Hank the Handyman

I thought when my boss recommended this book, it would be all about real estate. So far I’ve gotten through Lesson 1 and no mention of real estate. It’s about two young boys who want to learn about money so they work for one of the Dad’s – Rich Dad – who pays them 10 cents an hour for doing tasks around one of his shops. They get fed up with the low pay and rough treatment after three weeks, and demand a raise. In the process they learn some lessons. One of the lessons Rich Dad teaches them is, “The poor and middle class work for money. The rich have money work for them.”

I’ve always worked hard throughout my life finding whatever odd jobs I could to make some money. I didn’t have the opportunity to get a formal education but I found that I could make a pretty decent living helping others repair things around their house. When I met Oliver and started working for Meridian Trust Investments, I saw how they helped people invest in real estate. I realized that investing in real estate wasn’t just for “rich people”. I asked a lot of questions and learned as much as I could and was able to take some of my savings and buy an investment property. I think at first the guys were surprised that someone who looked like me, with my worn out overalls, dirty fingernails and beat up truck, had $50,000 in savings but I was brought up to save and I don’t need a lot so it wasn’t that hard. I have one property so far and I’m planning to buy another one in the next few months.

Let’s get back to the book, Rich Dad Poor Dad. I had a poor dad growing up. He taught me to work hard; always do my best and the rest would take care of itself. The first chapter of this book opened my eyes to some more lessons that it’s never too late to learn. Here are some highlights:

1. Don’t accept mediocre circumstances just because they’re handed to you.

2. Making more money doesn’t help, if you don’t have financial literacy. As income increases, most people increase their expenses, and end up with nicer stuff, but no more financial freedom than when they earned less.

3. Most of us become enslaved to money, and then get angry at our situation. Or at our boss. But our boss isn’t the one exploiting us; we’re exploiting ourselves (by trading time for money, and by working for money, instead of letting the money work for us).

4. Most of us are ruled by two emotions – FEAR and DESIRE. These two emotions do most of our thinking for us.

5. We are motivated by the FEAR of:
a. Being broke
b. Not having a job
c. Not following the path that most people we know are following
d. Losing whatever security (money) it is that we do have

6. We are also motivated by GREED, or DESIRE. The DESIRE to:
a. Have more money, for money’s sake (hoarding / financial security).
b. Have more money, so as to buy more STUFF. More LIABILITIES that just take money out of your pocket, without working for you. In fact, a lot of us are guilty of feeling wealthier as we amass more stuff. In actuality, we’re amassing liabilities instead of assets, and as such are getting no wealthier.

7. The cycle that most of us go through over the years ends up looking like this:
a. Go to work < --> Pay bills
b. When salary increases –> bills increase (because you get more stuff. Bigger house. Another car. More credit card debt. More kids, and therefore more expenses. Nicer vacations. Nicer gifts during birthdays and Christmas.)

Summary: Don’t work for money. Work to learn. But not learning the stuff they taught us in school; learning about how to make money work for you.
Here is a great illustration from the book on the above:

(more…)

The more I read, the more I realize how important being financially literate is. Knowledge is power. I only wish I would have known a lot of this information earlier in life. Oh well. No time like the present. And I hope that by sharing this with others, it will make a difference.

This lesson focuses on the history of taxes and the power of corporations. The concept of taxes started with the poor and middle class believing that taking fromthe the rich to give to everyone else made sense. Sounds familiar huh? But the rich figured out how to protect their money thorough things like corporations and governments started enjoying receiving tax money so much that they adjusted the “tax the rich” to include lower income levels.

Average Americans work five to six months for the government before they make enough to cover their taxes. The harder you work, the more you pay the government. Okay so I don’t want this to be a tax lesson or commentary. The point is that it is really important to have your money work for you. If you work for money, you give up your power to your employer. If your money works for you, you keep and control the power.

The author, Rober Kiyosaki, talks about his highly educated dad always encouraging him to seek a good job with a strong corporation and work his way up the ladder while his rich dad encouraged him to own the ladder. It never made sense to him until he started working for Xerox and working his way up the ladder and seeing how much the tax man took. When he started taking his earnings and investing them in assets, i.e. minding his business, things started to fall into place. It motivated him to work harder at his job so he could take those earnings and build up his asset column. In less than 3 years he was able to earn more from his corporation, which was a real estate holding company, than he was making at his corporate job. He also learned very quickly the difference between being an employee in the “proverbial rat race” vs. “owning the ladder”. So you see, it doesn’t matter what your current job is, you can still use these principles to build your own corporation filled with income producing assets which allows you to pay your expenses first and then get taxed on what’s left. The typical employee gets taxed on their income first and then uses what’s left to pay expenses.

Key Lessons you need to learn:
1. You need financial literacy which basically means the ability to read and understand financial statements. If you don’t have it, make sure you have a great accountant but really you need to learn the basics.
2. Investing in income producing assets is key. It’s the science of making money.
3. Understanding the market. The science of supply and demand and market conditions.
4. Know the law. For instance, utilizing a corporation (which anyone can form) wrapped around the technical skills of accounting, investing and markets can add explosive growth coupled witht he tax advantages and protection it provides.

Until I read this chapter, I was one of those people who thought corporations were only for big businesses. Now I realize that I can form one for my current real estate holdings which I plan to keep growing. This allows me to write off all kind of expenses that I incur and keep the bulk of the cash flow I earn as a result. The other benefit is by having my assets under a corporation, I can protect myself and my assets from lawsuits. I need to learn more about that but it’s all very exciting and motivating and makes me want to take every cent I earn and invest more in my asset column. I’m sold.

Only two more lessons left: Lesson 5 – The Rich Invent Money (can’t wait to learn how they do that) and Lesson 6 – Work to Learn – Don’t work for Money (sounds fun).

Until next time….

P.S. To stay up to date on what I’m doing, friend me on Facebook or follow me on Twitter.

These days it seems like everyone is talking about short sales. Buyers are often interested in them because of the potential for buying a property that is at a good price but a short sale is often a lot more complicated than a traditional sale and the wait to obtain possession of the property can be a lot longer. If you are thinking about buying a short sale property there are a few things you will need to know before entering into a transaction.

What Is A Short Sale?

A short sale is where the seller owes the bank more than than the property is worth. The term “short sale” literally means that the property is being sold “short” of what the seller owes the bank. In a short sale transaction the bank must agree to accept less than what the seller owes and agree to release all liens on the property so that the property can be sold.

