Great Opportunities in Real Estate

By
Real Estate Broker/Owner with Buyers' Choice Realty

This market presents a great opportunity to use your imagination and your honed skills!  The weak ones become the casualties; the smart ones will advance by leaps and bounds...  You just have to open your eyes and see the possibilities...  Here are some BIG IDEAS:

Fractional ownership on vacation property.   For a quick tutorial on the whole concept of Fractional ownership, please check out: http://www.ourbeachhome.com/.  I will write more on the subject in the future, since I have been immersed in research on it for several months now.  It certainly is a great vehicle for Vacation destinations, and other second home locations.  It is not a time share, it is actual deeded ownership divided into 13 shares.  Each owner gets a week during each season, and the weeks rotate every year.  That way within 13 years you have access to all 365 days.    

TIC's on vacation property   The tenancy in common vehicle is ideal for vacation spots.  You put together an up front agreement on how everything is to be managed (example: if one partner want out, he needs to offer "first right of refusal" to the other members).  An attorney can draft up that simple agreement.  You can garner reservations, and when you have enough "owners" (2,3,4) you go to contract, obtain a loan involving every one of the owners.  You can also consider doing an LLC.  There are many ways to wrap it all up.  The idea is to dilute the responsibility and cost and make it more palatable for the Buyers.  It's also a great way for sellers to keep some interest in the property, while getting help with carrying it.  Present it to your sellers.  Many don't even know they have that option.

Owner Financing   I always do a net sheet when I take a listing.  It's surprising how many people have their homes paid off.   You should show them the advantages of "owner financing".  They don't have to carry for 30 years.  The loan can be amortized over 30, all due in 2 or 3 years, or whatever time frame the Buyers need in order to get their ducks in a row, and obtain a conventional loan.

Lease with an option to buy   The Sellers get to move on, the Buyers get to move in, in spite of not being able to obtain a loan at the moment.  The Buyers work on their credit issues, and perform within the option period.  Everyone wins, and you are the Hero. 

Land Contract of Sale   Instead of giving the Buyer a deed to the property, the Seller gives a contract to purchase.  When the Buyer comes up with the money, the sale is consummated and the deed is issued.   An attorney drafts the Contract of Sale, the agent only drafts the contract to purchase, specifying the terms.  I've seen it done on property encumbered by a mortgage, even though the note has a due on sale clause.  I'm not sure what the official dictum is on that.  I'm guessing the assumption is that if both Buyer and Seller are aware and accept the risk, it should be ok.  I'm not sure; so please feel free to inform me.  I just know that it's being done by reputable attorneys.

Referrals   It's amazing how much money you can make from referrals, if you become sensitive to that stream of income.  Let your clients know that you can help them locate the best agent for them, whether they need to sell outside your area of service, or are interested in buying, or investing in a Resort location.  I pay a 25% referral fee right at closing, and Myrtle Beach is on lots of baby boomers vacation investment wish list.  Send them my way!  You know I will take very good care of them, and be a good representation for you.  Whenever I refer clients, I actually do my homework.  If it's in an area where I don't have an agent I already know is great, I will do "due diligence" and interview several agents.  I look for experience, designations, good moral values, and a good attitude.   Make sure you do all the paperwork up front showing the terms of the Referral agreement and get it signed by the Broker in Charge of the company you refer the client to.

Get into the Property Management Business   No kidding!  We did.  Our clients needed it, so we jumped in.  I will post a glorious idea on a new concept regarding this area in a future blog.  It is a fantastic idea, perfect for our market right now.  It will benefit everyone, and you will get nothing but kudos.

Foreclosure Remediation - Let's do this "pro bono".  Consider it a long term investment in your clients and community.

I have some other ideas for this market.   Stay tuned!

Myrtle Beach Homes by Mirela Monte, GRI, ABR, BIC, SC, NC

Join The Optimist Group!                                             www.MyrtleBeachHomes.us

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Re-Blogged 1 time:

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  1. Jean Terry 03/18/2009 12:47 AM
Topic:
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Location:
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Tags:
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Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

If I left anything out (I might have, on purpose...  to test you here...), please add on to this list!

