Pages Navigation Menu

Your ROCK in Real Estate

The Real Estate Market

There are home buyers out there, and they are buying houses, and they are buying them with little or no movement in all around them.

Here’s how it works.

The entire real estate market in the United States is stagnant. All the money that we as a nation and consumers have been dished out on mortgage debt is slowly beginning to be absorbed into real estate.

That means that there are massive amounts of money sitting idle in the real estate market waiting for an opportunity to grow.

There are income tax reductions, new consumer-friendly legislation, and interest rates being offered at decreased amounts to stimulate the economy. While all this is going on the average home-buyer is feeling like they got stuck in the mud.

Due to the recent crash in the real estate market, mortgage loans are harder to get, and therefore the money is locked in.

The depression stacked homes on top of each other in homes in foreclosure, and in some counties, they are not being sold at all. All of these basic economic realities have created a virtual paradigm shift in how home-buyers are viewing the real estate market.

If you are a home-buyer, the opportunity for you is now, more than ever.

And that means opportunity. As a practical matter, that means that any act of even modest financial self-discipline now is an opportunity, because it shows movement in the right direction. If the foreclosure calls are answered with a foreclosure letter, and the homes are moved out of inventory and are sold right away, as an economic move the economic scale is just as large as the number of homes in inventory.

Financial movements tend to show trends – the one government-run program has shows signs of life.

The fact that home-buyers, and home-sellers, are now able to buy or sell homes without feeling like they are underwriters of a giant moving truck, is sure to lead to a slow down in the overall real estate market.

As a practical matter, this means that at the technical end of the business there is no pressure for home-buyers to act quickly, in order to market a house.

And home-sellers are ready for the next big move in real estate. Repairs can be done and, on the flip side, the house can be listed without the huge dumpster space that a foreclosed house requires.

All this means that the time for the part-timers is passed.

Sure, the market looks daunting. The lines are long. Homes look old. But if you are a part-time seller of real estate in the current climate, now is the time to go where the money is.

You can go with the flow. The money will come. The more you prepare the quicker you will find it.

Final thoughts. There is a new army of real estate investors in these uncertain times. If you are prepared, there should be no problem closing the deal if you have a good deal between you and an owner willing to work.

It’s time for the Test Drive.

If you want to be a part-time seller of real estate you will have to learn to work harder and learn to survive on evenings and weekends, days that are not transferable.

But yes, there is an opportunity for home-buyers to pick up where you left off.

The best time to buy is today before the new faces of the real estate industry take hold. The greatest real estate deal that will ever be made in your life will be made today!

Read More

Third Time Buyers – A Different Kind of Prospecting

When you first started off in the real estate business as a real estate agent or broker, you have no doubt heard the saying “No matter what, you can’t find business unless you have some prospects to talk to”. It is a fact that you need good prospects to find the business over time and you need lots of them. To solve the problem of not having enough prospects it is a good idea to try and do what is called “prospecting” a prospect.

Not everyone has what it takes to do something that involves your time and efforts in real estate. There are some key characteristics you must have and do in order to do this.

You must be a self-starter and a self-fertile prospect.

Now, let’s move on to the self-starter question and think that without the ability to look at properties and research property values, you won’t be able to get anywhere with your real estate business. To get from your old job of working in a newspaper system to the level of serious real estate investor that you desire, you need a good ‘pack’ and you need self-motivation.

You need to have the drive, a passion that drives you to success. This is where you need a constant flow of fresh ideas that will help you move ahead.

You need to know the market conditions on a continuing basis and have systems in place to study and ‘read’ the market conditions. To do this you need a good gut feeling, that feels like you can make a decision when the time is right to move ahead. You also need to have the self-discipline to ‘keep at it, so you don’t get sidetracked and put off doing anything.

It is a fact that if you don’t have a good system and the self-discipline to get moving ahead in your real estate career, you will keep getting sidetracked. Once you have the right block of ‘time’ where you are able to get ahead, your ‘ Publications’ and income will grow as you seek to get there.

You need to be self-motivated to make things happen. To make the real estate business work for you take action every day. The action builds momentum, which in turn, rewards you with success.

Now, you need the self-motivation to many property deals and opportunities. You will have those days where you feel like you need a good file on that particular property just to keep on top of the prospect and to act on the opportunity. Failing to follow through with the action will give you a poor image and a lower ‘collar’. You need productive self-motivation to get the job done each and every day.

We need to take on the ‘sales job’ just like any other sales job and, therefore, need to train our stomach and mind that new territory is hard and slow so it doesn’t wear on us.

We need to train our body on what it takes to be a real estate investor and we need to then learn how to do the right mindset of being a property investor. You learn in this business that ‘you make your money when you buy. This means that the deals that you do must be so good that others want your deal and it needs to be so simple that you find it beautiful.

