I attended a seminar the other day and the presenter made reference to a website that tracks sex offenders and predators in Florida. I spent less than 30 seconds on the website and found out there are 75 registered sex offenders and predators within five miles of my home.
This website is a very valuable tool for parents and anyone else that wants to know how close to your home registered sex offenders live. But I don't want this to sound like a witch hunt. I think it is important for parents to know who their neighbors are if these neighbors are registered sex offenders.
You can search by entering your address or any other address. Then you select the radius by miles from 1/4 of a mile to 5 miles from your home. Seconds later, the list of offenders is displayed with quite a bit of information about each of them.
But that's not all. You can actually subscribe to an email database notice whenever a sex offender moves into your neighborhood. And you can also set updates for when a sex offenders changes addresses.
And there's more. You can also search for sex offenders by email addresses or Instant Message addresses they have used.
This is a valuable tool for anyone concerned about who is living nearby when it comes to the safety of your family and friends. Here is a link to the website - http://offender.fdle.state.fl.us/offender/Search.jsp
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Monday, August 31, 2009
Sunday, August 30, 2009
Jensen Beach High School Wins National Contest
Jensen Beach High School students were recently recognized in a national contest - Idea Book for Educators. The students have been involved in making 150 quilts during Black History month. As one of the eight national winners, they will receive $1,000.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Friday, August 28, 2009
Mortgage Lenders Try to Clip Flippers
We're hearing more horror stories about banks doing dumb short sale deals, only to learn the entire deal was set up by the real estate agent, and the buyer flipped the property a week or two after closing. One problem banks face is the sheer volume of problem properties. Banksters simply don't have the manpower or the experience to handle these properties. So the turn to asset managers who then turn to real estate brokers that are less than professional.
Instead of training, procedures, process and check points, banks simply want to exclude investors from the market. And rightly so. When unscrupulos real estate brokers hook up with unqualified asset managers, it is not only a recipe for disaster for the lender, but it hurts property values in the markets these players are active in.
We see foreclosure properties that are never listed in the MLS as they are required to be, that are flipped a week or two after closing. These properties are sold at deep discounts, which in turn hurts local appraisals of remaining inventory. But the entire problem rests with the banks. If they hired competent asset managers AND the asset managers qualified the real estate agents they hired, maybe . . . just maybe things would get better. Unfortunately, even when the asset managers think they have hired decent real estate agents, the asset managers have NO system to check up on these idiots . . . and once the agents realize that, they let the properties fall into disrepair, until the price gets lower and lower and lower. At that point, they bring in a friend and buy the property for a quick flip.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Instead of training, procedures, process and check points, banks simply want to exclude investors from the market. And rightly so. When unscrupulos real estate brokers hook up with unqualified asset managers, it is not only a recipe for disaster for the lender, but it hurts property values in the markets these players are active in.
We see foreclosure properties that are never listed in the MLS as they are required to be, that are flipped a week or two after closing. These properties are sold at deep discounts, which in turn hurts local appraisals of remaining inventory. But the entire problem rests with the banks. If they hired competent asset managers AND the asset managers qualified the real estate agents they hired, maybe . . . just maybe things would get better. Unfortunately, even when the asset managers think they have hired decent real estate agents, the asset managers have NO system to check up on these idiots . . . and once the agents realize that, they let the properties fall into disrepair, until the price gets lower and lower and lower. At that point, they bring in a friend and buy the property for a quick flip.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Thursday, August 27, 2009
Obama to Banks - Hurry Up and Be More Stupid
The ObamaRamaLama Administration of clowns, crooks and cronies are complaining about Banksters failure to modify mortgages. WAKE UP AMERICA.
Michael Barr, Treasury's assistant secretary for financial institutions, recently said, "We have been disappointed . . . about the variation in service performance in helping people in a timely fashion and with the respect they deserve."
Obama's $75 billion for a "housing recovery plan" announced in March is as cloudy as the rest of the bailouts the Banksters have crafted. Worse yet, when you look at the four banks that represent more than half of the mortgages in bank hands, we are talking about Bank of America, JP Morgan Chase, Wells Fargo and Citi. Isn't it interesting that these four banks received more bailout dollars than all other banks combined times two. Actually, times 10+!
Courts Disagree with Obama - Obama may want the banks to modify mortgages, but most of the mortgages are not owned by the banks. Banks and mortgage companies like Countrywide were pushing and pumping out mortgages like a drug dealer hawking his wares on a street corner. Most of the mortgages were packaged up, then slided and diced into pieces and sold off to pension funds, foreign governments and other unsuspecting suckers. So now Obama wants the banks to modify the garbage.
OK - that's exactly what Countrywide did. They modified mortgages, and a Federal judge ruled in favor of the owners of those mortgages. Countrywide was the servicing company now. They had already sold their interest in the mortgages. There really is not battle here. Most mortgages cannot be modified because they have been pooled up and sliced up, so you may have several owners of a single mortgage. And without the consent of all owners, there will be no mortgage modifications on these pools of mortgages.
Successful Modifications - For the banks that do own mortgages, they have had very limited success in modifying very many. It's tough to modify a $400,000 mortgage when the property is only worth $200,000 and there never was any equity . . . as so many mortgages were no money down or very little money down. Another sad factor is the failure rate on modified mortgages. Within just six months most of these mortgages are in default again!
Laughing All the Way to the Bank . . . is the only way to describe the attitude of Banksters as they drive to work every morning. Paulson and Obama have handed over the keys to the government printing presses. The Banksters can do what they please, when they please. And they don't want to refinance or modify mortgages that are going to get them into more trouble down the road.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
..
Michael Barr, Treasury's assistant secretary for financial institutions, recently said, "We have been disappointed . . . about the variation in service performance in helping people in a timely fashion and with the respect they deserve."
Obama's $75 billion for a "housing recovery plan" announced in March is as cloudy as the rest of the bailouts the Banksters have crafted. Worse yet, when you look at the four banks that represent more than half of the mortgages in bank hands, we are talking about Bank of America, JP Morgan Chase, Wells Fargo and Citi. Isn't it interesting that these four banks received more bailout dollars than all other banks combined times two. Actually, times 10+!
Courts Disagree with Obama - Obama may want the banks to modify mortgages, but most of the mortgages are not owned by the banks. Banks and mortgage companies like Countrywide were pushing and pumping out mortgages like a drug dealer hawking his wares on a street corner. Most of the mortgages were packaged up, then slided and diced into pieces and sold off to pension funds, foreign governments and other unsuspecting suckers. So now Obama wants the banks to modify the garbage.
OK - that's exactly what Countrywide did. They modified mortgages, and a Federal judge ruled in favor of the owners of those mortgages. Countrywide was the servicing company now. They had already sold their interest in the mortgages. There really is not battle here. Most mortgages cannot be modified because they have been pooled up and sliced up, so you may have several owners of a single mortgage. And without the consent of all owners, there will be no mortgage modifications on these pools of mortgages.
Successful Modifications - For the banks that do own mortgages, they have had very limited success in modifying very many. It's tough to modify a $400,000 mortgage when the property is only worth $200,000 and there never was any equity . . . as so many mortgages were no money down or very little money down. Another sad factor is the failure rate on modified mortgages. Within just six months most of these mortgages are in default again!
Laughing All the Way to the Bank . . . is the only way to describe the attitude of Banksters as they drive to work every morning. Paulson and Obama have handed over the keys to the government printing presses. The Banksters can do what they please, when they please. And they don't want to refinance or modify mortgages that are going to get them into more trouble down the road.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
..
Wednesday, August 26, 2009
Florida Population Drops
Since the end of World War II, Florida's population has known only one direction . . . UP. That all changed last year when Florida's population dropped by 58,000 according to the University of Florida Bureau of Economic and Business Research.
Why? Easy answer . . . the end of the housing bubble means tens of thousands of jobs tagged to construction, mortgages and real estate have moved on to greener pastures. Florida's troubles are nowhere near over. As the unemployment rate rises in the other 49 states, that means less people visiting Florida for vacation. Less visitors means fewer jobs for Floridians relying on tourism and all of the industry that feeds the tourism industry.
Unemployment in Florida has jumped from 3% in 2006 to more than 10% today. In fact, when you consider the true unemployment number in Florida it is closer to 20% than 10% in some hard hit areas like Cape Coral, Port St. Lucie and Miami.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Subscribe to Mike's Florida Real Estate Blog - Click Here
.
Why? Easy answer . . . the end of the housing bubble means tens of thousands of jobs tagged to construction, mortgages and real estate have moved on to greener pastures. Florida's troubles are nowhere near over. As the unemployment rate rises in the other 49 states, that means less people visiting Florida for vacation. Less visitors means fewer jobs for Floridians relying on tourism and all of the industry that feeds the tourism industry.
Unemployment in Florida has jumped from 3% in 2006 to more than 10% today. In fact, when you consider the true unemployment number in Florida it is closer to 20% than 10% in some hard hit areas like Cape Coral, Port St. Lucie and Miami.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Subscribe to Mike's Florida Real Estate Blog - Click Here
.
Saturday, August 22, 2009
Stimulus Dollars for Oysters - 100 More Jobs
Here's a positive piece to lighten up the mood. I know that headline sounds crazy, but these dollars will be paying us back for many years to come. And I wanted to include this on my blog to show you another example of how cool it is to live in Martin County.
Here in Martin County, as in other areas of Florida, restoration of the waterways is high on the list of priorities. One way to clean rivers and develop wildlife habitat is to create oyster reefs . . . and that is what a portion of the federal stimulus dollars is going to pay for.
Oyster reefs are critical to the health of our waterways by filtering out toxins. One adult oyster can filter between 20 and 50 gallons of water a day. Multiply that by thousands of oysters and it is easy to see how healthy oyster reefs can filter an entire river system. The Oyster Reef Restoration Project has plans to construct more than 1,200 oyster reefs, using truck loads of oyster shells, coral and other biogenic materials.
