Mr Downtown Orlando

2nd wave of letters

2011-09-04T22:46:00.000-04:00

2nd wave is Lumpy Letters.

Monday 2 September 2011 I mailed out 82 letters to people I have already mail 103 letters to. I removed some properties that already responded. I also noticed that some properties I sent letters to had a low retail value so I choose to no longer send letters to those properties.

This batch of letters were hand written without the people names on them. I then photo copied them. Each one looks hand written and just not yet personalized. So at this point I have a stack of letters that do not have Antone's names on them and also a stack envelopes with just the return address on them.

I went through my updated lists and added the persons name to the letter to make it personalized for them. I added there address to the envelope and closed the envelope with the letter AND a piece of candy in it. A piece for each person who was on deed.

When they receive it, the letter is Lumpy. They are thinking, What the Balloons? They open it just to find out whats going on. Once they open it they are more likely to read the letter.

As you can see in the picture the letters are not flat. There is candy in them. The candy should my a hard and not messy like chocolate. M&Ms in letter is a bad idea. Big Bags of M&Ms in Boxes of Care packages for people you love is a very good idea. Why? Lettuce is Perishable. Back to Lumpy mail, with like hard Butterscotch or Werthers will work. Cheaper is better for your wallet.

Course I put some cool stamps at got at the post office. I recommend highly colorful stamps

I mailed them Monday morning and got the 1st call Tuesday Afternoon. 2nd call was Thursday so far I'm at about a 2% response rate which is OK.

Some of the feedback is that some of the home owners are getting lots of letters. They called me means they are reading my letters.

Post comments about what your doing and whats working for you.

HOW I created My Yellow Letter

2011-08-20T09:04:00.004-04:00

What is the success behind the Yellow Letter? It’s that it’s hand written.

Why do people don’t like the Yellow Letter? It’s that it’s hand written.

You could higher the letter writing out, it just cost some money. For some that’s a good choice. For others just starting out this may not be an option. Remember that the letter and the envelope hand writing should match. So if you higher this out make sure that the same person who is writing the letter also writes the envelope.

Use dark blue pens. I prefer Gel Pens. Use a good quality Blue Gel Pen. Try a few out in the store. get something that is bright and easy to read.

At first I had the name and address ready as I wrote each letter. SO I would add the name and address as I wrote the letter. I found I made many mistakes as I wrote the letters. This wasted a lot of time. I also wasted a lot of time looking and making sure the name was right. I sometimes rewrote the same name a few times and thus had to rewrite the same letter.

How can you avoid this? Here is what I learned, follow my simple system.

Just write the generic letter without adding the person’s name and address. Just leave those areas BLANK. You just add them later.

The person writes the entire letter without names or address and continues to just write the letter without names or address. It will speed up the process and will reduce the number of mistakes. The writer gets used to writing the same thing over and over and really doesn’t have to give it their full attention after a while. The writer will get into a flow and their speed increases and they become more accurate. It’s when a person who is changing something constantly that makes the most mistakes. When they are used to writing something is the one that makes the fewest mistakes.

After you have a large stack of letters without people’s names and address on them. THEN you go back and add the homeowners name and address. The writer is then on high alert and pays attention more while doing this. Since the writer is focusing on just the names and addresses that person makes fewer mistakes.

The envelopes you can use the same basic Technique. First just write the return address on the envelope and that is it. Later you can go back and add the names and addresses.

The next step is adding the stamps. The stamps are also very important. It’s easy to get stamps from ATMs, local store or even the stamp machine. The best stamps are the ones behind the counter at the post office. Just ask them to see any interesting stamps they have. They are usually in a book and come in sheets of 20. It attracts people’s attention. Many people collect stamps and will open the envelope and read the letter just to get the stamp.

Final step is mailing the letters.

Andy Carson

321-297-8089

MrDowntownOrlando@yahoo.com

103 letters mailed

2011-08-13T23:50:00.001-04:00

I invested over a week HAND writing yellow letters and the envelopes. I made many mistakes and I still got 103 done.

I mailed all 103 out Tuesday (9 Aug 2011) Morning about 8am.

Wednesday afternoon I got my first call. Just about 36 hours. Not a serious seller yet. Would not give me the information I needed to form a good offer.

Thursday I got 2 calls, one to let me know that he was doing a loan modification and if that does not work he will give me a call. The second one was a good candidate. I am working with him now. We will see.

Overall, so far I have a 3% response rate and that’s pretty good on just the first letter. Stay tuned for the next letter.

On Monday 22 Aug 2011 I got a call from another person who wants to sell. That brings me to 4% responce rate.

