Happy Blog Birthday And Some New Housing Numbers

Hi All,

   As the month of March has arrived, we are glad to be celebrating our 1-Year Blog Anniversary. We started the Blog as a source of information regarding our Rent to Own website, and it has blossomed into a machine that keeps pumping out info on the Real Estate Market, Housing and Economic Numbers, Rent to Own, along with experts and professionals providing their invaluable info, comments, and opinions. Thanks for sticking with us, and remember, our Blog can be delivered directly to your E-mail as soon as we post (See the right hand side for subscription options - yes, it's free, and you will NOT be on a mailing list - it is only a subscription to receive the Blog posts, we promise!).

   In the spirit of keeping the information machine running, Pending Home Sales and Construction numbers were released this week, and we would like to take a look at them together with you today.

   Pending Homes Sales dropped 2.8% from December 2010 to January 2011, and is down 1.5% from January 2010 to January 2011. It is interesting to point out that the numbers are 20.6% above the "cyclical low last June", according to the National Association of Realtors®.

   In terms of Construction numbers as a whole, they dropped 0.7% from December 2011 to January 2011, and also dropped from January 2010 to January 2011, to the tune of almost 6%. Private Construction dropped from December 2010 to January 2011, with Nonresidential Construction dropping almost 7% during that period. Another interesting point here is that Residential Construction increased by 5.3% over December 2010. Public Construction was up 0.1% from December 2010 to January 2011, with Highway Construction dropping 0.7% during that period, while Educational Construction increased 1.7%.

   Does a decrease in Highway Construction, coupled with an increase in Educational Construction indicate a stronger emphasis on building more schools vs. building more infrastructure, or is it just an aberration? What are your thoughts?

   Thank you again for being a part of our Blog and a part of our family !

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

New Residential Construction Breakdown And Analysis

Hi Folks,
   Happy Friday, and glad to be with you today.

   Earlier this week, the New Residential Construction numbers for January 2011 were released, and since these numbers are quite important, we're going to review them today, along with some expert commentary.

   The New Residential Construction numbers are composed of Building Permits, Housing Starts, and Housing Completions. Both Building Permits and Housing Completions were down for both the December 2010 - January 2011 period, as well as the January 2010 - January 2011 period. Privately-Owned Housing Starts, however, were up during the December 2010 - January 2011 period, but down for the January 2010 - January 2011 period.

   Kirk Nace, an active investor since 1981 who has owned hundreds of units, says that, "Like many other Real Estate reports, a monthly snap shot can be greatly misrepresentative of the real underlying situation". Additionally, Nace says that the "December #'s were partially due to builders beating the new codes by submitting applications early".

   David Rice of New Home Star Corp, says that, "While January numbers did come in below what we all may have hoped, it was by a small margin. Given the inclement weather throughout much of the Country, we may feel better about the numbers. I know that, in some of our divisions, builder offices were closed for two or three days. If someone closed a manufacturing plant for two or three days, you wouldn’t be surprised if production was down for the month by 10%, would you?"

   Additionally, Nace says that he has, "spent decades working with the top professionals around the country in and related to the real estate fields", and says that, "from what we see on the streets, we are still several years away from a market bottom. The inconsistencies being reported to Mr/s Average Joe Homebuyer has created more fear and confusion than anything. This fear has led to wide spread paralysis of these potential buyers." In closing, Nace says that, "We don’t see the situation changing until there exists a perceived level of stability and certainty."

   Well, on that sobering note, we have come along way. What are your thoughts on this?

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

Is Now The Right Time To Buy A Second Home?

Hi Folks,
   Today, we have a special guest post from Matthew Read, a home insurance specialist, who will be discussing the topic that a lucky few of us get to ponder; "Is Now The Right Time To Buy A Second Home?"

***
It might sound crazy to invest money in a second property at the moment, given the instability of the economy, but there are a few positive reasons to do so:

First:
Home prices in many areas of the country are low...very low! According to Zillow.com, the average home price in the U.S. has fallen by around $65,000, as the average price went from $240,000 down to $175,000 since 2006. Although home prices might continue to fall, they are currently at a very appealing level, and so now might be the time to invest in a second home before prices start to rise again.

Second:
Interest rates are very low, meaning that, if you can get a mortgage, now is the time to do so. For those who already own a home, the mortgage rates on a second home would be incredibly appealing at the current time.

Third:
A second home can be a great money earner. Although you might have to spend money on fees, maintenance and second home insurance etc, you could rent out the home or do a rent to buy option, covering the mortgage and making some money on top. With a strong renters market at the moment, this could be a nice little earner for you.

Finally:
It’s better than saving! Interest rates on savings are quite low at the moment, and so you may benefit more in the long run by investing your savings in property than in the bank. Normally it would be the other way around, but with the banking issues at the moment, your money may actually be safer in property investment than bank investment.

Obviously before pursuing anything like this you should talk to the real estate experts, but it is definitely something worth thinking about if you have the spare capital or equity available.

