For those of you not familiar with our area Carolina Forest is a mega development that has and will continue to choke the infrastructure of our county.  That being said International Paper (the developers of Carolina Forest) announced another mega development in our area Carolina Station. 

Folks, I'm not against developers or development.  I developed property and advise others daily on developing their property; However, I would like to see this done responsibly.  International Paper promises to learn from the mistakes of Carolina Forest, but promises are often made and forgotten.  I own property adjacent to this project and would love to see it's value skyrocket.  I don't plan on ever selling it, but I like the fact the bank thinks its valuable.  18,000 homes, That is around 50,000 people, on 6,000 acres.  Do the numbers.  It's a monster project to undertake.  Let's make sure we do it the right way the first time that is all we ask....

Stay tuned to this blog I promise to keep you all up to date on the rezoning meetings.  If you would like to come the public is invited.  First meeting in Nov. 1, 2007 Conway Court House on second ave in conway, SC.

Now I don't know how many of you follow the financial's closely or read the daily news, but you should here this. 

Countrywide announces that they lost $1.2 billion this quarter.  Notice they left out a lot of zeros $1,200,000.00.  Thats in three months.  Then you know what happens...Their stock soars!!! Who is buying this stuff.  I guess the cooperate physic says that they will be profitable next quarter and all of next year. 

 

Now folks I'm no sheep you not going to pull that wool over my eyes...Did you know that another huge and I mean HUGE glut of ARM's are due to reset in Jan.  The second largest group yet.  I haven't got any degree in economics or some fancy paper hanging on my wall, But that is right after Christmas when families tend to be strapped for cash anyway. 

I hope like hell they are right...I mean I would love to see the nations largest lender making money, but I just don't see it.  It will be next fall before the mortgage crisis starts to shake the freeze loose, and spring of '09 before it will thaw completely.  I hope I'm wrong...I really do....I just don't see it though. 

 

We are agents right and we want to hear good news...We want to believe the good news, but show me the numbers....  Don't just tell me.  As agents we see are in the market everyday, not predicting, but reacting.  Who knows the market better than us?  Some guy crunching numbers at a desk in Iowa.  I just don't see how with all those loans reseting countrywide thinks they are going to make money.  Maybe they put all that money they borrowed in a big interest bearing account.  Knowing my luck they probably put it in a hedge fund...LOL

The BLR Guy decided to meme me, and has ragged on me for not getting to it.   I guess you guys can blame him for this boring post....

I am from Horry County, that's Myrtle Beach to all you guys who vacation here.  My family has been here since the revolutionary war.  In Charleston they call that Blue Blood, here we just called it poor country farmers...LOL  All that has changed though.  We are now one of the biggest attractions in the nation.

I specialize in land brokerage.  I still work with builders and new construction, and list the occasional re-sale, but it's not my passion.  I love dealing in land.  Dealt with it all my life, and would like to think I'm pretty good at what I do.

I engaged and slated to be beheaded this coming May...Just joking baby if you happen to read this. 

I am a workaholic.  That's is about all I do besides here on the rain.  I guess you could consider that work too...nahh not really.  I love what I do.  I try to be as professional as one can be while still maintaining a friendly relationship with my clients. 

I am starting to realize I really don't like talking about myself.  Does that count? 

I think I have to pick three new victims....I should get BLR Guy, but he would just hit me back and the rain would be full of junk about us. Soooo

Scot Thrapp (yes I spelled it right) Come on down...

Amanada Griste You have been selected....

Jane and Jesse Neely Let's hear about it...

In one of my earlier post (The Big Secret to Success in Real Estate is only Two Words...) I wrote about how important Honesty and Pricing were in your business.  Today I proved my point and wanted to share the experience with all you rainers...

Ok I had some Developers contact me some time ago about buying several lots I had in Southwood a subdivision I have listed.  They were thinking of building a few spec homes in that neighborhood while they waited for the Beach Market to stabilize...The smartest thing I have heard from them to date....

