Wednesday, November 29, 2006
Cape Coral Florida
If you are a boater and desire to have a home on a canal with Gulf access, we can help. Being an experienced boater familar with the area, I can show you property that can satisify your dreams.
Wednesday, November 22, 2006
Investment Property
So you invested in real estate in the last several years, now what?
You basically have three choices:
Sell;hold;walkaway
HOLD
By holding you have taken into consideration the market will get better over time. For this to happen prices will need to stabilize resulting in returning buyers. To hold you need to look at the total cost of the investment. What were your acquisition costs (and current equity) and what are your carrying costs such as interest, taxes, maintenance, insurance less any rental income? Of course, whatever the costs you will need to cover these costs during the projected holding period. I would not recommend renting to seasonal renters or other short term renters. A minimum of two year rental is best because you most likely will have to repaint and carpet, etc.
SELL
Given the fast run up in real estate values, a correction is occurring where some property owners are giving back some equity in order to find buyers. This may be a good strategy if your carrying costs over time would be more than the amount of reduction. Also, taking a second mortgage, helping with closing costs and doing some upgrades to make your property very attractive are some recommendations we give our customers. We also make sure your property is priced competitively with like properties in the area.
WALK AWAY
We hope this is your last option and that you never need to use it. Before you take this step we recommend you consult with an attorney and your tax specialist. This step would result in a foreclosure and affect your credit which would most likely cost more over the long term than selling your property at a great loss. You may consider an auction instead for a fast disposal. This may produce a "upside down" or "selling short" situation which means you still owe the bank a balance on the mortgage after the auction or sale. Many times you can negotiate with the bank on different terms than what you have because they do not want to see a default on a mortgage either.
You basically have three choices:
Sell;hold;walkaway
HOLD
By holding you have taken into consideration the market will get better over time. For this to happen prices will need to stabilize resulting in returning buyers. To hold you need to look at the total cost of the investment. What were your acquisition costs (and current equity) and what are your carrying costs such as interest, taxes, maintenance, insurance less any rental income? Of course, whatever the costs you will need to cover these costs during the projected holding period. I would not recommend renting to seasonal renters or other short term renters. A minimum of two year rental is best because you most likely will have to repaint and carpet, etc.
SELL
Given the fast run up in real estate values, a correction is occurring where some property owners are giving back some equity in order to find buyers. This may be a good strategy if your carrying costs over time would be more than the amount of reduction. Also, taking a second mortgage, helping with closing costs and doing some upgrades to make your property very attractive are some recommendations we give our customers. We also make sure your property is priced competitively with like properties in the area.
WALK AWAY
We hope this is your last option and that you never need to use it. Before you take this step we recommend you consult with an attorney and your tax specialist. This step would result in a foreclosure and affect your credit which would most likely cost more over the long term than selling your property at a great loss. You may consider an auction instead for a fast disposal. This may produce a "upside down" or "selling short" situation which means you still owe the bank a balance on the mortgage after the auction or sale. Many times you can negotiate with the bank on different terms than what you have because they do not want to see a default on a mortgage either.
