HomeRun Homes Blog

An Updated Kitchen Equals An Easier Home Sale

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 13 Feb 2012 10:11:47 PST

Good Morning/Afternoon/Evening (depending on where you are!),

   "Kitchens Sell Houses". I'm sure you have heard this many times. It is a timeless factor when talking about selling a home.

   The kitchen is "the heart of a home", and "the stomach is the way to the heart", and the kitchen is where we "spend much of our time and most of that is with our families", writes Carla Hill for the RealtyTimes in her aptly named article, "Kitchens Sell a House". Hill says that kitchens are "integral to entertaining and in today's age of open floor plans, they're a focal piece of many family rooms".

   Due to the fact that a kitchen is the showpiece of the house and is seen every day by you and your guests, Hill says that kitchens play such an "important role in the buying and selling process", and that "buyers want homes with up-to-date kitchens".

   So if you need updates to your kitchen, where do you start?

   Kitchens are expensive and need a lot of time, as well as skills, to do the job right. With the "complicated array of flooring, tiling, cabinets, and counters", Hill says, "most buyers want a kitchen that is ready to use the day they move in".

   What to buyers want in a kitchen?

   Hill suggests that you do your homework, and to "Scope out the competition" via local open houses or MLS listings. Look at the wood on the cabinets. Is it dark? How about the counters? Are the appliances stainless steel? Are there any "add-ons like dishwashers, wine-coolers, and trash compactors"?

   There are an endless amount of changes you could potentially make, but Hill cautions not to "become overwhelmed". She adds that you might be able to make minor changes, such as a warm, neutral tome of paint, removing clutter, updating appliances. adding a lower-end or a faux granite counter. Hill also suggests that you might even "save a bundle by doing much of the work yourself."

   "The bottom line is a kitchen can sell a home", says Hill, and suggests that you do some research on what your kitchen needs to "make it competitive with area listings."

   Have you updated your kitchen? Did you research it first? What did your updates entail? Did it help you sell your home?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #HomeSale #kitchen #kitchenremodel #updatedkitchen #sellinghome #homebuyer #cabinet #granitecounter #openhouse #MLSlisting

Options For The Underwater Homeowner

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Fri, 17 Feb 2012 08:15:36 PST

Good Afternoon, and Welcome Back, one and all!

   If you happened to catch my last post, "Strategic Default To Stop The Bleeding", we discussed the "taboo" topic of walking away from your Home Loan (and thus, your home). Of course, if you have some equity in your home, a Strategic Default would not make sense, therefore, the discussion was within the context of "Underwater Homeowners" (those homeowners that owe more on their Home Loan that the Home is actually worth).

   In a quasi-sequel to the above-mentioned post, I cannot stress just how major a decision it is to walk away from your home, and you (only you), would need to take a look at all of the factors (financially, legally, etc). What I will say is from some research done by Tara-Nicholle Nelson in her Inman.com story, "6 ways to save your underwater home", Nelson said that she noticed that "most upside-down homeowners don't really want to default on their mortgages". If that is the case, what alternatives do you have vs. walking away?

   At least 6 alternatives.

   Nelson laid out 6 alternatives, which include:
     * Get Rid of credit card balances and your debts.
     * Get a second job ("It won't last forever", says Nelson)
     * Start a side business/Monetize your spare time.
     * Rent out a room/rooms in your home.
     * Apply for loan modification and Government programs.
     * Short-sell your home with a local agent, attorney, etc.

   One other alternative is to keep your eyes and ears open. For example, there was a recent Bank of America special event that invited struggling BOA customers to meet in person with "home retention specialists", in a story from Leslie Berkman, titled, "Borrowers may meet with retention specialists". Some of the options for these customers were home loan modifications, among other alternatives.

   In summary, Nelson says that fortunately, your options for avoiding a foreclosure "are not so limited as they might seem at first glance". However, if you at that point of making this big decision, she highly suggests that you "consult with a reputable real estate broker, mortgage broker, local attorney and local tax professional -- at minimum".

   Are there any other alternatives that you can think of that were not included here. Please share it with your fellow readers.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #StrategicDefault #HomeLoan #underwaterhome #loanmodification #BOA #avoidforeclosure #retentionspecialist #realeestatebroker #mortgagebroker

Strategic Default To Stop The Bleeding

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Fri, 03 Feb 2012 10:31:40 PST

Happy Friday,
   Hope it's been a great week for you.

   The thought of picking up and leaving your home behind, while still owing money on it, might seem like an extreme option, but for some, it might be their only option.

   An Arizona couple with an "underwater mortgage" was recently profiled in a story on Yahoo Finance ("What Happens When You Walk Away From Your Home?" by Chris Taylor). The couple's home was appraised at nearly $400,000, but with the market downturn, they were told they'd be "lucky to get $200,000 for it", so with their $260,000 loan, they were substantially under water. The couple was faced with a tough decision; make the payments on their new home plus the payments on this older one, or stop paying the mortgage on the older one.

   Strategic Default.

   "I constantly get the saddest e-mails from people saying, 'I've exhausted all my life savings, my retirement is gone, and now I have to default,'" said Jon Maddux, CEO of YouWalkAway.com, in a comment included in Taylors' article. As applied to these particular Arizona couple, they had to "wrestle with it", with the reasoning that they work so hard and so long to build strong credit, with an element of pride as a factor, as well. Ultimately, they looked at the numbers and realized that just cannot continue paying both loans.

   With some numbers Taylor provided from CoreLogic, almost 11 million homes are underwater, with 1.5 million of them already in the foreclosure process (as per RealtyTrac). These numbers are due to spike, with a far-reaching impact on housing prices and the market in general. What's an underwater homeowner to do?

   Taylor lists a few things to keep in mind, for example, "companies default on their obligations when it makes financial sense for them to do so, via the bankruptcy process", and that "It's not personal; it's business". As for penalties, your Credit Score will bear the brunt, and a few years will need to go by to start removing the bruises and the blemishes.

   What else should you keep in mind?

   Taylor suggests that a Strategic Default should be a "last resort", and you should consider refinancing, as well as government programs "designed to keep you in your home". Your location is key, since each State "has its own rules and regulations regarding foreclosures". You should also talk to a professional about the implications, including tax implications, before deciding.

   "Strategic default isn't a decision to be taken lightly, of course", Taylor says, and adds that it's not desirable, "but not the end of the world either".

