News Articles
Upside Down Expert
As few are aware and many know, we are not in Kansas anymore. I have, as of yesterday, deemed myself and my company an Upside Down Expert company. Why and how can I do this many are wondering???? Here is why, and please feel free to comment.
For the last 7 years I have been making money and being blessed in Real Estate. Of those 7 years I have spent 3 studying and partaking in doing REO’s, Short Sales, HBO’s, Foreclosures, Renovation Financing and Loan Modifications. During this time I have completed 1 “normal transaction” where a real human being sold and bought a real property from another human being. True story in that the buyer actually had equity in his property, which made it a dream come true.
When we sit down with new clients I constantly find myself in a humble place each time. I sit down in a house with a family and they are in trouble, both financially and morally. Not sure of their legal rights, their choices in life, or what the next step is to go forward with life and not backwards. I try to sympathize and separate work from emotions but it becomes hard at times because believe it or not I CARE. I also find that each person I help and educate becomes a friend in the end through earning their trust, respect and admiration. I try to earn these affirmations by not just “doing my job” but by working my ass off to get the deal completed. This means long nights, very early mornings, and no vacations. Nowadays our banks/lenders/servicing corps are open earlier and close later 7 days a week, which means we work longer.
Currently we specialize in Short Sales, HBO’s, Foreclosures, REO’s, Loan Modifications and Renovation Financing. We have deep hopes that the future will bring even more opportunities to our company so that we can further help our large base of clients without outsourcing to anyone. This allows us to keep each deal in house and give each client full service and one stop shopping with quick and convenient answers. This is actually becoming a rarity in this day and age as more and more people become lazy and only want to “do their job.”
Here is a brief synopsis of each:
Short Sales: Making the lender accept less for a property on a sale then what is owed. This can be done on any property in any state. Please call or email for more info.
HBO’s: Human Being Owned. Real properties with real people that actually want to sell and buy. They are so nice.
Foreclosures: There are 3 types of foreclosures that we deal with in our current market: 1. Equitable redemption foreclosures 2. Statutory redemption foreclosures 3. Pre-Sheriff Sale foreclosures. Please email me if you want more of an explanation on what these are and how they each work.
REO’s: Real Estate Owned. These are properties that banks have taken back and listed in the open/closed market with qualified specialists such as myself. Many properties are Fannie Mae or Freddie Mac Insured properties, which they have taken back from banks or servicing companies.
Loan Modifications: There are 3 types of Loan Modifications that we specialize in:
1. Interest Rate Reduction – Internal reduction/acceptance of your loan down to 2% interest rate
2. Resolution of Past Due Payments – Resolution of a maximum of 8 months derogatory payments by amortizing it back over the life of the loan.
3. Conversion to a Fixed Rate Loan – Converting your ARM or I/O into a fixed rate loan for 15/30 years so that you start paying down principle and not interest on your loan.
Renovation Financing: This is financing that can be given to any qualified buyer who meets underwriting guidelines. There are 2 types of financing available for this. Home Path Mortgages, which are given on Fannie Mae approved distressed properties and FHA203K loans. FHA 203K loans are light renovation rehab loans insured by the Federal Government and the Federal Housing Authority. These work well with first time buyers who want to purchase distressed properties and fix them up without using their own capital. Home Path Mortgages are similar but given directly by Fannie Mae and their participating lenders. Qualifications and guidelines are less stringent and rates are usually lower.
As you can see on a daily basis we are constantly working on making the lives of many families in America easier in this unstable market. We as experts in the field of Real Estate MUST know and understand not only which application fits whom, but who fits which application. Not to mention we need to be familiar with the legal ramifications behind each application and there are many of them that follow each. I say familiar because we are not Real Estate Attorney’s and simply advise our clients.
It is with these Upside Down applications that I deem myself and my company and Upside Down Expert Company. All we do, all day long, is help friends, families, past, present, current, future clients ease their way in and/or out of these tough times. We also guide them into the future, explain to them our processes and help teach them the correct way of maintaining and affording a home…and how to make money in Real Estate.
