Feeds:
Posts
Comments

Archive for June, 2008

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

 

Read Full Post »

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

Read Full Post »

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

Read Full Post »

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

 

Read Full Post »

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

Read Full Post »

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

Read Full Post »

My Aunt Harriet is a brilliant negotiator.  Seriously, as a child I learned more about persuasion from a trip with Aunt Harriet to the local butcher than any seminar of the subject could possibly offer. 

Part of Aunt Harriet’s strategy was to always have the “inside scoop”, for instance at the local butcher, she would always conduct her transaction and her final words would be, “And make sure you give me the Peterman discount.”  The butcher would nod and walk away smiling.  In this particular case “The Peterman discount” referred to Dr. Peterman, the neighborhood GP, who received a 10% discount that no one but Aunt Harriet seemed to know about.  And it worked, just by asking for it Aunt Harriet would get an extra discount.

I remember the first time I told Aunt Harriet that I was going to specialize in REO real estate.  Like a lot of people she had never heard of REO.  I remember her eyes lighting up as I explained to her that a person can save between 10 and 30% on a home purchase just by buying REO.  I explained to her that the “REO Discount” is generally because you are buying the property “As Is” and there are frequently repairs that need to be made to the property.  But, Aunt Harriet, being a smart business woman quickly saw that this was a way to save a great deal of money. Aunt Harriet was impressed with the “REO Discount”.  Of course she calls it the “The Gabriella Discount” and tells all of her friends to make sure they get “The Gabriella Discount” if they are buying real estate. 

It makes me smile, but the truth is that the discount on REO property is available to everyone.  You don’t have to be a great negotiator, you don’t need to be referred, all you need to do is call Island Advantage Realty, LLC in New York and we’ll be happy to get you “The REO Discount”

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

Read Full Post »

Older Posts »