Happy Fourth of July!

Like so many of you this weekend I will be celebrating the birth of our wonderful nation with friends and family.  As we gather together and raise our eyes to the heavens to watch explosions of color and light, all set to a sound track of a collective of ooohs and ahhhhs, we will all be asked to remember the wonderful heroes and heroines who have helped to make this country great.

I love the way my family enjoys this one mid-summer holiday.  Of course there will be other barbeques and family weddings to celebrate this summer.  But in all likelihood this is the last time the entire family will gather together until the annual Labor Day celebration.  There will be food and music, more food, laughter and yet more food.  I will see cousins that I haven’t seen in months and I will kiss babies that I have only heard about and have not yet met.  What a wonderful way to celebrate the birth of our nation.

My wish for you this Holiday Weekend is a safe celebration with those who are near and dear.  Happy Fourth of July!

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

ISLAND ADVANTAGE and   are service marks of Island Advantage Realty, LLC

Potential

With the Olympics just around the corner, there is evidence everywhere of the benefits of hard work.  I love to look at the rainbow of top performing athletes and realize that when they were one year olds they were all struggling to learn to walk, just like the rest of us.
I wonder when their parents looked at them and thought they had Olympic potential.

I like to look for potential where ever I am. I guess it has a lot to do with the work I do.  I work in the REO real estate market.  Everyday I see and show homes that have frankly fallen into a state of disrepair.  Sometimes the disrepair is minor, other times it borders on major.  In either case I like to look for potential. 

When looking at homes I try to judge the character of the house not necessarily the appearance.  We have all watched enough television to know that a kitchen counter top can be replaced and add a whole new look, without having to tear down any walls.  On the other hand moving the kitchen from the back of the house to the front, well, that is a costly and time consuming undertaking. 

Potential in a home could mean a great location, a perfect floor plan or an idyllic back yard.  I would hate to miss such potential because I was focusing on a stain in the carpet. It’s important to look for the potential in REO properties. Remember even Olympic athletes struggled to walk at one point.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

ISLAND ADVANTAGE and   are service marks of Island Advantage Realty, LLC

What Kind of REO is Right for You?

There are a wide variety of REO properties available on the market right now; more than ever before.  They are available in every size, shape, color and style; they are available in practically every neighborhood.  So the question remains, what kind of REO is right for you?

Most REOs are offered at a discount because they are offered “As Is”.  There are some REO properties that are in tremendous shape with little or no repairs necessary.  Obviously the discount tends to be smaller on these properties, but there is still a substantial savings. 

What we in the industry are beginning to see, is that as more people are learning about REO property and the amount of money they can save; more and more people are making offers on REOs.  You’ll want to make sure to use a realtor with strong REO experience who can guide you through the “offer process”.  Otherwise you could find yourself out bid and out of luck.

There are some REO properties out there that are in need of extensive repairs.  These properties are not for everyone.  They are for savvy buyers who know the time and money that are required to make repairs.  For these individuals making an offer will involve knowing a realistic timeline and budget in order to make the property habitable.

And of course there are ample REO properties that are somewhere in the middle, a great discount with a bit of repair work needed, but nothing extensive.  What kind of REO is right for you?

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

ISLAND ADVANTAGE and   are service marks of Island Advantage Realty, LLC

As Is

We all understand the term “As Is”. Most of us have purchased something in our lives that was sold “As Is.”  But have you ever considered buying real estate “As Is?” Perhaps it is something you should consider. 

REO property is generally sold “As Is.”  REO stands for real estate owned.  This is the term used for properties that were foreclosed upon and then did not sell at auction.  Now the property has reverted back to the bank or lender and will be sold to recoup the original debt along with any other expenses the property has incurred through the foreclosure process.

Because these properties have sometimes sat vacant for a month or more and because they are being sold by an institution not and individual they frequently are in need of repairs and cosmetic fixes.  If an individual were selling the property they would more than likely invest a little money in repairs in hopes of getting a higher bid.  Banks are usually willing to offer these properties at a discount in order to avoid the time and expense of making repairs.

Buying a home “As is” can save you a great deal of money.  Just make sure that you inspect the property before making your bid so you have a firm grasp of what repairs will be necessary; by doing so you can find yourself saving a substantial amount on your next real estate purchase.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

ISLAND ADVANTAGE and  are service marks of Island Advantage Realty, LLC.

 

 

 

 

 

 

 

 

 

 

 

 

 

Too Good To Be True

My friend Alex is my favorite skeptic.  He is always saying, “If it seems too good to be true, it probably is.”  I just laugh at him. I think it is all a matter of perspective.  I believe in the theory of “The Good Deal”  A good deal is when all of the involved parties walk away from the table and are happy with what they have received.  This is why I work in the REO market; it is the land of “The Good Deal”

When Banks and Lenders have REO inventory, they are interested in one thing.  They want to sell the property and recoup/secure their investment. Banks are not in the business of property management. They are not interested or equipped to maintain and develop empty properties.  It is an added expense for banks, so they look to sell these properties quickly.  The best way to sell property quickly is to sell at a lower price.  Please understand the banks are not giving properties away.  They will look to secure a loan from a prospective buyer for the “Fair Market Value” of the property, minus repairs and other allowances for other issues.

