The Louisville Homebuyer

If You're Into Ghosts or Vacant Buildings

Jeremy Butts - Investor (Real Estate Entrepreneur) — Thu, 17 Dec 2009 22:22:57 -0800

Here's a few pics from a recent trip to Waverly Hills Sanatorium in Louisville, KY. A renowned ghost site...

I used a long exposure and no tripod. That's why they are blurry, but kinda ghostly... ;)

The family that bought the building now sells guided night tours. This was a lot of fun because I love exploring vacant buildings - especially ones with a view. We were hooked with the 1.5 hour tour and now we want to have the eight hour overnight experience!

"The massive collegiate gothic style sanatorium still stands on Waverly Hill today. This sanatorium could accommodate at least 400 patients. It was considered to be one of the most modern and well equipped facilities when it opened. Construction of this sanatorium began in March of 1924. It opened on October 17, 1926 to administer patients. Waverly functioned as a tuberculosis hospital until 1961."... read more at TheRealWaverlyHills.com

Extreme Home Makeover

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 08 Dec 2009 14:31:31 -0800

"EXTREME MAKEOVER: HOME EDITION" is in my hometown this week! Yesterday they announced which family was picked for the show: WATCH VIDEO

I thought I'd check out the site firsthand. I'm guessing that if you want to be picked for a home makeover then (besides being a deserving family) it really helps to live one block from a city park!SEE THE MAP

I never really considered what a massive production goes into the show. There are three streets completely blocked off ('safety' purposes).

(Illustration) Wind Farms and Home Values

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 04 Dec 2009 16:20:21 -0800

THE QUOTE:

"That's not to say there are not individual homes...

"...that have been impacted by the presence of wind projects," Ryan Wiser said.

MY ILLUSTRATION:

MY COMMENTARY:

I suppose that wind farms don't technically MAKE wind (so this is NOT meant to be a negative commentary). But if they did... then this might be worth a chuckle. I also wonder: why did the imaginary builder decide to build one wood-frame house between two identical brick homes?

THE ARTICLE:

Here's a link to the MSNBC.com article that inspired this illustration: Study shows wind farms don't hurt home prices

Any Suggestions to "Follow" on TWITTER?

Jeremy Butts - Investor (Real Estate Entrepreneur) — Thu, 03 Dec 2009 17:49:43 -0800

REAL ESTATE NEWS IN ONE PLACE:

Here's my first TWITTER account - started a couple of days ago. This account will be for (real estate) news links only.

I don't know how I feel about Twitter yet. I never even thought about 'friending' strangers on Facebook, but I didn't hesitate on twitter - strange. At first, I was excited to find Ivanka Trump's Twitter (my celebrity crush). But then I realized that I'm not really interested in "sugar cookie exfoliation scrubs." I'm curious to see what Ashton Kutcher uses his Twitter for. He is apparently trying to become a 'media/marketing mogul'. I'm curious to follow the CEO of Zappos. Who else is following him - business types or shoe nuts?

It definitely is a new level of voyeurism. I think I'll stick to posting news TWEETS for now.

Can you suggest any good sources to follow?

Muddy Waters In the Appraisal World

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 03 Mar 2009 13:50:34 -0800

Start by reading the selection below (in quotes) from the following article: HVCC appraisal rules effective May 1

"Lenders may use "in house" staff appraisers to conduct appraisals. However, the loan production staff cannot select, retain, recommend or influence the selection of an appraiser for an assignment or appraisal roster. Staff also cannot have any substantive conversation with an appraiser or appraisal company regarding valuation."

Now help me to understand why a lender could use In-House appraisers, but can't be responsible for selecting or conversing with a third party appraiser!

