Is Real Estate For You?

January 12, 2012 by · Leave a Comment 

For many years now, plenty of people that are wealthy have gotten that way through investing inreal estate.Real estate investments are one of the things that can bring ongoing financial profits every month. When it increases in value, your investment becomes that much more important and profitable. You can get your money’s worth when the value of your real estate investment increases. However, people that are interested in real estate investment need to know that it is more than just making money. There are many things you need to consider if you are interested in investing in real estate, in particular residential real estate. There is no doubt that you can be very wealthy with this. However, you will have to stay in it for the long haul in order to make it work for you.

Why Real Estate May Be the Only Real Mainstay Market

December 13, 2011 by · Leave a Comment 

While you see businesses come to life, peak and fall, you may be thinking if a business of real estate is worth investing in. Would if the same thing happens to this business. You wouldn’t want to invest in something that won’t be substantial. Unlike other businesses, real estate is always a good investment to make, and may be the only real mainstay market.

Even though the real estate market rises and falls, there are still many benefits to being in real estate. You can expect that if something happens that causes the real estate to lower, it will eventually come back up. There is always a need for housing and people are always moving into different locations. No matter what type of real estate you are investing in, you can expect that someone will have the need to live on the property. Because real estate is part of the basic needs of individuals, it can be expected that someone will always be looking, and others will always be selling.

New Appraisal Standards

September 15, 2011 by · Leave a Comment 

 

NEW APPRAISAL STANDARDS

Effective 9-1-2011



If you have been in the real estate industry over the last few years the one constants in our business is change.  Below are the current appraisal changes that are now in effect. 

 

Will they make deals easier or harder to close? 

Probably both, but either way you should be aware of these changes and how it effects your business.



The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to develop the Uniform Appraisal Dataset (UAD). The UAD will:

(1) define what fields are required for an appraisal submission and 

(2) standardize both responses and definitions for certain fields.



What do this mean to you?



Here are just a few of the items impacted by the new appraisal standards:



**Days on the Market: Days on market is now defined as the total number of continuous days. If a property is taken off the market and then relisted,   the appraiser will have to count all of the days it has been listed.



**Offering Price: The original offering price and history of all price changes must be reported.



**Property Style: Appraisers must use appropriate architectural design indicators such as "Colonial," "Farmhouse," etc. Descriptions such as 1 story, 2 stories, etc are no longer acceptable.

 

**Quality of Construction: The appraiser must rate the quality of construction of the subject property and all comps using a list of 6 predefined quality levels.



**Location will no longer be simply "suburban" "rural" or "Urban".   The new reporting must give a location (overall) rating of "N"eutral,  "B"eneficial or "A"dverse plus a location factor such as Res for residential  — indicating the location is Beneficial and located on a Golfcourse or perhaps,    

A; BsyRd for adverse location on a busy road



**Condtion will no longer be just "average".   It will be a rating of C1 through C6.   C1 will indicate New, never occupied and C6 will indicate severe deficiencies or defects in structural integrity.   Our typical "average" home will likely carry a C4 rating and anything lower will indicate possible repair issues.



To read FAQs about the UAD appraisal standards, visithttps://www.efanniemae.com/sf/lqi/umdp/pdf/uadfaqs.pdf.

 

Canadian Bruce Tackles The Milford Estate Flip (Video)

September 3, 2011 by · Leave a Comment 

The Milford Estate flip is all finished and on the market. Bruce from Canada did an amazing job on this house and created 800 sqft of living space. This is a very unique home sitting on 1 acre in a country like setting. Bruce changed the exterior look of the property by adding a front porch and 2 car garage. Check out the before and after video to see for yourself.

Miller Ave Flip All Complete (VIDEO)

July 24, 2011 by · Leave a Comment 

Here is the complete rehab video from start to finish on our latest flip in Winter Park Florida. This home is now on the market at $114,500 and the repairs were just under 25k. Most of our properties are Bank owned, short sales or pre foreclosure. This home was purchased through an estate sale and the closing went smooth.Check back soon to see our property on Jan dr that will be complete this week and up on the website the following week.

