What Makes Buying a Home So Special?

Hi Everyone,
   Friday is here, and glad you're here with us today !

   If you're a Generation X or from a time even before that, you might remember your parents saying that owning a home is the pinnacle of success in life, and over time, that thought was ingrained in your head. What made them say that? Why does it still hold true today (for a majority of folks)? With all of the chatter surrounding home prices, mortgages, and the housing market, what are the real mental, emotional, and lifestyle benefits of owning a home?

   It's all about the "Roots"

   Carla Hill writes about these roots in her story, "The Joys of Homeownership", on the RealtyTimes.com website. Hill says that you put down roots by becoming part of a neighborhood and community (as opposed to renters, who "come and go as quickly as leases renew"). These roots can potentially develop lifelong relationships, and Hill says that during your time in the home, the home "will see you through many of life's important milestones".

   The image of a young couple buying a home and building a nest, with a plan on starting a family, will make these homes become "the container of countless memories", as Hill says. The "realm of homeownership", as she says is not limited to just young families seeking homeownership. It also encompasses growing families needing more space or retiring adults "seeking out warmer climates or smaller, more manageable homes".

   Roots can also pertain to planting trees and shrubs. Hill explains that While Renters are rarely afforded the luxury of gardening, as a homeowner you are able to "create your own green oasis".

   The pride factor, as Hill says, is that this little piece of property and land is yours, and no one can take that away from you. This security allows people to form deep attachments and spurs many owners to make improvements and additions, which makes it more comfortable and usable (and "improves neighborhood values and overall curb appeal.").

   So, people may initially be motivated by a major life change, such as a new job or a new family, says Hill, ultimately, people buy based on emotion. They want a home they can fill with memories of Christmas mornings, summer vacations, and other happy moments. Hill tells us to, "Remember this sentimental side of homeownership" the next time we read about stocks, bonds, and housing woes.

   Do you own a home? What is your happiest memory of owning a home? If you do not own a home, does the prospect of owning one sound exciting?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #buyingahome #Homeownership #pride #stocks #bonds #housing

5 Tips to Protect Your Home from Robbery

Hi Folks,

   As the Holidays are fast-approaching, we'd like to focus on one of the hottest trends this Holiday Season (and all Holidays Seasons); Home Break-ins and Burglaries. As a matter of fact, the FBI says that a home is robbed every 14.6 seconds and the average dollar loss per burglary is $2,119.

   Now, however, even though burglaries were down from 2009 to 2010, writes Celia Kuperszmid Lehrman for the Consumer Reports Website, in her article, "Break-ins are down, but your house may be screaming 'rob me'", locking your door and windows is not the only thing you should be doing to protect yourself. Lehrman names 5 things that she says you are, "probably doing that make your home a target, and what you should do instead".

   One of the first tips provided by Lehrman, in light of the explosion in popularity of Social Media, is in regards to posting vacation photos on Facebook, as she says that, "Burglars troll social media sites looking for targets". The suggestion is to post the photos once you get back, or to tweak your Security Settings to allow trusted friends only to see your adventures.

   Lock your garage from the inside! Lehrman says that if you don't, a burglar can gain entry to your home via an internal door by using "any tools you haven’t locked away" to break into your home "out of sight of the neighbors".

   Hiding Spare Keys is a bad thing. "Burglars know about fake rocks and leprechaun statues and will check under doormats, in mailboxes, and over doorways", says Lehrman, who suggests that you give a spare set to a neighbor or family member.

   Ladders should be kept stored away and out of sight. Lehrman says that they can be used to "reach the roof and unprotected upper floor windows".

   Let's not overlook the home security alarm factor. Silent alarms are great, and noisy alarms are irritating, However, noisy alarms are also irritating to burglars, but the smart thieves, says Lehrman, know that "it can take as long as 10 to 20 minutes for the alarm company or cops to show up after an alarm has been tripped", and she suggests using both silent and audible ("noisy") alarms.

   One bonus tip for you; beware of people calling with a survey in which they ask if you have an alarm system. They could potentially be "casing" your home as a target. Additionally, an answering machine saying you are not home is also bad (instead, make it a generic message).

   Do you have any other tips? We'd love to hear.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:

1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #HomeBreakins #Burglaries #homesecurity #homealarmsystem #socialmedia #Facebook #Consumer Reports

Evaluating Your Home For Sale

Good Morning,
   Happy Columbus Day to those of us residing in the USA. If you are lucky enough to have the day off from work, enjoy your day, and thanks to all for checking in with us.

