Yesterday, I got a call from someone driving by a home that I have for rent. The house is on a busy street.  There’s great visibility when it comes to renting it, and it’s a great place to have a real estate sign. It’s free advertising for me. I get a lot of calls on this house.  But, not everyone wants to live on a busy street. It has a big fenced yard, with beautiful big shade trees.  But, for people with little ones they may be afraid that their kids may run out into the street. That certainly is a valid concern. 

The tenants that have lived in the house throughout the years have varied. Most had pets, but when I think about it, none of them had real small children.  One tenant brought home a pet cow one day. Boy, was my phone ringing off the hook with neighbors calling about that cow.  When I saw it, I had to chuckle. Now, I have to admit, I’ve never had a tenant bring a cow into a residential neighborhood, before. Oh, but with rentals there’s a first time for everything. 

None of the tenants that have lived in this house on the busy street seemed to mind the street out front or the traffic noise.  I suppose that different houses suit different people. 

Did I mention that the railroad tracks are 3 blocks away?

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

This picture was taken in Cape Canaveral Florida,  just minutes from where the cruise ships come in to port.

All rights reserved and may not be reproduced or reprinted without express written permission of Sandy Shores, Realtor.

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

It seems almost impossible that Fall is already here.

But, I love the Fall, when the air is crisp and clean and the leaves begin to change color and drop from the trees. Being in Florida we feel less humidity. The cool air starts creeping in.

But, I can’t help but wonder, where did the time go? 

Summer was here and gone in a blink.

I was in the store yesterday and the shelves are bulging with Halloween and Christmas items – oh my goodness – not already. Christmas, not so fast!  I’m not ready yet!

I wake up on Monday morning and when I fall into bed, it’s Friday night already.  The weeks just fly. I suppose it has nothing to do with having two very active teenage daughters, rental properties and two businesses.

I have always been told that the older you get, the quicker that times goes.  I can’t imagine it moving any faster than it does.

So time, please slow down, I want to stop and remember to smell the roses.

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

This week a client was referred to me that wants to buy a house. 

During our initial phone conversation, one of the first things I always ask is whether they have a lender and are pre approved for a loan. 

He indicated that he did have a lender, that he found online. (Uh-oh).  And, that he was preapproved. The Brevard County Real Estate market is considered a distressed market.  It is so important for a buyer to have a local lender and a local appraiser that understands our market.  

My next question was whether or not he had received a Good Faith Estimate from the lender.  He had not. (Uh-oh #2). Every buyer should be provided with a Good Faith Estimate when being Preapproved for a loan.  This gives the buyer an estimate of his closing expenses and prepaid expenses.  It will also provide an estimate of his monthly mortgage payment amount and his anticipated interest rate.

The buyer gave me his lender’s long distance and toll free phone numbers (uh-oh #3) as I always talk to the lender at the beginning of a transaction, before we head out to look at any houses.

I called to get more info from his lender. I called 3 times in 2 days (uh-oh#4) with no response.  His voice message said, “I will return your call in the order in which it was received.”  (uh-oh #5).

I have to know what type of loan he will be financing the house with, so I know what type of home he can buy. I finally found that this buyer is purchasing with an FHA mortgage, with a 3 1/2% down payment. So, he won’t be able to purchase a home that requires extensive repairs. The roof has to be “newer” and so does the air conditioning system.  There typically can’t be broken windows. The house must have heat and a stove and it typically cannot be in some phase of remodeling.  If this buyer was getting a conventional loan with 20% down he would be able to look at completely different properties, as there would not be many restrictions on what he could buy.  In paying cash, a buyer could purchase any home he wants.

When I was talked to the lender, I received the Good Faith Estimate (as did the buyer).  My teeth nearly fell out of my mouth, when I looked at the figures. (uh-oh #6). The fees were some of the highest I had ever seen. The interest rate was too high, the estimate was full of unnecessary junk fees.  I couldn’t believe my eyes!

I recommended this buyer get additional estimates from LOCAL lenders to compare fees.  I know that he can do much better than what he was quoted. 

In this market, as Patricia Kennedy pointed out, in a recent post she wrote, not only is it important to come in with a strong offer to purchase a house, but, listing agents also look at the pre approval letter with the lender info to determine whether they will accept the offer.

If a buyer winds up in a multiple offer situation, which many buyers here in the under $125K price range do, the best offer is going to be choosen based on which one has the best chance of getting to closing. Here in our market the listing agent often times wants a local, reputable lender, that knows the market, that has a processing center right here in town. They know if they tell us, upfront, that they can do the deal, then they can do it. They want the smoothest transaction possible, that won’t get snagged or delayed. They don’t want any surprises.

In our market, a nameless faceless lender, with exorbinant fees and a long distance or toll free number, that doesn’t return phone calls, from somewhere across the country, is not going to help your offer along, to get you the house that you want to buy. 

If your offer is accepted, will they be able to get you to closing?

All lenders are NOT alike. And, all online lenders are NOT alike.

Get a couple of estimates and talk to a couple of lenders.

Be sure you do your homework BEFORE you head out the door to look at houses. 

FOOTNOTE: I later found out, after the buyer talked to a local lender, that he is self employed. The buyer indicated that he had not discussed his employment situation, nor the fact that he had recently opened a new business during his interview with the online lender. So, now, I am waiting to hear whether this buyer will be able to buy a house at all!

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

 
I received the phone call yesterday. The buyer was calling from up North. She has been watching the real estate market and has decided that Brevard County would be a great place to invest in some real estate. She’s right, it is a great time to buy in Florida.