Photos: Before/After condo hallway

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 25 Feb 2009 13:31:18 -0800

Here's a BEFORE AND AFTER photo of the Tower Oaks townhouse. Notice the boards on the wall (the two squares). The boards used to cover holes made from dog's teeth. The trim was extremely chewed up, as well. I wish I didn't accidently delete the photos that showed a collection of dog hair matted to the wall behind the trim. Fortunately, there was tile throughout - so we literally hosed the place with bleach.

Dump A Body, Then Sell A Loan

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 25 Jul 2008 14:20:13 -0700

I was encouraged today when I read about provisions being added to the bill passed this Wednesday by the U.S. House that will require states to deny a license (to sell home loans) for applicants who have committed a felony within the last seven years. This is especially reassuring after a Miami Herald investigation shed startling insight into Florida's lax application screening:(The quotes below are from The Miami Herald, Matthew Haggman and Jack Dolan, as seen on The Florida Association of Realtors news website)"The Miami Herald investigation also found that 5,306 people with criminal histories became loan originators between 2000 and 2007...

"...after allowing thousands of criminals to sell home loans in Florida...

"... including the agency's licensing of Anthony Hollis, of Orlando. Despite convictions for car theft and passing bad checks, Hollis was granted a license to own a brokerage in 2003...

"...the case of Donald Smith, who was sentenced to 17 years in prison for strangling his wife and dumping her body in Tampa Bay. Saxon said staff did not "timely review" information submitted by Smith and had to issue the license because an administrative deadline expired."

"In the case of Richard Crowder, who went on to commit $37 million in mortgage fraud, Saxon pointed out that Crowder's grand theft and burglary charges dated back to 1984..."Among the ex-convicts given access to the mortgage industry was Scott Almeida... Florida regulators asked for a character reference. He gave them a note from his mom... They said he needed a reputable supervisor for his practice: He chose a guy he met in the prisoner visitor room... Almeida spent the next three years arranging nearly $3 million in fraudulent loans for which he was put back behind bars."

Regulation I Will Support: Transparency and Disclosure

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 23 Jul 2008 12:33:55 -0700

Some of the government's new regulations seem bogus to me; just a band-aides to make themselves look good. For example, regulation against prepayment penalties. In the short term that might help some people sell a house in foreclosure. In the long term it forces lenders to use higher interest rates, making it harder for people to buy. HOWEVER - I am definately in favor of adding regulations that encourages trancparency within any transaction that allows borrowers to understand what they are paying for. I remember how shocked I was years ago, when I learned that mortgage brokers were being rewarded by offering me a higher interest rate. I thought they were shopping for ME - trying to get me the lowest rate! I am encouraged to see that this issue has, at least, been recognized by legislators. This should be disclosed to people. Borrowers need to know who is on their side, what choices they have, and where the money is flowing!!! Here is an accompanying article on CNNMoney.com titled, New Fed rules miss one key lending abuse (http://money.cnn.com/2008/07/21/real_estate/mo_ban_on_lending_abuse/index.htm?postversion=2008072309)

Using Zillow.com To Check Your Home's Value

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 23 Jul 2008 11:53:56 -0700

Before Zillow.com, I paid nearly $100.00 for access to The First American Corporation's data base of recently sold properties so that I could get an idea of what a property's value was. Of course, I am not a Realtor, so this information was not as readily available to me.

Then came Zillow. This site is awesome for people who are not real estate agents and want to check for recently sold homes in their neighborhood. Some counties have organized their own database, but not here in Gainesville (Alachua County).

I would warn against putting too much faith in the "Zestimate" that Zillow offers for specific properties. Primarily because it cannot consider the condition of the properties or their value based on their exact location. In other words, Zillow will consider the all of the values surrounding your property, even when the neighborhood directly across the street might not be very comparable.

I primarily use Zillow by entering a specific adress and then pulling up 'recently sold' properties surrounding the property. I write down general info such as address, bedrooms, selling price, and square footage. I always drive-by the properties so that I can see which ones are in similar condition and neighborhoods to the property I am comparing. Then I put together my 'Buttstimate". I know, that sounds bad ( just consider my last name).

