Does that 50 cents have to be on the HUD?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I just love final walkthroughs! Why is it that Buyers and their Realtors sometimes try to spoil the elated feeling I get, knowing that we finally made it to day of closing?

I get the call this morning, telling me they did the walkthrough and everything is OK, except for the hole in the living room wall. What? A hole? How can that be? I was just in the house last week and it was fine. No holes! I don’t want to hear about holes two hours before closing. I mean the house is vacant. No one has been in the house but the appraiser. Then they spring the big one on me. “What’s the Seller going to do about it?”

Personally, I think that’s a pretty good question. “What’s the Seller going to do about it?” Well, my answer is “I don’t know”. I am still trying to digest the fact that there is hole in the living room wall. Well I got lucky, the other Realtor had a call beeping in on him and decided to take it and call me back.

So, I get myself out of bed (not sleeping mind you, but diligently “working” on reading all the ActiveRain posts from last night), anyway, I get myself out of bed, hop in my SUV and burn $10.00 worth of gas to go check out the hole in the living room wall. Now I’m a pretty observant guy and would probably notice a hole in the living room wall, but I don’t. No hole. Well, maybe they meant the family room. So I go look and again, no hole. Wait a minute, what’s that? Let me see, if I get down on my knees and squint just right I can see a tiny indentation in the wall about the size of my pinky fingernail. This my friends must be the culprit. The all elusive hole!

I call the Realtor back and tell him I have been at the house to look at the “hole” and asked him if he had actually seen it, or did he just allow the Buyers to go over by themselves to do the walkthrough? Do I need to even tell you his response? Of course he hadn’t seen it! It was too far for him drive to so he just gave the buyers the code so they could do their own walkthrough! The Buyers told him there was a hole in the wall, and asked, “What was the Seller going to do about it”. Anyway, I remained calm and politely told him to show the Buyers the definition of “hole” in the dictionary and that we would give them compensation of 50 cents. After all that, the Realtor told me to not worry about it, that he would take care of the Buyers.

I tell you, you got to love this business. The things people try to get away with. And the Realtor……….well that’s good material for another post.

The Moral is: Never, ever, take the other party’s, to a transaction, word on anything. Check, double check and check again. Look out for your own customer’s or client’s interest or that “hole” may be in your wallet.

By the way………..Does that 50 cents have to be on the HUD?

Got cash? Want house? Does a 10% return do anything for ya?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Yikes!!!

Want to be a landlord? If you answered “yes” then my next questions is …Why? Why deal with collecting rents and tenant issues. Why let property taxes, insurance, management fees and repair costs cut into your money?

Here’s another option that some of my Investors have been doing. Instead of becoming Landlords they are becoming Lenders. Owner financing is making a come back. It’s difficult for folks to get mortgages right now and offering financing can make the property worth more money.

For example: We can find you really good rental properties right now for $90,000 to $100,000. These homes would normally rent for about $1,000 a month. After expenses your NET is roughly $600 a month.

Instead…offer the property for sale at $120,000 with $25,000 down, no qualifying mortgage of $95,000 @ 8.75 amortized over 30 years with a 5 year balloon payment.

You would receive roughly $16,000 at closing (25K minus selling expenses including commission). Monthly payments of $747 for 60 months. The buyer would be responsible for all taxes, insurance and repairs. You would have zero expenses.

After 5 years the Buyers would have a balloon payment to you of $91,000. You would have already received $45,000 in payments. Therefore your total money received would be:

At closing         $  16,000
Payments         $  45,000
Balloon             $  91,000
                       —————-
Sub total          $ 152,000
COST(BASIS)   (  100,000)
                       ========
GAIN                $  52,000***
                       ========
52% return over 5 years. Or a little over 10% per year. It works out better than a rental with less hassle. Of course you would miss out on any future appreciation (if any) unless of course the buyer defaulted and you got the property back through foreclosure (not a bad deal). So as you can see this can be a very good way to go. If you’re interested….just complete this form and we’ll get right back with you.

