Investing 101: Be Ready to Walk

This is a great market to invest in.  Prices are at all time lows, some are even seeing value increases, which means more and more folks are looking to invest in real estate again.  Many investors are first time investors.  Investing in real estate is a little different that buying home. Over the next few months, I will explore some of pitfalls I see novice investors make all the time.

This month I wanted to touch on "Be Prepared to Walk."

When you make an offer to purchase a home there are often emotions that factor into that offer.  When investing in real estate, emotions are present, but numbers and analysis need to play a bigger role.  Often investors "like" a property and that is what makes investing fun.  However you need to make sure you get the deal you want or you need to be prepared to walk away from the property.  

Be sure you do your due diligence: What is the rent rate for the area?  Have you factored in vacancies and repair costs?  Are there current tenants?  What rental terms are they currently on?  What is going on around the property that could affect your ability to find tenants?  How long will it be before you recoup your investment and are making profit?

If the numbers work, then make sure the deal you negotiate supports the investment's purpose. For instance, some people invest to increase their monthly income, some people invest to ultimately sell in 5-10 years and make a good equity profit.  Know your purpose and make sure the deal you negotiate reflects the ultimate purpose.  If it doesn't, then don't be so emotionally tied to the property that you can't walk.

This being said, don't make investment offers with a take it or leave it attitude.  Remember, true of any negotiation, successful deals make both the buyer and seller happy.  Maybe the seller is offering you a deal that has a positive margin but the margin isn't quite as big as you would like.  Is it big enough to still make the purchase worthwhile?  Giving some on one deal can sometimes lead to better deals down the road.  Perhaps the seller has a quad to sell a few years later with great margins and had such great experience selling to you that you are the first investor they call when selling their quad.

Investing in real estate is fun and can be lucrative, but use caution, do your homework, be fair to the other party, and know when a deal just doesn't work.

The Mortgage Forgiveness Debt Relief Act

The Mortgage Forgiveness Debt Relief Act of 2007 is set to expire at the end of this year.  The Act allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.  The Act also applies to debt forgiven in a short sale on the primary residence.

This exclusion is a big incentive for sellers who have short sold over the past several years.  Without the forgiveness, sellers actually have to pay income tax on the debt. Many sellers cannot afford this and it pushes them into foreclosure instead.

The ability of sellers to short sell instead of go into foreclosure has helped many of our local neighborhoods not lose more value than they have over the past few years.

Contact your local Senators and Representatives and tell them that this act needs to be extended.

• U.S. House of Representatives: Resolution 4336 and Resolution 4202
• Senate: Senate Bill 2250

Springfield Turkey Bowl!

The TURKEY BOWL is almost here! 1909 era (flag) co-ed football, a hot breakfast, open to all men, women, & teens, no talent needed, Thanksgiving morning, 9am-11am. A neighborhood tradition, check out the details - - -http://myspringfield.org/event/4/ufg9etjfuepjah6gvok94b7cmg

Enjoying the Outdoors Mosquito Free!

It's HOT in Jacksonville!  As we head into September it is probably only going to get more hot and more wet!  That means mosquitos!  Mosquitos makes enjoying the summer so hard in our area.  Here is a great mosquito trap that is easy to make at home:

Cut the top (just before the start of the cone) off a 2 liter bottle. Invert the cone and place it inside the straight part of the bottle. Glue the two pieces together, using a glue or silicon. Add 1 tsp yeast and 1/2 cup sugar to some luke warm water, and pour the mixture into the bottle. Mosquitoes are attracted to the carbon dioxide that you exhale. The yeast feeds off the sugar and emits the same gas, so the mosquito enters the bottle, thinking she will find food there.

Short Sale VS Foreclosure: 10 Common Myths

This is such a great article and so pertinent to today's market, I had to share

Some Cool Stuff Happening Intown Jacksonville

Go Skate Day in Hemming Plaza 

(A Benefit for the KONA School)

Thursday June 21 5pm-9pm

In Hemming Plaza

PB&J and KONA Skate Park are teaming up to bring Go Skate Day to Hemming Plaza in downtown Jacksonville, raising awareness and funds for the Kona School www.konaschool.org

Join us for an evening of skate competitions by professional skaters, roller derby girls, bands, an art show, chopper show, antique car show, and so much more related to extreme sports. 

This is the first time that a city has granted permission to skate its urban areas for Go Skate Day. Be a part of history.

PRS/Bold City Beer Run 5K Series

Thursday June 28 at 7pm

This is a 5km race series like no other in Jax. This series will be the last Thursday every month starting with the first event on Thursday June 28th, 2012. 

The concept is easy, while there will be no chip timing everyone will be timed. We will have age group awards for first place male and female in the 21-29, 30-39, 40-49 with each winner getting a unique beer mug.

The overall male and female winner of the race will each win "the Bold Jug" filled with one of Bold City's Finest.

Every participant pays just $5.00 to enter which includes the race and a cold beverage at race end. Food will be available to purchase and we hope many of you will stay around after your free beer and eat, drink, and get merry!

Unique race shirts will be available for purchase, and I know you all will want to get one of these, for just $25.00. Shirt pictures will be shared on facebook after printing and before the first race.

Invite anyone you chose. This is going to be a fun event and we hope to make this a race series which will continue for a long time.

You can sign up and buy your t-shirt before the race at the link below:

http://www.jax365.com/prs-bold-city-beer-run-5k2

Home Buying Returning to a More "Traditional" Experience

In many local neighborhoods, real estate markets are transitioning from historic low's to more traditional markets. Home buyers are left wondering how to navigate this emerging more traditional market and if they still have any advantages. The answer is YES - in many markets the buyers still have advantages, but they need to keep some guidelines in mind. Deals can be found but playing hardball with low ball offers that are out of sync with local comparable sales can back fire when multiple offers come in on single properties.

