https://activerain.com/blogs/cashflowinvestor en-us https://activerain.com/blogsview/1219078/government-buying---giving-houses-to-investors-free-and-clear- Get this!  I attended a meeting today in Brevard County Florida.  The County Government set forth their program to distribute the Federal Stimulus Money.  The mandate from HUD is that the money must be spent in designated areas where there are a lot of Foreclosures.  The County intends to buy 61 REOs.  Here's the kicker.  The County isn't buying them for themselves, they are buying them for investors. Here's how it works.  The Investors/Contractors submit an application.  If they are approved and meet the criteria they will have a chance to bid on properties identified by the County. There are some HUD guidelines but nothing too stringent.  The County will then provide all of the money to the Investor at closing to purchase the property AND will also reimburse the investor for all repairs Plus a 15% developers fee. The 15% Developer's fee is based on the total acquisition cost plus repairs.  So if the house cost $70,000 and the repairs cost $30,000, the Investor can collect a $15,000 fee. That's right, the investor gets ownership of the house, gets the repairs paid for and can charge a 15% fee for doing this.  The only catch is that the investor has to rent the home to low income tenants for a designated period of time.  If the rehab project costs less than $25,000.00 the period of time is 10 years.  If the rehab costs between $25,000 - $35,000 the period of time is 20 years and if the cost of rehab is over $35,000.00 the period of time is 30 years.  In the meantime he gets to collect and keep the rent on a free and clear house and also has all of the tax breaks for owning the home as well.  After the expiration of that time, the investor is free to do what he wants with his free and clear property the government bought him. Isn't America Grand!!!! Chris McClatchey THM Investments, LLC Christopher McClatchey (THM Investments, LLC) Mon, 31 Aug 2009 12:03:01 -0700 https://activerain.com/blogsview/1219078/government-buying---giving-houses-to-investors-free-and-clear- https://activerain.com/blogsview/1143391/gotta-love-lawyers---- Saw this in an email.  Thought I'd share. Subj: LOUISIANA LAND TITLE THIS IS HOW RIDICULOUS BUYING PROPERTY CAN BE.  AND IN A RARE TURN OF EVENTS, YOU GOTTA LOVE THIS LAWYER!Louisiana Land TitlePart of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years.With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership.Here's the story on one attorney on an issue with FHA (on behalf of a client):A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.(Actual reply):"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."Annoyed, the lawyer responded as follows:     (Actual response):"Your letter regarding title in Case No..189156 has been received. I note that you wish to have title extended further than the 194 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana wa s purchased by the United States from France, in 1803 the year of origin identified in our application.For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana .. God, therefore, would be the owner of origin and His origins date back, to before the beginning of time, the world as we know it and the FHA. I hope you find God's original claim to be satisfactory.Now, may we have our damn loan?"The loan was approved. Christopher McClatchey (THM Investments, LLC) Tue, 07 Jul 2009 04:37:28 -0700 https://activerain.com/blogsview/1143391/gotta-love-lawyers---- https://activerain.com/blogsview/1108735/you-are-as-successful-as-the-5-people-you-spend-the-most-time-with--- Hello Everyone, I Just wanted to remind everyone that the Attitudes of Wealth Focus Group is again meeting this Thursday, June 11th at 6:30 p.m.  We are meeting at the Veterans Memorial Center behind Merritt Square Mall.  This group focuses on the habits, systems, mindsets and attitudes of the ultra successful. As many of you know, one of the ideas for the group is to bring in speakers who are successful in other industries and apply different techniques to real estate investing. This month we are privileged to have Mary Ann Hagerty as our Guest Speaker.  Mary Ann was (and is) a stay at home mother of four daughters. She and her husband of 24 years have owned several businesses over the years, including a pest control business, a roofing company and a home inspection company.  