For all those 1st time homebuyers who had trouble finding "the one" in time for the tax credit, you now have a few more months to contact me and we'll ensure you get a great deal and a quick return from Uncle Sam.
Congress has extended and expanded the homebuyer tax credit. It has passed by both the House & Senate and will be signed off by President Obama in the next few days. The modifications will become effective when President Obama signs the bill. All changes made to the current credit become effective on that date, as well.
December 1 - April 30, 2010 Rules
First time Buyer - Definition for Eligibility
May not have had an interest in a principal residence for 3 years prior to purchase
Current Homeowner - Amount of Credit $6500 ($3250 married filing separate)
Effective Date - Current Owner
Date of Enactment
Current Homeowner - Definition for Eligibility
No Provision Must have used the home sold or being sold as a principal residence
consecutively for 5 of the previous 8 years
Termination of Credit
Purchases after April 30, 2010 Binding Contract Rule None So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Income Limits: Limitation on Cost of Purchased Home $ Purchase by a Dependent
Effective Date of Enactment
Antifraud Rule
Purchaser must attach documentation of purchase to tax return
So, the dream has become a reality. Investors looking to build portfolios of rental properties with positive cashflow without the headaches of updating/renovating and then finding a qualified renter has finally reached the market place.
Two examples are new investor listings I have just placed on the market at 2950 Dale & 3151 Robin in Decatur, GA - both of which have tenants in place ($725/mo. and $750/mo. - traditional rent, not even Section 8), have been modestly updated to be rent ready, and are both listed under $37,000. These are just two of a large portfolio of properties that one of my clients is looking to liquidate.
This is an ideal situation for the out of town investor who's looking for a low-maintenance cashflow opportunity or the "first time/green" investor who's looking for a way to get into the world of investor properties. If you study the MREI model (Millionaire Real Estate Investor model) you'll be able to walk into an investment with eyes wide-open, knowing exactly what your yield is, reducing your holding costs since it has a tenant in place, & eliminate the need for immediate repairs/upkeep.
Bottom line - this is like entering a pool on the shallow end - like 3 inches deep, we're not even talking knee height. No need to be thrown in the deep end and drown with "learning lessons" about what not to do when these have basically been gift wrapped for you. Some people like "getting dirty and rolling their sleeves up", other people look for leverage and opportunity. These properties are clearly for option B who truly would rather focus on counting the $$$ in the bank than counting the months of holding costs/repairs as they get off the ground and attempt to start running.
Please feel free to call or email for more information on these or other properties soon to hit the market.
Michael Neville
404-310-8364
Mike@LiveInAtlantaGA.com
Keller Williams Realty Atlanta Midtown
As the demand for East Atlanta continues to grow the need for more quality homes at an affordable price expands. This has many who may not be able to afford purchasing within walking distance of East Atlanta Village looking just a little farther down the road (Flat Shoals Rd. to be exact). People may not be able to spend $250,000 for a nicely updated 3/2 but they can come 2 miles down the road and afford $150,000 on an almost identical home. Well, as you leave "City of Atlanta" taxes while still being coded Atlanta on your mailing address - you'll find Bouldercrest Acres/Gresham Park in Unincorporated Dekalb County (Lower Taxes - yeah!). This is where larger developments carved out a stake of the land during the Boom, like "The Preserve East Atlanta".
Flippers (Investors who rehab homes & immediately resell upon completion of the renovation) are finding a new niche -- purchasing 4 sided brink ranches for 20k-40k cash & updating them from 3/1.5's to 3/2's, 3/3's, 4/2's and 4/3's - with a resale price of 125k-160K - with features that include granite counters, stainless steel appliances, hardwood floors throughout, new roofs, mechanical, electrical, & plumbing systems, etc.
It's exciting to see a neighborhood being revitalized -- former abandoned homes & foreclosures are no longer the eyesore of the community, they are being transformed into beautifully updated homes still well within a reasonable price for most civil servants & first-time homebuyers.
I'm delighted that I've just sold 2135 Brannen Rd for just over 35k as an outdated 3/1 that will now be renovated into a beautiful 3 bedroom 3 bath home for some lucky buyer. I can't wait to sell the home again in just a few months & continue to elevate the quality of the neighborhood in the coming months/years one home at a time.
If you want to learn more about the homes available in East Atlanta or the Bouldercrest Acres area - feel free to give me a call or email me.
Michael Neville
404-310-8364
Mike@LiveInAtlantaGA.com
Keller Williams Realty Atlanta Midtown
Well, After 3 other agents failed to sell 2141 Stockbridge Drive Atlanta, GA 30316 in the East Atlanta neighborhood I received a call from the Seller saying she was frustrated and didn't know what to do with the Short Sale process.
After a quick Q & A session it became clear to me that the Seller had not been dealing with serious agents committed to the process, no intimate knowledge of the neighborhood (1 of them lived over an hour away!!), or experience in knowing how to successfully navigate a short sale of this type.
