In the past 30 days the amount of Bank Owned Foreclosures have risen. There are currently many investment opportunities to chose from with more inventory being released every day.

Where are All The deals? Well, the inventories are at a year low. Bank owned homes are being held back. The best information available is that foreclosures are up, but the properties are being held back. Why, because the last quarter of every year is the slowest time for sales of homes. This is the holiday season, nobody wants to relocate during the holidays. So, look for prices to decrease during the holiday season. Sometime in January, the held back inventories are going to start to be released. This will gain momentum as spring arrives. The second quarter of the year is the highest demand time of year for families relocating. Prices will again drop because supplies of bank owned homes will increase. So, it does not matter when you buy as home prices are going to be at 10 year lows.

If you wait on the fence until the markets bottom is reached, you will be too late as the bottom is onlt realised after it has passed and prices have been rising. Let us know how we can help you get a great deal on a home. We are here for you!

Buy Disney Holiday Villas
Orlando investment Properties
Near Walt Disney World
www.ResidentInvestments.com

We are Short Sale Agents
We help Homeowners in
Kissimmee/Saint Cloud, Florida
www.ResidentTeam.com

Experts are predicting a triple dip in home values in the first two quarters of 2012. The increase in foreclosures is what is fueling this speculation. While the average percentage decline in home values since 2006 is about 35%, Florida is one of the leaders at around 60% in decreased value. The decline in the next two quarters is expected to be another 10%-13%.

Remember that these are just predictions and the bottom of the market is only realized after the market starts to increase. There are great values in home prices, if you are waiting for the bottom, it will pass and you will be still on the fence saying, “If only I bought then”. So don’t wait, get into the game.

Third Quarter Foreclosures are UP reported in the Real Estate section on MSNBC.com. Third quarter initial foreclosure notices increased 14% over the second quarter of this year according to RealtyTrac Inc. Bank are now moving aggressively as they had relatively stopped foreclosing on homeowners starting in October of 2010. Attorneys General in many stated wanted to investigate the foreclosure process with which the attorneys were following. Here in Florida, charges were brought against three large foreclosure firms. Banks then had to hire new attorneys, retrieve their files already started from the charged attorneys, and start the process over.

The philosophy was to slowly liquidate the inventories as to not depreciate the housing market with a slew of foreclosed properties for sale. But with little sign of the economy making a turn around, and inventories that banks hold growing, look to see the for sale inventories rise. The only way the housing market will turn around is to actually hit the bottom and deplete the foreclosure inventory. I think the philosophy has changed and we will be heading to the bottom of the market in months to come.

This is a target rich environment for investors to buy homes at the lowest price. There is plenty of competition, so don’t wait, get started and jump in.

Contact us for answers to any and all questions about locations and long and short term rental areas.

Buy Disney Holiday Villas
Orlando investment Properties
Near Walt Disney World
www.ResidentInvestments.com

We are Short Sale Agents
We help Homeowners in
Kissimmee/Saint Cloud, Florida
www.ResidentTeam.com

Mark Horan
Broker
Resident Team Realty LLC
residentteamrealty@yahoo.com

Timing when Buying Bank Owned Foreclosures is Everything. Here in Kissimmee Florida near Walt Disney World, inventories are low and the number of investment buyers is high. Every aspect of the purchase must be treated with urgency. That in many cases is the difference of getting a property, or not getting a property.

It’s imperative that the property must be viewed within the first 48 hours. Then your offer must be submitted within 24 hours of viewing the property. You must have a pre-qualification letter if financing, and a bank statement with poof of funds if buying with cash. This is a must and there will not be consideration of the offer unless this is included at the time of submission. The contract should be clean of contingencies. Also a large deposit is advantageous as similar offers are separated by the Earnest Money Deposit amount. Following directions of the listing agent is a must. Those offers that do not follow the listing agents directions exactly are not submitted.

After acceptance, all timelines must be followed to the tee. The sellers are banks, they are very busy with thousands of properties to sell. They do not have time for delays. They will cancel the contract and move on the the next buyer.

When choosing an agent be sure that they have experience with these kinds of transactions, it can be the difference of getting a property, or not. Also, it will keep you from wasting your time.

