Tag: Real Estate Education

Pending Home Sales Dip 0.8% in March

Posted on National Association of Realtors on April 27, 2017.

MEDIA CONTACT: ADAM DESANCTIS / 202-383-1178 / EMAIL(LINK SENDS E-MAIL)

WASHINGTON (April 27, 2017) — Pending home sales in March maintained their recent high level, but momentum slackened slightly in most of the country as dearth supply weighed on activity, according to the National Association of Realtors®. Only the South saw an uptick in contract signings last month.

The Pending Home Sales Index,* www.nar.realtor/topics/pending-home-sales, a forward-looking indicator based on contract signings, declined 0.8 percent to 111.4 in March from 112.3 in February. Despite last month’s decrease, the index is 0.8 percent above a year ago.

Lawrence Yun, NAR chief economist, says sparse inventory levels caused a pullback in pending sales in March, but activity was still strong enough to be the third best in the past year. “Home shoppers are coming out in droves this spring and competing with each other for the meager amount of listings in the affordable price range,” he said. “In most areas, the lower the price of a home for sale, the more competition there is for it. That’s the reason why first-time buyers have yet to make up a larger share of the market this year, despite there being more sales overall.”

Pointing to revealing data from the March Realtors® Confidence Index, Yun worries that the painfully low supply levels this spring could heighten price growth — at 6.8 percent last month — even more in the months ahead. Homes in March came off the market at a near-record pace 1, and indicating an increase in the likelihood of listings receiving multiple offers, 42 percent of homes sold at or above list price (the second highest amount since NAR began tracking in December 2012).

“Sellers are in the driver’s seat this spring as the intense competition for the few homes for sale is forcing many buyers to be aggressive in their offers,” said Yun. “Buyers are showing resiliency given the challenging conditions. However, at some point — and the sooner the better — price growth must ease to a healthier rate. Otherwise sales could slow if affordability conditions worsen.”

Yun forecasts for existing-home sales to be around 5.64 million this year, an increase of 3.5 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

The PHSI in the Northeast decreased 2.9 percent to 99.1 in March, but is still 1.8 percent above a year ago. In the Midwest the index declined 1.2 percent to 109.6 in March, and is now 2.4 percent lower than March 2016.

Pending home sales in the South rose 1.2 percent to an index of 129.4 in March and are now 3.9 percent above last March. The index in the West fell 2.9 percent in March to 94.5, and is now 2.7 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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1 Properties typically stayed on the market for 34 days in March, which is down from 47 days a year ago and is the second lowest since NAR began tracking in May 2011. The lowest was May 2016 at 32 days.

* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: NAR’s metropolitan area home price report for the first quarter will be released May 15, Existing-Home Sales for April will be reported May 24, and the next Pending Home Sales Index will be May 31; all release times are 10:00 a.m. ET.

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

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:

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

 

Crowdfunding for Real Estate Investing

Almost like being back in school, here are a couple of definitions to memorize.  Both are taken from Dictionary.com

  1.  Crowdfunding:    the activity or process of raising money from a large number of people, typically through a website, as for a project or small business.
  2. Vet:     to appraise, verify, or check for accuracy, authenticity, validity, etc.:
    An expert vetted the manuscript before publication.

Crowdfunding has become the new reality for Real Estate Investment.  The advantages to crowdfunding are:

  1. Lots of property choices
  2. Lots of Property categories
  3. Ability to borrow funds from large group of Investors for your projects
  4. Your property listings presented to a large group of Investors
  5. Transparency

The reason I also posted the definition for Vetting is another advantage of crowdfunding. ??????????????????????????????????????? The properties are analyzed by a group of Real Estate Investment professionals.  You are not at the whim of a single agent.  You are given an ID into the group website to view your trasactions as they are funded or purchased (transparency).  You also can view the properties, purchases and sales of the group as a whole.

Some of the groups have an average return of  11.5% to 14% return on short term Property Investments.  I t can go much higher for long term Property Investments.

I am working with a small team presently to Flip properties in Central and SW Florida.  Future blogs will talk about the progress of the group.  If interested in learning more about what we are doing or to get information about being a member, text “Investment” to (239)  770-6250 or email InvestSWFL@gmail.com.

Mike Cathell,
Broker/Owner, Investment Property Consultant

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

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

 

 

 

 

 

For House Buyers in a Seller’s Market

A quick definition of a Seller’s Market is when many Buyers are competing for a small inventory of houses.  We are currently experiencing this trend in SW Florida. The inventory has dropped significantly the past few months and new Home Buyers are migrating to Florida in record numbers.  What does this mean for current Buyers?

With a low inventory, the Buyer needs to be less selective on the features that are needed, wanted or would like to unnamedhave.  In the past I had Buyers list all the features they wanted in their Dream Home.  Then we would edit the list crossing off things that were not necessary in the decision, items that were negotiable and items the Buyer could not live without.  This list has never been more important than in a Seller’s Market.

Every Buyer needs to realize, there is lots of competition on each house.  To get the offer to contract a Buyer needs to be aggressive, have everything in order and be realistic.

First thing first.  Get your financing in place.  Sending an offer with a Bank Loan approval letter is far stronger than the Buyer who will apply after the contract is accepted.  Cash offers will always take precedence over financing, but taking this step first shows the Seller you are a serious Buyer.

If you are planning to put in “Low Ball” offers, you are wasting everyone’s time.  If the property is priced correctly, the Seller should get multiple offers very quickly.  I have had clients in shock when they lose an offer at List price.   Price is dictated by Demand.  More Buyers than Sellers + Low Inventory  =  Demand.  It is not unusual to see houses selling for higher than list price in a Seller’s Market.

Compromise in inevitable.  The chances of finding a home with all your wants and needs is very slim.  As I mentioned earlier, take your list and decide what you are willing to give up.  With fewer choices, the house with all your wants may not even be in the current sales inventory.

A Seller’s Market is not for every Home Buyer.  Buyers need to weigh the importance of buying now or waiting.  The Buyer needs to be aggressive and realistic with offers.  Most important, work with a knowledgeable Realtor.

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

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com

 

Real Estate Services of SWFL, LLC