Please join us on Tuesday August 5th at 9:00 pm (EST) to learn how investors just like you are buying cash flowing properties in the fastest appreciating market in the country and saving thousands of dollars on their taxes. The "GO Zone" was implemented by President Bush after Hurricane Katrina devastated Mississippi and Louisiana in 2005. This IRS statute allows investors to save thousands of dollars on their taxes by simply buying rental properties in certain areas of Mississippi, Alabama, Florida, and Louisiana.
You may have heard that you have to be a real estate professional to qualify for the GO Zone. That is not true. We will tell you how anyone can qualify to receive these tax incentives. The GO Zone will be explained in further detail this Tuesday night on our free webinar.
This event is being held to help educate those who have either considered getting started in real estate or are expanding their portfolio. We will show you how and why now is a great time to act. Forbes says that the Biloxi area is the "most remarkable real estate opportunity since the Depression." That is a pretty bold statement. We will show you why they are saying that. This webinar will show you how to buy cash flowing properties in an area that is still appreciating, while potentially saving thousands of dollars on your taxes at the end of the year. Everyone is welcome including realtors.
This is one of many GO Zone Webinars that we will have in the next few weeks. If this project doesn't make sense to you then tune in for one of our future Webinars. We will also be featuring non GO Zone projects that are located throughout the Southeastern US.
I have written about this before, but felt led to talk about it again. How are you dealing with the current conditions?
Did you know that the industry with the highest mortality rate in our country since January 2007 was real estate related? Did you know that the second highest divorce rate also belongs to our industry? Did you know that chemical addictions, spousal abuse are all growing at an alarming rate?
I learned about these statistics and began to enquire further. I began to wonder about the toll this must be taking on homeowners in distress, suddenly unemployed construction crews, home inspectors, pool contractors, decorators. How were these good people coping? The more I focused on this issue, the more convicted I became that I could do something to help. Such arrogance on my part, I was struggling too, as if I could do anything by my own hand. After God brought me to a place of surrender and I joined a group at our church known as Celebrate Recovery. This program is a Christ-centered ministry designed to help those struggling with addictions, habits, hurts and hangups by applying Biblical principles to their lives. What an amazing difference God had made in these peoples lives! What a difference God has made in my life! Nobody is miraculously "healed", but people are better equipped to handle the difficulties that life throws at them.
I've included the 8 principles that Celebrate Recovery is based on;
CELEBRATE RECOVERY'S EIGHT RECOVERY PRINCIPLES The Road to Recovery Based on the Beatitudes
Realize I'm not God; I admit that I am powerless to control my tendency to do the wrong thing and that my life is unmanageable. (Step 1)
"Happy are those who know that they are spiritually poor."
Earnestly believe that God exists, that I matter to Him and that He has the power to help me recover. (Step 2
"Happy are those how mourn, for they shall be comforted."
Consciously choose to commit all my life and will to Christ's care and control. (Step 3)
"Happy are the meek."
Openly examine and confess my faults to myself, to God, and to someone I trust. (Steps 4 and 5)
"Happy are the pure in heart."
Voluntarily submit to any and all changes God wants to make in my life and humbly ask Him to remove my character defects. (Steps 6 and 7)
"Happy are those whose greatest desire is to do what God requires"
Evaluate all my relationships. Offer forgiveness to those who have hurt me and make amends for harm I've done to others when possible, except when to do so would harm them or others. (Steps 8 and 9)
"Happy are the merciful."
"Happy are the peacemakers"
Reserve a time with God for self-examination, Bible reading, and prayer in order to know God and His will for my life and to gain the power to follow His will. (Steps 10 and 11)
Yield myself to God to be used to bring this Good News to others, both by my example and my words. (Step 12)
"Happy are those who are persecuted because they do what God requires."
So home sales are up and prices are down. What does this mean for us in the Fort Myers-Cape Coral-Bonita Springs area?
Actually it means a lot when you consider all that has taken place over the past 3 years. Our area underwent one of the most torrid times in real estate history. Demand was absurd, prices were appreciating at a ridiculous rate, speculation was rampant and things quite frankly were out of control.
Now we see a sign of things returning to normal. The number of sales are on the increase as more and more people are coming in to an area that has much to offer. When the boom began, many wondered whether the infrastructure could sustain such growth. First of all was the public services factor. The county and cities reacted swiftly, new fire stations and police stations were constructed and manpower has grown. Health systems have increased, the expansion of Gulf Coast Hospital, Healthpark, and the construction of a trauma center on Colonial Blvd greatly decrease the workload on any one hospital. With these expansions comes employment.
