Tracey's Blog

Small Firms versus Large Brand Name Firms

   I am a Broker/Owner of a small firm, and so I am going to plug for the smaller company.  The big companies were ALL small at one time, but by hard work and time invested they became the "Big Guns" for a reason.  Sometimes though, when your idea grows so large and spread out, it is hard to keep close to your original ideals.  And then someone leaves that company and starts a smaller firm so that they can more closely control how they believe Real Estate should be handled. That is the case with me.

  The upside is that my agents are truly my friends.  We celebrate birthdays and hang out Downtown together.  We watch the Superbowl and celebrate Fiesta Fridays in our office.  We are able to express ourselves creatively without a glass ceiling, restrictions, or a mold that we have to somehow fit into.  I have a small and wonderful crew here that truly respect each other and work as a TEAM!  There is no hiding leads or stealing clients.  We work well together.

   The downside is that if you are not as experienced, you will have to work your behind off to get leads and clients.  The call ins are not as frequent (although I give my agents at least 2-4 leads a week), and you are fighting against people's notion that smaller may not be better.  When they hear that my company is called 360 Realty, they often say. "I have never heard of you, how charming!"  But some like that we are small, super friendly, COMMITTED to customer satisfaction, and highly motivated.

   Whatever you decide, the most important thing to remember is that you have to CARE about your clients.  Good luck :)

Tracey

Hi Guys,

   Here is something that I received from one of the asset managers that I represent with Disposolutions.  This is an email that she sent me and I am copying it here for you to read....how cool is this?!

"FHA Lessons 90-Day Rule to Help Lenders Sell REOs

Kerri Panchuk | 06.16.08

Lenders will no longer find themselves struggling with the Federal Housing Administration's (FHA) 90-day rule, which prevents sellers who have owned a property for less than 90-days from offloading a home to a buyer who intends to be insured by the FHA.

While the FHA implemented this rule to prevent the practice of flipping in the otherwise safe FHA-insured atmosphere, lenders who are trying desperately to remove distressed properties from their books have been unable to seize the day with qualified borrowers because of the three-month waiting period.

The FHA said Monday, "For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must be purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period."

Officials with HUD and the FHA saw the transition as a necessary step in curtailing urban blight and property decay in areas greatly impacted by foreclosures.

"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," asserted Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow home buyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country."

Looking to BUY Bank Owned Foreclosure/REO Homes?

I have been working with REO Properties for over 8 years now, and here are some of the handy little tips I have come up with to help you succeed:

1. Join EVERY Local Investor group you can find!  They are usually $150+ a year to join, and are a great way to get to some amazing "deals"!  They usually know the best REO Realtors in town!

2. Find a REALTOR that specializes in REO's!  (This is one of the most important tips here folks! We Realtors have a wealth of knowledge when it comes to buying foreclosures...if they ONLY sell 500k homes you are most likely barking up the wrong Realtor)

3. Know your banks!  Find out which bank is selling the home you are interested in.  They all have slightly different game plans! (For example, Freddie Mac is very specific about timing on offers.  They list from 2 comparable BPOs from 2 Realtors and they HOLD that price or $1,000 or so off for the first month. PERIOD.  Do not expect to get them 20k off the offer in the first 30 days.  Other banks are different.  Your Realtor should be able to let you in on these secrets!)

4. Multiple offers...AKA "Highest and Best" Means JUST THAT!!!  Do NOT play around and expect to offer low and then negotiate!  You need to offer your HIGHEST and BEST here!  Also, make the number uneven...like $61,345 just in case someone else offers $61,000...YOU WIN!

5. Make LOTS of offers! It is ok to offer a little lower, as long as you are spreading it out!  Make 20+ offers a month to insure that you are getting 1-2 of them to accept the offers! If you are looking to get 3-4 homes a month, you need to be making 50+ offers.  So find a VERY patient Realtor :)

6. Look for 3 Bedroom, 2 Bath Homes in Good Turnaround Neighborhoods! If you are looking for rental properties...tell your Realtor to pick rentals out.  If you are looking to "flip" houses, make sure to tell the Realtor you want "resale properties". 