On Thursday 25 Aug 2011 I got a call from a REALTOR for the property I mailed to. I did not realize it was listed. Sorry, I dont buy properties that are listed unless its a killer deal. He got my letter from the homeowners. So they opened it and took action. So far that brings my responce rate to 5%. Much better than I expected.

Yellow Letter

2011-08-13T22:55:00.001-04:00

In this Dynamic Real Estate Market houses are being bought and sold every day. The question is how do we get the sellers to call us? Yellow letter campaign is one of the most effective ways to market to find houses for sale. Its basically it’s a way to contact owners to see if they want to sell. Yellow Letters is a proven to get some of the best responses from people who need to sell.

The Cutting Edge is the Yellow Letter to find opportunities. It is mainly used for real estate and it could be used to buy other products also.

It does not matter if the Real Estate Market is going up or down, the Yellow Letter works for you. It’s best to look for owners who NEED to sell.

• Keep the letters personalized. Use the owners names.

• Hand written is best. Does not mean you have to write them. You can hire others to do this. Disable, Retired, Work at Home or even Kids just to name a few. I’m sure you can think of others also.

• Be sure to put you own contact information on your letters. I would prefer that you put mine in your letters. (thanks in advance if you do)

• Be sure the handwriting on letter and envelope are the same. Not two, three or more different styles of handwriting. UNLESS you use it as a gimmick. Like having your child write something like “My Daddy/Mommy wants to buy your house!” or “Mommy/Daddy/Papa buys houses!” In crayon of course.

• Use interesting stamps. Using a stamp machine will drastically lower your response rate. Buy a Roll stamps that EVERYone uses and it does not work. Go to the post office up to the counter and ask to see what kind of stamps they got. Use stamps they normally don’t see.

• The envelope should also be hand addressed. If you use labels or the addresses in window will lower your response rate.

• Keep it Easy, Simple and Cheap.

• Write your letters with a Wicked Punch. Catch their attention and hold their attention. Ya gotta make them to WANT to read your letter. Make them feel that if they don’t call you that they will lose an opportunity. People open mail over the trash. That is the one place you do not want you letter to end up.

• The type and quality of paper is critical.

• The type and quality of ink should be Dark and easy to read. To light and it’s hard to see.

• Create an emotional need to call you.

• Find your nitch.

• Experiment.

• Be Creative.

It’s time to Create your Massively Successful Campaign.

74 Calls.

2011-07-26T09:59:00.000-04:00

I have been building a list for last wew weeks. People who are in foreclosure. These people NEED TO SELL! Look for people who NEED TO SELL. Not people who want to sell.

People who need to dump there property now. WHen they need to sell you can get great terms and or Price. You make your money when you buy and collect it when you sell. People who need to sell want their problem sloved. Money is not the issue. Their problem is the issue and when you talk about solving their problems creates the opportunity.

If you call people who just want to sell there is no real reason for them to sell. They are really focused on getting their price. They dont have any problems they need solved and they dont need you.

Work with people who need you and really want to sell.

In just 2 hours I called 74 numbers of people in a destressed sittuation. THey NEED to sell. They most likely have money issues. Most of the numbers I called were disconnected. Many did not pick up and screening their calls. I expected both of these. I talked to one person who is doing a loan Modification. Wants me to call back in 6 months.

I will call them all again. I am also planning to mail each address repeatedly.

I will explain the Yello Letter soon.

Focus on people who need to sell NOW!

Basics of a Successful Call

2011-07-22T16:01:00.001-04:00

1) Be Prepared.

A) Have Notes or Agenda of WHY your calling. Property Information you’re calling about.

B) Have several Pens Ready and Plenty of Paper.

C) Be Organized.

D) Make sure if using a cell phone that it is charged and ready for use.

E) Be Prepared to TAKE effective NOTES. Date you are calling, Who you talk to, When is best time to talk, Information about people and also the property, WHY they are selling, Financial information about property also when you will be following up with them. ALSO record when you do mailings to property and when next mailing should go out.

2) Talk to the Seller or Buyer on the phone. Not just leaving a Voicemail and waiting for them to call you back. You may have to call seller/buyer several times before you actually talk to them on the phone. Call at different times to get best results.

A) Call at different times to find best time to call. People may call screening.

          B) Always ask “Is this a good time to talk?” or “Do you have a few moments to talk?”

          C) Always talk to the Decision Maker. Other people may try and blow you off. If Decision maker is not there then ask when is a good time to call to talk to them.

3) Build Rapport. (People have to feel like they trust and like you.)

                                        --WHY you should build rapport?