Here's a recent article about Zillow reported by RISMEDIA.

Will Prices Continue To Decline?

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 16 Jul 2008 11:18:52 -0700

FORECLOSURE DISCOUNTS: Even with the Feds trying to help homeowners 'keep their homes' (in other words, help banks 'save their shirts'), only a small percentage of people are qualifying for loan modifications. Then, after qualifying, only a small percentage are maintaining their new loan. As a result, many homes sell at discounted prices before auction, at auction, or they sit vacant which increases the supply. Home values decline.

LENDING STANDARDS: When it was easier to borrow money, more people baught homes, which decreased the supply. As we speak, lenders and federal regulators are making it tougher to borrow money, so fewer homes are selling. The federal regulations that were just instituted (such as restricting when a lender can institute a prepayment penalty) will force lenders to raise interest rates to cover their increased risk. Higher interest rates means that homebuyers can't afford higher prices. Home values decline.

MORE BUILDING: Obviously building has decreased and future building will decrease even more. However, there are still some developments that began before the big crash, so more units are still being added to the market. Home values decline.

INFLATION: The dollar is losing value. As the Fed continues to bail out banks, send out stimulous checks, and fund 'defense', then it will inevitably borrow from other countries and print it's own money. As the value of a dollar deceases over time, then it will take more dollars to buy a home of tomorrow then it will to buy a home of today. Home values increase.

So what influences will win out? Will prices increase or decrease? Only time will tell.

News Site Back Up

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 11 Jul 2008 14:12:02 -0700

I have been distracted by other business, but I have started updating my news site again!

Check it out: CLICK HERE

This site focuses on real estate headlines from almost a dozen different sources. It is a one-stop place on the web for you to stay up-to-date with the news that matters to our industry. I do not just add links about national issues, but also Florida and Gainesville.

My goal is to stay informed and share with you.

"Shady" Home-lending Practices

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 09 Jul 2008 11:01:06 -0700

This morning I read a USAToday artice titled Fed to curb shady home-lending practices . Once again, it inspired me to question the situation and the response.

I am pro-regulation when it inspires transparency. In other words, I feel as though some brokers hide or manipulate borrower information when submitting apps to lenders and I also feel as though the borrowers often do not receive adequate explanations pertaining to the details of their loan. If this aspect could be improved, then I would support it.

Beyond that, I feel as though every lender has a right to offer any loan and a borrower has the right to take it or not. Both parties should be allowed to measure the risks and make their own decision.

The recent credit crunch and subprime meltdown are mostly a result of investors, lenders, and borrowers taking a risk and losing. That's their prerogative! The availability of credit is necessary for the excelleration of progress.

We're already seeing lenders tighten their own standards - they don't need the government's help!

Gainesville Notes

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 09 Jul 2008 10:51:54 -0700

I think it's cool that TWO authors about 'green living' have chosen Gainesville as their residence! There's no arguing that we have a lot of green. As even more evidence is the recent denial for new development at the Gainesville Golf and Country Club. This is a tough one for me because I am proud that we are stewards for Paines Prairie, but I am also pro-development. I occasionally imagine businesses and residences on the perimeter and overlooking places like Paines Prairie and Newnan's Lake.

For more info check out these links to the Gainesville Sun:

'Green' authors choose Gainesville as home

Jessica Newman writes, "Trish Riley, author of "The Complete Idiot's Guide to Green Living" (Alpha Books, paperback, $16.95), and Diane Gow McDilda, author of "The Everything Green Living Book" (Adams Media Corp., paperback, $14.95), both live in Gainesville and find it a much greener alternative than other cities in Florida."

Condo plan near prairie is rejected

"Increasing the density of the land abutting the prairie will impact the values of the prairie. Most importantly, increasing the density will set a precedent for development on the edge of the prairie not just today, but five years from now and 50 years from now," said Jack Hauptman of the Sierra Club.

