2007 Foreclosure Report
February 28, 2008
On Feb. 13th, 2008 RealtyTrac released it’s year end 2007 Metro Foreclosure Report. I found it interesting enough to highlight some of it on in My Blog because I believe these stats affect each of us on some personal level. None of us are immune or isolated from the current global economy, which is a direct result of the mortgage market mess we are in. However, we always have opportunity. Read more
Looking for Big Bucks for Real Estate
February 27, 2008
This week I bought a nice little ranch home. It has not been my biggest deal but it will make me a tidy little profit and it gave me an education at the same time. Here is how it went.
This was a bank owned property that the listing agent had a pre-signed contract done prior to it being posted on the MLS.
Fortunately the Bank has a 72 hour rule from listing date before reviewing contracts. Another offer came in through my office (different agent) with a financed offer.
Client has great credit (720 scores), sufficient money down with cash reserves and doing a FHA 203K mortgage with 45 day closing. Contract price was $41,000.
I thought this was a pretty good price as the “As Complete” value is $85-90,000. The 203K repair estimate was $14,000. I wanted the property but I didn’t want to get into a bidding war with a company client.
I decided to put in a “low ball” offer of $37,000 cash. Actually it was coming from a Line of Credit per my “Proof of Funds Letter” and a 30 day closing.
To my surprise the Bank took a cash offer 10% less than a well qualified offer with financing. Does this happen all the time? I am not sure, but as the foreclosure and short sale market starts getting more and more competitive, cash will once again become King!
So whether you are a principle or an agent, finding where you can get a good Buck when you need it should be top on your list. If you are looking in Buffalo or Niagara County for Real Estate financing or sales, give me a call, because in this area “the Buck stops here.”
“Project Lifeline” may be just more posturing.
February 25, 2008
The current Administration has come up with a new plan to “help folks in foreclosure”. Don’t you just love how we all become “folks” whenever politicians talk? …. Anyway , the latest brainstorm out of D.C. came last week when Treasury Secretary Paulson introduced “Project Lifeline” and, not surpisingly, Al Jackson, Secretary of HUD quickly stood behind it. The plan in it’s simplest analysis is for the Administration to “encourage” 6 of the nations largest lenders, who are collectively responsible for more than 50% of all mortgages nationwide to offer a “freeze” on any rate adjustment that may send a homeowner over the edge. This is not limited to “folks” with sub prime ARM’s but also extends to less risky borrowers with Alt-A and even prime loans. Read more
Sugar coating is for cereal not business
February 23, 2008
Here I was enjoying my Saturday evening and I get a call at my home from a local Realtor who was very upset with me. Apparently she and a group of her co-workers were “enjoying” my radio show and they have been stewing about it all week. This agent and her friends are all 20 deals a year and up agents. She has been an agent for 20 years and made $50k last year. I have been very degrading to the industry with my comments and I’m discouraging agents. I was saying things that were very misleading to the public and making agents look like they don’t know what they are doing. Read more
Test
February 23, 2008
This will be removed after first post
Test Post
February 23, 2008
This is a test post for Scott
Stay the same, differently
February 20, 2008
Our own dilemma is that we hate change and love it at the same time: what we really want is for things to stay the same but get better. -Sidney J. Harris
In December of 2006 we began to see the party coming to a close. Easy mortgages, multiple offers and monster commissions began to disappear from our business models more quickly than anyone thought possible. I will be honest and say I felt like crying myself a river. I averaged about 25 mortgages and 4-5 real estate sales each month. A friend of mine used to say that I had built a money machine. Within six months the machine was not only broken but at the rate of decline it was going to go broke. Read more
Welcome to Guest Blogging
January 25, 2008
Guest Blogging is a new idea on the Real Estate Radio USA Blogzine. We decided to do this to get more of a “local” idea of what was happening in markets all over the country. We are asking who are passionate about real estate and active in their State or local market to come forward and contribute.
In order to become a guest author all you need to do is click HERE to fill out a form so that we can learn more about you and see if you will be a good fit for Real Estate Radio USA’s Guest Author Program. We will be selecting up to 5 people per State and will require that you submit at least 3-5 postings per week.
If you are selected, you will be notified with the rules and procedures for posting. We hope all of you will consider this unique opportunity.
