Mike Cathell

Recently, the local newspaper, The Fort Myers News Press, had an article about the Neighborhood Stabilization Program. This program uses Federal Grant money to help first time home buyers with the needed downpayment to buy a house. The program also targets neighborhoods needing a rejuvenation program, in this case, parts of Cape Coral.

Most of the comments on the online site are very negative. "A drop in the bucket" seems to be a very popular phrase in the comments. Most of the comment writers talk about unemployment, renters and investors but not about the true purpose of this program - help families buy their first home to start building neighborhoods again.

The program has enough money to help approximately 85 families with downpayment assistance in a localized area of Cape Coral. Investors are not eligible for this program because if the buyer does not live in the house for 5 years, then the grant must be payed back to the government. Its use is to get actual homeowners living in their own houses (wow, what a concept!).

I have shown houses in these neighborhoods where in some instances 2 out of 5 houses are abandoned. I consider it an important move to put families in 85 of them. Any activity, no matter how little, is better than no activity. It is easier to sell a house in a neighborhood with new activity. There is activity as yards get cleaned up and landscaping is being done. Air conditioning technicians and contractors are working on the houses making them livable. Furniture trucks are delivering new appliances and living room furniture. Moving vans have boxes going into a house rather than taking it away.

Yes, i understand the critics, it is a drop in the bucket. But the way i see it, drops add up. I have a catch basin at my house that captures raindrops, drips from my roof and the morning dew. At first, there are only drops. Then more drops are added to those drops. Eventually I have a filled bucket to water the plants in my yard. Maybe it's my imagination, but many times when I use this collection of drops, it rains on my yard!

Living in a "depressed" area, I am thankful for any program, no matter how small, that gets activity. Drops eventually do add up and we all enjoy the "new water"!

Mike Cathell, ePro Realtor Florida Future Realty, Inc. Cell: (239) 770-6250

Email: Mailto:MikeFlFuture@gmail.com Web site: http://FLCoastRealtor.homestead.com

In a recently released article, CNNMoney.com used research supplied from Zillow.com saying the best place to "haggle for home prices" was Florida. While this is true in a few markets (they named four areas), us in SW Florida aren't seeing it this way. The areas where this is working have an abundance of luxury homes that are still over-priced, even in this market.

I have spent countless hours educating customers that this is definitely a buyers' market, but an "intelligent" buyer's market. Why would a buyer think they are the only ones looking for a great deal. If their agent is really watching the market for them, they are aware of a new listing that is a good deal. But are they naive enough to believe they are the only ones spotting that house today? Some don't even believe it when we are sitting in the van, in line, waiting for our turn to look at the house.

In my experience, these deals only last a few days and due to current practices by some banks and listing agents, the agent will take offers for several days to find the "highest and best price" for this listing. If I got paid every time I had a listing agent tell me there were multiple offers, I could have retired this year a wealthy man.

In the Fort Myers/Cape Coral market, our customers need to be aggressive with offers. "Low balling" to start a conversation is a waste of time here. Many of the listings in the botton half of the listing prices are selling for listing price or even higher than listing price. Giving a low offer just frustrates the customer and the agents. Even if it is against our advice, customers still hear about all the "great deals" the media throws out there. Yes, as the media reported, we did have a three bedroom, 2 bathroom house sell for $25,000. What they forgot to tell you, it was a marijuana grow house that was completely gutted inside and is in a very unsafe neighborhood. More importantly, it was the ONLY one and it's GONE! All of the houses in SW Florida are not priced this way.

Buyers need to be realistic. Haggling gets you no where in the mid to low price range houses. Come in strong, with financing in place or cash in hand. You are not the only "smart" investor to be working this market! Remember, the media makes money selling news, not selling houses.

Mike Cathell Florida Future Realty, Inc Email: Mailto:MikeCathell@FloridaFutureAgents.com

Cell: (239) 770-6250 Web site: http://FLCoastRealtor.homestead.com

One of the largest fears renters have in this market is the fear of being kicked out of the house they are renting because the landlord does not tell them the property is in foreclosure. The Helping Families Save their Homes Act was recently signed into effect by President Obama. This act protects renters by requiring new owners of a foreclosed property to honor the existing lease or to give the renters 90 day notice to move if the new owner wants to move into the property themselves.

I have received many calls the last couple of years from renters wanting to know what their options were if the house were sold at auction or as a short sale. many property owners in the foreclosure were not telling their renters about the foreclosure because they did not want to lose the rental income. renters found themselves being evicted since they were not forewarned by the delinquent property owner. Now, more peace of mind is being given these families.

