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Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts

December 11, 2017

What Happens At The Intersection Of Real Estate And Bitcoin (Cryptocurrency?)

Hi Folks,
   I hope you are having a blast this Holiday season thus far!!

   I think we can all agree we are pretty smart to be where we are, for the most part. Smart businessmen and women know that two of the fastest growing and most attractive industries to invest in today are both Cryptocurrency and Real Estate. This is because these industries have statistically proven to be extremely profitable especially Cryptocurrency which has shown…what…like a whopping percentage increase of up to 5,000% in just this year alone? Most of it, right now, due to Bitcoin,.

   Real Estate has always been on the rise, as it seems to appreciate as years go by having an average yearly increase of 6.4% as it holds a much larger investment scale or base. So, today, let’s take a look at how these two heavyweight investments affect each other and are starting to and will continue to grow together.

   The Cryptocurrency industry has gained a lot of credibility in the last few years because of the established set of rules that has ensured the integrity of data exchange among many users across the globe, without the help of the governments nor any extra or third party.  As a result of this, it has earned the trust of many nations and users globally, and as things have been moving forward, it is seemingly getting the name of “The Global currency” tagged onto it.

   Today the focus has shifted from debates on its potential and security to the fact that it can be used to purchase virtually anything of value from tangible to intangible assets (including Real Estate) in a way that is more instant/quicker, more precise, and more trustworthy than other methods available today. Also, the fact that it not only acts as a universal currency platform, but also as a platform for contracts that automatically executes (ethereum) makes it all better.

   So let’s take a look at some of the major changes that will spring up given the rise of Cryptocurrencies in the Real Estate market.

1.    Smart Contracts and Agreements

   Although we know that smart contracts concepts have been in existence for a very long time, the latest Cryptocurrency programming language pattern holds features that make smart contract functionalities even more evolved/advanced.

  The normal contract patterns seemed to take more time due to trust issues and the involvement of a third party, which costs more money and still does not guarantee complete honesty. If this contract, however, was signed using a digitally signed and computed agreement (smart contract) the contract closing would occur faster because the payment of purchase price would automatically trigger the transfer of asset title, thus eliminating errors and reducing external interference. Even Rent to Own (RTO) can be enhanced, as the tangible product Rent-to-Own platforms employ this platform, electronically executing change of asset title at the completion of payments. It is evolving into the intersection there the two industries meet.

 2. Land Records and Title Insurance-

   The system by which deeds & mortgages are recorded in many developed countries today is very poor, and even more surprising is that Real Estate interest rates are tracked through paper filings tracked by local government offices, which is manually intensive and prone to fraud, putting involved parties at risk. Title insurance, an insurance product, was officially created by Cryptocurrency technology to tackle these problems, by searching public records and incurring the cost associated with the title examination.

   Furthermore, by maintaining its Real Estate records on an online database, most companies would have the ability to provide clarity on ownership of claims on all types of properties (residential and commercial).

   The database created provides, among other benefits, an easily searchable platform, fraud-combating mechanisms, and reduced costs. On completion of a particular search and transaction completion, great tangible technologies like your Epson printer or scanner are also there if you desire to give most transactions a paper trail as well. Although there are some challenges with execution of this in some countries, the possibility of the globalization of this platform is a highly achievable goal.

Conclusion: New Real Estate Investors


   The Real Estate market has always been dominated by a select few, but with the rise of crypto-billionaires, there will be a huge shake up and a resulting rise in property value in the next few years. This is probably the best time to get into the Real Estate market because the Cryptocurrencies are staking their place in our economy, so you need to be in the loop! In the future, I would not be surprised to see some collectibles, for example, Baseball Cards and portfolios of collectibles, being used as a form of currency.


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: Cryptocurrency, bitcoin, real estate, rent to own


October 18, 2013

Buying a Home? Read This First

Hi Folks,
   I hope all of you have been well, and thanks for all of your correspondence.

   The reason we are all meeting here together in this Blog is for one purpose; Real Estate. Albeit a broad industry composed of multiple niche subdivisions, it all comes down to buying and selling properties. Today, we will turn our attention to buying properties, and we'll focus on some essential things that homebuyers should be aware of before making a purchase.

   Let's step back for a moment and look at all of the moving parts here in the most common of scenarios: A buyer will utilize the services of a Real Estate agent to find a home, make an offer, and if the offer is accepted, the buyer will then utilize the services of a mortgage broker/banker to gain access to funds. Are you with me so far?

   From another angle, you are buying a house, and borrowing money (paying interest, points, etc). To be more specific, as John Maxfield of the Motley Fool wrote in a recent article, when you buy a home, you're making two purchases, and says that, "the loan itself may be the most significant piece of the transaction".

   Some other points that Maxfield touched upon was that you should look at your Real Estate agent as a partner, and additionally, that you need to keep resale in mind from the beginning. A good suggestion is to start doing your homework on agents and ask around. Check their reviews online, if you can do so locally. Speak with neighbors in the area you are looking to buy a home, and start gathering names and suggestions for you to investigate further. Once you have narrowed down your options and decided on an agent, start building a relationship with them. Only then will you be able to confidently discuss the eventual or possible re-sale of your home while looking to purchase it in the first place.

   Maxfield says that most of us "delude ourselves into thinking that we actually know something about real estate", but says that the truth is that "few of us have any idea what we're talking about". I think this statement is especially true for those that are won over by a home and fall in love before the inspection. Maxfield says that, "Homes are like people -- they all have problems", and that the "shock generally comes when prospective buyers get their inspection reports back". That's when some tough decisions need to be made and some negotiations have to take place (regarding who makes repairs, who pays for them, and so forth). Not the most exciting time of the homebuying process...take my word for it!

   Look, the truth is that the right home is out there for you. If you educate yourself, learn the market, know what you will be facing as far as home price, mortgage "price", possible resale value, and whatever else might be necessary in your state, you will prevail.

   Remember, if you want to take a softer approach to buying a home, the answer is quite simple; look into Rent to Own. You're certainly on the right website for that option !


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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com

HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #buyhome #realestate #agent #broker #mortgage #inspection #renttoown



August 14, 2013

Printing Power, Redefined !

Hi Folks,
   I hope all is well, and I'm glad to be back here with you.

   The good people at Epson have provided me a wonderful opportunity to test out their Epson Workforce Pro WP-4533, which has truly made an impact in my chaotic office.

