Hey Folks,
My Mom is in the hospital and we are anticipating a 3 hour back surgery for her on Monday, March 30. I will doing a Road Trip to Long Island so I will be away from the Blog for sometime.
If there are any questions please email them and I will try my best to get them answered as soon as I can!
Happy House Hunting!
Bob
Welcome to the DovCar Real Estate & Investments Blogspot! We would like to become your source for Metro Atlanta real estate; and use this Blog as an opportunity to pass along current information concerning the metro Atlanta real estate and foreclosure market. We also welcome your comments, questions and experiences as either sellers, buyers or real estate investors.
Wednesday, March 25, 2009
Monday, March 23, 2009
February existing home sales rise by 5.1 percent
From my friend and fellow R.E. Agent, Jeff Raw who emailed me this news this morning.
Thanks, Jeff
-Home Sales are on the rise again
-There is an $8,000 tax credit for first time home buyers
-Interest rates are close to all-time lows
The 3 items mentioned above are fact and shows that now is a great time to be in the market for a home. Does this mean we are at the bottom and prices are heading up? Nobody knows for sure until it actually happens, but this week definitely got off to a great start. Hedge fund managers are buying up non-performing assets from banks. Clearing these assets off their books is allowing lenders to loosen up their lending restrictions and allow small businesses and investors access to necessary capital. Wall Street is recognizing this as well and the Dow Jones jumped over 300 points this morning. This is definitely not the end of this economic rough patch, but it is a positive sign.
This article was pulled from AJC.com this morning and gives you more detail about the surprising jump in housing sales, spurred by bargain hunters knowing there will never be a better time to jump on deals and cash flow properties.
February existing home sales rise by 5.1 percent
By ALAN ZIBEL AP Real Estate Writer
WASHINGTON — Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.
The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.
Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.
The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.
February's median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.
In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, "homebuyers are not over stretching" said Lawrence Yun, the Realtors' chief economist. "They want to stay within their budget."
By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.
The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February's sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.
The bursting of the U.S. housing bubble has caused foreclosures to swamp the market — especially in particularly distressed states like California, Florida, Nevada and Arizona.
About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.
That's great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.
The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.
The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.
Thanks, Jeff
-Home Sales are on the rise again
-There is an $8,000 tax credit for first time home buyers
-Interest rates are close to all-time lows
The 3 items mentioned above are fact and shows that now is a great time to be in the market for a home. Does this mean we are at the bottom and prices are heading up? Nobody knows for sure until it actually happens, but this week definitely got off to a great start. Hedge fund managers are buying up non-performing assets from banks. Clearing these assets off their books is allowing lenders to loosen up their lending restrictions and allow small businesses and investors access to necessary capital. Wall Street is recognizing this as well and the Dow Jones jumped over 300 points this morning. This is definitely not the end of this economic rough patch, but it is a positive sign.
This article was pulled from AJC.com this morning and gives you more detail about the surprising jump in housing sales, spurred by bargain hunters knowing there will never be a better time to jump on deals and cash flow properties.
February existing home sales rise by 5.1 percent
By ALAN ZIBEL AP Real Estate Writer
WASHINGTON — Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.
The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.
Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.
The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.
February's median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.
In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, "homebuyers are not over stretching" said Lawrence Yun, the Realtors' chief economist. "They want to stay within their budget."
By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.
The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February's sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.
The bursting of the U.S. housing bubble has caused foreclosures to swamp the market — especially in particularly distressed states like California, Florida, Nevada and Arizona.
About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.
That's great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.
The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.
The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.
Sunday, March 22, 2009
Title Picture
One of our recent "SOLDS" in the Benteen Park area of Atlanta; just south of Grant Park is the featured picture in our Blog title.
Top 10 New Real Estate Investor Mistakes
I came across this article by Pat Curry. I like that it is a very concise summary of what new real estate investors encounter. ENJOY!
By Pat Curry • Bankrate.com
Once the market starts to rebound, investing in real property also becomes a more appealing idea -- either as a career or a great side job. Like any other endeavor, though, there's a right way and a wrong way to go about it.
Bank rate spoke with established, full-time real estate investors and with professionals, such as bankers, to identify the types of traps into which real estate investors most often fall.
1. Planning as you go. Andy Heller, an Atlanta-based investor and co-author of "Buy Even Lower: The Regular People's Guide to Real Estate Riches," says lack of a plan is the biggest mistake he sees new investors make. They buy a house because they think they got a good deal and then try to figure out what to do with it. That's working backward, Heller says. "First, you find the plan," he says. "Then you find the house to fit the plan. Pick your investment model, and then go find property to match that. Don't find the strategy after you find the home."
