Tag: Residential Real Estate Trends

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!

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
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Greatest Home Seller in History?

Recently, I was having coffee with a number of my Real Estate peers and the subject of the Saint Joseph Statue was brought up.  I had known about the Statue for some time and have even used it on hard to sell properties.  My parents’ agent used the statue years ago to sell their house.

For those of you unfamiliar with Saint Joseph, he was Jesus of Nazareth’s earthly father.  He was a skilled carpenter and taught his skills to Jesus.  He made sure his family always had a home over their head.  For centuries, people have prayed to St. Joseph when they needed help in finding or selling a home.

Legend has it a group of Nuns in the early 1500’s needed land for their cloister.  They prayed to St. Joseph and then buried St. Joseph medals and continued to pray to him.  Shortly, after their prayers were answered and they received the much needed land.  Their medals were the first “St. Joseph Real Estate Sales Kit”.  Later the medals were replaced with small statues.

St. Joseph Real Estate Sales Kit

Whether you are a believer or not, the Legend is well known in Real Estate circles.  The “Real Estate Sales Kits” are available at many Real Estate Board stores.  Thousands of testimonials are available on online websites that sell the “St. Joseph Sales Kits”.  The statue is buried head down in front of the property.  A daily prayer is recited asking St. Joseph to help.  When the house sells, the owner is to dig up the statue and take it to their new home.  The statue is then buried head up and the blessings follow the family to their new home.

So, if you have a hard to sell property, you may want to look into this historic sales kit.  Will it help?  I can’t say but a little prayer never hurts!

 

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

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

 

 

 

 

 

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:

Lee County Market Watch (Previous 7 Days)

New Listing (297)
Sold (0)
Rented (203)
Leased (0)
Terminated (66)
Expired (25)
Back On Market (38)
Extended (38)
Pending (0)
Price Increase (50)
Price Decrease (154)
Withdrawn (44)
Application In Progress (143)

Real Estate Services of SWFL, LLC

Motivational Monday – July 7, 2016

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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

Got Property Investment Strategy?

I have a small Property Investment & Strategy group that  meets in SW Florida and the question I ask the most often is “What is your Property Investment Strategy?”  Most often the answer – “I don’t have one.”

To  quote the Cheshire Cat in “Alice in Wonderland” – “If you do not know where you are going, it does not matter how you get there!”

Enough quotation marks!  The point is how can you measure your progress if you do not have a plan?  There is an endless list of ways to make money in Real Estate Property Investing.  Some of the choices you need to make include:

  • Residential or Commercial?
  • If Residential – Single Family Homes, Condos or Duplex?
  • If Commercial – Multi-family, Offices or Retail?
  • Flip or Hold?
  • If hold -manage myself or pay property manager?
  • If flip – wholesale or rehab?
  • and it goes on and on…..

Our group has a three-year plan that involves flipping at first. The next phase will be to continue flipping properties but to hold select properties as cash flow properties.  The third phase will continue flipping and holding but now to add building houses to our portfolio.

Watch for future blogs if you are interested in being a member of our Southwest and Central Florida Investment Groups.

Mike Cathell,
Broker/Owner, Investment Property Consultant

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

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#Real Estate Investing    #Fort Myers Real Estate      #Cape Coral Real Estate