And there's more . . .
The oyster reef provides essential habitat for juvenile fish, clams, crabs, shrimp and many other species. And . . . more than 100 jobs ranging from marine construction to research will be created as well.
If you're interested in more information contact the Martin County Engineering Department at (772) 219-4930 or stop by the open house scheduled for September 2nd from 5:30 to 7:30 p.m. at the Stuart Recreation Center on Flagler Street.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
..
Here in Martin County, as in other areas of Florida, restoration of the waterways is high on the list of priorities. One way to clean rivers and develop wildlife habitat is to create oyster reefs . . . and that is what a portion of the federal stimulus dollars is going to pay for.
Oyster reefs are critical to the health of our waterways by filtering out toxins. One adult oyster can filter between 20 and 50 gallons of water a day. Multiply that by thousands of oysters and it is easy to see how healthy oyster reefs can filter an entire river system. The Oyster Reef Restoration Project has plans to construct more than 1,200 oyster reefs, using truck loads of oyster shells, coral and other biogenic materials.
And there's more . . .
The oyster reef provides essential habitat for juvenile fish, clams, crabs, shrimp and many other species. And . . . more than 100 jobs ranging from marine construction to research will be created as well.
If you're interested in more information contact the Martin County Engineering Department at (772) 219-4930 or stop by the open house scheduled for September 2nd from 5:30 to 7:30 p.m. at the Stuart Recreation Center on Flagler Street.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
..
Friday, August 21, 2009
More High End Jobs for Stuart, Florida - Martin County
We don't have big factories or high rise office towers in Martin County, but we seem to get our fair share of high end jobs. Moreover, we are smack in between Palm Beach County and St. Lucie County, which makes for an easy commute.
Last week I reported that Vought Aircraft Industries was adding 100 jobs at their Stuart location. Today I can confirm that SystemsOne LLC is relocating to Stuart and will grow to 30 employees within a year. SystemsOne provides video imaging to the medical industry.
SystemsOne Website - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Last week I reported that Vought Aircraft Industries was adding 100 jobs at their Stuart location. Today I can confirm that SystemsOne LLC is relocating to Stuart and will grow to 30 employees within a year. SystemsOne provides video imaging to the medical industry.
SystemsOne Website - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
.
Thursday, August 20, 2009
Buying Foreclosures - Banks Not Disclosing Material Facts
This has become a very serious issue with the sale of foreclosed properties, also known as REOs (real estate owned). We are seeing this on a number of fronts from failure to disclose "known" material defects to failure to disclose "known" hazards, unpaid assessments, and other facts that may affect the value of the property.
Shhhh - Keep Your Mouth Shut - That's exactly what one bank representative told us when we advised them there was a roof leak and the garage conversion to a bedroom was in violation of the local building code. We were representing the bank as the listing agent. Another agent brought us a contract and during the closing process had the home inspected. The inspection report revealed the roof damage, the garage conversion issue and a list of a dozen other problems. The bank refused to fix any of the problems, so the buyer walked away from the deal.
When I advised the bank representative that we must now disclose all of the defects in the inspection report, they told me to keep my mouth shut, because they do NOT disclose anything.
Banks Don't Disclose - Initially, a bank does NOT have to supply any disclosure statement because they have not lived in the house, nor do they have any information about any defects. However, if they do have information about defects in the home or material facts about the surrounding area, they are required by law to disclose. Unfortunately, for buyers, banks still resist disclosing, even when they become aware of defects. This is in direct violation of Florida real estate law. Johnson v. Davis 480 So.2d 625 (Fla. 1985)
Brokers MUST Disclose - Here is where it really gets tricky. When the bank has no knowledge of defects, but the broker is aware of material defects in the home and maybe the fact that there is an assessment about to be levied on the property . . . the broker MUST disclose. Florida Statute 475.278 2 (d) The tricky part is, the bank is telling the broker . . . "if you disclose the defects and the assessment, you will never get another listing from us."
Most brokers realize, non-disclosure means they could lose their license AND be liable for the cost of repairing any defects or remedying any material facts that they failed to disclose AND had an affect on the price. In the most extreme cases, the broker would be required to purchase the home from the buyer AND pay all damages the buyer suffered. But there are still many, many, many, many broker that take this risk everyday.
Buyer BEWARE - As a buyer, you need to do your own homework. This includes a "real" inspection of the home. Unfortunately, most home inspectors are nothing more than guys that have done a little plumbing or construction work, and they know how to fill out a checklist. If you're paying less than $500 for an inspection, I can almost guarantee you that you are NOT getting a thorough inspection. We use a variety of inspectors, and yes . . . we sometimes use the checklist guys, because many of our clients don't want to pay $700-$1,500 for a detailed inspection by an "expert" that inspects everything from the basics of the roof to the most intricate electrical issues that require special equipment.
In addition to the inspection, I recommend having your agent send a letter to the listing agent, asking "specifically" if they know of any defects in the home, the property or any material facts that may affect the value of the property, including assessments, unpaid HOA fees, fines or fact regarding the surrounding area.
Good News - If you buy a home from a bank and later find defects or suffer damages, you may have a claim for fraud that may result in treble damages or punitive damages . . . if the bank or broker knew or should have known of the defects, and they failed to disclose. My advice to you is to be very careful when buying foreclosure properties.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
Shhhh - Keep Your Mouth Shut - That's exactly what one bank representative told us when we advised them there was a roof leak and the garage conversion to a bedroom was in violation of the local building code. We were representing the bank as the listing agent. Another agent brought us a contract and during the closing process had the home inspected. The inspection report revealed the roof damage, the garage conversion issue and a list of a dozen other problems. The bank refused to fix any of the problems, so the buyer walked away from the deal.
When I advised the bank representative that we must now disclose all of the defects in the inspection report, they told me to keep my mouth shut, because they do NOT disclose anything.
Banks Don't Disclose - Initially, a bank does NOT have to supply any disclosure statement because they have not lived in the house, nor do they have any information about any defects. However, if they do have information about defects in the home or material facts about the surrounding area, they are required by law to disclose. Unfortunately, for buyers, banks still resist disclosing, even when they become aware of defects. This is in direct violation of Florida real estate law. Johnson v. Davis 480 So.2d 625 (Fla. 1985)
Brokers MUST Disclose - Here is where it really gets tricky. When the bank has no knowledge of defects, but the broker is aware of material defects in the home and maybe the fact that there is an assessment about to be levied on the property . . . the broker MUST disclose. Florida Statute 475.278 2 (d) The tricky part is, the bank is telling the broker . . . "if you disclose the defects and the assessment, you will never get another listing from us."
Most brokers realize, non-disclosure means they could lose their license AND be liable for the cost of repairing any defects or remedying any material facts that they failed to disclose AND had an affect on the price. In the most extreme cases, the broker would be required to purchase the home from the buyer AND pay all damages the buyer suffered. But there are still many, many, many, many broker that take this risk everyday.
Buyer BEWARE - As a buyer, you need to do your own homework. This includes a "real" inspection of the home. Unfortunately, most home inspectors are nothing more than guys that have done a little plumbing or construction work, and they know how to fill out a checklist. If you're paying less than $500 for an inspection, I can almost guarantee you that you are NOT getting a thorough inspection. We use a variety of inspectors, and yes . . . we sometimes use the checklist guys, because many of our clients don't want to pay $700-$1,500 for a detailed inspection by an "expert" that inspects everything from the basics of the roof to the most intricate electrical issues that require special equipment.
In addition to the inspection, I recommend having your agent send a letter to the listing agent, asking "specifically" if they know of any defects in the home, the property or any material facts that may affect the value of the property, including assessments, unpaid HOA fees, fines or fact regarding the surrounding area.
Good News - If you buy a home from a bank and later find defects or suffer damages, you may have a claim for fraud that may result in treble damages or punitive damages . . . if the bank or broker knew or should have known of the defects, and they failed to disclose. My advice to you is to be very careful when buying foreclosure properties.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
Wednesday, August 19, 2009
Conference Call with Mike - Real Estate and Financial Markets
It's been three months since my heart attack and bypass surgery, and I have been itching to get back into the saddle. I will hold a Conference Call Saturday afternoon at 6PM Eastern to discuss the Financial and Real Estate Markets. If you have questions, please feel free to email them in advance Mike@Morgan7.com or you can ask them during the call.
Space is limited and you must register in advance.
Register for your access code and dial in number below:
https://www2.gotomeeting.com/register/363032810
Space is limited and you must register in advance.
Register for your access code and dial in number below:
https://www2.gotomeeting.com/register/363032810
Foreclosured Homes vs. Foreclosure Filings
The media has been having a field day over the last few years trying to spin the housing crisis. And for the longest time the media didn't even want to admit there was a problem. Just think back about the numbers and headlines we saw coming out of the National Association of Realtors (NAR) month after month . . . telling us it was the bottom, things were turning, GREAT Time to Buy, buyers' market and whatever else they could dream up after a few tokes on the crack pipe.
If you think that is too harsh, remember . . . David Lereah (Liar) was fired from NAR as their Chief Economist and Chief Spokesman (Liar) because his spin was wearing thin. Now David Liar is out publicly "admitting" he lied and spun the truth. His successor Lawrence Yun is even worse.
The Spin Factor - In any event, I am getting a bit off track - as usual. I wanted to explain a common spin in the numbers that can vary from month to month and even within one month, from area to area.
Foreclosed Homes - This means the lender has filed a foreclosure action in court AND received final judgment. Basically, it is final, and the mortgagor has lost the home to the lender. It is official and in the deed is now in the name of the lender.
Foreclosure Filings - This means the lender has filed a foreclosure action in court. That's it. Nothing more. It could take weeks, months and in some cases a year or more before there is a final judgment.
