Category: Real Estate Investment Tools

Investment Property Renovation ROI

Pinterest Post from LifeHacker.com

 

The Best and Worst Projects for Increasing Your Home's Return on #Investment #homeimprovement #soflahomeseller:

 

Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com
 
 Real Estate Services of SWFL, LLC
#Florida Real Estate     #Cape Coral Real Estate    #Fort Myers Real Estate
#Real Estate Investing   #Property Investments   #Wholesale Properties
#Wholesale Florida Properties  #Commercial Real Estate Funding

Foreclosure Increase Leads to Rise in Vacant Bank REO

Recent article posted by Jacob Passy on September 9, 2016  on National Mortgage News website:

The percentage of vacant bank-owned properties is larger now versus a year ago as banks are completing more foreclosures, according to Attom Data Solutions.

Overall there are fewer abandoned properties, as roughly 1.4 million, or 1.6% of all residential properties, were vacant at the end of the third quarter, RealtyTrac’s parent company Attom reported in its U.S. Residential Property Vacancy and Zombie Foreclosure Report Thursday. That figure is down 3% from the previous quarter and down 9% year-over-year.

Similarly, the number of zombie foreclosures fell 9% from the third quarter of 2015 to 18,304. As a share of the total properties in the foreclosure process, 4.7% were vacant.

But as the number of real estate owned properties has grown, it has led to an increase in bank-owned vacant homes. Attom found that there were 46,604 vacant bank-owned residential properties at the end of the third quarter, which represents an increase of 7% from the previous quarter and up 67% from 2015.

This vacancy situation is the result of a seller’s market that has motivated lenders to complete foreclosures on vacant properties, according to Attom Data Solutions Senior Vice President Daren Blomquist.

“While that has reduced the number of vacant properties in the foreclosure process — so-called zombie foreclosures — it has also resulted in a corresponding rise in the number of vacant bank-owned homes,” Blomquist said in a news release.

“Assuming that the foreclosing lenders are maintaining these properties and paying the property taxes, they pose less of a threat to neighborhood quality than zombie foreclosures, but they still represent latent inventory in an inventory-starved housing market.”

 

Posted here by:

Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com
 
Real Estate Services of SWFL, LLC
#Florida Real Estate     #Cape Coral Real Estate    #Fort Myers Real Estate
#Real Estate Investing   #Property Investments   #Wholesale Properties
#Wholesale Florida Properties  #Commercial Real Estate Funding

 

 

 

 

 

Commercial Real Estate Loans Now Available!

AIUS – Automated Intelligent Underwriting

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Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com
 
Real Estate Services of SWFL, LLC
#Florida Real Estate     #Cape Coral Real Estate    #Fort Myers Real Estate
#Real Estate Investing   #Property Investments   #Wholesale Properties
#Wholesale Florida Properties  #Commercial Real Estate Funding

 

Decisions Decisions…LLCs vs. Land Trusts for Real Estate Investors?

Good Information from Steve Gibbs of Gibbs Law Firm:

standing man and 2 way street to illustrate decisions involved in choosing an LLC verses a Land Trust?

Hello Friends & Colleagues!

This week’s topic is a key asset protection question for real estate investors who hold multiple properties.  This question concerns how to hold real estate investment property, and this depends upon the goals and preferences of the investor.

The 2 most common “recommended” ways to hold real property investments are an LLC or Land Trust.

Exploring the pros and cons of these estate planning options is the stuff of this week’s article.

For Florida Investors Doing Estate Planning, Florida LLCs and Florida Land Trusts Are Both Effective Ways To Hold Real Property Depending Upon One’s Goals.

An Easy Way To Think About The Benefits and Detriments of LLCs Verses Land Trusts Is That LLCs Are Arguably Simpler To Establish and To Administer Whereas Land Trusts Offer a Some Added Asset Protection Benefits.

LLCs are extremely simple to set up in virtually every State and everyone in the real property world, from brokers to County workers, essentially knows about them.  This means that people are not typically confused by your asset protection structure (of holding assets in an LLC) and this means that your daily life may be less complicated.   LLCs are extremely flexible, and if prepared properly, offer key asset protection benefits.  Of course, by prepared properly, I mean that setting one up yourself without an Operating Agreement may not be an effective strategy, whereas, getting professional help and creating a solid LLC structure goes a long way.

If you set up an LLC for estate planning purposes to hold your real property investments, you’ll need to decide whether you’ll be the only owner of the membership units (a single member  LLC) or whether you’ll have other partner members (multi-member LLC).  In many jurisdictions, such as Florida, multi-member LLCs offer a more solid asset protection plan than the single member LLC.