For questions and more information, follow our blog. www.markhoran.featureblog.com or any of our two websites to see listings.

www.ResidentInvestments.com
or

www.ResidentTeam.com

Mark Horan
Broker
Resident Team Realty LLC
residentteamrealty@yahoo.com

When Purchasing a Bank Owned Foreclosure Property in Kissimmee, Florida it is important to understand the process. A Bank Owned Foreclosure Property goes on the market as a listing. The number of investors here in Kissimmee near Walt Disney World is high. Within the first seven days each property has about one hundred buyers physically inspecting it. If the property is in good shape with minimal repairs to be performed to get the property livable, there will be about twenty offers on the property. The experienced investor understands value and knows Bank Owned Foreclosures are priced at least twenty percent below appraised value. With this information, of the twenty offers on a home with minimal repairs, seventy-five percent of the offers will be above list price. Cash offers are preferred, but the seller will take a financed offer is it is thousands above the cash offer. That covers the initial offer.

Now, offers are taken by the listing agent and uploaded on-line into a portal for the seller to review. Usually at about day seven, all offers uploaded and are notified that there are multiple offers and they have up to three days to submit their highest and best. A blind one bid auction if you will. Also at this time, the sellers is not looking at any new offers. What you need to understand, the listing remains active since there is not a signed executed contract.

Now, it is important to understand that sellers only work week days. So weekends just add to the time. Once all highest and best offers are re-entered into the web portal the seller will choose an offer. Then they have to generate a set of Bank Addendum. This addendum is then sent to the perspective buyer and they have two to three days to sign and return. Once the buyer signs, it is still not an executed contract until the seller signs. This can take up to three days. So, understanding the time line, offers are no longer accepted after 7-10 days. It takes another 5-10 days to get the perspective buyer to sign the addendum counting a weekend in there. Then it’s one to three days until the offer is executed as a contract by the seller. So after the listings has stopped taking offers, it’s another 5-14 days, for a total of 15 to 21 days to get a contract finalized.

So, investors, if you are planning on visiting and buying a house while you are here, you better plan on at least a two week trip. Now that doesn’t mean that you can’t put in an offer, go home and finish the transaction from home. That’s done everyday. But in most cases, a property must be identified in the first three days of coming on the market to accomplish a purchase. Just because a property is listed on the market, as I have described above, these are Bank Owned Foreclosures and the rules are not the same as how they are handled.

With this said, you can see how it is not unusual for the investor to return home after their first trip empty handed. Most of my investors come and visit and look for a property. Then when they return home, I know what they are looking for and I locate the property as I am here everyday. I inspect, send pictures, and with their approval prepare an offer and send it to them for signatures. They sometimes make the trip to see the property at the time of the home inspection. If the property is not what they are looking for, we cancel the contract within the inspection period and start to search for a new property.

Working in my investors best interest is job one and references are available.

Be sure to visit our websites for more information:

www.ResidentInvestor.com
and

www.ResidentTeam.com

A few things I need to point out. Short term rental capabilities are controlled by community zoning. These communities are only in Osceola and Polk Counties. Some of the short term zoning in these communities is by the house, or lot number. Not the entire community. It’s hard to isolate them.

Second, closest to Disney is important. The closer the better vacancy rate. But also the higher the sale price. Better the location, the higher the price. Windsor Hills is the best. 5-6 bedroom homes start at $300,000. Winsor Palms starting at $250,000. They are the easiest to rent and are in great gated resort communities zoned Short Term Rental. Just because it’s zoned short term rental, doesn’t mean you can’t do long term rental in this communities. Just not the other way around. The neighbors will rat you out and there are fines the county will assess.

If your goal is long term (1 year) rentals the area and the amount of listings open up.

Investors are here, every good property is getting 10 or more offers and they are selling above list price. Cash is good, but the banks are willing to wait on a financed sale if it is for $5,000 more. I just sold a home that was listed at $75,000 and it sold for a financed deal of $85,000. It appraised no problem. The trick is to put offers on a property within the first 3 days of being listed. A property will show active for up to 14 days after an offer is accepted because there are bank addendums to be attached to the accepted contract. The buyers need to sign, then the sellers. Most sellers only work 4-5 days a week. so it takes a while to get the executed contract. We are not an escrow state. Closings here are done by a title company. They are picked by the seller, and they are either in Tampa, or near Miami.