The Mount Vernon St Flip In Historic Downtown Orlando

June 15, 2011 by · Leave a Comment 

Take a look at this flip using the view with PicLens link in the left hand corner above the photo's. In the photo's I explain the changes made to the property. 

Check out our latest flip downtown on Mount Vernon St. We purchased this 2/2 for $80,000 and turned it into a 3/2. The total rehab cost $45,000 and we now have it on the market at $189,900. This home is located in the historic colonial district downtown Orlando. This home was purchased through an estate sale and took nearly 4 months to get closed. We just purchased another home on Pinecrest, walking distance from Mount Vernon, also through an estate sale. We are currently marketing our Pinecrest property pre construction until we have time to get started. Right now we have three other properties ahead of Pinecrest and all 3 are moving right along. Next up we have Dawley, Jan and Miller. I will have them up on the site soon. Stay tuned……….

Milford Estates Pt, Oviedo Fl 32765 – $124,900 SOLD (CLICK HERE)

April 20, 2011 by · Leave a Comment 

REMINDER OF FHA CHANGES

April 18, 2011 by · Leave a Comment 

EFFECTIVE APRIL 18th, 2011  (This coming Monday)

 

FHA recently raised there monthly MIP which goes in effect on April 18th.  You would be surprised how many mortgage people do not know this.  That means if you are working with a borrower that is negotiating a house right now that is doing an FHA loan, the payment they were quoted will be lower that what they will actually get. 

 

WARNING: If you get a contract accepted before the 18th, make sure the lender is pulling the FHA case number right away to protect your buyer

 

MONTHLY MIP for FHA

FHA Loans with 3.5% down
NOW – .90
AFTER the 18th – .115

FHA Loans with more than 5% down
NOW – .85
AFTER the 18th – .110

FHA Loans with 10% Down
NOW – .25
AFTER the 18th – .50

FHA Loans with GREATER thatn 10% Down
NOW – none
AFTER the 18th – .25

 

SO HOW DOES THIS EFFECT THE PAYMENT?

For a $150,000 purchase price with 3.5% down:
The payment would increase by about $31.00

 

Miller Ave, Winter Park FL 32789 – $57,500 SOLD (CLICK HERE)

April 18, 2011 by · Leave a Comment 

Keystone Ave, Altamonte Springs FL 32701 – $59,900 SOLD (CLICK HERE)

April 12, 2011 by · Leave a Comment 

Orlando Real Estate Market Offers Many Incentives

March 21, 2011 by · Leave a Comment 

 When was the last time you were in Orlando?  If you’ve been before, you already know what a wonderful place it is, with a little bit of something for everyone.  With a thriving Downtown, the academia surroundings of the University of Central Florida, the more cultural side of Winter Park and the luxury of Isleworth and Windermere areas, there is bound to be something to connect you with the city. 

 

If you’ve never been to Orlando before, you should also know the real estate in the area has become a mecca for the investment-savvy or anyone looking to purchase a new home for a great price.  The proof is in the numbers:  The median sales price of all homes sold in the Orlando area is 6.91 percent lower at $94,950 in January when compared to last year.

 

According to the Orlando Convention and Visitors Bureau, approximately 47 million visitors make the trip to Orlando each year. Approximately 43.3 million of those guests are domestic visitors and 3.3 are international visitors.  Tourists flock to the sunny destination for the many tourist attractions Orlando has to offer.  Universal Studios, Disney World, world-class restaurants and great entertainment are all available for those making the trip to Orlando every year. 