OK, so when you hear about Foreclosures being Up or Down, you need to look at both numbers. What the media will do, is spin whichever number is better for whatever message they want to get across. Rarely will you see solid reporting where they talk about both numbers and explain what each means.
Great News - Foreclosures Down - I just finished reading an article with an upbeat headline about how foreclosures had fallen, and this was such a grrrreeat sign. OK, that makes sense, right?
Bad News - Foreclosure Filings UP - Whoa . . . because in that same area, foreclosure "filings" had more than doubled. Here's what this means. During the past six months, the Obama Administration has pressured banks to back off from foreclosures. Obama and his clowns monkeyed with the free markets, and the numbers of foreclosed homes dropped.
But . . . and this is a huge but . . . now that the clowns and monkeys have no idea what to do next, the Banksters are running to court to "file" foreclosure actions. And that is why the number of new foreclosed homes fell, but the number of foreclosure filings has spiked higher.
Once these foreclosure filings are completed, we will see the same spike in foreclosed homes.
The Real Numbers - You want to watch foreclosure filings, and when these begin to fall, then you know we could be approaching a leveling off, that may lead to a bottom. If you are looking at foreclosed homes, you want to look at prices, days on market and absorption rates. I know that is a lot to think about, but that is the only way to get a real picture for what is going on.
Delinquency Notices - Finally, you also need to factor in delinquency notices. I hate to confuse you, but even before a foreclosure filing, you have delinquency notices. So if you want to truly gauge what is going on, you need to factor in delinquencies. If these spike, you can expect a spike in foreclosure filings that will convert to foreclosed homes . . . but this conversion process could take 6-18 months.
Summary - We ARE, in fact, seeing a huge spike in delinquencies as unemployment grows. This is an ugly number that tells me we are not going to see a "U" or a "V" recovery, but instead we are headed for another leg down. Beware of the next ObamaRamaLama: (1) another extension or version in the $8,000 home buyer credit, or (2) the Administration to start buying homes with or without Chinese drywall and bulldozing them, or (3) a tremendous Bankster deal that will reward the Banksters for mortgage relief or forgiveness . . . that they will burden taxpayers with.
But one thing I can guarantee you . . . liars can figure but figures don't lie. Delinquencies are rising. Unemployment is rising. One plus one will always equal two. And in this case it means more delinquencies, more foreclosure filings, more foreclosed homes . . . and falling home prices, which in turn will lead to more homes underwater.
Looking for a home or condo in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
If you think that is too harsh, remember . . . David Lereah (Liar) was fired from NAR as their Chief Economist and Chief Spokesman (Liar) because his spin was wearing thin. Now David Liar is out publicly "admitting" he lied and spun the truth. His successor Lawrence Yun is even worse.
The Spin Factor - In any event, I am getting a bit off track - as usual. I wanted to explain a common spin in the numbers that can vary from month to month and even within one month, from area to area.
Foreclosed Homes - This means the lender has filed a foreclosure action in court AND received final judgment. Basically, it is final, and the mortgagor has lost the home to the lender. It is official and in the deed is now in the name of the lender.
Foreclosure Filings - This means the lender has filed a foreclosure action in court. That's it. Nothing more. It could take weeks, months and in some cases a year or more before there is a final judgment.
OK, so when you hear about Foreclosures being Up or Down, you need to look at both numbers. What the media will do, is spin whichever number is better for whatever message they want to get across. Rarely will you see solid reporting where they talk about both numbers and explain what each means.
Great News - Foreclosures Down - I just finished reading an article with an upbeat headline about how foreclosures had fallen, and this was such a grrrreeat sign. OK, that makes sense, right?
Bad News - Foreclosure Filings UP - Whoa . . . because in that same area, foreclosure "filings" had more than doubled. Here's what this means. During the past six months, the Obama Administration has pressured banks to back off from foreclosures. Obama and his clowns monkeyed with the free markets, and the numbers of foreclosed homes dropped.
But . . . and this is a huge but . . . now that the clowns and monkeys have no idea what to do next, the Banksters are running to court to "file" foreclosure actions. And that is why the number of new foreclosed homes fell, but the number of foreclosure filings has spiked higher.
Once these foreclosure filings are completed, we will see the same spike in foreclosed homes.
The Real Numbers - You want to watch foreclosure filings, and when these begin to fall, then you know we could be approaching a leveling off, that may lead to a bottom. If you are looking at foreclosed homes, you want to look at prices, days on market and absorption rates. I know that is a lot to think about, but that is the only way to get a real picture for what is going on.
Delinquency Notices - Finally, you also need to factor in delinquency notices. I hate to confuse you, but even before a foreclosure filing, you have delinquency notices. So if you want to truly gauge what is going on, you need to factor in delinquencies. If these spike, you can expect a spike in foreclosure filings that will convert to foreclosed homes . . . but this conversion process could take 6-18 months.
Summary - We ARE, in fact, seeing a huge spike in delinquencies as unemployment grows. This is an ugly number that tells me we are not going to see a "U" or a "V" recovery, but instead we are headed for another leg down. Beware of the next ObamaRamaLama: (1) another extension or version in the $8,000 home buyer credit, or (2) the Administration to start buying homes with or without Chinese drywall and bulldozing them, or (3) a tremendous Bankster deal that will reward the Banksters for mortgage relief or forgiveness . . . that they will burden taxpayers with.
But one thing I can guarantee you . . . liars can figure but figures don't lie. Delinquencies are rising. Unemployment is rising. One plus one will always equal two. And in this case it means more delinquencies, more foreclosure filings, more foreclosed homes . . . and falling home prices, which in turn will lead to more homes underwater.
Looking for a home or condo in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
Tuesday, August 18, 2009
Miami Condos Selling Fast - It Depends
We're starting to see isolated headlines about some high end condo sales in Miami, but you must still read between the lines. And even more important, you need to read what is not even being talked about.
NBA Star Buys $5.5M Condo - That was a headline two weeks ago. Amar Stoudemire of the Phoenix Suns bought a penthouse in the W South Beach. What you are not hearing about, are the athletes and celebrities that are selling their units at losses. This market is by no means bouncing back.
The hype is there, and now we have our very own Reality TV show about Miami and the spoiled, obnoxious, arrogant rich kids that make this their play ground. But that is not enough to fill the tens of thousands of empty condo units throughout South Florida.
Even the Stoudemire purchase needs some tea leaf reading. The W South Beach is not in the kind of trouble that hundreds of other South Florida condo projects are in. For many condo projects, you cannot even obtain financing, because so many of the units are empty, in default and/or delinquent in paying dues and fees.
My advice is to look, but don't touch in many of these condo towers. If you have done your homework, then you can think about buying, but make sure you have determined how many units are vacant, how many are delinquent, and what kind of trouble the condo association might be in.
Looking for a home or condo in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
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NBA Star Buys $5.5M Condo - That was a headline two weeks ago. Amar Stoudemire of the Phoenix Suns bought a penthouse in the W South Beach. What you are not hearing about, are the athletes and celebrities that are selling their units at losses. This market is by no means bouncing back.
The hype is there, and now we have our very own Reality TV show about Miami and the spoiled, obnoxious, arrogant rich kids that make this their play ground. But that is not enough to fill the tens of thousands of empty condo units throughout South Florida.
Even the Stoudemire purchase needs some tea leaf reading. The W South Beach is not in the kind of trouble that hundreds of other South Florida condo projects are in. For many condo projects, you cannot even obtain financing, because so many of the units are empty, in default and/or delinquent in paying dues and fees.
My advice is to look, but don't touch in many of these condo towers. If you have done your homework, then you can think about buying, but make sure you have determined how many units are vacant, how many are delinquent, and what kind of trouble the condo association might be in.
Looking for a home or condo in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Monday, August 17, 2009
Fannie and Freddie - Reality TV Stars
Fannie Mae recently told us they need another $10.7 billion of taxpayer money, after already receiving about $34 billion . . . that fools like Carney Frank and Dudley Dodd told us would never be needed.
Freddie Mac headlines recently shouted out how great things are because they didn't lose money . . . if you excluded dividends they were required to pay. So in reality, they lost money. It's funny, how we crave reality when it comes to TV shows, but we don't want any part of it when it comes to our financial systems or our futures.
$2 Trillion Problem - Fannie and Freddie guarantee or own more than $2 trillion in mortgages, and that number is growing, as these two "stars" are the last resort in a housing market that is stumbling along like a drunken sailor on a short pier.
With the very best estimates putting more than 20% of all mortgages underwater, you can do some simply math and double that number to 40% or more for Fannie and Freddie.
Ground Zero - I'm at ground zero in my real estate brokerage, and we work with banks and foreclosures every day. On average we are seeing banks recover about 35% of the mortgage value after foreclosing on properties and paying off the attorneys, asset managers, real estate agents, contractors and consultants. And believe me . . . I'm being generous with the 35%.
This means on $2 trillion in mortgages, there will be losses exceeding $1.3 trillion, which is more than enough to pay for Obama's health care plan, a fleet of jets for Congress, and a few hundred billion for Goldman Sachs' fees and Bankster Bonuses.
Head You Lose - Tails Goldman Sachs Wins - You don't think that $1.3 trillion will come from the tooth fairy, do you? Nope. If you're tuned into this Reality TV show, that $1.3 trillion will come from you, your kids and your grandchildren . . . and their kids and grandchildren.
Geithner Sends Smoke Signals - If you think I'm making this stuff up, you need to put down the beer and chips, and pick up the newspaper. In fact, Tim the Tax Cheat just told us Fannie and Freddie are doomed to be broken up, when he appeared at the House Financial Services Committee hearing. But he made it sound like something good was going to come from this break up. Not so with James Lockhart . . .