But it wasn't until they found the Network Marketing Industry that their success took off. In 1999 they were introduced to Team National and in 2000 they matched a Six Figure Real Estate income part time their first year with Team National!!  Today, their team and their income continues to grow and the exciting part is .... "We're just getting started!!"    Mary Ann is going to talk about her success in Network Marketing and will share: -An industry overview ~ Why Direct Sales and Network Marketing -Why Team National ~ We're Different!!  A system that WORKS!! -Her Personal Growth and Journey ~ Living a life of significance! She is a fabulous speaker and an even more fabulous person. Come and share her secrets and tecniques of success.   Looking forward to seeing you Thursday! Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Tue, 09 Jun 2009 11:19:21 -0700 https://activerain.com/blogsview/1108735/you-are-as-successful-as-the-5-people-you-spend-the-most-time-with--- https://activerain.com/blogsview/1095753/new-information-regarding-8k-downpayment-advance-release--- Details of FHA's $8K downpayment advance released information was recently sent to me. I am passing it along to anyone who needs the information.  Thanks Chris McClatchey Housing Market RealtyWASHINGTON - May 29, 2009 - The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time homebuyers use a tax credit as part of a downpayment.HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error. "We've been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled," says John Sebree, FAR vice president of public policy. "Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget."The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied20to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it's paid back."Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers," says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms. Christopher McClatchey (THM Investments, LLC) Sat, 30 May 2009 07:10:37 -0700 https://activerain.com/blogsview/1095753/new-information-regarding-8k-downpayment-advance-release--- https://activerain.com/blogsview/1094341/introspective-on-a-deal-lost- I recently lost an investment deal over $500.00.  Looking back on the negotiations, I realized I have become accustomed to the low prices this market has afforded.  A few months back I wrote a blog about a home our company had listed for $89,000.00 and we made a short sale offer of $58,000.00.  The bank turned it down and through the REO process we were able to buy the home for $17,000.00.  We recently finished the rehab for $13,000.00 and now have a completely redone home for $30,000.00 that will rent for $850 - $900. The property I recently lost was the home right next door. It was the same investor who lost the property, the same lender, and the same REO agent.  We put our offer of $17,000.00 in for the 2nd property.  It worked once right?  The REO agent came back and said there was another offer and we were in a highest and best.  Again, same situation as before.  This time however, we did up our offer to $17,500.00, but not a penny more.  Well the other offer came in at $18,000.00 and we were out. My current reflection on this situation is this: Really what is the difference b/t a $17,500.00 and a full price offer of $19,500.00.  $2000.00 right!  Yes, but this is a long term hold.  Divide that over the 10-15 years we are going to hold it and it is minimal.  Don't get me wrong, I don't like to pay more than a seller is willing to take, but it I am getting $850 in rent and my mortgage payment goes up $7 a month because of the extra $2k in our offer, does it really matter?  I think not. I know, I'm bringing everyone into my misery, but I truly believe that just as alot of people in real estate lost perspective in the boom, some of us are starting to lose perspective in this downturn. I for one am trying not to let that happen.  ....again. Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Fri, 29 May 2009 03:32:02 -0700 https://activerain.com/blogsview/1094341/introspective-on-a-deal-lost- https://activerain.com/blogsview/1089588/happy-memorial-day-- As we celebrate with our family and friends today, may we take a few minutes to remember the reason we are here to celebrate. May we remember all of those who gave their lives to this great country and those who continue to serve today.  