Most real estate professionals remain gloomy about the prospects of the commercial property market turning around this year and predict further price declines, according to a recent poll.
There have been few large property sales since the credit market froze last summer. Only a third of the 1,500 respondents to a survey taken by online property listing service LoopNet, however, said they expect sales activity to recover in 2009.
Most of the survey's respondents, 42%, are not expecting the market to pick up until 2010. A large number of the respondents, 26%, are even more pessimistic. Those commercial real estate investors, brokers and owners don't expect to see a recovery until 2011.
Prices have to come down 10% or more from current levels to restart the market, according to two-thirds of the respondents. Many think the market will come down farther than that. About 37% of the professionals predicted prices will go down as much as 20% while 30% said values will go down more n 30%
As a group, owners are more optimistic, both in terms of the timing of the recovery and the expected level of price declines, than are investors and brokers, LoopNet said.
-- Roger Vincent
Los Angeles Times
Florida REO and Wholesale Properties
Friday, May 29, 2009
Monday, May 25, 2009
When the Going Gets Tough, the Tough Hold Raffles
Bargain Hideaways
By KAREN HUBE for Barron's
Snag swanky summer digs at a discount while you can, before the sector snaps back. And, frustrated sellers resort to creative means to move their mansions.
AS MANSIONS SIT ON THE MARKET FOR MONTHS, a growing number of frustrated sellers are trying their luck with raffles and auctions.
Miles Brannan of Fort Lauderdale, Fla., has a 6,000-square-foot home with a billiard room and water frontage that has been on the market for a year at $3 million. Burdened by mortgage payments and the cost of upkeep, Brannan is selling 300,000 raffle tickets at $10 a pop, and offering the home as the prize.
"When times get tough you do what you have to do," says Brannan, a real-estate agent whose business has been hit by the housing slump. He has sold about 15,000 tickets so far.
But a raffle or auction is no easy out. It takes aggressive marketing, and there are legal matters to consider, which vary by state. Typically, a homeowner must team up with a nonprofit organization, which gets funds from the raffle in excess of the property's appraised value.
Dean Kent, a real-estate investor planning to raffle his $2.6 million oceanfront home in Norfolk, Va., with 30,000 $100 tickets, hopes to minimize the hassle of the auction by hiring Raffle Mansion Charity Promotion, one of a handful of new national organizations to crop up lately to facilitate raffles.
The risk to homeowners in raffling a home is failing to sell enough tickets. Owners typically hope to raise enough to cover the appraised value of their home. If the proceeds fall short, there are usually two options, depending on how the raffle was structured: Give refunds to ticket holders, or award a cash prize for the amount raised in the raffle.
Ticket buyers face a danger of their own: "The fair market value of the property must be reported as income on your tax return," says David Oswald of Smith Elliott Kearns & Co., a Hagerstown, Md., accounting firm.
For Dennis Weaver, winner of a successful raffle of a $380,000 home in Hagerstown last year, the tax hit was $135,000. Weaver, the circuit-court clerk of Washington County, Md., took a second mortgage on his primary home to cover it, then sold the property for a deeply discounted price of $279,000 and still managed to pocket $100,000. "My first question when I won was, 'Do I have to take it?' But it turned out OK," Weaver says.
When a property won through an auction is ultimately sold, the cost basis on the home is its fair- market value when the prize was awarded, not the raffle price, Oswald says.
Auctions can be equally difficult. Fire-sale auctions in which there is no reserve price -- the minimum for which an owner will sell -- typically draw bargain-hungry shoppers, but when there is a minimum price, few bidders show up, says Elizabeth Blakeslee, associate broker at Coldwell Banker Residential Brokerage in Washington.
IBidcondo.com, a company founded early this year, plans to be the first to offer no-reserve auctions on the Internet. Conceivably, bidders will be able to bid as little as $10 for a property. The company, which is holding its first auction -- a $690,000 condominium in Austin, Texas -- on May 26, is selling seats at $100 each to cover the price of the property. Of the money that comes in from the bidding, IBidcondo.com keeps 10% and, after certain expenses, the rest goes to charity.
Eugene Marchese, IBidcondo.com's founder, said he has already received inquiries from owners looking to unload multimillion-dollar homes. "We are going to start with condos and possibly move on from there," Marchese says. "This is a revolution, and all revolutions take time."