James Lockhart, departing director of the Federal Housing Finance Agency, kinda, sorta, winkie-winkie told us our $85 billion was gone and it was going to cost a heapin' pile more to unwind these two kids. Actually, he only told us we were going to lose some of the $85 billion, but this guy has been lying through his teeth, toes and nose since he landed in Washington.
Good Bank - Bad Bank . . . The Sequel - It's back again, like Ground Hog day. You see, rehashing Good Bank - Bad Bank is nothing more than a pirated copy of Ground Hog day played on a black and white TV with the static. Each time we hear it, it gets worse. But here we are proposing to take the good assets from Fannie and Freddie and leaving the bad assets for "another" entity. First of all, that entity is you the taxpayer. Second, you can rest assured the good assets will go to friends and family of Goldman Sachs. Didn't you hear? That's been deemed an inalienable right during this financial crisis.
Sparks but No Kaboom - That's the big issue. Everyone keeps asking me, what will trigger the next leg down in the financial markets. What will trigger a meltdown? My response is anything from a natural disaster to a war or maybe the reality we are facing with a mortgage market that is one Reality TV scene away from total blackout.
By the way, the $1.3 trillion potential hit in the Fannie and Freddie debacle is probably only a quarter of the total residential and commercial loss that seems to be growing by the day.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Freddie Mac headlines recently shouted out how great things are because they didn't lose money . . . if you excluded dividends they were required to pay. So in reality, they lost money. It's funny, how we crave reality when it comes to TV shows, but we don't want any part of it when it comes to our financial systems or our futures.
$2 Trillion Problem - Fannie and Freddie guarantee or own more than $2 trillion in mortgages, and that number is growing, as these two "stars" are the last resort in a housing market that is stumbling along like a drunken sailor on a short pier.
With the very best estimates putting more than 20% of all mortgages underwater, you can do some simply math and double that number to 40% or more for Fannie and Freddie.
Ground Zero - I'm at ground zero in my real estate brokerage, and we work with banks and foreclosures every day. On average we are seeing banks recover about 35% of the mortgage value after foreclosing on properties and paying off the attorneys, asset managers, real estate agents, contractors and consultants. And believe me . . . I'm being generous with the 35%.
This means on $2 trillion in mortgages, there will be losses exceeding $1.3 trillion, which is more than enough to pay for Obama's health care plan, a fleet of jets for Congress, and a few hundred billion for Goldman Sachs' fees and Bankster Bonuses.
Head You Lose - Tails Goldman Sachs Wins - You don't think that $1.3 trillion will come from the tooth fairy, do you? Nope. If you're tuned into this Reality TV show, that $1.3 trillion will come from you, your kids and your grandchildren . . . and their kids and grandchildren.
Geithner Sends Smoke Signals - If you think I'm making this stuff up, you need to put down the beer and chips, and pick up the newspaper. In fact, Tim the Tax Cheat just told us Fannie and Freddie are doomed to be broken up, when he appeared at the House Financial Services Committee hearing. But he made it sound like something good was going to come from this break up. Not so with James Lockhart . . .
James Lockhart, departing director of the Federal Housing Finance Agency, kinda, sorta, winkie-winkie told us our $85 billion was gone and it was going to cost a heapin' pile more to unwind these two kids. Actually, he only told us we were going to lose some of the $85 billion, but this guy has been lying through his teeth, toes and nose since he landed in Washington.
Good Bank - Bad Bank . . . The Sequel - It's back again, like Ground Hog day. You see, rehashing Good Bank - Bad Bank is nothing more than a pirated copy of Ground Hog day played on a black and white TV with the static. Each time we hear it, it gets worse. But here we are proposing to take the good assets from Fannie and Freddie and leaving the bad assets for "another" entity. First of all, that entity is you the taxpayer. Second, you can rest assured the good assets will go to friends and family of Goldman Sachs. Didn't you hear? That's been deemed an inalienable right during this financial crisis.
Sparks but No Kaboom - That's the big issue. Everyone keeps asking me, what will trigger the next leg down in the financial markets. What will trigger a meltdown? My response is anything from a natural disaster to a war or maybe the reality we are facing with a mortgage market that is one Reality TV scene away from total blackout.
By the way, the $1.3 trillion potential hit in the Fannie and Freddie debacle is probably only a quarter of the total residential and commercial loss that seems to be growing by the day.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Sunday, August 16, 2009
Vought Aircraft Industries Expands in Stuart, FLorida
With all of the negative news hitting the press, it's nice to see something this positive. Vought Aircraft Industries is planning on adding 100 permanent jobs at their Stuart, Florida facility. This will include building a $3.2 million dollar facility at their Witham Field location. The jobs planned are 60% mechanical and 40% professional. And there is a program that will train high school and college students for some of these positions. This is truly a win-win for everyone.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Florida Real Estate Blog
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Saturday, August 15, 2009
Foreclosures Spiked Higher in July - Wake Up America!
I use that line a lot lately . . . Wake Up America! Unfortunately, not only are Americans asleep in front of their TV sets, but when you do get riled up, you have no clue how you are being manipulated.
Remember the AIG bonuses? Americans went out in the streets to protest the $165 million in bonuses, while thieves like Goldman Sachs walked out the back door with $12.9 billion of AIG money . . . our taxpayer bailout money.
Health Care Town Meetings are no different. Obama wants you to get all worked up about something that is simply not going to happen. Obama and his puppet masters don't want you to think about the real problem . . . job losses, foreclosures and bank failures. No, instead, during July and August they wanted you to focus on the nonsense of health care, so the banks could push out billions and billions in bonuses, including a $100 million bonus that will go to just one man.
Foreclosures Set Records - Here in Florida where I live, Martin County, Indian River County and Palm Beach County set new records for foreclosure filings. I didn't bother to check the remaining 60+ counties, because the real flood of foreclosures has not even hit yet. In St. Lucie County they missed beating the record by just 12 foreclosures. I can assure you that August and September will be shockers!
Great Time to Buy? - It depends. If you know what you're doing, you can find a tremendous deal, but you need to be smart, fast and prepared. Here's a piece I wrote about how to buy foreclosure deals - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Real Estate Blog
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Remember the AIG bonuses? Americans went out in the streets to protest the $165 million in bonuses, while thieves like Goldman Sachs walked out the back door with $12.9 billion of AIG money . . . our taxpayer bailout money.
Health Care Town Meetings are no different. Obama wants you to get all worked up about something that is simply not going to happen. Obama and his puppet masters don't want you to think about the real problem . . . job losses, foreclosures and bank failures. No, instead, during July and August they wanted you to focus on the nonsense of health care, so the banks could push out billions and billions in bonuses, including a $100 million bonus that will go to just one man.
Foreclosures Set Records - Here in Florida where I live, Martin County, Indian River County and Palm Beach County set new records for foreclosure filings. I didn't bother to check the remaining 60+ counties, because the real flood of foreclosures has not even hit yet. In St. Lucie County they missed beating the record by just 12 foreclosures. I can assure you that August and September will be shockers!
Great Time to Buy? - It depends. If you know what you're doing, you can find a tremendous deal, but you need to be smart, fast and prepared. Here's a piece I wrote about how to buy foreclosure deals - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Real Estate Blog
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Friday, August 14, 2009
Housing Bottoms Out but Foreclosures Spike Higher
Those were the conflicting headlines this week. The cheerleaders who have been calling the bottom for the last two years, are still hiking up their skirts and dancing around with cheers of a bottom, to be followed by Good Times.
Reality vs. ObamaRamaLama - Those looking for reality this week saw headlines of foreclosure filings soaring. You see, you can twist things both ways. So the National Association of Realtors and the boys and girls running the ObamaRamaLama are telling the world that foreclosure "sales" dropped and prices are rising when you look at last year's numbers or some numbers they seem to have the ability to pull out of dark places.
Obama Magic - Over the past six months we had Obama telling the banks not to foreclose on homes and to do everything possible to continue to cover up the problem. In return, Obama promised the banks billions of dollars that they could dole out as bonuses. And it worked . . . for now.
July Foreclosure Filings Spike - What we are starting to see, and what we will see more of, is the tsunami of foreclosures that have been stacking up in bank back rooms. But now that the billions in bonuses are being paid out, watch for the foreclosures to flood the markets over the next 3-9 months.
Prices Rising? - I'm not going to spend the next hour talking about where prices are rising and where they are falling. Sure, there are areas where prices are rising in comparison to last month, but still 20-30% below a year ago. But once the flood of foreclosures comes to market, you can bet your last penny that prices will once again head South . . . hard and fast.
Oh, by the way, we lost another 500,000 jobs last week . . . but once again the financial markets celebrated that with an up day . . . and the banks leading the way. These are the same banks sitting on billions and billions in losses from foreclosures they do not want to acknowledge. Sooner or later the stink will get so bad, that they will be shut down . . . and the taxpayers will foot the bill.
Great Time to Buy? - Yes and No. I suggest you read this piece I recently wrote about how to find a Great Buy - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Blog
.
Reality vs. ObamaRamaLama - Those looking for reality this week saw headlines of foreclosure filings soaring. You see, you can twist things both ways. So the National Association of Realtors and the boys and girls running the ObamaRamaLama are telling the world that foreclosure "sales" dropped and prices are rising when you look at last year's numbers or some numbers they seem to have the ability to pull out of dark places.
Obama Magic - Over the past six months we had Obama telling the banks not to foreclose on homes and to do everything possible to continue to cover up the problem. In return, Obama promised the banks billions of dollars that they could dole out as bonuses. And it worked . . . for now.
July Foreclosure Filings Spike - What we are starting to see, and what we will see more of, is the tsunami of foreclosures that have been stacking up in bank back rooms. But now that the billions in bonuses are being paid out, watch for the foreclosures to flood the markets over the next 3-9 months.
Prices Rising? - I'm not going to spend the next hour talking about where prices are rising and where they are falling. Sure, there are areas where prices are rising in comparison to last month, but still 20-30% below a year ago. But once the flood of foreclosures comes to market, you can bet your last penny that prices will once again head South . . . hard and fast.
