Morris Massre

There are currently 107 active single family listings in Pembroke Falls, with the lowest priced, unfortunately, at $240K. This is a far cry from the norm and what transpired just a couple of years ago, but it will give you a very good indication of the direction this community is going. There was once a time when a buyer could not even think of purchasing in here for under $300K. I am hopeful, however, that this trend will not get any worse. I have lived here for over 11 years now and have seen the best and the worse. I have also seen realtors come and go. Those who come in like gold diggers during a big find are usually the first to go. And they are also the ones who like to call themselves "specialists" in the area. Most don't even live here. Never mind that. A specialist should be required to live in the neighborhood they market. It only makes sense. Otherwise, they are just "knowledgeable" about the neighborhood. I still think, however, that if you can hang in there, this is a very good neighborhood to lease in. So hang in there.

I think that everyone should know by now that just hiring a realtor for a short sale is not enough these days. And I recommend staying away from all of the so called "processors" out there who charge a flat, up front fee for their services. Essentially, they are not doing anything I couldn't do. On the contrary, it limits me as agent with control over the transaction.

However, it's always a good idea to have a good real estate attorney in your corner when tackling the problems of a short sale or foreclosure. He can certainly stall the process and make sure you do not get a raw deal. It's worth the money to retain one and if you're an investor, the fees are tax deductable anyway. Especially here in South Florida where fraud is absolutely rampant.

If anyone knocks on your door or advertises something too good to be true when it comes to getting rid of your property, it probably is. Remember, the old ads for companies that will sell your house without a commission? Oh yeah, but there is a flat, up front fee of thousands of dollars you have to pay. But there is no commission!! Boy, how misleading.

The bottom line is this, if you are willing to pay a lawyer to buy or sell during normal circumstances, you should be willilng to do the same in the event of disaster. Perhaps more so.

In today's tough market it's important to differentiate between those homeowners who are investors and those who are primaries. The primaries who need to sell are going to be subject to all the pitfalls of the downward spiraling real estate market, which means they have no choice but to price competitively with the short sales, etc., be open to paying above the standard commission, and above all, learn that patience is a virtue. With the right agent all of these goals can be achieved.

Investors, on the other hand, are really in a bind because most are in ridiculous mortgage situations and have gotten greedy in terms in asking price for rent. You can never, I repeat, never, recoup all of your mortgage, maintenace, taxes, etc. expenses via the leasing route unless you own the place outright. The old 10% rule does not apply either as home prices are way too high to begin with. How can you justify charging a renter $2K a month rent for a home that cost you $200K? It just doesn't work because most homes in the Pembroke Pines area are a lot more than $200K. As a matter of fact, most are way over $300K, which means you would have to charge $3K a month in rent to meet the requirement. So what is the solution, either to cut your losses and go short sale or continue to rent at a reasonable price for the duration of this down turn and then try selling when prices start to rise. Those who are new to the whole investor thing are usually the sellers who turn to the short sale route because they cannot handle the loss, meaning the difference between the rent coming in and the payments going out. That is why novices should stick to whatever they do best or hire a capable agent who is guiding them correctly instead of looking out for their own best interests. The seasoned investor can afford to stick it out. Therefore, they should go ahead and continue renting, which is nothing more than buying time essentially. However, take full advantage of the tax benefits that go along with being a landlord. At this point the property is not a liability, but rather a tremendous tax sheltor because just about everything is tax deductable. Everyone should have some kind of real estate investment to counter their income taxes.

If you go short sale, god help you. It's probably the most agravating real estate transaction anyone will ever go through and is very mentally taxing, but that doesn't mean it doesn't work. With the right agent who is experienced in the field and the help of a competant lawyer a seller can get out of the situation relatively unscathed. The problem is that most investors got in with the coaxing of an agent who was just looking to pad his sales or because they heard from a friend that they needed to buy in a particular place because they did and made a killing. In most cases, the friend neglected to tell you all the details and risks involved. It's no different than buying stock. Nothing is guaranteed.

That is why I say suck it up if you can and rent for as long as deemed necessary. In the Pembroke Pines area, including Pembroke Falls where I farm and have been living for over 10 years, this is easy to do. The rental market is booming and renters know and are willing to pay the price necessary to live there. The key is not to gouge. Just because you know there is a market for rentals and people are familiar with the pricing doesn't mean you can stick any number out there. Your best bet is to price accordingly, and to do that, list the property with an agent who specializes in rentals, has a good track history, provides references from previous customers, and can also provide a resume. Sounds like a lot for a rental, but in the grand scheme of things it's the smart thing to do. You first question when interviewing an agent should never be "how much will you charge," or " are you bi-lingual," but rather, "what are you going to do to get my property rented" and "what qualifications do you possess." Unfortunately, most landlords concern themselves only with price. Operate that way and you are in for a world of hurt. Remember, you get what you pay for. My neighbor in Pembroke Falls was asking over $3K for a four bed. house and it sat on the market for almost a year, when he could have asked a reasonable $2400. and gotten it rented in a couple of weeks. That greed translates into a loss so huge that even I have trouble coming to grips with it. Yes, I know, anyone can lower a price, but it still takes connections and proper marketing to finish the job and that is where I come in.

Once I get a property rented, and I don't care what kind of property, I continue to keep in touch throughout the year with both clients so that when the lease expires we can move on to the next step, which is either renewal, new listing, or sale. So, you see, with this strategy in mind, one property can really turn into a gold mine of continuous income and in the same instance, create a great customer base of which referrals become routine. So, to wrap this up, hang in there and rent and take advantage of the tax system. You can always refi if you still can't make up the difference. There is always hope for a way out, so don't panic.