The Short Sale Process

When you make an offer on a short sale you must be prepared to exercise lots of patience. A short sale is unlike a normal transaction where you are negotiating directly with a seller. In a short sale transaction the seller signs your initial offer and then your realtor/broker has to send it to the bank for final approval. Once the file is sent to the bank, your team coordinates with several of the banks representatives including (but not limited to) a document coordinator, a negotiator, the investor who owns the loan and a closer. Each of these representatives has to sign off on many details of the file (including price, commissions and fees) before it can even enter into escrow. Once in escrow a typical transaction takes about 30-45 days to close. From the day that your offer is accepted to the end of the transaction you can anticipate a wait of 45-90 days or more to close a short sale transaction (depending on how many lenders are involved and the seller’s hardship).

So Why Buy a Short Sale?

Homes that have been foreclosed on and rehabilitated by the bank often are in high demand and have multiple offers on them, which can be frustrating for buyers. Short sales are a good alternative because they are often in the same price range as foreclosures, but other buyers don’t have the patience to wait for the banks approval and therefore there is less competition to purchase a short sale property.

Short Sale Buying Strategies

1. Be patient – It can be a long process, but if it’s a home that you love and is perfect for your family it will be worth the wait.

2. Work with a company who understands the short sale market. Experienced companies know how to increase your odds of actually closing a short sale transaction before ever making an offer on your behalf. For example, an experienced agent will ask how many lenders have liens on the property and if negotiations have already started with the lender(s). Experienced agents may also have relationships with banks that will speed up the process.

3. Keep looking while you are waiting for an answer from the bank. Banks can take anywhere from 45-90 days or more to make a decision on a short sale. It is okay to hedge your bets by making offers on other properties while you are waiting. If you find another property that you like prior to opening escrow you can withdraw your offer on the short sale property.

Our current market is a distressed market, which means if you are buying a home you will most likely be engaged in a transaction involving either a short sale or a foreclosure. Having knowledge of how the short sale process works will take the fear out of entering into a short sale transaction and thus give you more choices when looking for your new home.

Good luck!

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn how you can take advantage of short sales or foreclosures in South Florida, contact us today.

Indeed, more than 40 percent of the previously owned homes on the market have at least one serious defect, according to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada.

“Virtually every ‘used’ home needs some repair or improvement,” said Kathleen Kuhn, CEO and president of HouseMaster. “That’s to be expected. But with today’s high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation.”

Drawing from their own findings from more than one million home inspections, HouseMaster says the most serious home defects to be on the lookout for are:

1. Cracked heater exchange
2. Failing air-conditioning compressor
3. Environmental hazards including radon, water contamination, asbestos, lead paint, and underground storage tanks
4. Moisture in the basement
5. Defective roofing and/or flashings
6. Insect infestation — termites or carpenter ants
7. Mixed plumbing
8. Aluminum wiring
9. Horizontal foundation cracks
10. Major house settlement
11. Undersized electrical system
12. Chimney settling or separation

Kuhn says most of these problems can be repaired. However, depending on the specific problem, the cost can be substantial, particularly if the defect involves one of the major systems. The cost could become a factor in whether you ultimately buy the house.

For example, a new air conditioning compressor could cost you up to $1,200. A new roof or repairs can cost at least several thousand dollars. A wet basement could cost up to $5,000 to remedy.

If you enter negotiations to buy a particular house, your agent should advise you to provide a provision for renegotiating or backing out of the contract if a home inspector finds major problems.Indeed, more than 40 percent of the previously owned homes on the market have at least one serious defect, according to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada.

1. Price your home correctly given today’s market conditions.
2. Prepare your home for sale and execute that plan correctly.
3. Market your home to the best buyer pool for your particular property and the benefits it offers to that particular buyer.
4. Negotiate for the property using excellent negotiation skills and taking into account today’s buyers’ concerns.
5. Problemsolving because in today’s market opening an escrow is not the same thing as closing it.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn how you can take advantage of short sales or foreclosures in South Florida, contact us today.

Post adapted from Original Source by Kendyl Young, a Realtor with Teles Properties in Glendale, California

This is always a fun list to review.  It’s compiled using homes that have a list price within 20 percent of the national median home price, which was $199,000 last week.

50% of them are located in Florida. Take a look. Enjoy!

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Between the rise of the internet and the availability of inexpensive airline travel, real estate investors are increasingly investing in markets outside of their own.

Understanding that most investors are interested in cash flow as well as long-term growth, here are some important factors to consider when thinking about investing in another market:

Factors to Consider when Choosing a Market for Real Estate Investment

1.) Employment and Job Growth. In my opinion, monthly cash flow is great, but I would only invest in a market if there is an opportunity for long term growth as well. Historically, the markets with steady appreciation and population growth do so as a result of strong job growth. I look for markets that have a friendly corporate environment, strong employment centers and data that indicates continued job creation in the years to come. This is typically a great indicator that the population will continue to increase, the demand for real estate will be strong and that prices will steadily rise as a result.

2.) Price to Rent Ratio. Some people call this statistic the “Gross Rent Multiplier” which is essentially just the price of a property divided be the gross income.  This is by no means a detailed analysis of a particular property, but a high-level approach to begin to understand a market by analyzing average price to rent ratios.

For example, if you were to look at a market in Southern California where a typical investment property would cost approximately $300,000 with rents around $1,500/mo, you would calculate the GRM to be around 200. Contrast this with a market like Atlanta, GA where an investment property could be purchased for $80,000 with rent of about $1,000/mo. The average GRM in Atlanta would look much stronger at 80 compared to 200 in Southern California.

3.) Legal Climate. Thirdly, I would want to invest in a market that was not unfriendly to landlords and investors. Every state and local municipality is going to have differences that relate to interpretation of contracts, time-frame for evictions, lawsuits against landlords, etc.  I think it is critically important to invest in jurisdictions that allow investors to evict tenants in a reasonable amount of time.  Putting yourself in a situation where a tenant could live rent free for a long period of time while you deal with a cumbersome legal process  is a quick way to an unprofitable investment.

Choosing a market and understanding the factors that should contribute to this decision is critically important for any investor. Whether you are considering an out-of-state investment or simply looking at different sub-markets in your city, it is imperative that you put in the time and do the research. The more knowledge you have before investing, the more likely your investment will be a profitable one.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Source: Ken Corsini was originally posted on BiggerPockets.com.

I know a lot of you handle the property management of your investment properties yourself which means you have probably dealt with some tenant issues a time or two.  I thought  you would find this “case study” interesting.  Please share any thoughts or questions you have had on issues like this that others can learn from.

A tenant who rents a house from me is requesting that I allow her to deduct lost wages from her rent. She notified me that her air conditioner was not working properly. I immediately called the home warranty company who sent out a technician as soon as it could that same day.

(The technician) made the repair, but the air conditioner began malfunctioning again shortly after he left. I then called an air conditioner repair company who came out and replaced another malfunctioning part the next day. I responded as quickly as was humanly possible.

