January 6, 2010
By: Sean Carpenter
You have found your perfect deal. Now you are looking for a government grant or program to help you out. This all requires a great team. Who is on your side? My most common response to many who ask that question is: make sure you have a lawyer and accountant who know more than you.
Don’t get into a position where you need to educate your vendors.
Having a quality lawyer can get your deal closed that much quicker, while having a quality accountant can make sure your finances are in order.
A few questions for your potential staff:
- Are you familiar with Government Financing?
- Have you closed any subsidized transactions?
- Do you know anyone from the allocating agency?
At least 2 of the three questions should be “yes” and should help you to make an informed decision. You may also want to inquire about the program you are seeking as well. Count that as a bonus question!
Sean Carpenter is the nation’s leading expert on Government Deal Funding for Real Estate Investors and Developers and has spent the last 12 years both consulting and getting funding for his own deals. I’ll be hosting a special interview with Sean coming up on Thursday (tomorrow), January 7th, 9:00 PM EST where I’ll be asking him about what’s involved in getting funding for your deals courtesy of Uncle Sam. Find out more and pre-register for the call by visiting: Get Public Funding
December 28, 2009
By: Sean Carpenter
Are you finding deals are getting tougher to close with the new restrictions banks are pushing on applicants?
Is it taking longer to get a deal done? Have you stopped looking for new projects to acquire?
The last year has been a very difficult period in real estate history. Some markets have declined upwards of 50% in value with no light at the end of the tunnel. Not very good news if you started your “buy and hold” in 2007, but will certainly work better for you now in 2009 as you pick properties up for a fraction of their price two years ago.
Not to mention cap rates are heading into the two digits in larger metropolitan areas. For some, this is an area of the market they have never experienced.
So what can we do to get some of these declining assets?
The banks that were lending up to 125% a few years back have either left the market or cap an acquisition at 70% loan to value. The remaining 30% is up to the investor. But raising the 30% slows down transactions and your friends in Congress have attempted to help.
In July 2008, the President signed the Housing & Economic Recovery Act (HERA), which among other things, provided $4.5B to all 50 states, some territories like Puerto Rico and the Virgin Islands, and the District of Columbia, to combat neighborhood declination by foreclosure.
These funds, known as the Neighborhood Stabilization program, were supposed to help investors, both for and non-profits, buy and rehabilitate foreclosed buildings in order to prevent the stable households from losing too much value. In February 2009, Congress added an additional $4.5B to the program, now known as NSP II, to further carry out the NSP mission.
This is nothing new. The federal government has been investing in real estate for years, at least since HUD was conceived during the Johnson administration in 1965 as part of the Great Society initiative.
HUD allocates through the individual States and territories upwards of $20B per year to facilitate economic development and housing activities. Additionally, many states have programs of their own that can match federal funds in addition to over $5B in tax credit programs available to stimulate acquisition, rehabilitation and new construction of real estate projects.
Buying and holding certainly isn’t what it used to be, but now the government wants to help you out more than ever. You just have to know WHERE to find the money and HOW to get the funds.
Sean Carpenter is the nation’s leading expert on Government Deal Funding for Real Estate Investors and Developers and has spent the last 12 years both consulting and getting funding for his own deals. I’ll be hosting a special interview with Sean coming up on Thursday, Jan 7th, 9:00 PM EST. Find out more and pre-register for the call by visiting: Get Public Funding
December 23, 2009
Home values are continuing to slide in much of the country, as a result of the declining real-estate market and credit crunch. Yet research indicates most people still think their property is worth more than it is.
How then, can you get a realistic idea of your property’s value to prepare to sell quickly and for the best profit? Using real estate comps of course.
First, recognize that the median value of existing homes nationwide dropped 4.6 percent nationwide between January 2008 and January 2009. That’s according to the National Association of Realtors (NAR). One major reason for this decline is a slowdown in sales in high-cost markets.