THE PRINTER:
   This is a solid multifunction machine! The Epson Work Force Pro WP-4533 has some pretty slick features, such as the ability to Network it or print from devices over the Apple or Google Cloud-Print types. It tops out at a maximum printing resolution of 4800x1200 dpi, but in work-horse mode, it also acts as a two-sided printer, plus it functions as a Copier, Fax machine, and a Scanner. Scanned images can be saved to a PC or a flash drive, saved to PDF file format, or sent as E-mail.

PROs:
   Let's start out with the positives; I'm a tech-guy, and I have unboxed some messy equipment before, but this was a snap. Great instructions and very easy to assemble, with the installation of the four ink cartridges, and no need to toss everything when it's gone. Real quality machine, and great value!

CONs:
   The printing speed is 16 black pages per minute, a little slow, but just fine for my team. Additionally, the printer sleeps in a power save mode, but it wakes up fast! The LCD control panel is a little small, for those of us with imperfect eyesight.


THE BOTTOM LINE:
   This is a turn-key printer that provides you with not only a printer, but also, a copier, scanner, & a fax. Additionally, it is quite a bit less to use that a laser printer.



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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com

HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com




TAGS: #Printer #Epson #review #renttoown




August 31, 2012

Pricing Your Home Off The Market

Hi Folks,
   I hope you've had a great week, thus far.

   If you've seen the Real Estate news from this week, we had some incredible news, with the National Association of Realtors (NAR) stating that "Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels" (Up almost 2.5% from June 2012 to July 2012 and almost 2.5% from July 2011 to July 2012). With this fantastic news, we also heard from the Standard and Poors/Case-Shiller folks that Home prices are on the rise, showing, "positive annual growth rates for the first time since the summer of 2010", and also, this is the second consecutive month where "all 20 cities and both Composites recorded positive monthly gains."

   So if you're selling a home, where do you even begin to price it? Emotions usually dictate the offer price that a seller will choose, as opposed to solid, fact-based reasoning. HomeGain.com ran a survey earlier this year that uncovered the following: "76 percent of homeowners believe their home is worth more than the list price recommended by their real estate agent."

   "Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there", says Dian Hymer, a veteran real estate broker, author, and a nationally syndicated real estate columnist, in a recent story on the Inman News website. Hymer says that "Buyers look at a lot of new listings. They make offers, know what sells quickly and for how much, and what doesn't and why." HomeGain reported that "homebuyers still think sellers are overpricing their homes."

   Hymer says that if a home lacks features from recent sales comparables ("comps"), "it's time to subtract value". She reminds us that a home is worth "what a buyer will pay for it given current market conditions", which may conflict with your opinion on price or what you are hoping for. With a spot-on comment on this dance, Hymer says that "Relying on emotion rather than logic when selecting a list price can lead to disappointing results."

   As for timing, Hymer says that it's the "prime opportunity for selling a home" when it first hits the market, as there are buyers who wait for these new listings, and as she writes, these listings "receive the most showings and have the busiest open houses during the first couple of weeks they are on the market". With that rule in mind, that is the time to show off your home at an attractive list price, and she aptly says, "Listings that sell today are priced right for the market". Very simply, Buyers want to feel they are getting a good deal, and will not overpay in a market that is still dropping or struggling, and Hymer says that in areas of strong sales, "buyers may shy away from multiple-offer situations if they feel the recovery is fragile and that prices may slide further before stabilizing", thus, effectively, it seems they would step away from engaging in a bidding war.

   As most of you are aware, real estate agents and appraisers use "Comps", or sales of similar homes in your area, to help establish a price range for offering/selling your home. Hymer says that if your home does not have a feature of a specific Comp (i.e. a remodeled kitchen), value is subtracted from the value of your home, and if your home has a feature that a specific Comp does not have (i.e. an easily accessible, level backyard), value is added to your potential sales price.

   With that being said, we're all human, and emotions play a factor.

   As Hymer says, "It's difficult for sellers to step back and take an attitude of detached interest in their home", and adds that it's "essential to do so if you want to sell successfully in this market.". She suggests selecting a "list price that undercuts the competition to drive buyers" (and offers?), to your home. She also says that if Comps show prices moving up, you can take a "more aggressive stance on pricing". "But don't list too high", cautions Hymer, who says that it's better to "stay in the range shown by the comparables and expose the house to the market before accepting offers", since the market will drive up the price if it's warranted.

   As a final note, Hymer cautions us not to rely on rumors about home sale prices that circulate in the neighborhood, as they tend to get inflated when "passed from one person to another", and suggests that you, "Select your list price based on hard facts."

   What are your thoughts on this? Have you sold a home before? Have you overpriced it? Did you underprice it? We'd love to hear about your experience, good or bad.

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Happy Birthday to my son, who turned 6 today !

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #HomeSales #HomePrices #RealEstate #homebuyer #homeowner #salescomparables #Comps #Appraiser #NationalAssociationofRealtors #NAR

July 5, 2012

Developers Say, "If You Build Them, They Will Rent Them"

Hi Folks,
   Hope you had a great July 4th, and if you were lucky enough to snare a 5-day weekend, then good for you !

   It always amazes me to see the things people do to adapt to the financial environment, but when you start looking at what large companies do to adapt, you quite often will see a slower response, as the inner mechanics all need to line up, however, that is not always true!

   With the bump in May building permits spanning both single and multi-family (apartment), this indicator of future construction made it to the best levels seen in about 4 years. With this market direction, a large number of Developers are building single family homes as rentals, per a recent article on CNBC.com, titled, "More Builders Are Turning to New Market: Rentals".

   The interesting point, the article says, is that, "Historically, builders did this largely in low-income, government-subsidized housing projects", but goes on to say that the "market is quite different today." One such developer mentioned was Joe Petersen of Insight Real Estate Strategies in Texas, who said that "there are so many people with mortgage issues … and just recognizing these issues will not go away soon, we felt like how could we deliver high quality rental housing in a product that single family homeowners would appreciate?”. The answer: high-end homes built specifically as rentals, which takes all of the variables into account (mortgage industry, economy, etc).

   Petersen is clearing land and raising money to build single family homes just outside Ft. Worth, and does mention that a lot will be different in this type of construction, including the maintenance and business plan, but he "believes demand is strong enough for him to be able to charge premium rents"

   Petersen is banking on the fact that since rent homes are typically "not the nicest homes", that he will be able to offer people something different, "having a professional staff on site, maintaining and managing it", in which they can "offer a lifestyle very different from a part-time Realtor or a homeowner who’s renting it because he can’t sell".

   Now, back to those "rent homes". Per the CNBC.com article, Beazer Homes recently launched a “pre-owned” business, “for the purpose of acquiring, improving, renting and ultimately reselling previously owned homes within select communities and markets which we operate,” according to its recent 10-Q.

