The majority of us can certainly understand the need to tighten up the mortgage industry after the fallout from too many subprime and high risk loans which failed a few years back. However, the punishment still doesn't fit the crime.
Getting a mortgage continues to become even more of a challenge these days, with upcoming additions to the process potentially raising costs for consumers and for mortgage brokers starting in April. At this point in the real estate crisis, issuing mortgages is no longer the problem.
New research starts out as a positive statistic, to indicate that more investors are paying cash for properties as they take advantage of the good deals out there for buyers. New research of the Southeast Florida market (from Palm Beach to Miami) shows that more than 54% of houses and condos sold there during the 4th quarter of 2010 were paid for in cash. (This research was provided by Zillow.com.) That comes to more than 7,500 sold properties PAID FOR WITH CASH!
The purpose of these statistics is to show that homes are selling and the deals for buyers are good. And that could be. In 2006, about 13% of homes were purchased with cash. From a little more than one in ten to more than half - in under 5 years. Of course, in 2006 there were plenty more mortgage programs more easily available.
What does today's trend have to do with the banks? Plenty.
Face it, the majority of the 7,500+ homes paid for with cash were bought by investors. I'm sure a percentage of them bought more than one property at these low prices.
Yet, these investors paid in full instead of going for mortgages. If you have the cash, you'll get a mortgage. But in just this one slice of the country, there were about 7,000 possible mortgage transactions that did NOT happen. It's time to look at why.
My guess is this is because of how little the banks have to offer in return for cash today, even when compared with 2006 when mortgages were the vast majority. A savvy investor wouldn't put up the entire $200,000 for a condo when they could get a decent return on a long-term CD instead. So they would get a mortgage, enjoy the tax advantage, and pay it off as scheduled, while investing the remainder of their funds someplace else.
It could have been CD's, Money Market, or other bank programs that paid more than the paltry amount they pay now. No reason for investors to look in that direction today.
If getting a mortgage wasn't such a hassle, a savvy investor could make a $40,000 down payment on 3 separate properties valued at $200,000 each, and have working capital left over to pay the mortgages for months to come. Then, they could invest their "working capital" into short and long-term CD's to grow their money toward future property payments, or use a home equity loan on one property to help pay down the others.
But now, these investors are passing by the mortgage opportunity and putting their trust into turning a profit as the market turns for the better. Heck, if an investor were to sell later this year and only make $5,000 more on a $200,000 property, they would likely do better than with a 6-month CD.
Some consumers watch for trends by investors. Now they can see that a bigger percentage of people buying property are NOT getting a mortgage, even when they could. Not exactly an incentive for the typical consumer to want to take out a mortgage to buy another property.
Oh, I also have a hunch that the 7,500+ sellers who received cash from the buyer probably didn't use their money to start a savings account and watch it grow.
Hopefully the banks will do what it takes to bring back the home mortgage as a viable option, before it's too late.
Showing posts with label florida. Show all posts
Showing posts with label florida. Show all posts
Monday, March 7, 2011
Friday, April 9, 2010
Listing of the Day - St. Augustine FL
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
1323 Powis Rd. St. Augustine FL 4 + 4 $275,000
http://homes.jacksonville.com/realestate?tp=homes2.jacksonville.com&classification=mdRealEstate&temp_type=detail&listing_id=43830433
This advertisement is actually quite interesting. The potential buyer is not told this is really for a Short Sale until the very last part of the description copy, appearing at a point by which they have been well 'sold' on the appeal of this property.
It will be interesting to check the reaction of my clients as well as agents who always read these critiques about the ethics of burying the fact that this is for a Short Sale. From a marketing standpoint, I'm somewhat impressed at how the agent does her job of "selling" the property first. Well, almost first.
The primary photo is an impressive view, showing the scope of the home with the photo taken at the best possible angle to show the large driveway and 3-car attached garage. However, there are no interior photos at all on the spread, and that is a big waste of opportunity. A family (or investor) looking at a 4-bedroom home, especially one that shows as well as this one does from the exterior, is bound to be curious to see how the inside looks. In addition, the side and back exterior photos appear to be taken in different light and make the house look to be in a different color than the front. While I can understand showing a home in relation to a pond or lake, we don't know whether this photo was taken looking from the home for sale, or from across the pond looking toward it. At least two of these photos should have been interior shots.