***

Thanks Matthew - hopefully, this info will prove extremely helpful to our readers.

Have a Great Day, and Happy Rent-to-Owning !

Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

What Are The Hottest Real Estate Internet Trends?

Hi Everyone,
   Glad you could make it back with us today.

   Today, I'd like to discuss some of the hottest Real Estate trends on the Internet. Some of them will be familiar to you, and some of them will be new ones that will surely become a part of the mainstream for Real Estate on the Web.

   The first "trend", if we can even call it that, since it has become super-mainstream, is Social Media, such as Facebook, Twitter, YouTube, etc. Earl Miller of 5Star Investment Group, feels, "that the hottest Internet real estate trends are social media", and says that, "Studies have shown that 90% of all buyers that are looking for a home will start their search on the Internet.", and that, "The old way of doing showings on properties with a Realtor are really fast becoming outdated. People want to see more of the property in a smaller amount of time before they actually drive out to see it." One of the many services that capitalizes on the soaring popularity of Social Media is "Tweetlister.com", which, "takes MLS listings and turns them into tweets, then allows agents/brokers to schedule them to tweet to selected Twitter account", as explained to us by Lloyd Chrein, an individual that is familiar with the service. There are numerous other utilities and services that piggy-back on Social Media, but that would encompass an entire Blog post by itself.

   Another hot trend is the Housing Search experience on the Internet. Paul Gleger, Director of Communications Office for HotPads.com, says that he is seeing a, "Particular emphasis on creating a granular and personalized housing search experience.", which he says is being done through, "interactive map technologies, neighborhood search filters, integrating the social graph into the search process, and there is an especially strong growth in mobile tools." Along the same theme, Sam Debord, a Managing Broker/Realtor with Coldwell Banker Danforth, says that one of the biggest Internet trends in Real Estate are, "tying in localized services to MLS listings.", and that, "Every web site has home listings with photos, but the more advanced real estate sites have a suite of features from multiple vendors/providers all on one page." Debord says that, "Users shouldn't have to click around to find these features, they're all on one page.", and he gives examples such as map search, area maps, Google street view, walk score, census data, school data, and pricing history. As Debord says, "Many different data sources, but no need to search around."

   Video Tutorials are also becoming increasingly more popular, and as Christine Schwalm, an Interior Designer that specializes in home staging for Realtors says, the videos she creates are, "Nothing fancy." Schwalm says that she shoots it, "with a flip camera and don't do much to edit the footage." She informs us that she does, "A one take video that lasts several minutes that follows the realtor around the space as he/she explains the property. Home buyers know that it is fairly easy to manipulate pictures, so the videos do a more accurate job of selling the property--and featuring the realtor."

   The final trend leans more toward the lending side of the industry, and Dave Galanter, President of freeMortgageFix.com calls it, "DIY Mortgage Modification". Galanter says this is a free online utility to assist homeowners in, "preparing a Mortgage Modification Application which complies with HAMP guidelines as well as individual lender's own programs. It works in a way that is very similar to Turbo Tax, with helpful hints and prompts.", and says that he is, "quite sure it is the best assistance for the DIY Mortgage Modification Applicant on the web."

   There are some exciting trends on the Internet for those of us in the Real Estate industry. I hope these have been helpful. I'm sure we missed a few and we'd love to hear about them from you.

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


TAGS: #realestate #socialmedia

What's It Like Being A Realtor?

Hi Everyone,

   Hope you had a great weekend, and welcome back!

   Today we are going to talk about Realtors, and we are going to hear from a few different Realtors about what they like and dislike about being a Realtor. As Alexis V. Halmy, a Principal Broker with Windermere, says, "Realtors are generally creative people who wear lot of hats... psychologist, decorator, organization guru, expert negotiator" and that, "there are all of the details of running a business...marketing, networking, systems, finance etc... So each day is different and there are new problems to solve all the time." Halmy says that basically, "a Realtors job is to protect their clients and also themselves from those murky waters."

   Halmy says that she likes to really, nail it for someone who is searching for the right thing, as well as being self employed, having a flexible schedule, with nobody to answer to but herself, and no corporate politics.

   Charles D'Alessandro, a Realtor with Fillmore Real Estate, also says that he loves working for himself, and as he says, he is, "Working for the toughest boss I could find, Me!". D'Alessandro also says that he loves when , "a deal is made ,buyers and sellers come together ,and it's all due to my efforts." Similarly, Laura Breitenstein, a Certified Short Sale Professional with Hermann London Group, says that she enjoys, "meeting new people and coming up with ideas on how to creatively market and sell their homes.", and also likes helping buyers find their next home (as she describes it, "It is really fun watching a buyer walk into a home and say "this is it" and they start figuring out where their furniture will go.").

