Nicks Northern Kentucky Real Estate Blog

Northern Kentucky MLS - NKY MLS - NKY Homes for sale - Nick Dailey RE/MAX

Thu, 21 Jul 2011 17:28:42 -0700

Access the entire Northern Kentucky MLS with NO REGISTRATION!!

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Is NAR data artificially inflated? That's the claim...

Fri, 25 Mar 2011 11:08:50 -0700

NAR conceded that there may be an "upward drift" in their figures since the housing market collapsed a few years ago. Some economists believe the datat could be inflated by as much as 20%. But, Walter Malony, an NAR spokesman says the data is still accurate and that "In terms of broad market characterizations, it's really not that big of a deal,". REALLY?

The latest absorbtion rate figures released by NAR show that the maket has 8.6 months of inventory nationally. This figure assumes an annual sales rate of 4.88 million homes. Most industry experts agree that a balanced buyer/seller market is attained when there are 6-8 months of inventory available. More inventory would sway in the buyers favor, less would favor a seller. CoreLogic, a private research firm that tracks county real estate records across the country, says the annual sales rate is much closer to 3.6 million homes. That would put the supply numbers in the 17 month range. Obviously that's a significant difference.

So, who's right? If the NAR numbers are off as far as some parties think, then the recovery is definitely at risk. The inflated figures could repress home values further by providing an unrealistic market value for recent sales and could push prices lower still.

NAR's figures, like most economic models, are based on data samples. Getting a more fine-tuned number would require several extra months of research and would not allow for timely releases of reporting. The "Existing Home Sales Report, only polls about 4 out 10 members nationally and compares that to national MLS figures. There was a "benchmark" factor based on Census data that is now defunct due to the removal of several housing-related questions from the most recent count.

One factor in particular, not included in NAR's model, stands to skew figures in and of itself. There is no correction made for a brokerage that has taken on smaller firms or competitors during the downturn. Just because their numbers rose, doesn't necessarily mean there were more sales in that market, just that the brokerage significantly expanded their sales forces.

Let's hope they get this sorted out sooner rather than later. The reporting they are responsible for is watched closely across a broad range of industries.

Thoughts?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

New Short Sale Listing - 1302 Rivermeade Hebron KY 41048 - Thornwilde

Sun, 20 Mar 2011 11:28:32 -0700

MORE INFO & PICTURES HERE

Neutral throughout to allow for your decorating ideas w/out too much work*First floor master*Plenty of 42 inch cabintry in the kitchen*Open lay-out*Very generously sized bedrooms*Formal dining space*Dedicted office*Neighborhood features a pool, tennis, walking trails*SOLD AS IS*

Scan QR Code for Mobile listing view/detail

HD Photos HERE

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Top O' the Mornin to Ya!!

Thu, 17 Mar 2011 10:27:19 -0700

May your day be touched
by a bit of Irish luck,
brightened by a song in your heart,
and warmed by the smiles
of the people you love.

Definitely one of my favorite days of the year!! Closing up shop early today to go celebrate with some good friends. It's good to blow off some steam every now and then.

HAPPY ST. PATTY'S DAY!!!!

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Bad news for new home construction today

Wed, 16 Mar 2011 13:07:53 -0700

Over the last 50 years, only one other single month fared as badly as February did for new home starts. The seasonally adjusted number of 479,000 was a 22.5% fall from last month. The total was only higher than April of '09.

Again, these numbers represent the backlog of distressed properties on the market and the unwillingness of new buyers to enter the market for fear of further pricing declines.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

How do improve the value of my home?

Wed, 16 Mar 2011 10:24:58 -0700

How can I improve the value of my property?

Outside of a homeowner's control, the biggest factor is market conditions. Other important issues are:

condition of the property
specific home improvements
neighborhood stability and safety

The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Specific home improvements can increase the value above the cost of the improvements.

remodeled bathroom returns, 81 percent to the owner
bathroom addition, 89 percent
master bedroom suite, 82 percent

Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.

The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.

How can I increase the value of my property?

Specific home improvements can increase your property value above the cost of the improvements themselves, such as remodeling a kitchen, adding a bathroom, finishing a basement or upgrading landscaping. Just be sure that quality pays with remodeling. A bad remodeling job will do little to boost your property value.