I listed a property near Disney Friday night at about 8 pm. I have had 12 requests for showings and two offers the first two days. This was a re-list and not a new listing. When I originally listed it the last week of August there were 120 showings in 10 days and I received 20 offers. 75% were about list price.
This property was only 1448 SqFt and had no pool. It was not in short term rental zoning.

Another thing. Bank owned foreclosure are rarely furnished and need a little work. Example: a bank owned home sells for $110,000. It needs carpet and paint. About $6,000. It needs appliances, another $3,000. It may need ceiling fans or fixtures another $600. Now you are into the property for $119,600. But because it was a distressed property (a foreclosure) it had a lesser value. After the rehab, the house could sell for approx $145,000. And you can get $1,100 a month rent. Taxes are below $2,500. But lets say it’s a short term rental and you can get $500 to $900 a week depending on the time of year, this property could generate over $20,000 a year in income with about 60% occupancy. Better occupancy and the income goes up. an investor had $60,000 revenue last year in Winsor Hills with a property he spent $360,000 for purchase and to be rent ready. But that is the top community.

So, you can see, each individual property has to be evaluated for ROI. (Return on Investment)

Investors are Buying all the Bank Owned Foreclosures They Can here in Kissimmee, Saint Cloud, and the Walt Disney World Area. Disney has been almost recession proof as visitors are continually streaming in. Investors understand that vacation rentals purchased at distressed value prices are a great return on investment. Rent rolls have almost remained constant as the need for rental properties rise as the amount of foreclosures displace those homeowners.

We have set up an additional website to address this growing market segment. Please visit us for information at either of our sites.

Buy Disney Holiday Villas
Orlando investment Properties
Near Walt Disney World
www.ResidentInvestments.com

Or

We are Foreclosure Agents
We help buyers and sellers in
Kissimmee/Saint Cloud, Florida
www.ResidentTeam.com

The List of Factors in Choosing your Kissimmee Florida Investment must take into account what ROI you are trying to achieve. The first place to start is the maximum you are prepared to spend. Next you need to understand that the closer you are to Walt Disney World dictates the price range. The closer you are, the better the vacancy average. Next you must consider the immediate amenities that are available to the renters. Some of the resorts are the best locations, Windsor Hills Resort, Windsor Palms, and Emerald Isle Resort. These communities have Olympic size pools, club house, exercise facilities, and even movie theaters for guests. All three of these locations have large homes and condos. They are all close to the parks and have the best occupancy. They are the most expensive to purchase, but their weekly rental rates, and occupancy are also the highest in The Walt Disney World Holiday rental market. Plan and simple, you get what you pay for.

Now the farther away from the parks, there are many short term rental communities that are less expensive. Their ROI can be kept high if the occupancy is high. That involves you as an investor to hire the right management company and maybe do some additional advertising.

This is a great investment vehicle and the returns can be large. But you need to purchase your investment at the right price. The strategy, is to buy Bank Owned Foreclosures. The cost of getting the investment rentable is higher, but the overall costs are considerably less.

For more information about Walt Disney World Investment Properties you can visit either of our websites www.ResidentTeam.com or www.ResidentInvestments.com Please call if you have any questions 407-301-0312

We Have Added a New Site For Investment Real Restate. www.ResidentInvestments.com went live last night. The purpose of this site is to attract domestic and foreign investors to the Walt Disney World area. The prices have been dropping due to the wave of Foreclosures and short sales eroding the values in the real estate market. With more inventory on the way, investors are a large segment that have been purchasing investment properties in the Kissimmee, Florida market. The rent rolls have not dropped as the values of the properties plummeted. This makes Real Estate Investment rentals a great opportunity. There is not a shortage of renters as the mortgage crisis has made the ability to obtain a mortgage more difficult. Also the families that are be foreclosed on at record rates still need housing.

The Walt Disney World resort still draws better that any other holiday destination worldwide. We have zoned areas here in Kissimmee and Davenport, Florida where a property can be utilized as a daily or weekly rental. These rates in many cases equal monthly rental rates, but because of the short term, a week stay brings the same revenue. With property values decreasing, this makes owning a short term holiday/Disney rental very attractive and lucrative.

Our new site will address any and all questions from potential investors in the Walt Disney World investment rental industry. This segment of buyers is where our local market is heading.