I basically did what I planned for 2008: study foreclosure, observe foreclosures, participate in foreclosures.
What I did not plan is that I could not get mortgages on the properties I bought, so I had to sell them.
1. In the beginning of the year, I subscribed to a foreclosure list, and went to foreclosures to observe and learn the jargons.
2. I started participating in foreclosures in May. From May to September, I went for five trips and bought four properties
3. I tried to get mortgages but could not, so to continue, I have to sell some. So I put three on the market.
4. I decided to pull one off the market and got it rented. I got it rented. So I had two rented, two for sale.
5. I finally sold and closed one before the year end, which almost ended in a failure.
6. My second sale is expected to be completed soon. It was expected to be completed much earlier, but like the first one, it has been delayed one time after another.
7. I have close to zero exposure to the stock market, so I have no loss on that end. I did not participate in the bull run, either.
8. B town's rental had serious vacancy problem because the biggest factory in town was sold and the transition was chaos. Lots of workers left town because of this so vacancy in town was(and still is) sky high.
9. C town's rental was very stable except for the one unit that had leaking problem and it has been vacant for 15 months because strata/insurance/repair issues.
10. T town's rental had been very good up until the last two months of the year although it is still good. The major concern is the fear of coal mine closure because of the commodity market crash.
11. Interest rate has been dropping like a rock, greatly helping the flexible mortgages and LOC.
12. Local RE market started falling since the second half of the year, falling much faster near the year end. Next year is going to be tough.
13. I put some units in B town and C town for sale. Three months passed and nobody even looked at them. I do not have to sell in C town, but I do want to sell in B town.
In Summary: I did not make much progress in 2008, although I opened a new field in foreclosures. In the RE markets I am in, although the prices have not dropped much, sales volumes dropped significantly. I would think the overall property values probably dropped five percent in 2008.
展望2009
1. It is going to be a tough year, so safety first;
2. Local RE market is going to drop, probably faster and more than people think;
3. Global economy is a worry;
4. Bank cuts LOC? This is a big concern;
Plan for 2009:
1. Continue buy/sell foreclosures, not so much as a way to make money, but rather to preserve cash.
2. Improve occupancy in B town; Maybe change PM?
3. Get out of foreclosure and into multifamily toward the end of the year if multifamily cap rate and down payment requirement reaches expectation.
4. Look at buying a small business.
