You might be as surprised as I was when I started doing some research on Reverse Mortgage defaults. See, I was working with one of the attorneys I do some consulting with and he was upset that the mortgage holder of one of his clients that had a reverse mortgage would not do a short sale. I explained to him that they are backed by the Government so they were going to get all of their funds so a short sale was not in their best interest

But he said my client was in default on her loan as she has not paid taxes and insurance in years and was in “technical default”. Here was the reason not to do a short sale. If the bank agreed to the short sale, they would lose the funds they had already paid in taxes etc. But if they foreclosed, the government would cover those losses. So then I googled Reverse Mortgage defaults and there was no shortage of information available. This is the first one I saw, and here is the link so you can read all about it.

HUD Issues Reverse Mortgage Default Guidance

http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-001

According to the Government about 30,000 reverse mortgages (or about 5% of the total) are in technical default.

Florida leads the country in terms of the number of defaults, with nearly 8% of the U.S. total, according to the CredAbility Group, a nonprofit consumer-credit counseling service based in Atlanta

Reverse-mortgage defaults generally have more than doubled during the past two years, as cash-strapped homeowners have fallen behind in paying the insurance, taxes and other household-upkeep expenses required by their loan terms, said Sue Hunt, CredAbility’s director of reverse-mortgage counseling.

This is a major issue for Florida as our property values have plummeted and continue to drop monthly in most areas. As seniors get older, medical bills continue to rise and money may be in short supply. What will they do pay property taxes or buy their prescription or food? This has the potential to be a major issue for the families of parents that have reverse mortgages. Will family members pay back taxes and insurance and deferred maintenance on property that is under water (and may be a home no one wants)? And the final thought: are we willing to put grandma out on the street for not being able to pay her taxes?

Tags: Atlanta, attorney, attorneys, bank, CASH, client, consumer credit counseling, consumer credit counseling service, country, credability, credit, credit counseling service, default, director, Face, family, Florida, food, foreclosed, foreclosure, government, GROUP, home, HOUSE, hud, information, insurance, interest, IRS, loan, maintenance, media advisories, medical bills, money, mortgage, mortgage default, mortgage defaults, mortgage holder, mortgages, nonprofit consumer, number, owner, Permanent, prescription, Property, property taxes, property values, rent, reverse mortgage, reverse mortgages, sale, seniors, short sale, Tax, taxes, U.S., upkeep expenses, value

Here’s the follow up to last month’s newsletter topic about safety for you and your clients when touring a home. A total of 43 people responded with their stories when going to a home. Here are the results:

43 total respondents

5 said they have been help up at gun point (and not one of them was from Detroit!)

3 people at knife point

4 had the client expose themselves

15 said they were approached in a sexually explicit manner that made them very uncomfortable

16 said they were just made to feel very uncomfortable ranging from the client yelling at them or getting a little too close to the client just starting to act ‘weird’.

As you can see you need to make sure you put yourself in the safest possible position you can. And we have an obligation to protect our clients as well. Here are some precautions that I use when I go to see a house.

I drive the neighborhood first to get a feeling as to what is going on. This also gives me a chance to see the back of the subject property in most cases.

I never park in the drive way or in front of the house. I park across  the street with my car positioned so the driver side door is easiest for me to get to. And in a position that it cannot be boxed in.

I also notify 2 people as to where I am going, how long I think I will be and the name of the people I am meeting. I text them a couple of times. And if I forget they text me. We work as a team and when they are out looking at a property they notify me where they will be.

1. I carry a safety tool box in the car. I have an air horn, mace, door stops, and bungee cord as well as other tools I may need.

I always prop open the front door and a back door just in case I need to get out in a hurry, and especially if the house is vacant. I always announce that I am coming into the house. When I’m with people I always try to stay behind them, not them behind me. I want to see what they are doing at all times.

I carry mace in my pocket and a knife just in case I might need them. And in the rare occasion I feel I need it, I take the 9mm out for a ride. Yes if you’re in this business you should have a concealed carry permit.

Remember you’re on your own and need to consider and prepare for things that could go wrong.