   Patrizia Giassa, an Associate Broker with Keller Williams Realty Premier Properties, says that her favorite part of the job "is the constant challenge of dealing with different people with varying needs and wants and budgets and helping them meet their home goals.", and she says, "over the last 23 years, it has NEVER been boring! It still is fun and exciting ...a good thing, because its a lot of hard work and long hours too. :-)"

   Nancy Lynn Jarvis, a long-time Realtor, says that she got her license over 20 years ago, and she say that the job was interesting, and that, "you learn something new with every transaction.", and, "You meet great people, and awful people. Over time, hopefully you hone your people reading skills so you can tell the difference quickly and cut the unpleasant ones ( never to be confused with demanding ones) loose. You make some good friends along the way, too."

   Now, what would be a story without both Pros and Cons? One of the Cons that Halmy points out is, "Finding out something awful about a house someone is buying.... like a river of water running in the crawl space, or some other material issue that makes the buyer run. (And that can mean the loss of an anticipated commission which can be tough.)". She says that, "In this market what is hard is dealing with the frustrations of sellers who are trying to get their homes sold. They know it is a "buyers" market, they know that prices have dropped but they won't or can't adjust the price of their home to meet the market, despite all data saying that this is exactly what they need to do."

   Interestingly enough, D'Alessandro says that the thing he likes the least is, "watching what's happening with the mindset of many home owners today. They're solely focused on the monetary value of their homes and treat them more like credit cards. Instead, they should remember that their homes are their safe havens from the world, the place where they create memories, and a roof over their heads."

   Jarvis tells me that when the market, "tanked in 2008", she decided to, "sit it out for a while knowing how unpleasant a work environment it would become in the next year.", and ultimately, she says that she, "got bored very quickly and as a time filling intellectual exercise, I began writing mysteries with a Realtor protagonist and used some of the many stories I collected in real estate as background material." Jarvis says that she now has, "three books published and am writing the fourth, and that, "Killing people, it turns out, is even more fun than selling houses."

   Are You a Realtor? What are your thoughts in terms of Pros and Cons ?

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: #realtor #realestate #shortsale

Running Out of Homebuyers? Are We Really?

Hi Everyone,

   Welcome back and hope you had a great weekend. This is a pretty big week, with four major housing indicators that are due to be released, which are as follows:

* 1/25 (Tuesday) 9:00 AM: S&P/Case-Shiller Home Prices
* 1/25 (Tuesday) 10:00 AM: FHFA Monthly House Price Index
* 1/26 (Wednesday) 10:00 AM: New Residential Sales
* 1/27 (Thursday) 10:00 AM: Pending Home Sales Index

   We'd like to thank everyone for their fantastic feedback regarding our Blog Post from Friday January 21st, titled, "A Funny Thing Happened on The Way to a Real Estate Deal". As we have mentioned to several of you, we will be planning a new edition of that story line with all new "Funny Real Estate Stories" (we are accepting submissions via E-mail)

   I came across a very interesting story to share with you, and the title really grabbed my attention; "The Eight States Running Out of Homebuyers". In this 24/7 Wall St article (written by Douglas A. McIntyre, Michael B. Sauter and Charles B. Stockdale), the authors state that, "The devastation in some regions will never be repaired.", and they point to population desertion, jobless rates, and the eventual possibility that, "Some homes will be torn down in these pockets of high foreclosures in the hopes that reducing supplies will boost prices."

   The states listed in this article were Michigan, Nevada, Arizona, California, Illinois, Georgia, Oregon, and Florida, and in the article, the full breakdown of each state along with the sources for the data are provided.

   This is indeed a very frightening and an eye-opening story. It is also a sad story to hear of towns literally "dying".

   Do you live in any of the states mentioned? If so, what is your take on this story? We'd love to hear an inside scoop from Realtors, investors, homeowners, and home buyers.

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: #homeprices #realestate #realtor

A Funny Thing Happened on The Way to a Real Estate Deal...

Good Morning,

   Friday is upon us once again, and I hope that you've exceeded all of the goals you set this past week.

   They say that "Laughter is the Best Medicine", and I definitely agree with that. If you look at things with the proper perspective, you can always find some funny things, and Real Estate deals are no exception to this rule. In the spirit of the joy of an upcoming weekend, we're going to look at some funny stories from the Professional perspective (Realtors, Commercial Real Estate, Loans), and also from the home buyer's perspective.

   Jennifer De Vivo, a Realtor with Charles Rutenburg Realty, provides us with what she refers to as, "funny and awkward situations when showing homes.". One example was about a homeowner that was a single male, and in the home he was selling, he had a special room..."a room completely done with Wonder woman paraphernalia...(Figurines, curtains, bed sheets you name it)". De Vivo says that he was very proud and, "made sure to point out his vintage Wonder Woman boots and asked us if he wanted to twirl for us. All we could do was smile and kindly decline. In the end our clients were able to see past the superhero customization, put in an offer on the home and closed 45 days later."

   De Vivo points to another time when she was showing homes in a community with several elderly residents, and in one of the homes that appeared to be empty, they found a man sleeping so still that he appeared to be deceased, at which point, De Vivo and her buyer raced out of the house !