   Has a Strategic Default been an option you have considered at some point?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #Arizona #underwatermortgage #StrategicDefault #strongcredit #foreclosureprocess #housingprices #homeowner #bankruptcy #refinancing #governmentprograms

Use A Mortgage, Rent It, Or Use Other Options

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 31 Jan 2012 12:11:32 PST

Hi Folks,
   Thanks for joining me here. I am so glad to write for you! OK, I promise not to corny.

   Over and over we hear that it is tough to get a mortgage. If you can't get a mortgage, what are some other options. What if you want a home, but don't want a mortgage?

   "It’s getting more and more difficult to qualify for a traditional mortgage", writes CA Hagy in an article titled, "Three Alternatives to a Traditional Mortgage". What are some reasons why you might be declined? Hagy names a few possible reasons, i.e. a foreclosure in your past, inability to prove a "decent cash flow", and self employment resulting in "irregular income?".

   If you fall into one of the categories mentioned above, you're not alone. Hady points out a few mortgage alternatives that might help you meet your goal(s).

   One option is to go the route of "Seller Financing", in which the "current homeowner offers to sell you the house", and you make payments to them but "they continue to hold the note until you have paid off the home". Hagy says that for a homeowner that cannot find buyers due to the tight lending situation. Seller Financing may be a "feasible option". The seller basically becomes the lender, and an agreement is drawn up with the full details of the transaction.

   "Borrowing from a Self-Directed IRA", writes Nagy, is "typically designed for investors who want to buy a home but don’t have the upfront cash to make it happen". As defined in the article by Nagy, "A self-directed IRA is somewhat like a Roth IRA or a traditional IRA", however, it's more flexible, For example, the IRA can invest in real estate, etc, but the "main catch", as Nagy calls it, that the IRS "does not allow you to use your own account or the account of a relative or business partner", thus, you "cannot use your own self-directed IRA to purchase a home. But you can use the money from another person’s self-directed IRA if they are not related to you". Confused? Nagy says that there are many investors "who will allow buyers to use money from their self-directed IRAs as an investment deal", and the investor would "own an interest in the property", or, the investor can simply "loan the money like a regular mortgage".

   The other option, "Leasing or Rent to Own", is something you might be quite familiar with, especially if you are a frequent visitor on our website. In a nutshell, the buyer can rent a home before actually purchasing it. The rent to own arrangement, which is also referred to as lease to buy, lease to own or a lease option, is one in which the buyer has an option to buy the home at a specified price within a specified period of time. This option would also benefit a seller unable to find qualified buyers, and would certainly benefit buyers who need time to save for a down payment and to "improve their credit score", says Hagy.

   Let's stay on the topic of Renting and Owning for a moment.

   "Sometimes it is better to rent than to own", writes Leah Ingram, in her article, "Rent or Own a Home?", who admits that "in today's real estate market it's not surprising if people are a bit gun shy about buying or owning a home." and she provides 3 tips to help you decide on renting vs buying.

   Ask your self; Do you have documented income, a good credit history, and a steady income? These are some important items to have in order to buy a home, in the first of three tips, courtesy of Jessica Edwards of Coldwell Banker Real Estate, within the article from Ingram. Edwards adds that if your income is unreliable, "getting tied down to a mortgage may not make the most sense financially".

   The next tip is to make a "timeline" of how long you will stay in the home; if it's just for a couple of years, you are "less likely to see a significant financial return on your investment", says Edwards, and says that if you stay under 2 years and sell it, "you may find yourself having to pay capital gains taxes".

   "Crunch the numbers", says Edwards, in her third tip. Add up the mortgage payments real estate taxes, insurance payments, maintenance costs, etc. and compare these costs of ownership vs. the cost of renting (monthly rent and average utilities).

   Ingram says that "buying doesn't always make sense and neither does renting", and suggests speaking with a "real estate expert, your tax person, and a financial professional" before deciding to rent versus buy a home.

What are your thoughts? We'd love to hear.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #traditionalmortgage #foreclosure #SellerFinancing #homeowner #SelfDirectedIRA #IRS #Tax #RealEstate #RenttoOwn #leasetobuy #leasetoown #leaseoption #capitalgains

Buying a Home: Benefits, Mistakes, and Tips

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Wed, 25 Jan 2012 11:32:33 PST

Hello All,
   Glad to have you back with me.

   Quick Question: Are you looking to buy a home? Do you own a Home? Do you own a few homes? Do you sell homes? If you answered "yes" to any of these, this Blog post could be a huge help in meeting your goals.

   We all know the "American Dream" about homeownership, and the pride that comes along with it. As Jonathan Slappey writes in his story, "Top 5 Reasons to Buy a Home in 2012", this dream is "a very feasible aspiration for 2012."

   One of the "reasons" that Slappey lists was Appreciation, and in combination with the low current prices and historically low mortgage rates, he writes that you can "almost ensure your home’s appreciation in the future" (He adds that "many foreclosed homes are available for a fraction of the original cost.").

   Before jumping in, potential homebuyers need to plan, and then plan again, and then again.

   "Property insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills are some of the costs first-time homebuyers tend to overlook.", writes Polyana Da Costa in her story titled, "Common mistakes first-time homebuyers make". Taking one step back, Da Costa writes that "Home buying doesn't begin with home searching. It begins with a mortgage prequalification". Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Il, was quoted in Da Costa's story, in which he said that, "You get preapproved, and then you find a home". so that you'll "financial decision versus an emotional decision". Sound advice.

   Now, about those expenses Da Costa listed above; If a homebuyer spend their entire savings for the down payment, closing, etc, then what happens? Conarchy says that this is "one of the biggest mistakes first-time homebuyers make". Additionally, in the same story, Da Costa warns that "Any new loans on your credit report can jeopardize the closing", since lenders pull credit reports prior to the closing to "make sure the borrower's financial situation has not changed since the loan was approved".

   Getting back on course, some other reasons Slappey listed as positives for buying a home this year were tax-related. "Property Tax Deductions" are a major benefit, as Slappey writes that "real estate property taxes for a vacation home and first home are fully deductible". Another reason, "Preferential Tax Treatment", which he says that since Capital Assets are given preferential tax treatment, this would benefit you if you own the home over a year and you "receive more profit than the allowable exclusion after the sale of your home" (the profit will be considered a Capital Asset).

   On the topic of Taxes, the average first-time homebuyer may not be aware of the ins and outs, since they might be buy-and-hold for many years, a real estate investor would be more aware of tax incentives. In the story, "Tax incentives and tax deductions for real estate", Iylce Glink and Samuel Tamkin write that "Real estate is one of the few businesses in which you can accumulate wealth, buy and sell properties repeatedly and never pay any federal income taxes if you follow certain rules". They add that by using certain depreciation rules, "you can make money from renting properties and create a scenario where you might make a great amount of income yearly but pay no federal income taxes on that income". This, however, is far outside the scope of this particular Blog post, albeit quite interesting.