            A) First Impressions make or break deals.

            B) Everything goes so much smoother.

C) People Trust People They Like

                                       -- Techniques for building rapport

               A) Mirroring – Understanding and Urgency. Increases your relatability to people.

                          1) Match their Tonality

                                      a) Match their Tonality (Loud or Soft= Match it- If they talk loud - you talk loud)

                                      b) How they Pronounce Words – pronounce them the same

2) Follow their rate of speech- They talk fast you talk fast. They talk slow then you

talk slow. IF you talk fast to someone who talks slow they think you’re a slick salesman after their hard earned money. If you talk slow to someone who talks fast then they think you are dumb or stupid. This is why you want to talk at the same speed they do.

3) Repeat and Approve.

So simple and often overlooked, it helps everyone in the conversation to prevent miscommunication. Repeat a very brief synopsis of what is said. This prevents misunderstandings and keeps everyone on the same page. When they approve, it proves you are listening.

4) Body Language - Match their body language

a) Posture/Body Movement: Wait 10-15 seconds, and shift your body to the same as theirs.

b) Gestures: Use same ones they use, when it’s your time talk.

c) Facial Expressions: Match their facial expressions instantly.

d) Shrugs: If they Shrug you shrug instantly.

e) Head Nods: Instantly

5) Eye contact – Maintaining eye contact builds trust. The directions of a persons

gaze may indicate to others where their attention lies. It is a non-verbal Communication and in an important sign of confidence. Custom will vary widely from culture to culture. Eye contacts conveys emotional and

social information. Eye contact is also an important part of flirting. Do not get into a staring match. If a gaze is held for long periods of time that it is perceived as a threating gesture.

6) Reciprocity – Giving gifts or doing favors without asking triggers a feeling of Obligation.

7) Commonality - Deliberately of finding something in common with the other person in order to build a sense of camaraderie and trust. Shared interests.

8) LISTEN and ASK QUESTIONS – be an active listener.

A) Empathize with their situation.

B) Get them talking about themselves and situation.

-- Favorite rapport-building topics- (May be visible around office/home/Other)

a) Kids/Family g) Health m) Pets

b) Hobbies h) Weather n) Hope and Dreams

c) Their Home i) Holidays o) Where they want to Live

d) Neighborhood j) Time of Week/Year

e) Work k) Overall Area, City or State

                          f) Local Sports Teams     l) Marriage

4) Verify Information

            a) Address and the house size (Is same as Public Records? If Different then WHY?)

            b) Lots size and does it have a view (type) What’s behind house?

c) House condition and anything special about it.

d) Names on the deed. (all people who must agree and sign for the sale to go through.)

e) Names of the Mortgage and Mortgage information. (will need a release of information for contacting bank if you have to talk to bank)

f) Run the Numbers. Does it make sense on paper? Does the deal work? Did you account for variables? Misquotes or Don’t knows of owner? Are you emotionally attached to property? Or is the deal based only on the numbers? Can you buy it for less than your (MAO) Maximum Allowable Offer so you make money?

5) Close the Deal

a) Explain the deal. (It’s best if you Present 3 offers- All Cash Big discount no terms. – Some cash some terms. -- NO CASH ALL TERMS)

b) Negotiate the price and terms.

c) Answer Questions and Overcome Objections

d) Walk them through the process

6) Set the Appointment

a) Schedule the SOONEST POSSIABLE TIME to take care of the paperwork.

b) Offer a choice of times.

7) Sign off with Enthusiasm

a) Don’t rehash the numbers. Do not go over MAO at any time.

b) Set Expectations.

c) Talk about how great this is going to work out for everybody.

d) Give a Congratulations!

Ways to find Real Estate Deals to BUY

2011-07-20T21:01:00.001-04:00

1) Sphere of Influence- People you know – word of mouth

2) Real Estate Agents- MLS – Multiple Listing Service- Being sold by a REALTOR- Most Banks, Credit Unions, HUD properties, VA Homes are sold on MLS Now.

3) Driving For Dollars- Driving your neighborhoods. Abandoned Properties

4) Calling For Sale Signs

5) Calling for RENT signs- Could be a tired landlord. (Could have more than one property)

6) Other Investors

7) Door Knocking

8) Putting out bandit signs- “I Buy Houses CA$H 321-297-8089” “I sell Homes- 321-297-8089” Could be Code Violation.

9) Property Tax Rolls.

10) Other Investors

11) Flyers

12) Business Cards

13) Car Signs- “I Buy Houses CA$H 321-297-8089”

14) Referrals from past customers

15) Auctions- Risky - learn before how before you buy.