The problem is that most people look at real estate as a transaction instead of as an investment strategy, says Doug Crowe, a Chicago-based real estate investor and speaker. "People fall in love with a property," says Crowe, who is managing director of Springboard Academy, the nation's only real estate academy for investors. "I say, 'Who cares about the property?' I fall in love with a motivated seller."
The number is the number, and you don't go above that, he says. The best way to solve the problem is to have lots of activity and make offers on multiple properties. Then you don't care which one you get -- as long as the numbers work out in your favor.
2. Thinking you'll "get rich quick." That kind of wrong-headed thinking is fueled by "these self-appointed gurus who have infomercials and make it sound so easy to get rich in real estate," says Eric Tyson, co-author of "Real Estate Investing for Dummies." It's not easy. It's a good long-term investment, but so is putting your money in a mutual fund, which is a lot easier. "These gurus don't talk about all that hard work. You have to be smart, you have to be willing to work, and you have to understand your risk tolerance."
3. Playing Lone Ranger. A key to success is building the right team of professionals. At the very least, you need good relationships with at least one real estate agent, an appraiser, a home inspector, a closing attorney and a lender, both for your own deals and to assist with financing for prospective buyers. In the remodeling and maintenance segment of the business, the team includes a plumber, an electrician, a roofer, a painter, a heating and air conditioning, or HVAC, contractor, a flooring installer, a lawn maintenance service, a cleaning service and an all-around handyman. You can't build a business as an investor if you're spending all your time fixing leaky faucets and putting up ceiling fans.
4. Paying too much. Heller says the biggest reason investors don't make money is simple: They pay too much for the properties. "The profit is locked in immediately once the investor buys the property," he says. "Due to mistakes in the analysis, the investor pays too much and then is surprised later when he doesn't make any money."
5. Skipping homework. You wouldn't think you're qualified to perform open-heart surgery without years of education and training. Yet many wannabe real estate investors don't think twice about taking their financial lives in their hands without even cracking a book. Educate yourself before you put your family's financial security on the line. Read articles, check out books from the library and look for a local chapter of the National Real Estate Investors Association. Speakers at monthly meetings cover everything from buying foreclosures to screening tenants. If you can't find a local chapter, find out who owns a lot of rental properties in the area, call him up and offer to pay for an hour or two of his time to find out whether this is a good career for you.
6. Ducking due diligence. Investors often have to move very quickly on their deals. That doesn't mean they sign a contract and write a check without plenty of research, though. That's where a lot of newbies trip up, says Houston-based real estate agent Laolu Davies-Yemitan. They don't do their due diligence about the deal, the costs or the market conditions, and they wind up draining their personal savings because the house needs extensive repairs or they can't sell it. "Sometimes, new investors are buying property just based on the idea that the property is going to appreciate," he says. "Usually, they don't have any information to substantiate that."
7. Misjudging cash flow. If your strategy is to buy, hold and rent out properties, you need sufficient cash flow to cover maintenance. "People think they can get a property manager," Tyson says. But many have never interviewed a property manager and have little idea about how they work. Most managers, for example, are reluctant to take on one single-family home or a duplex, he says, preferring larger complexes, and fees of 7 percent to 10 percent of the monthly rent are common. "It's a huge expense," Tyson says. "I can put my money in a mutual fund and it costs a half-percent a year."
Davies-Yemitan agrees. It's not uncommon for a property to sit on the Houston market for 90 to 120 days before it's leased, he says. Meanwhile the owner has to pay the mortgage, the taxes, the insurance, the cost of advertising and homeowner or condo association dues, he says. If the owner hasn't budgeted for that, an asset can quickly become a liability.
8. Lowering the volume. If you're working on one deal at a time, Crowe says, you're doing transactions, not running a business. You need a steady pipeline of prospective deals; sufficient volume will weed out the marginal deals and let the good ones rise to the top.
9. Painting yourself into a corner. Many people buy a property and get stuck with it because they only have one exit strategy. They're going to sell it or they're going to rent it out. What if it doesn't sell? What if the rental market stalls? Always have two, if not three, ways to get out of any deal. For example, if plan A is to rehab the house, put it on the market and resell it, then plan B could be to offer a lease-purchase to a buyer. Plan C might be to hold the house and rent it out. And as a plan D, there is the wholesale option, which would involve selling to another investor at a below-market price. Hopefully, you'll still make a profit, but at the very least, you'll cut the losses you're taking every month in carrying costs.