On the first of the month, the tenant sent me a letter with two checks enclosed. One check was for the full amount of the rent — $850 — and a second check for $755. She said that she was sending both checks and would “let me decide which one to cash.” She said she lost work waiting for the technician to make the repairs.

I believe I did everything I could to effectuate the repairs in a timely manner. The property is in a desert community, and the air conditioning stopped working the first day the temperature hit 90 degrees.

I would never want anyone to have to suffer in the heat; however, this is a woman who is quite helpless and calls me with every inconsequential thing imaginable. I do not want to set a precedent with her in allowing her to deduct money from her rent.

Bottom line: Is it my responsibility to sit at her home and wait for a repairman, or should I allow her to deduct money from her rent?

A: I believe your response was proper and certainly well within a reasonable time frame, considering how difficult it is to find proper maintenance people for HVAC (heating, ventilation and air conditioning) issues when the temperatures are unseasonable.

But the best way to handle the logistics of arranging and coordinating the actual repair call will depend on the arrangements made in advance with your tenant.

Typically, for rental houses without on-site management or maintenance staff, the tenant needs to make arrangements to allow the repairman access to the rental property. There is no requirement that the property owner compensate the tenant for the inconvenience of any “loss of work” time. This is just something that has to be done to properly maintain the premises.

However, the tenant may choose to be there while the work is being done in her unit. That is certainly a reasonable request but not one that requires the property owner to cover the tenant’s opportunity cost of lost wages or other financial impacts.

If the tenant makes such as request, the owner or property manager should attempt to accommodate the request by scheduling the work when possible at the beginning or end of the day or at lunchtime or an “off day.”

However, that is not always possible, and most maintenance professionals are unwilling or unable to make specific appointments. I am sure we are all familiar with the concept of a “four-hour appointment window,” as many utility companies or delivery companies can give only that advance schedule.

There may be situations in which the tenant cannot be available and she insists that the property owner or someone on the owner’s behalf be present with the repairman. In that case, the owner or property manager would make arrangements to get the work done at a time they or someone they employ can accompany the worker, and the tenant would be free to continue with her regular plans.

In the situation you describe, the tenant did have to stay at home for at least one full day and part of another day. But there was no issue raised in advance, and therefore I do not believe you should feel obligated to accept the smaller check.

Based on your concern about establishing a precedent, it may be helpful to have a discussion with your tenant to see if there is a way that you can handle future maintenance needs of the property without requiring the tenant to miss any work.

This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.”

Summarized from “Why Investing in rentals could be a good move,”   by Amy Hoak , www.Marketwatch.com,   June 12, 2011

Conventional wisdom says, low home prices and low interest rates make this a good time to invest in real-estate. This coupled with the fact that rents are rising make thinking about becoming a landlord an option to consider.  “There are a lot of places in the country where an investor can buy a single-family home, rent it, and get a positive cash flow. “1   In today’s market, investors are looking at rentals more for their income generation potential than for traditional  market appreciation potential.  However, being a landlord is not everyone’s cup of tea and it is certainly not risk-free. “You have to be willing to set expectations and consequences to ensure rents are paid on time and you have to be ready for the possibility of evicting non-paying tenants…plus you’re responsible for the upkeep of the property.” 2

Do you have what it takes?  In the next series of blog posts, we will look at some of the pros and cons of becoming a landlord and investing in rental real-estate . Follow us on the journey as we examine what to look for, where to look and some pitfalls involved in the process.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn how you can take advantage of the robust rental market in South Florida, contact us today.

References:

1. William King, Director of Valuation Services, Veros Real Estate Solutions
2. Mike Litzner, Broker and Owner, Century 21 American Homes

Summarized from: “Now is a great time to invest in a rental,” by Tamara E. Holmes, www.Bankrate.com

The first thing you need to do is some research.  You need to find out what rents are in the area you’re considering, and you should know what the vacancy rates are.   Who are your renters and what are the features they are interested in?  Is your rental property location near public transportation, shopping , etc. Is it in a good neighborhood and school district?  Do you need help analyzing the market?

The best place to start for a new investor is usually single – family homes.  Foreclosures are a good source of affordable housing if you have the money to fix them up for renting.  Keep in mind the costs of owning a property include taxes, insurance and maintenance.   Can your rental income cover all your expenses?  Will you need help managing your property?

Get help if you need it.  A real-estate agent can help you analyze the market and find appropriate properties.  Talk to and consider partnering with experienced rental real-estate investors.  A property management company can help run every day rental affairs. Have a list of trustworthy maintenance people to take care of plumbing, electrical, construction and other problems and repairs.  Have a good lawyer who can help with tenant issues.

Make sure you have the financial stability to deal with the ups and downs of investing.  You may have periods of time when you don’t have renters and you’ll have to pay the mortgage yourself.  You need to have money for repairs.  Experts recommend putting aside 25% of your monthly rental income for future maintenance and repairs. If you hire a property management firm they often charge 10% of rental income for their services, which can include finding tenants, collecting rent and handling repairs, but it may be worth the time and stress you’ll save.

Remember, the property you will be renting is not a house you will be living in so it does not need to meet your standards.  Often, a fixer-upper is the way to go.  Ideally it will have several bedrooms and bathrooms, be in a safe neighborhood in a populated area and near public transportation.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn how you can take advantage of the robust rental market in South Florida, contact us today.

Summarized from Best cities to invest in rental homes by Amy Hoak, Marketwatch, July 11, 2011

10 Best Markets for home investors according to Inman News, an online real-estate industry publication:

1. Indianapolis- Carmel, IND
2. Winchester, Va. –W. VA
3. Gainesville, FL
4. Tucson, AZ
5. Tallahassee, FL
6. Hagerstown-Martinsburg, MD
7. Salt Lake City, UT
8. Richmond, VA
9. Gainesville, GA
10. Winston-Salem, NC

Note that 2 of the top 10 markets are in Florida.

Most investors are most comfortable buying properties near where they live because they are most familiar with those neighborhoods and properties that are nearby are easier to manage. However, just because a property is nearby does not mean the environment is renter friendly. The above properties have the following shared positive market characteristics;

• Low prices/high affordability
• High share of foreclosure sales
• High population growth
• Improving unemployment rate
• High return on investment in the next 10 years

Another report by HomeVestors of America and Local Market Monitor have a slightly different list. Their rankings are based on the return you get on rentals, counterbalanced with the risk and what the price is. The return could be short-term (rental cash flow), long term (property appreciation), or both. Risks include future home-price drops.