   "Equity Building", which Slappey calls a "new trend being used by some homeowners", basically means that homeowners can/do add money to their monthly payment to pay it down faster. The result is a shorter home loan length, which means owning their home faster, along with some additional benefits.

   The final reason Slappey listed as a reason to buy a home this year: Pride. An example he gives is blasting your music as loud as you want! "No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride", says Slappey.

   Do you agree?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #buyhome #sellhome #foreclosedhome #lowmortgagerates #homebuyers #downpayment #closing #PropertyTax #CapitalAsset #realestate #incometax #rentproperties

Good Ones Up, Bad Ones Down, Thumbs Up

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Fri, 20 Jan 2012 08:12:27 PST

Hi Folks,
   Hope you've stayed warm this mid-January week.

   Some important numbers were released this week, which we like to condense for you, since we know it's hard for you to read through all of the Economic Indicator Press Releases and funky jargon that some of them contain.

   For starters, some good indicators were up. The release of New Residential Construction figures for December showed us that both Single-family housing starts in December were 4.4% above November, and also that Privately-owned housing completions in December were up 9.2% above November. Additionally, the National Association of Realtors, or NAR, released their figures on Existing Home Sales for December, which were up for a third consecutive month, at 5.0% above November (Nationwide). Regionally, the biggest gainer in Existing Homes Sales was the Northeast, where the figures jumped 10.7% from November. These very positive increases led to a statement from NAR chief economist Lawrence Yun, who said that we might be seeing signs of a sustained recovery.

   Excess Housing inventory is not good...it's Bad. Why? Simple Supply and Demand Economics...more homes means lower prices. That being said, the NAR release also pointed to a 9.2% drop (less inventory), putting the available inventory at the lowest level since March 2005.

   These figures do not represent the entire puzzle, as there are still many areas still struggling, and additionally, other important figures will be released next week (Pending Home Sales Index, FHFA Monthly House Price Index, and New Residential Sales). Stay tuned for details.

   Thoughts and Opinions are always welcome...

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #NewResidentialConstruction #Singlefamily #housingstarts #housingcompletions #Realtors #NAR #ExistingHomeSales #recovery #Housinginventory #ResidentialSales

From A Sad Foreclosure To A Happy Home

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 17 Jan 2012 10:50:40 PST

Hi Everyone,
   Hope you had a nice long weekend if you had yesterday off, and a belated tip-of-the-cap to Dr. Martin Luther King for the peaceful way that he traveled to bring equal rights to African-Americans, and to bring peace amongst the different races of people on our little planet.

   Back in late summer, I wrote a post titled, "Feds Finally Keen on Rent to Own Housing", where we discussed a possible Government program aimed at selling bundles of foreclosed homes owned by Fannie Mae (FNMA) and Freddie Mac (FMCC), to real estate investors, with the properties converted into rentals. The key point here is that these homes will be sold in bulk vs. individually.

   Fast Forward a few months, and the Government is hoping to "launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties", in a story by Tami Luhby for CNN Money. Just last week, Federal Reserve Chairman Ben Bernanke cited the program as a possible way to help us get through the housing crisis, and per the article by Luhby, titled, "Turning foreclosures into rentals", Bernanke said that "Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery".

   After dropping mortgage rates down to historic lows, the Fed started thinking "outside of the box", and needed to find creative ways to solve the crisis. Perhaps after a prolonged stall in foreclosure procedures, the Fed sees the wave of foreclosures coming in their crystal ball, and as Luhby writes, there are close to 2 million homes in the late stages of delinquency, according to Lender Processing Services. These foreclosed properties can destroy home prices since they "often sell below market value", says Luhby.

   By converting these homes to rentals, the neighbors are happy, the Fed is happy, and things can start looking better for everyone. What are your thoughts?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #MLK #MartinLutherKing #AfricanAmerican #RenttoOwn #FannieMae #FNMA #FreddieMac #FMCC #realestateinvestors #FederalReserve #foreclosedproperties #homeprices

Local Community Trends Influencing the Rental Home Market

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Thu, 12 Jan 2012 10:50:19 PST

Hello Friends,
   Welcome back, and hope your year has been going great so far!

   We are proud to share an article with you from Personal Real Estate Investor Magazine, in which I was quoted a few times. The article, "Look for Community Appeal", which was written by Teresa Bitler, appeared in the Trends in Rentals Section (in the November - December 2011 issue - Please see a copy of the article linked here).

   From the vantage-point of our website, Lease2Buy.com, I was asked to comment on the market trends that I have seen over the past 10 years of running the site, and more specifically, over the past few months.

The following two excerpts include my comments from within the article:

#1: "The housing market is definitely influencing the rental market, says Robert Eisenstein of HomeRun Homes. A growing number of people are in foreclosure, have sold their home through short sale, or can’t qualify for the necessary financing to purchase a home. Those people still need a place."

#2: "Eisenstein has also noticed a spike in requests for rent-to-own properties, possibly indicating that while people have been forced temporarily to enter the rental market, they would eventually prefer to own their own home."

   This is a great article, and very timely. The golden rule is to "know your market". Know the prices, demographics, employment figures, etc for the specific community that you focus on, either as an agent, investor, or both.

   How well do you know your local market?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #RealEstateInvestor #rentalmarket #renttoown #properties #shortsale #foreclosure #financing

3 Tips for Sellers of Real Estate in 2012

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Thu, 05 Jan 2012 09:41:01 PST

Hi Folks,
Hope all is well so far in this shiny new year!

If you were waiting for the Holiday season to end before selling your home, there are some tips you can follow that will help you during the new world order of the 2012 Housing Market. To be exact, we have highlighted 3 tips just for you, and hopefully, these will be very helpful for you.

Tip #1: Price Flexibility. Make sure either you or your agent have all of the local sales, including those of short sales and foreclosures, so you can see what they sold at vs what they were asking, writes Steve McLinden in an article on Bankrate.com

Tip #2: Clean up. Neaten up. Paint, etc. Neglecting even the cheapest repairs can turn a buyer off. You want to make sure that you have dotted every "i" and crossed every "t" when it comes to curb appeal. It's more important than ever before, it seems (due to the over-abundance of homes on the market to choose from).