Thank you to all and Happy Memorial Day! Chris McClatchey Housing Market Realty Brevard County, Florida Christopher McClatchey (THM Investments, LLC) Mon, 25 May 2009 08:23:05 -0700 https://activerain.com/blogsview/1089588/happy-memorial-day-- https://activerain.com/blogsview/1084143/we-re-back----3--rent-to-purchase-price-ratios----- 3 Years ago, we were lucky to find anything that cashflowed. The Rent to Purchase Price Ratios were less than 1%. Now we are see some at 3% and over.  I've said it before, we are in the midst of the greatest wealth building opportunity, we are going to see in our lifetime. Check out this Deal!!!!!! Joint Venture Opportunity or Buy it Outright!!$$ INCOME PRODUCING MULTI-FAMILY PROPERTY !!228 Lura Lane, Merritt Island (last sale 126k)option #1 JV opportunity„« $39,000 ($35,000 purchase price +$4,000 for rehab/exp)„« $12,000 Gross Rent ($500/mo. x 2 units x 12 mo.)„« -$600 ( projected 5% vacancy)„« -$1,140 (10% prop. mgmt. Don¡¦t deal w/tenants!!)„« -$3300 for T+I fees ($1500 ins, $1800 taxes)„« =$6960 Net rent„« -$2340 (6% debt service on $39,000)„« =$4620 (NET annual income after debt service)„« =$3945 (25% JV = $9% ROI)„« (As J/V lender you earn 6% + 25% of net income)„« Option #2 „« buy it Wholesale for $39,000 cash, close by May 28thand enjoy 21% ROI !! ( including mgmt fee!!)This property has great roof, electric upgrade, good windows and block construction- almost move-in!!Joint Venture lenders get 6% return on cash investment, PLUS 25% equity/ownership! This is a 5-7 year investment.Contact us today!! info@thmllc. com Christopher McClatchey (THM Investments, LLC) Wed, 20 May 2009 09:07:50 -0700 https://activerain.com/blogsview/1084143/we-re-back----3--rent-to-purchase-price-ratios----- https://activerain.com/blogsview/1073501/attitudes-of-wealth Hello Everyone, I Just wanted to remind everyone that the Attitudes of Wealth Focus Group is again meeting this Thursday, May 14th at 6:30 p.m.  We are meeting at the Veterans Memorial Center behind Merritt Square Mall.  This group focuses on the habits, systems, mindsets and attitudes of the ultra successful . This month we are privileged to have Dr. Paul V. Grimm. Dr. Grimm is from Pittsburgh, Pennsylvania.  He graduated from Palmer College of Chiropractic in 1997 and operated a private practice in Oxford, England for six (6) years.  While practicing  in England, he lectured and served as a board member on several organizations.     Upon returning to the States in 2003, Dr. Grimm established a prosperous practice in Merritt Island, Florida caring for patients of all ages. He lives in Brevard County, with his wife and two children. Dr. Grimm will be speaking on Power Tools for Prosperity, a practical application of a success oriented habits. Can't wait to see you there!!! Chris McClatchey Housing Market Realty 321-453-2300 Christopher McClatchey (THM Investments, LLC) Tue, 12 May 2009 11:36:49 -0700 https://activerain.com/blogsview/1073501/attitudes-of-wealth https://activerain.com/blogsview/1041446/-8000-first-time-homebuyer-irs-tax-credit-explained Found this short video on youtube that helps explain the $8000 first time homebuyer credit.  I found it to be very helpful in determing whether or not my buyers would qualify and preparing the paperwork of those that do. Hope this helps. http://www.youtube.com/watch?v=suiAfys53aU Christopher McClatchey 321.453.2300 - Telephone 321.985.0270 - Fax Visit My Website: www.housingmarketrealty.com Join My Blog: http://activerain.com/cashflowinvestor Visit Me at Linkedin: www.linkedin.com/in/chrismcclatchey Alternate Email: chris@thmllc.com Investment Website: www.thmllc.com Christopher McClatchey (THM Investments, LLC) Sun, 19 Apr 2009 12:33:06 -0700 https://activerain.com/blogsview/1041446/-8000-first-time-homebuyer-irs-tax-credit-explained https://activerain.com/blogsview/1041398/search-all-of-craigslist-with-1-click--- Just wanted to pass on some information that I recently discovered.  As an investor I routinely search craigslist, Kijiji and a few others.  A new FREE program allows you to search the entire site with one search. An extreme time saver for me. Just go to RaveTrade.com .  