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Foreclosures Rentals Drive Rents Down

The U.S. housing market is in a world of hurt. Bank owned homes (REOs) exploded to three-quarter of a million in the month of July, 2008.

For real estate investors, watching the number of foreclosures grow generates emotions much like those experienced while attending a slasher movie. The number of homes taken through bank foreclosures is up 184% from a year ago. Yes, a higher proportion of properties that enter the foreclosure process are ending up repossessed by lenders.

If anyone tries to tell you that the worst of the housing crisis is over point out that default notices are up 53% and notices of foreclosure auctions is up 11%.

Lenders now own over 750,000 homes and the number is climbing. They don’t want those homes, they want to sell them. What happens when there is a surplus of anything? Prices go down and that holds true for foreclosed homes. Some lenders are cutting prices as often as every 20 days on their REOs.

The book value of one to four-family homes owned by lenders whose deposits are insured by the Federal Deposit Insurance Corp. more than doubled to $8.56 billion at the end of the first quarter from $3.59 billion a year earlier.

Investor should understand that this ocean of vacant homes is driving down prices in many areas. Banks tend to cut prices faster than other sellers. That undercuts the value of every home in the area. What you buy today may seem like a bargain, but remember lenders will continue dumping tens of thousands of homes for months to come. That will reduce the value of your bargain home.

Those owning homes today are also suffering. Many bought at the peak of the real estate price bubble and have been underwater every since. With falling home values their situation grows worse every day. What little equity they had vanished some time ago. That will result in more owners walking away from there homes and another increase in foreclosures and REOs.

Rents Crash

The bad news continues. With hundreds of thousands of homeowners losing their homes through foreclosure the rental market has been flooded with potential tenants. That should be good for apartment owners, right? That seems logical until you remember the tens of thousands of vacant homes that can’t find buyers.

Landlords are desperate to rent their homes to raise cash that can be applied to mortgage payments. With so many homes offered for rent they are asking for almost anything they can get. For apartments rent growth has flattened, vacancies in many areas are at record highs and rent concessions are near record highs.

Renters can lease a home for the same price as a 990 sq ft apartment. That’s tough competition for apartment owners.

To make matters worse is the number of condo conversions that have been converting back into rentals. More rental units coming on a distressed markets means continued downward pressure on residential rents.

Oh sure, all of these problems will be overcome with time. If you are a real estate investor there are big profits ahead, but keep a tight hold on your buying power until there is not the slightest doubt that the housing market has hit a real bottom and is starting up the other side.

Keep This In Mind…

In November of 2002 an event was held to honor economist Milton Friedman on his ninetieth birthday.

Then Federal Reserve Governor Ben S. Bernanke (now Fed head) gave a talk. Here are the last lines of that speech…

“Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again”.

Mark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans.

Short Sales, Foreclosures And Bank-Owned Properties – Part 1

There are many properties in some stage of foreclosure or taken back by lenders at this time and a lot of buyers ask about these because they’ve heard about how this is where you can get an incredible deal. After more experience with these types of properties I’ve found that there is a lot of false information and hype out there and want to provide you with some more information that can help you understand this whole subject a little better.

During the boom years there were tons of seminars and books on how to make a fortune in real estate by buying and flipping houses. Though some people were able to make good money quickly that way during the period of about 2003 to mid-2005, many others are now part of the foreclosure statistics.

Similarly, there are now lots of websites, seminars, books, etc. on how to make your fortune buying foreclosure properties. They present stories of exceptionally good situations that make it sound like this is how every foreclosure situation goes even though it is really more of a rare occurrence for the average person. Maybe these are the same people who promoted the seminars and books on “flipping” (and maybe they are also the ones who email you about winning the UK lottery or about the $50Million they want to send you from Nigeria:).

That’s not to say that there aren’t good deals available in properties that are in some stage of foreclosure, there are. For example, in March I saw a condo in Palm Harbor priced $25,000 less than the one a client of mine bought last year (which was already $50,000 below what they were priced for in 2005). But this current one also has a garage and upgraded kitchen countertops and cabinets (which my client’s condo didn’t have).

Another example is a house in Dunedin that one of my clients is buying which is priced about $20,000 less than comparable properties in the same area and is in good condition. So it is true you can find some properties that are good deals.