Every Short Sale is different. You must determine how many loans are outstanding on the property, is there mortgage insurance involved, are there additional liens (tax, credit card, judgments, etc.) that have been levied on the property. Is the Seller current or behind on payments, how inverted are they (beyond certain thresholds it becomes next to impossible to get the short sale approved). What assets does the seller have, extenuating circumstances, etc.
After determining those factors it was within reason that this property could have a decent chance of being approved for short sale. This involved nearly 6 months of contact & negotiation with the Seller's bank, multiple appraisals ordered by that bank, and multiple offers coming in on the property.
The property eventually sold for $262,000 - nearly $90,000 LESS than it previously sold for only a few years ago.
It is an incredible value - almost brand new construction 4 bedroom/3 bath with 2 car drive under garage in EAST ATLANTA!!!! That's a serious steal since many 3/2 renovations are selling for the same exact price range (250k-275K) with no garage and about half the square footage!!!!
It was a win-win, the Seller was able to get out of an incredibly challenging personal situation that involved far more than merely the mortgage on her home & move forward to the next chapter of her life, while the Buyer got an incredible deal and the neighborhood avoided having a foreclosure negatively impact the quality and value of the immediately surrounding homes to a far greater degree.
To see the level of relief & appreciation from the Seller was truly a blessing - all she could say is "I wish I found you a year ago." She's now referring me friends, family members, and colleagues who are facing similar situations of inverted values, adjustable rate mortgages, job loss, divorce, and medical issues that are making the monthly mortgage payments impossible burdens.
The fact is short sales are here to stay for quite some time & that this route is far more beneficial to stabilizing home values and protecting people's credit than foreclosure. The key is to having an experience realtor who knows how to properly navigate/problem solve in the ever-changing world of short sale negotiations.
The craziest thing is that 90% of all foreclosures were never marketed for sale prior to foreclosure - meaning people either didn't know they had options or weren't connected to a realtor knowledgable enough to serve as their advocate. So if you or anyone you know is in need of a realtor who can succeed at selling a short sale in the Metro Atlanta area - please let contact me & I'll take it from there.
Michael Neville
404-310-8364
Mike@LiveInAtlantaGA.com
www.LiveInAtlantaGA.com
Keller Williams Realty Atlanta Midtown
Last week my 1st Time Home-Buyer Clients closed on their "Dream Home". They wanted "shiny & new" with all of the modern conveniences at a rock bottom price.
After months of discussions, data analysis, explanations, etc. about how big of a risk it is to buy new construction in Atlanta in 2009 from Builders with unfinished developments & massive standing inventory, they finally found the ideal situation in which I'd give my professional blessing for them to move forward & know that they were in the best financial situation within the development. We were looking for true Builder Closeouts.
Builder Closeout pricing tends to be slightly/moderately lower just to entice quick sales and finish out the development. We're not talking about finishing out phase 1 of 20 (which unfortunately is happening for some Atlanta Builders who are struggling to avoid foreclosure/bankruptcy and are negotiating with their lenders to conduct short sales.)
My clients we able to get a great deal with on a property more than $70,000 off from prices just 9 months ago in a development that had been selling around 400K previously. On top of that, we got them more than $11,000 in Seller paid Closing Costs & Pre-paid Expenses (Hazard Insurance & Taxes), not to mention a COMPLETELY FINISHED BASEMENT WITH FULL BATH, as well as a stainless steel refrigerator and top of the line washer & dryer.
The development has only 42 townhomes, they builder was already in closeout mode when his note was sold in the secondary market to a hedgefund - creating a quite short sale situation. This is considered a distress sale by many and one step away from foreclosure. This builder will remain nameless & would be recognized by many as a very reputable builder with many impressive developments in the Metro Atlanta area.
A true builder close out is the only way I'd give my clients the blessing because we're seeing liquidation auctions & foreclosures of new construction all over the place - but these are in developments that may be less than 30% built, so who's to say what will happen with the unfinished land or the other standing inventory that is yet to be sold?
In a Seller's market you want to be the 1st one to avoid the escalating sales price, but in a Buyer's market - which we are clearly in right now - you want to be the LAST one in so you get the absolute rock bottom price and no one can undercut your equity position. This is exactly the position my clients were able to acieve and when it's time for them to sell this beautiful townhome with an incredible "man cave", chef's kitchen overlooking a golf course, they'll be in a great position to capitalize on the most equity possible as a resale in their great development.
If you or someone else you know want to gain a great equity position, whether you're a first time home-buyer trying to take advantage of the $8,000 tax credit or this is your 2nd or 3rd home --- please feel free to contact me and I'll help ensure you take advantage of short sales and foreclosures in the Metro Atlanta market.
Michael Neville & Associates
Keller Williams Realty Atlanta Midtown
404-310-8364
404-604-3100
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Michael works with buyers & sellers specializing in East Atlanta, Kirkwood, Grant Park, Ormewood Park, Candler Park & Va-Hi. His niches include 1st time buyers, foreclosures/short sales. 404-310-8364
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