If you live in a high-crime area, an organized community watch program not only will lower the crime rate but can enhance property values, too. It also helps to live in an area where other homeowners are upgrading their homes, which can help pull up your property value, too.

The bottom line is to measure the cost of any improvements you want to make against the overall values in your neighborhood. If you over improve for the neighborhood, you may not necessarily recover your costs or boost your property value significantly.

Will buying a bigger home increase my profit?

Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:

How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
What do local zoning and building ordinances permit?
How much equity already exists in the property?
Are there affordable properties for sale that would satisfy housing needs?

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.

How do I find out how much my home is worth? CLICK HERE

A comparative market analysis and an appraisal are the standard methods for determining a home's value.

Your real estate agent will be able to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.

An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

What are the differences between market value and appraised value?

The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300.

Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

How do HOA's work?

Wed, 16 Mar 2011 10:13:20 -0700

How do homeowners associations work?

Learn everything you can about the homeowners association before you buy into a development governed by one. The association's financial, political and legal conditions are very important to your investment and quality of life.

When run properly, homeowners associations maintain the common grounds and keep civility in the complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues.

Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association’s covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your music late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board.

Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on.

Call and meet with the association president. If you are the type of person who despises intrusions into your private life and the president seems more interested in gossip about the residents than maintaining the property, this may not be the right condo complex for you.

Speak with residents to get their views on the association's finances, its property manager, how it operates and any politics. Associations are volunteer organizations with elected boards, like a mini-government, so politics can enter the picture and spoil a good thing.

Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Proactive Short Sale Processors/Negotiators

Tue, 15 Mar 2011 10:23:36 -0700

In a part of our industry that is notorious for poor communication, mismanaged files and the like, I've found that lately the short sale processors and negotiators are becoming much more proactive in their approach to the file/deal. Just in the last couple weeks, I've been contacted by Citi, B of A (I know, amazing right?) and a small lender out West called Vericrest. All of the reps from these institutions called me very early on in the process to let me know they were assigned to the file and to give me updates on required docs or the number to their direct line and thier email address(es).

Now I don't know how much it will help our timeline, as none of the aforementioned deals are that close to closing, but it's good to have the direct and open communication. Being in touch with your seller/buyer's agent often and with updates is an integral part of getting short sale files closed. It's the ones that linger for weeks at a time with no new news from the lender that make the deals fizzle out.

Let's hope this positive trend continues as there are millions more families out there to help, and with the lender/servicer on board early, there's a much better chance of getting these files closed and helping our clients move on with their lives.

Are you seeing much of the same?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Some Mortgage Basics for New Buyers

Mon, 14 Mar 2011 11:10:43 -0700

Mortgages

The modern mortgage market offers a variety of mortgage loans catering to the needs of homebuyers. The titles and details of these plans can become confusing, especially as new types are introduced continuously. You can make sense of these loan types, however, if you understand the basic principles that govern all mortgage loans. Again, you can look to your real estate professional for assistance.

Basic Principles of all Mortgage Loans

The home is used as security to back up the loan. A lender can force sale of the home if the borrower defaults by failing to make scheduled payments.
The larger the loan compared to the value of the home, the more risky for the lender and, often, the more expensive the loan will be.
Interest earned by the lender always is equal to the periodic interest rate times the outstanding principle balance of the loan. The periodic interest rate is the annual interest rate divided by the number of payments in the year (usually one per month).
The required payment usually is a bit larger than the interest due so that some of the loan principal is repaid with each payment. This process is called Amortization and is why most mortgage loans can be retired when all the monthly payments have been made.

All mortgage loans have one of the following features:

Fixed payment and fixed interest rate - fixed rate mortgages
Fixed rate but variable payment - graduated payment mortgages
Variable rate and variable payment - adjustable rate mortgages

As you learn more about the types of financing available, you will notice that some loans appear to have more favorable terms. That may indicate that those loans are, indeed, bargains (and it does pay to shop around), but usually it means that those loans could have some feature that is less appealing to borrowers. For example, shorter-term loans often have slightly lower interest rates compared to longer-term loans. However, the monthly payment for the same amount of principal may be higher because of the shorter term. Variable rate loans usually have much lower interest rates to compensate for the risk the borrower accepts that interest rates will rise in the future.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

"That was fast!! I'm still on your website!!"