W. Muriel St, Orlando Florida 32806 – $62,000 SOLD (CLICK HERE)

March 18, 2011 by · Leave a Comment 

How To Be Quick At Estimating Repairs

March 10, 2011 by · 1 Comment 

Estimating rehab costs

There are a couple of different ways to estimate repairs when looking at investment properties. If you have control of the property and inspection period any of the options below work. If you're buying from a wholesaler then option two and three are your best choice. Experience will play a big role in what method you chose and finding an experienced investor to mentor you will go along way. Here are some of your options:

1- You can hire a contractor to give you an estimate for the whole rehab or get estimates from all the different trades needed to complete the rehab. Usually the time needed to schedule all the trades to give you estimates will take too much time. The same with hiring a contractor to over see the whole rehab. The contractor as well needs to get his sub contractors out there for bids as well. Even if the contractor has his own crew it will usually take days before he can get a firm price.  Time is of the essence when competing against other rehabbers.Rehabbers like myself have a rough idea in about 10 minutes from the first time visiting the property. I have an idea of what the property is worth before I visit the home. This allows me to make a decision immediately after walking through the house. If I like the house and the numbers work, I sign the contract and give a deposit ASAP.

Hampton Ave Flip Downtown Orlando Complete

February 21, 2011 by · Leave a Comment 

Take a look at this flip using the view with PicLens link in the left hand corner above the photo's. In the photo's I explain the changes made to the property.

Our downtown Hampton flip is all finished and this little 2/1, 1050sqft home is now a gem. We converted the garage conversion back into a garage and created a little area for a dining table. The kitchen layout was changed by adding a back door, pantry and bar top. The rest of the home had no major changes and was updated. This home was a bank owned foreclosure that we purchased at $67,500 and plan on selling at $139,000.

 

The Deerwood Flip In Central Florida Is Complete!

January 18, 2011 by · Leave a Comment 

Our Deerwood property is finally done and move in ready. This former bank owned foreclosure was one ugly duckling. We had to put a lot of thought on the inside and outside of this project. The exterior was a complete make over from it's odd contemporary stye to it's fresh new spanish sytle design. On the interior we added a bedroom, made the family room functional, fixed the design flaws in the kitchen and much more. Check out the pics in the view with pics lense tab located in the left corner above the pictures. I explain in detail the changes made throughout the home. You will be amazed. This property is now on the market and we are getting a lot of good feed back. This home is located in an established neighborhood on the east side of Orlando. With mortgage rates at an all time you couldn't ask for a better time to buy real estate in the central Florida area.

Winter Park Investment Property Located In Central Florida

January 18, 2011 by · Leave a Comment 

Take a look at this flip using the view with PicLens link in the left hand corner above the photo's. In the photo's I explain the changes made to the property.

Here are some pictures of the Harmon house in Winter Park Florida. This is the 7th rehab I have started this year and I am closing in on my goal of 12 rehabs this year. This rehab we won't be changing the floor plan too much. We plan on making the kitchen bigger, the master bath bigger and updating everything. I bought this property with a vacant lot in the back. In the future I plan on building a new home on this lot. This is the 4th vacant lot that I have acquired in the past year. Once new construction picks up I will start building on these lots. This property and the other lots I purchased from other wholesalers. I have purchased several properties in the past from wholesalers and I have also sold several properties to other wholesalers. I personally don't care where the deals come from as long as the numbers work for me. In today's market the bank owned properties (REO's) are usually the best deals and the competition is fierce. When buying from wholesalers you usually pay about 3%-5% more but you don't have to waste time looking and putting in several offers.

Downtown Orlando Investment Property Rehab

January 11, 2011 by · Leave a Comment 

Take a look at this flip using the view with PicLens link in the left hand corner above the photo's. In the photo's I explain the changes made to the property.

