Mike Norvell Sr / Norvell Consulting Group

The joy of lease option in todays world. To those of you who don't like, or don't understand the power of lease option, then here is a short story.

Over 18 months ago I got a call on a sign. The property was a large double wide with about 3/4 acre and a beautiful huge deck. The mobile had been a model home for a development, and was very unique in how it was built...Well this couple were in love with this home, the location, the landscaping...everything.

So I get them started. We work with a friendly mortgage broker, who comes back with bad news. We have an issue with them when they lived in the west coast of Fl..The problem is, they never did live there..But her daughter did....

You got it, Identity theft. From your kids....Long story short, she won't press charges, and they take money out of savings to clear up the names. During this time, the Daughter is arrested on drug charges and is put in jail. My customers, who have been happy empty nester's for about 4 years now and saving for a house, are now in a dilemma. They of course step up and take the two children, aged 7 and 12.

They now need a bigger place, I still can't help them in traditional Real Estate until the credit is cleared. So they answer an ad and do a lease option for a very old 4 bedroom house and put down 8000. of their savings for the option. I figure I have lost the deal, and just let it go.

Two months later, the wife is calling me. The sheriffs department has just given them 45 days notice to move...the house is in Foreclosure....their landlord is a scammer!!!!

I begin to study foreclosure, lease options, and all this non traditional Real Estate.. I find a listing of MINE that is running behind three months, and who is getting ready to just walk away from the house..I ask if they would help out a nice couple who was in a jam, and they agreed. The home is about 10 years old and in super shape. Its 3 bed, 2 bath, with a 1/2 acre fenced in back yard...They have enough money left to catch up the mortgage and be one payment ahead, and the deal is made. Everything was done very legally, I would not let them get screwed again!!

One thing I have not mentioned is the wife , now full time mother to her grandkids, is on the liver transplant list. She has never had a home of her own. This is the first time she felt like she was in her own house, and is finally happy. Her husband is very supportive, and is of course troubled by the extra burden of raising their grandchildren as she slips away a bit more every month. Last week I was back in the home with them, and it appears we will finally be able to get them FHA financing with the First Time Home Buyers Assistance program.

She is smiling and tears are flowing. She and her husband are thanking me for making it possible to get a home set up for her family. She acknowledges that she will not make it without a transplant, its just a matter of months now at best. But her dream of being in a nice house is realized, and she and her grand kids gave me a Homemade Valentine for Sticking with them all this time. The husband, a proud, yet humble man who has worked hard all his life has to turn his head so that no one will catch him crying too.

Its an emotional scene, and I am proud to have been a part of helping this family finally get their house. The lease option idea made it possible for it all to happen, and done properly, may help someone you know too.

Thanks to Todd Clark (of AR Fame) for the neat graphic and some ideas months ago on Lease Options

Lake County, Fl is starting to see more investors looking on from the sidelines. We at Mid-Florida Real Estate Brokerage have been working with foreclosures and short sales at an ever increasing pace. The only question is where is the bottom.

Where is the bottom?? Where indeed...The bottom is a perception of a buying public. The bottom is something that is declared when prices are heading back up. So, if you wait for the bottom to be declared, you will miss it.

Trying to buy only at the bottom will certainly cause a buyer to miss the majority of the deals. True investors have a system for actually buying properties that takes out the emotion. True investors make a property work on paper before they even bother to visit the actual location.

If you are a local investor, or would like to be, then contact me, Mike Norvell Sr at Mid-Florida Real Estate Brokerage. I will do the research on the area, more than just pulling comps. Then we will look at the actual fast sale for a fully rehabbed property in that neighborhood, and then start backing out costs from there. I won't forget to subtract all the costs, including commissions, and profit. There will also be closing costs, inspections, repairs & advertising. Then take off a few percent more and place your bid...Be carefull on writing contracts even at low prices...We do title searches on all proeprties..It's not a good deal if the title is not clear...ANd you may end up being liable for bills you did not count on!!

