St. Louis real estate investing update.

It has been a while since my last blog post and a lot has happened since then. We have finish and/or sold several big jobs we were rehabbing in St. Louis city, including the one on Missouri, Nebraska, Saint Vincent and Washington. We are close to wrapping up some others and just getting started on some more. Most of the retail homes we are listing are selling within the first month.

Many of my followers remember me from Memphis, where we did mostly turnkey whole sale deals. Pretty much all of those Memphis deals back then were rentals. When we made the move to STL a few years ago, we mostly did retail flips and partnered with some clients on rehab-hold multi family units.

Well now, in addition to the retail flips and multi units in St. Louis, we are really stepping up our wholesale game once again. These wholesale properties may or may not be turn key, most likely they will not be, but we can still do the rehabs for you if you like.

I used to think that Memphis was a better rental market, but now that I've spent more time in STL I think otherwise.

The rent amount is just about the same. The price of the homes are comparable. But to me the biggest difference is that I believe that in St. Louis, you are more likely to collect rent. I managed about 12 units up here for about 3 years and never had an issue with collecting rent. I leased several other units too and from what I know those units haven't been any problem either. Another positive, and this really may be the biggest one, is that there is less theft in St. Louis. This means that your copper, water heater, hvac, appliances, and other things of value most likely will NOT get stolen out of your house. In Memphis, just about every house we had, no matter which part of town those things got stolen.

There is a lot more money for you to make in St. Louis. I hope you will give us a shot.

Remember to sign up for "The best wholesale deals ever" if you haven't already done so at JDSPropertiesSTL.com

Check out the before and after video of Saint Vincent too.



And after below...There is some nice landscaping there now, but that went in after we shot the video.

Moving to the Lou

Just a quick update on what is going on at JDSP. Around the middle of 2013, we moved our entire operation to St. Louis MO. We will no longer be selling those wonderful turnkey deals in Memphis TN. Instead we will offer outstanding products and service in St. Louis MO, which we believe is a much better real estate market in terms of appreciation, cash flow, retail sales, and value.

We currently have 8 properties that we are rehabbing and 4 on the retail market. We also have one wholesale deal, which is a duplex , located at 2927 California 63118.

Of the 4 properties on the retail market, one is under contract and we expect the others to be soon.

I will keep you posted as to what is going on with all our properties and future deals so stay tuned.

2012 home sales: Best since 2007

By Chris Isidore @CNNMoney
Posted by JDS Properties Memphis/St. Louis
The leader in quality, low priced real estate investments.
www.jdspropertiesmemphis.com

Steady December home sales capped the best year for the U.S. real estate market in five years, according to an industry trade group report Tuesday.

The National Association of Realtors said that December sales of previously-owned homes came in just slightly below November's sales pace, but up 12.8% from a year ago. That brought full-year sales to 4.65 million, up 9% from 2011 and the best year for home sales since 2007, when there were 5 million homes sold just before the start of the recession.

Sales are being helped by a combination of strong market fundamentals -- near record low mortgage rates, lower unemployment and a rebound in home prices, all of which are bringing in buyers into the market who had been waiting for it to hit bottom. The mortgage rates and years of depressed home prices have also combined to create the most affordable housing market on record, according to the Realtors group.

And the Realtors are predicting strong sales should continue into 2013 and beyond. It has a forecast for 5.1 million existing home sales this year, and 5.4 million next year.

The improved demand for homes in December led to the inventory of homes for sale to fall to 1.82 million homes on the market, the lowest supply since January 2001. One factor in tightening supplies is a drop in foreclosures and other distressed home sales, which made up only 24% of home sales in December compared to 32% a year ago. The tighter supply, and the drop in distressed sales, have helped to lift home prices so that the median sales price for the year rose to $176,600, up 6.3% from 2011. That's the biggest gain in prices in since the bubble year of 2005.

If It Were Easy, Everyone Would Do It

JDS Properties Memphis/St. Louis
The leader is quality, low cost real estate investment.
www.jdspropertiesmemphis.com

If It Were Easy, Everyone Would Do It
by MICHAEL ZUBER on JANUARY 8, 2013

The title of this blog post happens to be one of my favorite quotes about real estate investing. I have had to repeat it to myself with increasing consistency lately.

Why?

The simple reason is that the 2013 real estate investing environment is a lot different than the environment from 2008 to early 2012. For nearly four years straight – finding profitable deals was almost too easy. We were earning 20% return on capital before private financing was in place and normally 80% return after placing a passive investor in first position.

Looking back I freely admit it was easy, fun and very profitable. However, as we start a new year it has become painfully clear that 2013 will be a very different investing year for several reasons.

The supply and demand picture has changed drastically. Around 2009 we would bid on 5 properties for every one we secured and we were very picky with our offers and selections. As we enter 2013 we haven’t found a single family house deal we’ve liked for several months. In fact most of the deals we have seen lately are 20 to 30K overpriced in our opinion.