Paul

Tags: air horn, back door, business, carry, client, driver, feeling, gun point, home, homes, HOUSE, IRS, knife, knife point, meeting, neighborhood, newsletter, newsletter topic, obligation, park, people, Property, respondents, safety, safety tool, street, Subject, subject property, time, tool box

No one is saying anything about the people that refinanced their homes and took cash out to buy cars, vacations, and flat screens TV’s pay off their credit cards etc. Add that to people buying deals and flipping them and making 50k on them over night because people thought this was going to last forever. And our politicians made money hand over fist as well. GSE guaranteed the loans so the tax payers were on the hook and banks played the game and gave our politicians millions in campaign dollars for the guarantees and to turn the other cheek. Greed was the biggest factor in the housing market. There is plenty of blame to pass around. And as for home loan being refinanced or modified the program was never meant to succeed. It was only red meet for the underwater homeowners and the special interest groups trying to get them approved “it’s all about the money” congress gave them money to do the work” ACORN” and other groups got millions of taxpayer monies. Congress and FDIC agreed to pay banks for their losses so way agree to a modification of a loan.  Now you add the shadow inventory and the market keeps dropping. The only way to turn this around is to get the shadow inventory on the market and let the bottom fall out. Then you can start to get the market on track. But remember GREED is the reason we are in this mess. And every one is guilty of it!!!

Tags: acorn, anything, banks, BUYING, campaign, campaign dollars, CASH, Congres, Congress, credit, FDIC, greed, guarantees, home, homes, Housing, housing market, interest, inventory, loans, modification, money, money congress, owner, people, program, special interest groups, Tax, taxpayer, taxpayer monies, vacation

Most of you know I am big proponent of direct mail.  I recently purchased a list of home owners based on criteria that required the owner to have at least 40% equity in the property. I purchased this list in two zip codes. The results were great:  I have been able to purchase two homes and am doing a joint venture with two more. But now to my issue.

When we go to look at a house, most of us take our own safety for granted, and the home owners do as well. We never really think how things could go wrong. I got a call from a home owner who wanted to sell her house quickly. This was a home she inherited and it was completely furnished. We agreed to meet at the property. When the lady arrived I was already there and waiting for her. This lady is in her mid 60’s and did not know me from Adam, but she let me in to her house without a second thought, AND without asking for any kind of identification or ‘code word’.

Now I am an adorable fat Italian so, of course,  she was safe, but what if I was a dirt ball? She came alone and did not weight more than 110 lbs on a good day. The area was not very visible from the road, and with the wrong person she could have been in real trouble.

We need to do a better job thinking about security: ours and our clients’. Make sure our clients understand that they need to think safety first. Take precautions when agents and other people come to see their house or to do repairs. We need to think of our own personal safety when we go to see a house – do we really know whom we are seeing? Just because we talk to a nice old gent on the phone doesn’t mean that’s who is going to open the door. I believe we need to notify friends or partners where we’re going, how long we will be there, and remember to call when we are going to be late or when we’re finished. I would like to hear what you, the members, think about this issue and what you suggest would be a good safety tip you would like other members to have.  Just send me an email. I will post some of the ideas our members have given us. My E-Mail is paul@pauljdacosta.com

Tags: client, direct mail, e mail, home, HOUSE, INSPECTION, joint venture, pauljdacosta, people, personal safety, personnal safety, phone, police, Property, Real Estate, real estate safety, safety, safety tip, SAFTY, zip codes

Now that it’s April, all our members in the great frozen tundra (aka anywhere North!) are finally seeing grass in their front yards and thinking it’s time to get these properties ready for sale. But before you put that house on the market you better do a little homework.

 All winter long people have been getting daily news flashes on how the market is down, in some areas 20%, since the fourth quarter 2010. They have been told that they could get more for less and all the extras as well. What I am hearing here in Florida from home buyers and Realtors is the home better be perfect and looking good. And that’s the same thing I personally found this winter in dealing with buyers from the north as well from ‘across the pond’. Yes they wanted to see a price reduction but more importantly they wanted the house to look like a palace; everything shiny and new. Fresh paint in and out as well as upgraded landscaping.

