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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com

November 29, 2010

Caveats When Using a Foreclosure Rescue Company

Hi Folks,

   Hope you're Holiday weekend was great, and I hope you remember to toss out any leftovers from Thanksgiving, as they should be spoiling just about now !

   We are proud to share some great coverage we received in an AOL Daily Finance article titled, "How to Avoid Getting Conned by Foreclosure Rescue Scams", by Sheryl Nance-Nash.

   The two excerpts where we are quoted are as follows:

   "The problem has skyrocketed, and may get worse before it gets better, predicts Robert Eisenstein, president of HomeRun Homes, a rent-to-own marketplace operator."

   And...

   "Don't panic," cautions Eisenstein of HomeRun Homes. "Once you panic, you lose. Don't take the bait from the first company you meet. Make sure you don't create exponential problems along with the current problems of impending foreclosure."

   This was a very good article, as there has been a spike in these tragic stories since the housing market turned sour, i.e., Rent to Own deals where the owner went into foreclosure and the tenant/buyer was left in a very, very bad position (we have suggestions to help minimize the risk of that happening - please contact me for details).

   For more on the topic(s) of Foreclosures and REO's, be sure to check out the following articles:

   Foreclosure Prevention, Improved Housing Markets...
  
   Buying a Foreclosure? What You Need to Know First
  
   Short Sales - What Do You Need to Know?

   Post-Foreclosure REO Property Maintenance
  
Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 26, 2010

UPDATED: Post-Foreclosure REO Property Maintenance

Hi All,

   I hope you had a wonderful and relaxing Thanksgiving dinner, and we are glad to have you back here with us today, from wherever you may be reading this.

   We have had a tremendous amount of requests to cover the topic of REO properties and the manner in which they are kept from becoming eyesores and danger zones. In order to garner the best information, we spoke with a few people who deal with REO properties on a daily basis, and we have received some valuable information from them that we would like to share with you today.

   How are Foreclosure/REO Properties being Maintained in while they are Unoccupied?

   Edward Harris, Owner of REO Clean Up, tells us that the REO maintenance process for his company starts once the, "HUD/Bank receives a foreclosed property into their inventory and that property is turned over to their integration contractor/Broker.". Once they receive the property they send his company a "work order to go out and perform an, 'initial inspection'." Harris say that this report provides detailed information of anything left behind by the previous owners and also any visual problems with the home. The next step after this report is sent back to the IC/Broker is that a, "a work order is generated from the 'initial inspection report' regarding any issues. This work order is referred to as. 'Initial Services'."

   Another professional we spoke with, Mia Melle, President of West Coast Property Specialists, says that, "How these properties are managed during times of vacancy differs from company to company and also depends on what the owner intends to do with the home - rent or sell or sometimes nothing at all.". Melle provides an example of Fannie Mae, which, "uses the agents who are going to list the home as interim property managers and usually they are unpaid!", so basically it is the listing agent's responsibility to, "coordinate lock changes, landscaping, board ups, etc.", and surmises that the fact that they are unpaid for this service, "speaks to the fact that so many homes go uncared for and turn into neighborhood eyesores."

   Adam Roberts, a Community Development Loan Specialist in the St. Louis/Midwest Region, concurs, and says that, "many of the REO properties are not being maintained to a "neighborhood friendly" level. Lenders are neglecting to manage these properties because there is an overwhelming(ly) large number."

   Melle says, however, that she has seen other types of financial institutions use property management companies to handle their vacant inventories but she reiterates that, "the companies are often doing this for the opportunity to either list or manage the property in the future and are offered next to nothing (in) compensation to oversee the homes."

   Who is Keeping these Properties from Becoming Overgrown?

   Harris says that once his company receives an "Initial Services work order", they perform the following; "trash out services, Janitorial, grass cut and any safety issues are given immediate attention. Once we receive a work order the property is in our inventory for routine services until the property is sold." He says that "Routine Services includes bi-weekly visual inspections, grass cuts, picking up any trash, re-fresh janitorial cleaning, re-fresh of winterization during the winter seasons, snow removal", and, "If a roof problem for example, is found during a routine inspection I would have someone rectify the problem ASAP."