   Taking this a step further, Beazer is "buying foreclosed homes", "rehabbing them, then renting them with the intention to ultimately sell.", so in other words, Rent to Own. Petersen is also keen on the Rent-to-Own option. He intends to build up to 300 homes, and will use the rent-to-own option just as other builders have; "to alleviate a backlog of unsold homes and reduce carrying costs."

   What are your thoughts on this strategy?

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #realestate #developer #buildingpermits #futureconstruction #builders #rentalhousing #renttoown #rent-to-own #foreclosedhomes #rehabbing #realtor #homeowner

March 9, 2012

Current Real Estate Scams

Hi Folks,
   Hope all is well, and glad to have you with me.

   As we always like to do our fair share of Public Service, this installment serves as a Scam Advisory notice for the general home owning public, as well as a different kind of Scam involving Realtor-on-Realtor crime.

   If you receive calls from someone claiming that they can help you receive a piece of the $25 billion national mortgage settlement (between Government housing agencies and the nation’s top banks), you could be getting duped by "phone solicitations from scam artists who offer to get them assistance", writes Leslie Berkman in her article, "Attorney General warns of mortgage settlement scams".

   Berkman, in discussing the warning put forth by California Attorney General Kamala D. Harris, warns homeowners to be "skeptical of third party phone solicitations and do not give your personal financial information to a solicitor such as your bank account number, social security number or even the name of the bank that is servicing your mortgage", and that "only the financial institution servicing your mortgage can help you get mortgage relief available from the settlement agreement". AG Harris also reminded the public that it is illegal to charge an up-front fee for mortgage modifications services in the state of California, and that this should raise a red flag if someone asks you for money upfront (Harris said these cases should be reported to the California Department of Justice).

   In another strange case, and perhaps a sign of the fierce competition amongst Real Estate Agents, a broker in Florida was caught with a trunk full of Realtor signs. However, "The problem was they weren't his", says Michael Pollick in his story about this incident ("Real estate broker accused of stealing competitor signs"), and he writes that the broker had 37 of his competitors' signs in his trunk. The result, of course, was the arrest of the broker.

   Now, I'm sure there have been other odd things happening in our vast Real Estate industry. We'd love you to share some of these odd things with us!


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #RealEstate #scam #realtor #mortgagesettlement #homeowners #mortgagerelief #California #AttorneyGeneral #Florida

January 31, 2012

Use A Mortgage, Rent It, Or Use Other Options

Hi Folks,
   Thanks for joining me here. I am so glad to write for you! OK, I promise not to corny.

   Over and over we hear that it is tough to get a mortgage. If you can't get a mortgage, what are some other options. What if you want a home, but don't want a mortgage?

   "It’s getting more and more difficult to qualify for a traditional mortgage", writes CA Hagy in an article titled, "Three Alternatives to a Traditional Mortgage". What are some reasons why you might be declined? Hagy names a few possible reasons, i.e. a foreclosure in your past, inability to prove a "decent cash flow", and self employment resulting in "irregular income?".

   If you fall into one of the categories mentioned above, you're not alone. Hady points out a few mortgage alternatives that might help you meet your goal(s).

   One option is to go the route of "Seller Financing", in which the "current homeowner offers to sell you the house", and you make payments to them but "they continue to hold the note until you have paid off the home". Hagy says that for a homeowner that cannot find buyers due to the tight lending situation. Seller Financing may be a "feasible option". The seller basically becomes the lender, and an agreement is drawn up with the full details of the transaction.

   "Borrowing from a Self-Directed IRA", writes Nagy, is "typically designed for investors who want to buy a home but don’t have the upfront cash to make it happen". As defined in the article by Nagy, "A self-directed IRA is somewhat like a Roth IRA or a traditional IRA", however, it's more flexible, For example, the IRA can invest in real estate, etc, but the "main catch", as Nagy calls it, that the IRS "does not allow you to use your own account or the account of a relative or business partner", thus, you "cannot use your own self-directed IRA to purchase a home. But you can use the money from another person’s self-directed IRA if they are not related to you". Confused? Nagy says that there are many investors "who will allow buyers to use money from their self-directed IRAs as an investment deal", and the investor would "own an interest in the property", or, the investor can simply "loan the money like a regular mortgage".

   The other option, "Leasing or Rent to Own", is something you might be quite familiar with, especially if you are a frequent visitor on our website. In a nutshell, the buyer can rent a home before actually purchasing it. The rent to own arrangement, which is also referred to as lease to buy, lease to own or a lease option, is one in which the buyer has an option to buy the home at a specified price within a specified period of time. This option would also benefit a seller unable to find qualified buyers, and would certainly benefit buyers who need time to save for a down payment and to "improve their credit score", says Hagy.

   Let's stay on the topic of Renting and Owning for a moment.

   "Sometimes it is better to rent than to own", writes Leah Ingram, in her article, "Rent or Own a Home?", who admits that "in today's real estate market it's not surprising if people are a bit gun shy about buying or owning a home." and she provides 3 tips to help you decide on renting vs buying.

   Ask your self; Do you have documented income, a good credit history, and a steady income? These are some important items to have in order to buy a home, in the first of three tips, courtesy of Jessica Edwards of Coldwell Banker Real Estate, within the article from Ingram. Edwards adds that if your income is unreliable, "getting tied down to a mortgage may not make the most sense financially".

   The next tip is to make a "timeline" of how long you will stay in the home; if it's just for a couple of years, you are "less likely to see a significant financial return on your investment", says Edwards, and says that if you stay under 2 years and sell it, "you may find yourself having to pay capital gains taxes".

   "Crunch the numbers", says Edwards, in her third tip. Add up the mortgage payments real estate taxes, insurance payments, maintenance costs, etc. and compare these costs of ownership vs. the cost of renting (monthly rent and average utilities).

   Ingram says that "buying doesn't always make sense and neither does renting", and suggests speaking with a "real estate expert, your tax person, and a financial professional" before deciding to rent versus buy a home.

What are your thoughts? We'd love to hear.


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #traditionalmortgage #foreclosure #SellerFinancing #homeowner #SelfDirectedIRA #IRS #Tax #RealEstate #RenttoOwn #leasetobuy #leasetoown #leaseoption #capitalgains

January 25, 2012

Buying a Home: Benefits, Mistakes, and Tips

Hello All,
   Glad to have you back with me.

   Quick Question: Are you looking to buy a home? Do you own a Home? Do you own a few homes? Do you sell homes? If you answered "yes" to any of these, this Blog post could be a huge help in meeting your goals.