One advantage we have in the South is we get people from everywhere for the winter and we learn what people are looking for and can adjust quickly. This winter people were looking for bargains and expected discounts but if they found the right house they purchased. Some cash and some financing but they bought and that’s what’s important.

In our market there are so many homes you’ve got to do something to stand out from the rest. The one thing I’ve noticed is people want you to make it easy for them. I’ve always said it’s smart to have an appraisal and a home inspection done and available as well as all your disclosures. This not only makes it easy for the prospective buyer, but for you as well.

Having an appraisal and inspection on hand shows the buyers you’re serious about selling and you have done a lot of work for them. They can see the appraisal and see exactly why you’re priced as you are. This way you have a negotiating tool in their hands that helps to counter what their Realtor or friends say about the price. A home inspection tells them the house is in tip top shape and any problems have been fixed. Having these two items available helps with the bank appraiser and their inspector. It’s hard for them to devalue and question your numbers when there is another report right in front of them. Now you’re represented even though you’re not there. Keeps people honest. Also if there are issues you can fall back on your reports and have ammunition to protect your price. And I always offer a premium package home warranty with each house.

In one case this winter I had the buyers tell me the reason they choose my house was the inspection reports were already done and they had a good understand of the house before they placed an offer. They were concerned about making an offer then paying for an inspection and not being able to getting all repairs done prior to closing. And they liked the upgraded ceiling fans. See folks, people want everything done for them and if you do it they will pay you for it.

Tags: advantage, ammunition, appraisal, appraiser, bank, bargains, CASH, ceiling, disclosure, disclosures, discount, financing, Florida, fourth quarter, fresh paint, grass, home, home buyers, home inspection, homes, homework, HOUSE, inspector, IRS, landscaping, lot, market, news flashes, palace, premium, price, prospective buyer, Realtor, realtors, report, sale, warranty

Since the Real Estate crash pundits from all over have been saying that the new norm is less home ownership and more people renting. The financial gurus have also started saying there is no financial gain in the long run to home ownership. See what happens when the markets drop: people’s homes go underwater and foreclosures sky rocket.

I want to take a few lines of this newsletter to rehash some of the issues of our present foreclosure market. 1) A large portion of the homes that are being foreclosed were sold to investors with 100% financing. Why do you think the hardest hit states are Florida, Arizona, Nevada and California? Another large portion consists of people who had no business buying homes. They got 100% financing with no credit and no incentive to make payments. 2) Wall Street wanted to make their fees so all they (seemingly) required was that the people be breathing in order to get a loan. They knew the FED would back them when the BS hit the fan.

All that and here we are today with people, and even the President, saying we need to rethink home ownership and the mortgage tax deduction.

I disagree with the premise that a community is no better off with a high ownership rate than one with a low ownership rate. Common sense will tell anyone that this doesn’t ring true. A community depends on stability of its people to thrive and continue to make the quality of life better for everyone. In a community with high rental housing people always come and go. The job market is always in flux because people keep moving. They have no ties to the community. As an example, the house next to me is a rental and in the last 18 months they have had 4 different tenants.

This causes a domino effect. The local schools have trouble keeping teachers because enrollment changes so much from year to year. Vital services such as police and fire are always in flux because of the unstable population. Rental homes are never taken care of like homes that are owned by the people living in them. Yes, I know that’s not always the case but in general you can tell a rental from a home that is owned.

Now don’t get me wrong, I own rental property so I’m not against it. There will always be some people who don’t want to be or are not meant to be home owners and who need someone else to take on that responsibility. Unfortunately, that was part of the problem with the real estate mess we have now. The people in the house never really took ownership; most looked at it as a rental with benefits.

One of the problems I see in the future is that people who only rent will always be paying someone to have a place to live, even as they get older. If this isn’t possible, they may have to move in with the kids. Not a pleasant situation in many cases. As investors we need to figure out the best way to position ourselves to provide a service, and make a living.