   Roberts says that "fortunately" through local law enforcement and code enforcement the properties have some maintenance such as, "occasional lawn mowing and boarding up windows and doors." Still, however, Melle says that, "Landscaping is one of the issues that lack thereof is the most noticeable to the neighborhood and it's one of the harder services to obtain for anyone whether you are a bank, property manager, or listing agent.", and says that, "The reason for this is that gardeners are a very local type businesses and you cannot find them on the Internet, the yellow pages or elsewhere. Normally, if you live in the neighborhood they will drop a flyer off at your door periodically but other than that.they are extremely hard to locate and hire from off site. So, as a result the landscaping may or may not get done regularly or at all.", and says that, "It's definitely an issue that we've had in our company with these types of portfolios."

   Who is Protecting these Properties from being Burglarized (for Copper Tubing, etc)?

   Harris says that during the "initial inspection", the property is secured, locks changed, hasp/pad locks if needed.", but he says that, "Obviously we can’t have someone at the properties 24/7, the visits of the routine inspectors and neighbors aware of the home can be/hopefully a deterrent for any theft. But if there is a burglary we notify the authorities, find out how the burglar got into the home and re-secure the property."

   Roberts concurs and says that Local law and code enforcement, "report the break-ins and then requires the lender to board up windows and doors.", and that, "Unfortunately after this happens the home becomes unmarketable to "real people" and the best chance of the home moving on the market is now in the hands of an investor, which means another short sale."

   Who is Keeping Squatters from Living in the Property?

   "There have been cases of squatters but not many with our company.", says Harris, who continues to say that, "If our routine inspector doesn’t find evidence of a squatter then we are called by a neighbor. Keeping the squatters out can sometimes be a task." Harris says that, "At one property, the squatter broke the door three different times. The first two we re-hung the door and put two padlocks and hasp on the door. The third time our inspector arrived for his routine inspections and found the person in the house and was able to call the police. They were able to apprehend the squatters." On a positive and hopeful note, Harris says that, "Our continuous presence at the properties we hope prevents illegal activity."

   Roberts says that, "Unfortunately these homes are sitting unoccupied for extended periods of time which makes them highly susceptible to burglary and squatters." He says that, "After initial vacancy the home has windows and doors, (and) in a few months, squatters and burglars target the home. They begin by stealing the air conditioner. Then when they realize neighbors are too scared to come out and confront them, they break in doors and windows and start cutting out the copper and other valuable items in the home." he says that in the end, at best, "local law and code enforcement are mandating maintenance to the best of their ability", but, "unfortunately these dismal efforts are only making the public aware that these properties are foreclosed, unsafe and jeopardizing the stability of the neighborhood."

   How many vacant or unoccupied properties have you been seeing popping up lately? Have they been maintained fairly well or do they have the "REO 5'O'clock shadow". Let us know so we can all share some information and new ideas and strategies to help our neighbors.

Have a Great Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com


TAGS: #foreclosure #shortsales #reo #realestateinvestors #realestate #propertymanagement #hud #property




UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)







November 24, 2010

Do the Housing Numbers Make You Dizzy?

Hi Folks,


   Hope you've had a great short week, and you're ready for the Feast !

   As we discussed on Monday, there were quite a bit of pivotal numbers coming out, and I wanted to take a look at them together with you. Whether this will aid in your digestion tomorrow will remain to be seen.

   New Residential Sales: October came in at 8.1% below September and 28.5% below October 2009, and compared to the same numbers released last month, which showed a 6.6 percent short term increase, but was also substantially below the previous year (21.5 percent decrease). What happened to another short-term increase? Where did that go?

   Existing-Home Sales: The figures for October came in 2.2% below September, and 25.9% below October 2009, reflecting, of course, the tax credit frenzy during that period of time.