Florida REO and Wholesale Properties
By KAREN HUBE for Barron's
Snag swanky summer digs at a discount while you can, before the sector snaps back. And, frustrated sellers resort to creative means to move their mansions.
AS MANSIONS SIT ON THE MARKET FOR MONTHS, a growing number of frustrated sellers are trying their luck with raffles and auctions.
Miles Brannan of Fort Lauderdale, Fla., has a 6,000-square-foot home with a billiard room and water frontage that has been on the market for a year at $3 million. Burdened by mortgage payments and the cost of upkeep, Brannan is selling 300,000 raffle tickets at $10 a pop, and offering the home as the prize.
"When times get tough you do what you have to do," says Brannan, a real-estate agent whose business has been hit by the housing slump. He has sold about 15,000 tickets so far.
But a raffle or auction is no easy out. It takes aggressive marketing, and there are legal matters to consider, which vary by state. Typically, a homeowner must team up with a nonprofit organization, which gets funds from the raffle in excess of the property's appraised value.
Dean Kent, a real-estate investor planning to raffle his $2.6 million oceanfront home in Norfolk, Va., with 30,000 $100 tickets, hopes to minimize the hassle of the auction by hiring Raffle Mansion Charity Promotion, one of a handful of new national organizations to crop up lately to facilitate raffles.
The risk to homeowners in raffling a home is failing to sell enough tickets. Owners typically hope to raise enough to cover the appraised value of their home. If the proceeds fall short, there are usually two options, depending on how the raffle was structured: Give refunds to ticket holders, or award a cash prize for the amount raised in the raffle.
Ticket buyers face a danger of their own: "The fair market value of the property must be reported as income on your tax return," says David Oswald of Smith Elliott Kearns & Co., a Hagerstown, Md., accounting firm.
For Dennis Weaver, winner of a successful raffle of a $380,000 home in Hagerstown last year, the tax hit was $135,000. Weaver, the circuit-court clerk of Washington County, Md., took a second mortgage on his primary home to cover it, then sold the property for a deeply discounted price of $279,000 and still managed to pocket $100,000. "My first question when I won was, 'Do I have to take it?' But it turned out OK," Weaver says.
When a property won through an auction is ultimately sold, the cost basis on the home is its fair- market value when the prize was awarded, not the raffle price, Oswald says.
Auctions can be equally difficult. Fire-sale auctions in which there is no reserve price -- the minimum for which an owner will sell -- typically draw bargain-hungry shoppers, but when there is a minimum price, few bidders show up, says Elizabeth Blakeslee, associate broker at Coldwell Banker Residential Brokerage in Washington.
IBidcondo.com, a company founded early this year, plans to be the first to offer no-reserve auctions on the Internet. Conceivably, bidders will be able to bid as little as $10 for a property. The company, which is holding its first auction -- a $690,000 condominium in Austin, Texas -- on May 26, is selling seats at $100 each to cover the price of the property. Of the money that comes in from the bidding, IBidcondo.com keeps 10% and, after certain expenses, the rest goes to charity.
Eugene Marchese, IBidcondo.com's founder, said he has already received inquiries from owners looking to unload multimillion-dollar homes. "We are going to start with condos and possibly move on from there," Marchese says. "This is a revolution, and all revolutions take time."
Florida REO and Wholesale Properties
Wednesday, May 20, 2009
First-time Homebuyers Still a Minority
First-time homebuyers still a minority locally, Realtor says
Tampa Bay Business Journal
Residential sales are riding the highest in nearly two years, but attributing that jump to an increase in first-time homebuyers might not be accurate, according to one Tampa Bay real estate company.
“Given that the average household income in Tampa is right around $45,000, it seems highly unlikely that first-time homebuyers dominated either the cash-purchase or conventionally financed categories,” said Peter Murphy, president of Home Encounter LLC, in a release.
Groups like the Florida Association of Realtors said the low home prices, the stronger availability of loans through the Federal Housing Administration and the first-time buyer tax credit helped fuel sales in the region. However, first-time buyers likely represented far less than the 43 percent of sales they did in 2008.
Realtors reported that cash buyers purchased more than 41 percent of all sales this year at an average purchase price of $121,400. At the same time, 33 percent of all sales were financed through conventional means, which typically requires a 30 percent down payment. With those sales averaging $232,000, more than 74 percent of overall sales in the region needed at least $70,000 cash in order to buy.
