Tag: Investor

REO – Complicated Real Estate Deals?

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According to Wikipedia:

“Real estate owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.”

The biggest misconception about REO properties is the properties can be purchased for large discounts below Market Value.  When REO properties are priced, the financial institution is not pricing according to market prices.  Instead the price is a combination of what the Bank is owed, late fees, attorney fees, costs of some repairs, auction costs and costs to get the property listed.

I am not saying great deals cannot be found but I am saying this market is not for everyone.  The two most important requirements for Investors interested in this market are Research and the ability to Negotiate.  This is usually a Team effort with the assistance of a Real Estate agent, a contractor and sometimes, a Real Estate Attorney.

Offers need a Letter of Intent (LOI) to be the front page of the offer.  The LOI explains the Investor’s reason for the purchase price being offered.  Discounts can usually be negotiated based on the condition of the property.  A detailed list is a necessary part of this part of the offer.  The repairs must be seen as “reasonable” by the Bank.  For example, putting granite counter-tops in the kitchen of a $100,000 house is not reasonable or necessary.

Experienced Real Estate Agents can greatly assist in assembling the paperwork needed including a Letter of Intent.  Find agents experienced in REO transactions.  The same way that not every Investor should be working with REO’s, neither should every Real Estate Agent.  Again, their most important skill is the ability to negotiate.

Our group has assembled a team of Real Estate Agents, contractors, negotiators and a Real Estate Attorney to help wade through these very “muddy” waters of Real Estate Investing.  Call us to purchase Real Estate Owned Investment Properties (REO).  We will also be publishing lists of REO properties 24 hours before they are publicly released by the financial organizations.  Email InvestSWFL@gmail.com with REO List in the email subject line.  Include your name, email, phone number, price range and type of property to get details emailed as we receive them.

Good Investing!

Lecanto, FL Investment Property

This property is located in Central Florida, northwest of Ocala.  There are 5 mobile homes on the property, 4 2-bedroom and 1 3-bedroom.  The property is 100% rented with rents between $575 to $690 per month.

Approximately, $15,000 was spent on repairs and rehab, including branch removal, trash/furniture removal, abandoned car removal and grounds maintenance.  Rehab has included appliance replacement, leak repair, pest control of buildings and land, painting and some roof repair.  A specific list is available for viewing.

Possible Owner financing available.

Email InvestSWFL@gmail.com for information.

 

Lecanto, Florida info

 

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
 
#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

Benjamin Gibbs – Title Junction, LLC For all your Closing Needs

I moved to Cape Coral in 2012 from Nashville, Tennessee with my wife and 4 children.   In Tennessee, I was a realtor for 5 years and also spent some time as a mortgage consultant.  I am a licensed Florida notary and having been on all sides of a real estate transaction as a realtor, mortgage consultant, and title representative I know what it takes to get from contract to the closing table.  I enjoy playing golf, tennis, baseball, basketball, soccer, running, and coaching my kids’ baseball and soccer teams.

ben gibbsBen Gibbs

the real estate/closing relationship you deserve…
Title Junction LLC
6225 Presidential Ct Suite 100A Fort Myers Fl 33919
Tel. 239-415-6574
Fax. 239-415-7359
www.title-junction.com

Wholesale Investment Property – Direct Access Waterfront House

Tax Map

Very often, my partner and I receive properties from our network of wholesalers.  This single family home just crossed our desk.  Wholesaler looking for quick close – about 2 weeks.

Property details include:

  • Direct access canal with no bridges
  • Dock and slip
  • 3 bedroom, 2 bathroom
  • pool, spa, large lanai
  • 1440 square feet living area
  • A/C replaced in 2010
  • priced below county tax assessments
  • rehab costs estimated $30,000 to $40,000
  • Suggested resale price based on current comps – $295,000 to $320,000
  • If Buyer represented by agent, Buyer pays Buyer agent commissions

Asking Price – $215,000

This house is in a desirable, growing area of Cape Coral, Florida.  It will not last long at this price.  Location would give 20-30% return on investment if resold within 3 to 6 months.  Higher rate if held as a cash-flow rental.  Email; InvestSWFL@gmail.com for Non-Disclosure agreement and property information.

Keep watching our site for more Investment properties and ideas.

 

Mike Cathell,
Broker/Owner, Investment Property Consultant
Real Estate Solutions of SWFL, LLC

Cell:  (239) 770-6250   Fax:  (239) 220-5508
Email:  InvestSWFL@gmail.com

Earth Calling Ben Or Is It Ben Calling Earth?

Unless you were on the space station, orbiting Earth, you already know that one week ago Ben Bernanke sparked a significant jump in mortgage interest rates with his Fed comments. In some cases, they increased by one half a point over night…that’s HUGE, as Billy Fucillo (our local mega-car dealer in SWFL) would say. Rates continue to climb and fall back, even on an intra-day basis.