   FHFA Quarterly Index: This purchase-only FHFA house price index showed a 1.6% drop from the 2nd Quarter to the 3rd Quarter, and a 3.2% drop from the same period in 2009. The biggest movers were the Mountain Division of the US, which was down 4%, while the New England Division rose 0.9%

   We still have a long way to go until we start seeing rock-solid numbers coming out with every new release, and it certainly will, as we cannot create more land, just more houses!

   As a final note, we will be doing a very informative piece on Friday, which will cover the topic of Bank REOs and Foreclosures, so be sure to tune-in (and digest).

Have a Safe and Happy Thanksgiving
...and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 22, 2010

Turkey vs. Home Sales ?

Hi All,


   Hope you all had a great weekend, and welcome back to the "Short Week" for most of you.

   It boggles the mind when you realize that there will be 3 major data releases in the next 2 days leading up to the Thanksgiving Holiday weekend, but the wheels of the Economy must chug ahead and chrun out the figures.

Here is what is due out this week:
Tues Morning - NAR Existing Home Sales
Weds Morning - FHFA Quarterly Index And New Residential Sales

   Of course, we will recap any of the numbers, should they be eventful. Other than that, we will keep our posts this week short and to the point, since the choice between the thought of turkey and reading my blog posts is a battle that I do not want to get involved with.

   As a reminder, we are still offering our, "Important News for Sellers":

   To Recap the offer: We are offering 30 Free Seller Ads (2-Month Ad duration) - so you can list your home for sale or Rent to Own (a $9.99 value). No catch involved - just Holiday Spirit.

   How do you nail down that free Ad? CLICK HERE to send us the E-mail address that you will use to create your ad. We will then send you a username, password, and the link to log in and place your Ad, add images, etc. This is rare, so jump on this before the remaining slots are gone.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/

November 19, 2010

Real Estate Contracts from a Legal Perspective

Hi Folks,

   Friday is upon us, and most of the leaves have already fallen here in the Northeast. The trees are bare, and this can only mean one thing - bare trees. OK, so the secret is out - I'm not a comedian.

   One thing that is not a laughing matter in Real Estate are the contracts that are used for the different flavors of deals. Today, we are going to take a look at these contracts from the perspective of Rent to Own, with input from Attorneys from 3 States; Florida, Ohio, and Texas. We will preface this with the caveat that this is not legal advice, we are not attorneys, and thus the title word, "perspective", and not guidance.

   In the State of Florida, which is always a hotbed for deals, we spoke with Charles P. Castellon, an Attorney and Counselor at Law in Florida. Castellon tells us that it is important to realize that, "The applicable protections depend on whether you’re entering the deal as seller or buyer.", and he says that from the seller's side, especially in Florida, that, "it’s helpful to draft 2 separate agreements — a residential lease and option agreement.", as, "the rationale is the buyer/option holder could more easily force the owner to file a foreclosure action rather than a simple eviction if both sides of the deal are integrated in one agreement." Castellon continues to say that, "In the latter situation, a court could deem the buyer to have equitable rights giving the buyer/tenant the same rights as a mortgage borrower, thus requiring a more costly and complex foreclosure rather than a relatively simple eviction." From what I personally understand, if a rent credit is being applied to the down payment each month, the tenant is building up equity.

   Castellon says that an owner can, "write into the agreements a waiver by the buyer of any claim that the buyer may be entitled to equitable rights requiring a foreclosure case and instead agree that a breach of the lease agreement would be litigated in an eviction case only.", and that, "Buyers should seek to have a portion of all rent payments credited toward the purchase price. Building equity for the buyer and a greater stake in the rental property is beneficial for both sides, as the buyer will think more like an owner than a tenant." Additionally, he says that, "Buyers should also insist that all cost responsibilities are clearly spelled out. For example, either side can be responsible for costs such as taxes, insurance and association fees and everything is negotiable. The buyer may want to seek some kind of protection of his/her interest in the property in the event the owner fails to pay property taxes and thus risks the loss of the property to the tax collector."