10. Miscalculating estimates. Crowe tells his new rehabbers that after they've done their homework, they should double the amount of time and money they think it will take. If they can still make money then and they might be able to rent it out, it's a good deal.
By Pat Curry • Bankrate.com
Once the market starts to rebound, investing in real property also becomes a more appealing idea -- either as a career or a great side job. Like any other endeavor, though, there's a right way and a wrong way to go about it.
Bank rate spoke with established, full-time real estate investors and with professionals, such as bankers, to identify the types of traps into which real estate investors most often fall.
1. Planning as you go. Andy Heller, an Atlanta-based investor and co-author of "Buy Even Lower: The Regular People's Guide to Real Estate Riches," says lack of a plan is the biggest mistake he sees new investors make. They buy a house because they think they got a good deal and then try to figure out what to do with it. That's working backward, Heller says. "First, you find the plan," he says. "Then you find the house to fit the plan. Pick your investment model, and then go find property to match that. Don't find the strategy after you find the home."
The problem is that most people look at real estate as a transaction instead of as an investment strategy, says Doug Crowe, a Chicago-based real estate investor and speaker. "People fall in love with a property," says Crowe, who is managing director of Springboard Academy, the nation's only real estate academy for investors. "I say, 'Who cares about the property?' I fall in love with a motivated seller."
The number is the number, and you don't go above that, he says. The best way to solve the problem is to have lots of activity and make offers on multiple properties. Then you don't care which one you get -- as long as the numbers work out in your favor.
2. Thinking you'll "get rich quick." That kind of wrong-headed thinking is fueled by "these self-appointed gurus who have infomercials and make it sound so easy to get rich in real estate," says Eric Tyson, co-author of "Real Estate Investing for Dummies." It's not easy. It's a good long-term investment, but so is putting your money in a mutual fund, which is a lot easier. "These gurus don't talk about all that hard work. You have to be smart, you have to be willing to work, and you have to understand your risk tolerance."
3. Playing Lone Ranger. A key to success is building the right team of professionals. At the very least, you need good relationships with at least one real estate agent, an appraiser, a home inspector, a closing attorney and a lender, both for your own deals and to assist with financing for prospective buyers. In the remodeling and maintenance segment of the business, the team includes a plumber, an electrician, a roofer, a painter, a heating and air conditioning, or HVAC, contractor, a flooring installer, a lawn maintenance service, a cleaning service and an all-around handyman. You can't build a business as an investor if you're spending all your time fixing leaky faucets and putting up ceiling fans.
4. Paying too much. Heller says the biggest reason investors don't make money is simple: They pay too much for the properties. "The profit is locked in immediately once the investor buys the property," he says. "Due to mistakes in the analysis, the investor pays too much and then is surprised later when he doesn't make any money."
5. Skipping homework. You wouldn't think you're qualified to perform open-heart surgery without years of education and training. Yet many wannabe real estate investors don't think twice about taking their financial lives in their hands without even cracking a book. Educate yourself before you put your family's financial security on the line. Read articles, check out books from the library and look for a local chapter of the National Real Estate Investors Association. Speakers at monthly meetings cover everything from buying foreclosures to screening tenants. If you can't find a local chapter, find out who owns a lot of rental properties in the area, call him up and offer to pay for an hour or two of his time to find out whether this is a good career for you.
6. Ducking due diligence. Investors often have to move very quickly on their deals. That doesn't mean they sign a contract and write a check without plenty of research, though. That's where a lot of newbies trip up, says Houston-based real estate agent Laolu Davies-Yemitan. They don't do their due diligence about the deal, the costs or the market conditions, and they wind up draining their personal savings because the house needs extensive repairs or they can't sell it. "Sometimes, new investors are buying property just based on the idea that the property is going to appreciate," he says. "Usually, they don't have any information to substantiate that."
7. Misjudging cash flow. If your strategy is to buy, hold and rent out properties, you need sufficient cash flow to cover maintenance. "People think they can get a property manager," Tyson says. But many have never interviewed a property manager and have little idea about how they work. Most managers, for example, are reluctant to take on one single-family home or a duplex, he says, preferring larger complexes, and fees of 7 percent to 10 percent of the monthly rent are common. "It's a huge expense," Tyson says. "I can put my money in a mutual fund and it costs a half-percent a year."
Davies-Yemitan agrees. It's not uncommon for a property to sit on the Houston market for 90 to 120 days before it's leased, he says. Meanwhile the owner has to pay the mortgage, the taxes, the insurance, the cost of advertising and homeowner or condo association dues, he says. If the owner hasn't budgeted for that, an asset can quickly become a liability.