I have no ownership or other interests in this site other than as a user. (i.e. this is not a sales pitch) Hope this helps! Now You Can :1) " Search ALL Craigslist " and RaveTrade.com with One Click !2) Super Search Kijiji & BackPage !3) Upload a Dynamic Slideshow from Slide.Com !RaveTrade.com is a 100% FREE PHOTO / VIDEO / MP3 CLASSIFIEDS.http://www.ravetrad e.com Max. Exposure / Mainstream Classifieds. -Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Sun, 19 Apr 2009 11:47:23 -0700 https://activerain.com/blogsview/1041398/search-all-of-craigslist-with-1-click--- https://activerain.com/blogsview/1037184/irs--8000-tax-credit-video I found this on youtube and thought it might be helpful to explain how the tax credit works.  Follow the link below. http://www.youtube.com/watch?v=suiAfys53aU Chris McClatchey Housing Market Realty Cocoa, Florida Christopher McClatchey (THM Investments, LLC) Thu, 16 Apr 2009 06:20:25 -0700 https://activerain.com/blogsview/1037184/irs--8000-tax-credit-video https://activerain.com/blogsview/1032481/private-lenders--ira-money We have been using private lenders to finance our investments exclusively for about a year and a half.  Recently, it seems everyone is trying to do the same thing.  About a week ago one of the "Self Directed IRA" company's put on a "Mixer" to mix their clients with real estate investors. The purpose was to see if relationships could be made for a private lending forum.  A great idea!  Except that 98% of the people that showed up were the real estate investors and the other 2% were there to promote their own business.  In short, the people with private money failed to appear. I realize that this isn't that shocking, but I am asking to see what other investors are doing to try and find/advertise to get private lenders in your area.  Obviously don't want to compete but if there are good ideas out there I would appreciate your input. Chris Mcclatchey www.thmllc.com Christopher McClatchey (THM Investments, LLC) Mon, 13 Apr 2009 08:12:02 -0700 https://activerain.com/blogsview/1032481/private-lenders--ira-money https://activerain.com/blogsview/1029453/former-listing-and-bank-blunder-turns-into-windfall- Another Bank blunder. I know, it's becoming commonplace.  This one is unbelievable!  About a year ago, our real estate office (Housing Market Realty in Cocoa, Florida) took in 2 listings right next door to each from the same owner.  She was an investor who was over-leveraged and was having a cash-flow problem.  One of our agents took the short-sale listings and listed them at $89,000 each, despite a mortgage balance of approx. $110,000 each. In addition to having our real estate licenses, a few of us also have a real estate investment company.  The real estate investment company made the bank an offer of $58,000 on 1 of the listings.  The bank did an "internal" BPO and rejected our offer. They didn't even counter because they thought the house was worth $92,000. No other offers came in.  The house went into foreclosure and our listings were withdrawn. Once the house was taken back as an REO, another real estate company listed them.  The ironic part was that they listed the property at $59,900.  Yes our offer was $58,000 9 months earlier.  The house has been sitting and sitting.  The price kept dropping and dropping. One of the houses did go under contract, but the contract fell through.   Finally after the last price drop, our investment company put in another offer, and this offer was succesful. THE CONTRACT PRICE = $17,000. It gets better, while we were doing our walk-through, we decided to look at the other house down the street.  It was on the market for $35,000.  You guessed it, we submitted our offer of $17,000. So instead of getting 1 house for $58,000, we now get 2 houses for $34,000.00.  BTW - each house will rent for $850-$950.  It's no wonder the banks are failing.  They lost $41,000 and 1 year of holding time on each of these houses. Their loss! Christopher McClatchey (THM Investments, LLC) Fri, 10 Apr 2009 23:38:53 -0700 https://activerain.com/blogsview/1029453/former-listing-and-bank-blunder-turns-into-windfall- https://activerain.com/blogsview/978849/key-to-getting-your-reo-offers-accepted--or-just-noticed- For those of you who have been following my blog, you will recall that I am of the opinion that the Investor Market has significantly increased.  