This has been caused by a dramatic fall in available inventory of distressed properties in my investing market. We used to find 20 to 30 new listings a week in our little sub market and today maybe 1 to 4 a week. On the demand side we used to feel like we were one of maybe ten investors looking for deals in our market but today it feels like we are one in a thousand. So with supply falling by 80% and demand increasing by say 1000% – what has to happen to prices?

Simple: prices have to go up which will drive down yields or return on capital which is our main driver for investing. Hence, I have to repeat: If it were easy everyone would do it!

I believe we are at the cusp of several years of a positive feedback loop around real estate. I heard once that when investing in real estate you are choosing an industry that runs in 10 year cycles (peak to peak) while investors only have a five year memory.

Given that dichotomy, and the fact we are 5-6 years past the peak, new investors are going to start looking at real estate again as the press starts repeating over and over again that home values have “risen X % this month” or year. As more individuals start to jump in, demand will rise along with prices. This positive feedback loop will go on for years and if you own investments it will be fun to watch. The challenge with this reality is it is a lot more fun and profitable to be a contrarian and invest in properties when everyone hates them than to invest in a new purchase when everyone is chasing the same deal and willing to pay almost any price to get a property.

I’ll repeat again: If it were easy everyone would do it.

Real estate investing should never be as easy as it was in the period from 2008- Early 2012. I believe 2013 is just the start of another 5 year swing and this time to the upside. The folks that invested wisely prior to 2013 will be richly rewarded. The investors that work hard and find solid deals in 2013 will be richly rewarded as we have only begun to see the swing to the upside – in my opinion.

Good Investing

Be Happier: 10 Things to Stop Doing Right Now

CHECK OUT OUR NEW LOOK WEBSITE WWW.JDSPROPERTIESMEMPHIS.COM

BY Jeff Haden
Be Happier: 10 Things to Stop Doing Right Now
Sometimes the route to happiness depends more on what you don't do.

Happiness--in your business life and your personal life--is often a matter of subtraction, not addition.

Consider, for example, what happens when you stop doing the following 10 things:

1. Blaming.
People make mistakes. Employees don't meet your expectations. Vendors don't deliver on time.
So you blame them for your problems.
But you're also to blame. Maybe you didn't provide enough training. Maybe you didn't build in enough of a buffer. Maybe you asked too much, too soon.
Taking responsibility when things go wrong instead of blaming others isn't masochistic, it's empowering--because then you focus on doing things better or smarter next time.
And when you get better or smarter, you also get happier.

2. Impressing.
No one likes you for your clothes, your car, your possessions, your title, or your accomplishments. Those are all "things." People may like your things--but that doesn't mean they like you.
Sure, superficially they might seem to, but superficial is also insubstantial, and a relationship that is not based on substance is not a real relationship.
Genuine relationships make you happier, and you'll only form genuine relationships when you stop trying to impress and start trying to just be yourself.

3. Clinging.
When you're afraid or insecure, you hold on tightly to what you know, even if what you know isn't particularly good for you.
An absence of fear or insecurity isn't happiness: It's just an absence of fear or insecurity.
Holding on to what you think you need won't make you happier; letting go so you can reach for and try to earn what you want will.
Even if you don't succeed in earning what you want, the act of trying alone will make you feel better about yourself.

4. Interrupting.
Interrupting isn't just rude. When you interrupt someone, what you're really saying is, "I'm not listening to you so I can understand what you're saying; I'm listening to you so I can decide what I want to say."
Want people to like you? Listen to what they say. Focus on what they say. Ask questions to make sure you understand what they say.
They'll love you for it--and you'll love how that makes you feel.

5. Whining.
Your words have power, especially over you. Whining about your problems makes you feel worse, not better.
If something is wrong, don't waste time complaining. Put that effort into making the situation better. Unless you want to whine about it forever, eventually you'll have to do that. So why waste time? Fix it now.
Don't talk about what's wrong. Talk about how you'll make things better, even if that conversation is only with yourself.
And do the same with your friends or colleagues. Don't just be the shoulder they cry on.
Friends don't let friends whine--friends help friends make their lives better.

6. Controlling.
Yeah, you're the boss. Yeah, you're the titan of industry. Yeah, you're the small tail that wags a huge dog.
Still, the only thing you really control is you. If you find yourself trying hard to control other people, you've decided that you, your goals, your dreams, or even just your opinions are more important than theirs.
Plus, control is short term at best, because it often requires force, or fear, or authority, or some form of pressure--none of those let you feel good about yourself.
Find people who want to go where you're going. They'll work harder, have more fun, and create better business and personal relationships.
And all of you will be happier.