   In the State of Ohio, we spoke with Troy Doucet, a foreclosure defense and consumer litigation attorney, who says that, "Ohio law requires the inclusion of about 15 different terms into any land contract in order to make it valid. Someone unfamiliar with these requirements could generate a void contract, and cost themselves statutory damages in addition to having to refund money paid." Doucet says that, "Creating a lease that provides for the ability to purchase later creates other hurdles under Ohio law, especially with regards to recording any kind of security interest in the property", and says that his recommendation is to, "always consult an attorney in drafting these types of contracts because they can be considerably problematic for the seller and buyer if not drafted correctly."

   Finally, in the State of Texas, we spoke with Attorney Patrick E. Hudson, who says that, "Rent to own laws vary from state to state", and that "In Texas, sellers used to take advantage of rent to own buyers by taking the house back when the buyer missed the first payment, even if the buyer had paid on the home for years.", but that, "the Texas legislature stepped in and put burdensome regulations on rent to own sellers.". Hudson says that the regulations, "generally provide that the buyer has to be provided notices and opportunities to cure any default before the seller can take the property back.".

   Hudson says that the state regulations are so difficult to comply with that, "many law firms advise their sellers to avoid rent to own contracts". He does, however, mention an alternative, where, "A seller can lease the property and give the renter/buyer an option to purchase the home at the end of the lease for a good price.", which, "avoids all of the hurdles of a rent to own transaction.".

   We are looking for some additional input from real estate attorneys in other states, and we welcome your comments on this post.

Have a Great Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 17, 2010

Mixed Construction Numbers and Important News for Sellers

Hi Folks,

   Good Morning and I hope your week is going well.

   As of this morning, the October figures for New Residential Construction were released, which encompasses building permits, housing starts, and housing completions.

   To summarize, both privately-owned housing units authorized by building permits and the single-family authorizations were up from September. Privately-owned housing starts in October were down substantially (in excess of 11% !) from September, while single-family housing starts were down marginally. The last piece of data shows that privately-owned housing completions in October were below the September figures, while single-family housing completions were above the September numbers.

   Now, as the subject of this post mentioned - "Important News for Sellers":

  
We are offering 50 Free Seller Ads (2-Month Ad duration) - so you can list your home for Sale or for Rent to Own (a $9.99 value). Is there a catch? Not at all. Let's just call it some early "Holiday Spirit".

   If you are selling a home, how can you grab your free Ad? Just CLICK HERE to send us the E-mail address that you will use to create your ad. We will then send you a user name, password, and the link to log in and place your Ad, add images, etc. This is a very rare opportunity, trust me, so make sure you stake your claim today...CLICK HERE.

Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/

November 15, 2010

A Look Ahead and a Big Thank You

Hello All,
   Welcome back, and I hope you had a great weekend. If your lower back is in pain from collecting all the leaves from your property, raise your hand !

   First off, I want to thank you for reading and commenting on our post titled, "Private Money...Any Available For Real Estate Deals?". We have also received a lot of off-line feedback regarding this post, and to all of those individuals, you are quite welcome and I'm glad the post has been helpful.

   In the very near future, we look towards recapping some of our most highly-read posts, as well as some of our favorites and the favorites of our readers. In addition, we will hopefully be publishing an editorial calendar so you can hold us to task (and hold us to topic!).

   As a follow up to our post from Friday, titled, "The Building Trades Association (BTA) Accepts Our Membership", our official press release has been launched, and you can see it Here, or on our Press Page.

   Once again, a Big Thank You for your readership, helpful comments, and support. We look forward to raising the bar and delivering more pinpointed quality content. In closing, any comments? Please advise on the Blog or via E-mail.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/

November 12, 2010

The Building Trades Association (BTA) Accepts Our Membership

Building Trades Association (BTA)
Hi Folks,

   Happy Friday to all of you !

   Today, we are excited to announce that we have been accepted as a member of the Building Trades Association, or BTA, which consists of member companies involved in all phases of the building and construction industries.

