :). In the apartment building game, lenders will not be as worried about your personal credit score as much as they are worried about whether the property will be profitable. It will be a factor, especially in the smaller apartment complexes, but they want to ensure you have your share of equity (i.e. cash) in the property and that its profitable. There's a lot more to investing in apartment buildings, but this is a quick summary.
Something else that you may have caught is that I would look for an apartment building or shopping center that needs work. Why? For the same reason that you would buy an ugly property, to get a bargain deal and then add significant value. One caution on this though is that there are fewer lenders that will lend on this type of property, but they're still out there. Another option for financing commercial properties that need work is to joint venture with larger investment companies. (They're out there. I've seen them.)
Q: Why don't you buy an ugly single family house to rehab and resell for cash?
A: So the single family house is not a rental and I am actually remodeling and reselling the property quickly (withing 6 months, but ideally within 3), then I may consider paying cash for it to get an excellent deal. Even so, I think I'd still lean towards longer-term income since taxes are not as high (think short-term vs long-term capital gains tax) and you have more control over the property because when doing a remodel and resell, you are at the mercy of the market especially if it's a buyer's market.
Q: Why not just invest in stocks?
A: I like stocks. They're fun to watch when prices are going your way. The problem is when they go in the opposite direction! Another issue that I have is that I really don't have any control over the stock, whereas with real estate, I do.
Q: Why not invest in a startup?
A: Now, you got me. Depending on the situation, I would rather invest in a startup, than in real estate. Personally, I haven't done it on my own. I have invested with an angel group before. Why not on my own? Because just like in real estate, there's a lot of due diligence that needs to be done to ensure that that the startup is a viable investment. Even after diligence though, nothing's ever 100% sure. One potential disadvantage is that you may not see a return (if any) for a while (think years, not months). But just imagine, owning a little piece of the next Google...
Before I digress to much further into startup land...let me say this, every individual's situation is unique. So even though what I wrote above may sound logical (or not), in your specific situation, it may not be.
***Warning-Sales Pitch***
So consult, your tax and legal professional and when they tell you that what I mention above makes sense :), call or email me and we can create your unique investment experience.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
REDUCED - Now 269k! - Shameless Self-Promotion: "You Arrive" - A short story about 5306 Wendley Rd, Baltimore, MD 21229 - Your Next Dream Home!
UPDATE: BIG PRICE REDUCTION - Was $299K - NOW $269,900! - Don't have an agent, let's work directly and save even more. Owner financing possible!
NOTE: For a detailed description, please continue reading. If you'd rather see pictures, please click here or videos.
You Arrive
A short story by Marvin Corea
You have been looking for a new home for while now. Constantly disappointed because the homes are in disrepair and don't have the amenities you desire. You come across a new house at 5306 Wendley Rd in the Westgate neighborhood of Baltimore (not too far from Catonsville). So you decide to take a look... You arrive at beauty as you walk up sidewalk to your next home on the tree-laden street. Enjoy the shade of the mature trees and the fresh air and autumn breeze. Upon arriving in front of your home, you observe the new landscaping with colorful red mulch and new everlasting evergreens. You look up and see the majestic house with four prominent original columns in the front porch, two beautiful stained-glass windows, new vinyl windows and tan vinyl siding. While you walk up the stairs to your front porch, to the left and right, you notice newly planted flowers and more red mulch. As you step onto the front porch, you imagine yourself sitting in a comfortable chair, drinking a hot chocolate on a cool autumn morning. Ah, how warming! You can't wait to get inside...
You walk through the front door of your your future home with high ceilings and fresh natural paint. Enter the hardwood foyer where you smell the fresh scent of home. Straight ahead is the kitchen. To the left, the hardwood stairs to go upstairs and to the right, the hardwood living room. You walk into the living room and see the large windows with views to the front porch. Into the hardwood dining room you go where the new chandelier accents the room perfectly and surprise...
