NYC Short Sale Expert

Those that think security lies in the safe hands of retirement and social security benefits are in for a rude awakening. When thinking of investment the first thing that comes to mind is money: stocks, cds, etc. However, with the economy still recuperating from the recession, those investments wouldn’t be considered the smartest choices right now.

Real estate investment has remained, for those that are current with mortgages and able to invest, the most profitable investment through the recession. With the unfortunate increase of job loss through these last years in this economic struggle, foreclosure has escalated at a frightening and almost irreversible height. For homeowners in a position where they are laid off or are struck with an econimic crisis, payments may seem overwhelming to the point where continuing to own the property is hurting rather than helping their investment. However, the opportunity for those that are able to invest in property, become a landlord or rehabber, or invest in short sales as I have over the years, and particularly in a time where costs are so low, is NOW!

The best part of real estate investment  is as long as the home and residential area continue to improve the asset will not decrease, regardless of the real estate market. Preserving and renovating, yes costs money, however the pay off in the end will be much greater, when your property is ready to sell, and well over the market value.

As previously mentioned, becoming a landlord can help further your investment. Rent can be used as an extra source of income towards mortgage, property taxes, and maintenance/renovation of the property. Being selective, such as requesting no pets or non smokers can also make or break your property.

If a person is able to maintain the payments on a mortgage, property investment can also serve as a credit build up. Making payments on time help to build equity making it easier to get future loans.

Investing in real estate is all about making the right choices: location, maintenance and bona fide tenants. These are all factors that will play a role in appreciating rather than depreciating the value of your property, whether it be your home, somebody else’s home, or commercial property.

Sometimes making the right choice may need a bit of guidance, so be sure to be thorough in your research. Check out the property and make sure to always have an inspector approve it before any purchase is made.

I found some helpful tips while browsing Biggerpockets.com to help sell your wholesale deal, when selling almost feels impossible.

According to Stephani Davis:

• Price Too High: While this might seem obvious to some, it is a factor that is overlooked by many new wholesalers. While I’ll admit that I’ve seen some properties that I don’t think I could move even if I was giving them away, in most instances you can get rid of a property quickly by simply lowering the price. How far you will need to lower it will depend on what the active investors in your market are willing to pay, and this is something that should be learned before you start putting properties under contract.

• Marketing Your Deal:

If your property is priced right and it’s not selling, chances are, you haven’t done a good job of getting the word out about it. Once you get a deal under contract, your job as a wholesaler is to market the living crap out of it! If you’re serious about getting it sold, you should be doing everything on the following list (at the minimum) to find an end buyer:

*Send the deal to your buyers list (if you have one)
*Put ads up on the online classified sites every day
*Place signs around the property
*Pass out flyers at any REIA meetings in your area
*Contact other wholesalers about the deal to see if they will help you market it
*Call every For Rent sign in the area and see if the landlords would be interested in your deal

If after doing all of the above you still haven’t found an end buyer, chances are that it’s priced too high!

• Location, Location, Location: If your deal is located on a busy street, across from the neighborhood liquor store, or right next door to a cemetery or the railroad tracks, chances are you’re going to have a much harder time getting rid of it. This is something that you need to take into consideration when you’re running your numbers and formulating your offer. While it may seem like a great deal on paper, if the property is in a crappy location it’s going to decrease your chances of finding an end buyer for it.

• Major Repairs: While there are some rehabbers who have no problem tackling major projects, keep in mind that your pool of buyers will be much smaller if the rehab needed for your deal is an enormous undertaking. Just to give you an example- in my market (Tampa, FL), sinkholes are a common occurrence, and even though you can score some huge discounts on sinkhole properties, the number of investors who are willing to take on that type of project is very small.

• Funky or chopped up floor plans: Unfortunately, not every homeowner has the sense to hire a competent professional to do their remodeling for them, and instead elect to take matters into their own hands. The results, while often comical, can result in major problems when it comes time to resell the property. If, for example, you have to walk through four bedrooms to get to the one bathroom in the house, or if the kitchen has been relocated to the master bedroom (I’ve actually witnessed this), you’re going to have a much more difficult time finding an end buyer to take down the deal.

All of the points Stephani bringst up are very important to consider when selling any property, and should be considered before making any deals, but also keeping in mind that buyers are out seeking property in all kinds of markets. This information is extremely helpful and I believe is important to share with my fellow Wholesalers.

According to real estate analyst John Burns, the best time to purchase property is NOW! While affordability has been consistently increasing in the last two years, it is now at the highest it’s been in the last 30 years. Burns believes the housing market is in the beginning stages of recovery and downside risk is very low. Burns also believes the market is approaching its next up cycle.

As mentioned in Nuwire.com: Three factors needed for such a transition include demand, supply and investment. With job demand strengthening, slowly but surely, so are renters acknowledging the benefits in buying, and although new home construction is at an all-time low, so are the mortgage rates and home prices making this a perfect time to invest in property.

As of July 2010, “only boxes that can be checked…are low mortgage rates and affordable homes,” the firm said today, adding that job growth is key to pushing recovery in the housing market forward.

Wednesday June 16th, the Senate approved the proposal to give homebuyers a 3 month extension to finish qualifying for tax incentives that boosted homesales this spring.

According to the Associated Press: The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

Most in favor of the proposal (60-37) will only allow homebuyers that have already signed contracts to finish at the later date.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

“If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts,” the Realtors said a a letter to lawmakers.

The bill (HR 4213) still has to be voted on by the Senate and House, then signed by the President into law.

This is great news to me and a lot of the homebuyers I am currently working with, so make sure to check with your tax advisors for qualification.

Pam Liebman, CEO of the Corcoran Group, answers a reporter's questions during the Reuters Global Real Estate and Infrastructure Summit in New York June 14, 2010. Credit: Reuters/Keith Bedford

The time has come to get in gear and push real estate back on its feet.  With economics slightly progressing, lenders are now giving more Real Estate to push. Quoting Pam Liebman chief executive of the Corcoran Group, “They seem like they’re much more aggressive now. They’re starting to really take things into hand, calling up and saying, ‘What’s the real number? How can we get this sold?’ They want to step in. They want to get it done.”

According to Reuters: Financial institutions that have lent money to real estate investors are starting to loosen their hold on these properties, potentially putting more real estate into play, real estate insiders said this week.

Multifamily real estate is an area where [it's] happening, with relatively strong demand and banks more willing to move properties off their books, one top executive said at the Reuters Global Real Estate and Infrastructure Summit in New York.

Realistically, people are holding onto more appealing property, waiting for Real Estate to restore itself to the high peak it once shined on.

Richard LeFrak, chief executive of the LeFrak Organization, a commercial real estate developer, said that overall banks are still largely sitting on the assets when they can. “They’re waiting for their capital to get more robust before they have to write these things down. And if you could pay any kind of interest, they can play with you,” LeFrak said. “I think that some of the European banks are under a little more pressure now to raise cash, and that they may be forcing things where they are participating in some loans.”

NYC Short Sale Expert blog is dedicated to giving real estate investor’s, primarily in the New York area, current economic trends and the latest information on the real estate market. We will post real estate articles and receive commentary by real estate investors, agents, bloggers and industry professionals.

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Sabrina is a full time real estate investor from New York City. She has been in involved in pre foreclosure and short sale transactions for over the past 5 years. She is the Managing Partner and Founder of SKL Properties of NY, LLC.