Oh, by the way, we lost another 500,000 jobs last week . . . but once again the financial markets celebrated that with an up day . . . and the banks leading the way. These are the same banks sitting on billions and billions in losses from foreclosures they do not want to acknowledge. Sooner or later the stink will get so bad, that they will be shut down . . . and the taxpayers will foot the bill.
Great Time to Buy? - Yes and No. I suggest you read this piece I recently wrote about how to find a Great Buy - Click Here
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit http://www.floridahomes.pro/
Click Here to Subscribe to Mike's Blog
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Thursday, August 13, 2009
Homeowner Association Dues - Check First
In recent months we are seeing deals fall apart because the Homeowner Association (HOA) or Condo Association (COA) dues are not being paid by owners that are facing foreclosure or units that have actually been foreclosed. When this happens, lenders take notice.
In fact, when delinquencies hit certain levels banks will not finance units in the development, and this include FHA restrictions. It is becoming a big issue, and making matters worse are the banks that are foreclosing on units, and then refusing to pay HOA and COA dues.
Another problem with delinquent association dues are the special assessments levied on those owners still paying their fair share.
Buyers Beware - If you are buying a home or condo, make sure your initial offer carries an addendum for your review of what percentage of owners are delinquent. For my clients, we simply make this determination with in our "free look" inspection period that usually runs from 10-20 days.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Blog
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In fact, when delinquencies hit certain levels banks will not finance units in the development, and this include FHA restrictions. It is becoming a big issue, and making matters worse are the banks that are foreclosing on units, and then refusing to pay HOA and COA dues.
Another problem with delinquent association dues are the special assessments levied on those owners still paying their fair share.
Buyers Beware - If you are buying a home or condo, make sure your initial offer carries an addendum for your review of what percentage of owners are delinquent. For my clients, we simply make this determination with in our "free look" inspection period that usually runs from 10-20 days.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit www.FloridaHomes.PRO
Click Here to Subscribe to Mike's Blog
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Tuesday, August 11, 2009
Chinese Drywall - Early Warnings Ignored
After receiving dozens of phone calls, emails and media requests regarding Chinese Drywall, I will post this one and only post regarding Chinese Drywall.
Almost five years ago, I started a campaign against home builders building defective homes. It was a costly battle both financially and personally. My meetings and conversations with politicians were met with puppy like stares . . . simply because they could not afford to piss off home builders, their attorneys and their friends and families. At that time, we were in the middle of a housing bubble, and politicians only cared about one thing . . . campaign contributions and jobs after they left office. Ken Pruitt, formerly the Florida Senate leader, was a perfect example of a politician that couldn't have cared less.
U.S. Florida Senators Bill Nelson and Mel Martinez were no different. And the same for a dozen Congressmen I contacted.
At that time, we knew homes were defective. We had definitive proof. More importantly, there were some very disturbing health issues popping up that were not connected to the physical defects. We knew something was wrong. It was clear that there was something in the air of these homes . . . but not a single government building inspector, nor a single politicians wanted to go up against the builders.
Sadly, a lot of the drywall that was installed could have been prevented if the home builders involved had taken the complaints seriously and done some internal investigations. I leave you with a quote from one of the country's greatest hypocrites.
Here is an excerpt from a speech Elizabeth Dole made as Commissioner of the Federal Trade Commission. January 21, 1979 "for too many Americans, the dream home has turned into a nightmare. You know as well as I do that as families move into their own little Garden of Eden, more and more are finding the apple full of worms. As a result, some home buyers believe they are being bilked for thousands of dollars, and they are expressing not only anguish but outrage. Shoddy building practices can be concealed from many purchasers who cannot be expected to have the technical expertise to evaluate the structural soundness of a home or the quality of electrical, plumbing, or air conditioning systems. The patience of the American consumer is rapidly running out. Consumers are demanding more protection from the government, not LESS. The consumer movement is no longer made up of small bands of activists with no troops standing behind them; the consumer movement is now part of our culture it embraces every one of us. And it will not be denied over an issue so fundamental as decent housing"
Wake Up America!
P.S. The same ignorance our politicians and regulators exhibited during the housing bubble, is what we are experiencing today with Goldman Sachs and other Banksters. Five years from now we will wonder why our pension funds are empty. We will wonder where all of our hard earned dollars have gone, while the boys and girls from Goldman Sachs will be sipping drinks on the beach.
Almost five years ago, I started a campaign against home builders building defective homes. It was a costly battle both financially and personally. My meetings and conversations with politicians were met with puppy like stares . . . simply because they could not afford to piss off home builders, their attorneys and their friends and families. At that time, we were in the middle of a housing bubble, and politicians only cared about one thing . . . campaign contributions and jobs after they left office. Ken Pruitt, formerly the Florida Senate leader, was a perfect example of a politician that couldn't have cared less.
U.S. Florida Senators Bill Nelson and Mel Martinez were no different. And the same for a dozen Congressmen I contacted.
At that time, we knew homes were defective. We had definitive proof. More importantly, there were some very disturbing health issues popping up that were not connected to the physical defects. We knew something was wrong. It was clear that there was something in the air of these homes . . . but not a single government building inspector, nor a single politicians wanted to go up against the builders.
Sadly, a lot of the drywall that was installed could have been prevented if the home builders involved had taken the complaints seriously and done some internal investigations. I leave you with a quote from one of the country's greatest hypocrites.
Here is an excerpt from a speech Elizabeth Dole made as Commissioner of the Federal Trade Commission. January 21, 1979 "for too many Americans, the dream home has turned into a nightmare. You know as well as I do that as families move into their own little Garden of Eden, more and more are finding the apple full of worms. As a result, some home buyers believe they are being bilked for thousands of dollars, and they are expressing not only anguish but outrage. Shoddy building practices can be concealed from many purchasers who cannot be expected to have the technical expertise to evaluate the structural soundness of a home or the quality of electrical, plumbing, or air conditioning systems. The patience of the American consumer is rapidly running out. Consumers are demanding more protection from the government, not LESS. The consumer movement is no longer made up of small bands of activists with no troops standing behind them; the consumer movement is now part of our culture it embraces every one of us. And it will not be denied over an issue so fundamental as decent housing"
Wake Up America!
P.S. The same ignorance our politicians and regulators exhibited during the housing bubble, is what we are experiencing today with Goldman Sachs and other Banksters. Five years from now we will wonder why our pension funds are empty. We will wonder where all of our hard earned dollars have gone, while the boys and girls from Goldman Sachs will be sipping drinks on the beach.
Buyer Tips - How to Hire a Real Estate Agent
Working with a real estate agent can be very tricky. The traditional commission paid is offered by the Seller. At closing, the Seller will pay both the Listing Agent and the Selling Agent out of proceeds the Buyer paid the Seller. Technically and legally, both agents are working for the Seller . . . unless the Selling agent has a separate agreement with the Buyer. We offer you an intelligent choice.
In addition to traditional service, we provide you with the option of purchasing blocks of our time. This means we work for you, and only you. We owe nothing to the Seller, except for fair-dealing. With the flat fee option, I have no incentive to sell you a house simply to earn a commission. Actually, about 20% of our clients that choose this option, decide NOT to purchase a home in this market or they postpone their purchase.
For traditional real estate agents, the only way they get paid, is if they sell you a house . . . even if the house and the market are not right for you. As a flat-fee agent, I am here to tell you the truth, and nothing but the truth about the homes you look at and the real estate market. My only goal is to protect you, and if that means telling you this is not a good time to buy or this is not the area for you, that is what I will do.
And here is a perfect example. We had a couple from Europe considering this Sailfish Point. They purchased two weeks of my time, and I showed them Sailfish Point and the entire area from Palm Beach to Vero. After two weeks, I advised them to rent for a few months, because I was not quite sure this was where they would feel comfortable in a vacation home. That winter they rented. After three months, they decided the area was not right for them! If they had been working with a traditional agent, they would have purchased the $4 million home they "thought" they were in love with. Now they would be trying to sell that $4 million home at a significant loss and the expenses that go along with selling a home.
One more example. Two years ago I had a couple from California looking to retire here. Once again, I advised them to rent. There were two reasons for this advice. First, I knew the markets were coming down. Second, I was not sure they knew exactly what they wanted. This year they purchased a home in a different community for about 25% less than homes were selling for two years ago. Not only did they save half a million dollars, but they settled in a community that made them happy.
So before you call a traditional agent or before you call the Listing Agent that is representing the Seller, call me and discuss your plans. Let me help you avoid the costly mistakes so many Buyers make.
Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit www.FloridaHomes.PRO .
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Monday, August 10, 2009
Up to $35,000 in Repair Money with FHA 203(K) Mortgage
We see deals that fall through because a property has fallen into disrepair, and neither the buyers or the sellers can afford to make the repairs. But there is an easy solution. Here is an example.
Buyer - You are approved for $150,000 and you can buy the home for $125,000, but the home needs $15,000 worth of repairs to the roof. Since you have roof damage, you will not qualify for most mortgages.
Taking this one step further, neither you or the seller has the additional $15,000 to fix the roof prior to sale OR this is a foreclosed property and the bank that now owns the property is not making the repair.
Solution - You are approved for a $150,000 mortgage and the home is only $125,000, so there is $25,000 of wiggle room if you use a FHA 203(k) mortgage. This allows you to build the $15,000 worth of repairs into the overall mortgage, so there is no additional upfront money you need to come up with. The $15,000 roof is built into the price of the home, as if the roof were fixed prior to the sale and simply built into the house.
Here is what you will find on the HUD Government website . . .
