Decrease of the number of foreclosure in Lee County

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As you may know, I check the foreclosures on a daily basis. I do that for all my client looking for the best deal possible. They can get into my Cape Coral foreclosure list by filling the form that you can find here.

Few months ago, I’ll say something like last fall, we had 1,000+ foreclosures in our MLS for the whole Lee County, that include Cape Coral foreclosures, Fort Myers Foreclosures and Lehigh Acres Foreclosures.
And since a couple of weeks, that number had a steady decrease to reach 660 today.

That number is very important for me and I explain that to my clients, investors or first time home buyers.
Not only, obviously, that means there are less foreclosures out there, but also, the non-distress market will take over sooner. Consequently, prices are going up. It shows even with the foreclosures themselves. Banks now see more multiple offers on their listings and adjust pricing. They see an increase of the demand.

We also experience an employment rate having an upward trend and the 60 days and the 90 days delinquency rates are both decreasing, that’s always a sign of a foreclosure rate decline.
So hurry. Not only I was showing a proof that this is the best time to purchase a property in Lee County in history, but prices are increasing little by little. So if you are looking to get a great deal, call me today and I’ll send you the available foreclosures in Lee County.

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Comments (0) Feb 11 2011

The new VA hospital is attracting businesses

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The City of Cape Coral is unveiling an ambitious marketing strategy, aimed at attracting sustainable business towards the North Cape. The Economic Development Workplace is creating a “Veteran’s Investment Zone” to assist create a business complex around the new VA hospital.

The new VA Outpatient Clinic – currently under construction within the North Cape – is expected to attract hundreds of thousands of veterans. And developers are wanting at methods to profit from the VA’s enterprise.

“We have a important developer seeking at a piece of land to your west of your VA website for workplace and medical parks,” explained Christy Vogt, with the Cape Coral Financial Growth Office.

She says the city’s Financial Advancement Workplace sees the VA clinic as a major opportunity to market the north part of your Cape attractive to corporations.

The EDO has currently coined the area, the Veteran’s Investment Zone – or VIZ.

“We are seeing a great deal of activity there, inquiry from land owners and developers,” Vogt explained.

VIZ borders Diplomat Parkway, Littleton Road and NE 24th Avenue.

According on the Cape Coral Chamber of Commerce, the EDO has already received interest from one business searching to create a hotel near the property.

“There’s a good deal of interest into trying to take the crumbs that fall from the activity that occurs at the clinic,” mentioned Mike Quaintance, of the Cape Coral Chamber.

The Chamber has been providing interested developers with info on area demographics and accessible workforce.

And while it is too soon to tell if the VIZ will succeed, Quaintance says the plan has potential.

“It’s going to create some synergy to draw some organizations which are going to be complimentary on the VA Clinic,” he mentioned.

The EDO plans to hold a public forum in November.

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Comments (2) Sep 29 2010

10 Short Sales questions and tips

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Here are 10 frequently asked short sales made questions which are incredibly useful especially if you are just getting started or contemplating quick sales as a means to acquiring pre-foreclosures.

1. What occurs on the seller’s credit rating when they permit an investor to short sell their property?

What typically takes place is the loan will show up as “paid” on their credit report; even so there will probably be a notation that says “settled for less than originally owed” or something along these lines. It’s additional favorable for a homeowner to small promote than to have a foreclosures on their credit report.

2. Where do you find investors for short sales?

Depending on where you live, you may see buyers who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they’re experienced in performing short product sales and if they would be interested in working with you. Another good place is your nearby real estate investors club meeting.

3. Define a short sales?

A short selling is really a form of pre-foreclosure sale made and occurs when the mortgagee agrees to accept much less than the loan volume to avoid foreclosure. A negotiated short sale results inside a discounted buy price for the buyer. The buyer would finance the acquisition significantly the same as in any conventional realty acquisition.!. but devoid of the luxury of time.

4. Can an proprietor profit from a short sale?

The seller can’t profit (monetarily) from a pre-foreclosure short sale.!!! But you will find usually exceptions towards the rule.