The report focused on single-family homes. Traditionally, most houses were purchased with the intention of fixing them up and flipping them. But, that’s changing and more people are looking for income properties. With the risks of investing in the stock market increasing, more and more people are turning to real estate for its long-term investment potential.
HomeVestors/Local Market Monitor’s top 10 rental property investment markets

1. Las Vegas, NV
2. Detroit, MI
3. Warren, MI
4. Orlando, FL
5. Bakersfield, CA
6. Tampa-St. Pete, FL
7. Phoenix, AZ
8. Ft. Lauderdale, FL
9. Rochester, NY
10. Stockton, CA

Again, note that several top markets are in the Florida.

Before you consider becoming a landlord yourself, consider these costs of the trade when you are doing your risk-benefit assessment.  Preparing a business plan, getting advice from experienced professionals and carefully choosing tenants will take you a long way towards avoiding some of the pitfalls associated with taking on renters.

1. Rental Property insurance is more expensive than homeowner insurance, typically by about 25%.
2. Legal fees and administrative charges can add up – you may need to have help drafting a rental agreement in addition to resolving any tenant/landlord conflicts that come up.  You may decide to hire a property management company to handle day-to-day administrative affairs, but they generally charge 10% of monthly rental income.
3. Registration, inspection and landlord training fees may be required by your city and may add up to several hundred dollars annually.
4. Cleaning and maintenance costs- you’ll want your property to look nice to entice renters just as you would want to entice buyers.  Additionally, your property will need to be cleaned and spruced up between renters.  Owners should consider charging a security deposit to assure that tenants don’t trash the property.  And, of course, you’ll be responsible for any maintenance issues that arise.
5. Taxes – Speak to an experienced tax professional about your situation. Certain tax breaks do not apply to investment property, such as the capital gains tax-exemption.

There are many benefits to becoming a rental property owner and the market is right, but think and prepare before you make the leap.  Balance your plans for income generation and return on investment with sound risk-assessment so you won’t be caught unaware.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Summarized from 4 hidden costs of being a landlord, by Margarette Burnette, Bankrate.com

While other parts of the country are starting to see “a modest glimmer of hope,” the most recent Standard & Poor’s /Case-Shiller Home Price Index found virtually no change in Miami in August.

Ten of the 20 cities covered in the index saw home prices go up, while Miami home prices were down 4.6 percent, year-over-year.

The 0.3-percent drop in Miami home prices follows a report in July that found home prices were up 1.2 percent, month-over-month.

While home prices are inching up in some parts of the country, David M. Bilzer, chairman of the Index Committee at S&P Indices, said nationwide home prices are still below where they were a year ago.

The Midwest has been an area that’s managed to rally, with Chicago, Detroit and Minneapolis posting sharp monthly increases dating back to May.

Low mortgage rates may be responsible, in part, for the rise, with 30-year, fixed-rate mortgages averaging 4.18 percent.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Residential sales in South Florida were up in September, with Miami experiencing the biggest increase for both condos and single-family homes.

Miami had 1,319 condo sales in September, up from 833 a year ago. It also had 848 single-family home sales in September, compared to 582 at the same time last year, according to a Florida Realtors report.

Fort Lauderdale had 1,281 condo sales for the month, up from 1,214 in September of last year. Single-family home sales saw a bigger jump, climbing to 1,079 from 974 at the same time a year ago.

West Palm Beach/Boca Raton recorded 1,100 condo sales in September, compared with 825 a year ago. In terms of single-family homes, West Palm Beach/Boca Raton had 1,076 sales last month, compared to 801 a year ago.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

People from all walks of life are asking the question: Is investment real estate for me?

Congratulations on taking the first step of wise investing: ask an expert.  As with any investment of your hard-earned dollars, it is prudent to get the facts and ask yourself if this particular opportunity is right for you.

Investment options are historically risk/reward propositions – meaning the higher the risk of loss, the higher the return you could reasonably expect. At this time, the stock market, mutual funds and commodities are highly volatile, but the expected returns are anyone’s guess. Treasury bills, certificates of deposit, money market accounts and bonds pay such a low return it is almost as if the money were doing nothing. The risk is significantly less but so is the reward.

Real estate is a classic wealth-building investment. When managed correctly, real estate can build substantial wealth over time. At present, there are a couple of factors at play in South Florida that makes real estate particularly promising.

Prices are down and stabilizing

The 2011 real estate values saw a drop of 5.6 percent year over year, resulting in prices equal to those of 2002, according to Zillow.com, and the sales of homes that were in some stage of foreclosure or that were bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter but up from 24 percent of all sales in the second quarter of 2010.

Today’s U.S. real estate market is showing signs of stability for the first time in five years. Prices are down but are stabilizing. Foreclosures are on the decline quarter after quarter, and banks and buyers are making deals earlier in the process. Overall, the sale of real estate is on the rise throughout the U.S. Investor activity in South Florida is on the rise as domestic and international buyers see the unprecedented market conditions and the signs of stability that will yield welcome returns to hungry investors.

Rents are up

In the wake of tens of thousands of people losing their homes to foreclosure, the Florida rental market has emerged like a phoenix from the ashes. Florida has seen rent rates increase 7.7 percent year over year, according to Zillow.com. The average rent in the Miami-Fort Lauderdale metro area is a staggering $1,700 compared to $1,430 in the U.S. as a whole.

Market timing is not the only factor to consider

The most important aspect of real estate investing is your exit strategy (i.e., what are you going to do with the property once you own it?). Sure, you can buy at a low price, but then what? The days of flipping (buying and immediately selling at a profit) are over.

There are several ways to make money in real estate investing: buy at auction and sell wholesale to other investors; buy wholesale and sell at market price (retail); buy at a fair price and hold for long-term appreciation; and numerous variations on the theme. There are investors who rehabilitate property, allowing them to get amazing deals and maximize profits. It should be noted that property rehabilitation is a specialized skill and renovation projects should not be entered into lightly.

All real estate investment options require some level of expertise to generate a worthwhile return on the investment.  If you are not an expert, this does not have to be a dead end. Find an expert and pay him or her to provide that expertise to you. Some investors prefer to invest in a Real Estate Investment Trusts (REITS) or Real Estate Equity Funds for a solid return with less risk and none of the work.

With the average market price so low and the average rent so high, buying investment real estate to hold as rental property is a sound strategy. A positive cash-flow rental allows an investor to buy and profit every month with future appreciation a welcome bonus.

There are areas for which I recommend enlisting the help of a professional when investing in real estate.  Property selection, financial analysis of the investment, property inspection, renovations, legal issues, leasing, property management, maintenance, etc. can add far more expense than most new investors realize. Managing these things on your own can be far more costly.

All expenses should be estimated (preferably with professional help) prior to acquisition of any investment property. If money is coming from your pocket every month and you are betting on appreciation alone, it is not a good investment.

Check with your tax professional about how you can use this investment vehicle to your advantage. Ask an expert for advice. Dependable resources are The Institute of Real Estate Management (IREM) at www.irem.org or a Realtor® specializing in residential investment real estate or property management (be sure to ask for references).