   We all know the "American Dream" about homeownership, and the pride that comes along with it. As Jonathan Slappey writes in his story, "Top 5 Reasons to Buy a Home in 2012", this dream is "a very feasible aspiration for 2012."

   One of the "reasons" that Slappey lists was Appreciation, and in combination with the low current prices and historically low mortgage rates, he writes that you can "almost ensure your home’s appreciation in the future" (He adds that "many foreclosed homes are available for a fraction of the original cost.").

   Before jumping in, potential homebuyers need to plan, and then plan again, and then again.

   "Property insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills are some of the costs first-time homebuyers tend to overlook.", writes Polyana Da Costa in her story titled, "Common mistakes first-time homebuyers make". Taking one step back, Da Costa writes that "Home buying doesn't begin with home searching. It begins with a mortgage prequalification". Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Il, was quoted in Da Costa's story, in which he said that, "You get preapproved, and then you find a home". so that you'll "financial decision versus an emotional decision". Sound advice.

   Now, about those expenses Da Costa listed above; If a homebuyer spend their entire savings for the down payment, closing, etc, then what happens? Conarchy says that this is "one of the biggest mistakes first-time homebuyers make". Additionally, in the same story, Da Costa warns that "Any new loans on your credit report can jeopardize the closing", since lenders pull credit reports prior to the closing to "make sure the borrower's financial situation has not changed since the loan was approved".

   Getting back on course, some other reasons Slappey listed as positives for buying a home this year were tax-related. "Property Tax Deductions" are a major benefit, as Slappey writes that "real estate property taxes for a vacation home and first home are fully deductible". Another reason, "Preferential Tax Treatment", which he says that since Capital Assets are given preferential tax treatment, this would benefit you if you own the home over a year and you "receive more profit than the allowable exclusion after the sale of your home" (the profit will be considered a Capital Asset).

   On the topic of Taxes, the average first-time homebuyer may not be aware of the ins and outs, since they might be buy-and-hold for many years, a real estate investor would be more aware of tax incentives. In the story, "Tax incentives and tax deductions for real estate", Iylce Glink and Samuel Tamkin write that "Real estate is one of the few businesses in which you can accumulate wealth, buy and sell properties repeatedly and never pay any federal income taxes if you follow certain rules". They add that by using certain depreciation rules, "you can make money from renting properties and create a scenario where you might make a great amount of income yearly but pay no federal income taxes on that income". This, however, is far outside the scope of this particular Blog post, albeit quite interesting.

   "Equity Building", which Slappey calls a "new trend being used by some homeowners", basically means that homeowners can/do add money to their monthly payment to pay it down faster. The result is a shorter home loan length, which means owning their home faster, along with some additional benefits.

   The final reason Slappey listed as a reason to buy a home this year: Pride. An example he gives is blasting your music as loud as you want! "No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride", says Slappey.

   Do you agree?


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #buyhome #sellhome #foreclosedhome #lowmortgagerates #homebuyers #downpayment #closing #PropertyTax #CapitalAsset #realestate #incometax #rentproperties

November 14, 2011

Housing Scams Continue to Blind-side Homeowners

Hi Folks,
   Good Morning and welcome back.

   We are all familiar (perhaps even all too familiar) with Identity Fraud when trying to secure a mortgage, but this has been on the decline with all of the new regulations in place, as discussed in my previous Blog Posts. Those committing these fraudulent acts have now moved onto other shady tactics to take advantage of those impacted by the housing market’s downturn.

   With the surge in distressed homeowners and people with upside-down mortgages, a big window of opportunity exists for the scammers, says Amy Hoak in an article on Marketwatch. She said that some offer document preparation, loan modification, attorney services, etc, and they sound like the real thing, and are able to gain a homeowner’s trust.

   "They offer a service, take the homeowner’s money, then disappear", adds Yolanda McGill, senior counsel for the Fair Housing and Fair Lending Project of the Lawyers’ Committee for Civil Rights Under Law, however firms are now prohibited from asking homeowners to pay before services are rendered per the Mortgage Assistance Relief Services Rule, with an exception for attorneys. McGill says, however, that this is "causing some scammers to pose as representatives of law offices".

   Some other scams include a quit-claim deed, which McGill says, "transfers ownership of the home to the scammer, who promises the homeowner a situation where he or she will be able to remain in the house". Another one she mentions is when those who have already lost their homes are being approached to pay money to get the home back. The underlying lesson here is, "Don’t give anyone money to help you with this” she says, and suggests that you seek out a U.S. Department of Housing and Urban Development-approved housing counselor and your servicer.

   When a lender accepts a lower mortgage payoff than the home is currently worth, this "short sale" can be a "lifeline for a distressed homeowner heading for foreclosure", writes Hoak. However, this opens another window for fraud.

   Hoak writes about one such scam when a seller or a representative doesn't submit the best offer to the lender, and "A middleman purchases the short-sale property at the lower price, then turns around and resells the property to a legitimate buyer at a higher price — often on the same day", and effectively, "The middleman pockets the difference, sometimes sharing it with an accomplice", and she cites a recent Federal Bureau of Investigation report on mortgage fraud.

Another fraud mentioned in the story is “reverse staging", where the scammers try to "manipulate the price lower by encouraging the owner to make the house look worse than it is". This approach eventually results in the property becoming run-down and possibly even an eye-sore, which would reduce any appraised value or price evaluation.

   There are many other scams that can involve multiple players in the Real Estate market, and there are new ones springing up all the time. Be wise, be wary, and ask a lot of questions.

   Have you seen any scams that we should all be aware of?

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Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
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TAGS: #shortsale #foreclosure #reversestaging #realestate #distressedhomeowners #MortgageAssistanceReliefServices #mortgagepayoff #IdentityFraud

November 7, 2011

Here Comes The Cuban Real Estate Market

Hi Folks,
   Hope all is well, and glad to be with you!

   For many of us, the "Free" Cuba that we know about comes from history books or stories that have been passed down. For those of you who lived through Fidel Castro's takeover, this story will be quite interesting to you.

   In a recent story on the PropertyWire.com website, they broke a story that sums it all up; "New Cuban law will create a property market for first time since 1959". Property Sales have been banned since shortly after Castro took power in 1959, who wanted to stop the "absentee ownership by wealthy landlords", and gave title to whoever lived in a home. The result was that if you left the island, you forfeited your properties, says the website PropertyWire.com.

   For years, since a property market was illegal, the only way to swap houses was via black market deals, "complicated barter arrangements", "sham marriages" (to make deed transfers easier), as well as other mechanisms listed on the website.