As I’m writing this piece I have the TV news on. The anchorwoman is talking about how the housing market is continuing to decline and more people will be going into foreclosure. And isn’t it a shame that all these people are losing their homes and the equity they thought they were going to have at retirement. (Equity that, by the way, was highly inflated, but that wasn’t part of the conversation) Wouldn’t they be better off renting? Next some economist came on and gave all the reasons why it’s better to rent.(I was trying to write them down; I plan on using some of them the next time I talk to a potential tenant, the guy was pretty convincing!)

I believe as investors we can insert ourselves into this conversation and let people know we’re the experts and can help them with their choices. By doing this you can position yourself to make money with renters and people that want to buy. Now you’re the expert in both areas. You’re meeting the needs of people who want to own, but aren’t sure what they need to buy a home in the current economy. And you’re helping people who don’t want the responsibility of home ownership. One thing I would do if you’re going to buy single family rentals is buy them in areas that have high owner occupancy. These homes will have a higher value and will be more desirable rentals.

I found this list of homeownership by countries on the Internet. As you can see the U.S. is not even close to the top of the list. I got this from a Google search so you can get more info if you like.

Showing latest available data.

Rank   Countries    Amount  # 1   Ireland: 83%    # 2   Italy: 78%    = 3   Australia: 69%    = 3   United Kingdom: 69%    = 5   Canada: 67%    = 5   Finland: 67%    = 7   United States: 65%    = 7   Belgium: 65%    = 9   Japan: 60%    = 9   Sweden: 60%    # 11   France: 54%    # 12   Denmark: 53%    # 13   Netherlands: 49%    # 14   Germany: 43%      Weighted average:    

 

Home ownership is still important to the country as a whole. As an investor, though, you need to be in both the rental business and the find, fix, and sell programs. Be pro active and get involved in the market and in the conversation.

 Paul J Da Costa is a Real Estate Consulant.

Can Be Reached at 941-716-2597

E-Mail paul@pauljdacosta.com

www.pauljdacosta.com

Tags: business, BUYING, California, common sense, consulant, country, credit, domino effect, economy, equity, estate crash, financial gain, financial gurus, Florida, foreclosed, foreclosure, foreclosure market, foreclosures, Happen, home, home ownership, homes, HOUSE, Housing, housing market, investor, investors, IRA, job, large portion, local schools, market, money, mortgage, mortgage tax deduction, owner, pauljdacosta, people, Property, quality of life, rate, Real Estate, retirement, single family, sold, Tax, wall street

Ok, I know what you’re thinking: Yeah, Paul, everyone says that every New Year and they go right on doing the same things they did last year. And I would say you’re right on with that and the key is …they keep doing the same thing year after year and expect a different result. According to Albert Einstein, that’s the definition of Insanity! Sound familiar? You might even say this is you?

I work with numerous Realtors and Investors and the one overriding theme I keep hearing is the economy is so bad and there’s no money and no one is buying anything. The only problem with that is it’s not true. Yes, finding financing is harder but homes are being bought with bank financing. Investors are buying homes with investor loans. And Realtors are selling homes! Just check those facts with the National Association of Realtors.

I know one investor in my REIA group who has bought 20 properties this year, fixed them up and sold every one with bank financing. Other investors have bought homes with bank financing with 30% down. I have bought 2 homes in the last 4 months with bank financing.

As for Realtors, I am working with one husband and wife team on their marketing program. They had sold a home to a couple from Philadelphia and within 3 weeks they sold another home to a friend of the first sale. So we put together a 3 step mailer to people in their area along with an 800 number to call for more information. They sent out info on the area and as I am writing this they have sold 6 more houses.

Now they are doing the same marketing plan to the surrounding areas and are getting great results. Other agents I know are marketing to the Midwest about all the great deals in Southwest Florida.

I am working on a multi-level marketing program with web sites and a multi-step marketing campaign to California telling people how great it is in Florida: great weather, no income tax, and some of the most beautiful beaches anywhere. I’m using the same program ‘selling’ the Atlanta area.

I also have 5 education seminars scheduled for myself this year. If you plan on succeeding you must keep learning. How many education events have you already scheduled? You should plan at least one on marketing.

The way I see it, everyone has 2 choices: do the same thing as last year then sit around and complain that all the dark forces are against them, or decide to change their mindset and business plans. 2011 depends more on you than any outside factors. I encourage you to look at the things that worked well for you in 2010 and do it again, and to always look for new opportunities to succeed.