The kitchen is open! You have a clear view of the beautiful kitchen. Great! How enjoyable it will be to spend time with family and friends in this area! Before you make your way to the kitchen, you notice a door near the rear of the dining room. You open it and are pleased to find a full bathroom with new ceramic tile and a new pedestal sink. Nice! Eagerly, you go the the kitchen area and the first thing that catches your eye are the very smooth granite countertop and the tall cinnamon cabinets. Wow! The kitchen also has large travertine tile that perfectly match everything. You see a cooktop directly in front of the breakfast bar. That's great! You can prepare your meal while enjoying time with your family and friends. The hanging lights over the cooktop accent the area well and light up the immediate cooking area. You look to the left of the cooktop and see the wall oven. (No more bending over!) Next to the oven is the new refrigerator. Then the door to the backyard. You look out of the window and see good size back yard with mature trees which you know will provide cool shade on those hot summer days. You notice that there's a door near the kitchen door to the foyer and see that it leads to the basement and laundry area. It is a full size basement and you are glad for it because you know you the extra storage will come in handy. Having the side entrance for easy access to the basement also helps.
You make your way up to the second floor where the three bedrooms are. You notice the soft new carpet throughout with one exception, the bathroom. You enter the bathroom and your jaw drops. The first thing you see when you open the door are the large travertine tiles on the floor, but more significantly, the marble shower with glass doors right in front of you! Can you believe it You open the shower's sliding glass door to touch the marble tile and you feel its smooth elegance. You can imagine yourself spending time here! You step out of the shower and see the new hardwood vanity and sconces and turn around to see the stylish almond toilet. What a bathroom! "I can definitely live with this," you say to yourself. You immediately know that you have finally arrived home.
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Enjoyed the story?
Then you will surely fall in love with the house!
Come visit the open house and make your offer this Sunday, 1PM - 2PM. (Yes, that's only 1 hour, but don't worry, we won't kick you out if you are in the house before 2PM. :)
Can't make the open house? We can't guarantee that it will still be available, but you can call your agent or Marvin Corea (owner/agent) at 240-441-5086 to schedule an appointment.
You can also view pictures (soon) of your next dream house at http://www.MyNextDreamHouse.com
View more pictures of 5306 Wendley photos and a new home slide show on PhotoBucket!
Street View of 5306 Wendley. (Your next home sits about 20 feet above street level.)
Contemporary, open kitchen and dining room
Marble shower with original stained glass window
Master bedroom with red mahagony-stained hardwood floor and original stained-glass window
Foyer with original refinished hardwood floor
Completely redone kitchen with granite counter top, travertine floor, 42 inch cinnamon wall cabinets, wall oven, cooktop and breakfast bar
Kitchen and breakfast bar view from formal dining room
About the Neighborhood (source: Live Baltimore Home Center) The Westgate Community is uniquely situated in Baltimore City and Baltimore County. The city portion begins in West Baltimore, one block west of Ten Hills. City street names include Westgate, North Rock Glen, Wendley, Brabant, Mardrew, Stamford, Kingston, and Mallow Hill. The county portion is part of Catonsville.
About the Westgate Community Association (source: Westgate Community Association) Our community association was incorporated in September 1931. Two general meetings are held each year, in May and October. The association board of directors meets monthly, with the exception of July and August.
The community association board works closely with both City and County officials in community revitalization and crime prevention efforts as well as encouraging appropriate development in Westgate and adjacent communities. Board members act as liaisons with the Southwest Development Committee and advisory boards for the MTA and State Highway Administration.
A community newsletter is distributed door-to-door at least quarterly to keep all residents abreast of the activities of the association and community news. Annual dues help support newsletter printing, upkeep of Westgate Park at North Bend, Neighborhood Watch/Citizens on Patrol (NW/COP) and a host of community activities.