Although the description copy highlights several prime sales points, the "Realtor fluff" that starts it out should be eliminated and it would make the copy much more effective. The "Look no further" bit explains absolutely nothing about the property.
I like how the description copy (after the first line) provides an excellent balance of interior and exterior selling points. It furthers the point about the need for interior photos to appear within the picture spread and what a tremendous reinforcement opportunity is lost.
Holding off revealing this is a Short Sale until the end could entice investors to pursue it, but might lose a family looking for a home for the immediate future. Personally, I prefer this approach, since it reflects better on the listing agent. Far too many agents listing short sales make it obvious they spent about 10 seconds on the advertisement and make an investor skeptical that the agent is capable of getting a deal done.
GRADE: B-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
1323 Powis Rd. St. Augustine FL 4 + 4 $275,000
http://homes.jacksonville.com/realestate?tp=homes2.jacksonville.com&classification=mdRealEstate&temp_type=detail&listing_id=43830433
This advertisement is actually quite interesting. The potential buyer is not told this is really for a Short Sale until the very last part of the description copy, appearing at a point by which they have been well 'sold' on the appeal of this property.
It will be interesting to check the reaction of my clients as well as agents who always read these critiques about the ethics of burying the fact that this is for a Short Sale. From a marketing standpoint, I'm somewhat impressed at how the agent does her job of "selling" the property first. Well, almost first.
The primary photo is an impressive view, showing the scope of the home with the photo taken at the best possible angle to show the large driveway and 3-car attached garage. However, there are no interior photos at all on the spread, and that is a big waste of opportunity. A family (or investor) looking at a 4-bedroom home, especially one that shows as well as this one does from the exterior, is bound to be curious to see how the inside looks. In addition, the side and back exterior photos appear to be taken in different light and make the house look to be in a different color than the front. While I can understand showing a home in relation to a pond or lake, we don't know whether this photo was taken looking from the home for sale, or from across the pond looking toward it. At least two of these photos should have been interior shots.
Although the description copy highlights several prime sales points, the "Realtor fluff" that starts it out should be eliminated and it would make the copy much more effective. The "Look no further" bit explains absolutely nothing about the property.
I like how the description copy (after the first line) provides an excellent balance of interior and exterior selling points. It furthers the point about the need for interior photos to appear within the picture spread and what a tremendous reinforcement opportunity is lost.
Holding off revealing this is a Short Sale until the end could entice investors to pursue it, but might lose a family looking for a home for the immediate future. Personally, I prefer this approach, since it reflects better on the listing agent. Far too many agents listing short sales make it obvious they spent about 10 seconds on the advertisement and make an investor skeptical that the agent is capable of getting a deal done.
GRADE: B-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Monday, July 13, 2009
If they are the builder - how is it not their fault?
Earlier today I saw a story from Florida about a major builder which identified defective drywall used in hundreds of homes (thus far).
http://www.justnews.com/news/20039942/detail.html
The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?
If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?
All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?
How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?
We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.
This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.
Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.
It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.
And while we are at it, who inspected these homes????
http://www.justnews.com/news/20039942/detail.html
The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?
If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?
All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?
How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?
We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.
This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.
Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.
It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.
And while we are at it, who inspected these homes????
Thursday, May 7, 2009
If you could, would you live near Land Shark Stadium?
Imagine seeing an ad for a home for sale “near Land Shark Stadium”. You might not have to anymore.
Land Shark Stadium??? I heard about this and I thought about the hysterical sketch on the early (and funny) days of Saturday Night Live with Chevy Chase knocking on apartment doors and "eating" the residents who opened the door for his "Land Shark" costume. Then I saw this in print, and thought that maybe a reputable news operation had picked up a story from The Onion.
But, silly me. This could happen within hours of writing this. It seems that name is now the name of a beer. This could be the name of the same stadium the Miami Dolphins have played in for years. The stadium I still refer to as Joe Robbie Stadium, since that's how it was introduced and Joe Robbie was the Dolphins' owner who got it built.The same stadium that right now technically isn't named for the team that plays in it (Dolphin Stadium and NOT Dolphins Stadium). The former Underwear Stadium (whatever). The same facility that cuts off beer sales at half-time and had to implement a "family section" so that kids attending a pro football game would have a safe harbor. Let alone that it is not and has never been in Miami.