Here are some tips to remember:

1. Know the local markets. Work with an agent that has localized market knowledge and can share that with you. Ask your agent to pull comparable sales and pending listings so that you get a feel for where the market is at. If the market is out of your price range ask your agent to suggest another neighborhood that may have similar qualities you are looking for but maybe more in the range you are comfortable with. This is a much better way to go than trying to low ball sellers in market you really can't afford.

2. Get familiar with your credit report. Work with a loan officer and get pre-approved before even starting the home search - this will cut out many headaches down the road. Most sellers prefer buyers be pre-approved before even looking at their homes and any home you fall in love with and want to make an offer on will need to have a pre-approval letter to submit with the offer. It would be a shame to find the home you love and have to wait a few days to get pre-approved and in the meantime someone else puts the house under contract. Be ready to act and pre-approval with a loan officer really is the first step.

3. Short sales, foreclosures, and rent-to-own should not be ruled out as part of a comprehensive home search. They may take more time and require more financial obligation on the buyers part, but many homes fall into these categories, and ruling them out will narrow your search exponentially.

4. Several local markets are seeing multiple offers on properties, especially in Springfield. Be prepared. You may have to come in over asking price. Cash offers are sometimes seen more favorably than financed offers. This is why knowing your financial situation in advance is helpful. Some local markets, such are Riverside, are seeing less activity right now so multiple offers may not be an issue. Again, know your local market.

5. Try to check your emotions at the door. Hard to do, I know. But this is really a competitive market and you may have to put several offers in on several properties before you are able to come to terms with a seller. The home buying process can take 6 months to a year in this climate.

6. Buyers should be sure to have any offers contingent on a satisfactory home inspection and Wood Destroying Organism (WDO) inspection. Also, be sure to ask for a Seller's Disclosure when you submit your offer.

In summary: there are some great deals to be had, but saavy buyers will be familiar with their local market and be prepared to act accordingly and aggressively. Traffic is up and prices are stabilizing and increasing in many markets so bottomline: be prepared.

5 Tips for Choosing a Realtor

After 8 years of working in real estate, I've worked with some great agents and some not-so-great agents. Here are 5 tips for finding an agent that will help you navigate your home purchase, instead of causing you headaches.

1. Ask around. The first place to start looking for a buyer's agent is by asking friends and family. Did they like their agent? How was their experience? Recommendations are a good place to start, but don't feel pressured to use a referral either. Go through the rest of the tips before deciding.

2. Check credentials. Is their license current or are there any complaints registered about them? Do they have advanced accreditation, such as ABR (Accredited Buyer's Representative) or CRS (Certified Residential Specialist), or are they members of their local real estate board or the National Association of REALTORS®? Designations aren't everything, but they do show commitment to the profession. Don't hesitate to ask to see their sales volume or references. An agent who is active and recommended must be doing something right.

3. Have a trial period. If he or she doesn't mention it first, ask to sign a buyer's contract for the day so that you can see how you work together. Think of it as dating — you didn't marry the first person who asked you to dinner. Did the agent understand what you were looking for and is that represented in the day's showings? They'll get paid if you decide to purchase any of the properties they show you, and you're not stuck with them if you can't stand to be in the same car by the end of the day.

4. Trust your gut. If after your day out with your potential agent, something doesn't feel right, listen to your intuition. You should like your agent and know that they have your best interests in mind. You could be working with them for a year or more, so if there's a personality clash or a trust issue, find someone else.

5. Sign a contract. A buyer representative contract protects both you and your agent. If you don't have a contract, your real estate agent is legally a facilitator of the transaction and doesn't represent your interests. The buyer fee is always paid by the seller, anyway, so it doesn't cost you any money to use a buyer's agent.

Hopefully these tips help your real estate transaction go smoothly. Happy house hunting!


How did you find your real estate agent? What tips would you add?

Simple Inexpensive Touches to Make Your Home Stand Out on the Market

If you are trying to sell your home in this market then you know the competition is tough. There are short sales and foreclosures galore - all competing with you for a handful of buyers.

What can you do to stand out? Buyers in this market are looking for the best deal. That means your property really has to look its best to attract buyers who would be willing to pay a little more because they feel like they are really getting a better product.

Here are some inexpensive things you can do to make your property stand out:

1. Lighting. Make sure rooms are well lit. Get higher wattage bulbs if possible. Make sure all the lights work. I can't tell you how many times I walk into a home with a buyer and the lights don't work. Gloomy spaces don't make buyers want to hang around.

2. De-clutter. Get rid othe clutter and personal trinkets. Remember you are trying to sell the house. People need to see the space and feel themselves in that space. If a space has too much stuff in it or has family pictures that make it seem like someone else's space, they can't picture themselves in the home.

3. Freshen up the paint. Neutral, natural tones. This is especially true in kids rooms. Don't show the house with kids colors in the kids rooms. Buyers will not pay top dollar for a house Also, take a look at your trim - does it need touching up too. Also, look at the exterior. Does the siding need freshening up. What about the front door? Does it stand out and look inviting? These are small paint jobs that can make the home present really well.

4. Smells. If you have pets, especially. Invest in some room deodorizers. Bueyrs want to feel like a home is fresh, not stale. Try to air your home out some as we enter spring. Also, if your house is going to be shown that day, try not to cook anything whose smell may linger during the showing.