BUT - there are some things you’ll need to understand because the process can be quite different from the normal.

First of all there are some different types of ‘foreclosure’ properties and I want to start off by clearing this up for you.

There is a ‘pre-foreclosure’. This is a property where the owner has fallen behind on their payments to a point where the bank has begun the foreclosure proceedings (usually by filing a notice of pending legal action).

There is a ’short sale’. This generally means a pre-foreclosure property where the property is being listed at a price that is less than what is owed on the outstanding loans. You can recognize these in listings as it will either say “short sale” or “3rd party approval needed” or “list price may not be sufficient to cover all encumbrances” (meaning that the bank will have to approve it in addition to the seller accepting the offer).

One word of caution though, some realtors will list a property as a short sale or “possible” short sale without even having their client complete a “short sale package” (the paperwork that will have to be submitted to the bank with any contract) - avoid these as in most cases they end up going nowhere or take months to hear anything back.

There are also “bank-owned” properties. Bank-owned means the bank has completed the foreclosure proceedings and now owns the property fully. These are usually the easiest and quickest of the different types of foreclosure properties to deal with although they are sometimes (not always) in pretty bad condition.

That gives you a basic overview of the types of “foreclosure” properties you may run into. In Part II, I’ll go over some information that will be important to know if you are considering purchasing a property in any stage of foreclosure.

To search the MLS for Clearwater Florida and the surrounding areas and get a monthly email newsletter to stay current on how the real estate market is doing in that area you can visit Ron Nedd’s website: http://www.searchdunedinhomes.com and register for both MLS access and the newsletter.

Short Sales, Foreclosures and Bank-Owned Properties – Part II

In Part I, I covered what the different types of ‘foreclosure’ properties are. Now let’s look at what you need to know about them if you’re thinking about venturing into this area.

The most difficult type to deal with at this point in time (in most cases) is a short sale. With a short sale, you will have to be prepared to wait weeks or even months to hear anything back on an offer. If your offer is at the asking price and 100% cash, then that may shorten the time period. But even in that situation there is no guarantee that it won’t take weeks or months.

As an example, I spoke with another realtor a few months ago whose client not only put in a full list price offer but also offered to pay for the title insurance that would normally be paid by the seller. It still took 3 weeks to get an answer and what came back from the bank was that they wouldn’t consider the offer until they had a special disclosure signed by the buyer that is required on houses built before 1978. Only problem is that the house was built in the last 5 years and this disclosure isn’t required. But the bank doesn’t care and wants the disclosure before considering the offer. And it took 3 weeks to get even this ridiculous reply back!

One other case is a realtor that listed a short sale and got a very low offer which she submitted to the bank in November (this was even after the house was listed for $200,000 less than the current owner paid for it 2 years ago). As of February she still hadn’t gotten a reply back from the bank. So that was 3 months with no reply.

So with short sale properties, you first need to find out if it is actually a good deal. I had one client recently looking at a townhouse that is a short sale and based on recent sales in the complex and comparing the condition of the properties this townhouse was priced at least $15,000 too high for even its market value.

If you do determine it is a good deal (especially when it is below market value) then it is best to offer a price that the bank will consider. This is especially true when the lender has already dropped the list price once or more. If you go too low, you may never hear back. And keep in mind that during the waiting period for a reply, other buyers can submit an offer and if the bank feels the other offer is better than yours – they can then accept it and reject yours.

It is actually fairly well known that short sale deals are often more difficult. An April 18, 2008 article said “The success rate for short-sale offers is low…20 percent of short-sale offers in the area [Las Vegas] lead to completed sales, compared with 85 percent for more traditional sales. Redfin, an online real-estate brokerage based in Seattle, says it represented buyers on 65 short sale offers in the first quarter but expects only two or three to result in a completed sale.”

And the final insult with short sales is that even if the bank accepts your offer and things are proceeding along well, they can decide in the 11th hour to cancel the deal. This info was given to me by an attorney who works for our state Realtor association.

The easiest of all foreclosure properties to work with are bank-owned properties. This is where the bank has completed the foreclosure proceedings and now owns the property. In these cases the time frame for getting an answer back on an offer will be much quicker. However, in a high percentage of cases the property can be in very bad condition.