Tip #3: "Trump your techno-fears", writes McLinden, and suggests hiring a listing agent "steeped in mobile platforms", and mentions Facebook and other social media. He even eludes to a trend where Some owners are even making YouTube videos to showcase their homes, and thus, "making it easier to quickly link to potential buyers via email"

McLinden listed a total of 12 Tips in his story, but I feel that these 3 tips (not in the same order as his story) will be the dominant factors to help sell your home in 2012. What do you think?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #SellRealEstate #HousingMarket #shortsales #foreclosures #listingagent #mobileplatforms #Facebook #YouTube #video #socialmedia

Happy Flipping New Year !

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 03 Jan 2012 10:48:57 PST

Hi Everyone,
   Welcome back to our first business day of the New Year!

   Back in 2010, the FHA, a major insurer of mortgages, issued a waiver in 2010 that permitted "Flipping", which is buying a home for a low/cheap price, and then resell them for a profit, and all within 90 days. This measure was taken to provide stability, primarily in the low-income communities, which have been overloaded with foreclosures.

   The waiver was set to expire, however, the FHA has extended their "anti-flipping regulations" through 2012, per Les Christie for a recent CNN Money article titled, "FHA says: Flip that house". Acting FHA Boss Carol Galante said that this was extended in order to help "accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight". With foreclosed homes, property values drop, which can have a domino effect with even worse consequences for these communities. When the "Flippers" come in, they usually rehab the homes, which helps them sell the home, and improves the "conditions for neighborhoods", per Christie.

   Flipping was not always the Golden Child, and that is the reason originally for these anti-flipping rules (There was predatory flipping, which took advantage of "unsuspecting borrowers").

   To qualify for this waiver, the sale must be an "Arms length" transaction between a seller and buyer with no relationship between them, and there are certain other requirements that need to be met if the new sale price is 20% or more above the previous selling price.

   Christie writes that since the waiver went into effect in early 2010, the FHA insured in excess of 42,000 loans to buy homes that were being resold within 90 days, for a total of over $7 billion in mortgage principal.

   Have you taken advantage of the FHA Waiver in any of your transactions? Can you share your experience with us? We'd love to hear from you.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #FHA #Flipping #foreclosures #waiver #properties #rehab #predatoryflipping #armslength

Holiday Housing Cheer!

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 26 Dec 2011 21:38:35 PST

Hi Folks,
   I hope you all had a Merry Christmas and a very Happy Holiday!

   Last week the New Residential Construction figures were released for November, and for two out of the three components, there was a pretty solid move upward.

   The two components that were on the rise were both Privately-owned housing units authorized by building permits, and Privately-owned housing starts. The building permits for these Privately-owned housing units were up 5.7% over October 2011, but almost 21% from November 2010. The housing starts for these Privately-owned projects were up 9.3% over October 2011, but 24.3% over November 2010.

   The sole component that was down was for Housing Completions (for Privately-owned Housing), and the drop off was 5.6% from October 2011, and just 1.6% from November 2010. This should be reflective of a lower pipeline earlier in the year of both building permits and housing starts. If that is the case, however, let's just imagine for a second how promising the housing completions should be a few months down the road when these elevated building permits and housing starts come to fruition.

   As for Existing Homes Sales, these figures experienced a healthy bounce as well, with the completed transactions for single-family, townhomes, condominiums and co-ops, climbed 4% from October 2011, and 12.2% over November 2010. At a continued pace, we can only hope that the Shadow Inventory of homes can be devoured, so that we can truly experience the long-awaited Housing Recovery.

   What are your thoughts?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #ResidentialConstruction #ExistingHomesSales #buildingpermits #housingstarts #HousingCompletions #ShadowInventory #housingrecovery

How The Heck Did I Become A Landlord?

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 19 Dec 2011 09:51:56 PST

Hi Folks,
   Hope all is well, and your Holiday spirit is brimming over the top!
   OK, I certainly agree, the title of this post may be silly, but the topic is anything but silly.

   Amy Hoak did a great job addressing the "Accidental Landlords" in her story for the WSJ. Hoak defined one such landlord as "a landlord not by choice but because of circumstances beyond control", namely, the real-estate crash, in which this particular homeowner was suddenly faced with a choice: "sell for $100,000 less than what she paid, or hold on and hope that prices recover." She chose to hold on, rent the property, and thus, became an "Accidental Landlord". The chaos that ensued was a nightmare, that was harassing neighbors, and made complaints about everything from loud music to dust on her mailbox.

   "Becoming a landlord when a property proves difficult to sell is also a gamble that housing prices will rebound fairly soon, and that the ultimate sale price will more than cover expenses incurred in the meantime.", says Hoak, but with that gamble also comes legal responsibilities, expenses, and "unforeseen headaches"

   Lisa Eckert, a property manager for Coldwell Banker Bain, in Kirkland, Wash, commented in Hoak's article that she thinks we will see "a lot more owners becoming landlords" due to the economy, and says that people are "turning to renting out as the last-ditch effort". For example, Rick Sharga, executive vice president of Santa Ana, Calif.-based Carrington Mortgage Holdings LLC, says that rents are rising and there are millions of potential home buyers who are unable to qualify for mortgages.

   If you find yourself at the threshold of becoming an "Accidental Landlord", there are some tips that were shared that can help you survive, such as high costs (such as taxes, insurance, possible homeowner association dues, maintenance, etc.). For some landlords, Hoak writes that they might be better off hiring a Property Manager. Basically, a Project Manager, who will handle the maintenance, along with collecting the rent and other related services to managing the property, all for a fee that varies regionally and locally.

   Some of the additional tips that will help both new and seasoned landlords survive, include having a strong and enforceable contract, as well as full documentation of all correspondence, expenses, etc, should they ever need paperwork to bolster the reason for an eviction.

   My favorite quote from Hoak's piece came from Jerry Arnold, who has been renting out a condo he owns in Seattle since 2009, and he said the following about renters; "Nobody treats a property like an owner".

   Mr. Arnold, you are correct. However, there is one other group of people out there that also will treat a property like an owner; tenant-buyers, who are signed on to a Rent to Own contract. Basically, why just rent out a home that you can't sell? Why not rent it out with an option to buy, or Rent to Own?

   Does that make sense? What do you think about that statement?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #landlord #realestatecrash #rentproperty #risingrent #housingprices #PropertyManager #eviction #RenttoOwn #contract #renter #tenant

Real Estate Can Make You Do Crazy Things

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Wed, 14 Dec 2011 23:37:14 PST

Hi Folks,
   Hope you're having a great week.

   It's nothing new to any of you reading this that Real Estate is a great way to make a lot of money, if done right with a cooperating market. However, there is also an under-current of those that use fraud, manipulation, and other schemes to scrape funds from people with blatant disregard for the law.