For those of us who are looking for “The Good Deal,”  REO properties present a wonderful opportunity.  You can buy an REO for considerably less than market value and make repairs on your own terms.  It isn’t a deal that is to good to be true, it’s just a good deal for someone who wants to save money but is willing to make repairs.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

 

What is REO?

I am often amazed at how many people still don’t know about the benefits of purchasing REO property.  For those of you are trying to self educate, you’ve come to the right place.  REO stands for Real Estate Owned, this designation is given to property that was foreclosed upon and then did not sell at auction. Now the bank of lender who held the original note is the official owner of the property.  Banks and Lenders are interested in selling the property quickly so they can recoup their original investment.

What is so exciting about REO?  When banks offer these properties it is usually at a hefty discount.  The national average is between 10 and 30% below market value.    Imagine buying a house and saving tens of thousands of dollars on the purchase price!

REO homes come in a wide variety of shapes, sizes and conditions.  Some of them need substantial work others do not.  If you are interested in purchasing real estate at a hefty discount, this is the summer to do it. At Island Advantage Realty of New York, we specialize in this type of property.  Give us a call and we will show you all the exciting options available in your area.
The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

The Glass is Half Full

I  hear all the bad news, but I get to see the positive side of our economy every day.  Two years ago the economy was “great” the housing market was “great”, that’s what every one said.  But prices were so high that many families were not able to buy that all important first home.  I remember talking to a single mom who basically said to me that she had given up on the idea of ever owning her own home.  She had decided to accept that renting was a way of life.  That was when everything was “great”.

Just the other day I saw that single mom walk across the threshold of her new home.  She bought an REO property. She got a great deal and was able to qualify for the loan with a down payment of only 3-5 %, because the property was purchased for below market value.  Walking in her front door she had more than $80,000 dollars worth of equity in her home.  Talk about a reversal of fortune!  She is paying less than she was to rent and she has more space to raise her children.

There are advantages to today’s market if you are willing to see the glass as half full.  For many families this economic climate is an opportunity to finally fulfill their dream of home ownership.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

Adding REO To Your Real Estate Investment Portfolio

What would you like your net worth to be on retirement? Do you have a plan to get there? Most investment counselors will suggest that you diversify your portfolio for maximum benefit.  Real Estate can be a fabulous addition to any investment portfolio if it is purchased with the right criteria in mind.  The best investment is a property that is selling for less than it is worth, is in a desirable location and requires a minimum of work in order to be habitable.  REO property has the potential to score high in all three of these categories.

Nationally REO properties sell for an average of between 10 and 30% below market value.  This is a tremendous savings in a market that has already seen a dip in housing values; add an extra 30% discount and you are talking about a potential investment dream.  In ten years this property could be a cash cow, having doubled its worth. 

Even if a property is offered at a tremendous discount it is still important that it be in an excellent location.  Right now there are such a large number of REOs; that there are many neighborhoods to choose from.  There is literally something for everyone.

Lastly, you want to purchase a property that needs a minimum of work.  This doesn’t mean that you should only buy REO properties that need no work; it just means that you should be discriminating about the kind of work that needs to be done.  Many REOs benefit greatly from some fresh paint and new carpeting.  These are fixes that are quick, easy, and cost effective.  If you are interested in properties that require large scale renovations, just make sure to factor in the time line of the necessary construction.

REO property can be a great investment. There are more REO investment opportunities available right now than at any other time in history. Could your portfolio benefit from this type of investment?

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

 

The Winning Ticket

I have a friend that calls owning her REO Property, “living in her piggy bank”.  She calls it that because she was able to buy her property for 18% under market value.  Now instead of making rent payments she is building equity and because she bought her property for significantly less than it was worth she doesn’t have to pay PMI insurance. 

Her payment is actually less than her rent was.  Even at current market values she is saving hundreds of dollars every month.  When the market goes up again, as it inevitably will, she stands to be the owner of a lovely investment. 

We’ve all heard the stories of people who bought homes during other recessions and then sold them 25 years later for hundred’s of thousands of dollars more than they paid for them.  I like my friend’s analogy of “living in her piggy bank” but I have to say that to me it sounds more like winning the lottery.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com

The First Home

There is something so satisfying about watching a family buy a home for the first time.  I never get tired of it.  Owning a home is part of the American Dream. 

When my Grandparents came to this country they were determined to save and to own their own home.  My Dad was eight when my Grandparents’ dream of home ownership came to fruition, but he remembers it like it was yesterday.  I love to hear him tell about the moving truck pulling up and all of my great uncles gathering around the truck to carry all of grandma’s furniture into the new house.  And my grandfather strutted proudly up and down the side walk holding his suspenders and gazing lovingly at the new house. 

My grandparents lived in that home for over 50 years.  In that home they saw all of their children grow, get married and have children of their own.  Family holidays revolved around the smells from that kitchen and the memories served at the dinning room table. I even lost my first tooth in the hallway from the kitchen into the dinning room.

Every time I hand the keys of a home to a family I find myself imagining all of the memories that will be made, memories that will last a lifetime.  Here at Island Advantage Realty, LLC of New York, we pride ourselves on helping families to purchase the most affordable homes available.  Drop us an email and we will be happy to help your family achieve the dream of home ownership.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact Gabriella@IARNY.com