Market stimuli for first time home buyers and those who upgrade will be running out by the end of April.  Once these programs end we'll surely see the market fall back into pre-incentive times.

However, investment opportunities do exist for those with the capital to invest and the right plan of action to make their investments work for them.  One such approach that appears to be surfacing in several market areas is in the purchase of distressed homes.  Investors are buying up homes at very low prices with the intent of making minimal repairs and then placing them on the market as rentals, land contract opportunities, or lease to own.

In order to make this work the plan needs to include a process for making needed repairs and rehabbing these distressed properties to make them livable.  They need to be priced at a range that will attract people who may not be in a position to purchase more expensive homes as well as include investor based financing.

Land contract or lease to own options appear to be the method preferred by some of the larger investors who also provide financing.  In affect, the investor becomes a land lord over long periods of time with the end goal of having the tenant become a home owner at the end of the contract.

Some of the pitfalls in this approach certainly would be in the area of some clients defaulting and the investor faced with terminating the contract and evicting the tenant.  In turn, this means adding additional funds to the investment in order to make necessary repairs and finding new clients to enter into a purchase agreement via land contract or lease option.

http://www.JonWHome.com

I have written articles related to investors purchasing distressed properties for the purpose of generating a profit in today's market.  The concept sounds good and the income possibilities are positive; providing the approach to this type of investment is sound.

If you are an investor with an interest in purchasing distressed properties it would be wise for you to follow a solid business plan to insure the best return on your investment.  I would suggest the following procedure in making a decision to purchase:

1. (1)  Involve a Realtor who can identify properties in the market areas you have an interest.

(2)  Have the Realtor review these properties with a home inspector to evaluate them based on the cost of needed repairs.

(3)  Determine your bottom line and compare that to the cost of rehabbing the home as well as the highest purchase price you are willing to pay for a given property.

(4)  Have your Realtor do a market analysis to determine what homes in livable condition would sell for in the market specific to your investment property.

(5)  Use your Realtor to submit your offer and assist you in negotiating the price you are willing to pay.

(6)  Once you have closed on a property invest the necessary money to make needed repairs and get the home ready for resale.

(7)  Use your Realtor to market your homes for you (note:  you should have figured in commissions and closing costs into your basis beforehand).

Avoid attempts to set commissions at levels lower than the industry standard.  When buyer agents see what they view as "unfair" buyer agent commission rates they may very well pass on your home and not bring it to their client's attention.

http://www.JonWHome.com

 

Recently articles have appeared in the Canton Repository regarding an investor who purchased distressed properties and sold them "sight unseen" to a buyer with dreams of becoming a land lord for several homes in the Canton area.  The press was rather negative with the buyer discovering that the homes he purchased were in poor condition even though they were advertised as having been made livable.  In some cases the city had condemned and demolished some of the problems.

The investor got some bad press in this matter but the lack of common sense also contributed to the buyer's problems.  Making a purchase without inspecting the property beforehand is like buying the "Brooklyn Bridge" from a street vendor.

For more information you can go to the Canton Repository web site and locate information under their Real Estate news.

The lesson to be learned here is that whether you are an owner occupant or an investor wishing to purchase income property you need to do your due diligence and check out properties before making the decision to buy.  It is wise to have a home inspector go through the home(s) and evaluate them for the cost of repairs and provide you with a useful report that will help you make your decision to purchase (or not to purchase).

http://www.JonWHome.com

The University of Akron men's soccer team has been one of the most productive programs at the university since its inaugural season in 1955.  No other program has been ranked among the nation's best at the university through its history.  Yes, there have been spurts of greatness at the university among over the years:

John Heisman led the Zip's football team to a 12-6 victory over Ohio State in 1896.

Bob Huggins led the Zip's basketball program to several 20 game win seasons

The men's basketball team played in the NCAA tournament and ran into Earl "the Pearl" Monroe as they lost to Winston Salem.

The football team made a played in the Grantland Rice Bowl in 1968 only to be picked apart by a little known quarterback (at that time) by the name of Terry Bradshaw.  Of course four super bowl rings later and an illustrious career with the Pittsburg Steelers, everyone knows who Terry Bradshaw is today.

Other sports have had some great accomplishments also.  A fraternity brother of mine was part of the University's bowling team that won the national championship in 1968 and the women's program has posted numerous starling seasons over the years.

The men's soccer team, however has been consistently regarded as one of the nation's best programs and has made 23 NCAA Tournament appearance including seven of the last eight seasons.