5. How do bankruptcies affect the possibility of carrying out a short sale?

Most mortgagees won’t take into account a short sale if the house owner is in bankruptcy.!.why? Due to the fact negotiating a short sale made payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what paperwork do I have to include inside a short sale package?

Documents depend on the lender. Each loan company has diverse requirements. It is typical to require hardship letter, buy and sales contract, ECOR, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage firms send somebody out for an appraisal on a achievable short sale?

All lenders order a BPO or full appraisal of the asset prior to making their decision to accept or reject the short purchase offer. This is there only way of assessing the worth of your home.

8. How late in the pre-foreclosure procedure can you begin a short sale?

Attempt to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale made.

9. What is a Due on Sale clause?

“Due on Sale” Clause (DOS) Provision inside a mortgage or deed of trust calling for the total payoff of your loan balance inside event of a selling or transfer of title towards the secured genuine asset. A contract provision which authorizes the loan provider, at its choice, to declare immediately due and payable sums secured by the lender’s security instrument upon a purchase of all or any part of the genuine home securing the loan devoid of the lender’s prior written consent.

For purposes of this definition, a sale or transfer indicates the conveyance of authentic house of any proper, title or interest therein, regardless of whether legal or equitable, regardless of whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other technique of conveyance of true home interests. Standard language which states that the mortgage must be paid when a house is sold.

10. Will banks enable a short sale when the owner has some or a beneficial sum of equity?

If a asset has what the financial institution would consider a substantial quantity of equity, chances are they would take into account allowing the asset to foreclose and then reselling it closer towards the retail value. Focus on homes that don’t have much equity. Your job will be to create the fairness in the home by negotiating a successful short sale made.

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Comments (1) Sep 12 2010

E2 investor VISA Business for sale | 4 cabins rental in Sevierville, TN

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Ideal 4 cabins rental properties on 8 Acres for owners/operators and qualifying for E2 visa.

This business will qualify for foreign investors seeking an E2 investor Visa.

Grossing $75,000+/year and could be better if on site owner and if rented as overnight.

Possibility to built 2 more units and cottage on the creek side.

20 minutes from the Great Smoky Mountains National Park with 11 millions visitors/year!

This property has huge potential. I strongly suggest to use the basements and garage as home theater and game room/entertainment area with big flat screen TVs. With the 2 other cabins built, this property will have 6 cabins in total. The potential rent for those completed cabins could be as follow:

1 X 4 bedrooms cabin: $45K/year

2 X 2 bedrooms cabin: $64K/year (2 X $32K)

3 X 1 bedroom cabin: $75K/year (3 X $25K)

Cottage/camping site/RV space could go from $25/night to $60/night with a potential of $$36K/year

So the total potential gross could reach the $220,000 mark per year.

The 2 cabins that can be built would cost a roughly $160K for both.

The cottage are smaller studio like cabin that can be extremely competitive if priced below $60/night because that will be a cheaper alternative to hotel room while bigger,more private and located in a better environment.

Asking: £590 000/$945,000/725,000 Euros | 70% financing in place already | £180,000/$315,000/225,000 Euros down (30%)



Sevierville cabin E2 investor visa business for sale

Sevierville cabin E2 investor visa business for sale

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Comments (3) Feb 08 2010

Another Real Estate offer for a Lehigh Acres Property!

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I came across this new listing located in Lehigh Acres. It has some features that I was looking for, especially in Lehigh Acres, as at least half acre lot, s-tile roof, large square footage and a pool. I’d like to have some water behind, but for the price, it is a nice deal.
I finally ended up offering $5,000 more than the asking price with a hope that this time, I’ll get the deal. I have offered less than asking price and full asking price in the past and lost the deal each time. Cape Coral is becoming a strong seller’s market, whatever people are saying.
I’m waiting an answer from the seller very soon now and see from there.
I can’t wait to get there and keep doing my job in a different area.

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Comments (0) Jan 15 2010

Investors: what you should do during a BPO.

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Once you have sent your offer of 55% of the lowest average comparable and deducting for any repairs to the bank, the bank is going to hire a third party company to have a look at the property that is being discounted or what it is called a short sale transaction.

The following steps are what you have to consider to have a successful outcome from that third party that is doing the BPO/Appraisal.