Mon, 14 Mar 2011 10:52:51 -0700

This isn't the first occasion. More than once, I've impressed potential clients with the speed of the lead generation technology we're presented with at RE/MAX. When a consumer signs up on my website, a text message with the consumer info (name, phone #, email) is instantly generated and sent to my cell phone.

I call every lead back right away. And when I say right away, I mean within mere moments from receiving the lead. This morning a lead came through and I called the number that was registered. (Now, I've found, like I'm sure you have, that not all phone numbers are valid - but the vast majority are.) The prospect was still on my website!! Needless to say, she was impressed. I was able to quickly pull up the MLS and answer a couple questions about a listing she was interested in. After the usual qualification questions, we are meeting tomorrow afternoon to go look at the listing in question, plus a few others.

Online lead follow-up is critical. Some agents rack up prospects, but have no idea how to turn them into closings. I'm consistant with the follow-up process and take good notes within the lead generation system. Evey task is assigned a date to get back in touch by phone - never outside of 2 weeks, even if they're months away from purchasing/listing - and they are registered for my monthly eNewsletter and either the buyer or seller drip email drip campaign.

Even if they're months out, I want to maintain priority "MindShare" and make myself a resourse for the process.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

RE/MAX Corporate Auto-Tuned Hip Hop Video - Pretty Funny!!

Fri, 11 Mar 2011 11:07:04 -0800

RE/MAX corporate auto-tuned hip hop video. Just goes to show that while what we do really is serious business, you don't always have to take yourself so seriously... Enjoy!

http://www.youtube.com/watch?v=Cdi2ZipvLvY

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Real Estate Tax Tip: Did you buy a home in 2010?

Tue, 08 Mar 2011 12:27:33 -0800

Real Estate Tax Tip: Did you buy a home in 2010?

Any origination fees or or discount points paid to your lender at closing are tax deductible - even if the seller paid your closing costs!! Not sure what your fees were? Pull out your HUD1 statement and they will be itemized on there for you.

Not sure what to look for? Call me and I'll help you out.

Thinking real estate? Think Nick Dailey!

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

That's called having the cake and eating it too...

Mon, 07 Mar 2011 09:58:02 -0800

Woke up yesterday morning to a email with an offer on one of my short sale listings. Good way to start a Sunday. Price was very workable, the buyer was pre-approved with 20% down, closing and inspection terms were short sale friendly...looking good so far. Then I get to the "additional terms/conditions" section where you can write in additional items to include. The agent wrote: "Buyer reserves the right to cancel or rescind this offer at any time and for any reason prior to short sale acceptance"....HUH?!?!? You really think my seller will go for that? Would you?

The offer might as well have been verbal. When we (the other agent and I) spoke later on that morning, he kept right in line with the same sentiment and even mentioned that he was the one that brought up the idea to his client. Really? So, you want to be able to "keep shopping" and not "miss any other opportunities" while the file is being negotiated. What's in it for my client? After we have a signed contract, the deal is marked Pending in the MLS and we can't keep shopping for buyers. Why would I do that to my client? AND, the earnest money was not to be submitted until short sale approval....

So, let me get this straight. Your client can keep looking for houses and if something better comes up, you're just going to jump ship and not care where we are in the negotiations? I told him that if the Earnest Money was submitted with the execution of the contract, we would consider it. "But, Nick, then if we back out, your seller gets to keep it." UUmmmmm, yeah. That's how that works. It's called a fair deal. I'm going to bust my hump trying to make your client the purchaser of this home. I need them to exact a little patience and commit to us and this property.

Outcome TBD....