7. Criticizing.
Yeah, you're more educated. Yeah, you're more experienced. Yeah, you've been around more blocks and climbed more mountains and slayed more dragons.
That doesn't make you smarter, or better, or more insightful.
That just makes you you: unique, matchless, one of a kind, but in the end, just you.
Just like everyone else--including your employees.
Everyone is different: not better, not worse, just different. Appreciate the differences instead of the shortcomings and you'll see people--and yourself--in a better light.

8. Preaching.
Criticizing has a brother. His name is Preaching. They share the same father: Judging.
The higher you rise and the more you accomplish, the more likely you are to think you know everything--and to tell people everything you think you know.
When you speak with more finality than foundation, people may hear you but they don't listen. Few things are sadder and leave you feeling less happy.

9. Dwelling.
The past is valuable. Learn from your mistakes. Learn from the mistakes of others.
Then let it go.
Easier said than done? It depends on your focus. When something bad happens to you, see that as a chance to learn something you didn't know. When another person makes a mistake, see that as an opportunity to be kind, forgiving, and understanding.
The past is just training; it doesn't define you. Think about what went wrong, but only in terms of how you will make sure that, next time, you and the people around you will know how to make sure it goes right.

10. Fearing.
We're all afraid: of what might or might not happen, of what we can't change, or what we won't be able to do, or how other people might perceive us.
So it's easier to hesitate, to wait for the right moment, to decide we need to think a little longer or do some more research or explore a few more alternatives.
Meanwhile days, weeks, months, and even years pass us by.
And so do our dreams.

Don't let your fears hold you back. Whatever you've been planning, whatever you've imagined, whatever you've dreamed of, get started on it today.
If you want to start a business, take the first step. If you want to change careers, take the first step. If you want to expand or enter a new market or offer new products or services, take the first step.

Put your fears aside and get started. Do something. Do anything.
Otherwise, today is gone. Once tomorrow comes, today is lost forever.
Today is the most precious asset you own--and is the one thing you should truly fear wasting.

www.jdspropertiesmemphis.com

BY Michael Shermer

Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000? Assume for the moment that prices of goods and services will stay the same.

Surprisingly — stunningly, in fact — research shows that the majority of people select the first option; they would rather make twice as much as others even if that meant earning half as much as they could otherwise have. How irrational is that?

This result is one among thousands of experiments in behavioral economics, neuroeconomics and evolutionary economics conclusively demonstrating that we are every bit as irrational when it comes to money as we are in most other aspects of our lives. In this case, relative social ranking trumps absolute financial status. Here’s a related thought experiment. Would you rather be A or B?

A is waiting in line at a movie theater. When he gets to the ticket window, he is told that as he is the 100,000th customer of the theater, he has just won $100.
B is waiting in line at a different theater. The man in front of him wins $1,000 for being the 1-millionth customer of the theater. Mr. B wins $150.

Amazingly, most people said that they would prefer to be A. In other words, they would rather forgo $50 in order to alleviate the feeling of regret that comes with not winning the thousand bucks. Essentially, they were willing to pay $50 for regret therapy.

Regret falls under a psychological effect known as loss aversion. Research shows that before we risk an investment, we need to feel assured that the potential gain is twice what the possible loss might be because a loss feels twice as bad as a gain feels good. That’s weird and irrational, but it’s the way it is.

Human as it sounds, loss aversion appears to be a trait we’ve inherited genetically because it is found in other primates, such as capuchin monkeys. In a 2006 experiment, these small primates were given 12 tokens that they were allowed to trade with the experimenters for either apple slices or grapes. In a preliminary trial, the monkeys were given the opportunity to trade tokens with one experimenter for a grape and with another experimenter for apple slices. One capuchin monkey in the experiment, for example, traded seven tokens for grapes and five tokens for apple slices. A baseline like this was established for each monkey so that the scientists knew each monkey’s preferences.

The experimenters then changed the conditions. In a second trial, the monkeys were given additional tokens to trade for food, only to discover that the price of one of the food items had doubled. According to the law of supply and demand, the monkeys should now purchase more of the relatively cheap food and less of the relatively expensive food, and that is precisely what they did. So far, so rational. But in another trial in which the experimental conditions were manipulated in such a way that the monkeys had a choice of a 50% chance of a bonus or a 50% chance of a loss, the monkeys were twice as averse to the loss as they were motivated by the gain.

Remarkable! Monkeys show the same sensitivity to changes in supply and demand and prices as people do, as well as displaying one of the most powerful effects in all of human behavior: loss aversion. It is extremely unlikely that this common trait would have evolved independently and in parallel between multiple primate species at different times and different places around the world. Instead, there is an early evolutionary origin for such preferences and biases, and these traits evolved in a common ancestor to monkeys, apes and humans and was then passed down through the generations.