   For example, there were 4 such incidents that popped up in the news this past week, one involving a Real Estate Broker, one involving an Internet Scam, another involving some Real Estate Investors, and yet another one overseas, just to show how far-reaching this issue goes.

   To be specific, a Real Estate Broker in Phoenix was convicted for evading over $3 Million in taxes from land sales and broker commissions, while some guy sold property in Alabama...property he didn't own and never gave up the Title for once he was paid! The story involving the Real Estate Investors was related to fraud and bid-rigging at Public Real Estate Foreclosure Auctions in California. The overseas one that I referred to above was in New Zealand, where a real estate salesman misled a buyer and failed to pass on an offer made by another buyer.

   I'm going to assume that overall, people are "good", however, with the markets the way they are right now, there are a lot of desperate folks out there, and a lot of people waiting to pounce on them like prey. Of course, everyone is innocent until proven guilty, but the sheer spike in these stories tells me that this is a trend that will continue in tandem with the market woes.

   The lesson here: Caveat Emptor, or "Buyer Beware". Do you have any similar stories to share with our readers?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #RealEstateBroker #RealEstateInvestors #taxes #landsales #bidrigging #RealEstateForeclosureAuction #California #NewZealand

Occupy Foreclosure Homes Hits Multiple Cities

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 12 Dec 2011 10:46:21 PST

Hi Folks,
   It's been a short while since we spoke, as I have had some unforeseen personal issues develop in my life over the past few weeks, but things are clearing up and the posts will start getting back on track for you!

   Unless you have been living under a rock for the past few months, I'm sure that when you turn on your TV, you keep hearing the same word over and over; "Occupy". Just slip a location after it, and you have Occupy Wall Street, Occupy Oakland, etc. Up to this point, the Occupy movement has been done in a Public fashion (Public Parks, etc), however, as it was recently discussed in a Newsday article from The Associated Press ("Occupy protests move to foreclosed homes"), Occupy protesters across the country are "reclaiming foreclosed homes and boarded-up properties", which they write, is "signaling a tactical shift for the movement against wealth inequality".

   These are not isolated incidents.

   Apparently, in excess of 25 cities were "occupied" by these groups who were protesting "on behalf of homeowners facing evictions". Jeff Ordower, one of the organizers of Occupy Homes, was quoted as saying that "It's pretty clear that the fight is against the banks, and the Occupy movement is about occupying spaces. So occupying a space that should belong to homeowners but belongs to the banks seems like the logical next step for the Occupy movement".

Some of the areas that the groups were protesting in were:
* Seattle: The article says that Seattle "has become a leader in the anti-foreclosure movement as protesters took over a formerly boarded-up duplex last month. They painted the bare wood sidings with green, black and red paint, and strung up a banner that says "Occupy Everything - No Banks No Landlords."

* Atlanta: At a Foreclosure Auction at a county courthouse, what was called a "boisterous rally", took place, along with "whistles and sirens to disrupt an auction of seized houses", per the story. The Occupy Atlanta spokesman, Tim Franzen, said that "We don't know how many homes we saved for one more month during the holiday season", and added that, "It was kind of a Christmas gift to the people."

* New York: Protesters marched through a residential neighborhood in Brooklyn carrying signs that read "Foreclose on banks, not people", per the Story.

* Southern California: In another familiar protest, the "protesters rallied around a family of six that reclaimed the home they lost six months ago in foreclosure".

* Portland: The home of a woman that was defiant about leaving that home, Deb Austin, was the site of a press conference. Austin, who's is facing foreclosure next March, per the AP Story, vowed to stay in her house until authorities take her out. The reason she fell behind was the result of both her cancer diagnosis, and also job loss.

   It appears that these protests will keep regenerating across the country, and perhaps the upcoming Election year will fan the flames even more. One such "desired result" could potentially be the use of abandoned foreclosed houses "that could be housing people", say the protesters.

   This will all remain to be seen, but it certainly is not a headline that will be dropping off the radar any time soon. What do you think?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #OccupyWallStreet #foreclosedhomes #homeownersfacingevictions #ForeclosureAuction #residentialneighborhood #banks #Seattle #Atlanta #NewYork #Portland #Elections #California

Property Managers Thrive as Rentals Soar

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Fri, 30 Dec 2011 09:10:54 PST

Hi Folks,

   Hope you all had a great weekend, whether you were doing Holiday shopping or anything else to relax this past weekend.

   For quite some time, many honest and hard working Property Managers were being grouped into the same category as some bad apples in their field. However, since people are having difficulties purchasing homes due to mortgage rules, etc, rentals are soaring, and in conjunction, Property Managers are flourishing.

   If you are not sure of what the functions of a Rental Property Manager are, they "handle such tasks as screening tenants, helping landlords set rents, resolving disputes and ensuring lawns get mowed. They charge homeowners about 8 percent to 14 percent of the monthly rent, depending on the manager and city", as told by Hui-yong Yu on businessweek.com.

   Time for some hard facts from Yu in the article, "Once ‘Ugly’ Property Management Grows as U.S. Home Rentals Surge", Renter household formation "surpassed new owner-occupied homes in 2007 for the first time since 1985 and has held the lead since", per the U.S. Census Bureau data". Additionally, U.S. apartment vacancies fell to a five-year low in the third quarter, according to Reis Inc., a New York-based real estate research company. Supply and Demand - less vacancies means less apartments available, and thus, higher rents. Diane Castanes, a partner at Phillips Real Estate Services in Seattle, mentioned that “When rents go up, that gives people enough cash flow to hire professional management,”

   “There has been a dramatic shift toward renting,” Chris Herbert, research director of Harvard University’s Joint Center for Housing Studies, and as Yu said, services for rental properties are thriving "following a surge in foreclosures and stiffening of mortgage standards". This led to an explosion in membership in the National Association of Residential Property Managers over the past five years, according to the Chesapeake, Virginia-based trade group".

   This is where this story becomes extremely interesting.

   "Property management may have a role to play in fixing the housing crisis", said Reggie Brown, chief executive officer of All Property Management LLC, a Seattle-based Web service, in a segment of Yu's article. A few months back, the FHFA, which regulates Fannie Mae and Freddie Mac, was looking for ideas on "handling foreclosed homes held by the government", to the tune of about 248,000 as of June.

   Brown "filed a suggestion with the FHFA that the homes be put up for rent with property managers hired to oversee them", which was a fantastic idea. "What’s going to change is the percentage of U.S. households that are rental versus owner-occupied,” he said. “It’s now almost 40 percent, but that number is definitely going to grow.”