Anybody else seeing this? What would you do?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

1194 Wildflower Alexandria KY 41001 - Parkside - Short Sale Listing

Sun, 06 Mar 2011 11:38:03 -0800

4 year new custom Martin Home. Quality abounds, established neighborhood. Features include: stainless steel appliances and upgraded cabinets, HUGE double shower in master, second floor laundry, office with french doors, walkout lower level, brushed nickel and oil rubbed bronze hardware/fixtures, beautiful hardwood floors, .4 acre lot, nice curb appeal. AS IS

MORE LISTING DETAILS HERE

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

More HAFA Nonsense on a Northern Kentucky Short Sale

Fri, 04 Mar 2011 10:45:53 -0800

If I had any hair...I'd be pulling it out right now!! Let's start with the stipulations that come with an approval into the Home Affordable Foreclosure Alternatives program (anybody else with me in that even the name is dumb?). There are plenty of "Gotcha's", as I like to call them, but I'll just focus on what I consider the most egregious and the most damaging to our success in helping homeowners who really need it. I'll get into the specific reason for this post shortly, but here are the general stipulations that I have the most trouble with.

The owner must continue to make a monthly payment during the marketing period that is determined by....??? Actually, I have no idea how they determine what this payment should be. In several cases that I have worked, the payment was actually HIGHER than the original mortgage payment! And I've yet to see one that is anywhere near affordable/reasonable. The owner is not in this situation because that was an amount that was working for them in the first place.
***I see this as a last-chance money grab by the lending institutions to milk every penny they can out of the transaction, knowing that by approving the owner for a short sale, they just agreed to lose money****
Borrower is responsible for providing clear title and negotiating with all junior lien-holders. Read that again and let it sink in. Here's the exact quote from HAFA: "you will need to either pay off these loans in full or negotiate with the lien-holders to release them before closing." The maximum allowed to clear all junior liens is $6,000. This means if you have a HOA lien, second mortgage, contractor lien, etc., the owner must initiate all negotiations and work within that budget to clear them all.
***The first problem is that even if, and it's a big "IF", the owner feels like that is a task that they are willing to take on, do they have the necessary wherewithal, negotiating skills or even the time to handle this task? I'd say more times than not, the answer is "no". And this isn't a knock on the client, it's just a lot to ask of someone who is in this position and who is most likely a novice when it comes to these types of dealings.***
A Deed-In-Lieu is written into the agreement should the short sale be unsuccessful. Different people will probably take this in different ways. I see it as detrimental to the owner.
Your listing agreement is compromised. There is a cancellation clause that must be in your listing agreement for approval into the program. Here is the exact verbiage they expect: "Seller may cancel this agreement prior to the ending date of the listing period without advanced notice to the broker, and without payment of a commission or any other consideration, if the property is conveyed to the mortgage insurer or the mortgage holder."
***This turns a bi-lateral agreement into nothing of the sort. The bank/servicer/insurer can & in several cases HAS approached the owner and tried to persuade them into accepting a DIL before the end of the marketing period.***

And here is the non-sensical issue that led to the reason for the post in the first place:

I listed the property before we were accepted, knowing the borrower had a pretty good set of circumstances both personally and financially for approval. In the HAFA acceptance letter the institution gave a list price for the property. Now I know a BPO was completed within just a couple of days of our first contact with the bank. I know what that BPO came in at. By the time the acceptance letter got to us, we had been on the market for just over a month at a very reasonable price for the neighborhood...with ZERO showings. So what did the required list price come in at? A cool TWENTY THOUSAND DOLLARS HIGHER THAN THE CURRENT LIST PRICE!!!!!! What?!?! I was incensed to say the least.

The dumbest part of all this? At that required list price, the deal wouldn't even be short. There would be excess funds and the owner could move on like a regular retail customer. I immediately called the institution and asked for some clarification as this was the first time the number had been so out of whack on a HAFA deal. The rep told me not to worry and I quote "that number might as well have been made up". Well...yeah!! I'd need a 8-10 year listing agreement before that neighborhood could touch that price. The rep went on to explain that the listing history must show this price for a minimum of 24 hours in order for the deal to go through, but that they would work with us on an offer that was at or around "market value". She told me that the number was not based on an AVM or even the BPO that was submitted. It seems it was literally pulled out of thin air. For all intents and purposes in this scenario, there might as well have been an extra 0 at the end.

Someone please tell me what the point of that is. Why do it?