A very important point with any of these type of properties - you must have your financial arrangements taken care of before even bothering to look at any. In all cases that I have seen so far, an offer won’t even be accepted in a short sale or bank-owned situation unless you submit a preapproval letter for financing or proof that you have the cash to buy it.

Bank-owned properties can be a good deal for you if they are in decent condition or if you are willing to do the work necessary to bring it up to the standard you want. But keep in mind that you will get very little or no information about the property from the bank so the risk of hidden problems is higher.

I only recommend short sales at this time for investors who are cash buyers and will have no problem with waiting an average of 60-90 days for the whole process. Many investors who have a lot of cash are buying up several of these type of properties with plans to hold on to them until the market goes up again.

In most cases, your best bet is finding a property that suits your needs and is a good value where the owner can sell for a good price without being in a short sale situation. Many of my clients have found this to be the best thing for them (and the least stressful and frustrating).

So there’s a brief rundown of some information on foreclosure properties and how buying them differs from buying other properties. Please make sure you understand this if you plan to try to purchase any as if you aren’t properly prepared or try to ignore the way these go, you’ll just be wasting everyone’s time.

To search the MLS for Clearwater Florida and the surrounding areas and get a monthly email newsletter to stay current on how the real estate market is doing in that area you can visit Ron Nedd’s website: http://www.searchdunedinhomes.com and register for both MLS access and the newsletter.

9 Hottest Real Estate Small Business Franchise Opportunities

If you’ve been paying attention to current US housing trends, you could very well be asking why on earth anyone would want to get into real estate at this point in the game. With interest rates rising to the clouds, astronomical selling prices, and rent everywhere being cheaper than a mortgage anywhere, there really isn’t much reason to try and cash in on real estate right now.

That was the shortest article ever, right? Not really. Let’s expand our current notion of real estate. Granted, trying to weasel into a decrepit buying and selling market isn’t the brightest idea ever, but there are other aspects to real estate that even in current trends could prove profitable for anyone willing to give them a fighting chance. Three sub-categories come to mind, and all provide small business opportunity: home inspection, home maintenance, and property management.

Home Inspection

By far the largest and most inclusive of the subcategories, home inspection covers more real estate businesses than you can shake a clipboard at, and their value for both owner and client is nearly immeasurable. It may seem reasonable to assume that when the housing market suffers, so does the market for home inspectors, but that, interestingly enough, is not the case. Completely to the contrary actually, the downturn in real estate is in many ways a blessing to the inspection industry, because as independent homebuyers, realtors, and lenders become increasingly choosy about the homes in which they invest their inflated money, the need for an excellent inspector increases dramatically. If you’ve ever seen the old Tom Hanks movie The Money Pit, you understand what I mean.

There are six home inspection franchises that we would strongly recommend looking into if this avenue seems right for you. Realistically, they all have the same goals: deliver the best possible training and support to the franchisee, always provide exceptional inspections to clients, and become top dog in the industry. Still, some of them excel in specific areas.

For instance, HomeTeam Inspection Service brings an interesting twist to the work, running a business model that—instead of being based on the work of a sole inspector eyeing over a home—uses in a small team of inspectors that work side-by-side to sort through every aspect of the home in finer detail. It lightens the load on the individual inspector and builds the trust of all parties involved in the sale. Another small business franchise in the sector, A-Pro Home Inspection, works its magic in the realm of marketing, providing every franchisee the rewards of having a corporate-sized central marketing team without having to develop it. If specific skills don’t interest you, though, and you just want the franchise the pros would use, take a look at Pillar to Post, the home inspection franchise ranked #1 by Entrepreneur Magazine six years running.

Even if you’ve effectively made your choice, don’t miss the other opportunities in this sub-market as well. National Property Inspections, HouseMaster Home Inspection, and Inspect-It 1st are all grade-A real estate franchises well worth your time and consideration.

Home Maintenance

There may only be one business for sale in this group, but that only means that it makes your choice easier. Whether you want to swing the hammer yourself or hire on others to do the groundwork for you, HomeTask.com Handyman Service can teach you how to make that business happen and give you the resources to pull it off. Jobs come in through the franchisor, and you can take or leave them as you choose. Grow the business as large or leave it as small as you like and take vacations at will. Regardless of what you choose, the work will inevitably be there for you, because though home sales has become a tricky business, there is never a lack of people who already own, are buying, or are selling a home who need to have it maintained, fixed, or renovated. Realtors may lose business at times, but handymen always have it.