Also in the public sector, we see many road projects underway. The long overdue expansion of I-75 is underway and on schedule. This creates a much needed relief for southwest Florida drivers. US-41 is undergoing the process of widening and resurfacing. Projects linking major thoroughfares are on the move in places such as Estero. The connection of Ben Hill Griffin parkway to US-41 by way of Estero Parkway is on schedule. Three Oaks Parkway from The Brooks in Bonita Springs to Daniels Parkway is underway. Treeline Avenue, Livingston Parkway, and Plantation Avenue are all nearing completion. The flyovers on Summerlin Avenue at Gladiolus and San Carlos are complete. All of these major projects give the area much needed travel relief.
Next came the schools. A massive building expansion ensued to meet the need for more classrooms. New high schools included Ida Baker, South Fort Myers, East Lee County and Gateway Charter. Elementary and middle schools such as Treeline, River Hall soon followed. The Lee County school system acquired new land and remodeled the old mall on Colonial Blvd as an administration center.
Then came the retail sector. And did it ever arrive! Coconut Point, the Simon project in Estero, opened with a flourish. This outdoor lifestyle shopping district brought the live/work concept to a reality with new condominium residences over the retail stores, movie theatres and dining of all kinds adorn the streets. Big box retailers and small shops peacefully coexist within the same grounds. Gulf Coast Town Center, the Jacobs project in south Fort Myers stepped up. Many new retailers lined up alongside one of the best dining districts to create an excellent pedestrian shopping experience. Miromar Outlets in Estero is in the process of completing its' latest phase. The Edison Mall in Fort Myers underwent major renovation and expansion. Cape Coral also got in to the act with Pine Island Road becoming a shopping and dining center for the city.
What is the outlook for the area? It is good. Lee County metro area population stands at 591,000, with a projection of a 5-year annualized job growth of 5.4% Forbes.com ranks it as one of the best areas for growth over the next 20 years. The housing boom created jobs and attracted people, as Cape Coral-Fort Myers metro area had the country's second-highest net migration since 2003. According to the most recent U.S. Census information, Cape Coral was the fourth fastest growing U.S. city with a population of more than 100,000. By 2012, average personal income of its residents is expected to grow by 6.9% annually--second only to Naples, Fla. During that time, the area's population is also forecast to grow by 13.3%.
So with housing becoming more affordable combined with property tax and insurance reform, and along these other economic factors southwest Florida still seems like a good place to be.
Some are calling this the best market for investors since real estate tanked in the early 1980s.
Investors, alone and in groups, are negotiating volume deals as they purchase whole subdivisions and bundles of 10 to 50 defaulted loans for pennies on the dollar.
"What we're seeing today dwarfs [the 1980s] by five or 10 times," says Bob Leonetti, president of SMI Funding, an Austin, Texas, company that originates and acquires private and conventional mortgages. "There are huge opportunities for investors."
"People who have cash positions now are going to do very well," says Central Florida real estate practitioner Mike Norvell of Developers Capital Realty in Leesburg, Fla. "It's just crazy the prices you can buy for right now for cash."
Source: Investor's Business Daily, Kathleen Doler (07/07/08)
This is all very well but take a look at what is happening today;
Gallon of gas-$4.13
Gallon of milk-$4.09
Healthcare-$ obscene
Social Security-$ bankrupt
College tuition-$ outrageous
Supersize combo-$6.99
Movie and snacks for family of 4-$60
And the list goes on and on, also the reason for buying cash is that you need to be the Donald to get a gasoline credit card at the moment. The average American credit was at 602 FICO. How many of you mortgage pros can get that done at the moment without 50% and your first born as down payment?
Got a homeowner in trouble with his lender? Can't do a workout? The answer is a short sale.....This is the answer right?? It is what's best for the client...right? It provides the agent with a great listing at a great price....right? Surely with the reduced price it will be a quick sale, fast closing....right? It helps the market by reducing inventory....right?
In theory it all sounds good. But I'm finding that it's not all good. I'm finding homeowners are facing big questions as to the tax implications of a short sale. I'm finding many homeowners are having trouble renting a home due to the destruction of their credit. I'm finding that these "great listings" can take weeks and months to negotiate. I'm finding that there are agents who will post these listings in the MLS at a completely unrealistic price without even talking to the lender, thus reducing the value of every other home around that listing.
I'm also finding that many new developments are struggling due to heavy "investor" (really means speculator who had no business being there) fallout. These developments are like ghost towns, no one occupying the homes, no activity in the neighborhood. People are walking away or failing to close, and the ones who stay in are short sale-ing the community to death.