16) Private Lenders- Who want to sell property they have already took back.

17) Buying Bad Paper- Going to a lender and buying their notes that are in or about to go in foreclosure. Could be a Bank, Credit Union, or Private Lender

18) Buying Tax Certificates

19) Buying at Tax Deed Auctions- very risky

20) Mailings to a Farm Area ( a very specific area that you become an expert in and work)

21) Pre Foreclosure – can buy list and market from them

22) Shopper Papers- Penny Saver or Thrifty Nickel - Rare

23) News Paper Ads –For Sale By Owner - Rare

24) News Paper Ads you place stating “I Buy Houses CA$H 321-297-8089” Risky – Best when done for extended time period.

25) Bankruptcy

26) Yard Sales – Many times people are thinking about moving

27) Contractors

28) Attorneys

29) Insurance Agents

30) Insurance Adjusters

31) CPA’s and Accountants or Tax Attorneys

32) Postal People- They knows which ones are empty.

33) Delivery People

34) Title Agents – Know who owns more than one property or who is buying or selling.

35) Small Banks & Credit Unions may talk to you if they think you are a serious buyer.

36) Bails Bonds – People will sell their home to help a family member out of jail.

37) Out of State Owners

38) People who have owned their home longer than 20, 30 or longer years. They probably own it without a mortgage. Owner Financing?

39) Damaged Property – Fire, Hurricane, Sink Holes, Earth Quake or other.

40) Divorce

41) Death - Estate Sales – contact Executor or Heirs

42) Dislocation – People that have to move- Military, Got better job that start in 30 days Need to sell. Want to move badly. Have to stay in contact with them Call them on day 1 and find out when they have to move. Call them near deadline.

43) Tired Landlord - Can Market Directly to this class.

44) INTERNET – Craigslist, Facebook, Twitter, or other.

Andy Carson 321-297-8089 Central Florida

If you know of any others please let me know. Let’s increase this list. You have some great ideas.

Calls on 19 July

2011-07-20T11:54:00.000-04:00

Working my plan I made calls to people who expired or in foreclosure Tuesday night. I Started at about 720pm and made 14 calls and got off the phone about 810pm. I had to be wrapped up by 8pm.

Overall it went well. I was not nervous. I was just anxious to actually talk to people. Most of the people called were disconnected. I left messages on several Voicemails leaving my Name, Message and my Number clearly and slowly broken down to groups so it’s easier for them to write down the number. If they are unable to understand or write down the number then they will not call me back.

Many people who are in trouble screen their calls. Basically, they let it go to voicemail to see if they want to call that person back. Since you want to buy their house there is a good chance they will call you back. Make sure they can understand your name, message and your phone number so they can call you back. You can’t make a deal till you talk to people. Find out their situation and how to resolve their problem.

Some of the people owns more than one property and had more than one phone number. I called all the numbers I had.

On each property I called, I took notes about what happened on each call. I even take notes if the phone was disconnected or not in service or if I left a message on their voicemail. When I talk to people about their house I take notes. Notes will help when you when you are dealing with 10+ properties all that the same time.

I will keep you updated on what I am doing and dropping helpful hints along the way.

I made 13 calls

2011-07-18T11:20:00.000-04:00

Well, I made a few calls to people who are facing foreclosure this morning. I was nervious, I admit.

The 1st person I called out of the gate, I verified their names and young lady said yes thats them. Cool. I said I was looking to buy some properties in the area and do they need to sell. She said I had the wrong number and hung up. I chuckled. No worries I will call them back later. I will also mail a letter or 10. LOL.

I called a total of 13 people. The others are nothing to write about. Left a few messages. Game my name and repeated my phone number slowly....twice. I'm twice the guy of most people. Most of the phone numbers were disco or not in service.

I will call all the numbers again. I will also write letter to all the owners.

I will keep you all up to date with whats going on. I will make more calls later. Its getting to be lunch time and I am at Panera Bread and people are starting to come in. Getting loud.

I have started. Have you?

What have I been doing for the last week?

2011-07-15T18:58:00.000-04:00

Well for last couple weeks I have been finding People who are in foreclosure or expired. Recording the information I am finding. Only if I can find a phone number for the owner. I also recorded any sales information, last sales information and Foreclosure information I could find.

The reason for only people that have a phone number is I need to get over my nervousness about making calls to others.

I will make an introductory call to see if they want to see to me. I am looking to buy property in distress During the process of buying it I will market it to find a buyer. I will only market to find a buyer after I have the property under contract to buy it.

I will let you know how many calls I make and how they go.