Now I've read conflicting articles about the future of HAFA in just the last week. One saying that HAFA will be ramped-up and that they are expecting a significantly higher amount of deals. The other was that there was legislation introduced to do away with the program entirely because it's costing too much money to administer and that there is an atrocious success rate. Here's to the latter being true... I've had great successes just working the regular short sale channels at these institutions without all of the extra hoops.

Thoughts? Similar experiences? Different experiences?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Why good contractors matter for your rehabs - Especially when things go wrong

Mon, 14 Feb 2011 10:40:40 -0800

So, I bought a duplex two weeks ago today. It was an REO and had been vacant for the better part of 18 months. Needless to say, it needed some love, but nothing was too serious. I've seen a lot worse. By the time OCWEN finally got around to letting me close, I had the repair list ready and contractors on call. Repairs included: painting entire interior; new carpet; new vinyl in 1 of the bathrooms; replace a few fixtures; new locks; new kitchen counter and sink; minor roof repair to replace some flashing.

My painter was there on day 1. He's done a few jobs for me in the past. He's not the cheapest, but he's meticulous. Paint was finished by day 4.
The flooring company (The Flooring Gallery - don't mind pitching them if you need their service) has a rental-friendly berber that they keep in stock, and a very neutral, inexpensive vinyl. The manager met me at the property the Friday before last. This past Thursday they began and all of the carpet was finished by last Friday.
My GC was able to install the kitchen counter and sink and fix the roof within 10 days of purchase. (Could've been earlier, but he's my cousin and he gave me a bit of a discount if he could push me back a week and finish installing a $30K kitchen. I don't blame him, and the project had the time.)
I did the fixtures and locks and couple other little touch-ups on Saturday.

Project was moving along swiftly, until the water was turned on for the first time. The area where I live will sees single-digit temps in the Winter and the building had not been properly winterized. I turned the main on and the pressure checked out in the first unit. But I could hear water running. I ran upstairs and nothing worked, but I could still hear the water. By the time I ran back downstairs, there was water flowing from the ceiling and it looked like I had installed an indoor water-feature. This was an "OH, $%&#!!" moment. I flew down to the basement and truned the main back off. (Yes, I learned my lesson about turning the water on before the new carpet... Luckily it was easily salvagable and nothing a couple towels couldn't clean up.)

I immediately called my plumber. This was about 3:00 P.M. the Friday before last. He had a guy meet me at the property at 8:00 AM the next Monday (although he did offer to try and send someone out that night). I've worked with them in the past and trust they will do the right thing. I let him in and told him to call me with the damages. Within just a couple of hours his boss called to let me know that the problem(s) had been identified and that the fix was actually relatively simple. He said his guy was already back at the shop picking up the needed parts and that it would be finished by day's end. And it was only going to cost about $300. WHEW!!!! I've seen broken pipes cost triple that. Or more.

So, the moral of the story is, if you want be successful in landlording/rehabbing/flipping, take the time to develop some good relationships with people you can trust to fix your problems. Know your skill-set and what you are and are not willing to take on yourself. Even if you think "yeah, I can do that", the better question is "should you?". Yesterday (Day 13) I met 8 potential tenants and I now have applications from 5 of them to process today. The place will be rented out and all work (including a pretty good "Whoops") has been completed in just 2 weeks.

How do you ensure success of your projects? Any stories to share about unexpected happenings?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Who's going to R4?

Fri, 11 Feb 2011 11:36:58 -0800

I've been on the fence for a while, but now I'm pretty sure I'll be going. Anyone interested in getting an AR meetup together? Could be a great networking session...

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

White House "White Paper" outlines winding down Freddie and Fannie

Fri, 11 Feb 2011 11:26:15 -0800

There are no easy solutions to fixing the mess that is GBM's. It's expected to cost hundreds of billions of dollars. Yes, with a "B". And the process is expected to take years to complete. Without giving specific recommendations in the proposal, the White House did give an outline of some of the things it would like to see implemented. Including:

Shrinking the size of the portfolio of mortgages held by government housing finance agencies by at least 10 percent a year.
Creating an insurance fund for mortgages much like bank deposit insurance, supported by premiums paid by lenders.
Winding down government subsidies of mortgages by raising the fees charged to cover the risk of default.
Limiting the government’s role in housing finance to Federal Housing Administration backing of mortgages, turning most of the market over to the private sector.
Phasing in a 10 percent down payment requirement for government guaranteed loans.