I asked her what she was looking for. She indicated that she would like a 3 or 4 bedroom, 2 to 3 bath, 2 car garage, situated on at least half an acre.  She would like 1800+ feet of living and minor repairs needed, preferably none.  I told her that I would be more than happy to see what I could find.

“What’s your price range?” I asked.

“$25,000. I don’t want to pay anymore than $25,000 for a property.”

“25,000?,” I asked. I was certain I misunderstood.

“I will not pay anymore than $25,000 for a property,” she responded.

Hmmmmmmm…..

When you find one of those, let me know, because I’ll buy one too!

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Forbes has determined that these metro areas boast gains in real estate sales over 2008:

1. Miami, Ft. Lauderdale, Florida
2. Lincoln, Nebraska
3. Colorado Springs, Colorado
4. Salem, Oregon
5. San Luis Obispo, California
6. Bremerton, Washington
7. Denver, Colorado
8. Redding, California
9. Santa Barbara, California.
10. San Jose, California

It’s not surprising that 4 of these areas are located in California. In placing the Miami/Ft. Lauderdale area at the top of the list, this certainly covers a very large portion of South Florida.

This article is authored by

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

In the 35 years I have lived in Brevard County I have never seen anything like this before.

All of these pictures were taken in the backyard of my client’s new riverfront condo here in Brevard County Florida.

These guys were drinking fresh water from a hose. They couldn’t get enough of it.

They were circling and snorting and doing somersaults right in front of us. 

They were so close we could reach out and touch them.

They just loved laying on their backs and taking in the fresh water.

My friend, Tony, indicated that the manatees are very active early in the morning.  They love playing and and having fun in the water. Later in the day they usually are resting.

He has indicated that he can stand on his balcony and watch the porpoises jump, also.

Now this is what I call heaven. 

Such an incredible sight to see. 

My teenage daughters absolutely loved watching these playful, fun loving creatures.

My client, who has become a great friend of mine, has told us that anytime we want to visit, we are more than welcome to come to watch the manatees.

He absolutely loves his new home, as he says that everyday he feels like he’s on vacation.

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

This morning I went to check on one of my short sale listings.  The owners moved last week, so the home has been vacated.  I always make it a point to check my vacant listings regularly, to be sure there are no problems, and to be sure the doors are locked and the lights are off.

When I walked into the kitchen, I noticed the blinds blowing in the breeze.  Huh?  How can that be, when the air conditioner wasn’t currently running?  Uh oh, there was a broken window.

A new pane of glass will need to be put in that window.

Often times we see short sales or foreclosures with windows that get boarded up to protect the home from the weather/rain. However, in many cases FHA or VA will not allow their buyer to purchase a home with broken or boarded up windows, because the short sale or foreclosure lenders are not favorable to doing repairs on these properties. So, often times the house will not pass an FHA or VA inspection.

NOTE: On every short sale and foreclosure, for a buyer, I always ask the lender to do the needed repairs.  And often, they won’t agree to it.  However, I will say that on a couple occasions the lenders have done regular repairs and some necessary FHA repairs. One lender fixed some broken windows, one put a stove in and another gave a credit to the buyers for an A/C repair. We don’t always know what they’ll agree to do, until we ask.

So, the key here is to never assume they’ll do nothing.

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

I just finished reading an article that indicated that the Brevard County Tax Collectors office will no longer be accepting VISA cards to pay your tax bills.  The decision came on May 4.   VISA charges a $2.00 of 2.95% convenience fee (whichever is higher) to it’s third party vendors.

The Clerk of Courts office will continue accepting Mastercard, American Express and Discover Credit cards and they will also accept Mastercard debit cards.

Marion, Osceola and Walton county tax collector offices will also no longer be accepting VISA payments.

The burden of these added “swipe” fees to small business is being passed on to the consumer in the way of higher costs of goods.  Small business owners are getting fed up with the added fees and calling for credit card reform.

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

I remember when I first got into the real estate business in 1996, my broker and I were discussing real estate investing. He told me that people sit, waiting for that one great deal, and in the meantime they miss out on the good deals. Because of their inactivity they may never end up buying anything. 

He has been in real estate for over 50 years and has been investing in commercial, residential and mobile home parks.

We hear it everyday, is the market going down? Have we hit rock bottom? Has the market started heading back up? Does anyone really know for sure?  Hindsight is always 20/20.  We do know that prices are at early 2000 levels. But, what does it all really mean anyway? Do all these questions just paralyze us into doing nothing, not making a decision to buy or to sell?  The reality is that no one really has the answers to any of these questions.  We are all attempting to make an educated guess based on a market in which none of us have ever experienced.

I started buying rentals in 1996 and continued buying in 2005.  I have bought in different types of markets, as I have kept my eyes and ears open and been able to scoop up some good deals.

But, often in real estate investing, when everyone else is buying, it’s a good time to sell.

And, when everyone is selling, it’s a good time to buy.

Investors getting into the market, thinking they are going to make a killing are usually the ones that lose their shirts.  Investors that are a bit more realistic, with the thought that they can make a comfortable profit, are often able to do just that… make a handsome profit.

What are your goals in buying? Are you hoping to flip a property today? Are you going to hold it for a period of time and use it as a rental?  These are all factors that must be considered.

Do your homework first. If the numbers don’t work on paper, they aren’t going to work at all. Don’t fall in love with an adorable house that you think would make a great rental because it’s brand new and beautiful.  It may turn out to be a terrible rental property.  Rental houses aren’t always gorgeous.  Very often they are clean, small and affordable.  See what the demand in your market is. Be smart and research first.

And remember in real estate investing, Pigs Get Fat and Hogs Get Slaughtered.

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.