Timing the Market

Economics is simple, right? What is the one thing we all remember from that Econ 101 course we took many years ago? Its all about supply and demand.

Right now there is a glut of single family homes on the market. Logic and recent statistics tell us that values are still DECLINING. The lending industry and the government do not have a clue as to how to make things better. The market just has to play out. Things will get worse before they get better.

However, there is an angle to play. Smart investors are looking harder at multi-family buildings and other rental properties. There is an INCREASING demand for quality rental units as many would be buyers are choosing to rent. These potential renters have better job stability and financial strength .
There is less risk to the landlord.

If you are looking at real estate as investment vehicle, the smart play now is multi-family housing. Prices and mortgage rates are at very low levels. This is the move to make.

As a long time investor, I would be glad to share my experience and knowledge with you. I look forward to meeting you.

HUD Foreclosures are Good Deals!

When a lender forecloses on an FHA loan the property will eventually be sold by HUD.
These foreclosures are an excellent opportunity to buy a home at below market prices.

The HUD purchase process is simple . You will need to work with a HUD approved Real Estate Broker (I am one).

You can view the foreclosure list on-line and then see them with your chosen HUD broker.

Bids are done on-line, proof of funds and a deposit check are required at time of offer.

If accepted , you have 45 days to close.

These homes are usually in rough shape and utilities are off. They are best purchased with cash.

I have sold many HUD homes and would be glad to answer any questions you may have.

Deposit Money the Key to a good deal

In my 25 years of selling real estate I have learned that smart listing agents look for as much deposit money as possible.  I have seen several buyers walk away from $1000 or $2500 deposits. Its rare that buyers put up 10% of the purchase but they should be expected to provide a healthy deposit. It needs to be enough really commit the buyer to the purchase. If buyers balk at this then that should be a red flag.  I would have concerns that they may have other financial issues that were not disclosed.

The bottom line is…bigger deposits reduce risk…ask for the money!

Mortgage Rates Really Low !

According to Freddie Mac the average 30 year fixed rate mortgage is now at 5% with an average of .7 points.

The average 15 year fixed rate mortgage is now 4.36 percent with .7 points.

These are the lowest rates in six weeks. This is a great time to buy or refinance.
Of course , these rates are for owner-occupants. Investor rates will be higher.

If you are considering a purchase or refi please contact me and we will determine how much of a loan you can qualify for.  Put my 25 years experience to work for you !

Beware of “Wholesalers”

I just want to let people know that there are lot of shady characters out there who are trying to collect real estate commissions without having a valid real estate license. They are looking for “finders fees” for buyers that they will send to you. This is an illegal activity. In the state of Pennsylvania you can not be compensated in a real estate transaction without having a license. These people tend to use Craigslist. They market properties that are listed by Realtors and get buyers to contact them, they then turn around a try to get paid at the settlement. We recently encountered one such character who has been reported to the Real Estate Commission.

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