The FDIC-like insurance fund seems like it would have been a good idea to implement initially with the GBM's. And I don't see putting 10% down as a bad thing. Will it knock some potential purchasers out of the market? Sure. Will the loans being underwritten be more stable. Absolutely.

Thoughts?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

I was accepted into CitiMortgage's ProActive Short Sale program!!!

Thu, 10 Feb 2011 10:59:19 -0800

RE/MAX corporate and CitiMortage have teamed-up to help expedite the short sale process and provide local homeowners with a "graceful exit" from their mortgage problems. Here's an excerpt from the email:

"Dear Nicholas,

Congratulations! Because of your Short Sale training and expertise, you have been selected to participate in the CitiMortgage ProActive Short Sale program.

The program is designed to assist families facing foreclosure with a viable alternative, and a more "graceful exit" through a Short Sale. In support of this program, the names of three local RE/MAX agents, who have a demonstrated expertise in Short Sales, will be provided to these homeowners. The homeowners may choose to contact one of those agents.

The primary reason you have been selected to participate in this program is your demonstrated commitment to the Short Sale process. You should have either a CDPE designation, SFR certification or Five Star training, along with a proven high level of experience with Short Sale transactions.

CitiMortgage has a dedicated team of agents who work with homeowners and real estate agents to facilitate Short Sale transactions. This team has the right to accept or reject any offers, and will attempt to provide a response to purchase offers within 72 hours of receiving all requested documentation, including a complete and signed offer contract. A sales commission of 6% will be paid for each closing and there are NO referral fees."

Has anyone else been accepted in their area?

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Short Sale Presentation Today

Thu, 10 Feb 2011 10:41:58 -0800

For 2 hours this afternoon, I will be presenting on the residential short sale process to approximately 50 of the best RE/MAX agents in the area. Hopefully we have an interactive discussion and can help get to the root of the issues that may have made some previous short sale attempts unsuccessful.

The presentation will have enough "meat" to keep our more experienced agents satisfied, but will also provide those with less experience the opportunity to add another arrow to their quiver.

Topics will include: the PFS program, HAFA, B of A, technology to assist with file management, lender contacts and more!!

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Why I continue to blog on AR

Wed, 26 Jan 2011 12:41:40 -0800

A little while back I wrote a post about Using Google Analytics and how much of a difference it makes in how and where I market my website.

The most recent report for my traffic sources confirms my dedication to using this site. The only referrer that sent more traffic to my site than AR was Google. AR accounts for a full 20% of the traffic that is referred to my site. AWESOME!!!!

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Condo, Single Family or Apartment?

Wed, 26 Jan 2011 12:29:32 -0800

What are the differences between condos and single-family homes?

Using appreciation as a measure, condominiums in some areas have been as profitable an investment as single-family homes in the past five years. And in some markets, condos appreciated even more, according to some experts.

While single-family homes have been the preferred investment by homebuyers, changing demographics are helping make condos more popular, especially among single homebuyers, empty nesters and first-time buyers in high-priced markets.

Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation.

Should I be looking into condos?

While condos never had the kind of appreciation experienced by single-family homes in the go-go 1980s, most ultimately have not lost value, say some experts. And with high prices in many urban markets and more single homebuyers in the market than ever before, the market for condos is strong.

As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer).

The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes.

Condominiums have held their value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in the past few years than when they first came on the scene in the late 1970s and early 1980s, experts say.

While there are lots of reports about homeowner's association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past.

Meanwhile, changing demographics are making condominiums more attractive investments for single homebuyers, empty nesters and first-time buyers in expensive markets.

How do homeowners associations work?

Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association’s covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your CDs late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board.

Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are.

Is it difficult to project rents on rentals?

If you are buying a rental income property and applying for a loan to do so, the lender will require an area rent survey by a certified appraiser. The amount a landlord can expect to receive in monthly rent largely depends on what the property has rented for in the past, the condition of the building, its location and the current housing market.