So I give them a CMA of what homes are selling for...Current number of lots on the market, Selling price of the competition lots, Current attrition rate, what price range is over supplied , where the gaps in the market are, etc, etc, etc...  I guess they have never dealt with a land broker before, because no one had ever broken down the numbers like that for them before.  Like I told them this is what the big builders are doing, and why they are so successful....It's the numbers, and as a developer if the numbers don't work you walk away...

Anyway a few weeks later they called me into their office and ask me to analyze a small subdivision they were planning to do...What a mess...  First they paid way, and I mean WAY too much for the property.  It was in the nicest area of Loris, but still there is now way you can make those numbers work.  Of course the agent that sold them the property told them it was a great deal and they could make BIG BUCKS on this deal.  Yeah Right!!!  Not only have they paid to much for the property, but they have had it engineered twice...and paid interest for over a YEAR NOW!!!

I put all my numbers together present the complete package...And the first words out of my mouth are you guys are screwed!!!  You can imagine how the rest of the meeting went...A lot of blaming, pointing fingers, and telling me how wrong I am...So I ended my presentation by telling them what I thought the best course of action was....Mind you I have the NUMBERS to back up what I am telling them...Then I tell them they should talk to several other agents and see what there numbers say...But make sure they show you the numbers. 

A few weeks later they call me and say I'm right and they want me to help them cut their losses.  I come back in, and I'm sure to ask how it went with the other agents.  Of course they all said they could sell the property for what they wanted for it, some even more...But not one of those agents had any numbers to back it up...

So we talk pricing and they are still trying to list them for more than the property is worth...What you have in the property has nothing to do with what someone will pay for it...So for the second time I walk away from listing these properties.  They call and we argue back and forth for a couple of days...Finally feeling that they were getting now where with me, (after all negotiating is what we do for a living) they give in.

I list the properties and almost immediately I get an offer on two of them...We worked out the fine print today nearly full price, cash deal, with no contingencies, closing in less than 14 days...And I have someone flying in this weekend to look at the last one.  No rocket science just honesty and pricing.  That is all it takes...

I've said it before if you are honest to people and price properties correctly they sell.  Not only was I able to move the property fast saving them money on interest payments, but because they listened to me I discounted my rate just to show I'm fair.  You can't even imagine how ecstatic these guys are... They think I some sort of miracle worker... They now what me to do the numbers on three more properties they are starting to develop.  Guess what guys, I bet they listen this time. 

Try this sometime...Don't be afraid to tell someone they are going to lose money...If you're honest and can back it up with some solid numbers they can not refute you...Stick to your guns, and they will respect you.  List and Sell the property and you have a client for life!!!

Ok all you mortgage guru's and financing wizards...I've got a scenario for you...

I was reading on of our fellow rainers post the other day about how to get PMI off your back. I've tried to find it again with no luck.  I did find others though, and they were all about very informative post.  Anyway...

 

Everyone knows that once you have 20% equity in your home that you can have the PMI removed from your mortgage.  Back when the market was booming here in Myrtle Beach I would call all my clients whom I had sold property to on the anniversary of there closing and remind them to have there property appraised.  Prices were jumping so fast that only one came back under the needed 20% required to have the lender remove the insurance.  This is a good way to keep clients for life.  It will be harder now because values are escalating like they were, but if you keep an eye on there neighborhoods and let them know when they should try this loophole you won't be forgotten.

Back to my point.  Now with all the price erosion that has occurred due to the national mortgage meltdown....Can PMI be tacked back onto a mortgage?  What I'm saying is can the bank now come back and have the property reappraised and add that PMI back to the payment?  I've never heard of this happening, but all these post got my little brain working (dangerous I know).

Has anyone ever heard of anything like this happening?  Is it possible?  If you haven't please don't let the lenders in on this.  I don't think we can handle anymore hurdles in this business, and with some families strapped to the limit they don't need anymore payment. 

Weigh in lets here what you have to say...