   The new reform, which is a very important one by President Raul Castro, comes after a reform that permitted buying and selling of new cars, going into business for yourself, as well many other progressive reforms.

   As the website says, "Cuba has a population of 11 million people and a housing shortage", and that it is not unusual to find "three or four generations crammed into a small apartment or divorced couples under the same roof". Now, as we anticipate the approval by the Cuban National Assembly on November 10th, "Buying and selling property is to be allowed in Cuba with new rules coming into effect next week", which PropertyWire.com says us the "first official move to allow the creation of a real estate market".

   Additionally, the website says that it is not yet known if there will be restrictions on the number of properties a person can own or about how flexible the new property market will be, and says that "The effect of creating a housing market in the stagnant Cuban economy is uncertain".

   What does this mean? It means a stronger, more self-sufficient neighbor in our Hemisphere that can perhaps become a part of the Global Economy, which would mean a stronger influx of money, a potential repeal of sanctions, and an influx of tourism from not only the United States, but also from around the world. With Raul at the helm, Cuba might see the sky as the limit. Havana holds it's own future in it's hands...

   What are your thoughts?

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TAGS: #Cuba #Havana #RealEstate #FidelCastro #RaulCastro #propertymarket #reform

October 23, 2011

Costly Mistakes When Mortgage Shopping

Welcome Back, Folks,
   Fall has fallen, but it's not the only thing that has fallen.

   The mortgage market is in a baffling state, which has been referred to as "Irony", in comments from Lawrence Yun of the National Association of Realtors® (NAR), a which we discussed in last Friday's Blog Post ("Snapshot of September New Construction and Existing Home Sales"). Yun points to the paradox of historical affordability conditions with more creditworthy borrowers, but contract failures that are at elevated levels, regardless of the favorable conditions.

   Could it be partial accountability on mistakes that the borrowers are making? It's quite possible, and in a recent article on the Inman.com new website, titled, "3 mortgage mistakes you can avoid", Tara-Nicholle Nelson (of rethinkrealestate.com) lists these mistakes along with some suggestions to overcome these personally-set obstacles.

   If your mortgage amount that you owe outstanding is greater than the value of your home, you are considered "upside-down", and if you fail to try refinancing because of that, it's a mistake, says Nelson. She writes that approx 23 percent of all American homes are upside-down, and that you should not feel "trapped" with high interest rates. As a matter of fact, Nelson writes, "multiple options abound for lowering your interest rate and monthly payment if you're upside down on your home loan", and says that banks are increasingly "amenable to simply modify existing mortgages to render them less prone to default and foreclosure", especially if the homeowner is trying to recover from financial hardship. as long as you have not missed any payments, she says that "many banks offer refis on mortgages as much as 25 percent underwater", and also mentions HAMP (Home Affordable Refinance Program) as options. Seek out help from Mortgage professionals to review your options.

   Nelson points to the potential for low satisfaction, low speed, and low assertiveness from just walking into a bank to get a mortgage, however, if you go with a mortgage broker or a private mortgage banker through referrals of your close friends and relatives, says Nelson, "chances are good you'll get someone who understands that the long-term health of their business depends on you and clients like you getting a deal closed in a timely manner".

   The third mistake that Nelson points out is when you think that you are stuck with your mortgage for 30 years, and says that she has head people say they didn't want to buy a home "because they were depressed by the thought of a debt that would last 30 years". She adds the following piece of wisdom: "you control when you pay your mortgage off, and it doesn't take a lottery or inheritance windfall to pay yours off sooner than later", and says that paying a little extra towards the principal can go a long way in shrinking the time it takes to pay off your mortgage.

   To summarize; You do have control and power to make changes to your mortgage, which can have a positive outcome on your entire financial bottom-line. What other mistakes have you seen borrowers make, and what can they do to avoid those pitfalls?

   On a personal note...a very special shout-out to a very special lady. Danielle, Happy Birthday. Love you, honey !

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TAGS: #mortgage #realestate #upsidedown #refinance #interestrate #mortgagepayment #mortgagebroker #bank

September 25, 2011

People Plus Property Equals Interesting Real Estate News

Hi Folks,
   Monday again! That was fast !

   A few interesting and cool things going on in the world of Real Estate, and I figured that you might find these items interesting, too.

   A "Real Estate Cafe"...yes, you heard it right ! "The Maggio Shields Real Estate Cafe in Rehoboth Beach is a fusion restaurant of a different kind; it melds real estate with breakfast and lunch", writes Diana Dwyer, in a story on Delmarvanow.com. The restaurant/office hybrid appeals to hungry people - hungry for food or property. Managing chef Aric Roork commented that the saying around The Cafe is: "Have your cake and condo, too!", The Cafe serves soups, salads, sandwiches and pastries. This concept has been catching on in other countries, as well, so they may be onto something here!

   A "Real Estate Bus Tour"...you cannot make this stuff up! The national bus tour called "Home Ownership Matters", writes Claire Simms in an article on firstcoastnews.com, aims to "educate consumers about the real estate market and changes that could be coming to the industry", and further, to "raise awareness" of possible down-payment requirement changes and about the home buying process.

   Own a Home in China? You are en eligible bachelor! "China has a strange condition these days in which a man must buy a house before a woman will agree to marry him", says a recent article on TaiwanNews.com. What is the result of this? Due to the "gap between rich and poor", the story says, "many young people are unable to afford a house and thus not able to get married", which is likely to continue in the future. Apparently, Chinese officials are "scrambling to find a way around this impasse".

   It's a big world out there with a lot of property. There's a whole world of interesting news when people collide with property ! What do you think?

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TAGS: #China #Rehoboth #Delmarva #downpayment #Taiwan #property #RealEstate

September 11, 2011

Feds Finally Keen on Rent to Own Housing

Good Morning Friends,

   I'm glad to have you back another week to examine the Real Estate Market, look at some options that are open to you as a buyer or a seller, and to interpret the moves that the Government is making toward improving the Housing Market and the Economy.

   Today, we are actually going to hit all 3 of the above points in one Blog Post, and some of this information will surprise you!

   For quite some time, Rhode Island Senator Jack Reed has been, "calling on Fannie Mae and Freddie Mac to rent out their massive, 250,000-strong inventory of foreclosed homes in order to 'shrink the inventory of government-owned homes'", as Carol VanSickle points out in her story ("Federal Rental Program Update: White House Supports Rental Program"). Reed believes that by the Government taking on a landlord role, it would help "diminish the glut of foreclosures".

