Why Henry Should List Your Short Sale

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Subj: (no subject) Date: 9/11/2009 7:33:13 A.M. US Mountain Standard Time From: Carol.Schwaner@russlyon.com To: henryscott@aol.com

Thank you for the precise way you explain the status of your short sale. You are one in a million! If everyone did this more of us would show short sales.

Kind Regards,

 

Carol

 

Carol Schwaner | Realtor® Russ Lyon Sotheby's International Realty 480.268.5278 | Mobile 480.502.3500 | Office 480.522.3601 | Fax

CarolSchwaner.Com

Certified in Short Sale, Foreclosed and REO Properties

Friday, September 11, 2009 AOL: Henryscott

Program 3648 in Arizona

 

Did you know the Federal Government recently signed into LAW…

 THE MORTGAGE FORGIVENESS DEBT RELIEF ACT
H.R. 3648

Dear Friend,                               

 If you're at least 30 days behind on your mortgage, then your mortgage company is willing to consider completely forgiving a significant portion of your mortgage debt (provided you go through the proper process). The portion they forgive, under H.R. 3648, is NO longer counted as personal income and CANNOT be taxed by the federal government!

 So if you are behind on your mortgage, I'd like to introduce you to the light at the end of the tunnel…Program 3648. Program 3648 is a free nationwide initiative whose mission is to:

 

1. Help homeowners receive the mortgage debt forgiveness this new law encourages.
   
2. Rescue as many homeowners from public foreclosure as possible.
   

 You'll be pleased to know that under PROGRAM 3648:

1. You receive all services, consultation, and information absolutely FREE. Guaranteed!
   
2. You're assigned a certified program administrator to do all the work for you.
   

I am actually the certified program administrator in Maricopa County assigned to do all the work for you. My team is currently helping hundreds of homeowners receive the debt forgiveness they need to stop a potential public foreclosure!

Now if you're like me, you're skeptical when someone claims to offer everything for free. These days, most people claiming free services have hidden costs that pop up somewhere. Well I'm pleased to inform you that is not the case with Program 3648. At no time will you ever be charged one penny.

As you can imagine, we have limited capacity to help homeowners for free. So those that call right away are usually the only ones that get helped.

I cannot emphasize enough that time is of the essence.

480-580-9885
Yours to count on,

Henry Scott
Certified Program 3648 Administrator
Prudential American Associates

P.S. Regarding H.R. 3648, The President stated,

"My administration has taken strong steps to help homeowners avoid foreclosure…The provision will increase the incentive for borrowers and lenders to work together…So this bill will create a three-year window for homeowners to…pay no taxes on any debt forgiveness that they receive."

Freddie Mac Bank Owned Listings in Scottsdale and Phoenix Not Yet Listed Week of July 9, 2009

Henry Scott announces his official selection by Freddie Mac and Home Steps in the territories of Scottsdale, North Phoenix, and North West Phoenix as a select selling agent.

One of the perks of this selection is that I receive a list of properties which have already been foreclosed upon and are owned by Freddie Mac, but which have not yet been listed on the Arizona MLS.

You will notice that Bedroom and Bathroom count and Price are "zero"; this information is unavailable because the homes have not yet been listed.

What you get now is the address of the property. Google the address, or drive by the home, if it's in an area you like.

If any of these bank owned homes look good, based on address, call or email me to express your interest. I will obtain more details, again prior to these properties being listed on the MLS.

With the shift in the market, and bank owned home sales heating up, this is a great way to stay ahead of the pack.

Visit this blog often, as I update and add new unlisted Freddie Mac Owned Homes often.