Bidding on properties like this will be rejected more often than not, but IF you do get the bid, at your price, then you will have a property you should be able to make money on. If you can't buy like this, then pass on the deal. Its really this simple..

Don't forget, call me, Mike Norvell Sr for assistance in bidding on properties. Its worth having an expert involved to help you with your investing. Most people greatly underestimate what it will cost to turn a property. In this declining market, you cannot afford to make mistakes!!

Call Mike Norvell Sr. Mid-Florida Real Estate Brokerage Mikenorvell.com

Below is a article from the Real Estate Journal

I retained all the links and other stuff for contacting June Fletcher directly..it is a story about buyers agents charging a fee...I think its a great idea..They only want to charge $395.00 ....thats peanuts, and should be triple that....

Home > Columnists > House Talk
Is It Wise to Pay a Retainer Fee
To a Real-Estate Agent?

By June Fletcher
From The Wall Street Journal Online

Question: My fiancé and I are looking to find a real-estate agent and buy a house. We met an agent with 28 years of real-estate experience in our area who gave us a lot of paperwork to look over. However, he said that in order for us to retain his "team," which includes his daughter, for one year, we need to pay him a non-refundable fee of $395. My fiancé and I are a little leery. Does charging a fee sound right to you? Also, we are okay about working with him, but are not comfortable with having to work with his daughter as well. He made it sound like we would be working more with his daughter than with him.

-- Annette

Annette: When my husband and I went shopping for our first home in the mid-'80s, there were two types of real-estate agents: Those who listed homes, and ones who took buyers around to look at them. Both were necessary, and because the Internet and online real-estate listings didn't exist, the agents who showed homes to buyers generally spent a lot of money on gas and earned every penny of their commission.

But there was a problem with this situation. Although most buyers thought of the agent who took them around as "their" agent, in reality, both that agent and the listing agent were paid by, and had a fiduciary duty to, just the seller. So both were obliged to tell the seller everything the buyers said about their plans and negotiation strategy.

Naturally, this stacked the deck against the buyer, so agencies now typically spell out contractually what sort of relationship they have with the buyer -- a good reason to read all paperwork you're given very closely. Plus, a new kind of agent emerged over the years, the "exclusive buyer agent," who is responsible to the buyer alone and doesn't list homes. I highly recommend that buyers seek out such agents, as they'll not only keep your confidence, they'll also drive you around, give you valuable insight into market conditions and negotiate hard on your behalf -- without any possibility of a conflict of interest. A good place to find referrals to such agents is the National Association of Exclusive Buyer Agents.

But like everyone else, buyer agents don't work for free. At first glance, it seems like the seller pays them, since most are paid at closing from the commission costs that the seller pays, just as in the past. In reality, buyers pay for everything, since sellers routinely factor these costs into the asking price for the home. The typical real-estate commission ranges between 5% and 6%, split between the buyer and seller agents. Since the median price of an existing home is currently $208,400, that means a buyer is effectively paying between $5,210 and $6,252 for representation in a typical transaction.

But not every agent works this way, and flat fees are an acceptable form of compensation -- in fact, they're sometimes a bargain, if you compare $395 with the figures above. Be sure you understand and agree with what you will be getting for your money, though. Will the team be finding for-sale-by-owner and distressed properties for you, as well as those listed on the multiple listing service? How often will listings be sent to you, and in what form? Will somebody be available to show you properties that interest you, at your convenience? How much help and advice will you get to secure financing? Who will do the negotiating when you present an offer, and who will shepherd you through closing? Is there a provision in the contract that says that the flat fee is all that will be paid to the agent on closing, and that he will forego any commission? What happens if you are dissatisfied with his service -- can you cancel the contract before the year is up and hire someone else?

If the agent you're considering has a lot of experience, it's quite likely that he's farmed out the more routine aspects of the job to other members of his team, while he concentrates on finding new clients and negotiating. That's a normal and efficient way to operate, and if he does a big volume of business, could explain why he can offer relatively low flat rates. My suggestion: Share your concerns with him and see how he reacts. If you remain uncomfortable, walk away. There are legions of other agents out there who would love to have your business.