Gainesville Real Estate News - April 2008

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 30 Apr 2008 21:16:49 -0700

Since using "del.icio.us" I have collected links to the majority of real estate news headlines in the Gainesville Sun for April, 2008. For daily doses, check out my Squidoo page.

Gainesville (Real Estate) News Sites

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 22 Apr 2008 21:07:03 -0700

I spend part of each day reading the real estate section of several websites and recently discovered the social linking network, "del.icio.us". So, for a few weeks I have been adding links each day as I surf my usual news sites. Today, I am sharing my del.icio.us with you! Since I'm reading these sites anyway, at least I can save you the time of surfing around.

You'll notice that there are many tags on the right side to explore. One in particular that i added is the "vendors" tag group. If you would like me to add a link to your website, then just let me know with an email or comment.

I've also created a Squidoo page, which basically mirrors my del.icio.us page. I did it mostly out of curiosity, but maybe someone has a preference. My Squidoo page has a lot more ads with it, including some Ebay properties in Gainesville and random real estate related books selected by Amazon.com.

March Prospect A

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 21 Mar 2008 16:04:18 -0700

Here's our latest prospect. it's located in Gainesville, FL. The owner of this property has vacated and it is scheduled for auction next week! We intent to make a last second request to the bank for an extension to be filed, so that we can offer to buy it. Of course, we will make an 'as-is' / all cash offer and they are going to want to see proof of funds before extending the sale. I think I'll send them these photos too! Similar houses are selling in this neighborhood for about 70K. I'm guessing they don't smell as bad as this one! The owner currently owes two mortgages a total of about 90K. I'm just hoping it's not too late to make a deal!

Creative Home Offer: "750 words and $100"

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 19 Mar 2008 22:26:31 -0700

Did you see this one?

"An essay contest about 'Why I Believe In Miracles', charging an entry fee, with the award being the home and land located at..."

This caught my attention yesterday in my local newspaper, which is about ten states away! I did a Google search and found the details at HouseWifeMafia.com. Now I keep thinking, "wow, I wish i thought of that!" This is probably going to hound me for a long time as I brainstorm for whacky ideas.

The thing I think is so effective is that it demands attention - it stands out from the crowd. It gets people talking and spreading the word, causing a huge audience to become aware of this single property.

In addition, the owner has added value. I can't say that the seller will reap this value monetarily, but the buyer will gain a property with an amazing story - and it's documented!

So what creative offers have you heard about? Does this one inspire you?

Fraud v. Creative Financing

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sun, 16 Mar 2008 10:59:29 -0700

Commentary: I frequently see blog posts written by ignorant whistle blowers that don't know the difference between 'creative' and 'fraudulent'. If too many people don't learn the difference, then the real estate industry risks becoming paranoid and defensive. This could translate into regulations that restrict the ability for many people to buy or sell their property efficiently. The market demands fluidity. Otherwise, we will have a permanently 'slow market'. Learn to spot a true fraud. Understand the value of creative solutions. Become an educated judge.

Recommendations: One website that I like is FlippingFrenzy Dot Com. Ralph Roberts seems to be an honest investor and educator who has created this blog to expose fraud and the real culprits. in addition, he focuses on regulation changes happening as a result of our current market 'condition'. I appreciate his views because he understands Realtors and investors (who have similar intentions but occasionally different strategies and solutions). I swear I have no affiliation!

I'm also looking forward to reading this book: Greed, Fraud & Ignorance: A Subprime Insider's Look at the Mortgage Collapse (Mortgage Solutions)

WHAT'S YOUR OPINION? WHAT RELEVANT WEBSITES OR BOOKS DO YOU RECOMMEND?