Zip Code: 85022

Address: 17409 N 13TH STREET, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 1920 EAST BELL ROAD 1080, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 1014 E COUNTRY GABLES DR, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 1118 EAST MARCONI AVENUE, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 18519 N 20TH PLACE, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00


Zip Code: 85032

Address: 15023 N 25TH PL, PHOENIX, AZ
Rooms: 5 Bed: 3 Bath: 2.0 Price: 0.00

Address: 14419 N 43RD WAY, PHOENIX, AZ
Rooms: 6 Bed: 3 Bath: 2.0 Price: 0.00

Address: 4704 E PARADISE VILLAGE PRKW, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 4409 EAST CROCUS DRIVE, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 2532 EAST WAGONER ROAD, PHOENIX, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00


Zip Code: 85254

Address: 7009 EAST ACOMA DRIVE 1163, SCOTTSDALE, AZ
Rooms: 6 Bed: 3 Bath: 2.0 Price: 0.00

Address: 5335 E SHEA BLVD 1076, SCOTTSDALE, AZ
Rooms: 5 Bed: 2 Bath: 2.0 Price: 0.00

Zip Code: 85258

Address: 10055 E MOUNTAIN VIEW LAKE RD UNIT #, SCOTTSDALE, AZ
Rooms: 2 Bed: 1 Bath: 1.0 Price: 0.00


Zip Code: 85260

Address: 15252 N 100TH ST 1148, SCOTTSDALE, AZ
Rooms: 3 Bed: 1 Bath: 1.0 Price: 0.00


Zip Code: 85308

Address: 21529 NORTH 74TH LANE, GLENDALE, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 4524 WEST CONTINENTAL DRIVE, GLENDALE, AZ
Rooms: 5 Bed: 3 Bath: 2.0 Price: 0.00

Address: 6357 WEST KRYSTAL WAY, GLENDALE, AZ
Rooms: 6 Bed: 3 Bath: 2.0 Price: 0.00

Address: 6078 WEST VILLA THERESA DRIVE, GLENDALE, AZ
Rooms: 5 Bed: 3 Bath: 2.0 Price: 0.00

Address: 19811 NORTH 67TH DRIVE, GLENDALE, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Address: 4761 WEST TONTO DRIVE, GLENDALE, AZ
Rooms: 6 Bed: 3 Bath: 2.5 Price: 0.00

Address: W 6876 FIREBIRD DR, GLENDALE, AZ
Rooms: 8 Bed: 3 Bath: 3.0 Price: 0.00

Address: 3644 LIBBY ST, GLENDALE, AZ
Rooms: 0 Bed: 0 Bath: 0.0 Price: 0.00

Great Rents

The market has shifted...we're skipping along the bottom...If you're waiting for the bottom it was 3 months ago...


These are the sound bites I'm hearing, but there's still plenty of good deals to be had. More bank repos are coming on the market. Some that produce instant cash flow, and instant equity.

Here's a property at 236 E Butler Dr, Phoenix, AZ 85020. 3 Bedroom, 2 Bath, Bank owned, Freddie-Mac, listed at 66,900.

$8,000 Tax Credit? Now Even Better, $8,000 Tax Advance

Attention First-Time Homebuyers. Your voices have been heard...

How much good is a credit to stimulate the economy if the folks we want to stimulate are short on cash; like kind of a lot of us are in this economy. We've discovered that with a credit, you have to have the money up front in the first place to buy the home, then sometime down the road or paper trail, you'll get the money paid back or credited back.

What if I told you the FHA has finally got it, and now they're going to let you use the $8,000 for a down payment, available at closing. Well, it's true.

Read the following article if you have the time: http://www.realtor.org/press_room/news_releases/2009/05/re_summit?lid=ronav0019


Or give me a call, and let's go find your new home.

Not all the kinks have been worked out with the announcement of this policy; a bridge-loan is required, and which lenders will be approved and/or willing to participate is unclear. Not all applicants will be eligible for tax credit or bridge loan.

Cash Flow is Back

For years now I've been searching neighborhoods around me. Even in other markets, thousands of miles away, willing to even be a long-distanced landlord, but to no avail. I simply couldn't put that 1% rule to the test. You've all heard it...a viable investment property should bring in 1% of the purchase price, in rent, each month. If not, don't bother. It's not worth the aggravation.

I became an accidental landlord when we moved up to a bigger condo in a better part of town, and had a hard time selling our first condo. So, we rented it out. We got $1,750/month which came out to almost two-thirds of a percent, or .57%, of the purchase price of $289,000 in rent per month. Not bad, given the year we purchased was 2003, and real estate prices had already got on board the hot-air balloon. Incidently, we've sinced incremently raised the rent and are now at $2,150/month, which is almost three-quarters of a percent, or .74%, of the original purchase price.

