Activity Increasing

By
Managing Real Estate Broker with Eyemark Realty, Inc. BK669286

Since the beginning of January 2009 I have had increasing activity from potential buyers in the Gainesville, Florida area.  There has been more interest in all kinds of real estate properties.  I have had calls from local people, from other cities and states, and from several Asian countries. 

I have had more requests to show single-family homes, vacant land, and industrial properties.  It appears to be an across the board increase in prospects.

However, this increased potential buyer activity, although very welcome, has not resulted in an increase in closings.  Of course, closings are what really count.  If you look at it as a "numbers game" as many people do, then eventually the additional activity should result in additional closings.  But I look at real estate as a "relationships game" where the additional interaction is what eventually brings addtional closings.

I have determined that there are 2 reasons why the increased activity hasn't resulted in more closings.  Firstly, I have had numerous buyers and sellers who would not agree to a mutually satisfactory price.  The buyers are seeking super low bargain prices and the sellers believe the market will soon rebound bigtime.  Sooner or later both sides will have to face reality and meet in the middle, but that hasn't happened yet.

Secondly, buyers who in the recent past would have easily qualified for a mortgage loan are now failing to meet the latest standards.  Unless all three legs of the lending stool are superior - very high credit score, very large down payment, and sufficiently high income, the loan won't be approved.  Buyers almost have to prove they don't need the loan in order to get it. 

I have visited many banks, large and small, recently during working hours where most of the loan officers were sitting around in one office with nothing to do but shoot the breeze.  So, if the banks won't make the loans, I'm convinced that there are others who will. 

I have resorted to trying to connect potential buyers with private individuals who have money they need to put to work.  With time deposits paying almost nothing in interest, I am seeking people who might want a 6 or 7 percent return on investment.   I am convinced that there are private lenders who will take a risk lending to buyers who will put a 25% - 45% down payment on a home with a 10 - 15 year loan.

If you fit into this category, you have $100,000 to $200,000 that is earning almost nothing in a Certificate of Deposit, you can afford to tie it up for 10 -15 years at 6% - 7%, don't mind the risk of possibly having to foreclose on a home (there's always a risk no matter how well the borrower is screened), then let's talk.

Mark Cohen, Broker
Eyemark Realty
Gainesville, Florida
mark@eyemarkrealty.com  

Posted by

Mark Cohen, Realtor-Owner-Broker
Eyemark Realty, Inc.
Gainesville, Florida USA

Comments (7)

Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

What a great idea-I will read your post to see if you have any investors willing to help.

Feb 22, 2009 03:17 AM
Anonymous
Claudia

Mark:

I'm not surprised you have increased activity in Florida. I heard on the news last night in California, about a homeowner who lost her home that she paid over $300k for, & it is now selling for $50k.   Wow

 

Feb 22, 2009 03:25 AM
#2
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

It's up to us to create the means and the how. . to connect buyers and sellers. . .seems like you are on your way CONGRATS!

Feb 22, 2009 03:31 AM
Emmett Bozard
House Hunter Realty The Palmetto Group - Orangeburg, SC

I was in Orlando this past November 2008. I was surprised to see a cable channel DEDICATED to advertising an auction of foreclosed homes. Shocking ! So i commend you for starting SOMETHING. Most of us are sitting on our hands talking about how bad things are, it's refreshing to see someone grabbing a paddle and starting to row. thanks friend !

Come visit us at www.PalmettoAgents.com

Feb 22, 2009 03:45 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Hi Mark

The market has picked up in Florida and the first quarter of 2009 will be the best first quarter since 2006.

Good luck and success

Lou Ludwig

Feb 22, 2009 04:03 AM
Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

Your Words:  "I have determined that there are 2 reasons why the increased activity hasn't resulted in more closings.  Firstly, I have had numerous buyers and sellers who would not agree to a mutually satisfactory price.  The buyers are seeking super low bargain prices and the sellers believe the market will soon rebound bigtime."

Ain't that the truth !!!   Great Post!

Feb 22, 2009 04:34 AM
Mark Cohen
Eyemark Realty, Inc. - Gainesville, FL

Thanks to all of you for your nice comments.  As of now I have a potential out-of-state investor who might finance one of my buyers.  There are many details to work out.  We are trying for a Loan-to-Value of 60% at about 7% interest amortized for 30 years with a 6 year balloon.

The buyer (borrower) has to decide if they are willing to pay the higher interest and the lender has to decide if they are willing to take the risk of maybe having to foreclose down the road.  Decisions, decisions.  Don't know if this will work yet.

As I said in the original post, I'm going to try to put more buyers and private lenders together as I find them.  Just word of mouth so far.  Maybe a private mortgage service down the road if the banks don't start lending soon.  Help is always appreciated. 

Mark Cohen, Broker
Eyemark Realty
Gainesville, Florida
mark@eyemarkrealty.com

Feb 23, 2009 12:29 PM