   "Four years ago I was taking a loan application for an unmarried couple that was purchasing their first home.", says Matt Perillie of TheRenovationLoanGuy.com. Perillie says that when he got to the point of the application where he asked if the husband pays child support, "the man says yes and she (the wife) gives him a long look and then proceeds to yell at him for about ten minutes asking how could he have a child and not tell her. It was a bit uncomfortable and the application ended right there."

   Changing gears, there are also funny stories that come from people looking for homes. Sarah Anderson of Millersville, MD describes one specific day where her and her husband visited, "half a dozen houses one Sunday morning, and returned" to an open house in the afternoon. As Anderson describes it, there were, "toddlers running around in bathing suits", which indicated that perhaps there was no open house. However, as she says, they went in. "Fortunately, the homeowner happened to be the agent, so he wasn't too terribly jangled by our random appearance", says Anderson, but it was still "pretty awkward" since he had an open house months ago...but certainly not that day.

   Another home buyer received the, "Bomb Shelter Option". Sherri Gomez said that when they were doing their final walk-through of the home, the owner was very evasive in terms of where he would let them walk in the backyard. Afterwards, Gomez asked the man what the metal sticking up out of the ground was, and he said, "That's your bomb shelter", and, "too bad - you signed the papers !". Gomez said that she sued him for the cost of filling it in and she won. She also found out that the development, "was built in the late 50's and that was an option when you bought the property. You could choose an above ground or underground bomb shelter.", and says that, "this has become a joke in our family whenever we look at houses!"

   Well, as the saying goes...all in a days work !

   Do you have any great stories to share. Please add them here, since we all could us a good laugh !

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

What Can Go Wrong During a Real Estate Deal?

Hi Folks,

   Glad to be back with you, and I hope you're week has been smooth sailing so far !

   Now, to take a look at some things that can go wrong and dampen your spirits, today we are looking at the wide spectrum of things that can go wrong during a Real Estate Sale. For the purpose of this story, I broke this down into 3 categories: Interpersonal Issues, Foreclosure-Related Issues, and all Other Issues that do not fall into the other two categories.

   Human beings tend to fudge things up on their own without much help. "The worst problem I ever encountered in a real estate deal arose from the Sellers trying to be nice people and letting the Buyer stay in the house the weekend before the closing", says Michael D. Caccavo, an attorney in Vermont. As Caccavo explains, " The Buyers got in, found a lot of problems that they hadn't noticed during inspection, and most of all claimed the plumbing, which was mostly galvanized pipe, needed to be replaced with copper. They raised the issues over the weekend, and continued pressing for concessions during the closing, including several long conversations with the realtor who was away on vacation. The closing took 4 hours instead of 1 and the realtor caved and gave back a lot of commission to the buyer just to make the deal happen". Learning a hard lesson, he says, "Never again will I allow a client to let the buyer stay in the property before closing".

   Vickie Smith of Ark Essentials Publishing says that she had a bad experience she bought a home and then the previous owner took over a month to vacate, and she says that during that time, "we were paying the mortgage and he lived there rent free. After two months he picked up his Bully Barn. We should've had some stipulation that he paid $x per day until he totally vacated!". Adam Kruse, a Broker with The Hermann London Group, says that he had someone who had to postpone their divorce at the last minute so the sale of their home could go through before the foreclosure happened, and he says that, "it was a really touchy deal, and we actually ended up closing it."

   Jennifer De Vivo, a Realtor with the De Vivo Team at Charles Rutenburg Realty, provides some things that can and will go wrong sometimes with Foreclosure-Related deals. As De Vivo, says, "Foreclosures cause people to do funny things that can ruin months of work in an instant". De Vivo describes one of the worst stories she has come across: "Once a week out before closing a vandal busted the garage door open. At first it was a dent, but then they came back and practically destroyed it leaving it hanging horizontally. The worst of it was that when I called the listing agent (I represented the buyer), they did absolutely nothing. I took matters into my own hands and pasted no trespassing signs in bright orange throughout the home exterior. My husband and partner went with one of our helpful investor clients and righted the garage door. My buyers were troopers through it all and still bought the home which was in foreclosure and the absentee owner was oversees.

   De Vivo also describes another incident: "We had another incident where we represented a buyer in a short sale situation. We closed on a home on a Friday, and over the weekend the original owner came in and stole the entire kitchen and bathroom vanities, even the toilets! Luckily my partner called the title company on Monday morning minutes before the title had been filed and was able to cancel the deal and get our clients' money back. Whew!"

   As a Real Estate Investor, Jeff Swaney has come across additional issues during Real Estate deals.

   Swaney says that Appraisal problems, which he calls, "the most rare issue from the past" is becoming more common now. He describes this as follows: "The lender orders an appraisal and then rejects their own ordered appraisal due to their underwriter initiated computer based desk top review (also called an Auto Valuation Model, or AVM). The problem for the buyer is that most standard purchase and sale agreements have an appraisal contingency, but NOT a lender initiated AVM value contingency. This means that a buyer would be contractually required to buy the home even if the lender cuts the value and the loan amount. The reason is that the actual appraisal was OK, but the lender did not like it. If the buyer has this situation occur, they must close and pay the difference in loan amounts out of pocket, or they will lose their earnest money. Buyers need to be aware of this possibility and have their agents draft a lender induced valuation reduction contingency in their contract, or they face significant exposure.