In addition, I'm finding way too many "short sale expert" agents out there. I am not one, I know enough to not get in to trouble. I know who I can refer distressed homeowners too and who to stay away from. These so called experts usually cause more damage and undue stress to the homeowner and really just make the profession as a whole look bad. If you are going to do short sales, PLEASE get educated properly. Me, I've a lot to learn before going "live" with a seller.
Anyone who wants to shed some light on how to do these properly, I'd be glad to listen.
God Bless
Neil G. Blair-Bennett Broker-Associate Alliance Realty Group 14090 Metropolis Avenue, Suite 206 Ft. Myers, FL 33912 Cell: (239) 645-3798 Office: (239) 274-6637 ext 3022 Fax: (239) 225-0086
In today's new real estate market the time for hesitation is past. Now is the time for action. To take advantage of the new market, the reality is clear-don't wait:
If you are ready to move to a home where you would rather live;
If you can afford a conventional fixed-rate loan;
If you plan to live there or own it for several years; now is the right time to move or buy a first home, second home or rental.
Waiting rarely pays off for many reasons.
Recent Sales
Homes are selling Fort Myers and in southwest Florida. Yes, there is more inventory. Yes, time on market is longer. Yes, loan requirements are tighter. Yes, there are more short sales, bank-owned foreclosures and rental bargains that pull average prices lower. But look beyond national headlines. Our local housing market is not a "bust," "collapse," "meltdown," or "crash" of zero sales. In reality, good properties-high-end, middle-market, even low-end-are selling (ask us for the latest area sales figures), especially with more sellers being realistic about their asking prices to compete. Waiting simply misses out on these good values.
New Buyers
Demand is increasing because today's market has attracted "new buyers," such as pent-up "should-have-moved" locals who put off moving in recent years; boomers with equity looking for second homes; international buyers who see properties priced to sell and enjoy favorable exchange rates; first-timers with parent and grandparent support; resized new construction that's smaller, lower-priced; long-term investors with a goal to "buy low, sell high" years from now. These buyers are buying now.
Interest Rates
Even though rates are around historic lows, demand is what makes home prices stabilize, demand makes sellers less willing to negotiate and demand pushes interest rates higher. Higher interest rates eliminate savings from lower prices. For example, if you bought a $218,900 home 12 months ago at 5.5%, your monthly payment (principal and interest) would be $994 (assume 20% down payment, 30-year fixed-rate loan). If you bought the same home today at $197,010 (assume a 10% price drop) at 6% your monthly payment would be $994. In addition, temporary increases of jumbo loan limits to $729,750 (highest-price markets) expire December 31, 2008. By waiting, any savings from a lower price may be offset by higher financing costs.
Bottoms Up?
No one can pinpoint the "bottom of the market"-except historians with hindsight. Why? Housing markets don't "bottom." Instead, after a period of price declines, leading indicators gradually correct: Transaction volumes increase, days on market decline, prices become steady, inventory sells off, the range between list price and sales price shrinks, builders withdraw incentives as land prices and material costs rise. Indicators reflect the rebound as the housing market adjusts-but the best properties are already gone.
Simply put, the best time to buy is now, as long as you're buying the right home, at the right price and on the right terms. Call us, we are the Moneytrein.com team of Alliance Realty Group of Fort Myers, Florida. (239) 645-3798 or (239) 292-2499
It seems in recent months that there are some interesting innovations in marketing coming to our industry. The advancement of the web has put potential homebuyers right on the sofa of their new living room through the use of virtual tours. The use of call capture has homesellers knowing who is interested in their property. Partnering with the travel industry has developers bringing in buyers worldwide. Even the market we are in has brought about a need for adaptation. Now, we have the foreclosure bus!
Entrepreneurial agents are contacting investors, rounding them up and putiing them on a chartered luxury bus. They are catering a nice lunch, hyping their resumes and leading them on a get rich guided tour.
Sounds smart right? Wind the clock back 2+ years. If the houses that these agents are showing are vacant speculative houses, then guess what? These same agents are the ones who probably sold to the so called investors in the first place! They combined with a like minded mortgage person and told these speculators "buy now at this inflated price with 0 dollars and I will flip it for you at completion for an even greater inflated price!". When things went south, they were nowhere to be found...until now.
So what if this is an owner occupied property? The person who is already suffering humiliation from foreclosure, potential bankruptcy, possible employment contraction, social ridicule and enormous stress is now going to have a brightly painted bus pull up in front of his house. That bus is then going to unloada group of strangers walk through his living room walking on his carpet and dignity at the same time.
I realize that post will be polarizing, those who do this type of business will grill me like a burnt sirloin. But let's face it, if my comments draw that kind of wrath could it be that I touched a raw nerve? Could those that are doing these tours actually look in a mirror and like who they see? Come on, let's walk a mile in the shoes of those who are hurting before we push them barefoot in the streets.