-- June Fletcher is a staff reporter at The Wall Street Journal and the author of "House Poor" (Harper Collins, 2005). Email your questions about the residential real-estate market. Please include your name, city and state. If you don't want your name used in our column, please indicate that. Due to volume of mail received, we regret that we cannot answer every question

I have a new feature on my website now...It comes with tons of letters and material to customize to send out to my prospects, or to place on my website mikenorvell.com .

This one I like, its such a misunderstood process...Hope it helps...And if you have more questions, please click on the links and someone will get back to you.

Buying a home is such an exciting time in everyone's lives. But it's not always the easiest process. There are several things that you can do in advance of your purchase to make the process flow much more smoothly. Here are just a few of the things I suggest to start getting ready to purchase your home. If you would like to talk about these further, call me at any time (352) 408-7111. Get pre-qualified for your home loan - This will let us know what types of homes we can look at. This could trim several days from the process. Begin to think about how much home you can honestly afford - We have all had times in our past when we say, "Oh $40 here and $100 won't be that big of a deal." Saying that with your home payment can lead to real troubles down the road. Research neighborhoods - Most people chose their home based on location. You should check into things like schools, shopping, and proximity to your place of work. All of these things will play into how much you really like a property. Doing these three very simple things will trim days - maybe even weeks - off of the time until you're in your next home. Again, if you have any questions, or if you're ready to move forward let me know. Sincerely, Mike Norvell Sr Mid-Florida Real Estate Brokerage 34025 Lee Ave Leesburg, FL 34788 (352) 408-7111 mikenorvell@earthlink.net http://www.mikenorvell.com/

Well, I will try this again...A complete post just went bye bye..I hit the space bar and some other key.....Zap its all gone.....Man, that sucks..

Anyway, I went back to the blog from Jason Crouch about the old video games....he is talking Frogger, Asteroids, Pac-Man........and Pinball...Man, did I ever love pinball.. I also liked Asteroids..I spent some lunch money on that game!!

I also used to play Fooseball at a very high level. I used to win tournaments. I was considered very good. I had learned the moves, and with a lot of practice, I developed serious skills. I even made money at it..

One day, I realized I had not played in a while..Then it had been years...I tried a game in a old hang out...I couldn't do it anymore. I was not in practice, I did not play hours on end any more.

I think many Realtors are facing this same level of frustration. After years of being good at it, they have gotten away from the basics. I see Realtors still thinking floor time gets the job done..Not any more..

Remember when we spent hours walking our farm area, passing out cards. Remember when we worked in Booths, sent mailers, attended all the Chamber functions.. We were building skills, networking, asking everyone the magic question. Who is asking the Magic Question 10 times a day any more...The agent still working the basics, AND doing the internet and high tech stuff is going to get the deals. That is the agent who is going to perserve and win!!

We need to practice our skills to stay sharp. It takes hours of actually working with people to get leads, gather referrals. I have to say that the more often I get out of the house (& Office) and get amongst real people, different people every day, the luckier I get. I tell people we are doing business, and they look at me stunned..

I hear, I thought the market was terrible??? I reply, We are dealing with investors buying below market properties, there are tons of deals now, its a great time to buy. *****Who do you Know that is thinking about buying or selling proeprties??"' I love the magic question..I constantly am surprised when someone replys with a lead...I shouldn't be surprised, its just too simple....it just works when you do...!!!

I tell everyone I am looking for deals. I tell everyone I work with investors that have cash and can close quickly. My phone rings and dance card is full. I am the same person who was close to failing terribly in this business. I was waiting for my web page to do something, for my ads in the books, my quarter page ads in newspapers. I wasn't out walking talking Real Estate..The skill building is a job we must work on every day. Go back to basics.

There is a wave of good business coming, you had better keep your skills sharp!!