Next, I thought about how this stadium name will make property and home owners in the area feel. Will it present an added challenge to sell a home or commercial property near Land Shark Stadium?
Think about it. This publicity also begins less than a year after more shark attacks near Florida beaches. While it is hard to name a percentage, it is safe to say a portion of potential home buyers in the Miami – Ft. Lauderdale corridor come from the northern cities as second homes or homes to retire at. The Southeast Florida market has had its share of challenges in today’s real estate market as it is. I have recently spoken with several regional mortgage lenders who tell me they continue to stay away from advertising in and pursuing the Miami area.
Sports fans are the ones who will react in whatever way (humor, sarcasm, etc.) to Land Shark Stadium any minute now. I just don’t see it being a favorable reaction toward the area. Granted, this stadium is actually so isolated from civilization in South Florida it really won’t make that much of a difference, but unless people have actually been there, they don’t realize this. The local government will point out that they receive the tax portion of the millions of dollars paid for the stadium naming rights, and that it will add to the economy. While that may be true, I happen to think this name could take away from the local economy long term as it could negatively impact the local real estate market.
Meanwhile, there is something to be said for picking up a piece of an historical building as the highest bidder. But this is a highly unusual story. It seems that several items from the original Chicago Stock Exchange Building, including a cast and wrought iron elevator enclosure panel and leaded glass ceiling panels with values estimated to be in 5 figures. The Louis Sullivan designed building was completed in 1894.
What makes this unusual? The building was demolished in 1972 in Chicago, yet this auction takes place (on June 2) at The Rockefeller Center in New York City. The Associated Press story quotes an official of Christie’s as saying they could not reveal how the auction house got these items.
Seems to me there is a very interesting news or investigative story in the making. How do in tact parts of a building demolished 37 years earlier suddenly appear for auction? What happens to expensive parts of demolished buildings?
Speaking of demolished buildings, did you see the NBC News report on Tuesday about the demolition of a group of homes in Victorville, CA?
It seems that the city determined it was more economically feasible to bulldoze a group of homes that were not completed rather than spend the money to complete them. The video showed pile after pile of debris. Once everything is cleared (and at who’s expense?), the space could remain a series of empty lots for months if not years.
My first reaction is that city officials didn’t see the story about the Florida investor who purchased several unfinished homes for under half price, and spent a portion of his savings to finish construction, leaving him with a huge profit margin whether he rented or sold the brand new houses.
In other words, the Victorville demolition is another example of the lack of creative thinking about today’s real estate market. You can’t tell me that no one would have shown up if the city officials and others associated with the project held an auction. An investor or investment group could have done the same thing. But start from scratch on a series of vacant lots? It could take several years of waiting, and that is a lot of lost potential revenue for the city – and for those still employed in the real estate community.
Land Shark Stadium??? I heard about this and I thought about the hysterical sketch on the early (and funny) days of Saturday Night Live with Chevy Chase knocking on apartment doors and "eating" the residents who opened the door for his "Land Shark" costume. Then I saw this in print, and thought that maybe a reputable news operation had picked up a story from The Onion.
But, silly me. This could happen within hours of writing this. It seems that name is now the name of a beer. This could be the name of the same stadium the Miami Dolphins have played in for years. The stadium I still refer to as Joe Robbie Stadium, since that's how it was introduced and Joe Robbie was the Dolphins' owner who got it built.The same stadium that right now technically isn't named for the team that plays in it (Dolphin Stadium and NOT Dolphins Stadium). The former Underwear Stadium (whatever). The same facility that cuts off beer sales at half-time and had to implement a "family section" so that kids attending a pro football game would have a safe harbor. Let alone that it is not and has never been in Miami.
Next, I thought about how this stadium name will make property and home owners in the area feel. Will it present an added challenge to sell a home or commercial property near Land Shark Stadium?