The three categories that usually contain a lot of first-time homebuyers — new FHA loans, new Veterans Administration loans and assumed FHA and VA loans — only accounted for 23 percent of all the sales so far this year.
“Even if we assume that half of all conventionally financed sales were purchased by first-time homebuyers, which is highly improbable given the average price of these homes, first-time buyers will would still represent no more than 40 percent of all buyers year to date,” Murphy said. That would also be a 3 percent drop in first-time homebuyers from 2008 while national sales had 53 percent first-time homebuyers.
It’s not typical for first-time buyers to pay cash for their real estate, Murphy said. Instead, investors and repeat buyers are snapping up deals right now that might be attractive to them but not exactly the best price for first-time homebuyers who don’t have a high enough income to really wheel and deal in the current market.
Florida REO & Wholesale Deals
Tampa Bay Business Journal
Residential sales are riding the highest in nearly two years, but attributing that jump to an increase in first-time homebuyers might not be accurate, according to one Tampa Bay real estate company.
“Given that the average household income in Tampa is right around $45,000, it seems highly unlikely that first-time homebuyers dominated either the cash-purchase or conventionally financed categories,” said Peter Murphy, president of Home Encounter LLC, in a release.
Groups like the Florida Association of Realtors said the low home prices, the stronger availability of loans through the Federal Housing Administration and the first-time buyer tax credit helped fuel sales in the region. However, first-time buyers likely represented far less than the 43 percent of sales they did in 2008.
Realtors reported that cash buyers purchased more than 41 percent of all sales this year at an average purchase price of $121,400. At the same time, 33 percent of all sales were financed through conventional means, which typically requires a 30 percent down payment. With those sales averaging $232,000, more than 74 percent of overall sales in the region needed at least $70,000 cash in order to buy.
The three categories that usually contain a lot of first-time homebuyers — new FHA loans, new Veterans Administration loans and assumed FHA and VA loans — only accounted for 23 percent of all the sales so far this year.
“Even if we assume that half of all conventionally financed sales were purchased by first-time homebuyers, which is highly improbable given the average price of these homes, first-time buyers will would still represent no more than 40 percent of all buyers year to date,” Murphy said. That would also be a 3 percent drop in first-time homebuyers from 2008 while national sales had 53 percent first-time homebuyers.
It’s not typical for first-time buyers to pay cash for their real estate, Murphy said. Instead, investors and repeat buyers are snapping up deals right now that might be attractive to them but not exactly the best price for first-time homebuyers who don’t have a high enough income to really wheel and deal in the current market.
Florida REO & Wholesale Deals
Tuesday, May 12, 2009
A Must See Video If Your Serious About REOs
Last week, I let you in on a sneak preview of an amazing new real estate
tool. If you didn’t have a chance to check it out, click on the link below
for a look at this new Revolution in REOs.
Your Gold Rush is coming!!
In the REOGoldMiner Overview Video you see REOs being chosen by
State, minimum and maximum price, and the number of deals you
want in your market.
You set the parameters, and let REOGoldMiner do the work for you.
In seconds you instantly have all the deals you want at the price you want.
I was amazed the first time I saw it, a whole list of REO’s where I wanted
them, and at the price I wanted them.
Check it out for yourself...
Your Gold Rush is Coming!!
This is an Exclusive Private Pre-Market Launch.
"REOGoldMiner" will be available on May 20th at Noon Eastern.
Download and watch the complimentary REOGoldMiner "Overview Video"
Don't wait, watch it NOW, this really is worth your time.
Your Gold Rush is coming!!
FL REO and Wholesale Deals
tool. If you didn’t have a chance to check it out, click on the link below
for a look at this new Revolution in REOs.
Your Gold Rush is coming!!
In the REOGoldMiner Overview Video you see REOs being chosen by
State, minimum and maximum price, and the number of deals you
want in your market.
You set the parameters, and let REOGoldMiner do the work for you.
In seconds you instantly have all the deals you want at the price you want.
I was amazed the first time I saw it, a whole list of REO’s where I wanted
them, and at the price I wanted them.
Check it out for yourself...
Your Gold Rush is Coming!!
This is an Exclusive Private Pre-Market Launch.
"REOGoldMiner" will be available on May 20th at Noon Eastern.