Dinosaur And Pig - The best video clips are here This is my answer to the big bad market that has engulfed us since the mortgage crisis...I think more of us should stand up like this little pig and just crap in the face of the market...LOL...After it sure has taken a bigggg one on all of us. Just wanted to share the laugh. Animation courtsey of Amon Lisa

Folks this market is bad.  It is getting better but for know it is bad.  For some of those folks that got into mortgages and loans that they shouldn't have it is a sad time.  Some are just walking away and giving up.  What most don't understand is that there is a better way.  You can negotiate with your mortgage company and avoid a costly foreclosure.  Banks do not want to own your house...They are in the business of loaning money, and that is what they want to do...Period.  I found this great article that explains some of the necessary steps to this process....Click here to Learn How...

For those of you folks who haven't taken the short ride out to Mullins South Carolina you should.  If you're looking for a historic property to rehab or just affordable housing this is the place for you.  Tons of family dining experiences and all kinds of entertainment available.  History is abundant and many families can trace their heritage back hundreds of years.  This is what South Carolina is all about folks....The history. 

 

 

 

 

Finally...I got a deal through closing.  Guys I've had some rough patches, but the last month or so has been ridiculous.  I've had bad  surveys twice, corporations fall apart (that was three deals), a buyer passed away two days before closing, closing attorneys that really can't get it together, not to mention the financing that seems to be impossible to obtain anymore.  What gives?  But I finally got a deal through closing.  I hope this changes my fortunes for the better.  I could use a change in the stars, because my ulcers are starting to flare up(just kidding).

You folks feeling beat down more than normal.

I was browsing through our local newspaper online and ran across the following article that I think we all need to take a look at.  I normally Hyper-link articles, but I know that many of you will not click on the hyper link so I pasted it.  Not trying to cover that up.  This is a big deal folks.  I've closed many deals with the seller contributing a portion of the sales price to the down payments and pre-paids.  I understand why HUD can see a problem in some cases, but this is a deal breaker for lots of first time buyers.  Be sure to read the article below this could affect us all. 

 

 

 

 

HUD seeks end of down payment support schemes

By Mike Drummond - McClatchy Newspapers

The U.S. Department of Housing and Urban Development wants to kill down payment assistance programs for home loans that it says are linked to high foreclosure rates.

HUD said default rates related to down payment assistance programs are about two times the rate of those handled without such programs.

"The default rate on those loans was so bad that if they continued, starting this fiscal year, we'd finally start to pay out more than we'd take in," said Bill Glavin, special assistant to the Federal Housing Administration commissioner.

FHA is under HUD. The new rule is to take effect Oct. 31.

FHA loans using down payment assistance programs accounted for about a third of the 313,998 loans the FHA processed last year, according to records.

The FHA requires borrowers to make a 3 percent down payment. This shows borrowers have savings. It also gives them a stake in the house.

Although lenders are prohibited from paying down payments for buyers, some have gotten around the law by giving the money to specialized nonprofits that in turn give the money to buyers for a fee. Glavin called these deals "pretty shady arrangements that shouldn't be going on."

Buyers could still get gift down payments from parents or others, Glavin said, "but you couldn't have it arranged where the seller was involved."

But industry and political opposition cloud the fate of the rule, even as the number of national foreclosures hit 223,538 in September, a jump of almost 100 percent compared with the same month last year, according to foreclosure marketplace firm RealtyTrac Inc.

Two nonprofit organizations with core businesses tied to down payment assistance programs have filed complaints in federal courts to derail HUD's new rule. A House bill would keep the program, while a competing Senate bill still being debated would scuttle it.

The House bill, passed in September, also authorizes zero and lower down payment loans for borrowers who can afford the monthly payments.

"If you put more restrictions on this, people are not going to be able to qualify for FHA," said Ann Ashburn, president of AmeriDream Inc., a Gaithersburg, Md., nonprofit that handles down payment assistance. "They'll stay renters or, worse, go to subprime."