   When you are selling Real Estate, whether it be your own home, or, the home of a client, it is important to take various factors into consideration, such as price, condition, and location.

   In regards to price, you will want to look at the most recent closed sales in your area (and the data must be less than six months old). You want to confirm that your price is right, no pun intended. As Chris Griffith recommends in her story, "Reevaluate your real estate to sell this season", on the Naples News website, you should also ask your real estate agent (or the agent you’re interviewing) to "list your real estate for an absorption rate", and that you'll want to check how much "inventory your home is competing with neighborhood wide or even in your home’s price range" (this should be checked periodically for any changes/adjustments).

   When it comes down to condition, the old adage of "you never get a second chance at a first impression" holds true here. As Griffith says, "There is little opportunity for a second chance to get them back through the door once they’ve been turned off by something negative", and calls it a "a downright shame" if it was a correctable negative condition like cleanliness or neatness that was toxic to your potential buyer. One interesting point Griffith makes is that sometimes, "homeowners are a little too close to the forest to see the trees", and need to take a long and hard look (or get a second opinion) about their home, the cleanliness, etc.

   Location, Location, Location. We've all heard that before when discussing Real Estate. Griffith suggests that you, "Compare apples to apples and be prepared to adjust the price to correct the differences", and provides the following example; "two nearly identical homes, one on a lake and one backing up to a sound wall next Interstate 75, sport very different values". Location "can influence buyers positively or negatively", adds Griffith.

   These 3 factors are a huge component of your potential sale. Can you think of anything additional? Perhaps the demeanor of the homeowner or the agent? The weather during an open house?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #sellingRealEstate #absorptionrate #inventory #closedsales #price #condition #location

Real Estate Investing - Angles and Analysis

Good Morning,
   How is everyone doing this morning? Fine, I hope!

   Where do I even start in terms of this topic? It is such a broad topic, and if you ask 10 different people, you might wind up with 10 different answers and multiple opinions.

   Let's look at some of the angles of Real Estate Investing. Basically, the bottom line is that you purchase a property, hold on to it in hopes that the price will appreciate (possibly renting it out while you wait to recoup all or part of your monthly payments), or, you purchase a property and "flip" it, which means buying and selling a property quickly for a profit.

   Where can you find properties? Foreclosures have spiked, and the homes that are foreclosed upon are often sold on the steps of the local courthouse (depending on where you are). The problem here is that these are very risky investments. In a story written by Veronica Chufo on the DailyPress.com ("Real estate investing: Is now the time to buy?"), some investors and real estate agents weighed in on the process and the risks involved.

   In the article by Chufo, Greg Hatcher, an investor and real estate agent with EZ-Vest Realty, pointed to the fact that a majority of these homes are "underwater" (the value of the home is less than the outstanding mortgage). This means that it would not be a good investment, says Hatcher. There is also the potential for liens on the property, says Hatcher, which would need to examined via a Title Search. One other risk Hatcher mentions, which is probably one that we are all quite familiar with when discussing foreclosures; "an investor can't see inside the house, let alone have an inspection, as a traditional buyer could". In sum, Hatcher says that we would only recommend this to very experienced investors and those that "have cash that they can afford to chance".

   A Less-Risky ("safer?") route is to find sellers that must sell, but do have home equity. Hatcher says that real estate agents could be very helpful in your search.

   When you find an investment property and you're ready to purchase it, it's time to think about financing. Hatcher says that investors often must have a larger down payment (of about 20 percent), and that they also need money "in reserves and cash for upgrades and closing costs". He said that with lenders, "The theme would be cash is king", since they look for buyers who have liquid funds (lines of credit, cash in the bank, money available in 401(k)s or IRAs, per Hatcher).

   What you do with the property boils down to the local market, financing, and your own desires. The typical decision is "Flip or Rent", and this is analyzed by Chufo. Flipping was popular during the Real Estate boom, but has slowed down dramatically, because the "buyer pool has shrunk because lending requirements are stricter", writes Chufo.