We have been in multiple offers countless times, we have lost contracts despite bidding over list price and we quite frankly have lost contracts by being untimely. (i.e. not fast enough) We have recently evaluated our systems and made an important discovery, we didn't really know the REO agents and they really didn't know who we were.  As a result we made a concerted effort to make contact with a few of the bigger REO agents in our area and asked them 1 simple question; "how can we structure our offers to make your job easier?"  This simple question opened up a huge door into the world of REO deal structuring and more importantly "good will" to the REO agent.  We even had 1 agent stop by our office and discuss REOs, his clients, his properties for over 45 minutes.  That discussion alone led us to an unnoticed gem of an REO in Brevard County, Florida. Since that time, we have seen a significant increase in the submission of our offers, the taking of our phone calls by the REO agents and yes the acceptance of a few more contracts.  That's not to say all of our contracts are accepted, but when the REO agent has to choose which offer to recommend, you can bet he/she is going to choose the company/person he knows can get the deal done. Bottom line, get to know the REO agents, let them get to know you and prove you can get deals done. Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Wed, 11 Mar 2009 13:59:14 -0700 https://activerain.com/blogsview/978849/key-to-getting-your-reo-offers-accepted--or-just-noticed- https://activerain.com/blogsview/975135/update--to-stock-market-woes--brevard-county-real-estate-goes- Last week I commented on the fact that my company (THM Investments) had placed on "over list price" offer on a property in Brevard County, Florida and lost the deal.  I believe that the real estate market is picking back up because of how poorly the stock market is performing.  My analysis is not based on this one deal, but on the fact that most of our offers are becoming multiple offer situations. Sometimes as many as five or six offers at a time. So why am I repeating myself.  I'm glad you asked.  Today we placed an offer on a property in Merritt Island, Florida that had been on the market for 5 days.  When I called the listing agent to tell him I had an offer coming in. He just laughed and told me I was lucky number 13.  I told him it was my unlucky number and I wouldn't waste his time or mine.  He appreciated that and I was left wondering what this all means. My conclusions are that we are seeing resistance points in the market.  We are well below cash flow numbers on these properties and the investors are flocking back in. I don't think we are the bottom yet, but with investors coming back into the market for long term holds, we are likely to see a dramatic increase in sales.  Our MLS numbers have dropped by 500 or so lisitings in the last couple of months.  Houses are moving and I am thrilled. Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Mon, 09 Mar 2009 13:24:51 -0700 https://activerain.com/blogsview/975135/update--to-stock-market-woes--brevard-county-real-estate-goes- https://activerain.com/blogsview/968529/with-the-stock-market-woes--brevard-county-real-estate-goes- I actually lost a deal today to another investor.  The ironic part of it was that my offer was MORE than the List Price.  That's right, MORE than the List Price.  This seems to be more and more of a trend in Brevard County (near Cocoa Beach about 45 min. East of Orlando).  We are seeing resistance points in the market. My analysis (admittedly not scientific) seems to be that the more the stock market falls, the more investors are flocking back into real estate.  We are seeing multiple offer situations continuously on these properties.  One property even had 6 offers on it by the time we submitted ours.  It seems to be a growing trend. Also, we just closed on a property today and the closing agent said she is busier than she has ever been. By the time she did our closing (at 2:30 p.m.) she had already done 3 and was on her way to do 2 more.  Now she admitted most of these were refis but still she was seeing quite a few purchases.  She even mentioned she saw one refi with a 30 year fixed rate of 4.25%.  Amazing. I do believe that now is the time to buy real estate.  The market trends are pointing upward. The upward movement may be happening now, it may take place in 1 month or 6 months.  