FHA's Streamline 203(k) Mortgage - The “Streamline (K)” Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. For more information - Click Here
Visit Mike's website for information on Florida homes and condos - www.FloridaHomes.PRO
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Buyer - You are approved for $150,000 and you can buy the home for $125,000, but the home needs $15,000 worth of repairs to the roof. Since you have roof damage, you will not qualify for most mortgages.
Taking this one step further, neither you or the seller has the additional $15,000 to fix the roof prior to sale OR this is a foreclosed property and the bank that now owns the property is not making the repair.
Solution - You are approved for a $150,000 mortgage and the home is only $125,000, so there is $25,000 of wiggle room if you use a FHA 203(k) mortgage. This allows you to build the $15,000 worth of repairs into the overall mortgage, so there is no additional upfront money you need to come up with. The $15,000 roof is built into the price of the home, as if the roof were fixed prior to the sale and simply built into the house.
Here is what you will find on the HUD Government website . . .
FHA's Streamline 203(k) Mortgage - The “Streamline (K)” Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. For more information - Click Here
Visit Mike's website for information on Florida homes and condos - www.FloridaHomes.PRO
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Saturday, August 8, 2009
90% of Florida Mortgages Underwater by 2011
Obama has done a great job at convincing banks to keep the tidal wave of foreclosures off the market, but eventually market forces will prevail and these homes will flood the market. The truly scary part of this report is the break down in mortgages that will be underwater, with 89% of option adjustable rate mortgages underwater by 2011 on a national basis.
More startling is the statement that 90% of all types of mortgages in Las Vegas, and parts of Florida and California will be underwater.
Buyer Beware - I have said it is a Great Time to Buy a Home, but you must be very careful. Before you buy, I highly recommend you read my post about why it can be a great time to buy or a great time to get trapped - Click Here
More startling is the statement that 90% of all types of mortgages in Las Vegas, and parts of Florida and California will be underwater.
Buyer Beware - I have said it is a Great Time to Buy a Home, but you must be very careful. Before you buy, I highly recommend you read my post about why it can be a great time to buy or a great time to get trapped - Click Here
Restaurants in Stuart, Florida | Jensen Beach, Florida | Martin County
Instead of just giving you post after post about the business and serious end of real estate in Florida, I will spice it up with some fun things at least once a week. So here is a piece about restaurants in my backyard. If you have any restaurants you want to add . . . or if you have any ideas of things you want me to write about, please email me Mike@FloridaHomes.PRO
There are so many fine restaurants in Stuart and the surrounding area. Here are a few of my favorites . . . and a few you might want to avoid.
Steak - Peter's Steak House - Unfortunately, another STOP - Don't Go - turn around and go somewhere else. They want you to believe that this is just as good as THE Peter Luger's in New York and they buy the same meat, etc. but my experience has been awful. You'll get a better steak at Outback. And if that was not enough, the service was horrible.
There are so many fine restaurants in Stuart and the surrounding area. Here are a few of my favorites . . . and a few you might want to avoid.
Seafood - The New England Fish Market - I grew up on the Jersey Shore and worked on fishing boats till I went off to college. When it comes to seafood, I am the pickiest of the picky. And with my family being in the restaurant business for 30+ years, I can tell you this is the best seafood restaurant I have ever found. Just minutes from Stuart in Jensen Beach - 1419 NE Jensen Beach Blvd., Jensen Beach, FL 34957 - (772) 334-7324
Seafood, Local and Waterfront - Shrimpers - Dine on the water in scenic Manatee Pocket. Great food and great views while you dine on the water. If you like cracked conch, this is the best you'll find on the Treasure Coast. But you will also find a variety of Florida and local favorites. Yum, Yum, Yum. - 4903 SE Dixie Highway, Stuart - (772) 220-3287
Pizza and Italian - Luna's in downtown Stuart - 80 SW Osceola Street - (772) 288-0550
Local Seafood - Conchy Joe's - STOP - Don't Go - turn around and go somewhere else. Even though Conchy Joe's is located on the Indian River and has great atmosphere, it has horrible service and the food ranges from questionably edible to basically fair. On rare occasion they hit on all cylinders and deliver a good meal and good service.
Nature's Way Cafe - For a healthy and hearty lunch go to Nature's Way for great food, relaxing atmosphere and great service in downtown Stuart - 25 SW Osceola Street - (772) 220-7306
Duffy's Sports Grill - Best burgers and all around great food. Also in downtown Stuart - 1 SW Osceola Street - (772) 221-4899
Fine Dining - 11 Maple Street - One of my favorite fine dining restaurants in the world is right here on the Treasure Coast. The quality of the food rivals any five start restaurant in the world. Best of all, the atmosphere is casual and relaxed, just the way we like it on the Treasure Coast - 11 Maple Street, Jensen Beach - (772) 334-7714
Breakfast and Lunch - Jan's Place - The BEST omelets on the Treasure Coast and a great variety of lunch sandwiches. - 1897 NE Jensen Beach Blvd. (772) 334-9598
Ice Cream, Candy Apples, Fudge and Chocolates - Kilwin's is the only place to go, and it is in downtown Stuart at 31 SW Osceola Street just a few doors down from Nature's Way - (772) 223-6446 - My favorites include their scrumptious toasted coconut ice cream and Stuart mud. For a bit of nostalgia, bite into one of their juicy, crunchy and very tasty gourmet candy apples.
Steak - Peter's Steak House - Unfortunately, another STOP - Don't Go - turn around and go somewhere else. They want you to believe that this is just as good as THE Peter Luger's in New York and they buy the same meat, etc. but my experience has been awful. You'll get a better steak at Outback. And if that was not enough, the service was horrible.
Thai - Bangkok Bay - Consistently good Thai food and service. Thai is one of my favorites, so I can't say this one is world class, but it is far better than the local options. There curry sauces are outstanding, and I have never had a bad meal here. I take clients here on a regular basis, because I can depend on consistently good food, service and value - 1833 SE Federal Highway (US 1) -
Deli - TooJay's - It's definitely not New York quality, but it's the best you will find on the Treasure Coast. For breakfast, try the Lox, Eggs and Onions Omelet with toasted Challah. 2504 SE Federal Highway, Stuart - (772) 287-6514
I will add to the list over the next few weeks. If you are visiting the area and want a few more of my favorites or want to ask about a restaurant, feel free to call or email me - Mike@FloridaHomes.PRO or 772-260-5448
Things to To Do in Stuart, Jensen Beach and Martin County - visit www.FloridaHomes.PRO/Stuart
Looking for a home in the Stuart area? - I'd welcome the opportunity to assist you with a purchase of a home in Stuart or one of the other marvelous communities in our area. For additional information please call me on my private cell phone at 888-227-5217 or visit http://www.floridahomes.pro/
Friday, August 7, 2009
Pre-Qualification Letters vs. Pre-Approval Letters
BIG Difference. In fact, if you're looking to buy a foreclosure property at a great price, you better have cash or a rock solid Pre-Approval letter. Some banks and lenders are dumping foreclosure properties at great prices. They do this to meet deadlines or when they simply must reduce inventory. But either way, they want to make sure they are accepting a solid offer that will close. In fact, you want a REAL Pre-Approval letter for any house you are buying, and if you are a seller, you ONLY want REA Pre-Approval letters.
The last thing these sellers want to do, is to accept an offer with a 30 day financing contingency, only to find out on day 29, the buyer did not qualify. This means the seller must put the house back on the market . . . a waste of time and money. So the seller would much prefer to accept a lower offer if it is cash or a rock solid Pre-Approval.
What is a rock solid Pre-Approval? - I will give you an actual live example. We are selling a foreclosure property for a lender, and we have had more than a dozen offers. But only one of these offers was for cash, and the others were all pre-qualification letters masquerading as Pre-Approval letters. The cash offer was too low, so it was rejected. And all of the other offers were rejected, even though several of them were considerably HIGHER than the listed price.
Three of the offers that are in the running all have similar letters from the same mortgage broker at National City Bank. These letters state that the buyer is "pre-approved" BUT the bank still needs to verify documents, income, etc. Folks . . . that's not worth the paper it's written on, because the lender has done NOTHING to qualify or approve any of these buyers. What they have done is to waste my time, my clients' time, the buyer's time and the time of the buyers' agents.
Why? I believe it is because local, regional and national banks really don't want to make mortgages, so they make it difficult, if not impossible to get things done. We will no longer accept any pre-qualification or pre-approval letters from National City until they decide to get real.
What Can You Do? - Don't use a bank. Go to a mortgage broker and let them pre-qualify you AND then shop your needs around, and then verify your income, documents, etc. Once this is all done, they can give you a REAL Pre-Approval letter that locks you in . . . and moves your offer to the top of the pile with the seller.
How Do You Get Out? - The only things a REAL Pre-Approval letter should require is (1) contingent upon the appraisal, and (2) contingent upon the inspection. This means, you are ready to go, but if the house does not meet the appraisal and inspection standards . . . you get out of the contract!
It's that simple. So if you are dealing with a real estate agent that does not understand this, my advice to you is to find someone that does. And if you are dealing with a bank that does not understand this, find yourself a reputable mortgage broker to qualify you and shop your needs around to many lenders.
Questions? - If you still have questions, email or call me. Mike@FloridaHomes.PRO or (772) 260-5448
Website Answers - Visit our website for tons of information and FREE Super MLS Access - www.FloridaHomes.PRO
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The last thing these sellers want to do, is to accept an offer with a 30 day financing contingency, only to find out on day 29, the buyer did not qualify. This means the seller must put the house back on the market . . . a waste of time and money. So the seller would much prefer to accept a lower offer if it is cash or a rock solid Pre-Approval.
What is a rock solid Pre-Approval? - I will give you an actual live example. We are selling a foreclosure property for a lender, and we have had more than a dozen offers. But only one of these offers was for cash, and the others were all pre-qualification letters masquerading as Pre-Approval letters. The cash offer was too low, so it was rejected. And all of the other offers were rejected, even though several of them were considerably HIGHER than the listed price.
