Maclennan Investment Group, Inc.

925.385.8798

  • Home
  • Services
    • Commercial Property Management
    • Commercial and Industrial Leasing and Sales
      • Commercial & Industrial Properties for Sale
      • Office, Retail, & Industrial Properties for Lease
    • Individual Investors
    • Note Purchases
  • About
    • Peter Maclennan
    • Book Peter
  • Blog
  • Investments
    • Contra Costa County Duplexes, Triplexes, and Fourplexes
    • Commercial & Industrial Properties for Sale
    • Investment Properties in Central Contra Costa
    • Alameda County Duplex, Triplex, and Fourplex Invesment Properties
    • Office, Retail, & Industrial Properties for Lease
  • Articles
    • Interest Rates and Investment Property Values
    • 5 Mistakes Instant Millionaires Make
  • Contact
    • eNewsletter
  • Note Purchases
  • Commercial Loans
You are here: Home / Real Estate Investing / Real Estate Investors May Prosper from Incentives to Get the Market Moving

February 14, 2012 by Peter Maclennan Leave a Comment

Real Estate Investors May Prosper from Incentives to Get the Market Moving

Many of the largest banks are offering incentives to homeowners to short sale their house. This may provide an opportunity for real estate investors.

A house in Contra Costa County

Bank Incentives to Homeowners

CNNMoney.com is reporting that banks are offering up to $35,000 for homeowners to short sale their home.

NEW YORK (CNNMoney) — In an effort to cut their losses, banks are paying some struggling homeowners as much as $35,000 to sell their homes before they end up in foreclosure.

The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.

The banks are finally realizing that the best solution is to rip the Band-Aid off than face slow agonizing pain.

From the bank’s point of view, the offers make sense, according to Tom Kelly, a spokesman for Chase Mortgage, who would not comment on Pierce or other individual cases. “The first choice is a modification but if that’s impossible than a short sale is a faster, more efficient solution,” he said.

For the banks, foreclosure has become an increasingly difficult and expensive option. Homeowners have learned to fight the banks tooth and nail, dragging out cases for years.

And as the cases drag, expenses grow. Homeowners not only stop paying their mortgages but they stop paying property taxes and conducting normal maintenance as well. Roofs, siding, plumbing and other parts of the home deteriorate and the property loses value. By the time banks take possession, they’re out tens of thousands of dollars.

What This Could Mean for Real Estate Investors

If homeowners are incentivized to sell their homes, it could create a temporary glut of homes available for sale. As well, banks may complete the foreclosure process on more homes now that a settlement with the attorneys general has been reached. This too may put downward pressure on home prices.

Real estate investors could attempt to use this increased supply to their advantage. Interest rates are still historically low. An investor with strong income and a 25% down payment can qualify for a great mortgage on an investment home.

For many years single family homes in California did not make investment sense. Now, with prices depressed and low interest rates, an investor can by a home with a reasonable down payment and expect to get a decent cash-on-cash return. A return that is much better than the current rates of CD’s at most banks.

If you are thinking of investing in real estate and would like more information call me at (925) 385-8798.

 

Share the love:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to email a link to a friend (Opens in new window)
  • More
  • Click to share on Pinterest (Opens in new window)
  • Click to print (Opens in new window)

Related

Filed Under: Real Estate Investing Tagged With: Real Estate Investing, Real Estate Investors

About Peter Maclennan

Peter Maclennan is a Real Estate Broker at Maclennan Investment Group, Inc. a real estate brokerage and advisory firm. From novice investors to institutional property owners Peter provides tailored service to his client's needs. Call him today to discuss your real estate need at (925) 385-8798 or visit him on the web at https://www.maclennaninvestments.com. CA DRE License#01801793

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Commercial Real Estate Search

Commercial Real Estate

Top Posts & Pages

  • Boutique Real Estate Investment Group
  • Services
  • Investment Properties in Central Contra Costa

Listings

Warehouse for LeaseFor Lease! Light Industrial Warehouse 511 Wilbur Ave, A7 Antioch, CA 94509View Listing
Large Industrial Buiilding for LeaseFor Lease! Antioch Industrial Building 725 Fulton Shipyard Antioch, CA 94509View Listing

Commercial Real Estate Financing

Commercial Real Estate Financing

Peter Maclennan

Real Estate Broker
CA DRE #01801793
Twitter: @MaclennanInvest
Facebook: Maclennan Investment Group
[More …]

Topics

  • Bay Area Real Estate News
  • Benefits of Real Estate Investing
  • CA Real Estate
  • Commercial Leasing
  • Concord Real Estate
  • Contra Costa Real Estate
  • Industrial Real Estate
  • Investment Property
  • Listing
  • Martinez Real Estate
  • Mrs.' Questions
  • Real Estate Investing
  • Retirement Freedom
  • Seasons Greetings
  • Tenant Representation
  • Walnut Creek

Stay Informed!

Get notified of new listings, emerging trends, and more commercial real estate news.
* = required field

Recent Posts

  • Wishing You a Blessed Christmas & 2023!
  • For Lease! Antioch Industrial Building
  • Six Reasons Commercial Tenant’s Need an Agent…
  • Happy Independence Day!
  • Video Walk-Through of Martinez, CA Office for Lease

Company Profile

Welcome to Maclennan Investment Group, Inc., your East Bay Area real estate investment advisors. Maclennan Investment Group assists buyers and sellers of real estate maximize the investment potential of their real estate assets.

Learn More about us.
Offering real estate services in the communities of: Walnut Creek, Concord, Pleasant Hill, Martinez, Alamo, Lafayette, and surrounding cities.

Commercial Financing

Commercial Financing
Disclaimer: Information deemed reliable but not guaranteed. This site is not meant to offer legal or tax advice.

Equal Housing Opportunity

Contact Us:

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

925.385.8798

Maclennan Investment Group, Inc.
3380 Vincent Rd, Ste HUB
Pleasant Hill, CA 94523
p. (925) 385-8798
Licensed Broker in the State of California, DRE#01871809
Equal Housing Opportunity
Find us on Yelp!
Check out Maclennan Investment Group, Inc. on Yelp

Copyright © 2023 · Maclennan Investment Group, Inc.

 

Loading Comments...