Thanks for reading and as always I welcome remarks. Please email me Ken@OffsiteRealty.com
LOAN MODIFICATIONS
Offsite Realty has started a new division for Loan Modifications. This part of the business has always been here for us, but only for our investors and previous clients. With the drive for refinancing because of the rate drops we have decided to start a seperate division for this. An overwhelming repsponse by other Real Estate companies, Real Estate agents, Mortgage bankers and the general public has made this division a success thus far. With offices in 3 states we hope to achieve what refinancing cannot acheive anymore and in half the time:
1. Interest Rate Reductions
2. Conversion to Fixed Rate Loan
3. Resolution of Past Due Amounts
The push by Congress and President Obama to have lenders modify the loans that are currenlty out there (ARMS, I/O, Option ARMS, Jumbo Loans) has made this the only way to get things done and the banks are listening to what is going on out there....finally. The property value has not been there for the last year and with multiple appraisals needed to do a refinance we have found that doing a loan modification can and has acheived the same thing. If you want cash out of your property 80% LTV a minimum of 2 appraisals is needed. The cost of these 2 appriasals has risen to nearly $500/appraisal and the appraisals are not even guaranteed anymore.
With all this being said, it has come to our attention that Loan Modifications will be the way business is done for a while, at least until value is established in suburbs, developments and throughtout. Right now the foreclosure rate is so high in too many areas to make a value acceptable to these banks and lenders. Most areas are declining markets or will become declining markets. Our society has to adapt, maintain and perservere through these extremely tough times and evaluate the way business is conducted from this day forward.
The average refinance time right now is 6 - 8 weeks and the average loan modification time is 4 - 6 weeks. Loan mofications are faster, more effecient and can be done in all 50 states. If you want more information on Loan Modifications please contact us directly via phone or email or click the Loan Modification Link at the top of our front page or search your local commerce departments website for regulations and rules regarding loan modifications in your area. Be weary of fraudulent companies and loan modification scams in your area. These companies can be searched on your Department of Commerce websites to make sure they are in good standing order and legal.
Thanks for reading and hope to hear from everyone.
Auctions
For those of you with real property at reasonable prices and want to sell, you might want to consider auctioning it off. Every month all over the state of FL there are dozens of auctions. Many auction companies pay 3% fees and take care of all expenses: marketing, setup, rental space, auctioneers, volunteer help, employees, food/drinks.
There is going to be a rather large auction held at Germain Arena in mid February for those of you who are interested. I am flying down this week to meet with the head auctioneer. We will be touring developments to get him re-acquainted to SWFL. Last year when the auction took place a lot of product moved out the door.
Auctions bring different types of people from all over and in turn, create a different kind of market. Investors, speculators (what's left of them anyway), and end users (2nd home buyers) are generallly fit the profile of a SWFL Real Estate Auction. The prices are generally more reasonable as well as a wide variety of properties. The prices will range from $200K's to $M's.
Many real estate companies shy away from auctions because they feel it deprives them of respect, but in fact they gain respect. My job for my clients is to sell their property and market it to all. By auctioning you gain new a new marketing tool and can sometime even receive more than the original asking price depending on how hot the propety is. For more information you can visit the National Association of Realtors website and learn more about this (www.realtor.org). It s guaranteed to be an exciting time and I look forward to seeing everyone there.
Old Agent VS New Agent
For those of you expecting a biased article, KEEP READING and you will not be let down.
Sitting in post licensing education class for two days really gets your brain wondering, especially when you get to look at all of your competitors and their faces. It is my understanding, and always has been, that the crème rises to top and the all stars are not made, but rather born. Sorry, genetics isn’t fair. Some faces old and some faces young. Some ideas are worn out and others, well they haven’t even been thought of yet. Hence this article “Old Agent VS New Agent.”
There are many great and sometimes challenging factors that a client may face when searching for a Real Estate Professional. The overwhelming differential factor that is in the market place today, as seen by me, is AGE. Do you want a seasoned professional or a new professional? Is there even a notable difference since we all have to pass an exam for each state we sell in? Wouldn’t this state exam make all of equally qualified to help anyone buying or selling real estate?
New Real Estate Professionals are highly motivated and skilled in many more areas of marketing, advertising and basically new ways of doing real estate than ever before. Most are highly technoliterate and most have some sort of a pervious sales background. If used correctly and managed properly, can be the greatest asset a client can have. Many new agents are eager, youthful, full of energy and passionate about making money. Some are trained or even skilled in specific areas of focus, development, marketing, engineering, computer design, architecture, and building. What new agents lack can be made up for by the vast amount of resources at their fingertips, palm pilots, laptops, cell phones and black berries. After all, who says that everyone has to be completely omniscient in everything they do. If this were a requirement we as a society would not have libraries, books, office assistants, or web technicians….right?