Property Management

And here’s the kicker, part of the reason that our current housing market is doing so poorly is that home prices and interest rates have risen so drastically that it actually costs more, both per-year and in the long run, to own a home than it is to rent one of the same size and quality. Aside from pulling the bottom out of property sales, this reality has made property renting a big business, because everyone and their mother is renting. And with too many owners of rental properties living far from their land and dealing through the internet, the need for responsible men and women to handle rentals and deal with renters is great.

If you have a knack for real estate, a natural charm in dealing with owners and renters, and the responsibility to handle multiple—even dozens—of properties and all the technicalities that come along with them, then consider this growing industry one for you. Whether you go with Property Management Inc or Real Property Management, both great management business opportunities that have already attained national recognition for the skills of both franchisors and franchisees, there is plenty of room to climb the ladder of success.

Truth be told, the real estate industry is not in good shape these days, and there’s no getting around that. Like all things, though, it works on a cycle: after it goes up, it comes down, and after it comes down it goes back up. Regardless of what turn it’s on at any given time and how long it takes to sway the other way, there are certainly sectors of the industry that retain some degree of constancy despite the sways of the pendulum. These are them, so don’t be afraid to give them a go if real estate, in some fashion, is where you really want to be.

Find more real estate franchises and information about small businesses and home based businesses at Small Business Sale.

VA Foreclosures Can Be Profitable Investments

Just like any other lender, the Department of Veteran’s Affairs expects buyers to whom they lend money for property to pay their mortgages on time until the debt is paid off. Sometimes however, like any other lender, the VA is forced to take back a home through foreclosure.

The VA insures mortgages for serving and retired personnel in the armed forces. When one of those borrowers defaults on their VA-insured loan the lender turns to the VA for help. The VA reimburses the lender for the defaulted loan and the lender turns the foreclosed property over to the VA. The VA is not in the property management business, so VA wants to sell the property quickly and recapture its monetary loss.

Right now there are tens of thousands of homes in the VA’s inventory. Most of these are sitting vacant waiting for buyers. You don’t have to be in the military service or even a veteran to be eligible to buy one of these homes, but you do have to meet the VA’s qualification requirements.

Affordable financing incentives and interest rates are offered to all interested buyers so that the VA does not have to pay taxes, insurance, and maintain the foreclosed homes for any longer than absolutely necessary. They are eager to find qualified buyers and welcome all comers.

When searching for a home in a lower price bracket, VA foreclosures are a great place to start. Since the former owner was unable to make their mortgage payments it is likely that the property was not properly maintained making it a good investment for the savvy investor. Often times it is the more run down and unsightly properties you can pick up at bargain prices, fix up and flip for generous profits.

But be careful, you must be very cautious when you shop for VA foreclosures, and do your research before you commit to any investment. A good rule of thumb is that you should be willing to consider a purchase if there is just cosmetic damage to any property. That means paint, minor repairs and clean up. Unless you are very experienced with rehabbing real estate it is wise to avoid a property if real structural damage exists.

A moldy bathroom or a flooded cellar may look and smell off-putting, but they’re easy enough to fix, and their presence can drag down a property’s purchase price enough to make it a good investment.

A VA foreclosure can be perfect for an investor or a buyer/owner who wishes to purchase a property below market value. In order to obtain a listing of VA foreclosures, check with a local realtor who will have a list on the local Multiple Listing Service. You could also search the Internet under the search phrase “VA foreclosure properties”, and adding the zip code of the area where you wish to purchase property.

Here is a web site that lists available VA foreclosures http://www.ocwen.com/reo/home.cfm

There have been a wave of foreclosures with the downturn in the economy. It may a perfect time to gather a group of investors together to buy VA foreclosures by the dozen at deep discounts.

There are other types of foreclosures besides VA foreclosures that you should consider. They include bank owned real estate, preforeclosures and foreclosure auctions. They all offer opportunities to buy property at bargain prices.

Mark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans.

