Jeremy Butts - We Buy Houses In Gainesville

Muddy Waters In the Appraisal World

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 03 Mar 2009 13:50:34 -0600

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 -0600

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.

Photos: "The Tub Divider" and "Water Damage"

Jeremy Butts - Investor (Real Estate Entrepreneur) — Wed, 25 Feb 2009 13:26:43 -0600

Pay attention to the bottom right corner of this photo. What you see is the corner of another toilet and sink. This is one of the most creative home make-overs I've run across! The previous owner has obviously knocked down a wall to access the tub from their bedroom! Take note - that is not a mirror by the tub. The tub actually divides the bathroom in half and there are two toilets!

Since I haven't purchased a bank owned property before, I'm not used to seeing water damage with a label!

Cartoon: White House Foreclosure

Jeremy Butts - Investor (Real Estate Entrepreneur) — Mon, 09 Feb 2009 13:30:28 -0600

I made this cartoon for a newsletter that I send to my private investors. The title should be "Subject To Underlying Mortgage." Sub-title: "Disclosure: This mortgage has a Due On Sale Clause and the lender has the right to call it due at any time." It speaks of the peaceful transfer of power... and debt responsibility!

Are You Listening to Chicken Little?

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 27 Jan 2009 11:28:03 -0600

I'm continually AMAZED when I hear people predicting that the housing market is bottoming out and there should be a turn around in the next 6-12 months!!!!!!!

The market decline has slowed down (prices are still down, but sales are up) because some people are taking advantage of the extremely low rates for a mortgage - but it is temporary! Who cares if rates are low if next month they've lost equity?

I'm in the business of buying distressed properties and at the beginning of this decade I had to attract sellers to me. I had to pay for advertising. Lately, I've been making offers to banks using a friendly Realtor. Fresh bank-owned properties cross my desk almost daily. It's a blooming infestation!

As a result of an influx of distressed sales and the tight lending environment - prices are plummeting. What's scary is there is a back-log of foreclosures on their way to market in 09'. (check out these articles posted on Inman.com: 1. Obstacles delay REO sales 2.Banks to unleash flood of REOs).

Another HUGE point that I don't hear too many people talking about is regarding all the people who are current on their mortgage, but who owe considerably more than their property is worth. Maybe they bought at the peak of the market or maybe they refinanced or took out a home equity loan. What happens when these folks need to move, but can't sell? If prices have dropped 30%, then they have to go up almost 50% to be back. Are you expecting prices to go up 50% any time soon?

What about the fact that lenders were giving adjustable rate loans with five year balloons? IF 2007 was the last year they were pushintg these loans, that means we still have future balloons coming up for YEARS.

How long can the FED keep interest rates low without inflation raging out of control? What happens when rates go up and ARM loans become more unaffordable and even fewer people can get new loans?

Call me Chicken Little, but if you're planning to buy now - buy LOW!!

Dump A Body, Then Sell A Loan

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 25 Jul 2008 14:20:13 -0500

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 -0500

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 -0500

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 -0500

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 -0500

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 -0500

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 -0500

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 -0500

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.

Is This Complete INJUSTICE?!

Jeremy Butts - Investor (Real Estate Entrepreneur) — Mon, 28 Apr 2008 20:44:35 -0500

Does this sound like a nightmare or what?!?! Imagine you buy a new house and your title agent, or attorney, explains that the only lien against your property will be the expected mortgage. Then a few months later you start to hear rumors in your neighborhood about the builder who didn't pay his contractors, so YOU will be forced to pay because suddenly there is a contractor's lien on your property. This is not a nightmare to some people - it's reality.

Here's a quote from an Elk Grove, CA article titled, "Lien Times Hit Elk Grove": "The unfortunate nature of it here is that the homeowners are on the hook for this because we didn't get paid," said North Hollywood attorney Ken Grossbart, who is representing the landscaper plaintiff, Pacific Parks.

And a quote from a Gainesville, FL article titled, "Builder Woes Hit Home": "...in at least two cases in Weschester, liens have been filed on houses that have already been purchased and moved into. In those cases, according to Florida's Construction Lien Law, if the liens don't get paid the home could be sold against the owner's will to pay for the labor, materials or other services the contractor didn't pay."

In my opinion, every state that upholds this should change their laws. This is a complete injustice! The debt is the responsibility of builder in these cases and if they go bankrupt, then these debts should be included. I'm sure the contractors are feeling ripped off, but they have no right to chase a complete stranger to the transaction. This makes me furious. Tell me I'm not the only one!

Gainesville (Real Estate) News Sites

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 22 Apr 2008 21:07:03 -0500

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.

Gainesville in USAToday

Jeremy Butts - Investor (Real Estate Entrepreneur) — Tue, 01 Apr 2008 22:41:00 -0500

I just wanted to bring to your attention that Gainesville was featured in a USAToday article on April 1st. it's not every day that Gainesville makes the national news (although it's not exactly a secret anymore either). It just so happens that we're featured on April Fool's Day, but I'm sure it's not a joke.

I can't help question the headline though, "Housing Market Stable In Gainesville, Fla." Stable apparently means: "sales of existing homes have slipped lately", "agents are starting to receive more offers", "sections of the metro area saw double-digit price increases". But I suppose Gville really is stable when compared to places like Las Vegas or Phoenix.

March Prospect A

Jeremy Butts - Investor (Real Estate Entrepreneur) — Fri, 21 Mar 2008 16:04:18 -0500

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 -0500

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 -0500

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?

Do you protest Realtor.com?

Jeremy Butts - Investor (Real Estate Entrepreneur) — Sat, 15 Mar 2008 15:46:56 -0500

Can anybody explain to me why some Realtors want their listings to be less public? I just read another article (titled, 'Break Down MLS Walls and Consumers Still Value Realtors') discussing the future of the MLS. One guy made a comment to the article protesting websites like Realtor.com. Apparently, he thinks that the real estate industry has 'whored themselves' by selling their data. This seems like a person with a 'scarcity mentallity'. I believe that the more often people design ways of collaborating and sharing, the more people will benefit (and profit).

Prudential has obviously made a commitment to collaborate:

Homes & Land, Prudential announce data-sharing deals

FrontDoor.com gets Prudential listings

Times are changing and the public is slowly demanding personal and immediate access to all kinds of information, including your listings. People want to find properties on their own and the internet is where they will go. There's a host of reasons that people want and need agents, but the MLS should not be one of them. I'm thankful that (to my knowledge) the MLS here in Gainesville is also available on Realtor.com. But apparently not all MLS listings across the country are posted there. I would like to encourage Realtor's to post on Zillow more often because I like the idea of FSBO's and MLS listings showing up in one place. What's your take?

Photos from historic Duck Pond Area

Jeremy Butts - Investor (Real Estate Entrepreneur) — Mon, 10 Mar 2008 20:48:16 -0500

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 -0500

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 -0600

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 -0600

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 -0600

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!