If there are behavioral analogies between humans and other primates, the underlying brain mechanism driving the choice preferences most certainly dates back to a common ancestor more than 10 million years ago. Think about that: Millions of years ago, the psychology of relative social ranking, supply and demand and economic loss aversion evolved in the earliest primate traders.

This research goes a long way toward debunking one of the biggest myths in all of psychology and economics, known as “Homo economicus.” This is the theory that “economic man” is rational, self-maximizing and efficient in making choices. But why should this be so? Given what we now know about how irrational and emotional people are in all other aspects of life, why would we suddenly become rational and logical when shopping or investing?

Consider one more experimental example to prove the point: the ultimatum game. You are given $100 to split between yourself and your game partner. Whatever division of the money you propose, if your partner accepts it, you each get to keep your share. If, however, your partner rejects it, neither of you gets any money.

How much should you offer? Why not suggest a $90-$10 split? If your game partner is a rational, self-interested money-maximizer — the very embodiment of Homo economicus— he isn’t going to turn down a free 10 bucks, is he? He is. Research shows that proposals that offer much less than a $70-$30 split are usually rejected.

Why? Because they aren’t fair. Says who? Says the moral emotion of “reciprocal altruism,” which evolved over the Paleolithic eons to demand fairness on the part of our potential exchange partners. “I’ll scratch your back if you’ll scratch mine” only works if I know you will respond with something approaching parity. The moral sense of fairness is hard-wired into our brains and is an emotion shared by most people and primates tested for it, including people from non-Western cultures and those living close to how our Paleolithic ancestors lived.

When it comes to money, as in most other aspects of life, reason and rationality are trumped by emotions and feelings.

Single-Family Rental Houses Draw Millions Impacted by Foreclosure Crisis

By Teke Wiggin http://www.jdspropertiesmemphis.com

After splitting from her husband, Tami Wingfield couldn't afford to keep up with the mortgage on the home that they had shared. The monthly $1,600 bill was too much for her to bear alone, and in 2008, she lost the house to foreclosure. Like many people who lost their homes in the housing collapse, Wingfield decided the next logical step was to rent. But that didn't mean she had to give up the lifestyle of a homeowner. Wingfield and her three children have managed to stay in a four-bedroom single-family house all to themselves – they just don't own it. They're part of a new class of American renters that has emerged in the wake of the housing bust: people who lost the houses they owned and are now renting single-family homes. Ironically, many of these rental homes are a reflection of the troubles that once plagued the renters. They used to be owned by other families who lost them in the downturn. Now they're owned and rented out by investors who purchased them at a discount. At least 1.75 million renters in the U.S. have gone down the same path as Wingfield, according to data from analytics firm CoreLogic. Wingfield rents her $1,000-a-month home in Goodyear, Ariz., from The Empire Group, a development and investment firm that bought it as a foreclosure. She has a backyard where she's planted a garden, and she's on a desirable suburban street lined with quaint homes just eight miles from the house that she owned with her husband. It's as if hardly anything has changed. Feeling Part of the Community "I am able to provide my daughters and myself a nice home," Wingfield said. "I don't have to find a parking spot when I come home, tired from working double shifts at the hospital. I pull my car into the garage and walk into my house." Being able to maintain a homeowner's lifestyle, even as a renter, has also helped her continue to feel like a part of her community. "You can establish a place in the neighborhood -- get a school for your children," Wingfield said. "The buses run in the neighborhood.... There's parks and sidewalks to walk your dog." Empire, which owns about 1,000 homes in the Phoenix area, spends close to $7,000 a pop to restore each of the distressed properties that it purchases. Its average rental home is 2,100 square feet and goes for $1,050 a month, said Geoffrey Jacobs, a principal at the company. Jacobs said Empire, which started off as a developer, "put on the investor hat" in 2009. "It was an opportunity for us to take advantage of something we never thought we'd see again," he said. Investors provide the capital that Empire needs to convert homes into rentals, and the company turns a profit by taking a cut of the monthly rents that it collects and distributes to investors. Empire is just one of many firms that are snapping up bargain homes and leasing them to families like Wingfield's. And with rental rates soaring nationwide, the business strategy is currently lucrative. As of January, investors are raking in an average 8.6 percent return on their investments annually, according to CoreLogic. That's a 3 percent increase from 2006. And there are 21 million units in the country's single-family rental inventory, putting the size of the market at a whopping $3 trillion, CoreLogic said. That might be a good thing, since millions more borrowers are headed toward foreclosure and may flood the rental market. If that happens, it could continue to push up rental prices and lure more investors into the market, experts have said. http://realestate.aol.com/blog/2012/07/19/single-family-rental-houses-draw-millions-impacted-by-foreclosur/?icid=maing-grid7%7Cmain5%7Cdl9%7Csec1_lnk3%26pLid%3D182472