Stop! Home Foreclosure Can be Prevented

The country’s current financial situation, a high unemployment rate and the drastic downturn of the economy have led to serious problems in the real estate market. Many homeowners are devastated and afraid they may lose their property. They feel especially troubled keeping up with mortgage and credit card payments after losing their job, or fighting higher living costs and frequently receive notices from lenders by mail or phone, requesting to be contacted immediately. It is obvious there is a serious problem at hand and it needs to be dealt with, without any further delay.

Home foreclosures do not happen every day and therefore it comes as no surprise that affected homeowners lack the proper background education to help themselves get out of this threatening situation. They feel awkward and ashamed about their lack of financial comprehension, and the fact they do not recognize the correct actions to take to stop this fiasco.

If you are a homeowner falling behind on mortgage payments and need to stop foreclosure, get professional help. Unable to make financial changes or alter your personal spending habits, you will need expert counseling and specialized evaluation programs to help you resolve your financial issues and stop a home foreclosure from happening.

With today’s distressed housing market floating like a rudderless ship, the best action to take if confronted with foreclosure is to find a lender willing to work with you and whose first priority is to provide the best help possible, so you can keep your property.

What are the most efficient steps a homeowner can take if faced with foreclosure? The first solution that should be considered, if there is enough equity in your property, is refinancing. Establish a relationship with a reputable Investment Services Corporation, preferably one that can handle all types of lending related business services. They will submit your application to every viable lender in their network, and exhaust all options to get your claim accepted in the quickest possible time frame.

An experienced financial service leader will point out the many choices a homeowner has to stop a foreclosure tread and help him get back on his feet. If refinancing is not an option, restructuring an existing loan may be another possible solution. This is especially recommended if the existing mortgage has an adjustable rate. If the loan modification is accepted the borrower will be allowed to skip a few payments and, depending on when the loan was closed, and which negotiating tactics were used, may even be eligible for an interest rate reduction, resulting in lower monthly payments. Believe me; the bank would prefer to have less defaulted loans on its books.

During a time when the real estate market is hot, the homeowner may think about selling his home. If that is not an option, a short sale may be considered and negotiations with the loss mitigation department will commence. In this instance the lender may take less than what the homeowner owes on the loan to avoid a lengthy and costly foreclosure process. Now let’s presume this alternative is rejected; another option is to apply for a deed-in-lieu. If approved, the homeowner simply gives the home back to the lender and walks away with a clean slate.

Never ignore money problems, and never take a foreclosure lightly. In the end it will lead to bad credit, damaged credit reputation, and will affect future borrowing abilities. It will take a long time before credit is restored. That is all fine and dandy, but what if pretty much every option has failed? As a last resort a homeowner can file for bankruptcy, but that will only save the home temporarily, and if one payment is missed during this process the lender will put the home right back into foreclosure.

Foreclosure has no specific face. It can affect all families and is not related to class, race or religion. It is not gender specific and can happen for many reasons. Do not think it cannot happen to you, and if some day it would catch up with you and you are looking for help, just remember: don’t get caught in the trap of an institution that promises the world, yet feeds off your fear and despair, and in the end, does not deliver. Choose wisely and find the company with an excellent and committed team of professionals. Hire experts who can make the loan process stress-free and simple, who will try to fund your loan and are able to tell you the outcome in 48 hours, and who can postpone any foreclosure until the loan closing has been accepted. They are the people you can trust!

My name is Leland Stratford, I am a real estate investor in the state of Arizona. One of the most significant issues with Foreclosure has been the California Investors impact in inflated costs of the Arizona housing market and, the resultant creative financing to buy in an inflated market. http://www.oceanviewequity.com

Real Estate Investing: Peering Through the Gloom…And Finding Value

For several years now, the real estate industry has faced hard times. Whether you measure this as slumping sales of new homes or resale homes, or falling home values, things have looked bleak. The negative press coverage about real estate, often with banner headlines about the most recent gloomy statistic, has fueled the attitude of pessimism we see. This has sometimes been a self-fulfilling prophecy: real estate “experts” predict continued falling prices or sales, potential buyers read this and either decide not to make a purchase. The result: lower sales and lower home values.