Download and watch the complimentary REOGoldMiner "Overview Video"
Don't wait, watch it NOW, this really is worth your time.
Your Gold Rush is coming!!
FL REO and Wholesale Deals
Friday, May 8, 2009
5 Steps to Thinking Big and Living Grand
This is a great article that I wanted to share with you written by Ali Brown, the EzineQueen. Enjoy!
“5 Steps to Thinking Big and Living Grand”
by Ali Brown
I know what it’s like to think that the lifestyle I want is out of reach. Just 10 years ago, I would lie on my bed in my tiny 400-square-foot studio apartment and flip through magazines, wishing I could have the luxurious lifestyles I read about.
Despite that negative, nagging voice in my head that reminded me I could barely afford rent, I’m now living a beautiful life I created for myself from scratch. Instead of moping around an apartment I can barely afford, I now have the means to travel and to inspire others. Last year I took a solo retreat to Maui, and this year I vacationed at an exclusive beach resort in Cabo San Lucas.
How’d I do it? By deciding not to settle for being average and thinking BIG. Changing your mindset can be a challenge, but the rewards are well worth the cost. Here’s how you can get started…
1. Eliminate negativity. This includes negative self-talk, too. Why would the universe bring you a better life if you don’t appreciate what you already have? Show gratitude for everything in your life now. Those seemingly bad days happen for a reason, so whenever you find yourself thinking, “I can’t do this” or “that’s impossible,” reframe it as the opposite. “I can do that, that is possible…” You owe it to yourself to give yourself the love and support you need to succeed.
2. Document your dreams. Earlier this year, I wanted to manifest a new house, so I listed all of the qualities in my dream home: a 3-car garage, workout room, walk-in closets… (Don’t censor yourself! Anything is possible, even if it seems silly now.) I also bought some real estate magazines, cut out pictures of homes I love, and created a collage. I’m constantly updating my “dream board,” which is now proudly displayed in my new house!
3. Surround yourself ONLY with supportive people. I only shared my house dream with friends and family I knew would support my decision. (NOT those prone to phrases like “Are you crazy? Who do you think you are? Ms. Trump?”) Your true friends and family will be happy to share in your dream. If you don’t have anyone else to support you, then it’s time to make new friends – join a networking group or a mastermind.
4. Decide, believe, and watch for clues. It’s not enough to make a decision to work towards your dreams. You must also truly believe in them! Don’t worry about HOW your dreams will manifest themselves. Watch for clues, and the HOW will find you, perhaps in the form of a new business partner or a new client. But remember that the dream comes before the HOW.
5. ACT on opportunities when they appear. Action involves risk. You might have to hire more people to help with a new client. You’ll need time to research that prospective business partner. Or figure out how to hire that amazing new mentor. But it’s up to YOU to take action when the path is revealed. The universe is supporting you, and each step will bring you closer to your dreams.
Online entrepreneur Ali Brown publishes the award-winning ‘Highlights on Marketing & Success’ weekly e-zine with 36,000+ subscribers. If you’re ready to jump-start your marketing, make more money, and have more fun in your small business, get your FREE tips now at www.AliBrown.com
FL REO & Wholesale Properties
Download Your Free Rental Agreement
Tax Lien Investing Secrets
“5 Steps to Thinking Big and Living Grand”
by Ali Brown
I know what it’s like to think that the lifestyle I want is out of reach. Just 10 years ago, I would lie on my bed in my tiny 400-square-foot studio apartment and flip through magazines, wishing I could have the luxurious lifestyles I read about.
Despite that negative, nagging voice in my head that reminded me I could barely afford rent, I’m now living a beautiful life I created for myself from scratch. Instead of moping around an apartment I can barely afford, I now have the means to travel and to inspire others. Last year I took a solo retreat to Maui, and this year I vacationed at an exclusive beach resort in Cabo San Lucas.
How’d I do it? By deciding not to settle for being average and thinking BIG. Changing your mindset can be a challenge, but the rewards are well worth the cost. Here’s how you can get started…
1. Eliminate negativity. This includes negative self-talk, too. Why would the universe bring you a better life if you don’t appreciate what you already have? Show gratitude for everything in your life now. Those seemingly bad days happen for a reason, so whenever you find yourself thinking, “I can’t do this” or “that’s impossible,” reframe it as the opposite. “I can do that, that is possible…” You owe it to yourself to give yourself the love and support you need to succeed.
