Although we have secrets on how to get bank owned homes at the same bulk discount price, I would doubt most that say they still get portfolios, aka, bank tapes.

According to a Fannie Mae representative when I asked when the next time I could get an opportunity on a 20-25 home package, his response was this:  “Why would we package homes and sell at 30-40% discounts from current market value when we can put them on the MLS and sell them for market value within 30 days?”

Hmmm..good point.  But that is what it is coming down to.  There is literally hyper-activity in Lee County with sales skyrocketing.  Since mid 2009, our median home price in the county has gone from $84,000 to over $100,000 today.  Show me another market in the country that went up 16% in almost one year.  Lee County is prime real estate right now and the window of opportunity will be gone in 12 months for those that want quick turnovers.  (That is my opinion, and I’m sticking to it!)

We acquire and sell dozens of homes per month and we have 2 programs for our real estate investors for Cape Coral and Lehigh Acres homes.

The first program is the FLIP concept.  That’s right.. Bet you never thought that phrase would be in the same sentence as “real estate” ever again.  I’ll give you a hint.  Have you seen the marginal difference in prices between cash based buyers and those that use FHA or USDA financing?  It’s over 20% difference.  Almost 40% difference in some areas.  You won’t find a GREAT deal if you are financing.  Won’t happen.  I am a seller and also a buyer.  As a seller, I am making way more money holding my property for 30-40 days longer selling to a buyer using financing.

Most realtors don’t know this.  Heck, most don’t know how to even look up lein / mortgage records.

The second program is the “End-User Investor Program”.  Get your pens ready and remember this.  This is known as your “buy and hold” strategy.  Put down your pen.  You didn’t need it.  It’s not science, just timing at this point.

We are one of the strongest in the local housing market at getting great deals for our clients.  We are a licensed real estate brokerage and investors ourselves.  We offer a turnkey solution to investing.  We purchase the homes with our money and do the rehab work with our money where we wholesale out.  It’s seemless and simple.  Contact us today if you are interested in being successful in Lee County Real Estate.

Some extra TidBits:

TRUTH:

• USDA and FHA do not have the same strict seasoning requirements as they used to.
• FHA appraisers require all mechanical systems to be working.  Be sure garage door is accessible.  They need to take a picture of it half-open.
• You can buy a house for $50k to $65k and sell it for $85k in 60 days.  We are doing it over and over again for our investors.  Proof upon request.
• Chinese Drywall is defective and kills your value.  Don’t touch it.  Some agents will convince investors to buy cheap and remediate the problem using a drywall company.  Try selling a house on the market where you have to disclose “House was treated for Chinese drywall”.. You have to disclose it and it will sit for sale FOREVER.

MYTHS:

• I should just call a retail agent and get a home listed in the $50k range.  Why should I use you?  Answer:  Banks recommend to their agents to set the price low to trigger a bidding war.  If you want to waste a lot of time, these are good to go after then.  On average, REO homes sell for much higher than what they are listed for.
• Short sales are not a way to go.  Our response:  Short sales are one of our favorites.  We assist in short sales with homeowners making an immediate cash offer and pairing them with a local real estate attorney.  Our process is quick and we get great prices.  Takes time, but more margins.
• I cannot finance an investment property.  Response:  Yes you can.  There are 75-80% LTV loans for investors with good credit and reasonable debt to income ratios.

My Realty Source is pleased to offer our newest exclusive investment opportunity where our firm is the exclusive marketing and sales staff.  Sterling Springs Resort is a Resort Style Smoky Mountaintop development located in Sevierville, Tennessee, otherwise known as the Gatlinburg/Pigeon Forge area.  The resort is less than 10 years old, but is one of the highest per capita in new visitations in the United States due to its onsite amenities, including the Wahoo Zipline and many other area attractions;  Wahoo Zipline is the world’s longest and most visited zipline that attracted over 75,000 riders in 2000

Sterling Springs Resort is a full service resort and spa with a subdivided 100 individual deed restricted cabin lots.  Current buildout is 30% of beautiful log cabins built by the same developer and constructed of the highest grade construction specifications, offering a 5 star rated feel.  There are no 5 star hotels in Sevier County and only two 4-star hotels.  Cabin living offers luxury vacation destination and with a building moratorium covering the Smoky Mountains called the “Save Our Mountains Act”, development is limited which is the cause of the near 100% cabin occupancy rate in Sterling Springs Resort.

Average rental rates for a smaller cabin range from $135 during the week and $205 for weekend rates.  Three bedroom cabins have rental rates of $155 during the week and up to $335 during the weekend, season  sensitive.