The problem with this pervasive pessimism is that it does not tell the whole story. The real estate market is actually many, many markets, not just one. There are regional markets such as the Northeast or the Midwest. Markets within cities such as Los Angeles, Las Vegas, and Seattle. And local markets within each of the cities. In any of these markets, conditions vary widely. Some real estate markets in the U.S. have already begun rebounding, or in some cases have experienced newly rising prices. Factors such as the state of the local economy, net in-migration of people to the market, and the existing supply of homes all play a part in how a given market performs. You can’t look at broad-brush national statistics and draw conclusions about whether it is a good time to buy or not. You have to research the local market where you are thinking of buying and evaluate market conditions there.

The second thing to keep in mind is that the news media are reporting past results; they have no more insight into what may happen in the future than anyone else. There have been many times when the stock market is overwhelmed with pessimism and the result is irrational selling of shares. Then, something sparks a rally and investor confidence returns. The point is, the stock market does not send every investor an e-mail saying: Hurry! Now’s the Time to Buy! Most equity investors do not recognize when the market is turning and so miss out on opportunities. Similarly, by the time it is commonly recognized that the real estate market has rebounded, the best buying opportunities will already be gone.

It is really impossible to predict when the real estate market will rebound on a national level. For individuals with a long-term perspective, five years or more, a home will continue to be one of the foundations of a wealth-building strategy. In an economy as strong as the American economy, where home ownership has for generations been encouraged by Federal government policy, there is no reason to believe that real estate values will not resume their upward climb in the near future. Will it be in six months? A year? Two years? That’s hard to say. What’s important to remember is that this down period in the real estate market will end. Smart investors know that and aren’t forced into unwise real estate investment decisions based on the whim of the media.

More tips on investing. Brian Hill is the author of several nonfiction books including Attracting Capital from Angels, Inside Secrets to Venture Capital and Business Plan Basics. His hobbies include grilling and gardening.

Bahamas Real Estate: Where Should You Buy?

With 20 major islands to choose from, deciding where to buy real estate in the Bahamas can be overwhelming. This quick primer will make it easy to find the island that best fits your tastes and budget.

Nassau and Freeport

The cities of Nassau on New Providence Island and Freeport on Grand Bahama are the only choices for buyers who want urban or suburban surroundings and the amenities that come with it–extensive shopping, a wide array of cultural opportunities, hospitals, multiple golf courses, and direct flights to many major airports.

New Providence, a small island dominated by Nassau and its suburbs, is home to 215,000 people—fully three-fourths of the Bahamas’ population. Nassau has a busy downtown with both modern and historic architecture, and on the outskirts, a strip of high-rise hotels and casinos along Cable Beach. Paradise Island, connected to New Providence by a bridge, is home to the gargantuan Atlantis and other resorts. New Providence and Paradise Island have many gated subdivisions and townhouse developments, as well as high-rise condominiums. On average, real estate prices here are much more expensive than elsewhere in the Bahamas. Expect to spend $1.5 million for a typical canal-front house in one of the popular gated communities. A one-acre beachfront lot (the yardstick we will use throughout this article) would cost at least $3 million.

Grand Bahama, the northernmost of the major Bahamian islands, has a population of 50,000, the greatest part in and around Freeport. Grand Bahama is almost 100 miles long, however, and unlike New Providence, has less populated regions with deserted beaches and tropical pine forests. Lucaya, the residential area of Freeport, has a vast network of interconnected canals lined with thousands of home lots. Canal-front lots are reasonably priced–in the $125,000 to $250,000 range. One-acre beachfront lots in Lucaya sell for $1.5 million and up.

The Out Islands

After Freeport, the largest “city” in the Bahamas is Marsh Harbour, with a population of only 5000. The majority of settlements in the Bahamas are even smaller, with just a few hundred souls. This is the world of the Out Islands—large areas of untouched land with the occasional house or small village.

Abaco and Exuma

The Abacos and Exumas are not adjacent physically, but they have much in common. They are the most popular yachting destinations in the Bahamas, and their islands and cays provide beautiful cruising grounds. Abaco and Exuma are better known than the other Out Islands, and they each have several major resort developments. Prices are therefore higher. One-acre beachfront lots on Great Exuma are selling in the $1-2 million range. Abaco has prices in this range as well, but also less expensive beachfront in some locations.