Three of the offers that are in the running all have similar letters from the same mortgage broker at National City Bank. These letters state that the buyer is "pre-approved" BUT the bank still needs to verify documents, income, etc. Folks . . . that's not worth the paper it's written on, because the lender has done NOTHING to qualify or approve any of these buyers. What they have done is to waste my time, my clients' time, the buyer's time and the time of the buyers' agents.
Why? I believe it is because local, regional and national banks really don't want to make mortgages, so they make it difficult, if not impossible to get things done. We will no longer accept any pre-qualification or pre-approval letters from National City until they decide to get real.
What Can You Do? - Don't use a bank. Go to a mortgage broker and let them pre-qualify you AND then shop your needs around, and then verify your income, documents, etc. Once this is all done, they can give you a REAL Pre-Approval letter that locks you in . . . and moves your offer to the top of the pile with the seller.
How Do You Get Out? - The only things a REAL Pre-Approval letter should require is (1) contingent upon the appraisal, and (2) contingent upon the inspection. This means, you are ready to go, but if the house does not meet the appraisal and inspection standards . . . you get out of the contract!
It's that simple. So if you are dealing with a real estate agent that does not understand this, my advice to you is to find someone that does. And if you are dealing with a bank that does not understand this, find yourself a reputable mortgage broker to qualify you and shop your needs around to many lenders.
Questions? - If you still have questions, email or call me. Mike@FloridaHomes.PRO or (772) 260-5448
Website Answers - Visit our website for tons of information and FREE Super MLS Access - www.FloridaHomes.PRO
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Thursday, August 6, 2009
Beware of Short Sale Experts
If you have considered hiring an attorney or real estate broker that proclaims to be a short sale expert that is going to solve all of your problems . . . run the other way. Yes, there are short sale experts. But as I write this, in August 2009, lenders are NOT reasonably working on short sales.
1 - Fraud - More and more attorneys and real estate agents are taking money from desperate homeowners, promising them the moon. Let me make it real clear . . . they can NOT promise you anything, because they are NOT the lender you owe money to. My advice to you is, NOT to give any of them any upfront money. If they want to help you, let them get paid on the back end from the lender . . . when they do what they are promising. For the most part, they can't do anything for you.
2 - Foreclosure - Just about every lender we have dealt with this year (2009) has stopped considering short sales. Now I should explain that. Some of them tell you they are still considering short sales, but once you get three months into paperwork, you realize the only thing they are doing is wasting your time and gathering information about you. The fact is . . . just about all lenders are now opting for foreclosure. We recently had a lender that had agreed to a short sale, and while we were in the middle of it, they foreclosed on the homeowner. They never said a word to us until after they had filed for foreclosure. And then, they refused to stop the process and consider the short sale.
3 - Fraud - This one is important to repeat. Do NOT pay anyone advance money to assist you with a short sale. If they can truly help you, they will earn their commission from the bank when the deal is closed.
4 - We Do NOT List or Show Short Sales - To show you how tough it is to get a short sale done, we no longer list short sales unless the Seller is prepared to pay a listing fee . . . with no guarantees the home will be sold. We charge $500 and we list your home in both local MLS services, Realtor.com and dozens of other online listing services, but we make NO representations other than to do our best to help you sell your home. We tell you the chances are slim to none at this time, but for some people they have no other option.
We do NOT show short sale listings because we know they take months to complete . . . if they ever close. This year, 2009, we have seen no short sales close with our buyers or sellers. Banks are under the Obama spell, and with our government pumping billions into the bank executives pockets, the entire system has collapsed.
For more information about Florida Real estate and Buying a Home in Florida visit our website: www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
1 - Fraud - More and more attorneys and real estate agents are taking money from desperate homeowners, promising them the moon. Let me make it real clear . . . they can NOT promise you anything, because they are NOT the lender you owe money to. My advice to you is, NOT to give any of them any upfront money. If they want to help you, let them get paid on the back end from the lender . . . when they do what they are promising. For the most part, they can't do anything for you.
2 - Foreclosure - Just about every lender we have dealt with this year (2009) has stopped considering short sales. Now I should explain that. Some of them tell you they are still considering short sales, but once you get three months into paperwork, you realize the only thing they are doing is wasting your time and gathering information about you. The fact is . . . just about all lenders are now opting for foreclosure. We recently had a lender that had agreed to a short sale, and while we were in the middle of it, they foreclosed on the homeowner. They never said a word to us until after they had filed for foreclosure. And then, they refused to stop the process and consider the short sale.
3 - Fraud - This one is important to repeat. Do NOT pay anyone advance money to assist you with a short sale. If they can truly help you, they will earn their commission from the bank when the deal is closed.
4 - We Do NOT List or Show Short Sales - To show you how tough it is to get a short sale done, we no longer list short sales unless the Seller is prepared to pay a listing fee . . . with no guarantees the home will be sold. We charge $500 and we list your home in both local MLS services, Realtor.com and dozens of other online listing services, but we make NO representations other than to do our best to help you sell your home. We tell you the chances are slim to none at this time, but for some people they have no other option.
We do NOT show short sale listings because we know they take months to complete . . . if they ever close. This year, 2009, we have seen no short sales close with our buyers or sellers. Banks are under the Obama spell, and with our government pumping billions into the bank executives pockets, the entire system has collapsed.
For more information about Florida Real estate and Buying a Home in Florida visit our website: www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
Wednesday, August 5, 2009
Unpaid Property Taxes and Falling Property Values - Two More Dropping Shoes
Unpaid Property Taxes - Take a look around the country, and you'll see a rise in the number of people that cannot pay their property taxes. This means less money in the city and county coffers, and that means cut backs in services like police, fire, hospitals, education and the other basics we depend upon. In most cases, the taxes will be collected, but that could mean a wait till the property is foreclosed and sold. And that involves legal expenses that sometimes exceed the amount of the taxes. Yikes.
Falling Property Values = Lower Taxes Collected - Yes and no. Falling property values means the base of property values has fallen, and if the tax rate is kept at the same level, that means lower taxes collected. But what we are seeing throughout the county is an increase in the millage rate, because local governments are finding it harder and harder to cut back . . . after the housing bubble years of plenty. You see, local governments were raking in more than their budgets for a number of years, but instead of saving it for a rainy day, they expanded services and gave out pay increases like candy. The process of rolling that back will not be easy, and in many cases will not be legal. The only alternative is to increase the millage rate as the tax base falls. Double Yikes.
For more information about Florida Real estate and Buying a Home in Florida visit our website: www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
Falling Property Values = Lower Taxes Collected - Yes and no. Falling property values means the base of property values has fallen, and if the tax rate is kept at the same level, that means lower taxes collected. But what we are seeing throughout the county is an increase in the millage rate, because local governments are finding it harder and harder to cut back . . . after the housing bubble years of plenty. You see, local governments were raking in more than their budgets for a number of years, but instead of saving it for a rainy day, they expanded services and gave out pay increases like candy. The process of rolling that back will not be easy, and in many cases will not be legal. The only alternative is to increase the millage rate as the tax base falls. Double Yikes.
For more information about Florida Real estate and Buying a Home in Florida visit our website: www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
Tuesday, August 4, 2009
Short Sales - Tips and Warnings
Short Sales have become almost impossible to complete. Just this past week, we have decided NOT to take short sale listings and NOT to show short sale listings. That's a huge decision, and I believe it is becoming the norm for the more experienced real estate agents. Here's why . . .
Short Sale Listings - We are required to do about $500 worth of pre-listing work from meetings, site visits, photos and data entry into the MLS system. Then we are required to answer showing calls, submit offers, do volumes of unnecessary paperwork . . . for nothing. Over the past three months, 100% of the short sales we have been involved with, have gone to foreclosure.
When that happens, not only do we lose the listing and all of the work we did was for nothing, but the listing will be given to another agent in the area. The reason for that, is the lender turns the property over to an asset manager, and the asset manager gives the listing to one of the REO agents they are associated with . . . even if that is an out-of-area agent that is going to do a horrible job.
We lose an average of $3,500 on each short sale listing now. That represents all of the time we put into these listings, as well as driving expenses, property visits, etc.
Short Sale Showings - Over the past few months we have not seen a single short sale that we have been involved in, move to closing. Lenders are now opting for foreclosure. We have wasted hundreds of hours of time showing these properties to buyers, and we have submitted many offers . . . only for the offers and process drag on, and on, and on. Eventually, the property is foreclosed . . . and all the work and time was waste.
So we no longer list or show Short Sales. My suggestion to you is this. If you are extremely patient and you can find an agent that will actually show you short sales, go for it . . . providing you are prepared to strike over and over and over.
For additional information visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO - You may also call me at 772-260-5448
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Short Sale Listings - We are required to do about $500 worth of pre-listing work from meetings, site visits, photos and data entry into the MLS system. Then we are required to answer showing calls, submit offers, do volumes of unnecessary paperwork . . . for nothing. Over the past three months, 100% of the short sales we have been involved with, have gone to foreclosure.
When that happens, not only do we lose the listing and all of the work we did was for nothing, but the listing will be given to another agent in the area. The reason for that, is the lender turns the property over to an asset manager, and the asset manager gives the listing to one of the REO agents they are associated with . . . even if that is an out-of-area agent that is going to do a horrible job.
We lose an average of $3,500 on each short sale listing now. That represents all of the time we put into these listings, as well as driving expenses, property visits, etc.
Short Sale Showings - Over the past few months we have not seen a single short sale that we have been involved in, move to closing. Lenders are now opting for foreclosure. We have wasted hundreds of hours of time showing these properties to buyers, and we have submitted many offers . . . only for the offers and process drag on, and on, and on. Eventually, the property is foreclosed . . . and all the work and time was waste.