On with the old! Many seasoned Real Estate Professionals are set in their ways, have a pattern or at least a comfort level of doing things and do not like to stray off course. It is very hard to deviate from things that one has been doing for so many years. It goes back to the old saying of “you can’t teach an old dog new tricks, but you can tell them to repeat the old tricks.” In today’s society it is crucial that you adapt and evolve to meet your client’s needs on a daily basis. Real Estate Professionals must wear many hats at one time and be able to multi-perform, forget about multi-tasking, at supersonic and demanding speeds. In the society of today, information is power and if you cannot access up to date information on minute, daily or even hourly basis, then you are not doing the greatest and most successful job for your clients. This means having access and being accessible 24/7/365. Heck, I still see some agents with beepers/pagers. How is this being 100% devoted to your clients needs.
I think today’s agent should be a MREP (mobile real estate professional). Business is business and survival of the fittest is no longer the way. Today and tomorrows generation will be survival of the most resourceful. This may mean that many veteran Real Estate Professionals might have to take Internet courses at a local campus or school, they might have to re-invent themselves with a techno-makeover, or they might have to give in to the fact that eventually there will be PAPERLESS transactions and no more filing cabinets or offices to sit in. It is almost done completely by email and wireless transfers today anyway.
In today’s world, over 75% of homes sold are done via the internet. Whether they are previewing homes or taking virtual tours, this is the future. My advice to those who are questioning how this can be done would be to stop questioning and start studying. The learning curve of humans from the past peaked at around the age of 34; I think the learning curve of humans today will peak at around the age of 50. To me this is evolution and many Real Estate Professionals need a revolution.
I welcome feedback from all readers.
“Why Rent a Room When You Can Rent A Home/Condo?”
Do you ever feel ripped off and cheated when you stay at a hotel and eat their cheap free continental breakfast that consists of doughnut holes, bagels, coffee, and OJ, especially for $89 a night + taxes?
Driving back to good OL’ Minnesota from Florida the other week I was bombarded up and down the interstate with flashing neon signs and billboards for hotels and motels. The repeated theme that was burned into my brain and became annoying to a certain point was “$89/Night + Free Continental Breakfast.” This repeated theme made me think about value, cost and service and what you actually receive for your money. For 28 hours and 1900 miles all I could think about were all the vacationers and business folk that stay at hotels and motels during their travels in SWFL. These people are paying good money for sub-par service, bagels, doughnut holes, coffee and OJ and a check out time.
Being in the corporate rental business I can see how it is cheaper for companies to rent a home for a month vs. renting a hotel room for a month. If you break the cost down for renting a home in SWFL it comes out to average right around $48 - $75/night with taxes. You get to cook your own breakfast, drink real coffee and have as much OJ and cream cheese as you would like, and there is no check out time or maid service to worry about. You can swim, play golf, play tennis, shop, eat, exercise, play cards, and relax all in the comfort of the development you are renting in. You might even have friendly neighbors who invite you over for some good OL’ BBQ as well.
The rental market in SWFL is still in full swing and will continue to be so. I expect things to pick up for summer rentals in the next few weeks as schools will be letting out and the summer vacations will be on their way. So whether you are thinking of renting for 1 week or 6 weeks or buying a rental property consider value, cost, and service into your budget. I have many great units that are still available for summer rentals and we are filling up quick for the snowbirds next season. Call me today or check out our developments online and if you have any questions feel free to shoot me an email OffsiteRealtyFL@aol.com.
Thanks for reading and remember “Why rent a room, when you can rent a home?”
Bubbletunity VS Opportunity
Ever wonder how the Real Estate Gurus made all their money? They didn’t make it in a good market; they made money in the down market. The down market is a time for all investor/buyers, whether it is real estate or stocks, to gain negotiating power in their favor. I am calling today’s market the “BUBBLETUNITY” of a lifetime. Not to be confused with opportunity of a lifetime. Bubbletunity” is created by an excess supply of product in a cooling and demanding market. Cooling markets are caused for several reasons, generally related to CPI (consumer price indexes), Interest Rates, GDP (Gross Domestic Product), and my least favorite, The Ever Controlling Media.