Make yourself the contact person for the process.
When the third party company that is calling you to schedule an appointment, you want to make sure that the person on the phone knows the fact that this property is been foreclosed and do they know that it has a contract to be sold. Most of the people just want to come out and take pictures and run to the next one. They are in it to get as many done in a day as possible because they are getting paid minimal money to do this task, most of them being Real Estate agent that are not producing enough for a living. Build a rapport with them right out of the door and ask them a few questions while you have them on the phone. For examples:

Do you know that the bank is looking for a quick sale value on this home?

How long have you been doing BPO/Appraisals?
As you are listening, you are on a mission to gain information. You will be able to use this information to give you more details on how to proceed with this particular person before meeting them at the property.

How many of these inspections are you doing a day?
How many have you done in the last month/last week? And so on…

What is the name of your company/Phone #/Fax #/cell phone#?
So you can contact them ahead of time to confirm your meeting when set.
I also call some of them time to time for tips about new foreclosures.

If it is a Realtor, ask if they do a lot of REO’s.
This is a bank foreclosed home that Realtor’s like to list after they have been foreclosed on. You want to be sure on this because it will help you know how to proceed in handling the person in the field.

If it is an appraisal you are going to
You want to know this as well because an appraisal will be a little longer than a BPO. They are going to measure the property just like they did when it was purchased. They will do the size of bedrooms, how many rooms, all interior pictures, front and back pictures of the house and more…

Compiling all the right paperwork to take to the meeting at the house consist of the following:

A folder that has all information about the property
Write in big “Foreclosure” and “Working with banks and sellers to liquidate properties” on the front of the folder.

A copy of the purchase and sale agreement
You sent it to the loss mitigation department. It should be completed and executed in a time frame of 30 days or less.

A hardship letter
The hardship letter we were talking about here from the seller explaining why they are losing their home.

A repair estimate of the house
All documents supporting the value that is being offered. Made you homework here. You’ll get better at it with experience though.

Low comparable from the property
Get you comps from Real Estate agents, MLS and so on. Get the lowest 3 similar LISTED and 3 SOLD properties. The keyword is lowest here!

Articles from newspaper or online articles
Try to get newspaper articles explaining the down turn of the market or any problem of the area where the property is located. Check online local newspaper as well.

Copy of the building sketch of the property
If it is an appraisal, supply the appraiser with a copy of the building sketch of the property. This will put a smile on the appraiser face because it helps them get their job done sooner. This move will instantly put yourself as knowledgeable and therefore, your numbers as much more accurate, even if you may be a bit low :-)

The day when you are meeting them at the property
Make sure you call and confirm they are going to be on time. Be professional.

Arrive early so you have a chance to get a feel of the house
Drive by the neighborhood and look for any signs in yards. Take them down if any and remove any flyer/advertising you may have at the house. You do not want them to know what you are marketing it for. Look around the house for any new damages or negatives to point out.

When the agent gets there
DO NOT HAND them the package you have. Lay it down somewhere visible in the house (kitchen counter or on bar). Start building a rapport with them. Have a conversation about anything, something in common (have a quick look at his/her car bumper sticker. You most probably see something he/she like to talk about: pets, football team, etc…). Ask how they are doing and get a little personal.

Do not start bashing the house
As if you want a low value, it is important though that you don’t bash the property. Let them in and walk the house showing them around from behind them. That will let you read their body language. Do not get up in their face. Be nice and have a sense of humor about the meeting and that you two are in this together.

The Big Question!!
When the agent/appraiser asks who you are in this process, whenever this comes up, either on the phone in the beginning or on the way there when you are confirming the appointment, DO NOT LET THEM KNOW YOU ARE AN INVESTOR. You are just the person meeting them there to show them the house. Minimize yourself. If they ask you if you are the listing agent or the Realtor® and you are not, let them know that our company works with the seller and the bank to liquidate the property. If you are a Realtor® then answer yes I am a Realtor® but working to help the seller.

What should I wear to this meeting?
Try not to over dress or look like you are better, smarter or know more than they do. Play at their level or below. Allow them to be in control or at least think they are in control (better results). Ask them if there is anything else that they need. Include a couple of newbie’s questions about their field. Leave an impression that you know he/she is the professional here.