   Liens that are filed, but not yet recorded at the local courthouse, is another major issue Swaney has seen. he says that, "There is typically a gap period between the time a lien is filed and when it shows up in courthouse records. Most closing agents will require a seller to sign a gap provision that affirms the seller is not aware of any liens that have not been paid off against the house. The buyer's title insurance policy should discuss this as well. I have been to closings where prior liens were not caught and the title becomes "clouded" causing a delay or cancelling of the transaction.

   Finally, Swaney points to issues with Home Owners Association (HOA) liens, and says that, "For most foreclosures, junior liens are wiped out after the foreclosure auction or lawsuit. The only normal exceptions are property taxes and state and federal tax liens. HOA's get around this provision by simply reassessing the past due liens against the next homeowner. Beware of this because the second most powerful group to fight is the local HOA! You could find yourself as a seller stuck with paying an old (prior owners lien) off if you sell a property purchased at the local foreclosure auction. This can cause transactions to fail as the seller is not willing to pay the past bill and wants to fight the HOA. Good luck doing that. The HOA's know that it will cost you more to fight the bill than just pay it!"

   Real Estate Deals are tough! That's why it is a field that requires determination, guts, and meticulous attention to details...and sometimes a little bit of luck. Any comments? Suggestions?

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: #realestate #foreclosure #realtor #realestateinvesting

Cloud Computing and Real Estate

Hi Folks,

   Glad to have you back. If you are lucky enough to have the Holiday off for Dr. Martin Luther King Jr. Day, I hope that you have a nice, relaxing day planned.

   Lately, every time you turn on your TV, you hear, "To The Cloud", or "Cloud this", and "Cloud that". What exactly is this, "Cloud". Well, this is not the kind of cloud that you see in the sky. This is referring to a virtual cloud, where a sky cloud has billions of little droplets of water, and the Computing Cloud has billions of servers hosting Web sites and Web Applications ("Apps").

   As Wikipedia refers to it, "Cloud computing is location independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid.", which is the "Cloud", or you can even think of it as an ocean. It's huge and made up of billions of pieces.

   Now, as Cloud Computing relates to an industry, such as the Real Estate industry, Wikipedia continues to say that, "This frequently takes the form of web-based tools or applications that users can access and use through a web browser as if it were a program installed locally on their own computer." So, to break this down, a Realtor or an investor can be on the road looking at homes, and can pull out their laptop, IPad, IPhone, Droid, etc, and can access a Web Site that can run the same Home-Valuation App that they can run from their desktop in their office. Thus, they are accessing the "Cloud" to do exactly what they can do from their office. As long as their is a connection to the Internet, they can do this.

   Hopefully, this can give you a good understanding of how Cloud Computing is and how it relates to the Real Estate industry. Things have come a long way since my Commodore 64K Computer in the 80's! (Now, I'm dating myself with that statement !).

   Did I miss anything? Comments? Suggestions? We'd love to hear

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: #cloudcomputing #realestate #realtor

Factors Influencing the Psychology of The Rent to Own Market

Hi Everyone,

   Welcome to 2011! I hope you all had a wonderful and safe Holiday weekend.

   A lot of factors are involved in the Rent to own Market, and the ripple effect from any of a number of housing market changes or economic changes can be far-reaching. Dale Siegel, who writes the excellent Blog titled, "Diaries of a Mad Mortgage Broker", had recently asked us to write an article about the psychology of the Rent to Own market, and since her Blog has such a great reputation, we just couldn't resist !

   The Article, which is titled, "The Top 5 Factors Influencing the Psychology of The Rent to Own Market in 2010", is in the most recent section of her Blog, so head on over to have a read. Hopefully, the article will get you to think outside of the box when it comes to analyzing the effect of different events on the Rent to Own niche of the Real Estate market.

   Do you have anything to add to this? What are your thoughts on the psychology of the Rent to own Market? How about the Real Estate Market in general? We'd love to hear from you !

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

Two Points: Selling An REO Property and Home Prices Dropping

Hi Folks,


   Hope you're having a peaceful week. 2011 is just a few days away. Doesn't 2011 sound like such a futuristic year?

   Well, today, I would like to share a post that was written by Bob Corcoran, titled, "Five Tips to Sell REO Properties Faster", and the reason that I am sharing this with you is that this post goes hand-in-hand with my post of November 26th, which is titled, "Post-Foreclosure REO Property Maintenance". Corcoran's post looks at how to prepare an REO for sale from a Realtors point of view, but is also applicable to investors or any other parties.