   According to Federal Reserve Chairman Ben Bernanke, per a recent article by Christina M Johnson ("Rent To Own - Forecast Bright As Home Sales Continue To Be Gloomy"), he believes the U.S. Housing Market is a strong factor that is hurting the broader economy, and believes that the massive amount of foreclosures selling below cost are "one of our country's biggest economic drains".

   Johnson, who was been privately buying and selling homes for 20 years, says that as we have seen, "foreclosures offered at below market pricing forces all housing prices to continue downward", and that this is one never ending cycle. Exacerbating this are the lending restrictions (lowering the bar on potential buyers), along with decreasing home prices. Johnson fears that we could become a nation of renters with only the "rich few as the exclusive property owners", and she cites data from Realty Trac, Inc. and CoreLogic that estimates millions of homes either in foreclosure or very close to going into foreclosure...currently!

   The following question was raised by Johnson; "Could the rent to own home sale market help pull the U.S. out of its economic slump?". Could the Government acting as a landlord help us? As VanSickle writes, "Previously, the idea of a landlord-government has been met with strong resistance."

   The "Winds of Change"...

   "Reed finally has some real support in the form of a call to action from the White House", says VanSickle, and says that the Obama administration has announced that "the government-controlled GSEs should partner with private investors in order to make Reed’s proposed rental program a reality", and the president said that the administration is “soliciting ideas” on how to put Reid’s concept into action. In an article titled, "Feds seek ideas on renting government-owned foreclosed homes" on the Seattle Times Website, Officials from the Obama administration and the Federal Housing Finance Agency (oversees Fannie Mae and Freddie Mac), said they hoped for innovative solutions to the "severe oversupply of single-family homes".

   The Seattle Times story says that Federal officials are "seeking ideas from investors and others about how to rent some of the nearly 250,000 foreclosed homes owned by government-backed entities such as Fannie Mae". VanSickle writes that the end goal is to "“turn the federal government’s inventory of foreclosed houses into rental properties that could be managed by private enterprises or sold in bulk”, and Johnson writes that Government incentives would "generate even more interest from other professionals related to the home sales industry, offering their help and expertise to help facilitate a successful rent to own transaction". This would, in turn, help the related fields and related services that are depending on Housing to get back on it's feet.

   U.S. Treasury Secretary Timothy Geithner recently said that they are "Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability", as Louis Aguilar writes in The Detroit News story, "Feds aim to revive Michigan's foreclosed homes".

   Aguilar writes that among the strategies on which agencies are "seeking comment" are rent-to-own programs and "ways the properties can be used to support affordable housing". He adds that the program might have a "big impact on Michigan", which, as per the U.S. Housing and Urban Development, or "HUD", ranks fifth in the nation for foreclosed properties (There is a new foreclosure properties website called the "REO PORTAL" located on the Huduser website). Along with Aguilar, both the Seattle Times story, as well as Johnson's story, both mention Rent to Own as an option gaining popularity.

   Johnson says that if the Government encourages private Rent to Own purchases via "tax breaks and financial incentives", this will reduce the amount of homes in foreclosure (and lower inventory), will stabilize prices, and would add a layer of "privatized protection". She said that the risks must also be addressed, such as potential property damage and costly evictions. Two of the most important points, however, are ensuring that the Buyer is working with someone to fix their credit (so they can actually buy the home at the end of the lease period), and on the flip side, making sure the Seller is current and does not have existing liens or a pending foreclosure on the actual home!

   In order to counter the lack of an outright sales commission due to a Real Estate Agent or Broker at the successful completion of an outright sale, Johnson has a suggestion; Real Estate Agents and Brokers could expand their services to property management, collecting the monthly rent, etc. Of course, each one of these would need to be cleared with the local Real Estate Board and also not cross over any fine lines drawn by RESPA or other Federal agencies.

   "Action on the issue might take a while", says the Seattle Times story, and says that the HUD and the FHFA announced a "request for information" that is open to all interested parties (Aguilar points to the FHFA website, where potential investors can click on "Request for Information: REO Asset Disposition"). The deadline for information requests is Sept. 15, so act fast !

   My thoughts? I've been servicing Rent to Own for over 9 years and watching how it helps buyers and sellers...but I pose the following question; "Why did it take the Government so long to open their eyes to this option?" Do you have any ideas to share on this?

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HomeRun Homes Blog: http://blogging.lease2buy.com
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TAGS: #FHFA #foreclosure #renttoown #Obama #Government #rentalprogram #HUD #RealEstate #FannieMae #FreddieMac

August 30, 2011

Short-Term Bumps, Long-Term Jumps

Hi Folks,

   Welcome Back, and I join you on this special day (it's my son's 5th birthday, and ice cream cake with the inevitable sugar rush might render me comatose by tonight). But it is a fun day !

   Back to Real Estate (what you came here for!)

   Obviously, Home Sales and Home Prices are critical to the Real Estate market, and we had a couple of figures released this week that we'd like to discuss with you today, coincidentally Pending Home Sales and Standard & Poors/Case-Shiller Home Prices.

   Per the National Association of Realtors®, or NAR, the Pending Home Sales Index was Down 1.3% in from June to July of this year, but it was Up 14.4% from July 2010 to July 2011. The NAR reports that all regions showed monthly declines, with the West showing the "highest level of sales contract activity", with a 3.6% increase from June-July of this year, and an amazing 20.6% from July 2010.

   As for Home Prices, the Standard and Poors/Case-Shiller Home Price Index reported that nationally, Home Prices Went Up 3.6% from Q1 to Q2 of this year, but dropped 5.9% From Q2 of 2010 to Q2 of 2011, and they added that, Nationally, "home prices are back to their early 2003 levels".

   David M. Blitzer, Chairman of the Index Committee at Standard & Poors Indices, stated that shifts in pricing amongst different regions suggests that, "we are back to regional housing markets, rather than a national housing market where everything rose and fell together."

   Lawrence Yun, NAR chief economist, said that the market can move into a "healthy expansion", with a return to normalcy in mortgage underwriting standards. As the Pending Home Sales Index is a "forward-looking indicator based on contract signings", and the data reflects contracts but not closings, Yun also made a point to say that "not all sales contracts are leading to closed existing-home sales", and says that "other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.”

   On a positive note, Yun says that “The underlying factors for improving sales are developing", and points to "rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge", but reiterates that it is "now a question of lending standards", along with consumers "having the necessary confidence to enter the market.”

   Here is my 2-cent opinion: I like to look at changes over the long-haul, i.e., from the same time 2010 vs the same time 2011. With that thought in mind, we jumped 14.4% in Pending Home Sales but Home Prices (Index of Prices) dropped 5.9%. Just as the title of this post suggests; Short-Term Bumps, Long-Term Jumps...!