May 14, 2008 05:38 PM #1
Rainer
61,324
Lisa Lambert
The Law Offices of Elisabeth A. Lambert - Fresno, CA
Esq. 1031 Exchange Expert

Mirela:

Thanks for the additional comment on my blog. It's been one of those weeks. Loved this post. Where do you get those great cartoons? But I did post today. Thanks for the encouragement.

May 14, 2008 05:49 PM #2
Rainer
12,820
Chris Lambos
Poplar Hill Realty - Bellevue, TN

Mirela:  I love your blogs...I want to respond to all of them, but it's ZZZZ time in Nashville town.

Of course, our markets are different, but I must say that I cringe at the thought of getting into property management. I'm no slacker by any means, but I managed a few  condos once upon a time and the amount of work (show, show, show, just to be told no, no, no) and all of the annoying phone calls in the wee hours of the morning for maintenance issues... just wasn't worth the 10% I was being paid...I know the demand for rentals has increased, but have all the headaches decreased?

Maybe I should move to Myrtle Beach.

If you keep writing, I'll keep reading! Thanks!

-Chris Lambos

May 14, 2008 06:02 PM #3
Ambassador
530,653
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

I don't deal with it either.  At the moment, my assistant and several of my agents are dealing with it.  Just get yourself a property manager under you, so he/she can do the grunt work and you get the sales opportunities out of it! 

Many of the potential renters can actually buy.   Many of the owners will sell...  See where I'm going with this?

May 14, 2008 06:07 PM #4
Ambassador
530,653
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

I just had a great idea I'm implementing right now.  If it works I'll blog about it.  It's quite unique and revolutionary.  Just keep reading my blogs...  I'll talk about it in a few weeks/months. 

I am so honored that you are enjoying my blogs!  Are you subscribed to my blog yet? 

May 14, 2008 06:09 PM #5
Rainer
12,820
Chris Lambos
Poplar Hill Realty - Bellevue, TN

Now I am!

May 14, 2008 06:15 PM #6
Rainer
35,324
Dan Woodworth
The Connection - Garden City, ID
Encouraging Communicator

Hi Mirela,

You have thought through some excellent opportunities!

You remind me of a treasure hunter finding valuable gems!

May 15, 2008 02:50 AM #7
Ambassador
530,653
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Dan: Thank you so very much for those kind words!  Much appreciated, my friend!

Chris:   Thinking outside the box in this market will keep us viable...

 

 

May 15, 2008 10:08 AM #8
Ambassador
530,653
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Michael:  Coming from you, that's a great honor!  Thank you!

May 15, 2008 04:54 PM #9
Rainer
184,764
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate

Great post my friend.  I started real estate in 1980 and all we had were owner-financed land sales contracts, all-inclusive deeds of trusts, wrap-around contracts, etc.  Since the market changed over a year ago these tools have come in very handy for me and I feel blessed I had a broker that taught this creative financing to me.  Younger Realtors that started in the last few years are dropping like flies and say they cannot make it in this tough market.  I am blessed because I have already closed in excess of 3 million dolloars in real estate in 2008 and over a third of my transactions were due to creative financing. I also invest in real estate by using all-inclusive deeds of trusts to secure homes where the seller is facing foreclosure.  I purchase the homes before they go into foreclosure by giving the seller $1,000 and paying off all their back payments.  They deed the home to me via the all-inclusive deed of trust and I can then resell the property.  What I basically do is secure the home before it goes to foreclosure and trustee sale. Creativity is the name of the game and you hit the nail right on the head my friend.  I hope you are having a great weekend.

May 18, 2008 06:06 AM #10
Rainmaker
254,482
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

Good ideas.  I really do not like time shares or vacation homes, fractional or otherwise as investments.  It always seems better to just go on vacation and buy rentals close to home or invest in more traditionla vehicles.

May 18, 2008 06:56 AM #11
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Mirela Monte

Myrtle Beach Real Estate
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