New Starts Helping others

2011-07-15T18:01:00.000-04:00

It’s time to get started building my Real Estate Empire. SO this blog will be dedicated to my journey of nothing to Billions. It is dedicated of how a person can get started step by step by someone one who is doing it.

It will cover how I buy and sell property. How I approach sellers and buyers, make calls, write contracts, find buyers, negotiate and sell a property. I will also cover other items as well. Like Book recommendations, Audios, Videos, YouTube videos and other motivational items. Things that will help overcome fears or objections on getting what you want and deserve.

1) Define YOUR DREAM and get a burning desire for its achievement. - People tell me all the time that don’t know what they want or can’t narrow it down to one item. Here is one way to find out what is most important to you. Write down on several pieces of paper everything that you really want and need. If family is important to you put it down on a piece of paper. Write down the top 10 or 20 things you want. When this is done pic up 2 pieces of paper and of those 2 which do you want or need more. Put the one you can do without face down in a pile away all the others. Then pick up another paper and of those which one do you need more? Keep narrowing it down more till there is only one left. That is what you are working for. Get pictures of you with what you want or put a picture of you in with what you want. Keep a picture of it with you. Put Pictures everywhere on mirror and on your steering wheel. Keep it in front of you so you stay motivated.

2) Make some Commitments - This is going to take some work and action to accomplish. Even if you win the lottery you need will to have some knowledge of what you are doing and the market conditions. It comes down to what are you going to do so you achieve your dream?

3) Use the Product - If you are buying and selling real estate then you should own and live in some of your own property. If you are selling Ford cars then you should be driving a Ford and not a Corvette. This is being loyal to your own product or service.

4) Get a prospect - Constantly finding people who will sell or buy from you. In Real Estate its finding people who need to sell and will knowingly take less than what the house is worth then finding people that know you are buying it less then what you’re selling it to them for. They actually know they are paying more for the property and they are still getting a deal. Even in the middle of buy and selling you are looking for more buyers and sellers. OR If you’re going to be a landlord finding properties to buy and hold to rent out.

5) Share the Program - Letting others know what you have available and how you can help them. If they need to sell you are showing them creative ways that you can buy their house so they get what they want. If they are looking to buy then you share how you can sell them their home that they can afford.

6) Answer Questions, Overcome Objections, Follow up and Follow Through - People are always going to have question and objections. They want to know you are committed to helping them and to know that you’re knowledgeable. Their questions are their test of you. Their Objections is just a challenge for you to overcome. The more objections you overcome the more they respect you. The area that most people falter on and lose is the Follow up. Make a connection with people and then never call them back and the deal goes to someone else. It’s the investor who calls back the person and stays in touch creates a deal. If you want the deal then stay in touch with people.

7) Start the person right - Be knowledgeable about the process of buy and selling property, the market and have all the paperwork available. Keep it Simple and explain it in a way so they understand it. Make them feel comfortable with the process. Stay in contact with them and update people with the process.

8) Plug into the system - Get a system and create a cookie cutter way of doing business. Good systems will simply the whole process. They are the backbone to all successful businesses. So you can teach your assistance how to better assist you so you can pass the tasks that you don’t like to other people. You get to do what your good at and enjoy!

This is of my journey and also the start of your journey as well. Remember to share your stories and experiences here.

6 easy ethical slip-ups

2011-05-24T21:43:00.000-04:00

CHICAGO – May 11, 2011 – Bruce Aydt, Realtor® Magazine columnist and real estate ethics instructor, receives hundreds of questions a year from Realtors confronting various ethical dilemmas. Here are some of the most prevalent problems he’s encountered in the past year.

1. Not revealing your state of licensure. On your website, you need to include a note disclosing the state in which you hold your real estate license. The note could say something like “Licensed in Illinois,” “Illinois Licensee” or “Illinois Broker.”

2. Blogging or tweeting without making company affiliation evident. In any real estate-related communications on Facebook, Twitter or other social media sites, you must include your company name in the posting or make it accessible via a link back to your company name (like your username’s link to a profile page). Your company name also must appear in all advertisements.

3. Failing to disclose a short sale. You have an obligation to know your MLS and state license law rules on short sales and to disclose a potential short sale when it’s required in those rules.

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Items 4-6 at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=259834

1 in 4 homes with mortgages underwater

2011-05-24T21:40:00.000-04:00

SEATTLE – May 11, 2011 – Home values in the United States fell faster in the first quarter of 2011 than they have in any quarter since 2008, according to Zillow’s first quarter Real Estate Market Reports. The Home Value Index fell 3 percent from the fourth quarter of 2010 to the first quarter of 2011, and declined 8.2 percent year-over-year to $169,600. Home values have fallen 29.5 percent since a peak in June 2006.