8. Lowering the volume. If you're working on one deal at a time, Crowe says, you're doing transactions, not running a business. You need a steady pipeline of prospective deals; sufficient volume will weed out the marginal deals and let the good ones rise to the top.
9. Painting yourself into a corner. Many people buy a property and get stuck with it because they only have one exit strategy. They're going to sell it or they're going to rent it out. What if it doesn't sell? What if the rental market stalls? Always have two, if not three, ways to get out of any deal. For example, if plan A is to rehab the house, put it on the market and resell it, then plan B could be to offer a lease-purchase to a buyer. Plan C might be to hold the house and rent it out. And as a plan D, there is the wholesale option, which would involve selling to another investor at a below-market price. Hopefully, you'll still make a profit, but at the very least, you'll cut the losses you're taking every month in carrying costs.
10. Miscalculating estimates. Crowe tells his new rehabbers that after they've done their homework, they should double the amount of time and money they think it will take. If they can still make money then and they might be able to rent it out, it's a good deal.
Thursday, March 19, 2009
10,000 Properties Foreclosed In April
10,000 Foreclosed properties up for sale in April - Fulton County at top of record-setting list
By KEVIN DUFFFY
The Atlanta Journal-Constitution - Monday, March 16, 2009
The foreclosure problem in metro Atlanta appears to be worsening. More than 10,000 lender-owned properties are scheduled to be sold on courthouse steps next month, according to EquityDepot.net, which tracks foreclosures.
The 10,138 figure for 13 counties shatters the previous record of 8,425 properties scheduled for sale in February, Equity Depot.net says.
“The economic situation we’ve got is causing more and more people to have difficulty making their house payments," said Steve Bridges, president and CEO of the Community Bankers Association of Georgia. “It’s not that surprising given the state of the economy and the number of jobs that have been lost."
The jobless rate in metro Atlanta is 8.7 percent, the highest rate reported since the measurement was standardized in 1976, the Georgia Labor Department said. The local unemployment rate is up 65 percent in the past 12 months.
Foreclosures are a big reason why Atlanta is the third emptiest metro area in America, according to a Forbes.com analysis of Census data.
In the new foreclosure numbers, Fulton leads with 2,181 properties scheduled for sale, followed by Gwinnett, DeKalb and Cobb counties.
“Until we see some bottoming out, I think we can expect to see numbers like this," said Joe Brannen, president of the Georgia Bankers Association.
Foreclosure sales are held on courthouse steps the first Tuesday of each month. Many properties end up not selling because of settlements and bankruptcy filings. When properties generate little bidder interest, lenders end up taking them back for sale later.
By KEVIN DUFFFY
The Atlanta Journal-Constitution - Monday, March 16, 2009
The foreclosure problem in metro Atlanta appears to be worsening. More than 10,000 lender-owned properties are scheduled to be sold on courthouse steps next month, according to EquityDepot.net, which tracks foreclosures.
The 10,138 figure for 13 counties shatters the previous record of 8,425 properties scheduled for sale in February, Equity Depot.net says.
“The economic situation we’ve got is causing more and more people to have difficulty making their house payments," said Steve Bridges, president and CEO of the Community Bankers Association of Georgia. “It’s not that surprising given the state of the economy and the number of jobs that have been lost."
The jobless rate in metro Atlanta is 8.7 percent, the highest rate reported since the measurement was standardized in 1976, the Georgia Labor Department said. The local unemployment rate is up 65 percent in the past 12 months.
Foreclosures are a big reason why Atlanta is the third emptiest metro area in America, according to a Forbes.com analysis of Census data.
In the new foreclosure numbers, Fulton leads with 2,181 properties scheduled for sale, followed by Gwinnett, DeKalb and Cobb counties.
“Until we see some bottoming out, I think we can expect to see numbers like this," said Joe Brannen, president of the Georgia Bankers Association.
Foreclosure sales are held on courthouse steps the first Tuesday of each month. Many properties end up not selling because of settlements and bankruptcy filings. When properties generate little bidder interest, lenders end up taking them back for sale later.
Metro Atlanta Mortgage Rates
Thursday, March 19 2009
For the latest in metro Atlanta Area Mortgage rates: http://realestate.yahoo.com/Georgia/Atlanta/loans/mortgage.html
For the latest in metro Atlanta Area Mortgage rates: http://realestate.yahoo.com/Georgia/Atlanta/loans/mortgage.html
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About Me
- PropBob
- Metro Atlanta, Georgia, United States
- Realtor and Real Estate Investor - Revitalizing metro Atlanta, One Property at a Time. www.dovcar.com