Nobody knows, but i will say alot of things seem to be in place for an upward movement of the housing market. Christopher McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Thu, 05 Mar 2009 11:57:19 -0800 https://activerain.com/blogsview/968529/with-the-stock-market-woes--brevard-county-real-estate-goes- https://activerain.com/blogsview/955916/wholesale-cash-flow-deal---brevard-county--florida--near-cocoa-beach- Port St. John Wholesale Deal 6463 Hudson Ave, Port St. John 3 Bedroom / 2 Bath / 2 Car Garage 1268 Sq Ft. Built 1990 (Sales Price in 1990 $63k) Last Sale $182k (9/05) Transferable Termite Bond Included Minor Repairs Needed (for rental ready) Rent Range - $800-$1000 Asking $62,500 + closing costs VIDEO:  http://www.youtube.com/watch?v=ML01INk8ILs PICTURES : http://www.thmllc.com/wholesale.html Christopher McClatchey (THM Investments, LLC) Thu, 26 Feb 2009 13:39:24 -0800 https://activerain.com/blogsview/955916/wholesale-cash-flow-deal---brevard-county--florida--near-cocoa-beach- https://activerain.com/blogsview/955911/wholesale-deal-in-brevard-county--florida Port St. John Wholesale Deal 6463 Hudson Ave, Port St. John 3 Bedroom / 2 Bath / 2 Car Garage 1268 Sq Ft. Built 1990 (Sales Price in 1990 $63k) Last Sale $182k (9/05) Transferable Termite Bond Included Minor Repairs Needed (for rental ready) Rent Range - $800-$1000 Asking $62,500 + closing costs VIDEO:  http://www.youtube.com/watch?v=ML01INk8ILs PICTURES : http://www.thmllc.com/wholesale.html Christopher McClatchey (THM Investments, LLC) Thu, 26 Feb 2009 13:37:32 -0800 https://activerain.com/blogsview/955911/wholesale-deal-in-brevard-county--florida https://activerain.com/blogsview/955855/i-m-actually-starting-to-feel-sorry-for-the-banks- I know. Can you believe I said that.  I can't. But here are some reasons my beliefs are changing. The Court Systems are so back logged with Foreclosure cases right now that it will typically take between 12 and 18 months to get back the property.  Yes, in Brevard County Florida, that means that the homeowner can actually live free of charge for over a year.  Furthermore, the banks are usually getting an asset worth 50% of what the homeowner borrowed on the property. In addition, the asset is continuing to become devalued over this period of time. What's worse is that now there is an attorney in Florida who is marketing his services to homeowners. His service is simply to show homeowners how to delay the process even more.  He is telling people to file a request to produce the original note.  Since these loans have been bought and sold so many times, the original note is almost impossible to find or it takes a long time to find it.  Therefore, the cases where this request has been filed are taking in excess of 2 years.  That's right, a person can live mortgage free to over 2 years and the banks can't do anything about it. I know this may not be a popular opinion and that nobody wants to lose their home or see a loved one lose their home.  It's not a good situation. However, I do believe that these homeowners (at least a good majority of them) enjoyed the money they received from equity stripping their homes and that now they should take responsibility for doing so.  I realize I am speaking in generalities and that there will always be exceptions, but there are alot of people taking advantage of the system right now by playing the "victim" card and it is actually hurting the other responsible people. -Chris McClatchey Housing Market Realty, Brevard County Florida Christopher McClatchey (THM Investments, LLC) Thu, 26 Feb 2009 12:58:53 -0800 https://activerain.com/blogsview/955855/i-m-actually-starting-to-feel-sorry-for-the-banks- https://activerain.com/blogsview/925415/1099s--they-re-real-and-they-re-here- Being both a Realtor and an Investor, I have heard alot of talk lately about whether the banks will issue 1099s, won't issue 1099s, will forgive the deficiency judgments or whether Federal Legislation will negate them.  There is alot of speculation on this topic along with alot of misinformation.  Well, if you are an investor who has a loan going bad or are a Realtor representing a client, I can tell you the 1099s are real and they're here. I represented a client who unfortunately lost his job about a year ago.  He went through her entire savings to try and salvage his assets.  Unfortunately he couldn't.  