   BTA had invited us to submit a membership application, but I personally figured that since our segment of the industry is different than their regular types of members, that it might be a stretch. Ultimately (and fortunately), we were accepted, and I believe it is primarily due to the vast amount of Builders that list their homes on our website.

   Some of the other top brass over here were mentioning to me at our morning meeting that they think it's also about our longevity in the industry and the service we provide to the Building/Construction segment. Whatever the deciding factor(s) were, we are honored to be a part of this highly-respected trade association. (You can view our BTA Membership Certificate Here)

   On a different topic, on Wednesday the 17th, the New Residential Construction figures are being released, so we'll keep an eye on those numbers.

   Also - don't forget to sign up to receive our Blog via E-mail. It's very easy...On top of the upper right column (under, "SUBSCRIBE BY E-MAIL", just enter your E-mail address, and when you receive the confirmation E-mail, click the link. Super-easy !

May You have a Wonderful Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 10, 2010

UPDATED: Private Money...Any Available For Real Estate Deals?

Hi Folks,


   Happy Mid-Week to everyone, and welcome back.

   When we posted on the topic, "Best Markets For Commercial Real Estate Investing", we had a few requests to cover the topic of "Private Money", so as per your request, that is our topic for today!

   We spoke with 3 respected figures in the field to gauge their feeling on the topic. All 3 of them seem to agree that there is private money out there that is available for Real Estate deals, and we present their viewpoints below.

   Alfred Miller, President, Private Lending Solutions, LLC, states that, "Capital isn't scarce; vision is. There is tons of money available for real estate deals.", but says that he wants his, "money invested in solid deals (diamond in the rough)!" and the deals can be either residential or commercial.

   Vernon Martin, a commercial appraiser with American Property Research, who specializes in serving private lenders (96% of his work is for private lenders), says that, "There's no shortage of money waiting to be lent, but there also seems to be a shortage of credit-worthy deals.", which is similar to what Miller has said. "Most loan applications to private lenders are for refinancing deals which are already over leveraged, so there is no way the borrower can pay off existing debt at a safe loan-to-value ratio", says Martin.

   Martin also says that private lenders are, "very interested in financing REO purchases by new investors.", and provides an example, where last week, he worked "on a $35 million construction loan that is being purchased for only $5.2 million. The private lender feels safe in lending $2.8 million. The difference is that loans can be underwritten at today's market values without any disappointment to the borrowers.". Martin points out that some private lenders are looking overseas for deals in potentially "stronger markets" (i.e., "Canada, Australia, Fiji, Barbados, South Africa, Mexico, Costa Rica and Jamaica.")

   Dennis P. Fassett, a Real Estate Investor who interacts with many sources of private money, says that, "there's quite a bit of private money out there. But it's gotten more difficult to get to, despite what the late night gurus want people to believe.", which he attributes to, "the stock market crash and Bernie Madoff scandal". The impact of the crash and the scandal had a few ripple effect impacts on private lending, Fassett says, such as, "with people out of the market, there is a lot more money on the sidelines looking for a reasonable rate of return", and "the Bernie Madoff scandal has made a lot of people quite wary of where they invest their money.",and says that, it's ironic that the scandal has also helped make local real estate investing more attractive, because the investor can go drive by the asset that they either lent against or have an equity piece of."

   Fassett provides a hint into the mentality of the private investors. He finds that, "the private investors that I deal with are looking for a track record for one and a sense of stability by me as well. I'm fortunate that I have couple of dozen deals and now own or control 54 rental units in nice areas that are all doing well. I had one investor tell me that one of the reasons that he invests with me is because I have a whole lot to lose if I screw up in terms of reputation in the community.", and he continues to say that he's also finding that, "the direct approach to getting private money doesn't work anymore, as people are getting pitched to death about everything under the sun, so I have switched to an oblique approach that focuses on drawing people into being interested in my business to the point where they ask questions and close themselves."