Finding the right “Bubbletunity” of a lifetime is not easy, but it can be done and it can be done in three strategic steps.
1. Find a piece of undervalued or valuable property.
2. Create a feasible financial plan to allocate your property.
3. Allow your property to generate income for you by either building equity or having others pay for it.
The best way to find a piece of undervalued or valuable property is to ask a Real Estate Professional in your area. If you are buying out of state property, the best way to find undervalued or valuable property is to do your own research, either through a referral program or by signing up for Investor seminars (www.swflrei.com), reading online real estate journals (www.RealEstateJournal.com), reading online newspapers (www.OnLineNewsPapers.com) and checking out property values in other areas of the country (www.Zillow.com). These four sources I have given you will guide you in the right direction and get you started on the right path.
Starting a financial plan that is viable enough and lucrative enough to purchase your property can be a broad decision. With today’s money markets being so great and ever changing it’s hard not to find a program that will get you what you want. I would recommend seeking qualified help from an expert in the financial lending business. You can talk to representatives from your current bank, mortgage brokers, loan officers, or 1-800 numbers. Be prepared to answer a variety of questions from the lender on your end. And in return, do not be afraid to ask money related questions from your end. Since this is your financial plan you can treat your conversation with the lender like it’s an interview process.
On the other hand the process of having your property generate income for you is two-fold. You can either build equity in your property or sell your property for value earned, usually called (Return On Investment) or refinance and take cash out. You can also have someone else pay you for using your property. Both are very popular in today’s market. Finding a property management company to take care of your property is not a bad idea. If you live out of state it is a great idea. You can work out rates and fees with the management company by having them take care of your property or just have it rented. Generally, many companies can take their fees above the lease amount, hence leaving more dollars in your pocket. I would suggest a qualified company that is familiar with rates, seasons, and housing types.
No matter what your decision is the one thing you must always remember is that today’s bubbles do not go POP, they go FIZZZZZZZZZZZ. Please feel free to email any questions or comments (OffsiteRealty@aol.com). Visit our new website www.OffsiteRealtyFlorida.com where you can make a tee time online, research restaurants, rent property, and see our new management company.
Vacations
What a week in SWFL!!!
The rental market down here is scorching hot. Being in the property management business in Florida only a short time now I have come to wonder how people cannot make their real estate investment cash-flow? The key to renting in Florida is location, location, amenities. People want pools, hot tubs, golf courses, club houses, exercise rooms, rec rooms, play areas, tennis courts, and shuffleboard. Most importantly renters want these amenities in the same development where they stay. If you want your investment to cash-flow you need to seriously consider your property location and the amenities that it offers. That means working with a Real Estate Professional before you buy who knows the area and is familiar with the rental market.
This week I have traveled to 3 different developments to meet with people about renting their properties for next season and to meet others who want to book their property for next year; afraid there will be none left to rent at this time next year. The main complaint from current renters right now is that “there are not enough good properties to rent out there.” This complaint might be due to the fact that the rental market is an untapped advertising executives dream come true or renters need the help of a professional to find them find and secure the right property that they are looking for. The units that people used to rent every year at this time have already been booked months in advance forcing them to scramble and find another unit to rent. That generally leads them to concrete villages with no amenities and a higher rental rate than they are used to.
The average rental unit rate for my company right now is $3350/month and they are renting like popsicles on a hot summer day. The developments that I point people to are where I know they are going to be happy and where they are going to come back next year. That ultimately leads me to the places that provide the most amenities for the dollar. The simple fact is that people on vacation want things to be simple, convenient and to go their way. If I can make the rental process simple, convenient and go their way, chances are they are coming back year after year after year and my client’s rental investments are secure. This situation pleases both the investor and the renter, which is the ultimate goal of a property manager.
Bottom line is that the sun is not going anywhere, people will never stop taking vacations and the winters up north will always be long, gloomy and cold. Tourism this season is up 9% over last year and is expected to increase another two-fold next year. This means increased visitors and increased revenue for the travel and tourism boards which leads to better roads, more government funding and cleaner beaches. Increased tourism also promotes the expansion of local businesses and keeps prices in a state of equilibrium.
To see the developments that we focus on and learn more about our company and all it has to offer please visit our Florida website at www.OffsiteRealtyFlorida.com or drop us an email at OffsiteRealty@aol.com.