   From our standpoint, this is a great idea on many levels. With the proposal from Brown, coupled with our proposal to Rent to Own these homes (to generate immediate revenue), I definitely feel this would make a large impact on the Housing Market.

What are your thoughts on this?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #PropertyManager #rentalproperties #foreclosures #RenttoOwn #screeningtenants #homeowners #owneroccupiedhomes #apartmentvacancies #FHFA #Rentals #mortgagerules

For a Smoother Closing Table Experience...

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 29 Nov 2011 14:06:10 PST

Hi All,
   Welcome back after the extended Holiday weekend.

   Last week, we touched on the things that can hamper a Closing ("Oh, Those Crazy Closings!"), and today, we are going to revisit the topic, since we are hopeful that more Closings will be happening, which would signify a robust Housing Market.".

One of the most respected Real Estate Websites, Trulia.com, has published a handout that provides 4 tips for Buyers to help them proactively prepare for the Closing. These tips are extremely crucial, and can make the difference between you and your new "keys"!

   Tip #1 - "Halt Major Money Moves". Basically, try to remain low-key in terms of deposits, credit limits, etc (any "money-related activity that could change your financial status in any way").

   Tip #2 - "Tell the Whole Truth". Everything that you do or say will be verified multiple times, i.e. credit, assets, marital status, employment. Getting a Mortgage is tougher than it was a few years ago, and the process has become much more strict than ever before.

   Tip #3 - "Closing Documents: Read Ahead". Know any corrections or changes in your documents before you get to the Closing table vs. the day of the Closing. This is so important!

   Tip #4 - "Watch the Calendar". Take control of deadlines for inspections, etc. Constant communication with real estate and mortgage brokers regarding dates is key to your deal (dates can impact interest rates, etc.).

   Overall, some great tips from Trulia. Is there anything else you can suggest?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #closing #creditlimits #assets #documents #inspections #trulia #realestatebroker #mortgagebroker #mortgage #interestrate

Oh, Those Crazy Closings!

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 22 Nov 2011 19:12:54 PST

Good Morning,
   As we all get ready for Turkey overload, I'd like to welcome you back!

   Selling a home? If so, do you savor the day it sells? Is the thought of the sale going through as juicy a thought as the Turkey gravy dancing through your head? Not so fast. "Reaching an agreement doesn't mean your home is as good as sold", writes Margarette Burnette for the HSH.com website article, "4 weird closing glitches (and how to avoid them)".

The Glitches that Burnette writes about are:

1 Liens
2 Termites
3 Renters in residence
4 Parties don't have enough money for closing
* Bonus from my own personal experience - "In writing" !

   Liens, says Cynthia Jones, a real estate attorney with Horack, Talley, Pharr & Lowndes, P.A., a law firm in Charlotte, N.C., are "any unpaid bills you have from delinquent property taxes, homeowners association dues or even past remodeling work", in comments appearing in Burnette's article. For any such liens, Jones suggests that you can "try to work out an agreement with" the party you owe money to", i.e., a payoff.

   As for our wood-chewing nemesis, termites, Barry Hildebrandt, broker/owner of WCI Real Estate in Riverside, Calif, says that "Many home sale contracts are drafted with contingencies that allow the buyer to inspect the home before going through with the sale". What should you do? Make sure you inspect and clear out the little buggers in advance!

   If you have people residing in/renting your property, you will want them out by the Closing, and Jones suggests that you, "make sure your lease agreement provides enough time for your tenants to move before you close on the property and hand the keys over to your buyers".

   The next potential glitch can hit either the buyer, the seller, or both parties. Burnette suggests that buyers should still be "preapproved for their loans in order to help make the process go more smoothly", and warns that if the buyers have not "properly calculated how much they'll need to bring to closing", they could fall very short and it could impact completion of the deal, thus, the Closing.

   If sellers are underwater on their mortgage, says Jones. they may have trouble coming up with the funds to pay off their own loan at closing, however, she suggests that in order avoid such issues, make sure that both parties have a "clear understanding" of the amount of money that needs to change hands at the closing. Sound Advice.

   Here's my bonus tip, prefaced with a little story. When we purchased our home, we were quoted an interest rate 1/4 point below what the Closing papers said. You may scoff at a 1/4 point, but on $400,000, that's big money! To top it off, our mortgage guy was on vacation for the closing. I was able to have his secretary patch me through to him from the closing table, and I shed a piece of my mind on him. Short of delaying the closing (and delaying our movers, etc), we agreed on a compensation to us which turned out to be quite fair. Long story short; get everything in writing before the closing!

   Did we miss anything?

   May you have a blessed and joyous Thanksgiving, and I continue to be thankful for my family, friends, and the joy of writing these posts for your enjoyment. We will not be posting Friday, however, will be back with you during the following week.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #closing #lien #termite #renter #realestateattorney #homeownersassociationdues #propertytaxes #payoff #underwater #mortgage #interestrate

Higher Home Sales and Lower Housing Inventory

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 21 Nov 2011 19:03:16 PST

Hi Folks,
   Hope everyone is doing well.

   The National Association of Realtors, or NAR, just released their figures for Existing Home Sales in October, and some the highlights were:

   * Existing-home sales rose 13.5% from October 2010 to October 2011.
   * Regionally, the Midwest had the highest increase (19.6%)
   * Over the September - October period, contract failures soared 18% to 33%
   * Unsold Housing Inventory is on the decline.

   With the solid 12-month figures, the shorter term figures were not as impressive, and as Lawrence Yun, NAR chief economist, said; "Many people who are attempting to buy homes are thwarted in the process”.

   One of the major factors was the spike in contract failures, which can happen for any number of reasons, including declined mortgage applications, appraised value below the negotiated price, etc.

   One glimmer of hope, as I see it, is the drop in foreclosure inventory. If we see that inventory devoured, things will look even more promising, since there is a heck of a lot of it out there !

   What is your interpretation of this data?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #ExistingHomeSales #UnsoldHousingInventory #contractfailures #declinedmortgageapplications #appraisedvalue #foreclosureinventory #NAR

Where Are Real Estate Investors Putting Their Money?

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 21 Nov 2011 20:26:17 PST

Hi Folks,
   Glad to have you back.

   Are Real Estate Investors buying homes? Condos? Apartment Buildings and Rentals? Well...kind of

   They are putting their money into real-estate investment trusts, or REITs (shares of professionally managed property portfolios), according to AnnaMaria Andriotis in her article, "Real-Estate Investors Target Neighborhood That Is Looking Up" on the wsj.com website.