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Original Source:  Rochelle Le Cavalier, Pink Realtor, Hollywood, Florida

The inventory of homes for sale in Miami-Dade and Broward counties has shrunk significantly in the past three years, falling more than 63 percent, according to data released Wednesday by Bal Harbour consultancy Condo Vultures.

During the week of Thanksgiving in 2008, there were nearly 78,000 homes for sale in Miami-Dade and Broward. That number has since shrunk to about 28,500, because of heavy buying activity of international investors and a slow foreclosure process.

Broward has seent the strongest decline, with housing supply shrinking by 23,469 units to 13,457. In Miami-Dade, inventory has fallen to 15,025, down from 40,994 three years ago.

Still, South Florida has an enormous “shadow inventory” of homes not on the market. That inventory is estimated to include as many as 200,000 homes.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Prospective home buyers new to the market are quickly learning there aren’t nearly as many choices these days.

The for-sale inventory is down by 58 percent across South Florida from three years ago, according to CondoVultures, a Bal Harbour-based consulting firm.

Broward County has 13,457 available homes and condos, a 64 percent decline from Thanksgiving week of 2008.

Miami-Dade has 15,025 properties on the market, a 63 percent decline, while Palm Beach County has 16,373 homes and condos for sale, off 45 percent from 2008.

A slower pace of foreclosures in the past year and an influx of foreign investment have helped rid the region of a glut of available homes. Bidding wars are common for low-priced homes, and many prospective buyers complain they’re getting shut out of the market.

Miami-Dade and Broward are benefiting more from foreign investors, but it won’t be long before those international buyers find Palm Beach County, said Peter Zalewski, principal at CondoVultures.

“Palm Beach County is still trying to find its groove,” he said. “But give it six months. All those buyers who missed out in Miami-Dade and Broward will be heading up to Palm Beach.”

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Original Source:  Paul Owers, Staff Writer, Sun-Sentinel

The most expensive new listing to hit the market today is a three-bedroom, three-and-a-half-bathroom condominium unit in the Continuum on South Beach at 100 S. Pointe Drive in South Beach that’s asking $5.2 million. The unit, #3907, has panoramic views of the intracoastal, city and ocean in a waterfront building with lagoon pools, a lap pool, a spa, a private beach area and a restaurant. Jack Franco of South Pointe Drive Realty has the listing. – Adam Fusfeld

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

South Florida is already the nation’s epicenter for residential real estate sales to foreign buyers, and experts said Monday that they expect those international sales to be even stronger in 2012.

Top 10 markets for international buyers in Greater Miami, 2011

1. Venezuela: 15 percent

2. Brazil: 12 percent

3. Argentina: 11 percent

4. Canada: 10 percent

5. Colombia: 8 percent

6. Mexico, France: 5 percent

8. Italy, Spain: 4 percent

10. United Kingdom, Ecuador, Dominican Republic and Peru: 3 percent

Source: Miami Association of Realtors

“You have a unique opportunity for the next few years,’’ Moe Veissi, the president-elect of the National Association of Realtors, told more than 200 people gathered for the 17th Miami International Real Estate Conference at The Biltmore Hotel in Coral Gables. “You are at the juxtaposition of the best global real estate market we’ve ever seen in this country.’’

In 2007 and 2008, California led the nation in international sales, but Florida pulled ahead in 2009 and has been at the front of the pack ever since, accounting for nearly one-third of international transactions in 2011. Global buyers now account for $82 billion of residential purchases in the United States.

Of the international deals in Florida, 30 percent took place in the Miami-Miami Beach-Fort Lauderdale market, according to an international study by the National Association of Realtors. Distant runner-up was the Orlando-Kissimmee market with 14 percent of international sales in the state.

The Greater Miami area has transformed from a market with one of the largest inventory gluts in the nation to one where buyers, especially international buyers, are steadily chipping away at the backlog of unsold homes. The residential inventory for Miami-Dade fell from 25,769 last August to 15,405 this year, according to the Miami Association of Realtors.

“The absorption rate, especially in condos, has gone bananas,’’ said Veissi, who heads a South Miami real estate company.

International buyers, especially from South America, see “real value” in South Florida real estate, he said. Veissi expects international transactions will be even stronger in 2012. “This is an excellent time to be an investor or buyer in Southeast Florida,’’ he said.

But the good news on the international front is tempered with home values that are still declining in some South Florida communities and a steady stream of foreclosed properties that continue to come on the market.

Still, “this will be a record-breaking year for the number of sales in the Miami market,’’ said Teresa King Kinney, chief executive of the Miami Association of Realtors.

To attract global business, Deborah Boza-Valledor, chief operating officer and chief marketing officer of the Miami Association of Realtors, suggested targeting international buyers through blogs or websites that provide buyers with real information about the market. “They can get listing from anywhere,’’ she said.

A new survey of the association’s members that was released Monday shows that Venezuela is still the leading international market with 15 percent of sales (compared to 28 percent last year), but Brazil is closing the gap, accounting for 12 percent of sales compared to 9 percent last year. Argentina, Canada and Colombia round out the top five markets.

One of the reasons local real estate agents are so enamored of international buyers is they are largely cash buyers. Eighty-five percent of Brazilians who bought property in Florida paid cash, 91 percent of Canadians, 90 percent of Western Europeans, and 88 percent of Venezuelans, according to the latest international report by the National Association of Realtors.

Foreign buyers also purchase higher-priced real estate. In August, the median sales price for a single-family home in the Miami-Dade market was $180,900, down 1 percent, while the median condo sales price was $118,800, up 13 percent, according to the Miami Association of Realtors. But the median sales price for a home purchased by an international buyer was $222,500.

Condos continue to be foreign buyers’ residence of choice with condominium sales accounting for more than 70 percent of purchases.

Eighty-three percent of the association’s members worked with at least one international client in the past 12 months, and 26 percent said international clients accounted for more than half of their business, according to the survey.

“That’s huge. There’s no other market in the United States that can boast these kinds of numbers,’’ said King Kinney. But she added, “No matter how much we have, we can always do more.’’

The new survey also indicates that buyers from markets that weren’t a blip on the screen a few years ago are prospecting for South Florida properties. The survey reveals, for example, that buyers from India and China now each account for about 1 percent of international sales in the local market.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

As any smart American home owner knows, a home represents one of the best ways — if not the best — to keep your money in your bank account and not in Uncle Sam’s.

But the Internal Revenue Service isn’t exactly hanging bells around its neck to help you find these tax breaks. You have to look for them. Fortunately, some breaks are so significant that they are hard to miss — such as the mortgage interest deduction, whereby home owners can deduct from their income the interest they pay on their mortgages. Many other tax breaks, however, are frequently overlooked, which is a shame because they’re often a simple matter of planning and timing.