That all sounds decent, but nearly 6 years into owning this rental unit, we're still not at the 1% rule-of-thumb, which is the recommended starting point for a viable rental. And when you factor in the headaches, the fix this, and the fix that phone calls...deduct hoa fees and any other rental expenses, it's been a steady stream of lossed revenue. Now, agreed, that loss can be carried over and off-set my personal income. Which for a lot of us, is kind of a nice way to re-coup at least some of those lost dollars. But to jump ship now could mean months of marketing the unit, without rental income, before it can be sold. And the sale price would not be enough to make up for all the time and effort we've put into this one. I guess you could say we're in too deep, so we're holding on. We're about breaking even now, and should be in the green soon enough. We have wonderful tenants who pay on time, and don't want to move. So we'll hang on. However, the best decision we made was to leverage the property while loans were still obtainable. And we have that leveraged-money set aside for the purchase of a second rental property.

And so the search continues...Can I find a property that will cash flow immediately? Can I find a property that will meet the 1% rule?

Yes, I can.

In Phoenix right now, some condos are selling for $10K. Single family homes starting at $15K.

Investors are in a frenzy. The bottom is here in greater Phoenix, except for the high-end market. We are eating up the inventory faster than the banks can foreclose them.

I've seen investors get much better than the 1% rule. How about 2%? How about 4%? Like rent out a unit for $650/month that you picked up for $15K.

I'm here in the trenches. I can help you find that next rental. You're not too late. There is a wave of REO bank-owned homes coming on. The moritorium has lifted. Let's take a closer look.

When a flip becomes a spec-house.

When it comes to flipping houses for profit, I've developed a habit of one-upping myself. I just don't seem to get enough abuse.

After several cosmetic re-habs, I bought this single-story ranch for $367,000. To just renovate the kitchen and bath would have maybe broke the project even. I knew this house needed something more...like a 2nd story. I knew I could make money on the added square footage.

That decision shot the budget up from around $80K for my typical cosmetic re-hab to $167K to effectively double the total square footage of the home from 1100sf to 2500sf.

The town I chose to buy in had a cooperative, zoning-friendly building inspection department. So I was able to get plans drawn up, submitted, and had a permit in hand by the 5th week. I did have to carry the mortgage on the house for those 5 weeks, which was excruciating but worked into the budget.

By the time the house was buttoned back up, and ready for an open house, 12 weeks had flown by. I was 4 mortgage payments into this deal, and $167K lighter in cash but I had the best looking house on the market. After putting all that work and money into it, I was tempted to price it high. After all, there was no other new construction home on the market. I had a unique product.

About the same time I was coming on the market, Obama and McCain were at the height of their campaigns which both painted a bleak financial outlook for the US. That, coupled with the credit crunch, put a strain on my first open house.

I only had 127 people come through instead of the 150 I had hoped for. Yeah, it was a zoo. I came out 5% lower than any competition, and had the home under contract by the 7th day on the market. I had to come down a bit more in the negotiations, but got it sold in a week.

Here's how the numbers worked out:

After aquisition and construction, I was $534,000 into the project. I sold the house for $642,000, and after paying commisions, legal fees, closing and carrying costs, my profit was a little over $60,000.

This works out to about an 11% return on the total cash budget. Which is not so fantastic. Reasonable, but not fantastic. However, I utilized the most powerful tool in real estate investing: the power of leverage. Let's look at this again.

I didn't put $534,000 of my own cash into the project. Actually, I financed 90% of the aquisition cost, which meant I only put in about $200K of my own cash (and a sizeable chunk of that was on a credit card). So, my own cash-on-cash return came in at 30%. Now that's more like it. Annualized, because I finished the project in 5 months, is 72%. How many wall street guys saw those kinds of returns in 2008?

Invest in real estate. Whether short term or long term. Invest in real estate. You'll be glad you did.