   Corcoran says that, "The house needs to look just like any other house on the market in the neighborhood.", and he points out his 5 tips as follows:

1. Be a cleaner: Corcoran emphasizes that you, "have to be willing to do what it takes to get the house sold."

2. Think colors: Corcoran states that, "Red says to stop and yellow adds a warmth and coziness."

3. Add smells: "If it smells like bad, it doesn’t matter what it looks like.", says Corcoran, who suggests using air fresheners and a fresh pot of coffee. He says that, "The smell of coffee imparts the best of emotions. It tells people this is a good place to raise kids, it gives a warm and a comforting feeling."

4. Put up signs: Corcoran says that when you're marketing an REO property, "you need to make sure that it’s depersonalized and use cue cards – white piece of paper on the wall – that explain to prospective buyers the positives on what’s been done to the property."

5. Communicate often and regularly: This tip refers to the relationship between the bank and the Realtor, and Corcoran advises that, "When banks assign the Realtor to a property, it expects them to become the eyes and ears for everything that has to do with that property."

   These are some fantastic tips, and are of great use to the entire Real Estate community.

   Now, on to Part 2 of this post: The S&P/Case-Shiller Home Price Indices were released yesterday, and as per the report, "Six markets – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007". Bright Side? It looks like the major cities in California bounced back. Do you live in California? If so, this might make you happy?

   Thanks for hearing me out! Comments? Questions? Suggestions? You have tons of options for feedback here.

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: #reo #foreclosure #realtor #realestate

Drumroll...Your Top 5 Favorite Blog Posts of 2010

Hi Folks,


   Welcome back to Christmas week. If you were anywhere near a mall or a shopping center this week, you know that the traffic was at a crawl and the stores were bursting with people. You would think there was no such thing as a recession !

   Well, it's time to get all nostalgic with you. You have all gravitated to certain posts this year, and we are going to give you your Top 5 Favorite Blog Posts of 2010, starting with #5 and rounding it down to the Top Post of the year !

   Coming in at #5 is the Blog Post titled, "Post-Foreclosure REO Property Maintenance", in which we investigated into how the REO properties are being maintained while they are unoccupied.

   Coming in at #4 is the Blog Post titled, "Buying a Foreclosure? What You Need to Know First...", in which we spoke to numerous experts and foreclosure "gurus" for their suggestions on how to navigate the foreclosure property marketplace.

   The #3 Top Blog Post is titled, "Private Money...Any Available For Real Estate Deals?". In this post, we spoke with members of the lending community to gauge the availability of private money to fund Real Estate deals, and we received a number of different perspectives on this topic.

   Coming in at #2 is the Blog Post titled, "Top 5 Concerns When Selling a Home FSBO", which received a lot of traction and was ReTweeted and used in many articles and write-ups, due to the useful tips provided in the post. The sub-topics of selling a home as a "For Sale By Owner" (FSBO) that were covered in this post were Legal Concerns, Preparation of the Home, Mechanics of the Sale, Addressing Security Concerns, and Marketing the Home.

   Drumroll Please !! Your #1 Blog Post based on views, Tweets, Diggs, etc, was, "Right Time to Buy? Top Real Estate Investing Markets", in which we discussed the hottest markets for Real Estate investments. We spoke with many experts and investors across the country to provide you the best possible information. Even though this post was written a few months back, not a lot has really changed, so it is still worth a read and worthy of sharing with your peers.

   So, there you have it; The Top 5 Blog Posts of 2010, based on your views and usage of the content. We hope that we can continue to provide you with valuable and useful content, and all we ask of you is your faithful readership, your valuable comments, and for you to Retweet and Share our posts using the handy little buttons and links below the posts and on the side column of the Blog.

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/


#realestate #foreclosure #realestateinvesting #reo #forsalebyowner #fsbo

Two Personal Traits Place Real Estate Success Within Your Reach

Hi Folks,

   Happy Friday, and welcome to the weekend.

   It's been quite some time since we sprinkled a little bit of motivation on you, and it's sprinkling time !

   I have personally received a large amount of communication over the past 8 years of running Lease2Buy.com, and a fair amount of it has been requests for advice on "how to make it" in the Real Estate business. The correct answer is that there is no one true answer.

   Let me define that: Real Estate is broken down into so many small niches, that each one has it's own targets and methods. I don't want to get into each one of them, as that is outside the scope of this discussion, however, some examples are Real Estate Investing in Residential properties, Real Estate Investing in Commercial properties, Rent to Own, Short Sales, etc.

   Now, as each of these segments can have their very own set of procedures you need to follow in order to "make it", there are two major over-riding themes (great personal traits) that you can follow, which will carry you towards your goals, and let's take a look at them here:

1. Honesty - As it is no surprise, you will not get anywhere without the grace of the masses, and the best way to receive that is by telling the truth. As sad as it is, there are a lot of bad apples who will try to deceive others, but that provides only a short time gain for them. Those who are honest will be the recipients of word-of-mouth business referrals, as well as the power of good karma.

2. Do What You Say - If you promise to make a call, attend a meeting, send an E-mail, or anything else along those lines, make sure you do it! We are truly as good as our word. For example, say a given person tells you they will send you a proposal, and it never arrives. They apologize and say that they will E-mail it within 30 minutes. After one hour, you still have not received it. What will you think about that person? It should begin to raise red flags. Don't let this happen to you - perform what you promise !