If you are a Florida Power customer you might be asking that question in the months ahead.
The Florida Public Service Commission approved Florida Power & Light Company request to increase their customer's electric costs to offset unanticipated fuel costs. Reports are that the increase will be approximately 8%.
The FPL news release does offer the following ways to reduce your electricity usage.
Cool your home at 78 degrees or warmer with the thermostat fan switch on "auto." For additional savings, raise your thermostat to 82 degrees or warmer when you're away from home.
Install a programmable thermostat to adjust the temperature automatically and maximize your energy savings.
Clean or replace your air conditioner's filter monthly to trim your cooling costs.
Turn off your ceiling fan when you leave the room. A fan that runs constantly can cost up to $7 a month depending on size and age.
Avoid pre-rinsing dishes before putting in dishwasher. It can save nearly $6 a month.
Limit the time you run your pool pump to six hours a day in summer and four a day in winter.
Adjust the water level on your washing machine to match the load size, especially when using hot water. Always use a cold rinse.
Clean the lint filter in your dryer before every load to dry your clothes faster and save money.
Use the auto sensor function on your dryer, if you have one, to conserve energy by not over-drying your clothes.
This is all well and good, but all it means is that we are conserving energy in anticipation of our rates increasing. It's high time FPL and other energy companies put alternative power sources to good use. If we pay more then we should expect more.
So it's a beautiful day in sw Florida, birds are out, sun is shining at least part of the time and buyers are out there. I get a call from a buyer who asks me "I have about a million dollars liquid right now, got any good deals?"
Well of course I could find some good deals! So I proceed to find him a 1785 sq ft home with a pool, built in '06. The property was bank owned and the LA had it listed for $120,000.
My buyer loved the house as an investment property and asked me to prepare the contract with the following terms;
$115,000 cash, no contingencies
Seller pay title
Close as soon as title is done (3 days)
Waive any inspections (general contractor, he did his own)
I presented the offer on a Monday at 11 am, a pretty clean deal! So I thought as well! The LA decides that she is going to collect offers until the end of the week and then present a multiple offer situation to the bank so she can show them what a marvelous job she is doing marketing. She wants to be the only LA for that bank. So can you guess what happened?
The bank accepted an offer $10,000 higher than ours, wasted 30 days and then found out the buyer wasn't qualified. The seller went back to the LA with our contract and asked why she waited 4 days to present our offer. She replied that she was holding out for a better offer.
Time for acceptance is on the contract for a reason, as well as the ethical fact is that we have a responsibility to present all offers in a timely manner. In the days where our ranks are shrinking, lets show the public that we are professionals and give the best service possible.
P.S. If you catch me slacking, call me on it. Accountability leads to improvement!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
So home sales are up and prices are down. What does this mean for us in the Fort Myers-Cape Coral-Bonita Springs area?
Also in the public sector, we see many road projects underway. The long overdue expansion of I-75 is underway and on schedule. This creates a much needed relief for southwest Florida drivers. US-41 is undergoing the process of widening and resurfacing. Projects linking major thoroughfares are on the move in places such as Estero. The connection of Ben Hill Griffin parkway to US-41 by way of Estero Parkway is on schedule. Three Oaks Parkway from The Brooks in Bonita Springs to Daniels Parkway is underway. Treeline Avenue, Livingston Parkway, and Plantation Avenue are all nearing completion. The flyovers on Summerlin Avenue at Gladiolus and San Carlos are complete. All of these major projects give the area much needed travel relief.
projection of a 5-year annualized job growth of 5.4% Forbes.com ranks it as one of the best areas for growth over the next 20 years. The housing boom created jobs and attracted people, as Cape Coral-Fort Myers metro area had the country's second-highest net migration since 2003. According to the most recent U.S. Census information, Cape Coral was the fourth fastest growing U.S. city with a population of more than 100,000. By 2012, average personal income of its residents is expected to grow by 6.9% annually--second only to Naples, Fla. During that time, the area's population is also forecast to grow by 13.3%.
Got a homeowner in trouble with his lender? Can't do a workout? The answer is a short sale.....This is the answer right?? It is what's best for the client...right? It provides the agent with a great listing at a great price....right? Surely with the reduced price it will be a quick sale, fast closing....right? It helps the market by reducing inventory....right?
In today's new real estate market the time for hesitation is past. Now is the time for action. To take advantage of the new market, the reality is clear-don't wait:
So it's a beautiful day in sw Florida, birds are out, sun is shining at least part of the time and buyers are out there. I get a call from a buyer who asks me "I have about a million dollars liquid right now, got any good deals?"
;)
;)