Finally, when we get to the final stages of signing the deal, it is well worth us taking a short walk around the property to make certain that everything is as you expected. You will then close the deal on a great property and have a wonderful new posh property to call your own.

Read More

What is the Real Value of Orland Park Real Estate?

Orland Park, Illinois is a suburb located approximately 21 miles northwest of the Chicago Loop.

Orland has over 15,000 residents (the Orland Park community comprises approximately 4,000 households). Orland ranks as the seventh wealthiest city in Illinois according to Forbes magazine.

Orland Park Real Estate Market

Orland has one of the most stable home values in the area. This also means property prices have declined significantly in the area since the start of the housing boom. In the two years from 2010 to 2019 homes in this town grew by an average of 11.6%. While other housing markets throughout Illinois have decreased in value by 30% or more, Orland has approximately $2 in difference in value for every $2 invested.

Orland Park Homes for Sale

Orland has a wide range of homes in many price ranges to choose from. High-end homes can run as high as $450,000. Many of these have lakefront views and are near golf courses. The average listing price for a home for sale in this area is $190, Naples, and this represents a three-year low according to the Orland Park Association of Realtors.

Who the Orland Park Home Builder Is

Shea Homes, Towns car Homes, and Herald Homes. Spin is still experiencing a buyer’s market. This comes at a time when builders are reporting strong sales and the pendulum has started to move the homeowner builders market back in their favor.

The history of Orland studio as a homebuilder, shows ten years of Orland Homes building, selling for $25,000 and struggling to sell at $25,000 from 2010 to 2019. Leaving aside high-end houses, the next highest median price home is in taverns at $132,200, a two-bedroom home built-in 2015.

Orland Homes post-2010 Median Price

gauges, on average homes, have lost 9.2% of their value since 2010, with a peak in 2016 and a current median price of $professionals of $for sale listed at $timer, with a few homes listed at $105,000.

Whoa! How is that possible? Well, the bust in the housing market and high construction costs of the last few years led builders to aggressively sell homes to the public. In some cases, a house has gone up in value by $13,000 since it was built. But, for every house that flowed off the builder’s hands, many others sit on the market.

So, caution arrives with new home construction and, especially, Orland Homes due to the new and stricter building code requirements. According to the local building department, they received 46 permits for new houses for the year 2014. This shows that boom times through the early 2010s led to the permits being pulled, and now many houses were never built. And it is for these reasons that many real estate professionals are calling for a cooling-off period before new houses are permitted. They say that the houses that were built from 2010 to 2018 are the real developers and builders who had an impact on property values in Illinois.

In my professional opinion, I believe this period is nearing its end, and analysts and developers are keen to slow down. Money will still have to be spent to bring units to market but at a slower pace. According to the real estate professionals in Illinois, the last two years have seen hundreds of thousands of building permits being pulled because they were never properly permitted. Therefore, the number of new homes that will be sold during this period should stay about the same instead of diminishing. Local builders like Shea Homes are even encouraging homebuyers who wouldn’t get into Orland Homes’ and other new homes in the area just a few years ago to act now so that the new homes in Orland Park will be built instead of on speculation — the fear is that when construction starts again, local worries about the income from these homes will surface and the value of the neighborhood will begin to sink cutting into the pocket of the new homebuyer and in this type of market no one is sure how long it will last.

Read More

Purchasing a Home With No Downpayment

New homebuyers are told that they need a 20% downpayment in order to purchase a home on the Phoenix MLS. Some view this as proof that the Arizona Arizona home market, and the entire country, is going through a downturn and is in a museum for the next 25 years. While this may be true in the Great Grand Old West, no one should view 20% down as being forever outdated. While some mortgage products require a larger amount down in getting Your Dream Home Dallas, the conditions are very different from what is available in Maricopa and Pinal county.

What’s available in front of your broker may be a CMBS (collateralized debt obligations) or a state-sponsored FHA product, also called 100% financing. It’s true that 100% of loans are part of the CMBS purchases that go through FHA. Most of these loans require a 3% to 5% down payment. A percentage point of the loan amount and PMI insurance are paid for with the monthly mortgage payment. The difference is paid in a monthly charge.

What’s available with no money down on the Maricopa side and an FHA backing for the no money down AZ refi option is the ABC Mortgage product. This loan is fully assumable with either a 3% down or no down payment. The closing costs are minimal with only $900 due at the time of closing on a $300,000 purchase. This is the best product available to accomplish the goals of the 20% down requirements. It’s also available to those buying premium properties.

When looking at the CMBS products available, the first thing that comes to mind for many homebuyers is the FHA product, but there are slight differences. These CMBS loans have mortgage insurance added on and are subject to mortgage insurance and a PMI charge.