Most of our tax experts’ advice boiled down to one basic premise: Defer income on your real estate as long as possible, and accelerate expenses as quickly as possible.

It’s all in the timing.

“Most people have the idea that if they can get a bigger deduction now, they’ll take it and they’ll worry about next year when they get there,” says Scott Estill, a tax attorney in Denver, Colo.

That said, Estill suggests that one simple way to lighten your tax burden in the coming year is to delay the receipt of payments on rental properties until after the first of the year.

“If you collect rent on Jan. 1, the income from that payment won’t be taxed until next year,” Estill says.

By the same token, if you make your mortgage or property tax payments early — payments which may not be due until after the new year — your mortgage interest deduction will be larger, or you can deduct the early tax payment from your current-year income.

Embrace The Holiday Spirit

There are a number of holiday activities that could and should be used to your tax advantage. Bill Bronchick, an Aurora, Colo.-based attorney and author suggests that you go ahead and splurge on holiday celebrations; after all, if you invite business acquaintances, the entire event may be tax deductible.

“It is certainly legitimate to take a deduction for a holiday party — if it’s primarily for business,” Bronchick says. “That means you can deduct any expense related to the party, whether that means you bought new wine glasses for it or paid to have a cleaning person come the next day.”

And as the winter holidays are a time for giving, feel free to donate to charity any odd, old or unwanted items before the end of the year — and take a tax deduction for it in April. Although it may not amount to significant savings, most charities that accept donations will allow you to assess the value of your own donation, so you are essentially determining the size of the deduction you can take. (Remember when Bill Clinton donated his old underwear and then took tax deductions, valuing the underwear at $2 per pair?) If you donate real estate, you can take a larger deduction, but the size of the deduction is determined by the market value of the property, rather than your own assessment of its value. If you donate undeveloped land to a church, for example, you may deem the property to be worth $60,000, but if an assessor values it at $25,000, the size of your deduction will be $25,000 (see “Donation Motivation”).

Pay Off Your Debt

All those Americans who took advantage of 40-year-low interest rates to take out equity loans on their homes, and who also have credit-card debt, may wish to pay off their credit-card debt with the equity loans before the year ends. The idea is that if you pay off your credit-card debt with your home equity loan, you can deduct the interest on the payment; the interest on your credit-card debt normally is not deductible, unless the expenses on your credit card are incurred for business purposes.

Another nifty tax break, which is often overlooked, according to Estill, applies to people who have sold their homes this year. The points paid on a mortgage on your primary home are deductible, but they are amortized over the life of the loan. For example, if you paid points on a 30-year mortgage, every year you would deduct one-thirtieth of the points you paid upfront. During the year that you sell, however, you can accelerate the amortization so that you can deduct the remaining value of the points you paid.

“A lot of people miss this, but it could put a thousand or a couple thousand dollars in your pocket,” says Estill.

And a couple thousand dollars saved is a couple thousand earned — until the IRS makes a grab for it the following year.

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Original Source:  By Betsy Schiffman, Forbes.com

All cash sales accounted for about 30% of residential  housing transactions nationwide in 2010. The trend is a positive sign for the beleaguered housing market stalled by a tough mortgage lending environment and more restrictive appraisal standards.

Miami led the U.S. in cash transactions, fueling a return of international purchases that hasn’t been seen in decades. Cash sales rose to 64% of all transactions in October, 2010.  Separated by types, cash accounted for 77% of condominium sales and 43% of single family homes. International buyers continue to play a major role.   Nearly 90% of buyers from other countries in Florida pay for their purchases in cash.

The more depressed a housing market is, the more cash purchasers it attracts with lower housing prices. Las Vegas, which has led the country in foreclosures for years and Phoenix, which had the second highest number of subprime mortgages in the nation enter foreclosure are also leaders with all cash buyers.

Economic uncertainty, fear and volatility in financial markets coupled with poor forecasts of the future are leading many investors to transfer their money out of stocks, bonds and commodities. Investors are putting their money in tangible real estate as a commodity they can hold on to and sell if forced to do so in the future.

summarized from Cash is King in Current Real Estate Market

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Troubled by high long term unemployment worries, financial markets set the stage for another drop in mortgage rates this week, sending rates to a new historic record low.  The average 30 year fixed rate home mortgage dropped to 3.89%.

Mortgage interest rates are at their lowest level in U.S. history, but banks and mortgage companies still require borrowers to provide near excellent credit in order to obtain the best rates.  Most consumers, including those obtaining refinances are getting loans at higher mortgage interest rates.

The fixed 15 year mortgage saw a bigger drop than the conventional 30 year mortgage, hitting an average of 3.16%.  The shorter term mortgages are gaining popularity with homeowners as a result of lower rates and a lack of confidence in banks after millions of Americans lost their homes to foreclosure.

Lenders are attempting to attract additional business with the lower rates, especially consumers interested in investing in real estate.

summarized from Mortgage Rates Set New Record Low

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

The foreclosure crisis has produced an overpowering series of affects across the U.S. destroying businesses, taking away livelihoods, tossing millions of homeowners out of their homes and pressuring home prices in the over-whelming majority of neighborhoods lower.

The crisis has had a devastating impact on the nation’s economy and sent 45 million Americans into unemployment.  An estimated 7.6 million residential properties have been foreclosed since the crisis started, with another 7.4 million foreclosures forecast through 2016.

As the foreclosure crisis broadens to include more areas of the country, all sorts of homeowners are falling into its trap from a wide array of incomes, races and cultures.  This epidemic like the mortgages that produced it doesn’t discriminate based on race, creed, income, national origin or background.

Almost one-in-three homeowners are without any home equity or are on the brink of being underwater on their homes. For millions the dream of home ownership has turned into an American nightmare.  Job losses and especially high unemployment in the majority of the country are hurting the housing market.

The battle to resolve the crisis is likely to be delayed for years as politicians, divided by party lines and backed by special interests fail to do their jobs for the electorate as elected.

summarized from Foreclosures Forecast to Hit 15 Million Homeowners

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Although foreclosure filings fell 34 percent last year to their lowest level since 2007, experts expect to see an uptick in filings this year as foreclosure processes, delayed by legal issues, ramp up again.

More than 4 million Americans have already lost their homes to foreclosure since the beginning of the housing mess in 2007, and fresh stock filtering through the pipeline in 2012 could prolong the wait for a rebound in housing prices.

Housing values continue to trend downward and more supply on the market fueled by new foreclosures in 2012 could keep prices lower for longer. That’s bad news for the more than 6 million Americans grappling with underwater mortgages.