Lenders also look at other cash-flow considerations. They want to know if you have enough reserves on hand to cover predictable and unforeseen expenses, such as property insurance, taxes, regular maintenance and repairs.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

So, you want to buy a fixxer-upper?

Wed, 26 Jan 2011 12:22:56 -0800

Is it smart to even consider a fixer-upper?

It depends. Distressed properties or fixer-uppers can be found anywhere, even in wealthier neighborhoods. Such properties are poorly maintained and have a lower market value than other houses in the neighborhood.

Many experts recommend that before you make such an investment, first find the least desirable house in the best neighborhood. Then do the math to see if what it would cost to bring up the value of that property to its full potential market value is within your budget. If you are a novice buyer, it may be wiser to look for properties that only need cosmetic fixes rather than run-down houses that need major structural repairs.

Is there a tax break for a fixer-upper house if it is considered historical?

Qualified rehabilitated buildings and certified historic structures currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government.

The tax code does not allow deductions for the demolition or significant alteration of a historic structure.

The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.

The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.

Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.

For a list of participating lenders, call HUD at (202) 708-2720.

If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home, or refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.

Are there special loans for fixer-uppers?

If you need a home loan to buy a "fixer-upper" and remodel it, look at the U.S. Department of Housing and Urban Development's Section 203(K) loan program. The program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.

A 203(K) loan is usually done as a combination loan to purchase a "fixer-upper" property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.

Investors must put 15 percent down while owner-occupants are required to come up with only 3 to 5 percent. HUD requires that a minimum of $5,000 be spent on improvements.

Two appraisals are required. Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.

What are building codes?

Building codes are established by local authorities to set minimum public-safety standards for building design, construction, quality, use and occupancy, location and maintenance. There are specialized codes for plumbing, electrical and fire, which usually involve separate inspections and inspectors.

All buildings must be issued a building permit and a Certificate of Occupancy before it can be used. During construction, housing inspectors must make checks at key points. Codes are usually enforced by denying permits, occupancy certificates and by imposing fines.

Building codes also cover most remodeling projects. If you are buying a house that has been significantly remodeled, ask for proof of the permits involved before you purchase to avoid future liability for fines.

How do I find a good contractor?

While hiring contractors recommended by friends is usually a safe route, never hire a construction professional without first checking him or her out. If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call your local Better Business Bureau to see if there are any complaints on file.

If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone numbers so you can verify the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.

If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.

Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contractor at the first meeting. You may end up losing your money.

Is remodeling worth the price and time?

Remodeling magazine produces an annual "Cost vs. Value Report" that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its "curb appeal" with a potential buyer down the road.

Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.

How do I look for fixer-uppers?

You can find distressed properties or fixer-uppers in most communities, even wealthier neighborhoods. A distressed property is one that has been poorly maintained and has a lower market value than other houses in the immediate area.

Ascertaining whether the property you're interested in is a wise investment takes some work. You need to figure what the average house in a given area sells for, as well as what the most desirable houses in that area are like and what they cost.

Some experts suggest that buyers who take this route try to find a "cosmetic fixer" that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping and new appliances. You should avoid run-down houses that need major structural repairs. A house price that looks too good to be true probably is. A smart buyer will find out why before buying it.

The basic strategy for a fixer is to find the least desirable house in the most desirable neighborhood, and then decide if the expenses needed to bring the value of that property up to its full potential market value are within one's rehab budget.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Buying a Foreclosure in Northern Kentucky

Wed, 26 Jan 2011 12:20:46 -0800

Are foreclosures a good investment?

A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems or unexpected expenses.

It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.

Are there different types of foreclosures?

Judicial foreclosure action is a proceeding in which a mortgage, a trustee or another lien holder on property requests a court-supervised sale of the property to cover the unpaid balance of a delinquent debt.

Non-judicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.

How do I find a foreclosed property?

In most states, a foreclosure notice must be published in the legal notices section of a local newspaper where the property is located or in the nearest city. Also, foreclosure notices are usually posted on the property itself and somewhere in the city where the sale is to take place.

When a homeowner is late on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The financial institution that has initiated foreclosure proceedings usually will set the bid price at the loan amount.