So we no longer list or show Short Sales. My suggestion to you is this. If you are extremely patient and you can find an agent that will actually show you short sales, go for it . . . providing you are prepared to strike over and over and over.
For additional information visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO - You may also call me at 772-260-5448
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Monday, August 3, 2009
Restaurants for Rent - Cheap, Cheap, Cheap
Not only cheap, but you'll save $50,000 - $500,000 on renovations. So many restaurants have shut their doors in Florida that landlords are willing to rent restaurants that are broom cleaned and ready to open . . . just add food, drinks and waiters.
In fact, some landlords are so desperate that they will provide operators with free rent and leases based solely on percentage of sales. In many strip centers and malls, restaurants and the food court are vital to the life of the property.
So if you are considering opening a restaurant in Florida, now might be the time to start looking. But make sure you have a rock solid business plan, experience and the cash in the bank to get through the tough times. For many, we recommend a year's worth of expenses, and you'd better be prepared to lose it all. Restaurants are the at the top of business failures, because many people think they cook for friends and family, so they can make money cooking for others.
My family has been in the restaurant business for more than 30 years. I can tell you from experience, it is far more difficult than anyone imagines. Just like some people consider a boat, nothing more than a hole in the water to throw money into . . . for most people, a restaurant is just a place where your friends and family come to eat for free, and your staff rips you off, and if you are not careful, the health department and the tax man will be shutting you down.
So be careful, but if you know what you're doing or you have done this before, now might be the time to consider looking at some of the deals you can strike up with landlords.
For more information on Florida restaurant opportunities, feel free to email me at Mike@Morgan7.com
In fact, some landlords are so desperate that they will provide operators with free rent and leases based solely on percentage of sales. In many strip centers and malls, restaurants and the food court are vital to the life of the property.
So if you are considering opening a restaurant in Florida, now might be the time to start looking. But make sure you have a rock solid business plan, experience and the cash in the bank to get through the tough times. For many, we recommend a year's worth of expenses, and you'd better be prepared to lose it all. Restaurants are the at the top of business failures, because many people think they cook for friends and family, so they can make money cooking for others.
My family has been in the restaurant business for more than 30 years. I can tell you from experience, it is far more difficult than anyone imagines. Just like some people consider a boat, nothing more than a hole in the water to throw money into . . . for most people, a restaurant is just a place where your friends and family come to eat for free, and your staff rips you off, and if you are not careful, the health department and the tax man will be shutting you down.
So be careful, but if you know what you're doing or you have done this before, now might be the time to consider looking at some of the deals you can strike up with landlords.
For more information on Florida restaurant opportunities, feel free to email me at Mike@Morgan7.com
Help for Foreclosed Homeowners? - Not
Yet another bill is being mangled through Congress to help foreclosed homeowners rent their homes from the lender. I have three words for this one having any meaningful effect . . .
Not a chance.
Four years ago I warned that the coming housing crisis would be made much worse by lenders that have no idea how to manage real estate. We are already seeing that in the way these lenders are trying to deal with foreclosures. They not only can't manage them, but they make things worse when they try to sell these homes.
Rentals? Do you really think there is a snowball' chance in hell that lenders can manage rentals? This includes collecting rents, inspecting properties, property maintenance, evictions, etc. Rents in most markets do not cover mortgage payments, so why would a lender want to take a loss on the rental . . . and have to pay taxes, insurance, maintenance and a property manager?
This is not only a plan doomed for failure, but it is another example of a buffoonish ObamaRamaLama that will further fuel the financial crisis by forcing banks to lose more money, instead of cutting their losses and facing the consequences
For additional information on Florida Real Estate visit our website at http://www.floridahomes.pro/ If you are a buyer or investor, please feel free to email me at Mike@FloridaHomes.PRO or call me at 772-260-5448
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Not a chance.
Four years ago I warned that the coming housing crisis would be made much worse by lenders that have no idea how to manage real estate. We are already seeing that in the way these lenders are trying to deal with foreclosures. They not only can't manage them, but they make things worse when they try to sell these homes.
Rentals? Do you really think there is a snowball' chance in hell that lenders can manage rentals? This includes collecting rents, inspecting properties, property maintenance, evictions, etc. Rents in most markets do not cover mortgage payments, so why would a lender want to take a loss on the rental . . . and have to pay taxes, insurance, maintenance and a property manager?
This is not only a plan doomed for failure, but it is another example of a buffoonish ObamaRamaLama that will further fuel the financial crisis by forcing banks to lose more money, instead of cutting their losses and facing the consequences
For additional information on Florida Real Estate visit our website at http://www.floridahomes.pro/ If you are a buyer or investor, please feel free to email me at Mike@FloridaHomes.PRO or call me at 772-260-5448
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Sunday, August 2, 2009
Is Port St. Lucie a Real Estate Hotbed?
In law school, the most valuable thing I learned . . . is the answer to most questions is . . . IT DEPENDS. And that truly applies here. Yet another real estate website SmartZip.com is out there touting real estate advice on a national level, even though they have no clue what is going on in the local areas they are writing about. Port St. Lucie is a perfect example.
SmartZip.com has listed Port St. Lucie as a Top 10 for investors. Yikes. What do they know about what is really going on or what areas of Port St. Lucie are good, bad or ugly. They know nothing, so beware.
There are deals to be made in Port St. Lucie real estate, but it still not time for investors to step in unless they are prepared to another 1-3 years of losses.
Investors can buy foreclosure properties for 10-25% less than buyers that require a mortgage, so if you do your homework, you have a huge advantage as a cash investor. But the next step is very tricky. You now have two options. One, you flip. Or, two, you find a renter. Both are scary. Flipping is out of the question because of the costs of marketing and flipping. Rental is just as scary.
There are so many homes on the market in Port St. Lucie that rental prices are less than half of what they were just two years ago. But the really ugly part is the quality of the renters. If you buy a foreclosure property in an area that is still declining in price and quality . . . you are in trouble. You need to purchase a property that is in a stable area, and one where the rental percentage is less than 25%, meaning one in four neighbors are renters.
All of this requires hiring an expert. I believe we are the best experts on Florida's East Coast because we have been working with banks, financial institutions AND residential clients. We have a unique perspective on the markets.
For additional information visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO - You may also call me at 772-260-5448
SmartZip.com has listed Port St. Lucie as a Top 10 for investors. Yikes. What do they know about what is really going on or what areas of Port St. Lucie are good, bad or ugly. They know nothing, so beware.
There are deals to be made in Port St. Lucie real estate, but it still not time for investors to step in unless they are prepared to another 1-3 years of losses.
Investors can buy foreclosure properties for 10-25% less than buyers that require a mortgage, so if you do your homework, you have a huge advantage as a cash investor. But the next step is very tricky. You now have two options. One, you flip. Or, two, you find a renter. Both are scary. Flipping is out of the question because of the costs of marketing and flipping. Rental is just as scary.
There are so many homes on the market in Port St. Lucie that rental prices are less than half of what they were just two years ago. But the really ugly part is the quality of the renters. If you buy a foreclosure property in an area that is still declining in price and quality . . . you are in trouble. You need to purchase a property that is in a stable area, and one where the rental percentage is less than 25%, meaning one in four neighbors are renters.
All of this requires hiring an expert. I believe we are the best experts on Florida's East Coast because we have been working with banks, financial institutions AND residential clients. We have a unique perspective on the markets.
For additional information visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO - You may also call me at 772-260-5448
Treasure Coast Foreclosures Soar in Martin County
New foreclosure filings in Martin County, Florida jumped to 227 in June from 139 in May for a 60%+ increase and more than double the January number.
If you believe the hype our President is pumping out in his daily ObamaRamaLamas, the Recession is over and the Housing Crisis is over. If you want to hear the truth, here is what I say . . . Not A Chance.
We are still in for a horrific drop in world economies, increased unemployment, bank failures and a flood of foreclosures.If you are interested in additional information about Florida Real Estate and foreclosures, please visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
If you believe the hype our President is pumping out in his daily ObamaRamaLamas, the Recession is over and the Housing Crisis is over. If you want to hear the truth, here is what I say . . . Not A Chance.
We are still in for a horrific drop in world economies, increased unemployment, bank failures and a flood of foreclosures.If you are interested in additional information about Florida Real Estate and foreclosures, please visit our website www.FloridaHomes.PRO or email me Mike@FloridaHomes.PRO
Saturday, August 1, 2009
Tim Geithner is Totally Clueless - and a Lying Tax Cheat
Hank Paulson was devious, corrupt and an outright criminal that far exceeded anything Madoff did. But he's a Goldman Sachs untouchable.
Tim Geithner is also devious, corrupt and an outright criminal, but he is also dumb as a box of rocks. Then again, maybe he is sly as a fox and just continuing the masterful fraud that Hank Paulson started.
Below is a clip every should watch. Here is Tim the Tax Cheat telling us AGAIN that the recession is over AND the housing crisis is over . . . but he can't sell his old house!
Let me assure you, the housing crisis is NOT over. In fact, it is going to get much worse as unemployment rises and the banks are eventually forced to release the foreclosed homes on their books.
For more info on housing and if you are looking for a home in Florida, please visit our website: www.FloridaHomes.PRO
Tim Geithner is also devious, corrupt and an outright criminal, but he is also dumb as a box of rocks. Then again, maybe he is sly as a fox and just continuing the masterful fraud that Hank Paulson started.
Below is a clip every should watch. Here is Tim the Tax Cheat telling us AGAIN that the recession is over AND the housing crisis is over . . . but he can't sell his old house!
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Home Crisis Investigation | ||||
| ||||
Let me assure you, the housing crisis is NOT over. In fact, it is going to get much worse as unemployment rises and the banks are eventually forced to release the foreclosed homes on their books.
For more info on housing and if you are looking for a home in Florida, please visit our website: www.FloridaHomes.PRO
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