FHA loans have received a lot of negative press in the last year. aluminum and energy claims have been blamed on FHA loans, so do double checks on borrowers with FHA loans before closing.

If you need 20% down, the CMBS option is the best. It comes with no down payment requirement and requires mortgage insurance. Mortgage insurance is added to the monthly mortgage payment, reducing the borrower’s cash flow. It doesn’t reduce the loan amount, but it slashes the cash flow of the smart homebuyer. The amortization of this property is 30 years with a 30 year fixed rate. This means that it will take 30 years to reduce the principal loan amount by 20%.

Noone mentions that problem financing exists in today’s real estate market. Yes, there are some homes that should never have been purchased. Of course, this loan product still exists for the 20% down requirement and the amount financed is different than the full 20%. The seller’s acquisition and construction costs are transferred to the new homebuyer at the time of closing. In addition, the seller should be willing to fund one month of the buyer’s mortgage payments at the closing table.

The bottom line is to have your financing in place and your home in the hands of a qualified lender. This is not my best advice but thought it might be helpful to discuss it. If you are ready now to find your dream home, take the steps necessary to get your loan approved. A qualified REALTOR should also be able to help you with this process.

If you are considering a home purchase in the next 6 months, now is the time to take some steps to make that dream come true. You and your REALTOR should take the steps necessary to give you the best chance of success. Once that loan is approved, you are on the path to homeownership!!!

Read More

Home Buying Tips – What to Expect at the Foreclosure Auction

One of the most important aspects of buying real estate foreclosures for business reasons is that it is a closed auction. Prior to the auction, you as a buyer have to be able to present a certified check made payable to an escrow or third party as a deposit to be used for the down payment and the cost of the house. The bidding tactics used in particulars are different in each of the states where foreclosures are available, but in all states, bidders must prove through their financial statement that they are capable of paying for the going price of the real estate.

The first participants are those who are not physically present. These are often “mortgage brokers, real estate agents, and title search people”, who attempt to wind you up and make you spend more. They are not bidding on behalf of the property owner and are not bound by a sealed contract. They are drawing lots to see if they can feel one step ahead and possibly walk away with an overbid. You being the over bidder well aware of what a kickback looks like and are not accepting the assistance to purchase the property. The second type of bidders will be those who realize that they stand to make a pretty penny and Semi-professional can put together some pretty slick games that can tip the balance in their favor. It’s in your best interest to be adept at this particular part of the bidding process.

The second type of bidder is those who are at this auction to snatch up a particular property at a really good deal. They are reasonably likely to see the property come up for auction feet-saving up to a far more comfortable 100% of the normal market value price. The third type of bidder is those who know the value of the property could make a nice profit and have their goal to still purchase the property, repair it, and resell it to a potential buyer who can not afford the normal market value.

How is this information that is being offered to those who are not physically present? If you know where you are, you can avoid this information if you are having your second round of biddings. If you are bidding on a property that has already been identified as a foreclosure, it should be as clear as day that those bidding for the foreclosure have to stick with the bid price unless the bank drops their price. If that occurs any other way, you are subject to the bank set a higher or lower price.

These secret bidding tactics used by the banks cannot be used in foreclosure auctions due to the intense experience or expertise or experience of the people bidding at the auction. They “may” be able to get a property for higher or lower than you are willing to bid and based on the experienced or “higher” bidding tactics. They might be able to pressure you to pay more or less if you have not bid already and feel that you can bid higher in all circumstances.

What is the danger of these secret bidding tricks? Consider this example:

Let’s suppose a bank was offering property for what was being called an “owner-occupied” loan. It turns out that the bank was willing to hold the property for another 120 days (at a time frame set by the bank to keep their loan from being “sellable” but not giving you a higher price than what they were already asking). However they weren’t willing to lower their price to the $2,000 above their cap rate, so they were offering it for $2,000 below the cap rate. You bid $2,000 higher for the same property, but now you are facing a higher risk of bidding too high, beating out by an over bidder, or not being able to complete. That is your bad, but the bank’s good.

However, this same bank was willing to drop the price a couple of times to get more money. Their idea was to get $15,000 over their desired cap rate to turn around an 11.4% money deposited into the bank.

They are essentially gambling you can negotiate with the bank and get the bank to drop your price. Don’t get caught up in the emotion of the game and base your costing to win your bid on whether the bank is going to dump the property or not. It’s important that you know that there are other ways that you might bid on the same property.

What if you have a bidding war and every participant agrees to start at $2,000? Well, the bank can afford to lose $4,000, so now you’re at a $4,000 drawdown and you’ll get nothing.

How much more does that cost you? An $11,000 home for $10,000 less?

Some of the pitfalls are the ones we’ve seen in the news lately, that the bank who had the foreclosed property wasn’t willing to at least see the property.

Read More