   As the recession lingers on, Michael Stark, a licensed real estate broker in California, is clear about the future. "The greatest transfer of wealth since the Depression is underway.". Where this will ultimately channel the private funds is yet to be seen, however, we all hope and pray that it stokes our housing market and the economy. Comments are welcomed !

Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com





UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)

November 8, 2010

Depressed Home Sales and Housing Slump Acting Like a Prison

Good Morning,

   Hope you had a nice weekend. To those of you who ran the marathon in NYC this past weekend, that is incredible. That is the ultimate definition of pushing your body to the upper limits of it's potential.

   On that note, we all wish that the housing market would push itself to the upper limits of it's potential as well, however, with the Pending Home Sales Index numbers that came out last Friday, don't hold your breath. The National Association of Realtors said, "Pending home sales retreated after two monthly gains, signaling an uneven recovery entering 2011 with some near-term disruptions from the foreclosure moratorium". Troubles abound.

   "The depressed real estate market is having another effect", writes David Schepp from AOL Finance, in an article titled, "Housing's Slump Is Keeping Job Seekers Stuck in Place". Schepp notes that it's become, "more difficult, if not impossible, for workers to relocate to take new jobs. The percentage of unemployed managers and executives relocating for new positions fell to a record low in the third quarter, according to analysis by Challenger, Gray & Christmas, a Chicago-based employment-services firm." This is an interesting angle that is not in the forefront of our minds, but it is just another casualty of the housing/economic slump. It's like a virtual "prison".

   For the remainder of the economy, there are no major housing-related numbers coming out this week, and depending on how you look at it, that might be good !

   Have You read the "Secrets of Rent to Own" (The manual on how to buy or sell via Rent to Own), or, "Will It Work In My Town?" (The Real Estate Investing Guidebook)? If not, it's worth noting that if you purchase either of those books, you will receive the other one for free. To learn more about "Secrets of Rent to Own", Read More Here, and to learn more about "Will It Work In My Town?", Read More Here.

Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 5, 2010

Best Markets For Commercial Real Estate Investing

Commercial Real Estate Investing
Hi Folks,

   Hope everyone made it through this week a few steps ahead of where you were on Monday.

   Since we always look at Real Estate and Rent to Own from the Residential angle, today we're going to take a look at Commercial Real Estate Investing, along with some information and some forecasts that could prove quite valuable for you.

   We spoke with two individuals that are quite well-versed in the Commercial Real Estate market, and we asked them about which markets are the best right now, and what the outlook is going forward.

   Our first comments come from Shari Olefson, a Real Estate Lawyer, Author, and an expert panelist who frequently appears on CNBC, MSNBC, FOX, CNN, and CSPAN. Olefson says that the best Commercial Real Estate (CRE) markets, "mirror the best - or least worst - residential markets.", and that, "Folks perceive home wealth gains or losses as more permanent than stock markets gains or losses". Olefson says that home equity gains/losses are spread across all socio-economic groups, while only the top 1/3 of Americans hold most of the stock. "Why does this matter?"; Olefson said that, "since CRE values (occupancy and rates) depends on tenants or occupants generating income which oftentimes comes (from)  folks in or near that geographic location.", and that, "When those folks feel poor they don't spend"

   Olefson offers some tips for Investors with strong staying power, in that, "they may find the best deal in longer terms non cashing flowing asset purchases from lenders. For example defunct residential projects in Florida. And particularly where FDIC loss share agreements are involved.". She also says that, "For now acquiring banks are not selling notes on these deals as the guidelines for pricing notes from the FDIC are not clear.", and , "As a result these assets are having to go thru the entire foreclosure process. But once this kink is resolved those CRE note purchases may be good values. Knowing the terms of a banks loss share agreement is helpful as during the time immediately before those expire banks will be especially eager to try to deal."

   We also spoke with Denise Beeson, a Commercial loan officer with Bay Sierra Financial, Inc., who states that, "If you are a professional i.e. MD, dentist, podiatrist, or small business owner, etc. this is the ideal time to buy your building under the SBA 504 program (10%) down, or through a commercial loan (25-35% ) down with interest rates this low.". The reason, she says, is that, "Owner occupied buildings are very appealing to the professional or business owners who have paid rent/leased and the building owners are interested in selling."