   The other flavor is buying a home and renting it out (and sell them when the market rebounds). Other buyers, as Chufo refers to them, are "keep and hold" investors (they will act as landlords by renting the properties instead of reselling them). Patti Robertson, a HomeVestors franchisee in Norfolk and president of the Tidewater Real Estate Investors Group, adds that investors are getting "more rental income now than ever before", and she points to higher rental payments vs. lower housing costs. Specifically, she said, "Rents more than cover mortgage payments", and provides "instant cash flow". Of course, it would be a disservice not to mention Rent to Own, in which the home is rented out with an option to buy at a predetermined price during a specific term, i.e. 12-months, 24-months, etc. (Learn More on Rent to Own Homes Here).

   To determine rent/hold or flip, Hatcher says that a real estate agent would need to conduct a "market analysis on comparable properties", and a post-rehab value of 75-80% of market value would be favorable to a keep-and-hold investor, but he says that a "flipper" would need a property at a market value (post-rehab) of about 60%.

   Investors are still out there scouting for deals, says Chufo. Hatcher suggests that new investors should try to joint venture or partner with more seasoned investors, and can network with other investors via a Real Estate Investors Association (an REIA). One investor, Maryann Krzywicki, has done her homework, and found a business partner. She feels it's a good time to invest, "because it's a buyer's market". Chufo also quotes Patti Robertson (an investor for over 4 years), who is also positive on Real Estate Investing, and says that, "Most people have their money in the stock market right now earning zero, or in the bank earning half a percent. Real estate is on the bottom. It has to go up," she said.

   Are you a Real Estate Investor? Are you a potential Real Estate Investor? What is your experience with the Real Estate Market? Please pass along any tips to our friends that are reading this article.

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #RealEstateInvesting #foreclosure #fliphomes #renttoown #underwatermortgage #financing #renting #lending #landlord #keepandhold

Expensive to Build in The USA? Not Even Close!

Hi Folks,
   Welcome back.

   We often hem and haw about prices, and how expensive things are, but if you lived in Switzerland, you might think differently about things! True, it's a beautiful country and has a reputation for delectable chocolate, but it also topped the list of the "Ten most expensive countries in the world to build", in a recent article.

   According to a story on InternationalEat.com, "Switzerland remains the most expensive place in the world to build new properties", with data pulled from the latest EC Harris report. Using UK prices as a baseline, construction costs in Switzerland are more than 25% higher than anywhere else in the world (the story adds that the "price of construction in Switzerland is 71% higher than in the UK"). Mathew Riley of EC Harris said that he was not surprised to see Switzerland and the Scandinavian countries as the most expensive places to build, since "high labour costs and the need to import materials are all combining to drive prices up."

   Taking a step back, Europe came in as the most expensive continent in which to build, with 8 European countries populating the Top 10 list. The other two countries were both Australia and Canada. The cheapest countries to build in? It was a tie between India and Sri Lanka (construction costs estimated to be 72% cheaper than the UK baseline).

   If you are a builder or a contractor, you have seen your profit margins get slimmer and the competition on the rise, and the results of this report point to the need for Western economies to, "start planning ahead now to guarantee access to the raw materials needed for future construction projects."

   As for North America, the report finds that the average construction costs in the US are around 10% lower than in the UK, however, as the economic recovery progresses, these costs are likely to rise.

   In terms of construction spending during August 2011, we were at $799.1 billion (Up 1.4% from July and almost 1% from August 2010). Public Construction was on the upside, at 3.1% above July, and more specifically, Educational construction and Highway construction both posted gains of 3.5% and 4.3%, respectively. Private Construction Changes were negligible to minor.

   Penny for your thoughts...

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #constructioncosts #Switzerland #Europe #UK #builder #contractor #constructionprojects #rawmaterials #public #private #educational #highway

The Return Of Subprime Mortgages?

Hi Folks,
   Welcome back, and glad to have you here. It is October, and as much as I don't want to face it, it is the month that I will turn the big 4-0 (On 10/31 - Halloween). Oh well !

   One other sad thought is one of the people who have been hit between the eyes due to the subprime mortgage crisis. Subprime mortgages are loans made to people with less than perfect credit or financial situations, and these types of loans dominated the lending market until the house of cards fell down, literally. Subprime has become a household name, and most people cringe when they hear it...but there are others who get very excited at the very thought of these types of loans!