   Andriotis cites data from Citigroup Global Markets, which shows that so far this year, investors have "poured roughly $6 billion into publicly traded funds of U.S. REITs which mostly buy commercial properties like apartment buildings, office parks and shopping malls". These figures are up 18% from all of 2010, 400% from 2009, and are at a "pace unseen since before the financial crisis" Further, she says that property REITs have compound annual total returns of 11%, compared to about 4% for stocks, over the past 10 years.

   Aaron Schindler, managing director at New York-based Wealth Advisory Group, says that REITs focusing on apartment buildings in particular have flourished, "thanks to tight mortgage lending, renters who have put off buying a house and foreclosed homeowners who are now renting instead". Further, according to the National Association of Real Estate Investment Trusts, tTotal returns on apartment buildings and self-storage properties average about 10% and 22%, respectively, year to date through Nov. 9.

   REITs also can serve as inflation hedge, since rents also tend to rise with inflation. P.J. Gardner, an adviser and founding partner at AGW Capital Advisors, an investment consulting firm, says that those increased rents get passed through to shareholders (and by law, REITs must pay at least 90% of their taxable income—rents less expenses—to their shareholders), and thus those dividends offset some of the risks.

   Real Estate Investor? What are your thoughts? Where are you investing?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #REIT #RealEstateInvestor #ApartmentBuilding #Condo #commercialproperties #foreclosedhomeowners #renter #inflationhedge

Housing Scams Continue to Blind-side Homeowners

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 14 Nov 2011 08:36:13 PST

Hi Folks,
   Good Morning and welcome back.

   We are all familiar (perhaps even all too familiar) with Identity Fraud when trying to secure a mortgage, but this has been on the decline with all of the new regulations in place, as discussed in my previous Blog Posts. Those committing these fraudulent acts have now moved onto other shady tactics to take advantage of those impacted by the housing market’s downturn.

   With the surge in distressed homeowners and people with upside-down mortgages, a big window of opportunity exists for the scammers, says Amy Hoak in an article on Marketwatch. She said that some offer document preparation, loan modification, attorney services, etc, and they sound like the real thing, and are able to gain a homeowner’s trust.

   "They offer a service, take the homeowner’s money, then disappear", adds Yolanda McGill, senior counsel for the Fair Housing and Fair Lending Project of the Lawyers’ Committee for Civil Rights Under Law, however firms are now prohibited from asking homeowners to pay before services are rendered per the Mortgage Assistance Relief Services Rule, with an exception for attorneys. McGill says, however, that this is "causing some scammers to pose as representatives of law offices".

   Some other scams include a quit-claim deed, which McGill says, "transfers ownership of the home to the scammer, who promises the homeowner a situation where he or she will be able to remain in the house". Another one she mentions is when those who have already lost their homes are being approached to pay money to get the home back. The underlying lesson here is, "Don’t give anyone money to help you with this” she says, and suggests that you seek out a U.S. Department of Housing and Urban Development-approved housing counselor and your servicer.

   When a lender accepts a lower mortgage payoff than the home is currently worth, this "short sale" can be a "lifeline for a distressed homeowner heading for foreclosure", writes Hoak. However, this opens another window for fraud.

   Hoak writes about one such scam when a seller or a representative doesn't submit the best offer to the lender, and "A middleman purchases the short-sale property at the lower price, then turns around and resells the property to a legitimate buyer at a higher price — often on the same day", and effectively, "The middleman pockets the difference, sometimes sharing it with an accomplice", and she cites a recent Federal Bureau of Investigation report on mortgage fraud.

Another fraud mentioned in the story is “reverse staging", where the scammers try to "manipulate the price lower by encouraging the owner to make the house look worse than it is". This approach eventually results in the property becoming run-down and possibly even an eye-sore, which would reduce any appraised value or price evaluation.

   There are many other scams that can involve multiple players in the Real Estate market, and there are new ones springing up all the time. Be wise, be wary, and ask a lot of questions.

   Have you seen any scams that we should all be aware of?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #shortsale #foreclosure #reversestaging #realestate #distressedhomeowners #MortgageAssistanceReliefServices #mortgagepayoff #IdentityFraud

The Foreclosure Machine Cranks Up Again

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Thu, 10 Nov 2011 09:30:14 PST

Hi Folks,
   Welcome to 11/11/11. Crazy date! But it's Friday!

   You know, there are countless folks out there who have been breathing a little easier for quite some time, due to the halt in Foreclosures (if you recall, the "robo-signing" crisis a while back), however, it appears that the Foreclosure starts are on the rise once again.

   “Rising foreclosure start rates are likely a sign that servicers are playing catch-up on actions that have been delayed over the past year,” states Diane Pendley, managing director of Fitch Ratings, in a recent article on DSNews.com ("Foreclosure Starts Rise as Servicers Process Backlog of Delinquent Loans"), written by Krista Franks.

   Fitch reported that the Foreclosure start rates for severely delinquent private-label residential mortgage-backed securities (RMBS) loans have "stayed above 10 percent since September — a rate they have not reached since November 2009", with an even larger amount since then. Additionally, the article mentioned that the foreclosure starts for loans delinquent for six months or more "have almost doubled in the past five months". What will happen with the increase of distressed properties? You guessed it - pressure on the Housing Market.

   Further along in the Foreclosure process, the actual Foreclosure completions in judicial states "hover near their historic lows", the article says, to which Fitch says is due to "servicers’ continued loss mitigation efforts, a backlog in court foreclosure filings, and weak demand in the housing market.” Diane Pendley, managing director of Fitch Ratings, says that about a year after "deficiencies in the foreclosure process were brought to light", that Mortgage servicers now generally feel they have "implemented the corrective actions that they determined were needed".

   With the backlog, Fitch says that the effects of rising foreclosure starts may take more than a year to be evident, however, any way you look at it, there will certainly be more distressed inventory going on the books and will certainly impact the Housing Market.

   What are your thoughts?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #foreclosurestarts #distressedproperties #housingmarket #inventory #robosigning #mortgagebacked #RMBS

Commercial Real Estate Loans Crushing The Banks

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Tue, 08 Nov 2011 12:38:00 PST

Hi Folks,
   A lot of our readers are either owners of, investors in, or curious about Residential Real Estate. We are all too familiar with the Housing Bubble, so we don't need to rehash it, but did you know that following fact; "Troubled commercial real-estate loans accounted for more than 65% of problem loans among the 11 banks that failed in October" (Data from Trepp LLC)?