As the Head Soccer Coach at Cuyahoga Falls High School in the 70s and 80s I was proud to have one of my players (David Wells) recruited and selected to play for The University of Akron.  I watched my young student start every game for The University of Akron from 1986 - 1990 and compete in the National Championship game in Tacoma, Washington during his freshman year.

The University of Akron is considered to be an elite program on the national level and have been near the top of the national rankings for several years.  They were the first Mid-American conference team in any sport to achieve a No. 1 national ranking in 2005.  They are currently ranked No. 1 nationally and are 19-0 to date.  Their 19 wins represents the fifth longest winning streak during a single season in NCAA history as well as a school record for victories.

Those of us who have followed Akron soccer closely over the years are watching intently and hoping that the men's soccer team will bring home a national championship this year.  As the top ranked soccer team in the country, The University of Akron has long made its school and followers proud.

Best wishes to coach Caleb Parker and the men's soccer team as they pursue a national championship.  Go Zips!

Home Buyer Tax Credit Extended

Congress today approved legislation that will extend the first-time home buyer tax credit beyond its Nov. 30 deadline and expand it to a wider group of home buyers.

The legislation, which will be signed into law shortly by President Obama, will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30.

Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new primary residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their primary residence for five consecutive years out of the last eight.

In more good news, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return to $125,000 for individuals and $225,000 for married couples.

www.federalhousingtaxcredit.com

 

http://www.JonWHome.com

 

Infocision Stadium- Summa Field

The University of Akron entered a new era in Akron football on September 12, 2009 when they hosted Morgan State in their home opener in a new stadium.  The new stadium is an "on-campus" facility and a vast improvement over the historic Rubber Bowl which was located some distance away from campus.  The new "on-campus" stadium ought to attract thousands of university students who live in university dorms and off-campus housing giving the football program an opportunity to increase game attendance.

The University of Akron has a long football history dating back over 130 years.  In 1968 the "Zips" played in the Grantland Rice Bowl but had the misfortune of running into a relatively unknown quarterback by the name of Terry Bradshaw.  They lost to Louisiana Tech in that game 33-13 and, of course, we all know that Bradshaw went on to win four Super Bowl rings with the Pittsburgh Steelers.

John Heisman coached at Buchtel College (now known as The University of Akron) in 1984.  Interestingly enough, that season only had one game; a 12-6 victory of The Ohio State University. 

On September 12, 2009 27,881 fans celebrated The University of Akron's home opener against Morgan State.  No one in attendance was disappointed.  Akron dominated the game and was on the front end of a 41 - 0 score. The result of the game, however, wasn't as important as the level of pride everyone felt for this university and their efforts to raise the football program to a highr level.

On September 19, 2009 The University of Akron will host Indiana at their new stadium marking this the first time in history that a "Big 10" school traveled to Akron for a football game.  Win or lose, Dr Proenza and the Board of Trustees are to be congratulated for their efforts in brining a "first class" facility to Akron and instilling a high level of pride for this growing football program in the Akron community.

http://www.jonwhome.com

Great invetment property in Canton. Close to a local hospital and elementary school. This home is "move-in" ready and will require minimal work in order to get ready for renters. This home is also a great deal for first-time home buyers.

Time is Running Out to Take Advantage of the 8K Tax Credit

Many "First-Time Home Buyers" have taken advantage of the $8,000.00 tax credit available to them under the American Recovery and Reinvestment Act. 

For many other "First-Time Home Buyers," however, time is running out.  The law requires that a home must be purchased and closed on a principal residence before December 1, 2009.

The Key point to remember is that you must close before December 1, 2009.

 Keep in mind that many transactions take between 45 and 60 days to close.  In order to take advantage of the tax credit a prospective buyer will have to make their decision to purchase by the beginning or middle (at the latest) of October. 

Historically low interest rates, affordable housing, and the $8,000.00 tax credit for "first-time home buyers" makes now the best time to buy.

Staging a home adds appeal. When potential buyers view your home you want them to see it as a home that could be theirs. You want them to feel like it could be their home and not someone else's. I recently listed a home that was staged nicely and had "tons" of appeal. It was listed on April 6 and had a contract written on April 8. The seller listened and understood the importance of preparing their home for the market. They also understood the importance of staging their home to give it that "warm and inviting" appeal. http://www.JonWHome.com

Firestone Park dream home! 5bedrooms, 3 full baths, 2 kitchens, finished basement, 3 car garage and more! You'll enjoy this spacious brick Cape Cod located in Firestone Park. Property includes a double lot. Firestone Park is located in south Akron and is part of the rubber industry neighborhoods established in the early years of the Firetone Tire and Rubber Company. Firestone Country Club is located nearby and is also connected with the early years of Akron's Rubber Industry. http://www.JonWHome.com