2. Document your dreams. Earlier this year, I wanted to manifest a new house, so I listed all of the qualities in my dream home: a 3-car garage, workout room, walk-in closets… (Don’t censor yourself! Anything is possible, even if it seems silly now.) I also bought some real estate magazines, cut out pictures of homes I love, and created a collage. I’m constantly updating my “dream board,” which is now proudly displayed in my new house!
3. Surround yourself ONLY with supportive people. I only shared my house dream with friends and family I knew would support my decision. (NOT those prone to phrases like “Are you crazy? Who do you think you are? Ms. Trump?”) Your true friends and family will be happy to share in your dream. If you don’t have anyone else to support you, then it’s time to make new friends – join a networking group or a mastermind.
4. Decide, believe, and watch for clues. It’s not enough to make a decision to work towards your dreams. You must also truly believe in them! Don’t worry about HOW your dreams will manifest themselves. Watch for clues, and the HOW will find you, perhaps in the form of a new business partner or a new client. But remember that the dream comes before the HOW.
5. ACT on opportunities when they appear. Action involves risk. You might have to hire more people to help with a new client. You’ll need time to research that prospective business partner. Or figure out how to hire that amazing new mentor. But it’s up to YOU to take action when the path is revealed. The universe is supporting you, and each step will bring you closer to your dreams.
Online entrepreneur Ali Brown publishes the award-winning ‘Highlights on Marketing & Success’ weekly e-zine with 36,000+ subscribers. If you’re ready to jump-start your marketing, make more money, and have more fun in your small business, get your FREE tips now at www.AliBrown.com
FL REO & Wholesale Properties
Download Your Free Rental Agreement
Tax Lien Investing Secrets
Wednesday, May 6, 2009
Phenomenal New Video on How to Locate REO Properties Lightening Fast
This is the newest, best real estate tool out there.
Click on the video link below to see how the best REO deals can find
you. Truthfully, I know you're going to thank me.
Check it out... REOGoldMiner
The video shows a new amazing tool created at the request of
investors just like you called, "REOGoldMiner" ...a Lightning
Fast system to research, locate, valuate, and deliver to you the
absolute best REO property in what ever market you desire.
You want a list of 3BR 2BA, SFR houses in
Cleveland, OH at twenty five cents on the dollar? You got it!
You want a list of 4BR 3BA, SFR houses in San Diego, CA at forty
cents on the dollar? You got it!
Too good to be true? Think again!!!
I will tell you it's phenomenal and I wish I had thought of it.
But I've had a sneak peak and it's amazing!
REOGoldMiner is fast. It's virtual. It' looks for the exact
deals you want and gives you a list of properties in Seconds. No
more searching REO Websites for hours to find one deal. Now you
can have 100 deals already qualified in the market you want
INSTANTLY!!!
Aren't there a million other things you'd rather be doing than
surfing the net, spending hours, wasting your weekends, time away
from family (and more)...just to cross your fingers and hope you
find a deal to make an offer on???
Download and watch the complimentary
REOGoldMiner "Overview Video"
You'll be glad you did.
Click on the video link below to see how the best REO deals can find
you. Truthfully, I know you're going to thank me.
Check it out... REOGoldMiner
The video shows a new amazing tool created at the request of
investors just like you called, "REOGoldMiner" ...a Lightning
Fast system to research, locate, valuate, and deliver to you the
absolute best REO property in what ever market you desire.
You want a list of 3BR 2BA, SFR houses in
Cleveland, OH at twenty five cents on the dollar? You got it!
You want a list of 4BR 3BA, SFR houses in San Diego, CA at forty
cents on the dollar? You got it!
Too good to be true? Think again!!!
I will tell you it's phenomenal and I wish I had thought of it.
But I've had a sneak peak and it's amazing!
REOGoldMiner is fast. It's virtual. It' looks for the exact
deals you want and gives you a list of properties in Seconds. No
more searching REO Websites for hours to find one deal. Now you
can have 100 deals already qualified in the market you want
INSTANTLY!!!
Aren't there a million other things you'd rather be doing than
surfing the net, spending hours, wasting your weekends, time away
from family (and more)...just to cross your fingers and hope you
find a deal to make an offer on???
Download and watch the complimentary
REOGoldMiner "Overview Video"
You'll be glad you did.
Tuesday, May 5, 2009
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