Think about it. This publicity also begins less than a year after more shark attacks near Florida beaches. While it is hard to name a percentage, it is safe to say a portion of potential home buyers in the Miami – Ft. Lauderdale corridor come from the northern cities as second homes or homes to retire at. The Southeast Florida market has had its share of challenges in today’s real estate market as it is. I have recently spoken with several regional mortgage lenders who tell me they continue to stay away from advertising in and pursuing the Miami area.
Sports fans are the ones who will react in whatever way (humor, sarcasm, etc.) to Land Shark Stadium any minute now. I just don’t see it being a favorable reaction toward the area. Granted, this stadium is actually so isolated from civilization in South Florida it really won’t make that much of a difference, but unless people have actually been there, they don’t realize this. The local government will point out that they receive the tax portion of the millions of dollars paid for the stadium naming rights, and that it will add to the economy. While that may be true, I happen to think this name could take away from the local economy long term as it could negatively impact the local real estate market.
Meanwhile, there is something to be said for picking up a piece of an historical building as the highest bidder. But this is a highly unusual story. It seems that several items from the original Chicago Stock Exchange Building, including a cast and wrought iron elevator enclosure panel and leaded glass ceiling panels with values estimated to be in 5 figures. The Louis Sullivan designed building was completed in 1894.
What makes this unusual? The building was demolished in 1972 in Chicago, yet this auction takes place (on June 2) at The Rockefeller Center in New York City. The Associated Press story quotes an official of Christie’s as saying they could not reveal how the auction house got these items.
Seems to me there is a very interesting news or investigative story in the making. How do in tact parts of a building demolished 37 years earlier suddenly appear for auction? What happens to expensive parts of demolished buildings?
Speaking of demolished buildings, did you see the NBC News report on Tuesday about the demolition of a group of homes in Victorville, CA?
It seems that the city determined it was more economically feasible to bulldoze a group of homes that were not completed rather than spend the money to complete them. The video showed pile after pile of debris. Once everything is cleared (and at who’s expense?), the space could remain a series of empty lots for months if not years.
My first reaction is that city officials didn’t see the story about the Florida investor who purchased several unfinished homes for under half price, and spent a portion of his savings to finish construction, leaving him with a huge profit margin whether he rented or sold the brand new houses.
In other words, the Victorville demolition is another example of the lack of creative thinking about today’s real estate market. You can’t tell me that no one would have shown up if the city officials and others associated with the project held an auction. An investor or investment group could have done the same thing. But start from scratch on a series of vacant lots? It could take several years of waiting, and that is a lot of lost potential revenue for the city – and for those still employed in the real estate community.
Wednesday, February 11, 2009
Too many negative statistics.............
Those of you who have been following my blog for a while know how much I comment on the realty associations spending time and money to publish negative statistics about the local real estate market. Throwing more matches into the fire.
While I don't like seeing anyone put into this position, I will admit I found an element of humor while reading this story today:
http://www.naplesnews.com/news/2009/feb/10/home-resale-office-closes-miromar-outlets/?partner=RSS
Yes - it is true. The realty office of the President of the local Realty Association in Naples has shut down.
Naples thrives on those retiring and relocating from the cold weather cities up north, and here we are in the middle of February of one of the most brutal winters across the country in years. For this guy to have been elected President of the local realty Association, he has to have a great reputation and track record in the area.
But when people around the country, including the areas which have previously drawn home buyers to the Naples area, continue to be pounded with negative statistics, the carry over effect has had a direct impact.
Sure, I'm not going to deny that the economy has impacted many lives and that fewer people are looking at retiring and moving to Florida and/or buying a second home. But you can't tell me there isn't plenty of inventory to be had in south Florida, and probably at the best prices available in quite some time.
However, as people read about the decline in sales compared with previous years, it reflects poorly on the market - and not on the overall economy. My point continues to be that I could have just as easily read that "hundreds of homes sold in the Naples area in what many consider to be a down economy, with the most recent sales including an $800,000 home" or whatever it may have been. That would make someone get online or pick up a phone and seek more information. Reading that sales have dropped in a particular area is a negative reflection.
I don't know how many listings that realty office in Naples had, but now a large group of potential sellers is forced to relist their property simultaneously. While their association continues to pour out the negative statistics.