   What are your opinions on these new figures? What does it mean to you?

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TAGS: #HomeSales #HomePrices #RealEstate #shortsales #CaseShiller #NAR #mortgageunderwriting

August 24, 2011

Young Inventory Translates To Quick Markets

Good Morning Folks,

   As we all know, there are a wide variety of measures and indices that gauge the health of the Real Estate market. One of the most important of there are the New Residential Sales figures, which incidentally, were up 6.8% from July 2010 to July of this year.

   Another such measure, and quite an interesting one, is one that was recently discussed in an article on Inman News ("11 fastest-moving real estate markets in July"). As described in the article, "Realtor.com released a list of metros with the lowest median age of inventory at the site -- a measurement of how long a property from a given metro area typically spends on the site". Essentially, the logic is that if homes are not sitting in inventory for too long while waiting to be sold, this indicates quick turnover, and thus, a fast-moving market.

   The biggest winner in this category, per the Realtor.com site, was Denver (median age of inventory was 32 days, which was the lowest among the Metros). Additionally, 6 California metros appeared in the list, and Detroit made the list, which is a good sign for their struggling Housing Market.

   Now, the converse of this measure would be the Metros with the highest median age of inventory, thus, slow-moving markets. The slowest one? Naples, Florida, with the highest median age of 153 days. Naples was not lonely in the list, as 7 of the 10 Metros tagged as the slowest-moving markets were in Florida.

   Inventory data is definitely not a new concept, but when it is examined from this perspective, it certainly paints a picture of the markets that are moving, shaking, and in some cases, sleeping.

   What are your thoughts/comments on this?

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TAGS: #RealEstate #NewResidentialSales #inventory #Realtor #California #Detroit #Florida

August 16, 2011

Housing Permits, Starts, And Completions All Rise

Hi Everyone,
   Hope you're having a productive and peaceful week. I come to you with some good housing news today!

   For the 12 months spanning July 2010 through July 2010, the 3 components of the New Residential Construction Housing statistics all showed an increase.

   From July 2010 through July 2011, Privately-owned housing units authorized by building permits jumped 3.8%, Privately-owned housing starts jumped 9.8%, and Privately-owned housing completions rose 9.5%, per the U.S. Census Bureau and the Department of Housing and Urban Development.

   What does this mean?

   This paints an overall picture of increased real estate activity from the same period a year ago. My opinion - this is a good thing. However, we are still sitting on a large inventory of existing homes, with a large percentage of that inventory as foreclosure/short sale properties. To gain a better assessment on that very important piece of the market, we will have to see what the National Association of Realtors (NAR) posts for their Existing Home Sales Index for July (due out Thursday Morning).

   Please Stay Tuned !

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TAGS: #residentialconstruction #buildingpermits #housingstarts #housingcompletions #realestate #foreclosure #shortsale

July 24, 2011

Real Estate Is Still Our Sweetheart

Hi Folks,

   Let me start out by saying this: I am done with summer. The heat, the humidity, the sweat, and the drivers. The drivers? Yes, the people driving on the road with their windows open when the temps are 100 or above. Why? To save a negligible amount of money on gas? The problem with driving with your windows open with unbearable Dew Points is that people drive erratically. The humidity and the heat fry their brains, and they are all over the road. It's along the same lines as cell phones while driving, but it's just a different form of distraction (heat exhaustion), and wiping sweat off constantly. My rant is as follows: New laws for Driving While Sweating (DWS) - when temps are above 85 degrees, your windows must be closed. Tickets from the Police, unless you can prove your A/C doesn't work. OK, I had to share that.

   Now, let's discuss our topic; "Real Estate Is Still Our Sweetheart".

   For those of you aware of the website, Zillow.com, you might have heard that they just released an Initial Public Offering (IPO) on the stock market last week. In a story from the Associated Press that was featured on Boston.com, Zillow was described as a company founded in 2004, and "provides online listings for more than 100 million homes that are either for sale or for rent."

   The interesting thing in this story ("Real estate site Zillow jumps on IPO"), is that Zillow "has never made a profit". Adding to the story, it says that "Americans are buying homes at the weakest pace in 14 years".

   However, "Zillow’s shares tripled in their trading debut on the Nasdaq stock market.", the story says, and summarizes the event as follows: "The weak housing market did not hurt Zillow’s initial public offering.", adding that, "Investors set aside housing market doldrums and rushed to grab shares".

   So why is it our sweetheart? I'm not referring to myself, HomeRun Homes, or anyone specifically. I am referring to the collective market. Regardless of what has happened with Real Estate and the underwater mortgages and foreclosures, people are still "Bullish" on Real Estate. Perhaps it is buying on Emotion vs. Fundamentals? Either way, it is good news for Real estate and for our country.

   I know, as for myself, it makes me wonder if HomeRun Homes should go Public one day. For now, let us just focus on doing what we've been doing for the past 9 years.

   What do you think? Was this Real Estate IPO explosion just a wild aberration?

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

TAGS: #realestate #zillow #IPO #homesforsale #homesforrent

July 19, 2011

It's Our Birthday ! HomeRun Homes Celebrates 9 Years of Rent to Own Homes

Hi Folks,
   I hope your week has been kind to you, or at least so far.

   OK, I'm happy and I want to share this with you...
   It's Our Birthday !

   We are celebrating 9 years of Rent to Own Homes this month.

   We are about to break the news, but here is your exclusive look at our Press Release hitting the wires this week:

For Immediate Release:
HomeRun Homes
(631) 678-5298
(631) 574-2420
http://www.lease2buy.com

Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary

Ronkonkoma, New York, July 20, 2011 - HomeRun Homes (www.Lease2Buy.com) is proudly celebrating their 9th anniversary, and is announcing substantial strides toward their goal of bringing the Rent to Own Option into the mainstream of Real Estate Transactions.

Bringing Rent to Own Into The Mainstream

It has been a very busy and eventful year for HomeRun Homes. Over the course of the past year, the company has achieved the Government-mandated PCI DSS Web Security Compliance Certification, they were accepted into the prestigious Building Trades Association (BTA), and they announced a Strategic Alliance with business documents mega-site, U.S. Legal Forms. Additionally, the company started donating services to the Wounded Warrior Homes Non-Profit Organization.

Over the first part of this year, the company purchased the HomeRunHomes.com Domain Name to co-exist with their Lease2Buy.com Domain Name. The CEO & Founder of the company, Robert Eisenstein, began offering Public Speaking Appearances, and was quoted as summarizing the previous year as, "gigantic leaps forward in making Rent to Own an option that should always be on the table for both Buyers and Sellers".