On the other hand, year-over-year median prices rose in roughly half of U.S.metro areas, NAR said. The group’s chief economist, Lawrence Yun, speculated that some markets where home values had been weakening are turning the corner.
Always check with InvestorCompsOnline.com to review resent sales activity in your area before listing or advertising your properties for sale. Researching prior to purchasing is always the best bet, but after you have purchased your property, you should run a report again to ensure that the property is priced right and in line with any changes your neighborhood may have undergone since purchase date.
Searching real estate listings and visiting open houses in your neighborhood can also help you get a feel for your local real estate market. Pay attention to what happens to those listings. Homes that stay on the market more than a few weeks might be priced too high.
Remember, InvestorCompsOnline.com recommends comparing your property to current sales of similar age, square footage, and room count. The key word here is “current.” If nothing else, recent housing market fluctuations have shown that property can be worth one amount one day and something else the next.
All the best,
December 14, 2009
by Mark Jackson [MJ in my PJ's]
In order for Investors to fully understand the outlook of 2010 real estate market, InvestorCompsOnline feels it is necessary to understand issues relating to the lead up to the real estate market downturn. How these issues have affected the market will assist in understanding the coming year’s ideal investment opportunities. So, we have done that research for you and come up with ideas of what the coming year will bring.
Following the past 2 years of decline, a full market recovery is highly unlikely during 2010. The strongest developments towards recovery will be experienced in markets where controls existed for avoiding excessive lending, speculative buying and instability. Regions that have been hardest hit during the downfall of the real estate market have taken strong steps to avoid continued excessive decline. Control strategies will begin to show their results throughout 2010, with the hardest hit markets beginning to stabilize, while growth patterns emerge in the markets least affected by the downturn.
Our Investors should consider for the upcoming year to evolve from excessive speculative buying into strategies with improved stability and market demand. Long term investments are expected to be the strongest growth areas, with fewer risks involved and excellent gains potential due to the exceptionally low priced investment options available with REO investing.
At InvestorCompsOnline, we are constantly researching and evaluating the market and its changes to keep our members informed and advised. Our research has indicated that 2010 will continue to be an optimum buyer’s market, where those in a position to purchase will continue to receive and negotiate optimum deals. Equity enabled investors or investors that are using some of our creative suggestions for financing, are facing the ideal market conditions to access the best deals expected to be available for many years. Even if you are investing for long term benefits, you may also be in positions to once again benefit from a future turnaround into ‘seller’s market’ conditions.
Whatever 2010 may bring, InvestorCompsOnline is committed to providing you with the data and the training necessary to help you position yourself accurately to take advantage of all the opportunities of today’s real estate market.
All the best,
November 27, 2009
For many neophyte investors, paying too much for their first investment property usually proves to be a very costly and fatal mistake, and marks the beginning of the end of their foray into real estate. That’s why it’s imperative that you learn how to accurately estimate the current market value of potential investment properties! As far as I’m concerned, it’s the single most important aspect of the entire real estate investment business!
InvestorCompsOnline knows having an accurate estimate as to how much a property is worth in its current condition, is the best way to negotiate a below market purchase price that is based on the property’s condition, and not on how much it might have been worth after it had been cleaned up. This is what we teach our members.
Sadly, there’s no Kelly Blue Book equivalent for real estate investors to lookup used property prices in, this is where InvestorCompsOnline is necessary to learn for yourself how to estimate the current market value of potential investment properties.
The most common method used by property appraisers to estimate property values is the Comparison Sales Method. This method uses the same concept and data InvestorCompsOnline provides. This method bases a property’s value on the recent sale prices of properties that are within the same area and comparable in size, quality, amenities and features.
Members of InvestorCompsOnlinecan log onto the downloads section in the support desk and access our most widely downloaded teleclass “ICO Seven secrets” to get more detailed information on valuating property. This is truly “appraiser’s secrets for investors.”
All the best,