Photos from historic Duck Pond Area

Jeremy Butts - Investor (Real Estate Entrepreneur) — Mon, 10 Mar 2008 20:48:16 -0700

This past weekend I was attracted to the annual Spring Promenade, which is a fundraiser for the Thomas Center gardens in Gainesville. The center sold tickets to tour six historic houses in the Duck Pond area. After seeing the first home and walking around at a snail's pace due to the crowd, I decided that it would be more fun to simply photograph some of my personal favorites in the neighborhood instead. Here are a few photos from my stroll:

Why No AR Points For Photos?

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sun, 09 Mar 2008 12:40:01 -0700

Does anybody know: why did Activerain stop giving points for uploading photos to Localism? Earning points is fun and good incentive for adding new material. One of my hobbies is taking photos, so I am admittedly a little bummed out that they aren't worth anything now. It's my understanding that there were complaints about excessive uploads, but didn't they implement a limit? I thought that was a reasonable policy. Or what about just lowering the amount of points they're worth - but eliminating them all together? I feel like people are often writing bland blogs or rehashing the same ideas over and over, probably just for some points. Some blogs are good, some are bad, but they're still worth something. What makes photos any different? Is there any hope for a reversal?

DEEP DISCOUNT (LAKEFRONT)

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 05 Mar 2008 18:47:39 -0800

Folks, this is the best deal for miles (in my biased opinion). The owners are VERY motivated. this is my second blog entry in regards to this property, but I've included a few additional photos with this one. The asking price has been reduced again to an astounding $399,000. The property appraiser records show that it has approximately 3,500 sq ft, but the owner has closed in and added duct work to part of the 'in-law suite' making it 4,000 sq ft. 30 minutes drive to Gainesville. For more photos and info CLICK HERE.

MARCH POP QUIZ (Gainesville, FL)

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 04 Mar 2008 18:13:44 -0800

How close can you guess: where in Alachua County is this property?

I have driven by this property a hundred times and thought to myself, "I wish I had my camera!" HINT: it is not on the side of some hidden dirt road. I was also amazed to discover that someone actually lives here. Just as well, it probably would have disintegrated if left vacant. I'd love to see a professional photographer get up close and take some black and white shots. This house seems very floridian, to me. I added a couple more pics of the opposite side of the road.

Signs that (could) kill

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sun, 02 Mar 2008 15:10:27 -0800

Is it just me, or is something seriously wrong with this sign? I've been in Gainesville almost 15 years and the round-a-bout phenomenon has really started spreading throughout certain residential areas in the last few years. So, if we are going to continue with this trend, maybe we should reconsider how to direct drivers through these intersections. If we don't, we may end up on Jay Leno soon!

Deceptive Foreclosure 'Rescuers'

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sat, 01 Mar 2008 13:19:22 -0800

Beware of the famous GUARANTEE! Here is a group in the news for making false statements to homeowners in foreclosure. According to the FTC they were advertising, “We have all the funds available to pay your bills and save your home from foreclosure. GUARANTEED!” The Federal Trade Commission is charging these companies for violating the Home Ownership and Equity Protection Act (HOEPA), the FTC Act, and the Truth in Lending Act (TILA) by extending credit based on the value of consumers’ collateral without regard to their repayment ability, grossly understating the annual percent rate (APR) and finance charges, and failing to make timely written disclosures and by failing to disclose accurately the amount being financed, the finance charge, the annual percentage rate, the payment schedule, the total payment amount, and the fact that the creditor has or will acquire a security interest in the consumer’s home.

BOTTOM LINE: If you're a homeowner, seek legal counsel before making agreements dealing with your home. If you're a business, BE HONEST for crying aloud!!

Sunset: Lake Bedford, Keystone heights, FL

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sat, 01 Mar 2008 09:32:43 -0800

Here, in Gainesville, we aren't spoiled with sunsets. It is flat and there are tall trees that mask the horizon from almost every point. As a result, it is almost necessary to make an effort to see a sunset in all its glory. Luckily, I was visiting my parents' in Keystone Heights, about 45 minutes away, and happened to have my camera when I was witness to this view!