Bigger Steps In the Coming Year

Eisenstein and HomeRun Homes are mapping out another powerful year, with some very helpful new projects on their agenda. Some of these projects include; making a mobile-version of the website (for Androids, IPhones, IPads, etc), adding additional payment options for customer convenience, creating a video tutorial series for the website, and creating a page devoted to the listings (Ads) RSS feeds from the website.

The company is also looking to add more countries to cover multiple different emerging markets (South Africa, China, Russia), and they hope to make further alliances with non-profit organizations to assist them in meeting their goals. Eisenstein forecasts that with the further integration of Rent to Own as an option to buy or sell a home, "it could even stoke the fires of recovery in some languishing regional housing markets".

For additional information on the topic, "Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

Founded in 2002, HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market

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   Summary: 9 years in the books. Lots of people in their new homes as a result of our website, and a lot of people have been able to crawl out from under their hefty mortgages as a result of our website. That's what keeps me going !

   I would love to hear your thoughts, comments, and opinions!


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #renttoown #RealEstate #HousingMarkets #homes #BuildingTrades #PCI #mobile #Android #Iphone #RSS #tutorial #speaking

June 30, 2011

Was The Increase In Pending Homes Sales A Surprise?

Hi Folks,

   Glad we could all get together again this Friday...the first day of July !

   Well, the figures were just released for Pending Homes Sales, "A forward-looking indicator based on contract signings" (per the National Association of Realtors®, or NAR), and per the NAR, "Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year". To be exact, the numbers rose 8.2% from April, and 13.4% from May 2010. Was this a surprise, or was it expected...and what does it really mean?

   "Of course these figures were expected", says Galen Ward, CEO of Estately.com. Jim Kinney, a Vice President of Luxury Home Sales with Baird Warner says that the uptick in the pending numbers, "was no surprise to us as this is the prime seasonality to see an upturn--no upturn in May would be indeed very glum.". "Mays sales numbers are only representative of the "national market" (if there is such a thing) and we all now that real estate is local", per Greg Cook, a First Time Home Buyer Specialist".

   Ward says that the "The First-Time Homebuyer Credit" expired on April 30 of last year, so, "most buyers scrambled to get their offers in prior to May 1.", and Cook says that until we, "move beyond the inflated sales numbers of last years first time home buyer tax credit, we cant really tell if were better or worse year-over-year.", and adds that, "Once we move beyond those numbers (after June) the comparisons become more relevant and we might have a clearer picture of the health of our market."

   Ward extends this and adds the following comment; "Saying this year-over-year comparison is a signal of a rebounding market is akin to rewarding yourself for weighing less this May than you did last year when you were nine months pregnant."

   What does this mean? Where do we go from here?

   Lawrence Yun, NAR chief economist, said, “If banks would simply return to normal sound underwriting standards and begin lending to more creditworthy borrowers, we’d get a much faster recovery in the housing sector.”, and cautioned that job creation is critical to a solid recovery, since, "The job market has sputtered recently, and because variations in local job creation impact housing demand, markets will recover unevenly around the country".

   What are your thoughts? Is a key piece of the puzzle beyond job creation missing?

PSSSST...
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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #PendingHomesSales #Realtor #NAR #jobmarket #realestate

June 28, 2011

From Foreclosure To Eviction...Why So Long?

Hi Everyone,

   Welcome back!

   A major trend that is (sadly) happening all around us is the foreclosure process, which entails a long and drawn-out process which usually ends in the eviction of the current homeowners...or not!

   Today, let's focus on the "or not!", and see what is really going on out there.

   A recent CNN story written by Les Christie, titled, "Squatter Nation: 5 years with no mortgage payment", examined this in detail, and said that Nationwide, "it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days". One such example of "Squatters", as they are referred to, is a Florida couple, that, "have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home.". I find that absolutely incredible !

   As incredible as it may sound, this is not a new trend, says Patrick Hohman of Louisville, KY, who says that when his dad was a little boy, "they lived in their foreclosed home from 1933 to 1937. Due to the volume of foreclosures in the 1930s, they stayed in the home for 4 years before being put on the street."

   Lesley A. Hoenig, a bankruptcy attorney practicing in Michigan, says that "the foreclosure process can take an insanely long time in some cases, especially if the owner has filed chapter 13 to catch up.", and that, "Ultimately, the lender may eventually kick the person out (Likely if the person isn't making any effort to get the loan modified or catch up)", and adds that, "until the number of foreclosures die down, people are going to be able to spend up to two or three years in their house before getting kicked out".

   Hoenig thinks that the main reason people manage to stay in their house is, "because lenders aren't really itching to have vacant houses in their inventory.". Marc S Hyman JD, a Licensed Real Estate Agent in Santa Barbara CA, says basically the same thing; "The last thing a bank wants to do in this market is actually take possession of a home so banks are letting the foreclosure process drag out as much as possible.", he says, adding, "During a normal market banks foreclose quickly in order to get their "investment" back as soon as possible and put it back to work."

   The reason Hyman provides is that in this market, "a bank does not want to own a home that it will need to maintain and insure. The bank will become responsible if anyone gets hurt while on the property. Furthermore a bank will not be able to sell the house quickly. Banks are looking at any solution that does not mean taking back the house.".

   Hyman does say, though, that once it does complete the foreclosure, "it does quickly evict tenants in order to avoid the legal obligations of being a landlord eg timely repairs, insurance coverage etc.". Referring back to the Christie piece from CNN, one such "Squatter" says that, "Living in this foreclosure limbo is "Hell,"", and adds, "I feel like I'm locked in a box. I work for a financial organization and if this came out, it could cost me my job."

   Ultimately, Hyman offers up this interesting point, and perhaps something for everyone to chew on; "The squatters are getting a longer break than in the past but it will come to an end.", and says that, "The sad thing is that the squatters are spending everything they are saving while living rent free. If they did not have the squatter mentality they would be saving the money and looking to buy somewhere else with the windfall they are getting by squatting."

   Hyman makes a very good point. We need to realize that a lot of these "Squatters" are families (with children), who had been working hard for years to pay on time, until hardships arose with the Economic downturn. It does not make it right, but it's quite possible that this category of folks would never have imagined being in the foreclosure process and being a "Squatter". It seems as if the whole definition of everything we believe(d) in has taken a 180-degree turn. Tough Times!

   What are your thoughts on this hot topic?

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

TAGS: #foreclosure #eviction #squatter #mortgage #foreclosureprocess #RealEstate