Bimini

Hemingway made his “island in the stream” famous as a center of deep-sea fishing, and it remains so today. Bimini is also just 50 miles from the east coast of Florida, which ensures a good yachting crowd. Bimini has one major resort development, Bimini Bay Resort and Casino. Bimini Bay has no casino, but it does offer condos with boat slips in the $600,000 range. The only beachfront lot listed on Bimini, for comparison purposes, is a 2.7 acre parcel for $1.7 million.

Eleuthera

With sixty miles of beaches and only a few dozen hotel rooms, Eleuthera is a paradise for beach lovers who enjoy privacy and unspoiled natural beauty. Eleuthera has four major resorts planned or underway, but none is near completion yet, and overall, the island is still rustic and relatively unknown. Eleuthera is therefore less expensive than Abaco and Exuma–one-acre beachfront lots sell in the $500,000 range. With a population of 8000 and close proximity to resort-rich Harbour Island, Eleuthera has good infrastructure, stores, and services. If and when Eleuthera’s nascent resorts succeed, prices may catch up to Exuma and Abaco.

Andros, Cat Island, Long Island

These three islands are the next step up in remoteness and the next step down in name recognition, infrastructure, services, and prices.

Andros is said to be the largest unexplored landmass in the hemisphere. The island’s interior is home to the six-foot iguanas, the rare Bahamian boa constrictor, and who knows what else. The east coast of the island, the only populated area, has scattered villages and miles of deserted beaches. For those not afraid of who-knows-what-else, beachfront lots on Andros are selling in the $200,000 to $250,000 range.

Fifty miles long and with a population of only 1600, Cat Island is one place where you’ll never have to wait in line. Cat has many miles of spectacular pink-sand beaches and several delightful boutique resorts. A one-acre beachfront lot will set you back $350,000-400,000.

The aptly named Long Island is 96 miles long and only seven miles wide at its widest point. Long Island has a varied topography ranging from hills and cliffs in the north, to flatlands in the south. Deadman’s Cay, the commercial center, is fairly well equipped, with a medical clinic, banks, and well-stocked food stores. Prime beachfront lots on the island sell for $375,000, and lots on a narrower beach are currently selling for as little as $185,000.

San Salvador, Acklins, Crooked Island, Mayaguana, Inagua

For the true pioneers among you, these islands are farther south, more remote, and less populated. But the prices are tempting. A four-acre beachfront lot on Crooked Island is selling for $525,000—95% less than you would pay in Nassau.

Matthew Simon is developing Oceanfront Condominiums on the island of Eleuthera. His latest book is How to Buy and Sell Real Estate in the Bahamas: Insider’s Guide. Matthew may be reached at mattsimonmx@juno.com.

Miami Real Estate - Investing

Miami real estate investing is not very hard to learn, even though that there are many facets that are essential to understand before attempting to start investing. While many books and seminars are offered on investing only a few deliver the desired results. Investing is not taught in any university and it is more of an art than an exact science. It requires a lot of perseverance and determination. Many investors learn by trial and error although a mistake could be very expensive and usually devastating. Numerous millionaires made their money through real estate investments. Information, education and research are major considerations for an investor to be successful.

Real estate investing in Miami, Florida is a full time business where investors are constantly trying to maximize their profits and minimize their risks in other to generate wealth over time. Investing is a verified long term wealth creator. It is a numbers game and many of the transactions will not work but it is all worth it when one deal goes through and all your hard work is rewarded. It takes a lot of time and effort to effectively dominate the art of real estate investing. It is a risky business but it is the best way to create lasting financial security. Investing in Miami real estate is an excellent way to make a positive monthly income and built long term wealth and obtain financial independence.

Investors in Miami real estate have recently taken a beating and many have seen their investment properties lose value. An investor should not panic and sell in this market to avoid huge loses. Since it is a long term business an investor should realize that the time is now to rent the property and hold until the market turns around. If an investor requires a predictable and safe return on investment then investing in Miami real estate is not the answer. The business of real estate investing is very risky, and unpredictable but well worth the effort. An investor should consider buying foreclosures and bank owned properties. The Miami real estate market has hit bottom and it should be bouncing back very soon.