About 28.4 percent of single-family homeowners with mortgages were underwater at the end of the first quarter, up from 27 percent in fourth quarter 2010. A homeowner is underwater when they owe more on their mortgage than their home is worth.

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More information including Fl at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=5&id=259846

NAR: creditworthy homebuyers need help

2011-05-24T21:36:00.000-04:00

WASHINGTON – May 11, 2011 – The pendulum on mortgage credit has swung too far in the other direction after the recent housing downturn, says a panel of industry experts. Tighter standards are putting an unnecessary burden on creditworthy consumers, impeding the economic and housing market recoveries.

The panel addressed several thousand Realtors® gathered at a symposium, “Ensuring Mortgage Availability for Creditworthy Homebuyers,” during the Realtors 2011 Midyear Legislative Meetings & Trade Expo in Washington, D.C., this week.

“As the leading advocate for homeownership, the National Association of Realtors (NAR) believes that we cannot have a viable housing or economic recovery until creditworthy homebuyers are able to obtain mortgage financing,” said NAR President Ron Phipps. “Reforms were needed to get rid of the harmful products that led to the housing meltdown, but continuing to curtail access to affordable credit for qualified home buyers affects the entire economy.”

Panelists offered their perspectives on the current state of the industry and identified challenges.

David H. Stevens – former assistant secretary of the U.S. Department of Housing and Urban Development, former Federal Housing Administration commissioner and incoming president and chief executive officer for the Mortgage Bankers Association of America – told attendees the entire financial industry made bad decisions regarding risky loan products, and there is no doubt that reforms are needed to get back to a level of sustainable access where qualified consumers are able to achieve homeownership.

According to the 2011 NAR Member Profile, 34 percent of Realtors say that the most important factor in limiting their clients’ ability to buy a home was difficulty in obtaining a mortgage.

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Lend More at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=4&id=259862

Listing data not from MLS has more errors

2011-05-24T21:32:00.000-04:00

NEW YORK – May 11, 2011 – Listing data that doesn’t come directly from multiple listing service (MLS) data is more likely to have inaccurate price and status information, according to research by Trulia.

Trulia found that third-party syndicators of listing data that didn’t come directly from an MLS posted a 21.3 percent error rate regarding the listing’s price or status. Trulia says the problem is that real estate professionals submit the data to these syndication sites but often fail to return to the site to update the listing when information changes, which causes a “significant increase of disparate data sources resulting in less accurate data online,” according to Trulia.

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More Data at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=259850

Mortgage fraud reaches record high

2011-05-24T21:27:00.000-04:00

MIAMI – May 11, 2011 – Scammers are changing their schemes to take advantage of a distressed real estate market. Reports of mortgage fraud in 2010 reached the highest level on record, the Treasury Department reports.

Suspected mortgage fraud activity increased nearly 5 percent to 70,472 “suspicious activity reports,” according to the Financial Crimes Enforcement Network. That’s up from 67,507 in 2009 – and a dramatic increase compared to 37,000 mortgage fraud reports in 2006 during the housing boom. The agency estimates more than $1.5 billion in losses from mortgage fraud in 2010.

Mortgage fraud reports include everything from borrowers falsifying information on loan documents, fraudulent appraisals, to elaborate schemes that target homeowners underwater on their mortgage.
Reports of suspected mortgage fraud have continued to rise since the housing boom.

However, while the number of reports of mortgage fraud continues to rise, the number of new fraud cases has actually decreased, the LexisNexis Mortgage Asset Research Institute reports. Mortgage fraud cases dropped 41 percent between 2009 and 2010, the biggest drop since the institute began to track reports. The drop was attributed to a decrease in home loans from banks tightening lending standards.

“We’ve got lower originations, less loan volume, less attention being paid to in terms of what’s happening to those loans and tighter credit scrutiny,” says Denise James, who co-authored the report.
Where fraud is the most prevalent

The states with the highest incidence of mortgage fraud are:

1. Florida (which also led the nation in 2009)

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There is no reason to commit fraud. Be honest. Dont even try to work in grey areas. If a mortgage person want a buyer to work a gray area then that buyer should RUN! Its not worth it.

See the other citties

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=259858

Lenders now own 872,000 homes

2011-05-24T21:10:00.000-04:00

WASHINGTON – May 24, 2011 – U.S. banks and money lenders now own 872,000 homes, a number that could more than double in the coming years, real estate research firm RealtyTrac said.