There is some speculation that rates may calm down and even drop some, as the market adjusts from Ben’s comments about reducing the Review promotes growthFed’s volume of bond market purchases over the next eighteen months, if the economy continues to improve.
That leaves buyers and investors with a challenging decision – should you move ahead with that mortgage now or wait for a possible pull back in the rates? Here’s a suggestion…if the deal makes sense with today’s rates and terms, then act now. Do not wait for a marginal rate improvement that may not come or may cause you to miss the deal that is on the table now.
Rates are still very attractive vs. historical averages and there are many mortgage features in today’s market that are truly beneficial for the buyer. My company even has an escrow waiver program that can give you increased flexibility with your monthly payment and cash flow. You can also take advantage of our loan product that can go as high as 97% LTV with no mortgage insurance…now that really is HUGE!
Yes, commercial rates are not immune to increases, either, as they tend to follow Prime, LIBOR and other popular indices. So keep that in mind.
              Gary King, MBA

Residential & Commercial RE Advisor
 Real Estate Solutions of SWFL, LLC
                      and
               Broker/Owner
        Innovative Mortgage, LLC
Residential & Commercial Mortgages
       …extraordinary service!
    mobile 239-989-2288 (any time)

Real Estate Investing – Before the First Step

Goals are important in any successful journey and that holds especially true in Real Estate Investment.  More importantly is setting achievable goals.

I an researching trends in Real Estate every week which means I use Google as a search tool. The more specific my search, the better information I see.  For example, “Real Estate” gives over a million articles yet “Waterfront Properties inWrite measurable goals SW Florida” gives fewer but more specific results.

Your Goals for Real Estate Investing should be approached in the same fashion.  Not investing in “Real Estate” but instead looking for ” 8-12 unit multifamily properties in Fort Myers, Florida“.  The hardest part of making goals this way is to stay focused.  Work with an experienced Realtor to focus on your specific properties because along the way you will hear about the Real Estate explosion in Las Vegas and your buddy who just purchased a house in Pittsburgh for 40 cents on the dollar.  Work with an experienced agent and stay the course.

Do not set specific time and money goals.  For example, “I will flip 3 properties by Christmas and make $100,000 profit.”  What happens when Christmas gets here and you have only flipped one property with an $18,000 profit and you are still refurbishing your second property.  Many people become frustrated and disappointed and just quit.  However, if your goal is to purchase three single family homes, refurbish, lease and then sale each unit for its maximum profit, you are more likely to continue towards your goals.  Each transaction is a learning experience making the next transaction easier and more efficient.  After your third flip, you have successfully learned to flip homes for a profit.  Instead of quitting, your experience leads to bigger goals and hopefully bigger profits.

Periodically, your goals and results need to be evaluated.  Your goals need to be written down so they can be reviewed and measured.  If you cannot measure your progress and your success, how can you decide if your efforts are bringing you results?  Also, as you review, you can make necessary changes to your goals to reach the anticipated results.

Work with a Realtor that is the specialist for your choice of property investing.  Your cousin may be an excellent Residential specialist but your interest is investing in retail buildings.  Your cousin may not have the expertise or market expert to get your transaction completed.  Instead, ask your cousin to refer you to another agent with this expertise.

In summary:Review promotes growth

  • Write your goals
  • Work with an experienced Realtor
  • Measure your results
  • Review your goals
  • Do it again!

by Mike Cathell,  Real Estate Solutions of SWFL

Click for more information or to contact Mike

 

 

 

 

Watch out for that First Step!

Over the past several years, I have written numerous blogs and articles about Real Estate Investing.  This blog will be to help with the absolute hardest part of any investment – “the First step”!

This will be an ever-changing site with many professionals adding their Realgoal-300x225.jpg Estate Investing expertise each week.  There will be regular writers covering everything from market trends to project funding to Real Estate Investment tools.  Also, interviews will be featured by many professionals to gain insight into out of the box investing.

 

Weekly contributors will include:

Our goal is not only to make the “First Step” easier but to offer education and tips along the way.  Our group will study market trends, financing models and government legislation changes to keep you on the forefront of Real Estate investing.

Future additions to the site will include:

  • Calendar of live investment seminars
  • Live and recorded Webinars
  • Ability to ask investment questions live to our contributors
  • Analysis tools for your personal investments
  • Online TV Investing Program
  • Suggested reading lists, including blogs we follow

Now is the time to decide.  Are you going to take that all important “First Step”?  Or are you going to be one of the “shoulda, coulda, woulda” speculators who just sits and watches?  Now is the best time to take the first step by subscribing to this blog!  Email us or ask plenty of questions in the comment sections.  Tell us what you want to know.  Tell us about your successes.  But most importantly…

Take the First Step!

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