Change the people you hang around with if they are negative and surround yourself with positive forward thinkers.

I am available for one on one coaching and help with your marketing. And I will be doing a couple of master mind programs again this year. Call me at 941-716-2597 for more information.

Good Luck and make 2011 your best year yet!! 

1181 South Sumter Blvd Suite 301                      

North Port, Florida 34287                                                          

941-716-2597                                                                            

Paul J Da Costa

Is a licensed Realtor in Georgia. He is a Real Estate investor, educator, and national speaker.

Paul is available for select speaking engagements and can be reached at 941-716-2597

www.pauljdacosta.com

paul@pauljdacosta.com

Tags: agent, albert einstein, Association, Atlanta, atlanta area, bank, bank financing, beaches, business, BUYING, California, coach, coaching, cost, courage, deal, definition of insanity, economy, education, educator, Florida, Georgia, GOOD, great deals, hearing, home, homes, HOUSE, houses, husband and wife, income, income tax, information, Insanity, investor, investor loans, investors, IRS, Licensed, loans, market, marketing, marketing campaign, marketing plan, marketing program, master mind, midwest, money, multi level marketing, National, national association of realtors, national speaker, new year, pauljdacosta, people, Philadelphia, Port, problem, real, Real Estate, real estate investor, Realtor, realtors, REIA, rent, sale, sellingâ, site, sold, South Sumter, southwest florida, Tax, weather

I recently found myself talking to a number of people who came to this country and became successful.

I’ve also spent some time with people who were born in America and who tell me that they can’t make it because there are no opportunities here anymore.

I find that hard to believe because I truly know in my heart that America is the only country where opportunities abound. The question you need to ask yourself is how willing are you to work for them.

Recently I was in Baltimore, Maryland. The driver who took us to our motel and a few other places is here from Ethiopia. He was telling us that he came to America seven years ago because he wanted a better life for himself and his family. He mentioned he was from a village where there were no cars. Villagers walk everywhere; the closest phone was 27 miles away. He laughed when he told us he had never even heard a car engine in his village.

He said he was one of the lucky ones because he got a visa, via lottery, to come to this country. He came by himself, left his family behind, not knowing the language, not knowing anything about America other than what he’d been told. Now here’s the most important part: seven years later he now owns the fleet of vehicles that runs 24/7, driving people around Baltimore, Washington and New York. I don’t want you to think he’s living in a hovel and eating beans at every meal to do this. I’ve noticed his thousand dollar suits! He says the best thing that’s ever happened to him was coming to America. He’s still concerned with his language (which is nearly perfect); he takes classes nightly at the local college to learn to read and write English. I just have to ask: if this gentleman can come to this country with no language skills, no driving ability at all, and within seven years own a fleet of automobiles and employ seven full-time drivers, how on God’s green earth can someone born in this country with all its advantages have  the audacity to say they can’t make it in America?!  America is not the place for the future? Says who??

I believe too many Americans have convinced themselves that they are victims and that someone owes them something. Too many people believe they’ve been wronged (somehow). The Government has helped propagate this fallacy by putting more and more people on government programs and telling them “your lot in life is not your fault, you’re not responsible, somebody else did this to you and we’re here to help you get them back”.

It’s not only people on the government dole who think this way. Just recently I was speaking to a friend of mine who commented that the American dream is over; we will be no better than a third world country within one generation. When I asked him why he felt that, his answer was amazing. He said there are no opportunities left in America between the government taxes and greedy corporations. The average man or woman doesn’t stand a chance and your best bet in life is to hope that you can have a place to live, a few dollars in your pocket and food on the table and wait for the government to help you when you need it. I was absolutely amazed with this defeatist attitude. I asked him why he felt he was such a victim and that his life was so miserable, (while we sat out on his back porch looking at the pool, drinking a cold one and looking at brochures of places he was thinking about for his family vacation.) He said he didn’t see his business going on for much longer and didn’t see America going on for much longer because too many people are depending on the government and the government is taking too many liberties when it comes to taxes and government regulation.