While I don't like seeing anyone put into this position, I will admit I found an element of humor while reading this story today:
http://www.naplesnews.com/news/2009/feb/10/home-resale-office-closes-miromar-outlets/?partner=RSS
Yes - it is true. The realty office of the President of the local Realty Association in Naples has shut down.
Naples thrives on those retiring and relocating from the cold weather cities up north, and here we are in the middle of February of one of the most brutal winters across the country in years. For this guy to have been elected President of the local realty Association, he has to have a great reputation and track record in the area.
But when people around the country, including the areas which have previously drawn home buyers to the Naples area, continue to be pounded with negative statistics, the carry over effect has had a direct impact.
Sure, I'm not going to deny that the economy has impacted many lives and that fewer people are looking at retiring and moving to Florida and/or buying a second home. But you can't tell me there isn't plenty of inventory to be had in south Florida, and probably at the best prices available in quite some time.
However, as people read about the decline in sales compared with previous years, it reflects poorly on the market - and not on the overall economy. My point continues to be that I could have just as easily read that "hundreds of homes sold in the Naples area in what many consider to be a down economy, with the most recent sales including an $800,000 home" or whatever it may have been. That would make someone get online or pick up a phone and seek more information. Reading that sales have dropped in a particular area is a negative reflection.
I don't know how many listings that realty office in Naples had, but now a large group of potential sellers is forced to relist their property simultaneously. While their association continues to pour out the negative statistics.
Tuesday, January 27, 2009
A winning investment in residential property
Creative thinking continues to put a few ahead of the game in this weeks' real estate market. Instead of soaking in the barrage of negative statistics from the realty associations and industry officials, there are a few people acting and investing on a great idea.
And, no, it is not making lowball offers to try and prevent specific foreclosures. You see, it is not just "complete" houses that are owned (repossessed) by the banks. Unfortunately, many small builders have vanished from the scene. In some cases, this happened while one or more single family homes were still being built and thus not yet sold.
I got curious when I saw that someone bought a 3,000 sq. ft. house in Central Florida for $28,000 cash and may have been the only actual bidder. Upon further investigation, the buyer got himself an unfinished house that was left for dead by a failed builder. In today's market, consumers and investors who can afford to take advantage of the deals out there want something they can turn a profit on without having to spend any more to do so. Yet, in this instance, it translates to missed opportunities.
This buyer/investor estimated that the house needed about $50,000 more worth of work to be completed, and he has the contacts (and the finances) to make that happen. The result is that within a few weeks, he will have a completed and brand new 3,000 sq. ft. house in Florida ready to sell - or rent. And his total cost will likely be under $80,000, with no mortgage.
If over the next few weeks the market doesn't improve to the point of easily being able to find a buyer, he knows the rental market is strong among people who don't have credit worthy of getting a mortgage. Better yet, there will likely be a ton of "rent to buy" candidates out there.
Those who rent to buy make much better tenants, as they are not likely to let necessary household matters slide.
This, after the bank which "took over" this unfinished property was amazed to get rid of something they couldn't sell against the foreclosures ready for immediate occupancy.
What gets me is that this investor/buyer, to the best of my knowledge, is NOT a licensed realty agent.
Now put this together with the usual batch of negative real estate market stories started by the people in the industry. Notice that the realty associations continue to release the "down market" statistics so fast it's hard to keep up:
http://news.yahoo.com/s/ap/20090126/ap_on_bi_ge/home_sales_southern_cities_1
http://news.yahoo.com/s/ap/20090126/ap_on_bi_ge/home_sales_northeastern_cities_1
Now the Chicago market joins the rest:
http://www.suntimes.com/business/currency/1398509,CST-FIN-wallet27.article
Let me get this straight. The realty agents and mortgage lenders complaining about the lack of business (except for mortgage refi's) are sitting around reading the doom statistics, while investors not in the profession are using creative thinking to score a nice profit within the course of the new year.
What's wrong with this picture?
And, no, it is not making lowball offers to try and prevent specific foreclosures. You see, it is not just "complete" houses that are owned (repossessed) by the banks. Unfortunately, many small builders have vanished from the scene. In some cases, this happened while one or more single family homes were still being built and thus not yet sold.