He had to sell his condo on a short-sale.  This was an investment property for him. He had already done a short sale on his primary residence.  The short sale on his investment condo was succesful. However, since he had already done a short on his primary residence, the lender informed him he would receive a 1099 for the defiiciency balance.  In fact he did receive her 1099 last week in excess of $90,000.00. As a Realtor, we had all of the documentation and disclosures signed regarding the deficiency balance. To protect ourselves as well as our clients, we must be informed and have all of the paperwork executed. Investors also have to be equally aware that the 1099s are real.  If you are considering letting a loan go bad, realize there are consequences that go far beyond the bad credit and foreclosure. Get representation and professional opinions from your Accountant and Attorney BEFORE your loan goes bad.  They can advise you about the process and possible protection of your other assets. Christopher McClatchey Housing Market Realty THM Investments, LLC *Although I am a licensed Attorney in Brevard County, Florida, the information contained in this blog does not represent a legal opinion or legal advice. Christopher McClatchey (THM Investments, LLC) Mon, 09 Feb 2009 12:31:20 -0800 https://activerain.com/blogsview/925415/1099s--they-re-real-and-they-re-here- https://activerain.com/blogsview/911300/bank-loses--24-500-because-departments-don-t-communicate- Another unbelieveable bank story :  An agent in my office of Housing Market Realty in Brevard County, Florida had an unbelieveable situation with a short sale listing. The listing is a direct Indian River Front Condo, in Port St. John, Florida.  The condo has been on the market for over a year with multiple offers having been presented to the bank and subsequently turned down.  The offers were around the $125,000.00 range.  Believe it or not, that is approximately what they are currently selling for. The latest offer was $118,000.00.  This offer came from an agent from a different Brokerage. The Buyers are well qualified and are really interested in the property.  The bank has had this offer for over 3 months.  Neither our agent nor the title company can get in touch with the loss mitigator.  The Foreclosure sale has already been postpoed once to allow for this offer to be presented.  The foreclosure sale has been rescheduled in a couple of weeks. Last week, because of the lack of communication from the loss mitigator, our agent, our client and the title company have basically given up hope that the short-sale would occur before the sale date. In fact, the title company sent an agressive email to the short sale department for their lack of communication on the matter. I know, this is the same story happening around the country.  So you ask why is this different.  It is different because on Friday, A DIFFERENT DEPARTMENT AT THE AT THE BANK, sent our client a letter that they would accept a payoff amount of $94,500.00.  Thats right, if he refinances or sells the property, they will sign a full and final release and satisfaction for $94,500.00.  That's $24,500 less than a pending offer on the property. If that's not enough, they WILL NOT seek a deficiency judgment against him or 1099 him for the difference.  He owed over $190,000 on the property.  I just can't understand what these banks are thinking.  If they would only work their files and communicate with the agents AND other departments, they would save so much money.  Is it any wonder that these financial institutions are going bankrupt. I would love to hear any horror stories you may have regarding these financial institutions. -Chris McClatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Sun, 01 Feb 2009 07:29:58 -0800 https://activerain.com/blogsview/911300/bank-loses--24-500-because-departments-don-t-communicate- https://activerain.com/blogsview/899748/housing-market-realty-going-green--owner-drive-veggie-car In an effort to promote a more "green" awareness for our industry,  Housing Market Realty in Cocoa, Florida has tried to make a statement to its clients and colleagues. Although we have tried to do a number of things to become more green, we are seeking advice on additional ways to be more environmentally friendly.  Here are some of the ways we are becoming more green.  