Subject: Paradise Valley Weekly - 14 New Listings, Jaw Dropping Data on Lending Returns by State

Paradise Valley Weekly
303rd Edition - Mar 12, 2016

I present a bit of a bombshell to you this week, that represents a tremendous opportunity. It starts with "peer to peer" lending...

If you're not involved in peer to peer lending -- and relatively few people are at this point -- then you are missing out on one of the most important trends in modern finance. The impact it currently has on real estate is relatively small, but the rate at which is growing is extraordinary. Some of the better known companies in the space are Lending Club and SoFi, and they've been attracting attention from the C suite of JP Morgan on down.

For real estate investors, it's like when the first internet stock brokerage opened -- i.e. a whole new ballgame. Peer to peer lenders are providing us with an extraordinary data that was never available to individuals before.

So, here's where it gets juicy: you can slice and dice all the statistics about loans made by all sorts of data. One of them is turning out to be quite a doozy...

The state in which a borrower lives has a HUGE impact on their likelihood of defaulting on a loan. Therefore, the returns to investors can vary massively state by state.

For example, in 2014 the ROI on Lending Club outstanding loans in Indiana was 12.44%...

...in Florida it was just 7.17%! 

As any rational investor would do, lenders are taking note and effectively redlining certain states (click here for details). The ethical implications are massive, and the federal government is certain to get involved at some point.

For now, we can learn quite a lot about where to invest our money. It stands to reason that if the loan default rate is very high in Florida, it's probably not the place one wants to be purchasing investment property.

You may be curious about Arizona's performance, and it was in the middle of the pack. Not nearly as high as the outlier Indiana, nor as bad as laggard Florida, in line with many other states at 8.6%. 

Last year I went to the Midwest to check out investment properties, and I'll be doing the same again this year. This Lending Club data has encouraged me to redouble my efforts.

Bank foreclosures are still obtainable there, one just has to know how to source them. I've been laying that foundation for quite some time, to diversify my portfolio. If you may be interested in learning about such opportunities, please click here

In closing, peer to peer lending data is incredibly valuable, and it may not be freely available to us all for longUse this data while you can, and evaluate what's happening in the states where you own properties. 

If 2014 default rates were high where you own property, it stands to reason they'll get a lot higher when the real estate market cycle changes -- 2014 was a strong year.

If you'd like some help accessing and analyzing the peer to peer data, I would be happy to walk you through it -- please reply to this email, or call me at (480) 442-7325.

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Closings
After the huge closing numbers of the past few weeks, the market took a breather last week: just 4 properties totaling $7.3 million. 

Listings
This week brings just 14 new listings, with 3 standouts:

Privately Gated Territorial
This charming 5 bedroom home will appeal to the person who wants Southwest style without the headaches of old construction. Built in 1999 it has high ceilings, a 4 car garage, sport court, and spacious kitchen. Offered just under $1.6 million.

Soft Contemporary near Doubletree
High ceilings and spacious closets throughout this 5,460 square foot soft contemporary. Located just south of Doubletree on a flat lot, this home is very well suited for entertaining. It's also reasonably priced at under $2 million.
--> Click here for details

Bargain on Cul de Sac
This home is just under 4,000 square feet and offers quite a lot for the money at just over $1.3 million. Beautiful landscaping, tennis court, and views of Piestewa Peak.
--> Click here for details

Unlisted Properties
I've been contacted about 9 properties just in the past week, ranging from $200k to $5 million -- none of which are on the MLS. To learn more about these homes, please click here.

To see all of this week's new listings please click here.

To see everything on the MLS in Paradise Valley please click here.

That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate.

Thank you,
Alex Goldstein
(480) 442-7325










Disclaimer: All information is believed to be accurate, but should be verified by the reader and is provided without warranty. Please consult appropriate financial, tax, legal, and real estate advisors before making decisions.


 


































(c) 2015 Alex Goldstein PLLC


















Realty One Group, 7975 N Hayden Road #101, Scottsdale, AZ 85258, United States
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