   According to Preston Howard, a Mortgage Broker/Owner with Rose City Realty, Inc. in Pasadena, California, "subprime financing is poised to make a re-entry into the market place in a big way", in a recent story he wrote, titled, "Can Subprime Make A Comeback?", on the BrokerAgentSocial.com Website. "Where there are payments to be chopped up into little pieces, someone on Wall Street will dice and transform them into some form of marketable security to be sold to the masses at a cost, and generate profits for the investment bank that brings them to the Stock Exchange floor", says Howard

   But how can this happen, after what we have all suffered from the subprime fallout? "The answer lies in the structure and the insurance", Howard says, pointing to a Money Backed Securities (MBS) offering with "seven times the insurance protection that is normally required for a high quality, private securities offering", but has earned a "debt rating that is better than the United States of America".

   Are we really going to do this all over again? At first glance, the pool of sub-par mortgages looks more like FHA loans (as opposed to subprime deals), with a 4% yield, >640 Credit Scores of the borrowers backing the mortgages, and an LTV at about 95% on average. But, as Howard adds, "It appears as though the product is being packaged in a “sub-quality wrapper” to prep the market for additional, lesser quality deals in the future."

   Let's look at the good here: "this could be the start of something beautiful as the housing market is languishing in a rut, awaiting products to unleash pent up demand", says Howard. Very true.

   "Conversely, this could be the lever that pulls us into a second recession", says Howard, who says that there is a moral hazard potential here, where the needs of unqualified borrowers will take a back seat to the fees generated. This is a big risk.

   Are you willing to take the risk? Will it hurt us again, or have we learned our lesson?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #subprimemortgage #MoneyBackedSecurities #MBS #FHAloan #lending #mortgagebroker #financing #WallStreet #recession

A Week Full Of Housing Numbers

Good Morning,

   As we see another work-week come to a close, we would like to reflect on some important Housing Numbers that were released this past week; S&P/Case-Shiller Home Prices, New Residential Sales, and Pending Home Sales.

   With the Standard and Poors/Case-Shiller Home Prices (Prices Through July 2011), we saw the fourth consecutive month of increases in the City Composites (the 10 and 20 City Composites). Over the June to July period, 17 of 20 of the Metro Areas (MSAs) were up, with the two drops being registered by Las Vegas and Phoenix (and Denver was unchanged).

   However, over a year, the reverse happened, with only two MSAs showing positive gains - Detroit and Washington DC (Surprising news for Detroit, especially). The worst performing of the remaining cities was Minneapolis (a 9.1% decline, however, better than the double-digit declines that it was posting for multiple consecutive months).

   Recapping these figures, David M. Blitzer, Chairman of the Index Committee at Standard and Poors Indices, said that “While we have now seen four consecutive months of generally increasing prices, we do know that we are still far from a sustained recovery.", but adds that "Continued increases in home prices through the end of the year and better annual results must materialize before we can confirm a housing market recovery."

   Let's Move on to the sales figures:

   New Residential Sales for August dropped 2.3% from July, but rose 6.1% from August 2010 through August 2011. Pending Homes Sales for August ("a forward-looking indicator based on contract signings", per the National Association of Realtors® (NAR)), dropped 1.2% from July to August, but increased 7.7% from August 2010 to August 2011. Over the July-August period, the best-performing region was the South, which was up 2.6%, and over the one-year period, the best-performing region was the West, which was up 10.5%.in August but is 10.5 percent above a year ago.

   Lawrence Yun, NAR chief economist, said the decline reflects an "uneven market", and that a reason for elevated levels of contact failures is that "financially qualified home buyers, willing to stay well within their means, are being denied credit". These "unnecessarily restrictive mortgage underwriting standards", as Yun calls them, are "road blocks to the housing recovery for people who are trying to take advantage of excellent affordability conditions".

   Yun also said that based on the "improving fundamentals of population growth, some job additions, rent increases and higher stock market wealth", that we should be seeing existing-home sales closer to 5.5 million, but are expecting just over 4.9 million this year.

   My two cent commentary: New Residential Sales and Pending Home Sales were up over the past year, however, home prices dropped over the past year. Read that line over and think about it. Shouldn't prices be going up with sales? Am I wrong? What are your thoughts?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #ResidentialSales #PendingSales #NAR #contractfailures #mortgage #underwriting

Real Estate Investment in Probates

Hi Folks,
   Hope your week is going well. Although it is my favorite time of year, when cool weather should be here, it certainly does not feel like it yet!