My recommended process to create an LLC is to file Article of Organization with your State of choice and then have supporting documents created to support your LLC.   The State will require a renewal fee every year and you’ll need to decide who your Registered Agent will be…whether you or a third party.   For more information about what should be considered in creating a solid LLC, visit our previous post.  After this, the real property may be transferred to the LLC and you’re good to go, noting that the LLC needs to be administered with certain formalities.

The Land Trust option is different because it typically is not filed with the State and thus offers greater privacy and anonymity.  A Land Trust is essentially holding real property by contract.  So, the Trust document (contract) is created and the Trustee (who must be a third person or entity) is appointed by the Trust.  The Trustee will essentially hold the real property for you or your entity of choice as the Beneficiary.  So, privacy is an added benefit for Land Trusts.   Key disadvantages in my experience are that City and County officials tend to more easily become confused by Land Trusts.  You also need to be comfortable essentially conveying your title to a third party as the Trustee if you go this route, noting that the Trustee will be bound by fiduciary duties and the terms of the Trust.  Land Trustees often charge annual fees as well.

If you decide to go with the Land Trust option, you can still utilize an LLC as the Beneficiary of the Land Trust, so as to essentially double your asset protection.  For more information about Florida Land Trusts, visit here.

Real Estate Investors In States Other Than Florida, Texas, Arizona, Ohio, Illinois, Indiana, North Dakota, Virginia and possibly California, may not have the estate planning option of a Land Trust.

The states referenced above are the only ones that have land trust statutes and generally the real property must be situated in the State that the Land Trust is created.  This is a key distinction with LLCs because a Florida LLC can hold real property located in Texas, and this is usually the case with LLCs in various States.

Moreover, the Trustee ideally should also be located in that same jurisdiction as the Trust and the real property, so the rules are more restrictive than LLCs, because the LLC Managers can be anywhere although the Registered Agent must be locally based in the State.  Also, with Land Trusts, if you have multiple real properties in the same State, they must be “contiguous” (next to each other) in order to title them in the same Land Trust, and this is not the case with LLCs.

Of course, all of the above is a basic distinction and a great asset protection plan may utilize both Land Trusts and LLCs.  All of the above should also tie into your overall estate plan and this may require directing the real property in your LLC or Land Trust to your Revocable Living Trust upon death.

As always, I hope this clears up a bit of confusion and…

Until next time.

SJG

Contact Gibbs Law Office Today.

For estate and business attorney service in Fort Myers Florida, call us at 239-415-7495 or contact us online to schedule an appointment.

Gibbs Law Office, PLLC
8695 College Parkway #2330
Fort Myers, Florida 33919

Tenant Screening Guide

For those looking to rent their home rather than sell, this is a great chart to reference when screening tenants. Call Goss Realty Group to get your Northern VA home sold or rented! 703.951.3773:

Latest Auction Properties – Florida

These properties do not last long, sometimes only hours.  For more information, please email me at InvestSWFL@gmail and I will have Crystal Snyder contact you directly.  In Subject, write “Auction Property 7-22”.

301 Lotus Path, Clearwater FL 33756
-5 bedroom
-6bathroom
-6791 sqft
-pool

This property sits across the street from the beach. It will need some updating and work. We just obtained the property from auction so I have not had a chance to get my contractor in there for n exact rehab estimate but we do estimate a $200,000 rehab based on updating and rehab that would be needed according to the comps.

The best comp that we have found is 327 Lotus Path. It’s just a few houses down the street from subject.
327 lotus path features
-4bedrooms
-5.5 bathrooms
-4370 sqft

This property sold for $920,000 on 5/4/2016 at $210sqft. This property was quite dated when sold.

As stated before, this property was obtained from an auction. It was listed on the MLS for $755,300. At auction, we were bid to $976,000 however I am able to pull this price down a little through my contacts at the bank. I am currently working on pulling it down and feel I can get it near $790,000-$800,000.
So, we feel the break down is  this-
Purchase price-$800k
Rehab-$225k(cushion for the unseen)
Closing cost-$40k(both front end and back end closing cost)
Realtor fees-$78,000
Holding cost-50,000

Based on the neighbor we can sell the home at $210 x 6791sqft =$1,426,000. Of course, you want a quick sale so we suggest selling at $1,350,000.

With all the cost you are looking at spending a possible amount of $1,193,000. Selling at our suggested below market price of $1,350,000 should net you a profit of $157,000.

