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.

100% USDA Financing:  United States Department of Agriculture

• 620 Minimum Credit Score
• Available for Existing, Owner-Occupied Single Family Residence, 2 Unit properties (duplexes), PUDs, Condos, REO properties, and Manufactured Homes
• Borrower Does not have to put funds down, 100% financing allowed
• No cap of Seller Concession for closing costs or rate buy downs, allowing you to finance all closing costs as well
• NO Monthly Mortgage Insurance (PMI)
• 30 Year Fixed Rate Mortgages Only
• No ARM’s or Balloon Payments
• No Pre-Payment Penalties
• CLICK HERE to see if your area or specific address of your future home qualifies for 100% USDA Financing.  If not, don’t worry.  Ask us about our very exclusive FHA loan product that is not area specific.
• We specialize in the following states:  Florida, Delaware, Georgia, Maryland, North Carolina, Pennsylvania, Virginia

This product is only available in specific locations throughout the US as well as an income bracket determined by the amount of household members a family has.  We have assisted hundreds of clients with this product and along with the tax credit program it is making thousands say that there truly isn’t a better time to buy!  Call Mike at (908) 797-2908 or send him an e-mail here for a free consultation on how you can obtain 100% USDA financing on your home.

For prequalification purposes, please download the following form, fill out, and send back:  PREQUALIFICATION FORM

Once you are notified of the prequalification approval, please fill out the following form and submit all information that pertains to you and fax to 888.336.8030:

Full Doc Requests Form

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.

These duplexes were built by a builder we know very well and is one of the most respected builders in the county.  Duplexes are built 2007 of all concrete, and newer and in great condition inside and out.  Each unit of the duplex consists of 3 bedrooms, 2 bathrooms, and a 1 car garage with over 1,100 square feet of liveable space and over 1,700 sq. ft. total when including the garage, patio, and entry. 

See video of an identical duplex by clicking HERE.  Below are the actual exteriors of the duplexes.  Click to enlarge.  Each duplex is $85,000 or buy in bulk at $80,000 total.  Currently one unit in each duplex is rented at $650.  Market rent is $650 per side.  Taxes are approximately $2,200, Insurance is approximately $800 annually, Property Management approximately $1,200 annually.  After operational expenses, each duplex brings approximately $10,000 in Net Operating Income, a 12.5% Cap Rate.

Fast forward to 2008-2009 when many of these duplexes went into foreclosure.  Built during the boom for nearly $300,000, we can buy directly from the banks today at pennies on the dollar.  There are a lot of companies claiming to be “direct” with the bank and some wholesalers who offer duplexes.  Could be true, but I can tell you with utmost confidence that we are your source for the most affordable duplex foreclosures available.  We get the REO’s direct from the bank, and wholesale them to homeowners and investors at exclusive prices.  Due diligence has shown that duplexes in this area that are completely rent-ready and in no need of repair retail for just under $100,000.  Our are turn key and ready to go.

Each duplex will gross around $1,300 per month in rent ($650 per side).  We do not recommend at this time paying more than $100,000 for the duplex, so if you can buy for under $100,000, your rate of return is higher than 10%, and also gives you some leverage in the event you have a vacant month.  The goal is to achieve a 10% Cap rate or rate of return on the duplex.  Anything higher than $100,000 does not give you enough equity, in our opinion.

Most of our duplexes are built 2005 and newer and are located in very precise areas.  We do not believe that every REO out there is a good deal.  We are specific and want to maximize the future equity potential by its location.  Most duplexes are 3 bedrooms, 2 bathrooms, and some have 1 car garages per side. 

Here’s how the numbers work:

We are the most exclusive foreclosure wholesale real estate  firm in SW Florida.

In April 2009, Cape Coral registered the second highest level of foreclosures in the country. One in every 57 homes were served with Lis Pendens or foreclosure notices, a 30% spike from March 2009. Not to be too alarmed because we are finally weeding out a good portion of the possible foreclosures in Cape Coral and Ft. Myers, but the current status is a 12% drop in foreclosure filings since Q4 of 2008. The rising trend in foreclosures is requiring the former homeowner to make the transition to renting again. The problem is, renters are faced with problems in rental property. The foreclosure crisis has left some homes that have been empty with deteriorating conditions.