   The broad umbrella of Real Estate Investing could be carved into many, many different niches, and one of those that you might find interesting and rewarding is what is referred to as "Probate Real Estate Investing".

   What is "Probate"? Probate is the legal process used to distribute estate assets of a person who has died, as per the Stockmarketsreview.com website, in an article written by Simon Volkov, a California real estate investor who specializes in helping individuals with probate real estate investing.

   This specific investment strategy involves buying real estate held in probate, and as Volkov writes, "In the best cases, probate takes about six months to settle", with the possibility of "complex issues or family disputes surround the estate", which can drag on for years. How can Probate Real Estate Investing (REI) help? It can help the heirs liquidate Real Estate before the probate settles.

   The question is; "Why would heirs need to liquidate real estate holdings"? There could be many reasons, as Volkov says, and adds that one of the most common reason is that "the estate has insufficient funds to maintain the property." For example, the estate is responsible for making payments for property related expenses, i.e. Mortgage Payments, to avoid foreclosure. In addition, these expenses include homeowner’s insurance, property taxes, utilities and possibly even homeowner’s association dues. Out-of-town heirs need to maintain the property, but cannot from long distance, so often the estate will hire outside help, such as landscaping and pool maintenance).

   Real Estate Investors - Perk up your ears....

   As Volkov writes; "The majority of heirs do not know they can sell real estate holdings during the probate process." However, as he adds, "Some states require court confirmation prior to selling probate property." (and reminds us that "experts recommend working with an attorney when buying or selling real estate suspended in probate"). Probate real estate investing is a special niche not many investors know about, writes Volkov. Untapped market?

   What do you need to begin? Know your market, know the judicial process, and head to the local courthouse, as Volkov suggests, to see where probate cases are handled, since probated estates are public records and can be viewed by anyone. He suggests checking the info in the decedent’s last will and testament (Volkov says that this will include contact info for the estate administrator, along with the "decedent’s wishes for distribution of assets and personal belongings."

   The will also contains property info, and he suggests a search of the deed records, in which you can check the chain of ownership, and if there is currently a mortgage on the property (If so, the estate may need to sell the property quickly, says Volkov). Initial contact will be made with the estate administrator. This can be done by phone, mail or in-person, and Volkov reminds us that you must be respectful and offer condolences.

   Footnotes on Probate REI:
   * The estate administrator is authorized to make decisions on behalf of the estate.
   * If multiple heirs are entitled to the property they must all agree before the sale.
   * Delays can occur if court confirmation is required.

   Overall, some fantastic info from Mr. Volkov. This is something that is not heavily capitalized on currently by Real Estate Investors, so if you give it a try, please give us some feedback.

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #Probate #RealEstateInvesting #estate #heir #foreclosure #REI #will #testament #deed #mortgagenote

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?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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

Home Builder Ingenuity

Hi All,
   Welcome back!

   On the heels of my post this past Wednesday, titled, "Buy it, Build it, or None of the Above?", where we looked at the New Residential Construction Figures vs. Existing Home Sales, and the results showed the clear winner as Existing Homes, we have a new spin with perfect timing

   "Builders generally seem to agree that their stiffest competition is coming not from within their ranks but from the resale housing market and its foreclosed houses and from houses sold for less than their mortgages as short sales." Ironic, isn't it? This comes from a story on the Press-Enterprise site, and it leads us to the following question: For the Builders that are on the short end of the New Residential Construction figures, how can they get people to buy more New Homes and thus, generate more Building Permits, Housing Starts, and Housing Completions? To add some irony, the name of the story I quoted from above is titled, "Builders band together to showcase homes".

   This very well-timed and aptly named article says that for the first time in memory, "home builders who historically compete for buyers are launching a joint promotion to draw consumers to their sales offices". These free seminars, presented by the Building Industry Association of Southern California and the Greater Sales and Marketing Council, range from topics such as interior design trends, energy efficiency and barbecuing techniques.

   I think this is a great idea to strike up business for Builders and for New Construction (the purpose of the seminars is to show off homes and "whip up business").

  "Ingenuity 101"...it's what keeps us going and growing in light of difficult Economic conditions. What do you think?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #Construction #ExistingHomes #homebuilders #resalehousing #California

Buy it, Build it, or None of the Above?

Hi Everyone,

   Hope you are all doing well.