7. Now is the best time to buy homes for OWNER FINANCE! These banks are unloading REOs like hot cakes, and with the financing climate...you can owner finance these all day long.  Go to the investor meetings I spoke of in number 1 and aks those investors for a copy of their owner finance contract.  With the changing financing..YOU BE THE BANK!

8. Check out HUD properties! Go to www.hmbireo.com and look up properties in your area.  You can find a Realtor directly from the website in your area and have them write up your offer.  They already inspect the homes and publish the inspection list right there with the photos! GREAT way to get a good deal!

9. Be ABLE to pay CASH!  Either find some money or get a hard money lender.  The banks like to see CASH OFFERS!  It makes them actually smile...which is almost impossible!

10. Beware! Make sure you understand that REOs are AS-IS, WHERE IS and you have to VERIFY ALL Info!

With that...I wish you luck :)

It is crazy how values can be up one day and down the next!  You never know how much your home is going to be worth, and it is up to the "opinions" of professionals around you to determine the landscape of your community!

This is one of the reasons that I specialize in Lindley Park & Sunset Hills!  I live and work within a block of both neighborhoods, and truly understand my area!  I GET it!  I see those houses that have been on the market forever!  I notice the For Sale By Owner homes that switch over to a Realtor after trying to sell it on their own for 3 months.  I see the houses that are overpriced by 20 grand. 

Lindley Park & Sunset Hills have constantly been two of the best neighborhoods to purchase a home in for the past 10 years...and they are successful in retaining their value over time!  Most of the homes were built before the 1950's, when construction was "built to last".  We have the charm and closeness of a small community, and the floors may slant a little...but they are SOLID!

You need to understand an area before you buy or sell!  If you don't know a whole lot about it, then you hire a Realtor that does!  Find someone that understands your neighborhood.  Make sure they know what the average days on market is.  Make sure they can tell you if you are paying too much.  Make sure you are represented by someone that is more knowledgable than you!  Why else would you pay them? :)

Sunset Hills and Lindley Park ROCK!  If you are looking for a great community for a great price...and one that holds its value...look no further!

SELL More Houses!

Okay, so I am guessing that if you are reading this...you clicked the title because you COULD NOT believe it!  Real Estate is HOT?  WHAT?!!!  Everywhere you turn right now, you hear something bad about the market.  Orlando, Florida is down -6% appreciation.  Miami is down -12% appreciation.  The housing boom is blown to bits.  The bubble popped all over you.  It got all over your new pants that you financed with that lovely line of credit with all the inflated equity you "found" in your appraisal.

Well, don't be sad!  Yes, there are some areas that are not selling well right now.  There are some housing markets, where Realtors are going to jobs where they ask, "Do you want fries with that?".  Yes, there is a little slump.

 To me this is a TERRIFIC time to BUY property.  Anyone here ever heard of this barely known gentelman...Warren Buffet?  I believe he can be credited with the quote:

"Be fearful when others are greedy and greedy only when others are fearful."

To me, this means...BUY REAL ESTATE!!!! Yes, the market sucks.  But what BETTER time to pick up amazing deals and HOLD ONTO THEM.  Until what, you ask?  Until the Market goes BACK UP.  What goes up, must come down.  What falls down, WILL get picked back up.  It is the law of nature people!

I think I have just gotten so tired of everyone crying "bad market", "slow market", "sh**ty market" that I wanted to have my say here where someone may actually feel the same. In 5-6 years, the folks that bought property in late 2007/early 2008 will be RICH!!!

So don't be afraid to make low ball offers and start buying properties where you live.  Invest in tomorrow, because then you may be the one with the comb over and Reality show...and the hot, foreign signifigant other!!!

Tracey Shrouder

360 Realty