Despite these seemingly straightforward rules, buying foreclosures is not as easy as it may sound. Sophisticated investors use the technique so novices may find themselves among stiff competition.

How does HUD affect my buying a foreclosure?

If you are strapped for cash and looking for a bargain, you may be able to buy a foreclosure property acquired by the U.S. Department of Housing and Urban Development for as little as $100 down.

With HUD foreclosures, down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from 5 to 20 percent. But when the property is FHA-insured, the down payment can go much lower.

Each offer must be accompanied by an "earnest money" deposit equal to 5 percent of the bid price, not to exceed $2,000 but not less than $500.

The U.S. Department of Veterans Affairs also offers foreclosure properties which can be purchased directly from the VA often well below market value and with a down payment amount as low as 2 percent for owner-occupants. Investors may be required to pay up to 10 percent of the purchase price as a down payment. This is because the VA guarantees home loans and often ends up owning the property if the veteran defaults.

If you are interested in purchasing a VA foreclosure, call 1-800-827-1000 to request a current listing. About 100 new properties are listed every two weeks.

You should be aware that foreclosure properties are sold "as is," meaning limited repairs have been made but no structural or mechanical warranties are implied.

You can only purchase a U.S. Department of Housing and Urban Development property through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.

Where do you find government foreclosed homes?

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors.

You can only purchase HUD-owned properties through a licensed real estate broker. HUD will pay the broker's commission up to 6 percent of the sales price.

Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from the conventional market's 5 to 20 percent.

Buying a foreclosure property can be risky, especially for the novice. Usually, you buy a foreclosure property "as is," which means there is no warranty implied for the condition of the property (in other words, you can't go back to the seller for repairs). The condition of foreclosure properties is usually not known because an inspection of the interior of the house is not possible before the sale.

In addition, there may be problems with the title, though that is something you can check out before the purchase.

Buying directly at a legal foreclosure sale is risky and dangerous. It is strictly caveat emptor ("Let the buyer beware").

The process has many disadvantages. There is no financing; you need cash and lots of it. The title needs to be checked before the purchase or the buyer could buy a seriously deficient title. The property's condition is not well known and an interior inspection of the property may not be possible before the sale.

In addition, only estate (probate) and foreclosure sales are exempt from some states’ disclosure laws. In both cases, the law protects the seller (usually an heir or financial institution) who has recently acquired the property through adverse circumstances and may have little or no direct information about it.

Can I get financing on a foreclosure?

One reason there are few bidders at foreclosure sales is that it is next to impossible to get financing for such a property. You generally need to show up with cash and lots of it, or a line of credit with your bank upon which you can draw cashier's checks.

What are trustee sales?

Trustee sales are advertised in advance and require an all-cash bid. A sheriff, a constable or lawyer acting as trustee usually conducts the sale. This kind of sale, which usually attracts savvy investors, is not for the novice.

In a trustee sale, the lender who holds the first loan on the property starts the bidding at the amount of the loan being foreclosed. Successful bidders receive a trustee's deed.

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

Short Sale Listing: 469 Glenview Edgewood KY 41017

Mon, 24 Jan 2011 09:08:40 -0800

469 Glenview

EDGEWOOD, KY

Short Sale opportunity in desirable Edgewood

3BR/1BA Single Family House

$107,500

Year Built	2011
Sq Footage	1,144
Bedrooms	3
Bathrooms	1 full, 0 partial
Floors	Unspecified
Parking	1 Car garage
Lot Size	7,405 sqft
HOA/Maint	$0 per month

Description

Short Sale opportunity in desirable Edgewood*House could use a little love & is priced accordingly*Perfect for investor/flipper or 1st time buyer looking to earn some sweat equity*Wood burning fireplace*Covered deck & skylights*Property is Being sold AS IS*Easy to Show*Experienced short sale agent*

Property Features

Central A/C	Central heat	Fireplace
Family room	Office/Den	Dishwasher
Refrigerator	Stove/Oven	Basement
Laundry area - inside	Yard

Additional Photos

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact Info

Nick Dailey

RE/MAX Affiliates

(859) 344-5747

For sale by agent/broker

Equal Opportunity Housing

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure. Northern Kentucky MLS listings of homes for sale.

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com