   "Construction loans turned into a particular albatross, and even the commercial mortgages have turned into a problem area for a lot of banks", says Matthew Anderson, Trepp's managing director, in a recent WSJ article titled "Commercial Real Estate Continues to Weigh on Banks", written by Jacqueline Palank. Further, Palank writes that Commercial real-estate distress "shows few signs of abating and continues to push U.S. banks to—or past—the brink of collapse".

   The data from Trepp shows the bank failures due to Commercial Real Estate loans are trending towards the smaller banks, and have a "regional tinge". Anderson stated that in the Midwest and the Southeast, "there are still a lot of smaller banks that have high exposure to commercial real estate, including construction and land loans". He also adds that "It's generally been smaller banks that have been failing," since "For a large number, the exposure to commercial real estate still is very substantial."

   The interesting thing here is that there had been a growing fear in the background among those familiar with the industry, which was a "waiting for the other shoe to drop" type of fear. What I mean is that when the Residential market tanked, many experts were watching and waiting for the Commercial Real Estate Market to follow.

   Have we moved beyond the worst of it? What are your thoughts?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #CommercialRealEstateLoan #Constructionloan #commercialmortgage #bankfailure #ResidentialRealEstate #Midwest #Southeast

Here Comes The Cuban Real Estate Market

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Mon, 07 Nov 2011 20:31:49 PST

Hi Folks,
   Hope all is well, and glad to be with you!

   For many of us, the "Free" Cuba that we know about comes from history books or stories that have been passed down. For those of you who lived through Fidel Castro's takeover, this story will be quite interesting to you.

   In a recent story on the PropertyWire.com website, they broke a story that sums it all up; "New Cuban law will create a property market for first time since 1959". Property Sales have been banned since shortly after Castro took power in 1959, who wanted to stop the "absentee ownership by wealthy landlords", and gave title to whoever lived in a home. The result was that if you left the island, you forfeited your properties, says the website PropertyWire.com.

   For years, since a property market was illegal, the only way to swap houses was via black market deals, "complicated barter arrangements", "sham marriages" (to make deed transfers easier), as well as other mechanisms listed on the website.

   The new reform, which is a very important one by President Raul Castro, comes after a reform that permitted buying and selling of new cars, going into business for yourself, as well many other progressive reforms.

   As the website says, "Cuba has a population of 11 million people and a housing shortage", and that it is not unusual to find "three or four generations crammed into a small apartment or divorced couples under the same roof". Now, as we anticipate the approval by the Cuban National Assembly on November 10th, "Buying and selling property is to be allowed in Cuba with new rules coming into effect next week", which PropertyWire.com says us the "first official move to allow the creation of a real estate market".

   Additionally, the website says that it is not yet known if there will be restrictions on the number of properties a person can own or about how flexible the new property market will be, and says that "The effect of creating a housing market in the stagnant Cuban economy is uncertain".

   What does this mean? It means a stronger, more self-sufficient neighbor in our Hemisphere that can perhaps become a part of the Global Economy, which would mean a stronger influx of money, a potential repeal of sanctions, and an influx of tourism from not only the United States, but also from around the world. With Raul at the helm, Cuba might see the sky as the limit. Havana holds it's own future in it's hands...

   What are your thoughts?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #Cuba #Havana #RealEstate #FidelCastro #RaulCastro #propertymarket #reform

Short Sale Caveats for Realtors

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Fri, 04 Nov 2011 11:28:30 PDT

Hi Folks,
   Welcome to your weekend !

   The "Wild West". This conjures up thoughts of lawless times and renegades going from town to town and old fashioned "Shoot-em ups". When using the terms "Wild West" to describe Short Sales, this should indicate that dangers abound, and everyone, including Realtors, must be wary.

   Sarah Stelmok writes on Truliablog.com that listing a short sale is a "little like venturing into the wild, wild west", and says that there's only "a little order, lots of imposters, and laws are broken without much penalty."

   Stelmok outlines 3 primary things agents should know about Short Sales in her story, titled, "3 Things Agents Should Know About Short Sales":

1. "Market Value Matters" - Short sales sell for market value, says Stelmok, and adds that a bank will "typically agree to a short sale if the numbers make sense".

2. "Only Real Hardships Get the Help" - "Strategic default is never a good idea", Stelmok says, and adds that banks actually analyze hardships that are reported by a seller, and ones that are acceptable are financial/economic issues, "medical issues, divorce, disability, significant loss of income, death, unemployment, and relocation."

3. "Laws are local" - Since there are currently no national short sale laws, Stelmok says that it's important to "know your state’s foreclosure laws",

   As Stelmok summarizes, "This type of transaction is constantly evolving; however there are a few things that remain the same, and that every agent needs to know when working with short sales."

   What's your experience with Short Sales? Do you have any tips from the trenches (or should I say, from the Wild West?)?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #shortsales #foreclosure #realtor #strategicdefault #marketvalue #agent #laws #hardship

What is ROI and Why is it Important to You?

homebuyer@lease2buy.com (HomeRun Homes - www.Lease2Buy.com) — Wed, 02 Nov 2011 11:56:46 PDT

Hi Folks,
   Hope you're having a great week!

   Today, we are going to look at a very important calculation used by Real Estate Investors to gauge and measure potential investments. The calculation that we are going to look at is Return on investment (ROI), with which some of you may already be familiar. At the risk of going too deep into formulas, we are going to just touch on the topic, and provide you a good framework to decide if you want to research it further.

   ROI, which is expressed as a percentage (%), is the % of money that goes back to the investor (after taking into account the actual cost(s) of the investment), or Gain from Investment minus Cost of Investment, divided by the Cost of Investment. This is a very basic way of figuring ROI, but there are more complex ways to compute it, taking into account repairs, etc, but this is outside the scope of our basic discussion here today.

   What are some of the complications in calculating ROI?

   As Marc Davis writes in his article, "How To Calculate ROI For Real Estate Investments", for the Investopedia website, there are complications in Calculating ROI (some more complex than others). Some examples he provides are if the property is refinanced, if the property was bought with "an adjustable rate mortgage (ARM) with a variable escalating rate charged annually", and if there is an increase in maintenance costs, utility rates, and property taxes,

   Davis points out the following tip; "For income tax or capital gains tax purposes, however, real estate property owners are urged to get professional tax advice from a reliable source before filing". Sound advice.

   Do you use ROI when making a decision regarding your investment(s) in Real Estate? We'd love you to share your comments.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #ROI #RealEstateInvestors #Returnoninvestment #ARM #adjustableratemortgage #propertytax #capitalgains #property