Getting the package in their hand.
Talk a little about the market and show them things that need repair along the way. However, be helpful not forceful. When you pass by the package pick it up and let them know you have a copy anyway. Inform them that it contains info like comps, the current purchase agreement, etc… You don’t have to tell them everything in it because they can see it for themselves. You want them to ask you for it. Let it be their idea of getting it instead of it seeming like you are forcing it in their face, you must take this type of approach.

What do you think of the value?
After the meeting, hint around about the value. “What do you think the value will come in at?” “Ballpark figure”. Come across with the seller needs to sell attitude rather than they want to sell. If the agent/appraiser will tell, that is okay.

Can I follow up with you?
Have either yourself or someone else follow up with them 24 hours after the value was done. Thank them for coming out, be polite and ask them if they have completed the value and sent it in to the bank.

Calling 24 hours later.
Start out asking them how it is going. Then ask them if they have completed any more inspections since the one they did with you. By this time you should have an idea of how well they are going to respond. Just ask what they thought the value came in at and did the value come in around the contract price.

After that, call the bank and ask if they have received the value and can they accept the offer that you have submitted. If not, ask them to call you back with the approval as soon as they get it.

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Comments (1) Dec 27 2009

New opportunities in a slow market.

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While at the beach last week-end, I carefully watched the news regarding the major lenders like CountryWide and Thornburg Mortgage. There was a very good article about the mortgage issue. Since the change in liquidity for mortgages, there’s an opportunity for savvy investors.

Everyone is talking about all the bargains to be found because of the rising number of foreclosures and the excess inventory. It’s true that sellers are beginning to discount price and bargains are showing up. You can expect even larger discounts within the next 12 to 18 months. But today, I want to talk about another opportunity.

The new opportunity is on the back-end when you sell the property. Since all the lenders are turning off the tap, it’s time you step up and offer financing to qualified buyers. Wait there more…

Don’t make the mistake and think I’m talking about those with C & D credit. There are buyers with great credit scores that are getting turned down because the underwriters are drying up. In addition, the remaining lenders are asking for hefty down payments of 20%.

Attract those with great credit scores and get at least 10% down, take back a note of 80% at 7.5% or higher and then take back a second of 10% at a higher interest rate of 9%+. Of course, factor in the credit score and adjust those rates accordingly.

Buyers will become easier to find and you can upload your properties a little quicker. You will be surprised to find buyers with decent credit scores. So step up and start being the bank. More than ever is there a demand owner financing on the backend.

Because the sub-prime lenders are gone.. I mean really gone. So if you want to fund those with C & D credit, you can find even larger pool of buyers that need financing. So while you are buying the bargains in foreclosure on the front tend develop a system to start funding your buyers to create a cash cow.

You’ll end up with selling properties faster and creating some excellent returns.

Note: Be aware of the federal and state lending regulations when lending directly to consumers.

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Comments (0) Dec 22 2009

Cape Coral flipping properties

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It’s time again! Time to flip properties, especially here in the Cape Coral area where foreclosures have hit badly in the last couple of years. Great finds can be made these days. If you have the will to get involved in the rehab/flipping field, here are 10 tips for you to keep in mind.

1. Do not get emotional about house flipping. It is after all a business. If the numbers do not work, proceed to the next property. Some investors commit the mistake of being too attached to the flip that they sell at a high price and end up holding the flip longer thus reducing profit.

2. First impressions count. Pay attention not just to the inside of the house but the outside as well. You cannot show off all the upgrades done inside the house if potential buyers are turned off by the outside appearance of the house and its surroundings.

3. Personal tastes are a no-no in a flipped property. Your flip needs to be attractive to buyers, not you. You should define who your target buyer is and what is his/her preferences. Color is a vital part of flipping houses. Stick to neutral colors especially when it comes to painting and laying the carpet.

4. Spruce up the kitchens and the bathrooms. They will noticeably increase the price of a house. But be sure that fixtures and appliances match the target price range. If the kitchen and bathrooms look clean, sleek and updated, the house will sell faster and for a higher profit.