Even with foreclosure processing delays, “We’re past the peak in foreclosures,” says Daren Blomquist, director of marketing communications at Realty Trac, adding that ideas being tossed around about how to deal with the glut of foreclosures on the market is a step in the right direction.

Reports that the White House planned to move forward with plans to sell government-owned properties in bulk to investors were met with mixed reactions. “Some of these foreclosures just aren’t very appealing to individual buyers,” says Blomquist. “We need to look to real estate investors both on an individual level and an institutional level to handle these.”

summarized from Sharp Drop in Foreclosures Last Year But More on the Way

Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

If you’re looking to invest in real estate, remember that it is unlike any other investment. This is primarily because in real estate investments, you own the responsibility to create a house worth selling for a higher market value. In order to successfully accomplish this, you must take certain steps.

Determine what type of property you’re looking for. Do you want to flip a house, or are you looking for property to build on? You don’t want to incur a debt, so decide what your abilities, knowledge, and budget allow. Research each mode of investments fully before making a decision.

When looking to invest in real estate, you can’t simply take any house that is for sale. You must consider the property value and the state of the house. Even a beautiful house may require too much work and too many repairs to be a wise investment. Make sure that your budget allows you to hire the help needed to repair any damages or beautify the house.

To make a good investment, don’t take the first offer that is made. Instead, negotiate with the seller to bring down the price. Avail yourself to books or people that will teach you how to negotiate. It’s a learned skill, and not one you want to ignore if you’re interested in making real estate investments.   Take some cues from  Million Dollar Listing NY or LA to see how it’s done.

And lastly – make sure you have good advisors around you who have successfully made real estate investments who can coach and guide you.  

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in Broward, Dade, Palm Beach, Hillsborough or Pinellas Counties, contact us today.

One of the key steps involved in buying a new home is getting a home inspection.  It’s an important part of the process because when done right, a good home inspection goes “underneath the hood” of your potential new home or investment to help determine if there are any repairs, minor or major, that need attention.

It’s important to take this step seriously and not just leave it up to the inspector to guide the process.  Have a conversation with a couple home inspectors and review the following information with them:

BEFORE THE INSPECTION:

1.  What does the inspection cover?  Ask them for a detailed list of what they inspect.  If they don’t have one they can give you, this could be a red flag.  They can either put one together for you or you can find another inspector.
2. How much time can I expect the inspection to take?  If they tell you a couple hours or less, it’s a warning sign.  A thorough home inspection should always take two or more hours.
3. Are you experienced and licensed in residential home inspection?  Get a list of their credentials, licenses and some referrals you can contact on their behalf.  Ideally they should have a website that provides some of this information but you should always double check it.  Look up their license number, call their referrals to make sure they exist, do a google search on their name and/or company name.  Bottom line, check them out.
4. How long will it take to get the inspection report?  This is important to ask before you give them the job.  You want to get a sense of timing.  24 – 48 hours is what you are looking for.  You will also want them to put this commitment in writing if you give them the job.

AFTER THE INSPECTION: 

1. How serious are the problems?  Talk through all the problems and find out which ones are big ones vs the ones that are no big deal.  A good home inspector will give you straight feedback.
2. Can you recommend someone to do the repairs?  Home inspectors usually know a a lot of good repair people, plumbers, carpenters, electricians and more.  Ask them for recommendations or even find out which repairs you can easily take care of yourself.  In the report it should list an estimate of repair costs.  If not, make sure to ask this.
3.  Show me exactly what needs attention?  After the inspection, have the inspector walk you through the home and go through everything with you thoroughly.  Take a video of the walk through so you understand exactly what they are referring to so you can guide a future repairmen.
4. How does everything work?  Find out how everything works, again I suggest video it.  A home inspector is an expert and can give you a tutorial on all the major appliances, the cooling/heating system and the power sources so not only will you  know how to operate all your appliances but you can also handle any emergencies.
5. How old is the roof?  This is a key question to ask to determine how many yours you may have before you need to begin making repairs or replace it.
6. What do you think?  Once the home inspection is complete, you can ask the inspector for their honest opinion on the home. They will most likely tell you which repairs should be performed right away and which ones can wait. They may also tell you what a home warranty will cover and what it will not. By getting the big picture, you can better devise a plan for repairs and maintenance.

These are key questions to ask your home inspection professional.  There is nothing worse than buying and closing on a home or investment property to find out within the first year that there are major repairs you need to make.  A good home inspection coupled with your preparation and attention will ensure there are no surprises!

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in Broward, Dade, Palm Beach, Hillsborough or Pinellas Counties, contact us today. www.wesellcheaphomesnow.com

Top 7 Remodeling Projects

Whether you bought your home to live in or are going to rent it out, you want to prioritize how you spend any dollars to remodel your home.  It’s always important to think of the impact your remodeling job will have on your resale value even if you have no plans today to sell.  Eventually you will and you will be glad you thought about these factors:

Overall building a better kitchen, bath or bedroom and living by the mantra “bigger is better” for these rooms will give you the most return on your money.  The reason why is these rooms are where homeowners spend most of their time therefore they value these spaces more than others in the home.

In the latest Cost Vs. Value Report by Remodeling Online over 300 real estate professionals responded from 60 markets nationwide.  T

On the average nationwide, kitchen and bath remodels along with second-story, bath, family room and master suite additions were rated tops.

Experts say newness and spaciousness are key.

From a minor kitchen remodeling job’s return of 88 percent to a 71 percent return on both a major kitchen remodeling job and a master suite addition, here’s a look at what gives you the top five best returns for your money.

Although the data is updated annually, the figures below should give you a general idea of what return you’ll get on your improvements.

Best Returns

Source: Remodeling Online/Hanley-Wood.

Keep in mind that in order for you to get the biggest bang for your buck on these improvements, you can’t overlook what we refer to as the “basics”.  Your remodeling projects combined with these elements give you the best chance to recoup your cost and the some.

Curb Appeal

Curb appeal is the impression your home’s exterior conveys. It should create an emotional desire to own the home and to live the lifestyle and status it represents, which hopefully continues inside. Curb appeal is what gets the prospective buyer inside to see your new master suite and remodeled kitchen and bath.

Remodeling to Existing Standards

If most of the homes in your neighborhood don’t have a second story and you add one, the neighborhood could drag down the value of your home. If however, you rip out the old kitchen and put in a new one, your home will sell faster and at a better price than comparable homes with the original kitchen.

Quality Work 

Ask family, friends, co-workers and others you trust for referrals to licensed contractors specializing in the work you need completed. In states that don’t license contractors, seek those with strong association ties and proof of insurance.

Finding a Contractor

Interview several contractors and don’t just go with the one with the lowest estimate. Often times they don’t have enough capital to do the job and will leave you hanging.  Also get everything in writing and never commit to a verbal contract.  Reputable contractors will give you lots of references from homeowners they have successfully completed quality remodeling jobs with.

