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Archive for August, 2008

Where has the time gone?  It seems like just yesterday it was the Memorial Day Weekend and the long summer was stretched out in front of us like a pristine sandy beach with no footprints in it yet.  And now despite the fact that there are three calendar weeks of summer left, for most of us this weekend will signal the end of our summer schedules.

Time flies.  As you enjoy the long three day weekend I hope you’ll take a moment to reflect on how quickly time passes and how much can change in just a short time.  We are at a unique juncture in the real estate business, one unlike any other.  Right now there are a tremendous amount of high quality REO properties on the market with equally inspiring asking prices. But time will fly and this opportunity will change also.  Don’t let this chance pass you by.  If you have been considering buying REO property now is the time to act. Give us a call at Island Advantage Realty LLC, let us show you how to make the most of your time.

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

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To everything there is a season, including renting and buying.  I am a fan of Suze Orman who is a very straight shooter about telling people what they can afford and what they can’t afford.  Many is the time that I have seen her tell someone that they simply can’t afford to buy a car or a house or a new pair of shoes.  It’s not that Suze is against buying, she’s about fiscal responsibility and looking rationally at what your circumstances are.  I saw her take a young woman to task the other day for leasing her car instead of buying it, taking the woman’s current finances into consideration.

It got me thinking about people who are still renting despite the fact that the cost to rent is actually equal or more expensive in some areas than it is to own a home. Factor in the tax advantages of buying a home and it can be substantially cheaper to own a home and build equity than it is to rent a home and actually throw money away every month.

If you are a renter this is an ideal time to look at the REO market and save money while being able to give your family the gift of home ownership.  For more information on REO properties in the Metro NY or Long Island areas please contact us at Island Advantage Realty LLC.

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

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It’s not unusual to see a real estate property defined as a “fixer upper”.  There is an entire market of people out there who would prefer to buy a “fixer upper”.  Why?  Well, generally a fixer upper will be offered at a discount.  The seller acknowledges that work will have to be done to the home and that they will not be able to get the same price as a home that does not need to be fixed up.  A home owner can buy the home at a discount and then make the necessary repairs at their leisure.  Some people actually revel in doing repairs to their home and putting their personal stamp on the home as they progress.

REO properties are sold “As Is”, these are properties that come with a wide range of issues, and some are fixer uppers, while others, the vast majority, simply have neglect issues.  Some of these homes have been sitting vacant for weeks or even months.  In these cases there are necessary repairs that are easily fixed.  You don’t have to be a “remodeling reveler” to make most of these changes.  Sometimes it can be as simple as ordering new carpeting and getting a fresh coat of paint.  The good news is that these properties are also discounted to reflect the cost of necessary repairs.

So whether you are a remodeling guru or just some one who enjoys a value discount there is something for you in the current REO Market.  For more information about exciting REO opportunities call the recognized industry leader, Island Advantage Realty LLC.

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

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Someone asked me the other day who the typical REO investor is?  I couldn’t answer the question effectively because there really isn’t a typical REO investor.

In my day to day business I see everything from Grandparents to overseas investors to hard core real estate investors.  Right now we have a women’s investment group who is seeking an REO investment for rental property.  They are a group of women ages 17-64 who meet once a month at the public library to discuss investment strategies.  There is nothing typical about these ladies.  They are as diverse and unique as the day is long.  But they have one thing in common, they love a good investment.

We have several clients who are overseas investors.  With interest rates still low and current value of the American dollar, they are taking advantage of the low REO prices to make a solid investment in the future.

It’s too hard to pin down a “typical REO investor” because so many people have reasons to save money and invest it in real estate.  It would be like asking who a typical grocery market shopper is – “People who like to eat!”  People who buy REOs are people who like to save money and want to invest in their financial future.

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

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A home doesn’t become REO property overnight; it is actually a rather lengthy process.  First there is an extensive foreclosure process after which a property will be offered at auction.  If the property fails to sell at auction it will then become REO or Bank Owned property.  At that time the bank with generally bring in a real estate professional to assess the situation and begin to list the home.

One of the issues that arise from such a long process is that often there is no one providing upkeep on the home during the process.  The bank doesn’t legally have the right to enter the property until it is deeded to them and when a home owner is in the process of loosing their home to foreclosure they tend to have other issues on their mind than maintaining the home.

This can create some undesirable side effects.  It’s not unusual to see overgrown lawns, untended landscaping, broken fixtures, soiled carpets, broken windows and a general sense of neglect when looking at a REO property.

The good news is that repairs from neglect are usually easily fixed and whether the repair is large or small the cost of the repair will be deducted from the cost of the home.

With just a little time and tender care these homes can easily be restored to their natural beautiful state.  If you are interested in more information about REO properties in the Metro NY or Long Island areas please contact Island Advantage Realty LLC.

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

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First, let me say that at Island Advantage Realty LLC we deal with a wide range of REO property, most of which needs only minimal repair work.  Occasionally, we will get a property that has more extensive damage that will actually need a very specific investor who is actually looking for a home to basically gut and start over.

I was talking to a colleague in another part of the country the other day and he was sharing a story about just such a home and just such an investor.  It was such an amazing story, I asked if I could share it. Please know that I have changed some info to protect the identity of the investor.

My colleague had a listing for a REO property that was in a deplorable state of repair.  It was so bad that it sparked my friend’s memory of a client who had called him the year before with some very specific requests, she was looking for a property with a specific location and a specific square footage.  That isn’t all that unusual, most clients have similar guidelines.  What made this woman unique was that she was looking for a very specific floor plan and nothing else would do.  After showing her many homes, my friend asked if maybe she should consider hiring an architect and building her home from scratch.  She didn’t want the expense and there was no vacant property in the desired location.  The woman asked my friend to notify her if her dream floor plan became available.

As my friend surveyed the REO in deplorable shape it occurred to him that whoever bought the property would need to gut it and basically start over.  To make a long story short he called the client and she loved the location and size of the home.  It was a sizable reconstruction but even after implementing her ideal floor plan the expense of the home was just under market value.  The client is happily ensconced in the home of her dreams in her ideal location.  I love a good REO success story!

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

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The REO market is booming in the Metro NY, Long Island area right now.  Despite the publicity that this huge market is receiving now, there is still some confusion among the general public about what REO property really is.  Here are some frequently asked questions and my answers:

What is REO property?
REO stands for Real Estate Owned, this is a term for property that has been foreclosed upon and failed to sell at auction.  The bank or lender now owns the property and will look to sell it for fair market value minus repairs.

Aren’t REO properties usually in bad shape?
Some are, some are in relatively good shape needing only minor repairs.  The important thing to remember is that REO property is sold “As Is” and the asking price will reflect how much repair work the home will need.  The more damage the lower the asking price.

Isn’t it risky buying REO property?
Not if you work with professionals.  REO property is very similar to buying traditional real estate.  You can inspect REO property and even have professionals write estimates before making an offer.

Is financing different when purchasing REO?
Generally it is the same or very similar.  The only difference is that escrow for REO property  is usually quicker and almost always has a very strict timeline.

Do you still have questions about REO property?  Give us a call at Island Advantage Realty LLC.  We’ll be happy to answer all of your questions.

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

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