My friend sees America moving into second world status, like Europe, where people have a job, a little house, and depend on the government for everything ‘from the womb to the tomb’. Well, one thing for sure is that America was not born on government mentality, and government is not what has made this the greatest country in the world. America is not a victim country; America is the country where anyone can have a good life, money and freedom.

If you just look at these two examples, you can see where the problem lies. On the one hand are people who know they need to work to be successful, and who look for any opportunity. And on the other are people who believe the myth that they are victims of the economy, the corporate giants, Wall Street or whomever, and that only the government can help them now. Our founding fathers would be disgusted to hear these people call themselves Americans. Until people start taking responsibility for their own actions, for their own lives and for their own circumstances in life, this country will continue to have uncontrolled budget deficits, 10%+ unemployment, jobs going overseas, government spending with no results, and more and more people feeling that they cannot make it. Wake up, America!

Paul J Da Costa

Is a licensed Realtor in Georgia. He is a Real Estate investor, educator, and national speaker.

Paul is available for select speaking engagements and can be reached at 941-716-2597

www.pauljdacosta.com                                                      paul@pauljdacosta.com

 

 

Tags:  America, advantage, America, audacity, automobiles, Baltimore, baltimore maryland, baltimore washington, business, coming to america, cost, country, economy, employment, Ethiopia, Europe, fleet, food, freedom, full time, generation, gentleman, Georgia, government, green earth, heart, home, HOUSE, language, Licensed, local college, lottery, Maryland, mentality, New York, opportunity, people, Real Estate, real estate investor, Realtor, regulation, Tax, taxes, time, vacation, wall street

This weekend I held another “Real Estate For The Next Decade” education day in Atlanta. We had a packed house of Realtors and investors. Guest speakers included experts in Real Estate Law, Taxation, and using self directed IRA’s in Real Estate. We also heard from a mortgage specialist from Bank Of America talking about the FHA Rehab loan. I spent time on exit strategies and my Three Tier System on property location, as well as on marketing.

All the attendees agreed that the information definitely pertained to their business, and said they really wanted to start using it. But the overriding complaint from the members was, “I’m so tired now and don’t have time to do things I need to do, how on earth can I do this stuff as well??” After hearing about 10 people say the same thing I knew too many of them were working in their business and not on it.

So I started asking the group some questions and we (speakers) were all were surprised at how many of these people were doing everything in their business. To give you an example: out of 32 Real Estate investors only 2 were using a property management company. The biggest concern for the rest was the cost of using a company, and of having someone other than themselves or their own people handle the repairs. I explained to the group that those costs were minimal if you just consider the costs involved in answering all those phone calls about exploding toilets or broken windows, then doing the repair job yourself. This is working in your business. I asked how many people needed money to buy more homes. They all raised their hands. Well, you can’t raise money if you’re fixing toilets. Raising money is working on your business.

Let’s handle the issues of cost.  All said the property managers’ fees were too high. Most property managers charge 8% of the rent so if you have a rent at $ 650 their fee is $ 52.00. This is nothing in the big picture of your business. They handle all the calls and the issues with tenants who don’t pay. You can negotiate that they also handle all evictions at their cost, and I do this. If you’re doing it, how much does it cost you in hard cash, not to mention your time and that’s worth a lot. And in most states you have to go in front of a judge. They look at property managers as just doing their job but an investor is seen as just a greedy slumlord trying to throw this poor person out just because they did not pay rent. Some get all self righteous and benevolent, and tell the tenant they can have 60 days to move out and there’s nothing you as the corrupt landlord can do about it. Yep, they do it and you know it’s true. So now did you save yourself any money?  Nope, just gave yourself more aggravation. And how can you take time to go to court if you have to answer the phone all the time?

Most of the investors thought you must use the property management fee schedule or else. I explained that’s not true and you can set your fees by the number of properties they handle for you. Also if you use a handy man you can have the property manager call that person first. In case of emergencies if your guy doesn’t answer then they can call their guy.