 

***Please check with your accountant about tax issues.

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Real Estate is about people, not money!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Yesterday, I did a Blog post that contained a comment about another Realtor, giving the code to my lock box to a buyer so the buyer could do his own final walkthrough. I received quite a few comments about reporting the Realtor to his Broker or filing an Ethics complaint. Let me explain, why I didn't take those steps, even though, I agree, what the Realtor did was wrong.

First, I list homes "For Sale". That's what I do. I rarely work with buyers. Therefore, my business depends on other Realtors showing and selling my listings. With that in mind, my business plan has always been to "market" my listings to other Realtors and to give them as much incentive as I can to want to show my listings. My reputation with Realtors is how I make my living. My listings get showings, because over the years, Realtors have learned that they can trust that properties will be priced right, clean and easy to show. No surprises.

The Realtor, in question, had actually done a pretty good job up to the point of giving out my lock box code. I had a discussion with him about this and it will not happen again. I complemented him on the good job he did in getting the deal closed and hope to have many more deals with him in the future. Would this had turned out this way if I reported him to his Broker or filed an Ethics complaint against him? No. Absolutely not. He would never had showed my listings again and my future Sellers would suffer because of that.

So, here is a short list of the things I do to ensure that my listings are getting shown. Not only shown, but shown constantly by other Realtors.

My listings are:

1. Priced right, always. I am an expert on pricing.

2. Clean. Very clean.

3. Easy to show. No appointment necessary and always on a lock box.

4. Positioned properly in the MLS. This is achieved by "Range Pricing."

Realtors can count on me to:

1. Answer the phone. If not, return their call quickly. 8-8 seven days a week.

2. Always be professional.

3. Never loose my cool. Ever.

4. Negotiate the deal without voicing my opinion. It's the Seller's deal not mine.

5. Assist them in anyway I can to get the deal closed.

6. Take the time to help them if they are new to the business.

7. Discuss issues with them upfront and not in a confrontational manner.

8. Always be honest.

9. Always stay focused on the end result, getting my Seller a check.

10. Thank them for a job well done and let them know I really appreciate them showing and selling my listing.

Now, doesn't all this sound better than filing an Ethic's complaint or "telling on them" to their Broker? My Grandmother was the most loving, most generous, most caring and most honest person I have ever known. If I did anything less than this she would look down from heaven and shake her stick at me. I would never want that to happen.

So remember, treat your fellow Realtors with respect. Help them if necessary. Be patient with "newbies", we were all one once. And most important, never forget…………Real Estate is about people, not money!

I’m not racist but…………………

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Do these words make you cringe? Do you just want to leave before they go any further? The best way to tell a racist is when they say “I’m not a racist but……”.

Meeting with potential customers on a regular basis it doesn’t surprise me when I hear this but it does surprise me how often I hear it and who’s saying it. As Realtors we cannot go there! We must nip this conversation in the bud before it goes any further. There is a little law called the Fair Housing Act that we must abide by. How do we do this? How do we continue to work with this person? Do we just ignore it and move forward? Do we lay the law down?

I must admit that this always places me in an awkward position. I usually move forward at the speed of light then ignore it but I can never seem to forget it. It changes my relationship with that person. My dream is that someday we will learn to appreciate people for who they are not despise them for the color of their skin. I live in the great State of Florida and one of the best things about Florida is that it’s very multicultural. I wish all people would see it that way.

I’m not racist but…………..I do have a vision.

 

….and you want it to be less than 7 years old with over 1500 sq ft of living area. Maybe this will help:

Based on current market statistics, properties similar to the ones you are requesting are selling for $35 to $37 per sq ft living and 110% of the asking price. In order to stay under $60,000 you need to focus on properties with 1700 sq ft or less. 185 Conch and 1966 Michigan both fit.

The stats that are below show that since 10/1/2009 there have been  29 sales. There are 21 pendings and only 9 actives in this price range. I eliminated the short sales and the properties that are priced too low (based on market data) and that left the 2 properties mentioned above.

The average days on market are 23 and that of course includes the time it takes to get bank addenda signed. This tells me most are selling quickly and with multiple offers.

CMA 60-

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.