Recently, banks have adopted a new program where they are making a valiant attempt to maintain the integrity of the neighborhood, ie. lawn service and pool service where needed.

Banks have levied a rule recently in Cape Coral and Ft. Myers, and actuall of Florida foreclosures and real estate owners. Now, due to the foreclosure crisis, the city has been subjected to droves of real estate investors buying bottom market priced homes. In the past, some investors would rent their homes and not maintain the exterior integrity. This could ultimately lead to negative value adjustments to the neighborhood. The new rule requires real estate owners to maintain the integrity of their homes, a huge boost to the local market.

Cape Coral and Ft. Myers is an ideal location for anyone. Regardless of the crisis, we are still SW Florida, where you can enjoy some of the world’s best fishing, boating, and water activities all at the same time as enjoying year round warm weather. Lush landscaping and palm trees line many streets and the SW Gulf Coast of Florida provides a similar, yet much more affordable location than the expensive Palm Beach and Miami east coast side.

Homes in Cape Coral and Ft. Myers can be purchased at 80% discounts from the bank. Real estate investing has become fun again, but not every deal here is a good deal. There are so many aspects of this to look into.  Be sure to use My Realty Source by calling (239) 872-5107 and learn how you can buy a great deal in a Ft. Myers and/or Cape Coral foreclosures.

If you are calling from NJ and are looking for our Montclair NJ homes for sale section, please contact us for further details.

Sure, you might say “well if the home doesn’t appraise for what my contract price is, I am over-paying, therefore I don’t want it anymore.”  Easier said than understood.  The HVCC (Home Valuation Code of Conduct) has been instituted into the appraiser field and it prohibits appraisers to inflate values of homes for irrelevent reasons and factors.  The HVCC clearly states that any appraiser who violates the HVCC will be subject to penalties and fines, and will be reviewed by the board for possible suspension or revocation of their license.

That being said, there is an increasingly common complaint of Realtors- that lowball appraisals are killing their home sales.  NAR has asked the regulator that oversees Fannie and Freddie to suspend the rules for 18 months, clearly speaking about the HVCC.

Although existing home sales picked up in May, the 2.4% increase could have been substantially maximized if all pending home sales would have closed.  Taking into consideration that some homes do not close due to financing contingencies, the appraisal does count as contingencies in most contracts.  If 25% of the fallout of pending sales actually closed, the May increase of 2.4% would have been about another percentage point higher.  It is clear that many contracts fell through because of faulty evaluations.

Some lenders use appraisers who are unfamiliar with the neighborhood and do not know how to identify the difference between traditional homes and distressed homes.  If you cannot reason with distressed housing, you may need to sit on the sidelines for a few years.

An example of what is going on here:  We recently contracted an investor for a duplex at $83,000.  Actually this is at least 20% under market value to where liveable duplexes are going for at the moment.  Sure you can find them at $50,000, but you will need a ton of work on it, which will exceed your $83,000, not to mention you will likely need numerous permits from they city (have fun with that!).  It is our growing concern that appraisers hired by banks and unfamiliar with differentiating distressed homes and traditional homes will screw things up.  Most appraisers base their comparables off of what they find as closed sales on the Multiple Listing Service (MLS).  What they cannot see is the condition of the property.  Long story short, appraisers are not fairly adjusting the comparable sales prices to meet the standards of the subject property, a massive problem in SW Florida right now.  Despite our record sales this year, these faulty appraisals are holding back what could be extra and much needed market growth.

FINALLY, NAHB is calling for new guidelines for appraisals of properties in areas with large numbers of distressed properties, that would include giving appraisers the option of expanding the geographic area or time frame for eligible sales to get a more representative take on home sales in the area. 

To my dismay though, there is almost nothing we can do for distressed homes that appraisers cannot get into.  Because appraisers can’t inspect the interiors of many properties that are used as comps, they may not be aware of maintenance issues or damage that are common with distressed properties.  The failure to adjust comparable values of foreclosed homes often results in the undervaluation of newer homes.

Federal lawmakers are looking to adjust the guidelines.  So in a nutshell, appraisers are paid to do the work whatever value they come up with.  The threats by the HVCC and guidelines provide incentives for the appraiser to be overly conservative and deliver a lowball appraisal that NAR and NAHB are complaining about.  But lenders don’t make money if deals don’t happen.  Clearly, there needs to be a major adjustment.