The community association sponsors annual events such as the Easter egg hunt, Santa's visit, lawn and garden club functions and community picnic, as well as twice-yearly park cleanups and yard sales.
Community Garden Club The purpose of the Westgate Garden Club is to educate members and our neighbors about horticulture, emphasizing low-maintenance and environmentally-responsible gardening practices. We also maintain all the Westgate common areas.
Monthly meetings are held September through May, except January and February, at members' homes. Members and guest speakers have presented information on pond building. landscape architecture, forgotten pollinators, herbal lore, soil science, lasagna gardening, bulbs, houseplants and more. Contact Garden Club President, Janet Gross, 410-719-6637, or email, jangross@bcpl.net and check the website events link for upcoming schedules.
The Club sponsors a plant swap and wreath-making. These are free of charge and open to the community. They are held on Sunday afternoons and include refreshments. Westgate Beautification We help to clean and maintain Westgate Park at North Bend and have landscaped the sign-beds there and on Edmondson Avenue. We also maintain the Route 40 plantings, supplementing the state crews, and have created a woodland garden in the northeast corner of Westgate Park at North Bend.
The plants for the woodland garden and most of those at the sign-beds have been provided through a free program sponsored by Civic Works in Baltimore City. Civic Works operates a perennial nursery, obtaining castoffs from commercial nurseries which are then provided free of charge for community gardens. The sign-beds were both financed through grants from Parks and People Foundation of Baltimore. Garden club members supplement the plantings with both donated material from our own gardens and the purchase of perennials. For more information on upcoming meeting topics and special events, contact Janet Gross at 410 719-6637 or jangross@bcpl.net.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
64 Comal St - east Austin rehab - now under contract
We went into escrow last week and assuming all goes well, will close by the end of August. I'm sure the buyers will be able to do great things with this property. (fortunately and unfortunately, it has been a learning experience for me.) more to come... (I expect my next post about this property will be at the end of August and titled something like SOLD!)
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
just bought another house for remodeling purposes - 5306 Wendley Rd, Baltimore, MD 21229
UPDATE: Take a look at the new and improved 5306 Wendley house. Please tell us what you think.
We went to closing at 3pm at Cross Country Settlements (not recommended) of Hanover, MD. (This is another Baltimore remodeling job.) I must say that this is one of the faster closings I've ever been to. We were finished signing our last papers around 3:35pm! More to follow...
BTW, let me know if you have any leads on the Alameda property. I am working with agents and offering a FREE plasma TV at closing.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
Thank you for contacting Esenai Capital - Value-Add Commercial Real Estate Financing
We will contact you shortly regarding your request.
If you believe you have arrived at this page in error and are interested in commercial real estate financing, please see the commercial real estate financing page.
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
Eligible Property Locations: Major markets in the United States.
Deal Size: Above $500,000.
Please complete the form below.
The intent of the following form is to provide Esenai Capital with preliminary information regarding your financing needs. Once this simple form is submitted we will contact you within 24 hours to discuss your needs in greater detail:
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
International Real Estate Investing, Management and Consulting
FOCUS
Our primary area of focus is in finding opportunistic (i.e. value-add or as-is) multi-family real estate properties in the United States where we can increase the value of a property by 25%-50% (or more) through physical and managerial improvements.
PARTNERING
We are interested in partnering with institutional, international and other accredited investors that are looking for higher yields than typical turn-key real estate investment properties can provide. Whereas a NNN leased single tenant office building can provide cash-on-cash return in a major market of 10% or less, we are able to obtain cash-on-cash returns of 20% or better (i.e. twice as much as an average cash-on-cash return).
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If you want to find out more about this blog post or what Esenai (my real estate and technology consulting company) can do for you, call me at 240-441-5086 or email me. (just remove the "-spamnot" from the email address.) Marvin a.k.a. eMarv
DISCLAIMER: The videos below are automatically provided by YouTube to the blog and do not necessarily reflect the blog's or Esenai Corporation's views.