   Remember, Honesty + Performance = Integrity. Integrity will allow you to propel yourself forward toward a successful career in Real Estate, and in actuality, any business endeavor in which you are involved. I will gladly speak further about this in front of any group that you believe needs to have this further defined in relation to Real Estate and Business in General (See Our Public Speaking Section).

Keep your head up, your words true, and do what you say !

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

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

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/

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

UPDATED: Top 5 Concerns When Selling a Home FSBO




For Sale By Owner (FSBO)

  Hi Folks,
   Happy mid-week to all of you. Just a few more days, and it will be my birthday (Halloween). Please don't ask how old I am, will be, or if my face is a permanent Halloween mask...I've been down that road before !

   Today, we will be taking a look at some of the best pieces of advice for people selling their home as a "For Sale By Owner" (FSBO). Based on a wide variety of discussions, we have rounded out 5 of the main topics of advice for "Fizbers": Legal Concerns, Preparation of the Home, Mechanics of the Sale, Addressing Security Concerns, and Marketing the Home.

   "If they simply refuse to list with a professional, they must know the facts and legal requirements", advises Wendy Hooper, a Realtor in Orange County California, who says that it is important to, "Download as much information from the State Dept of Real Estate as they can get their hands on and use the correct forms". Patrick E. Hudson, an attorney specializing in Commercial Real Estate Law, concurs, and adds that it is important to, "Know your State's disclosure laws to avoid litigation over the property condition".

   Preparing your home for sale is also quite important, as you can imagine. Tom Wright, who was a builder and home flipper for 30 years, advises that you need to clean up the home, rake the leaves, and clean up the lawn, in order to, "Make sure the first impression is a good one". Wendy Hooper suggests that you, "Stage the home like a new model home", and that you should visit some model homes for examples. Wright adds that on walk through days, you should, "bake some bread".

   Your game plan is almost as important as the sale itself, and these "Mechanics of Selling" the home are the keys to your success. Patrick E. Hudson suggests that you know what you are willing to pay a buyer's broker, and also, where you will go once you have a willing buyer. Along the same theme of pricing, Hooper suggests that you, "Visit the local "competition" and price the home accordingly. Homes priced correctly WILL sell".

   A huge part of the mechanics of selling your home FSBO is actually showing the home. Hooper tells us that you need to make sure the home, "is available to see with as little notice as possible", since, "Buyers are fickle and won't wait around until it's convenient for Sellers to let them inside. They'll move on and buy the home that was easiest for them to see according to their schedule". Tom Shipley, a homeowner/homebuyer, says that, "it makes prospective buyers very uncomfortable to tour a house in front of the owner.", and that you should, "ask a trusted friend or even hire someone else and make sure they go out of their way to mention they are not the owner.". The advantage to this is that, "people will spend more time looking at your house and imagining themselves living there.", but, "If you don't have somebody to help you, make sure you don't follow the buyers around.".

   As part of selling your home, you are opening your doors to complete strangers, and this could be an invitation to trouble, so addressing the security concerns is well-warranted. Lydia Player, a Realtor, says that, "A "For-Sale-By-Owner" sign is an invitation to strangers to wander through your home". Player cites many scams, where the visitor asks if you have a security system, one where they go to your bathroom and look for the prescription drugs, and one where they take photos for a "spouse who is out of town", with the photos helping them "case" the layout of your home.

   Player offers some tips to help minimize your risks:

1. Make all of your showing  by appointment only (get a name and number and call back to verify them).
2. Don't be home alone when a stranger visits.
3. Have visitors sign a guest book and ask to see identification, and put the information in a safe place.
4. Place all valuables out of sight, including prescription drugs.
5. Eliminate displays of personal information, such as which schools children attend.
6. Never leave a messages informing callers that you are not home. Don't let strangers know your schedule.
7. Request that visitors enter and exit through one door only. Have quick and easy access to all of your exits.
8. Never leave a stranger alone and watch everything they do while in your house.
9. Do not put information on flyers which would compromise security.

   Finally, in marketing your home, Hudson suggests that to increase exposure, "get the house listed on MLS, using a friend or paying a fee". Kenny Jahng, a small biz and web consultant, suggests that you, "Create a website with a virtual tour, tons of photos and contact form using the street name in the actual URL.". Additionally, if you are also looking to entertain a Rent to Own/Lease Option arrangement, you can list your home on our website (http://www.lease2buy.com/prospectivesellers.php).

   Hopefully, these tips will serve as a great help for you in selling your home "For Sale By Owner" (FSBO), and remember, there are tons of fantastic and hard-working Realtors and Agents out there, should you decide you do not want to do it alone. As always, we welcome your comments.

Have a Great Day, and Happy Rent-to-Owning !



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

Setting Goals in Real Estate Investing

Good Morning,

   I hope you've had a great week, and I hope that you have met all of your goals.