Visitors traveling by air would fly into Knoxville International Airport.  The airport is located only 35 miles from the Resort and there are numerous rental car services within the airport.

Sterling Springs Resort offers an affordable high income yielding real estate opportunity with proven occupancy and revenue where sales will offer an immediate equity position of about $20,000 based on comparables closing during the month of May 2010.  Although there are existing traditional cabins, our first comparable sale of the new structure is being completed in May.

My Realty Source is offering our newly designed “Spherical Mountain Cabins” as a energy efficient, appealing, and cost efficient income producing asset with a One Year Developer Guarantee in Return On Investment with greater future benefits.  It is our opinion that owning a tangible asset in Sterling Springs Resort exceeds the Return on Investment (ROI) of most ROI vehicles in today’s marketplace.

During my visits over the last 6 months, Sterling Springs has maintained a 97% Occupancy Rate, with absolutely zero vacancies from Thursday-Mondays.  As of today, the resort is entirely booked until October 15, and is in desperate need of rental inventory.  Don’t believe me?  Fly down and see for yourself.  We are offering a “Fly and Buy” to all of our investors.  If you fly to the resort, we will put you up in our private cabin (if available through management), give you a compimentary ZipLine pass, and reimburse your travel expenses upon successful closing.

If you would like additional information on this private offering, please contact us at (877) 688-7582.  Get into luxury vacation living with the all new Spherical Mountain Cabins.  Click Here download the Offering Memorandum aka Executive Summary of Sterling Springs Resort.  CLICK HERE to see appraisal as of July 17, 2010 showing a market value of $225,000.  Appraised value is on Page 2 of the appraisal report.

We assist homeowners in getting immediate answers and solutions from the lender(s).  Our immediate actions quickly trigger the lender into negotiations that provide a far less confusing solution with far less repercussions to your personal financials and credit score.  Ourselves and our attorneys assist in this process WITH you, not necessarily FOR you, something we insist on to achieve comfort level with homeowners and the entire process.  While this process could be time consuming, we take the burden and stress off of you and work together with an attorney (of your choice or ours) to make sure all ends are covered.  Time constraints are far less in 2010 than they were in 2009, a good thing!

An “under-water” mortgage or delinquency can be stressful to you and/or your family.  Give us an opportunity to meet and discuss this seemless process.  There are no listing agreements involved, only quick solutions, favorable to your personal situations.  We have already achieved success with this program at a rate of over 90% in Florida and are now prepared to bring the success to NJ.

Why work with us regarding your Short Sale?

• Definition of SHORT SALE:  An agreed upon purchase price between homeowner and Lender less the amount of the current principal payoff amount.  Short sales have become the most EFFECTIVE and economical way to sell your home in today’s adjusted housing market.
• A short sale is far less damaging than a foreclosure.  Short sales could take as little as 1 year to rectify on your credit, where foreclosures can take as long as 7 years.
• If done correctly, a short sale allows you “Debt Forgiveness”. You may have heard of lenders issuing a 1099 of the difference between your sale amount and your actual payoff amount.  This is simple to take care of.  Primary Homeowners are protected by Debt Forgiveness today.
• Investor Property?  Ok, so you are not a primary homeowner.  You are subject to the 1099 from the bank.  The good thing about an “Investment Property”?  You have write-offs that primary borrowers do not have.  The 1099 could be tax deductable as a LOSS.
• We are licensed by the New Jersey and Florida Real Estate Commissions.  We know the laws and in combination with our legal experts, we make this a seemless process for you.
• We meet personally or have conference calls weekly on an individual basis to discuss progress or problems.

We offer this service in New Jersey and Florida only as those are the markets that we know better than anyone.  We cater more toward the entry level home prices.  Higher Priced homes will be in the near future.

Please contact Scott Allan at (877) 688-7582 for further details.

The attractive lining in the SW Florida real estate investment property market is that prices are so low and rental rates are now stable, albeit much lower than peak.  Prices on real estate have fallen nearly 60% and rental rates have fallen about 35%, so positive cash flow is much easier to find today and prices are much more attractive for the real estate investor with a 5+ year window.  Let’s assume the market falls another 10%. Rental revenues will off-set or negate that loss as will future stability and incremental rental rate increases.  See below for some of our most recent steals we found for our New Jersey / New York investors.  Note: Financing is available but hefty down payments of 25% to 30% are typically required and recourse depends on many factors.

Please CONTACT US if you are interested in discussing any Florida income producing real estate.  Today is a great time to buy Paradise.