Here is a property we bought in the downtown Orlando area. This bank owned foreclosure was purchased for $111,000 and sold for $223,000 five months later. We target  investment properties in the downtown area, Winter Park and college park area. These areas are more pricey but the payoffs are greater and properties seem to appraise easier. We have also found that the higher dollar homes close on time and have less hiccups. Just like buying in lower income areas you have to buy right and budget accordingly. When buying the lower end homes your margin of error is slim and you have to be careful not to under estimate the repairs. If you under estimate repairs it may influence you to pay more. Paying too much on something you under estimate can turn what you thought was a $20,000 profit into a loss. We always estimate high on repairs to combat unforeseen repairs. This property we ran into some unforeseen problems with the floors. When we ripped out the floors we noticed that the bathrooms and kitchen there was concrete about an inch and a half higher than the rest of the house. We had two choices to level the floors 1) float the whole home with concrete or 2) tap con plywood through the whole house. Since the floors were leveled out before with concrete and came up when we removed the tile we then chose to level the home with plywood and carpet. The bathrooms we tiled to the existing concrete. Everything turned out perfect but it was a cost that was not planned for. Mid Florida Investment Properties offers free rehab consulting to help our buyers through the whole flipping process. 

23 Winding Ridge Rd, Casselberry Fl 32707 – $119,900 SOLD (CLICK HERE)

January 8, 2011 by · Leave a Comment 

Here is a great opportunity to own a 4 bedroom, 2 bath home in desirable Casselberry Florida. This home was just completely remodeled and is move in ready. This superb location is near Altamonte mall, Florida Hospital and easy commute to downtown Orlando. Seminole county schools include Casselberry elementary, south Seminole middle school and Lake Howell high. Ask us how to take advantage of the record low interest rates.

Casselberry Florida Investment Property Finished

January 6, 2011 by · Leave a Comment 

Take a look at this flip using the view with PicLens link in the left hand corner above the photo's. In the photo's I explain the changes made to the property.

This bank owned foreclosure I purchased for $114,000 back on June 12 2009 has sold! This was a fun rehab that took just over 30 days to complete. We just sold it on 11/12/2009 for $212,500, exactly 5 months. Huge profit!! This home was converted into an assisted living home with 4 bedrooms and 4 bathrooms. We turned it back into 3 bedrooms with a room that could be used as a forth bedroom. We reduced the bathrooms to 3 full baths and converted the garage conversion back into a 2 car garage. Check out the pics to see all the changes we made to this flip.

 

Orlando Mortgage Rates Trends and Analysis

December 6, 2010 by · Leave a Comment 

Signs are pointing up for the real estate market.  This is due, in large part, to declining mortgage rates across the country.  Earlier this month the Fed presented a game plan that would invest $600 billion in Treasury bonds, a portion of which goes towards keeping mortgage rates low.    
 
If you are looking to buy real estate in the Central Florida area, this can mean significant savings in a time when it is needed most.  Analysis of the Orlando real estate market reveals that many are taking advantage of these new low mortgage rates, with a recent boost in home sales.  Even better for homebuyers, sale prices remain very competitive on a local level, which can result in great deals. 
 
According to NAR, the national median sales price for existing single-family residences in September was $172,600.  Statewide, homes sales are up 7 percent in October compared to last year, with a total of 143,398 single-family residences being sold.  Florida REALTORS® also reported a 33 percent gain in condo sales for the year in comparison to last year, with 59,966 units being sold so far in 2010.  With prices decreasing and sales showing an overall increase, Florida shows a positive momentum for real estate despite other economic uncertainties.  
 
In October, the interest rate for a 30-year fixed-rate mortgage averaged at 4.28 percent.  Compared to last year’s October interest rate of 4.95, this is a significantly lower rate reported by Freddie Mac.  These rates are predicted to rise, however, so timing is of the essence to take advantage of these new low rates.  
 
New homebuyers should take note that lenders can still be pretty discerning when it comes to approvals, so taking the following 3 steps may increase your chances of a lower interest rate and loan approval:
 
Repair any credit mishaps and raise your score.  There are many ways to improve your credit.  The best way is to reduce your debt.  
 
Save.  Save.  Save.  The more money you are able to put down on a home, the more attractive you are to lenders since you’re less of a risk.  
 
Consider real estate appraisal values.  Banks are not willing to lend more than a home’s value, so make sure the purchase price is at or below the home’s appraised market value.   

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