There are a few restrictions to this new law. The lease had to have been in effect before the property owner went into foreclosure. The tenants cannot be related to the property owner through marriage or direct family relationships. Plus, the tenants must not be paying a substanially lower rent than current fair market values for the area. The only exception are families on a government subsidized rent program.

This program can also benfit investors in a slow rental market. Keeping the current tenant, rather than hunting for new tenants, is a win-win situation for both parties. The investor does not have the costs involved with finding a tenant as well as the possibility of carrying costs if the rental sits empty. The renters are not forced to put their families through the hassle and agravation of another move. This program will hopefully keep families in their rentals, will decrease the number of abandoned homes and bring some peace of mind to communities during these hard economic times.

Mike Cathell Florida Future Realty, Inc

Email: MikeCathell@FloridaFutureAgents.com Cell: (239) 770-6250

Before

Recently, I read an article about people starting "Take Pride in Cape Coral" group in SW Florida. Everyone hears about the neighborhood blight left in the wake of the foreclosures - overgrown lawns, trash built up in driveways and vandalism to abandoned houses. A group in Cape Coral has decided to take action. The city has an online site to report abandoned homes. Code enforcement and volunteering neighbors then take their personal time and equipment to mow lawns and get trash removed. In one are, the neighbors even boarded up the windows to prevent vandalism and break-ins.

"Taking pride" has done some wonderful things for the neighborhood. Unsightly houses and lawns are disappearing. This adds value to the homes of the existing owners not selling their homes. More importantly, it makes it easier for Realtors to show these homes and get new homeowners in the neighborhood, reducing the number of abandoned and empty homes.

On a different note, I believe this project also draws neighbors together. You get to meet new neighbors as well as renew relationships with existing neighbors. It gives the new homeowners a chance to meet their new neighbors. Community is coming back to the neighborhoods.

The article hung with me over night and the next day I decided to take action also. I have begun contacting businesses and service organizations in the neighborhood where I live and work. I want my community back (and I'm the one who wants to sell it to new homeowners!). I would like to hear ideas and programs other realtors are implementing or participating in to bring back the "Neighborhood Pride". If I get enough responses here, I'll start a good news web site for everyone to post good news.

Don't be stingy! Please leave ideas and/or comments. Let's Take Pride in our profession and our neighborhoods!

And After, What a difference a little landscaping makes! (Yea, right)

Mike Cathell Florida Future Realty, Inc

Email: MikeCathell@FloridaFutureAgents.com Cell: (239) 770-6250

Baby Boomers have been through many financial ups and downs. These experiences have turned many Boomers into "Safe" Investors. Being safe means putting your money in IRA's and Baby Boomers are the largest holders of over two trillion dollars in investment accounts (according to the Investment Company Institute). What they are not taught is this investment money can be used to own the oldest type of investment - Real Estate!

At this point I will put in the disclaimer, I am a Realtor, not a financial planner, accountant or attorney. These type of transactions are governed by many federal guidelines and regulations. But what many of these investors are not told is that IRA monies can be used to purchase real estate. Smart investors know the old adage, "Buy Low, Sell High"! Real Estate is one of those investments that can be bought reeeeeeeally low right now.

As I've mentioned many times before, Baby Boomers are about to start a huge migration to Florida! With that move, new homes will be needed but what will the price be two years, five years or ten years from now when it's time to retire? Smart Baby Boomer investors are using present investments to ensure a comfortable retirement. What could make a retiree more comfortable than knowing their retirement home was purchased at a bargain. Even better yet, paid for by the time you retire.

One way is for the IRA to own the real estate as part of the IRA. Doing this does not allow you or your family to live or work in the owned real estate. All the income earned from the property must go back into the IRA and all of the federal and state guidelines for IRA's must be followed including appointing a property manager. The second way, is to establish a self-directed IRA and purchase real estate outside of the IRA. Now your family can reside in the house plus take all the tax advantages allowed to a home owner. A vacation home that will eventually become your retirement home is just one possibility. You can have joint ownership with other investors to buy commercial properties, for example, owning an office building and leasing an office back to yourself.

SW Florida is one of the areas hit hard by the drop in housing prices. Baby Boomer investors need to start planning for the upcoming retirement years now. Time to make the vacation home turned retirement home a reality now!

Remember consult correct professionals to help with these types of transactions.

Mike Cathell, Baby Boomer Realtor

Florida Future Realty, Inc Ft. Myers, FL

Cell: 239-770-6250 Email: MikeCathell@FloridaFutureAgents.com