Package of 4 Duplexes  (Closed)

These duplexes are in eastern Lee County where we picked these up at an average of $70,000.  Each duplex needed approximately $5,000 in repair (appliances, paint, carpet/tile, A/C).  Each side is currently rented at $650 for a total of $1,300 per month.  Real Estate taxes run approximately $1,800 per year and Hazard Insurance $1,200 per year.  A great income generator providing a Capitalization Rate well above 12%.  Purchased as REO.  Original note per duplex:  $310,000.  Each side of the duplex is individually metered.

$15,600 Rental Revenue

$3,000 Annual Operating Expenses (no vacancy/ tenant pays utilities)

$12,600 Net Operating Income Generates a 16.8% Capitalization Rate

31 Acres Fully Entitled for Development, Ft. Myers, FL  (Closed)

We originally represented the sale of this property in 2005 and assisted in full entitlements and Development Order on this tract.  Consisting of 31 acres, we obtainted residential zoning with marina rights up to 120 boat slips.  33 homesites with 14 of them waterfront.  Purchased in 2005 for $10 million as Agriculture-zoned land and was re-appraised for $30 million upon Development Order in 2007.  Developer went into Bankruptcy and included this land in it.  Developer could not sell at the time due to market variables.

We re-represented the REO purchase from the lender who foreclosed and had an investor purchase for $2.5 million, a significant bonus from the original purchase.  Current market value:  $4.8 million.  NJREG assisted in the purchase in January 2010.

141 Fractured Condo Complex, Tampa, FL (Pending)

A 171 unit complex where we assisted and participated in the bulk purchase of 141 residential condos, including takeover of the HOA.  Purchased at $33,000 per door, these condos had an original sales price of $220,000 less than 4 years ago.  Current market value per door: $60,000.  Capital improvements and stabilization is in process where the capitalization rate upon stabilizing will be approximately 10%.

Acquired through private relationship.

Single Family Home – Purchased through bank REO

Acquired for $65,000.  Needed $5,000 interior renovations and landscaping.  Re-sold in 80 days for $94,000.

Over the last 4 weeks, we have looked at 3 complexes in Naples and Ft. Myers.  Two of the three are completely stabilized properties and cash flow very well, depending on the price you buy it at.  The coincidence is that 2 of these complexes are distressed sales.  Investors of this type of property most likely have other properties.  As some investors look to eliminate debt, they short sell or give up their other properties.  If the note on the complex we are looking at is close to loan maturity, we know we have a distressed property on our hands, because chances are, no matter what type of cash flow it throws you, the current owner will not be able to refinance the loan due to his other real estate in the crapper.

Since 1992, Mortgage Professionals, Inc, our in-house and preferred lender, has established long lasting reciprocal relationships with some of the largest lending institutions in the world.  Our expertise is offering construction financing and bridging it to your permanent loan.  Whether your intentions are to build a home, buy a pre-existing home, refinance, pull equity in the form of a HELOC, or any other real estate related loan, Mortgage Professionals, Inc is at the top of the industry with an exclusive portfolio of loan products.  Currently licensed to lend in Florida, North Carolina, Georgia, Virginia, Delaware, and Pennsylvania.

Mortgage Professionals, Inc predicates their business on construction financing.  If you are looking to purchase a home through construction, our Loan Officers would submit for an end-loan commitment based on your qualifying criteria.  Upon approval for the end loan (your typical 30 year amortized mortage), Mortgage Professionals, Inc would offer the construction funds based upon your upfront “end-loan” commitment and work directly with the builder to produce a time efficient product.  We work with credit challenged borrowers with FICO minimum of 620+.

Mortgage Professionals, Inc. offers construction to permanent loans for the following loan programs:  Maximum loan is $250,000

• USDA which stands for United States Department of Agriculture:  A USDA Home Loan is a guaranteed 100% Government insured purchase loan.  These loans are only offered in rural area’s and serviced by lenders that meet federal guidelines.  You would be surprised how many homeowners mistakenly assume their area does not qualify under RURAL location.  Click Here to find out if your address qualifies for USDA financing.  Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment.  Since a common barrier to owning a home for many low-income people is the lack of funds to make a down payment, the availability of the loan guarantees from the Housing and Community Facilities Program (HCFP) makes the reality of owning a home available to a much larger percentage of Americans.  USDA loans are also available to credit-challenged borrowers

• FHA which stands for Federal Housing Administration:  An FHA home loan is ran several ways and is designed to promote home ownership.  In most cases, FHA loans are mortgages obtained with the help of FHA.  With a small down payment, typically 3.5% of the purchase price, buyers can purchase a home.  FHA loans make it easier for people to qualify for a mortgage.  FHA loans are available to credit challenged borrowers.