   Beeson believes that the market will continue to be, "rather 'soft' in the next 2-3 years as buyers recoup from financial problems i.e. stock market decreases, vacancies, depressed real estate prices.", and that the economy has to stabilize before you will see any active purchasing.". Beeson does go on to say that, "the private money market is prospering since commercial investors always need money to buy or refi outside of the traditional banking avenues."

   Overall, it does truly seem a mirror image of the Residential situation, but usually lags behind the events in the Residential spectrum. If you have anything to add to this, such as promising CRE markets, or anything additional, please comment below.

Have a Great Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 3, 2010

Construction, IHOP, and FSBO

Good Afternoon,
   I hope this week has been kind to you, so far. Well, I have been asked offline to not discuss the fact that my birthday was Halloween, so there...I did not mention my birthday was Halloween (Yay!)

   Construction numbers were released this week, and it is in line with our post from Friday ("Not-So-Spooky Housing Numbers"). Specifically, construction spending during September was above the revised August estimate, however, when comparing September 2009 to September 2010, there was more than a 10% drop.

   I don't know about you folks out there, but I am amazed at the amount of white-washed windows and "Out Of Business" signs. It can be frightening, especially when it affects stores and businesses that you have been patronizing for years. Waldbaums, which is a major grocery supermarket here in the Northeast, has just closed a store nearby. I had to do a double-take when I saw it's huge windows white-washed with an "Out of Business" sign. On the flip-side, we have a brand new IHOP (International House of Pancakes) being built here. Does the need for pancakes outweigh the need for basic food and groceries. Makes me wonder, but I'm a big fan of chocolate flapjacks !

   The next numbers that are coming out will be the Pending Home Sales Index on Friday the 5th.

   In closing, I wanted to let you know that our post titled, "Top 5 Concerns When Selling a Home FSBO", has become one of our most popular posts of all time. I can honestly say that I'm glad we posted it for you, and please make sure you pass the link (http://blogging.lease2buy.com/2010/10/top-5-concerns-when-selling-home-fsbo.html) to all of your friends so they can also thank you for the wealth of information in that post. If you can kindly Link to it, Tweet it, Facebook it, Digg it, Buzz it, etc,...that would be wonderful !


Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com/
HomeRun Homes Website http://www.lease2buy.com/

November 1, 2010

Rent, Buy, Or Rent to Own ?

Hi Folks,

   I Hope you had a safe Halloween with a lot of treats. Please forgive me if my style of writing is a little odd today, as the sugar rush is quite fierce this year. It is the First of November, and any way that I look at it, I am now a year older!

   A few months back, we covered the topic of, "Rent vs. Buy" in a separate post, and a few weeks ago, we followed up on the topic with a post titled, "Revisiting the Rent vs. Buy Debate". Molly Line of FoxNews recently ran a story titled, "Shattered Dreams: To Rent or Buy, That is the Question", of which I thought might be of interest to you.

   In the above-mentioned article, Line asks the question, "...is it really wiser to buy during a time of economic uncertainty? Or is renting a better bargain?". She spoke with some experts who point to the fact that people who are buying now have their financial "house" in order, and it would make sense for them to buy a home. On the other side of the debate, Line points to the positive side of renting, which means, "no property taxes, no upkeep costs, no paying for a new roof or dishwasher."

   Ultimately, there is no fine line that delineates a region of the country where people are just buying or renting...there are just trends (see http://blogging.lease2buy.com/2010/10/revisiting-rent-vs-buy-debate.html). The financial condition of the prospective buyer, the prospective tenant, or the prospective tenant/buyer (in the case of Rent to Own), would seem as if it would override most factors. Do they have a lot of debt? How is their credit? Do they have a job? Do they need a job? Just some food for thought.

   Please send us your comments and suggestions, as they always prove valuable for your fellow readers here.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com