   In mentioning the word, "Goals" during our speaking appearances, we always remind audiences how important it is to set goals in anything that you do, especially in Real Estate investing. There is an entire psychological aspect behind Real Estate investing (too deep to go over in this post), and you need to assess where you stand and if you can weather the housing market "storm" before you should even list your goals and action them. Perhaps this is too abstract for this post, but always remember, we are driven by both psychology, and then by our goals. To hear me discuss this in depth, book me for your next meeting.

   Next week, we have the September numbers coming out for New Residential Construction on Tuesday (Oct 19th), and the Loan Performance Housing Price Index for August on Thursday (Oct 21st). Let's see where things are headed and let's discuss.

CONTEST TIME !

For the first 10 people who place an Ad by 11:59 PM EST Sunday Night:

We will send you a free copy of "Secrets of Rent to Own", or "Will it Work In My Town?"...it's your choice!

Where Can You place Your Ad?

Looking for a Rent to Own Home? Place Your Ad Here
Selling a Rent to Own Home? Place Your Ad Here
Selling a Rent to Own Commercial Property? Place Your Ad Here
Offering a Home Service? Place Your Ad Here

Once You Place Your Ad:

Once you place your Ad, E-mail us from the address you used to place your Ad, and let us know whether you want a copy of "Secrets of Rent to Own", or "Will it Work In My Town?".
E-mail us HERE

Have a Great Weekend, and Happy Rent-to-Owning !



#realestate #realestateinvesting #housing #residential #renttoown
 

Valuable Real Estate and Construction Industry Associations

Hi Folks,
   Friday has come upon us quite fast this week. The sun is shining and it's cool out. Fall is here. Hooray !

   Today, I'd like to discuss the mortar that holds the Real Estate and Construction industries together, and that would be the industry associations. These groups and organizations allow the professionals from all sectors and niches of the Real Estate and Construction industry to mingle amongst each other in order to create better opportunities that drive the housing market.

   The first one that I would like to mention is the Building Trades Association (BTA), which is, as they describe on their website, "made up of thousands of companies involved in all phases of the building and construction industries". Additionally, they have an invaluable Contractor Directory, which can prove as vital to anyone in our industry. They charge a nominal fee for full access to their services and registration.

   Jessie Sidhu, a multi family investor and Real Estate Broker, names the Apartment Association as a very valuable resource, stating that, "They keep you informed of all latest rules, regulations, laws (local, state & federal) pertaining to landlords and renters", as well as, "provide insights into the industry/current trends along with local vendor resources and more".

   Raj Persaud, a Sales Agent and Business Development Manager for Manhattist Inc, cites the National Real Estate Investors Association (NREIA), Multiple Listing Service (MLS), and the Real Estate Board of New York (REBNY), as his most valuable industry associations.

   Persaud says that the NREIA is a, "very sophisticated association but you can tell that they do very real work which has very practical implications for the industry", and that he thinks that, "they are the most future-forward in fore-seeing approaching challenges and mobilizing investors and professionals to address them".

   For the MLS, Persaud says that, "to just be a part of this service is incredibly convenient and instantly enhances your company to marketing 2.0. They make a search for any property in NYC with open listings very easy and at your fingertips". In discussing the REBNY, Persaud says that is serves as the, "real backbone to the property market here in NYC. Their unity of professionals brings real hope to the industry and they are always promoting better standards, including energy efficiency in buildings across the state. This is the kind of force we all need".

   Have we missed any associations that are valuable to you? Please comment and let us know.

Have a Great Weekend, and Happy Rent-to-Owning !

Steps to Acquiring a Loan

Hi Everyone,
   It's October...'nuff Said ! Since I am a Halloween baby, it's my birthday month (please don't ask my age!).

   Not Long ago, we were quoted in an article on the new "Currency" site from American Express, titled, "3 Steps to Getting a Loan", and the article could serve as useful to any of our readers that are interested in procuring a loan.

   The author, Christina Couch, summarizes the 3 steps as, "Stimulate Your Score", "Steady Your Finances", and "Readjust Your Debt Ratio".

Under the "Readjust Your Debt Ratio" step, Couch writes:
"...if you still can't get a traditional loan, you're not out of options. There are other financing opportunities to investigate, like renting with the option to buy. 'Deals like that typically last for 12 to 36 months and require tenants to pay a non-refundable option fee instead of a down payment—and usually, that fee is a lot cheaper,' says Robert Eisenstein, president of HomeRun Homes, a real-estate firm in Lake Ronkonkoma, New York.'There are a lot of creative ways to buy, and a lot of very specific mortgage programs out there, if you don't qualify for traditional loan products,' Eisenstein says. 'You just have to do a little homework.'"

   Head on over to the new American Express "Currency" Site to have a look around at some really great articles (as well as the one mentioned above).

   Next Week (Monday 10/4), the Pending Home Sales Index will be released. These are key figures, so let's monitor them together.

Have a Great Weekend, and Happy Rent-to-Owning !