I got curious when I saw that someone bought a 3,000 sq. ft. house in Central Florida for $28,000 cash and may have been the only actual bidder. Upon further investigation, the buyer got himself an unfinished house that was left for dead by a failed builder. In today's market, consumers and investors who can afford to take advantage of the deals out there want something they can turn a profit on without having to spend any more to do so. Yet, in this instance, it translates to missed opportunities.
This buyer/investor estimated that the house needed about $50,000 more worth of work to be completed, and he has the contacts (and the finances) to make that happen. The result is that within a few weeks, he will have a completed and brand new 3,000 sq. ft. house in Florida ready to sell - or rent. And his total cost will likely be under $80,000, with no mortgage.
If over the next few weeks the market doesn't improve to the point of easily being able to find a buyer, he knows the rental market is strong among people who don't have credit worthy of getting a mortgage. Better yet, there will likely be a ton of "rent to buy" candidates out there.
Those who rent to buy make much better tenants, as they are not likely to let necessary household matters slide.
This, after the bank which "took over" this unfinished property was amazed to get rid of something they couldn't sell against the foreclosures ready for immediate occupancy.
What gets me is that this investor/buyer, to the best of my knowledge, is NOT a licensed realty agent.
Now put this together with the usual batch of negative real estate market stories started by the people in the industry. Notice that the realty associations continue to release the "down market" statistics so fast it's hard to keep up:
http://news.yahoo.com/s/ap/20090126/ap_on_bi_ge/home_sales_southern_cities_1
http://news.yahoo.com/s/ap/20090126/ap_on_bi_ge/home_sales_northeastern_cities_1
Now the Chicago market joins the rest:
http://www.suntimes.com/business/currency/1398509,CST-FIN-wallet27.article
Let me get this straight. The realty agents and mortgage lenders complaining about the lack of business (except for mortgage refi's) are sitting around reading the doom statistics, while investors not in the profession are using creative thinking to score a nice profit within the course of the new year.
What's wrong with this picture?
Thursday, January 15, 2009
Bank on this one............
Some banks and S & L's, including large ones, have been closed and/or taken over as a result of faulty and defaulted real estate loans.
In an ironic twist, there is a story making news about a Florida market having to deal with buildings which once housed a prominent local bank going unused, and stuck with tax assessments and other funds owed.
http://www.bradenton.com/business/story/1154871.html
This story has a scary element to it, as well as a funny one.
Personally, I see this as a management issue. Before this particular bank went belly up, maybe the matter of the buildings they owned, taxes, and the real estate obligations of the bank itself should have been dealt with. Now, this has become a blow to the local economy.
There are those who believe, as I do, that the best solution to the real estate crisis would have been for the government to specifically pay off each of the defaulted loans directly, rather than in the form of a bailout.
If local government can't handle the effects of losing a once prominent local bank, then chances are the money handed out via the "bailout" plan will be just as mismanaged by our collective elected officials.
The homeowners or loan owners that defaulted have already suffered the consequences. But if the government has "bought" those loans and owned the properties, the banks that loaned on them would have survived - and undergone immediate policy changes so this wouldn't happen again. And specific people would be responsible for wisely maintaining the continuing existence of these banks and lenders.
Ah, what might have been...........
In an ironic twist, there is a story making news about a Florida market having to deal with buildings which once housed a prominent local bank going unused, and stuck with tax assessments and other funds owed.
http://www.bradenton.com/business/story/1154871.html
This story has a scary element to it, as well as a funny one.
Personally, I see this as a management issue. Before this particular bank went belly up, maybe the matter of the buildings they owned, taxes, and the real estate obligations of the bank itself should have been dealt with. Now, this has become a blow to the local economy.
There are those who believe, as I do, that the best solution to the real estate crisis would have been for the government to specifically pay off each of the defaulted loans directly, rather than in the form of a bailout.
If local government can't handle the effects of losing a once prominent local bank, then chances are the money handed out via the "bailout" plan will be just as mismanaged by our collective elected officials.
The homeowners or loan owners that defaulted have already suffered the consequences. But if the government has "bought" those loans and owned the properties, the banks that loaned on them would have survived - and undergone immediate policy changes so this wouldn't happen again. And specific people would be responsible for wisely maintaining the continuing existence of these banks and lenders.
Ah, what might have been...........
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