   Today, I'd like to shift gears and try to make sense of the most recent releases of both the New Residential Construction figures for August, along with the NAR Existing Home Sales figures for August. Just as the title asks - "Buy it, Build it, or None of the Above?". Let's see if we can gain a clear response to this question.

   Our first stop - New Residential Construction for August. Building Permits were up this past month and over the past 12 months, Housing Starts were down from July and also down from last August, and Housing Completions were down since July, but were up 2.6% from August of 2010.

   Our next stop - Existing Home Sales for August. Where do we begin? In sum, Existing Home Sales were up 7.7% from July to August, and more than 18.5% since August of 2010. These figures were released by the National Association of Realtors, or "NAR", and the chief economist for NAR, Lawrence Yun, said that "favorable affordability conditions and rising rents are underlying motivations", despite disruptions from Hurricane Irene, which pounded the Northeast at the end of August and took a toll on the Regional figures for the Northeast. However, despite that major storm, the numbers were promising.

   In comments from Ron Phipps, NAR President and broker-president of Phipps Realty in Warwick, R.I., he called the market "remarkably affordable" , but he named some large factors holding home sales back, such as mortgages being denied to creditworthy buyers, and "appraised valuations below the negotiated price." These low appraised valuations are a major contributing factor to contract failures/cancellations, and have increased since July and have soared since last August.

   Now, as if you did not already have a sense of the "winner" between New Residential Construction and Existing Home Sales, here are some more key points: Existing Home Sales in the West soared over 18% from July to August, and over the longer-term (since last August), the big winner was the Midwest, with almost a 27% jump in prices. Additionally, the Existing Home Sales release showed that Investors accounted for 22% percent of August Purchases vs. just 18% in July.

   The word on the Street is "Buy it". When both "Build it" and "Buy it" are hot, we will be making big tracks in our Recovery. What do you think?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #ResidentialConstruction #ExistingHomeSales #Realtor #NAR #lowappraisal #risingrent

The Rent to Own Juggernaut

Hi Folks,
   Welcome back to one and all.

   We have caught some flack over the past couple of years for keeping the title of this blog as, "HomeRun Homes Real Estate and Rent to Own Homes Blog", but the fact is that the Real Estate Market, Housing Numbers, Economic Conditions, etc., all have an effect on the gaining popularity and increasing momentum of the "Rent to Own Juggernaut", as I like to call it. Therefore, when it appears I am writing about Existing Homes Sales or Home Prices, these all tie in to the main title of this Blog. The sum of the parts are greater than the whole...

   On that note, today, we are staring directly into the face of the Juggernaut, as we are seeing more and more publicity on this form of Real Estate agreement. Some of the publicity is just an explanation of how the process works, but the point is, by educating the public, that is "publicity" !

   Our most recent example is a story in the Sioux City Journal, titled, "Rent-to-own transactions popular", by Jim Woodard. In this particular article, Woodard explains the process; "The homeowner agrees to rent his home for a specified period of time, usually from one to three years. At the same time, the tenant receives an option to buy the property at any time during the rental period at an agreed-on price.". Woodard also discusses the option fee and the rent credit (which vary by regional laws and between different homeowners).

   Woodard also points to some benefits to buyers that are perhaps cash-strapped or cannot qualify for a mortgage until their credit and financial status improves, however, they can move into the home and purchase it when their financial health improves.

   On the other side of the deal table, Woodard says that this can be a "wise option for the homeowner", who might need to wait quite some time in this sluggish market, and if the seller already owns a second home, they can "avoid making two mortgage payments each month without any revenue generated from his previous residence."

   Of course, there are caveats on both sides of the table (the buyer needs to make sure the seller's home is free of any liens of pending foreclosure, and seller needs to do some due-diligence on the buyer). As always, with any Real Estate deal, consult a local attorney or title company that is familiar with the local laws regarding these deals.

   Educating the public on Rent to Own Homes is a fantastic was to put it into the mainstream of the Real Estate market and start changing the Housing Market and the Economy for the better...what do you think?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #RenttoOwnHomes #RealEstate #HousingNumbers #EconomicConditions #pendingforeclosure #titlecompany

Investors vs. Home Buyers in the Foreclosure Arena

Hi Folks,

   Glad you're back with me.

   It had to happen. It was inevitable. Investors and Home buyers are going head to head. "Home buyers find themselves aced out by investors", a recent article from Eve Mitchell of the Contra Costa Times, states that home buyers are being "edged out" by a growing number of "absentee buyers" (those who don't plan to live in them).