The current number of properties owned by banks and lenders is nearly double what they owned in 2007, before the housing market began to collapse, The New York Times reported Monday.

Lenders frequently sell homes at a substantial discount and economists expect it will take three years for lenders to sell the properties they have taken over.

That means for the next three years at least, the sale of so-called distressed homes will continue to slow a recovery in the housing market.

“It remains a heavy weight on the banking system. Housing prices are falling, and they are going to fall some more,” said Mark Zandi, chief economist of Moody’s Analytics.

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Thats alot of homes. VACANT!

Reason? Most Banks are very slow to Sell to CA$H Buyers. Especially for short sales.

Read more at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=4&id=260334

More paying zero taxes

2011-05-24T21:06:00.002-04:00

TAMPA, Fla. – May 24, 2011 – Florida’s turbulent housing market has had an unintended consequence: Thousands of homeowners don’t pay a dollar in property tax.

No, this isn’t a real estate scam. Blame higher homestead exemptions and falling home prices that essentially removed houses from the tax rolls.

“It’s a basic fundamental in American society and tax policy that everybody should pay something,” said Warren Weathers, chief deputy for the Hillsborough County property appraiser’s office. “Some of these (exemptions) were created for people who barely have anything, and that’s not bad. But there are people ... that have the ability to pay that don’t pay some of their fair share.”

It couldn’t have come at a worse time for budget-conscious municipalities. The exemptions cost the county millions in property tax revenue, and that’s on top of millions lost because of falling values. Hillsborough County saw property taxes owed go from $1.9 billion in 2008 to $1.7 billion in 2009 to $1.5 billion in 2010.

For many of those with tax bills of zero, their properties are valued less by county property appraisers than their qualified homestead exemption, usually $25,000. For properties worth more, a $50,000 exemption brings the tax bill down to almost nothing.

In Hillsborough, more than 7,000 homeowners didn’t pay property taxes last year, according to data from the property appraiser’s office. That’s up from 4,920 in 2008.

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Yea theres more at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=260338

New-home sales up, but pace remains sluggish

2011-05-24T21:04:00.002-04:00

WASHINGTON (AP) – May 24, 2011 – More Americans bought new homes for a second straight month in April, a hopeful sign. Still, sales remain far below the pace that would represent a healthy housing market.

New-home sales rose 7.3 percent last month to a seasonally adjusted annual rate of 323,000 homes, the Commerce Department said Tuesday. A normal housing market would mean a pace of about 700,000 new-home sales a month.

People have little incentive to buy new homes, in part because they’re comparatively expensive. The median price of a new home rose more than 2 percent from March to $217,900. New-home prices are more than 30 percent higher the median price of re-sales – twice the normal markup.

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More at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=260342

NAR Call for Action: No 20% downpayment rule

2011-05-23T19:31:00.000-04:00

WASHINGTON – May 19, 2011 – Could all buyers afford a 20 percent downpayment?

The National Association of Realtors® asks members to imagine what the real estate market would look like if every buyer needed a 20 percent downpayment to get a mortgage. How many potential buyers would miss out on the American Dream? And what would that do to a market already saturated with repossessed homes?

According to NAR, that 20 percent requirement is a very real possibility if the new regulations governing Qualified Residential Mortgages (QRM) take effect this year.

NAR says that Congress must understand the impact this rule will have on home sales, and it is asking all members to contact their personal senator and representative. The Call for Action email developed by NAR asks lawmakers to tell regulators that a 20 percent downpayment was not their legislative intent. Instead, regulators should implement a more reasonable Qualified Residential Mortgage (QRM) that will keep creditworthy buyers in the market and able to get a loan.

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This is important. What are your thoughts.

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http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=260130

Florida’s existing home, condo sales rise in April 2011

2011-05-23T19:28:00.000-04:00

ORLANDO, Fla. – May 19, 2011 – Florida’s existing home and existing condo sales rose in April, according to the latest housing data released by Florida Realtors®. Existing home sales increased 2 percent last month with a total of 17,192 homes sold statewide compared to 16,781 homes sold in April 2010, according to Florida Realtors. Statewide sales of existing condos last month rose 17 percent compared to the year-ago sales figure.

Twelve of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in April; 14 MSAs also had higher condo sales. It’s the fifth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condo sales statewide.

“Market conditions remain optimal for qualified buyers with strong credit,” said 2011 Florida Realtors® President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Mortgage interest rates are under five percent, a range of housing options is available at very affordable prices, and the economic recovery continues to strengthen. Realtors across the state are reporting increased interest from buyers ready to find their Florida dream home.”