Some of the Realtors felt they could not work any harder and adding more would send them over the top. Their biggest hurdle was paperwork. They said they spent hours for each listing and sale. I then asked if they had someone in their office whom they could pay to handle that for them. Most said yes but did not want to pay the $ 295.00 fee. I asked them how much was their time worth per hour and what the value of a customer was. None could answer these questions. I also asked them if they had to pay the person up front or when the property sells? They all said when it sells. With this information we figured out an option where they might work a deal with the person for a professional discount, if they gave this person all their business. And if they don’t have to pay until the property closes it won’t affect the cash flow now. How many more listings or sales could they get if they were working on their business not in it?

And the last thing that was a complete surprise to me: most do their own taxes! I was stunned! One investor had 30 houses and does his own taxes because he said his accountant charges $ 1000.00 to do them and he thought that was outrageous. I was laughing because I thought he was too cheap! Imagine having 30 rentals with all those deductions and IRS tax laws and loopholes. He’s complaining about a $ 1000.00:  GOD help him if he gets audited!  Folks, there are many things you can skimp on. But for your business to be successful you have to do what you do best- work ON it, not IN it. There are many people who can handle paperwork, reception duties, repair duties, taxes. But only YOU know what it takes to make YOUR business go where you want it.

  1181 South Sumter Blvd Suite 301                       695 Mansell Road – Suite 120

                North Port, Florida 34287                                                           Roswell, GA  30076

                 941-716-2597                                                                             678-287-4800

 Paul J Da Costa

Is a licensed Realtor in Georgia. He is a Real Estate investor, educator, and national speaker.

Paul is available for select speaking engagements and can be reached at 941-716-2597

www.pauljdacosta.com

 

Tags: accountant, America, Atlanta, attendees, bank, bank of america, big picture, broken windows, business, CASH, cost, customer, deal, Decade, discount, education, example, exit, exit strategies, fha, Georgia, GROUP, guest speakers, hearing, home, HOUSE, houses, information, investor, investors, IRA, IRAâ, IRS, job, judge, landlord, Law, Letâ, Licensed, Management, manager, market, marketing, money, mortgage, mortgage specialist, national speaker, next decade, people, person, phone calls, professional, Property, property location, property management company, property managers, raising money, rate, real, Real Estate, real estate investor, real estate investors, Realtor, realtors, rehab, rehab loan, rent, rental, repair, repair job, sale, self directed ira, slumlord, Tax, taxation, taxes, tier system, time, toilets, value

Last week at both of my REIA meetings members were asking how to figure the value of a piece of property when the comps are all over the place. And how to advertise in this market; just putting signs out is not working like it used to.

Since this is really two different questions let’s tackle them one at a time.

Let’s start with marketing your properties first. Some cities and counties have made it their life’s work to take down our signs as soon as we put them up. In my areas the ‘sign police’ have full time people trying to catch you in the act so they can ask you for a donation to the city bank account.

I’ve come up with something that works for me. I go to private property owners and ask if I can place my signs on their property. I offer to pay them with a $5.00 Starbucks gift certificate if they let me put my sign up. This way I avoid the sign police and I get traffic to my houses. I have other ideas but that will be for another post. Now the big issue: COMPS

Well this is the million dollar question. If I could be right on this one 100% of the time I would be on the Forbes 400 list. The biggest problem is that with all the foreclosed properties you can’t figure out what the real value is. Here’s how I handle it.

First, I look at all the foreclosed properties and figure out which ones need repairs and which ones are in good shape. I get this from the MLS or Realtor .com site. This helps me separate fact from fiction and I get a good idea as to what’s happing in my area. Next, I see how many of those homes are back on the market, under repair or being rented out. Then I get the Sold’s in that area that were not distressed. (Sometimes none were sold that were not distressed). I also try to get rental comps as well; this will help me determine price to some extent. I then get a full appraisal done because this will help get a better picture of value from a third party. All these little things help to put a value on your property, and give you credibility when someone from the lender’s office or tax office asks where you got your numbers. But remember, in the end the value of your property is only what someone is willing to pay for it.

Paul J Da Costa

Has been a Real estate Investor for many years. He is a licensed Realtor in Georgia with Keller Williams Realty Consultants.

Paul can be reached by E-Mail  at paul@pauljdacosta.com

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