Terms-due diligence to be done upfront. Buyer pays closing and buyer agent fees (I included the front end closing cost in the above-mentioned calculation), cash closing in 2-3 weeks.

Crystal Snyder

2285 Chilcote Ter Port Charlotte FL 33981

Features:
– on the river
-3 bedroom
-2 bathroom
-1898sqft
-pool

Needs some rehab. Tax assessed at $327k.
Asking $350k

according to our comp at:
2440 quail ter which features
-2/2 on the river
-1318 sqft
-11 years older than subject
– sold at $350k in 3/2016
Using sqft comps from the comparable subject has a value of $510k. Taking into account that subject is newer our local agent placed retail value at $550K after rehab.

Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before being fully executed.

12468 Nw 19th Pl, Coral Springs, FL 33071

6 Beds
1 Half Bath
5 Full Baths
Size: 5,087 Sq. Ft.
Built in 1996

Deck/Patio, Backyard, Garage, Swimming Pool, Air Conditioning and Heating

Custom built Mediterranean style home in the Greens of Eagle Trace subdivision. Built in 1997, this home is located on a cul de sac and offers 6 bed, 5.5 baths with 4793 square feet of living space, and an attached 3 car garage. The curb appeal consists of palm trees and grand columns as you pull into the circle driveway. Walk into the foyer with tall ceilings and hardwood floors for a beautiful entrance. New flooring would be a nice upgrade to this property. There is a white stone floor to ceiling fireplace off the kitchen. The kitchen is huge, ample storage, prep space, center island and breakfast bar. Off the living room and some bedrooms is access to the screened in back patio. In the backyard, you will find an in-ground pool. Needs some updating through out. This property is pending through the auction and was bid to $711k. Tax assessed value is $874k. With my expertise on auctions and connections as well, I can bring this property back down and let it go for $680k OBO.
Terms of sale- buyer pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.

16647 112th Trail N, Jupiter FL 33478

Features:
-2.5 acres
-pool
-3 bedroom
-2bathroom
-4730 sqft
-2 kitchens
In need of an estimated 55k in rehab. Most recent company we could find is at
16840 113th Trail N and is only $365 sqft smaller and sold for $650k on 10/1/2015. This property would make a great investment opportunity.

Price-$275,000

Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.

9641 NW 28th st in Hollywood,FL 33024
-4bed
-4bath
-3846 sqft.
Will need rehab. Property sits on the water in Lake Maranatha Estates. The neighbor to this house is currently for sale at 2.2mm and another neighbor just sold for $625,000 and was 1500sqft smaller than subject. According to the comps this home is worth $914,000 and we r asking $575,000.

Sale Price-$575,000

Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before fully executed contract.

4431 Ortega Blvd Jacksonville, FL 32210

Features-
-6083sqft
-on St. John’s River
-large pool
-6 bedrooms
-5.5 bathrooms
-chefs kitchen

It does need some rehab. This property was sold in 2006 for $3.7mm. There are no recent sold comps in the neighborhood but there are 2 houses for sale.
4105 Ortega Blvd at 2.95mm and 4805sqft
4115 Ortega Blvd at 3.39mm and 5881sqft

This property would make a great investment.

Price-$1,750,000

Terms-Terms of sale- buyer pays closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.
805 19th st west Palm Beach, FL 33407

It features
-4 apartments each 2 bed with 1 bathroom
-2916 sqft

Does need rehab. Asking $170,000

Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before a fully executed contract.

Crystal Snyder

 

Crystal Snyder – Property Wholesaler

Crystal Snyder has only been buying and selling Real Estate for less than two years.  Prior to becoming an agent she received a certificate in Cosmetology, an Associates degree in Science and two degrees, one in Economics and the other in International Business.  She was working towards her Master’s Degree when she decided on a career in Real Estate.  When I met Crystal, she was a mother of 4 children but recently adopted a 5th child.

When she started in Real Estate, I suggested she find a niche rather than try to do everything.  Crystal took to working auctions and flipping contracts as if she had always been doing this.  She had immediate success, so much so that she discovered the “Secrets” of one of the major online Real Estate Auction sites.

She has privately mentored several new Investors.  One earned his first equity on a property after only 2 1/2 months after starting.  His share of the property was over $16,000.  Did I forget to mention he was only 18 years old with no Real Estate experience?

I will write about some of her most current closings in another blog.  Crystal’s company will be working directly with mine, Real Estate Services of SWFL to bring these properties to our Buyers’ lists.  She will also be teaching people how to duplicate her system.

Welcome back to Florida, Crystal.  Let’s help these new Investors get in one the Action!

Crystal