Good luck!

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in Broward, Dade, Palm Beach, Hillsborough or Pinellas Counties, contact us today. www.wesellcheaphomesnow.com

For the past two years, Miami has been setting the pace of South Florida’s real estate market. But now, Ft. Lauderdale is leading. Miami’s prices are going up with the strengthening market, and homebuyers are looking farther north for the best prices.

Over the past year, Ft. Lauderdale has seen a 20.7 percent increase in the average selling price of a condo and a 30.8 percent increase in the average selling price of a single-family home.

Professionals largely attribute Ft. Lauderdale’s success to foreigners. Not only is the current real estate market perfect for foreign homebuyers, but also the availability of condos in South Florida makes for a more efficient lifestyle.

As well as Ft. Lauderdale, Boca Raton and Palm Beach have seen a recent growth in their real estate markets. They also saw large increases in selling prices and a tightening of inventory.

Miami has for a while been the prime area to buy real estate in South Florida. But as more homes become bought and unavailable, the best choice seems to be further north.

To learn more about real estate investments, short sales and foreclosures in Broward, Dade, Palm Beach, Hillsborough or Pinellas Counties, contact us today. www.wesellcheaphomesnow.com

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

Despite the fall of South Florida’s real estate market, as of Summer 2012, we’re seeing signs of growth and activity and watching the market begin to heal.

In Miami-Dade County, the median sales price for single-family homes rose 14 percent from the first quarter of 2011 to the first quarter of 2012, while the mediate sales price for condominiums rose 38 percent, according to the Miami Association of Realtors and the local Multiple Listing Service systems. The total housing inventory in Miami-Dade County decreased more than 35 percent, a huge pointer to the hopeful future of South Florida’s real estate market.

In Broward County, the median sales price for single-family homes rose 17 percent and condominiums rose 17.4 percent from April 2011 to April 2012.

South Florida’s real estate market is a haven for buyers from Latin America, Europe, and Asia, who represent 80 percent of new buyers in South Florida. South Florida boasts a real estate market of excellent value compared to cities like Rome, Paris, Hong Kong, Bogotá, and Rio.

Summer 2012 seems promising in the growth and strengthening of South Florida’s real estate market.

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today. www.wesellcheaphomesnow.com

Mortgages in Fort Lauderdale and Miami-Dade can be unaffordable in the current South Florida real estate market. If you’re having trouble keeping up with your mortgage, a short sale is an avenue that could save you.

A short sale entails the bank allowing the homeowner to sell their house for less than their mortgage – in the past few years, this has become an increasingly viable option since the South Florida real estate market fell.

If you’re looking into a short sale, there are some key moves to keep in mind. Banks don’t approve every homeowner for a short sale. Before approaching your lender, make sure that you’re a viable candidate by having been pre-approved for a mortgage.

Most importantly, you must approach the bank with the “right price.” If you’re looking to sell your house at a low price, you likely won’t be approved because the bank will lose money. Before talking to your bank about a short sale, be organized and deliberate – banks don’t want to waste their time or money on homeowners unable or unwilling to offer a good deal.

To ensure you navigate a short sale expertly, work with a reputable company who has successfully helped others and can provide you with referrals or testimonials.

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Brazilians tend to know what they like – and the next big thing? Miami. Brazilians are taking Miami by storm, using the real estate crisis and foreclosures to their advantage. This immigration influx began around 2008, when the real estate market was falling and South Florida, especially Miami and Ft. Lauderdale, was undergoing mass foreclosures. At the same time, Brazil’s real estate market had an upsurge in costs, so the depressed prices in the United States provided a haven.

Along with luxury homes, Brazilians love shopping and brand names. Miami’s South Beach is saturated with boutiques and high end shopping – compared to the prices in Brazil, our luxury commodities are cheap and easily affordable. This ends up not only being profitable for the consumers, but for the economy as well.

Frank Nero, the head of Miami-Dade County’s economic development agency said, “Brazil is our China. That’s where the economic opportunity here is. … Much as China is to perhaps other areas in the United States, because of our culture and our language, our greatest opportunity is to the south of us. And Brazil right now is the area that I think has the greatest opportunity and potential for us. …Wise folks will be learning their Portuguese.”

The real estate market has been taking small steps toward stabilizing, but this trend we see with Brazilians is one very large step.

The fall of South Florida’s real estate market has deeply affected first-time homebuyers. Even though homes are becoming more affordable, banks are not lending the money these first-time homebuyers need.

Unfortunately, first-time homebuyers are necessary for a healthy real estate market. First-time homebuyers should account for 40 percent of national home sales, whereas this year they only accounted for one third. These buyers are often young and stimulate the economy when they buy and furnish homes. When they sell their “first home,” they usually buy a bigger property, further benefitting the real estate market.

First-time homebuyers are having a particularly hard time in the South Florida real estate market. There has been a recent influx of investors from Brazil willing to pay for homes in cash. When a homeowner is looking to sell, they want not only the highest offer, but the best as well. This means that the first-time homebuyer is left in last place, struggling to find a home.

Even though South Florida’s real estate market is strengthening, the difficulties are not yet over.

Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.

To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today.

Since Meridian Trust recently opened an office on the West Coast of Florida, we thought we’d highlight a new area of Florida’s Southwest real estate market investors may not be familiar with.

Real estate experts and economists believe recent figures point to rising prices and increased sales, for Tampa Bay’s housing market. They base their optimism on the following:

• The inventory of homes for sale has fallen to levels not seen for years. The lower the supply, the stronger the market. The area has less than a six-month supply of unsold homes, meaning it would take about six months to sell the houses currently on the market.

• Real estate professionals see more people inquiring about putting their homes on the market. The owners are not in distress, and their houses typically sell faster because the homes have not been neglected.

Gains in prices and sales are good news in a state decimated by foreclosures and falling values since the housing market imploded.

Although lenders tightened borrowing standards, some sales could be attributed to mortgage rates hovering at an all-time low of about 4 percent.

As the inventory of unsold homes continues to drop to levels not seen in more than five years, median prices are also climbing. The average single home sales price over the past year has been $308,151 while the average median sales price has been $215,288.

Scott Brown, chief economist with Raymond James in St. Petersburg, said home prices and sales should rise gradually, as long as the economy doesn’t take on any major ripples.

“We have a long way to go before a full recovery, but we are on our way,” he said.

If you are interested in investment opportunities on Florida’s Gulf Coast contact our Tampa Office at 813-675-0572.

Meridian Trust has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell, i.e. making return on their investment.

Article summarized from: http://www.tampabay.com/news/business/realestate/are-stars-finally-aligning-for-tampa-bay-housing-recovery/1211089