   How is this happening? Real Estate Investors are gravitating toward low-end properties, says Mitchell, and says that these are the same homes that first-time and move-up buyers want. Linnette Edwards, an East Bay associate broker with Better Homes and Gardens Real Estate, adds that "Most of the investors are buying into the first-time home buyer price range of $200,000 to $400,000". Mike Sibilia, a South Bay broker with Keller Williams, points to the all-cash purchasing factor, and says that "The investor has the cash wherewithal to be able to close on the property without the risk of the seller worrying about whether the buyer can get the loan or not". Sellers that own foreclosure properties and banks that own foreclosure properties, or "REOs", prefer all-cash buyers because "the deal can close faster than a transaction involving a loan, say real estate professionals".

   As difficult the competition is for these home buyers, Mitchell informs us that this trend is clearing out some of "the glut of foreclosures dragging down home prices". According to Housingwire.com, there is and will be more "glut "coming.

   Jon Prior wrote a recent article titled, "Foreclosure starts spike in August", which looked at recent figures released by RealtyTrac which indicated that mortgage servicers started the foreclosure process on 33% more homes in August than the month before, which was the biggest monthly increase in four years. James Saccacio, the CEO of RealtyTrac, stated that the increase in new foreclosure actions may be "a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems", and that "it also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process."

   Advice for home buyers? Stick it out, hang in there, and keep "Swimming with sharks", as Mitchell's article named it. Advice for banks? Loosen up a little credit and lend some money !

   I welcome your comments !
Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #RealEstateInvestors #Foreclosurestarts #mortgageservicers #bankrepossessions #absenteebuyers

NAHB Hits a HomeRun With A New Comprehensive Index

Welcome Back,

   As you all know, from time to time, I break down the Housing numbers that are released to help you check the pulse of the Real Estate Market on a National basis. Along with these updates, I add an occasional rant (such as a rant about the need for an Index measuring Rent to Own activity). So far, though, that one has fallen on deaf ears, but something else has been created that I think is fantastic.

   Let me give you an example; if you take a photo of someone standing by the side of a building, you really can only see the person. If you back up a few steps and take the photo, you can see the building. If you step back a little more, you can also see the background, and perhaps the sky/clouds/weather. This example leads us to the newly created NAHB/First American Improving Markets Index (IMI), which was just launched by the NAHB (National Association of Home Builders), and includes three important factors to paint the big picture of the Housing market.

   According to an article by Claire Easley from Builder Magazine ("NAHB Launches New Index to Track Improving Markets"), the new index will be released monthly and will be "dedicated entirely to tracking metropolitan areas that have consistently shown signs of improvement".

   How can a Metropolitan area make the list? The area must have shown "at least six months of improvement from its trough" in the three factors that make up the index; housing permits, employment, and home prices. The Big Picture, basically!

   All 3 factors were deemed by the NAHB to be "key to determining the pulse of the housing market", will be drawn data from the "Bureau of Labor Statistics for employment growth numbers, house price appreciation data from Freddie Mac, and single-family permit numbers from the U.S. Census Bureau".

   In the article, the NAHB Chairman, Bob Nielsen, was quoted as saying that "Housing conditions are local and do not always reflect the national picture", and that they created the new index to "shine a light on those housing markets across the country that have stabilized and have begun to show signs of recovery."

   Who made the first release of the Index? The 12 Metro area that made it were: Alexandria, La.; Anchorage, Alaska.; Bangor, Maine; Bismarck, N.D.; Casper, Wyo.; Fairbanks, Alaska.; Fayetteville, N.C.; Houma, La.; Midland, Texas; New Orleans; Pittsburgh; and Waco, Texas".

   As an interesting side note, in the same article, the Chief Economist for NAHB (David Crowe), said that last year at this time "there was not a single market that showed improvement using these criteria." What are your thoughts on this composite index? Do you think they hit the target, or there should be more than these three factors?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"3. Check Your E-mail and Confirm Your Subscription...it's That Simple !

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: #NAHB #ImprovingMarketsIndex #IMI #RealEstateMarket #housingpermits #employment #homeprices

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?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !
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: #FHFA #foreclosure #renttoown #Obama #Government #rentalprogram #HUD #RealEstate #FannieMae #FreddieMac