5. In house flipping, time is money. After making a detailed list of renovations to be done, come up with a timeline. A timeline is an important way to let contractors know when the next group of workers needs to be in a specific part of the house. One rule of thumb is to work from top to bottom and tackle the big work projects first.

6. Hire a good contractor. You cannot be at the job site all the time. This is where the contractor comes in handy. He can keep a close watch on your time line and also the part of the budget that is his responsibility. He can keep track of problems and readily find solutions. The easiest way to find a good contractor is through referrals.

7. Be ready for paperwork. There are loads of paperwork that accompany house flipping. The most important paperwork you will have to attend to are permits. It takes time to obtain permits so you need to apply for them before work begins. Not having the necessary permits can cause work stoppage and this cost money. Contracts and receipts are doubly important. Be sure to keep them. You also need to obtain insurance coverage not only on the property but the workers as well.
8. Keep track of your progress. Throughout the entire house flipping process, you have to constantly monitor your progress. That way, you will know at any given time where you stand on the project. This will help you keep focused. Time is of the essence in house flipping.

9. Start small or simply, and then work your way up. Your first house flipping project should only entail cosmetic work. You may not get a huge return on your investment but you will surely learn valuable lessons and develop experience.

10. As with any business venture, expect the unexpected. You will certainly encounter something that you simply did not expect. It may be a problem that appears hours before the transfer of ownership. You will almost always run at least a little over budget or hold the flip a little longer than expected.

Go get them or let me help you to find them :-)

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Comments (0) Dec 21 2009

It’s stupid not to buy now!

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Today, the interest rates are still very low but they will rise soon. It’s cyclic. Some potential buyers may never see a chance to buy so cheap again.

Maybe you are very happy in your actual home, or maybe you don’t see yourself doing something else than renting. But if you have the idea to buy a property, the time is now. And if you don’t, I know you will regret it badly later.

As I write this, the average loan rate for a fixed 30 years is about 5% with no points. And it’s a 40 years lowest!! So this may be a once in a lifetime opportunity.

Historically, in 1970, the rate was about 7.25%, then rose to about 10% in 1973-1974 to then settled at about 8.5%-9% until 1976 to rise again at about 10%, which then, as seen as a OK rate by homebuyers.

But from 1977 to early 80′s, the rate climbed to 18%. Some homebuyers still remember those years today for that fact. Later it was always fluctuating between 11% and 9% until around 2000 when we saw a slow drop of the loan rate down to 6%-7%. That’s why 5% is something rare enough to mention these days…

So, what can we learn from the historical trends and numbers?

In the last 30 years, we saw that 6%-7% was the very low and 18% the very high, with an average of around 9%. So 5% can be seen as a golden digit!

The most important is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let’s assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Stay with me now. We are at 5%. It is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $48,000.

Let’s put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $48,000 more per point in interest rate changes between now and the time you decide you are ready to buy.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to tell is that if you are planning on being a homeowner now or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

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Comments (0) Dec 15 2009

Lehigh Acres Duplex Deal

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As you may know by now, I am a Real Estate agent working the field, literally knocking on doors. I’m a man of terrain and spend few little times on my desk.

I found a duplex for sale in Lehigh Acres. It’s a nice newer building with 2 bedrooms/2 bathrooms and 2 car garage on each side. I saw also that the owners live in California. As we know, and because of the Real Estate over there, they may need some money. This duplex can be purchased for $60,000! I still need to figure out what can be the rent there, but still, at $500/month each side, you’re looking at a nice 20% return.

I checked the taxes as well, and saw an unbelievable decrease from $3410.95 for 2008 down to $964.79 for 2009!!

Letting the tenant pay for the bill, you may be at an excellent 15% NET return on this one. And if we see a rebound in the Real Estate market, in the US in general, and in Florida in particular, this duplex is definitely a way-to-go.

I’ll say this, let’s put our little money in today’s interesting deals, and so, for the next 3 years, and let’s count our investment on paper by then. My guess is we’ll be very surprised by the increase of our wealth.

What we need to do is act now!

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Comments (1) Nov 29 2009

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