Miami real estate investing is different than various types of investing. An investor must overcome many roadblocks and obstacles. Usually finding financing is the single most overwhelming challenge an investor will face when trying to purchase Miami real estate. Using leverage in the business is common so arranging financing is very important. Do not purchase investment property with no money down. Little or no money down has caused many properties to go into foreclosure recently. Investing is not as perplexing, time consuming and financially draining as one might imagine.

Bank owned properties or Reo’s and Short Sales are a good way to start to look for a good deal in Miami real estate to purchase. The list of bank real estate owned (Reo) properties is huge. Not all banks want to discount properties so finding a good property to buy takes a lot of work and patience. Short Sales are the new trend in speculating in Miami real estate. Banks are not very eager to short sale their inventory and it takes usually about two months for the bank to accept or reject the offer. Government foreclosures are another to avenue to search. These properties include HUD, Housing and Urban Development, VA, Veteran Administration, FNMA and Freddie Mac. HUD homes are very popular and usually they will sell to the higher bidder in a weekly online auction. Investors are allowed to bid when the property does not sell to owner occupants. These HUD-FHA foreclosures properties are offer an excellent value. Foreclosures remain the best way for investors to start in the Miami real estate investing business since most of them have instant equity.

The best way to start investing in Miami real estate is buying foreclosures. The tremendous amount of foreclosures now in the Miami real estate market overwhelmingly gives the investor a lot of inventory to choose from in order to purchase the right property at a discounted price. This opportunity will more than likely never be available again and investors should take full advantage. An experienced Miami real estate agent who specializes in foreclosures is essential in order to guide the investor. The agent must have access to current bank owned REOs, foreclosures, short sale properties, pre-foreclosures government foreclosures and other distress listings. Investing in Miami real estate is a very exciting and rewarding business.

Hector Lesende is Owner/Licensed Real Estate Broker in Miami South Florida. Search Miami Real Estate We will sell your home from only 1% commission. We provide a free Miami Foreclosure and MLS list

Selling Your Property in a Falling Market

Falling property markets is grim news for house sellers and estate agents. If you are thinking of selling your house in a falling property market, perhaps for job relocation, or simply for affordibility then here is a look at some of your options.

1. You could sell now even though it is a falling property market, you will be protected from further falls in the market. If you are buying another property then the price of the property you are buying is likely to have fallen too so you would not have made a loss.

2. You could sell now and put your money in a high interest savings account. Instead of buying, rent in the area that you are moving to and closely follow the property market. Once the property market has bottomed out then you will be in a strong position to buy a bargain.

3. If you put your house on the market then finding a buyer may be tricky. In a falling market buyers are waiting to see if prices are going to go down, and interest rates may rise and then be cut, making mortgages unpredictable. If you have not sold your house by the time you need to move you could rent out your house and rent in the area you are relocating to. For this option, be sure to have money put aside to cover any costs when your property is not tenanted, charges for repairs and remember, the rent income you receive is taxable.

4. If you sell your house when the market has reached rock bottom, then buy, buy, buy - in this scenario you need to buy at rock bottom prices. Watch the market very closely, read the latest property reports and know what’s happening in the market. You need to buy before prices rise too much. At this point interest rates will be lower and mortgages therefore will be cheaper. At this point for a real bargain you may want to consider a property that requires renovation.

5. Stay put. Buying and selling a house is expensive in itself. Be sure you know why you doing it and check your figures that it is the right action to take. If you are selling because you are struggling to pay a mortgage, contact your mortgage broker and you may be able to renegotiate a lower monthly repayment.

If you decide to sell, be sure to prepare your house to look it’s best. You want to create a fresh, cared-for look. Paint the walls in a neutral, but warm colour, get rid of clutter, make sure all the lights work, fresh smells and fresh flowers. With a small amount of effort and cost, you will achieve the best price. Consider too buying property that requires updating and renovation. Whilst the market is slow take the time to renovate it and then as the market rises you could sell it and hopefully make good gains.

Disclaimer:

All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Susy Copus is a property commentator writing about all aspects of home moving, properties for sale, estate agent directories and house prices for the UK Property Search Engine, Wheres My Property. Susy also writes for Renovate Alerts who specialise in finding property to renovate.

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