Please use these ways and advise on some other ways if you could. 1. We are a "Cell Phone for Soldiers" drop off point. - These are old cell phones that get re-used by our troops 2. We are virtually paperless.  We are using a scanner for almost all copier like functions.  We are using digital copies instead of faxed copies. 3. One of our owners drives his vintage mercedes on donated Vegtable Oil. (Really popluar around Thanksgiving and Christmas) http://www.news-press.com/article/20081128/NEWS01/81128010/1075 4. One of our owners drives a Toyota Hybrid 5. One of our agents drives an electric car. 6. We seperate out recycleable material from our foreclosure rehabs and listings 7. We use paint from the County Dump in painting some of our rehabs and listings. 8. We sometimes conduct office conference calls rather than meeting at the office all of the time. Again, we are trying to make a difference a little at a time.  Any additional commments or suggestions would be greatly appreciated. If any of you would like to use our ideas, please feel free to do so as every little bit helps. Chris Mcclatchey Housing Market Realty Christopher McClatchey (THM Investments, LLC) Sun, 25 Jan 2009 10:09:56 -0800 https://activerain.com/blogsview/899748/housing-market-realty-going-green--owner-drive-veggie-car https://activerain.com/blogsview/896706/looking-for-loan-50--ltv-secured-by-1st-mortage My investment company (THM Investments, LLC) just put a corporate owned property under contract.  It is a 3 bd, 2 ba, 1300 sq. ft. block home is West Cocoa, Florida. The ARV (After Repair Value) on the property is between 90,000 and 100,000.  We are looking for a loan, secured by a 1st mortgage, of $45,000.00.  The rate and terms are negotiable but would be willing to pay 8-12% depending on the balloon period. This would be great for someone's Self-Directed IRA or someone who is fed up with the Stock Market.  If interested in more details, please feel free to contact me. Also, if you are not interested in this particular deal, but would like us to keep you informed of other investment opportunities, such as joint ventures or % ownership, please feel free to contact me as well. Chris McClatchey THM Investments, LLC 321.632.9998 Christopher McClatchey (THM Investments, LLC) Fri, 23 Jan 2009 07:14:59 -0800 https://activerain.com/blogsview/896706/looking-for-loan-50--ltv-secured-by-1st-mortage https://activerain.com/blogsview/896685/looking-for-loan-at-50--ltv-secured-by-1st-mortgage My investment company (THM Investments, LLC) just put a corporate owned property under contract.  It is a 3 bd, 2 ba, 1300 sq. ft. block home is West Cocoa, Florida. The ARV (After Repair Value) on the property is between 90,000 and 100,000.  We are looking for a loan, secured by a 1st mortgage, of $45,000.00.  The rate and terms are negotiable but would be willing to pay 8-12% depending on the balloon period. This would be great for someone's Self-Directed IRA or someone who is fed up with the Stock Market.  If interested in more details, please feel free to contact me. Also, if you are not interested in this particular deal, but would like us to keep you informed of other investment opportunities, such as joint ventures or % ownership, please feel free to contact me as well. Chris McClatchey THM Investments, LLC 321.632.9998 Christopher McClatchey (THM Investments, LLC) Fri, 23 Jan 2009 07:06:23 -0800 https://activerain.com/blogsview/896685/looking-for-loan-at-50--ltv-secured-by-1st-mortgage https://activerain.com/blogsview/895511/2nd-annual-billboard-sit-in-event-to-raise-money-for-habitat-for-humanity Housing Market Realty of Cocoa, Florida is preparing for its 2nd annual Billboard Sit-In Event this  Spring.  Last years event was an overwhelming success.  Three (3) men, Chris McClatchey, Charles Fischer and Devin Lesnee lived on a billboard for 3 days while raising money for habitat for humanity.  This money was committed to building affordable housing in the Cocoa, Florida area.  This years event is expected to be expanded as the company has grown over the last year.  If you would like to participate, sponsor or donate, please don't hesitate to contact us. Christopher McClatchey (THM Investments, LLC) Thu, 22 Jan 2009 12:36:51 -0800 https://activerain.com/blogsview/895511/2nd-annual-billboard-sit-in-event-to-raise-money-for-habitat-for-humanity