MANNY MENEZES,e-PRO Certified-Broker Associate

I recently came back from a short 3 day stay in Florida. I decided to take this trip due to my curiosity about the current real estate market down in Florida and came back with tons of information. I initially expected to head down there to look at some lower priced Bank Owned properties for both myself and for some investors that I work with up here in the Northeast, but found myself in awe at the prices of New Construction in Pasco and Hernando Counties (just outside of Tampa). What amazed me was that someone can purchase a 1500-1800 sqft home with 3 or 4 Bedrooms, 2 Bathrooms, and a 2 Car Garage in a brand new community for less than $130,000. I realize that Florida has been hit particularly hard with the recession, but my advise to people is that if you have the opportunity to purchase one of these new homes, GO FOR IT! Once you add in the $8,000 FTB Credit and the fact that most builders are paying closing costs, it is a no brainer. If you are looking a for a second home and have the ability to purchase something now, then you should also GO FOR IT! You will be making a solid investment decision and you can enjoy the Florida Sun whenever you want to. Please keep in mind that I am not a Licensed REALTOR in Florida and am purely speaking from someone who is EXCITED about real estate and can see a great opportunity to invest in the Sunshine State. If you would like further information on the opportunities that I discovered in Florida, please feel free to email me or call me at 401-396-3027.

Manny

Bank Owned Properties are everywhere. Some of you may be intrigued by the idea of purchasing one of these properties at a significant savings. There are a few things you should know about bank owned properties before you start your search.

1. These properties most likely need work.- Most of these properties have been sitting vacant for at least a few months and will require at least some kind of work prior to moving in. While it is possible to find a Bank Owned property that does not need too much, please be aware that most of the properties you will see are in need of significant work.

2. It may be tough to get financing for some of these properties. - This is the issue that becomes a bit of a problem if you have found a bank owned property that fits your needs but may need a little more than cosmetic repair. As I had stated above, most of these bank owned properties will need significant work. If you are planning on financing this home, your best bet is to check with your mortgage broker as well as your REALTOR to find out what type of programs are available for these rehab type properties. Many states including RI, have programs specifically made for the purchase of distressed properties and you may even be able to finance the repair costs in your mortgage payment.

3. You are buying AS IS. -This is basically self explanatory but you are truly buying AS IS. Typically, there are no property disclosures available for Lender Owned properties which means that you really do not know the history on your new property. Ask your REALTOR to look back into the MLS transaction history for that property to see if there is any information regarding the condition of the property from a past sale. While this will not give you the history, you may get some important information that will help you in the decision making process.

4. Patience is a virtue. -This is something my mother preached to me while growing up but I never realized what it meant until I started dealing with Bank Owned and Short Sale properties. When you are interested in purchasing a distressed property (bank owned or short sale) your REALTOR will most likely tell you to be Patient after writing the offer. It is not uncommon to wait a couple of weeks (or more for a short sale property) to hear back from the bank as to if your offer has been accepted. Please keep in mind that there are probably other offers on the table as well and the bank is looking for the cleanest deal for the most amount of money.

5. But I offered more than someone else. - As I mentioned above, the bank is going to want the cleanest deal for the most amount of money. You may get into the situation where you actually offer more than someone else for a particular property but the bank does not accept your offer. This happens all the time and is usually due to the contingencies on your offer. For example, you offer $100k for a property that is bank owned and the offer is subject to you getting a mortgage on said property and subject to a satisfactory home inspection. Another buyer may offer 90k for the same property but is either putting more money down or paying cash and has waived his/her right to conduct a home inspection. The Bank (seller) may take the 90k offer due to the fact that it is considered cleaner to them. Does that mean that your offer was not considered? Of course not, but it is the reality of the business and something that you should be aware of.

There are many more situations to consider when purchasing a Lender Owned property that I would be happy to discuss with you. A bank owned property can be a EXCELLENT INVESTMENT if you do your homework and are working with a REALTOR that works for YOU. Please feel free to give me a call or check out my Bank Owned website at www.riBankOwned.com

Manny Menezes
Broker Associate - Licensed in RI and MA
New Concept Group @ RE/MAX Patriot Properties
401-396-3027 RI
978-360-9300 MA

Written by Manny Menezes 2009. All rights reserved...Republishing or RE-Blog not permitted without the written consent of the author.

Well after a year and a half without having health insurance, I decided to sign up with Blue Cross Blue Shield today. I was pleasantly surprised at how inexpensive it was and am wondering if maybe there are some other REALTORS that have not looked into the possibility of having health insurance because they were afraid of the costs. I am not here to sell anyone insurance but if you haven't looked into it because of the fear of the cost, I would recommend you make a couple of phone calls to your local health insurance providers.

This business is stressful enough and not having health insurance just adds to our daily worries.

Manny

With all the talk about how bad the economy and Housing Market is, it would have been very easy for me to curl up in the fetal position feeling bad for myself waiting for something good to happen. While some REALTORS may have taken this approach, I have decided to WORK. Thats right, what a concept.

I had a productive week this week.

Did I sell a million dollar home? NO

Did I get 4 saleable listings? NO

Did I have 3 closings? NO

I had a productive week because I made a difference in 2 of my client's lives. I helped a single mother who would never of imagined that she would be able to OWN her very own home, find the house that she will most likely live in for the next 10-20 years. I helped another client find themselves an inexpensive vacation property that they can utilize to get away from the real world whenever the stresses of life get to them.

Real estate has become a competition between agents to make the most sales and the most money. And while making a living is obviously very important to me, I feel as though if you make a difference in people's lives then making a living will be easy.

I became a REALTOR to make a difference. Why did you become a REALTOR?

I do realize that the fact that we are in a "down" or "depressed" market is somewhat old news at this point but I would like to put a bit of a positive spin on it at this point.

This market is GREAT if you love what you do. What I mean by that is as a real estate professional, your job is to HELP people buy and sell property. People need alot of HELP in this type of market and there is nothing more satisfying then helping that young family (who couldn't afford to buy 2 years ago) buy thier first home or to HELP that home owner get out from underneath that bad mortgage. I think we as professionals have to embrace this opportunity to make a difference in peoples lives right now and welcome the fact that in doing so we will build more than just a Client-Agent relationship. While everyone has an opinion or formula on how to make money in the Real Estate business, what it comes down to is relationships. Build life long friendships and have life long clients.

Now is the time to build those friendships and have those clients for life.