• VA which stands for Veteran’s Assistance: A VA loan is guaranteed b the U.S. Department of Veterans Affairs.  The loan may be issued by qualified lenders.  The VA Loan was designed to offer long-term financing to American veterans of their surviving spouses (provided they do not remarry).  The basic intention of the VA home loan is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment.  VA Loans allows veterans 100% financing without Private Mortgage Insurance or the necessity of any 20% second mortgage.

• Conventional Home Loan : A conventional home loan is a private sector loan, one that is not guaranteed or insured by the U.S Government.  Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of government sponsored enterprises such as Fannie Mae or Freddie Mac as both Fannie and Freddie are stockholder-owned corporations and are not part of the federal government.

Give us a call at 877.688.7582 or Contact Us through e-mail to discuss further details.

In Lee County Florida, which consists of (but not limited to) Fort Myers, Cape Coral, Lehigh Acres, Estero, Sanibel Island had the median price of a sold home slide to $89,300, down from $146,900 a year ago.

If you are shopping for a home, or an investment property in FL, now may be your “buy now or be priced out forever” opportunity. 

For the first time in Lee County history, foreclosure sales were taken into account when determining the new assessed values of real estate, which took place over the summer.  Never, has a real estate market considered foreclosure sales when determining taxable values.  This is good news for many residents.  Although real estate taxes will get lower, the county still suffers from a massive budget deficit.

In a separate report issued today, NAR reported that home resales unexpectedly dipped last month after a 4 month streak of positive gains, providing evidence that the real estate market is still somewhat vulnerable.

Our recommendation is still high on REO and foreclosure existing single family homes and multi-family duplexes fitting within residential parameters.  While more and more homeowners make the transition from owning back to renting, there is a mass demand for rental property and with today’s historically low figures, it is certainly a time to start considering a purchase or investment for income in Lee County.

Be sure to CONTACT US  for our latest inventory of REO and foreclosure homes and duplexes for sale.  They are selling quickly.  Cash flow is very high.

Older Cape Coral REO duplexes  have strong structural integrity.  All duplexes are built using CBS construction and maintain very easily.  With personal experience of owning property in Cape Coral built as far back as 1962, I can say that in my 2 years of owning it, I never had to do anything to it during my landlord status.   Duplexes built 1980 and more recent, you can find for under $100,000.  Units will typically rent for $600 per month or $1,200 for both sides total.  Tenants pay for all utilities.  All duplex built in this age range all have set and paid for utility expansion of city water and sewer.  Taxes for such properties range from $2,200 to $3,600 per year and annual insurance for an investor using the duplex as income property will run approximately $1,000 annually.  Cap rates range from 8% to 12% on Cape Coral duplexes.

For duplexes built 2000 and newer, prices are in the low to mid $100,000 with a comfortable median at about $150,000.  These duplexes at peak value were listed at $400,000 and higher so the discount on newer Cape Coral duplexes is significant.  Duplexes will occasionally come with garages which is a plus.

We have duplexes on freshwater canals and dry lots.  Gulf Access is available upon special request.

Cape Coral, Florida is a wonderful city in Lee County and until 2006 was thriving with new development and future plans.  Although these plans have been put on hold, the area has way to many amenities to negate all future planning.  Cape Coral is still a world reknown destination for sun, palm trees, fishing, and boating.  You can find beautiful marinas with fine dining, casual entertainment, and great people. 

There are over 80 Cape Coral, FL duplexes for sale.  Fewer than 15 of them make financial sense.  Call us for a free pro forma consultation.

If you are interested in Cape Coral duplexes for sale or foreclosure REO property in Lee County, please contact us and we will be happy to share our inventory with you.  You can also call us toll free at 877-688-7582.  Ask for Scott

Below’s slideshow is an example of duplexes that we have assisted in selling or have personally viewed the properties.

Our current duplexes are located at the following streets:

Haviland Ave. S

Gilbert Ave S.  (2)

Paisley Rd

Jordan Ave.

All duplexes that were bought out of REO have been fixed up into brand new condition.  The fixings were very small, all cosmetic, ie. paint, blinds, landscaping.  Duplexes are all tile floors throughout, with the exception of 1 of them.  We did not tile due to carpeting being brand new still.

We will sell the duplexes for $75,000 each or $70,000 for bulk purchase.  All duplexes were built 2007 or newer, built of concrete CBS construction, and have 3 bedrooms, 2 bathrooms, and a 1 car garage on each side.

All units are rented for $650 per side.  After Lee County recently reassessed the property values, taxes have been slashed by nearly 75%.  Current Cap Rates at our prices comes to 16%, after figuring in Taxes, Property Insurance, Property Management, and Lawn Maintenance.

Pictures are available upon request.  The duplex in the thumbnail of this article are identical to the other ones.