Florida’s median sales price for existing homes last month was $131,700; a year ago, it was $140,300 for a 6 percent decrease. However, April’s statewide existing home median price was 4.3 percent higher than it was in March. Analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

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Read more....Good stuff

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=260134

Uncover best investments with the right data

2011-05-23T19:24:00.000-04:00

NEW YORK – May 20, 2011 – Supplying key housing data based on ZIP code – instead of an entire geographic area – can give investor clients greater insight into short-term and long-term appreciation potential of a property and help them make more informed decisions, experts say.

Here are three key pieces of data that real estate professionals can provide to help uncover homes with the greatest probability for appreciation:

▪ Home valuations: Home valuations by ZIP code compared with the foreclosure inventory for that same ZIP code can offer insight into the health of the area’s housing market.

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Read more

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=260192

Mortgage forms to get more consumer-friendly

2011-05-23T19:20:00.000-04:00

WASHINGTON – May 23, 2011 – Borrowers may soon have an easier time sorting out all of those key details and expenses associated with their mortgage as well as more easily compare loan terms when trying to shop around for a mortgage that works best for them.

The Consumer Financial Protection Bureau recently unveiled its “Know Before You Owe” project and is seeking public feedback on two “consumer-friendly” prototype mortgage disclosure forms that will replace the current required disclosure forms by July 2012.

The prototype forms itemize key costs associated with the mortgage, including total closing costs, monthly payments and projected monthly payments for future years. The forms also provide more details about the mortgage’s terms than the current form does.

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My View? THey need to speed up the process. Banks need to make a decision and stick to it. WHen Selling or Lending.

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Read more at

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=260284

Census: Housing top reason to relocate

2011-05-23T19:12:00.000-04:00

WASHINGTON – May 23, 2011 – Among those who moved between 2009 and 2010, more than four out of 10 (16.4 million or 43.7 percent) did so for housing-related reasons, such as the desire to live in a new or better home or apartment, according to data from the U.S. Census Bureau’s “Geographical Mobility: 2010.”

Among other reasons for moving, people cited family concerns (30.3 percent), such as a change in marital status, employment needs (16.4 percent) and other factors (9.5 percent).

In 2010, 37.5 million people 1 year and older changed residences in the U.S. within the past year. At 12.5 percent in 2010, the mover rate was not statistically different from 2009.

“Mover rates differ by characteristics, such as age, race, Hispanic origin, marital status, income or even whether the housing unit is owned or rented,” said David Ihrke, survey statistician in the Census Bureau’s Social, Economic and Housing Statistics Division. “Tracking mobility allows us to examine shifts in demographic trends in the population for the nation, regions and metro areas as a whole.”

In 2010, 69.3 percent of all movers stayed within the same county, 16.7 percent moved to a different county in the same state, 11.5 percent moved to a different state, and 2.5 percent moved from abroad to the U.S.

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Read More at
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=260288

Top 10 real estate web sites

2011-05-18T16:29:00.000-04:00

CHICAGO – April 21, 2011 – Which real estate web sites are fielding the most traffic on the web? Experian Hitwise recently released data showing which real estate sites get the biggest market share in visitors.

Here are the top 10 most visited real estate web sites for March 2011:

1. Realtor.com
2. Yahoo! Real Estate
3. Zillow.com
4. Trulia.com
5. Rent.com
6. Homes.com
7. MSN Real Estate
8. AOL Real Estate
9. ZipRealty
10. Apartment Guide

Source: “Top 10 Real Estate Web Sites for March 2011,” Marketing Charts (April 20, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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Some web sites I, Andy Carson, uses:

MrDowntownOrlando.com (Real Estate News)
Postlets.com (Marketing/Selling Property)
AndyCarsonLaughs.com (Search MLS)

Google.com (Your County) Property Appraiser --- Its public records
OCPAFL.org (Orange County)
Rentometer.com (Check Rents in an area)

City-Data.com
Zillow.com
HUD.gov

CFRI.net (Central Florida Realty Investors) One of the best Investor Associations of ALL TIME!
VA.gov
occompt.com Orange County Comptroller

ocpafl.org Orange County Property Appraisers Florida
buildinggreen.com
sunbiz.org

myfloridalicense.com DBPR Department of Business & Professional Regulations
donotcall.gov Do Not Call   Good luck. Not friendly to businesses. AND we can only search limitedly
entrustfl.com    IRAs Individual Retirement Accounts Lets you control your retirement. You can lend YOUR money to people like me to buy Real Estate and charge interest. So you can charge me 6% or more which is more than you can get with a savings account.
hud.gov

Others

Facebook.com    Mine is facebook.com/AndyCarsonLaughs