Columbia SC Real Estate Blog

There is a saying that ”Cash is King”. For those people who have cash, Columbia SC Real Estate can be a very good investment. I am seeing investors loaning money for 1^st mortgages at 12-15% on secured 1^st lien positions with a low loan to value position. An example would be a loan of $50,000 to a homeowner needing cash on their paid up home valued at $225,000. The homeowner who has credit issues pays monthly interest of $500 on a two-year note with the house as collateral. That is a very good return with the house as security. If the seller defaults the investor gets the house. If the payments are paid timely everyone is happy with the deal.

Before entering such an agreement make sure the value of the house is there via a Realtor market analysis or an appraisal. Make sure that the seller has title and there are no liens on the property. It is important to have insurance as a prerequisite for the deal with all closing costs being paid by the Homeowner. Of course you want an attorney to close the deal with title insurance protecting you and a survey. It is best that you physically go to the house to check out the condition and location to determine what the house is about. I don’t suggest doing blind deals. Next you want to find out the financial capability of the Homeowner to determine the likelihood of their servicing the debt. People have credit challenges for a variety of reasons and getting loans from banks are much more difficult today.

Also, consider a Columbia SC Rent To Own scenairo or Columbia SC Lease Option.  A good place to advertise to secure these types of loans is on the Internet. Craig’s list is one venue to put an ad under Real Estate loans. State your terms specifically to attract those people that you find most desirable. There are many people looking to borrow and fewer investors to lend. You are in the drivers seat and can dictate the terms you feel most comfortable with.

As far as tax consequences, interest income is not subject to social security. Depending on when you structure the deal you can even have balloon payments at a certain time, or in intervals reducing the principal and risk. I strongly advise always having a first lien position to avoid possible foreclosures and getting shut out at the closing table.

For many Americans retiring to Florida is part of the American Dream. Thoughts of the Sun in the Fun, Golf, Tennis, Water Sports, and Fishing are a real lure. The thoughts of no snow, continuous rain, and less congestion in certain other states are certainly inviting to escape from. Florida has done a great job marketing their state. Television has painted a euphoric setting awaiting everyone. It sounds so——-so good. When can we pack? Developers and mosquitoes lay in waiting for the Snow Birds heading southward for discounts to get into the restaurants first as Early Birds. It doesn’t get any better then this Sam says to Jane as they put their house on the market leaving lifelong friends, family and surroundings.

What is wrong with this picture? Many new residents begin to settle in, and so does reality. Higher Property taxes, Home Insurance, Hurricane and Flood Insurance awaits you. Add to that Condo and Homeowners dues, golf memberships and fees as well as assessments, and we have the recipe for a not so sunny adventure. Homeowners now selling their homes in many parts of the country are not realizing the profits they once did. There homes are taking longer to sell in most cases but they are still heading south. Some that could afford it have the agony and the ecstasy of having 2 homes. The agony comes in if they want to sell in a tight Buyer’s market.  We’ve seen this in the Columbia SC Real Estate Market.

Where does the problem come in? Many people, myself included, often think that a place you visit that seems so idealist is the same as living there. Not necessarily so. Some retirees to Fantasyland soon realize they don’t like the heat, lack of seasons, expenses, tourists, the drivers, the density, the homeowners associations, and assessments that await them. The beautiful ocean now becomes an ominous body of water during the hurricane season and the yearly fear factor becomes reason for unsettling. Now here comes the problem. You paid top dollar and trying to sell now becomes difficult to impossible. Your hard-earned retirement nest egg now becomes scrambled, as you might have to sell for thousands of dollars less then you bought.

What can I do to avoid this dilemma? Don’t buy initially is my suggestion. It is better to rent and test the waters. Try to find out as much as possible all the negatives before you get trapped by all marketers touting Shangri-La. It is not the same as buying. It is a better test then none at all.

Broker Bob Mandel, The Real Estate Advocates Network- Columbia SC Real Estate Your Agent of Change Where Our Principles Come Before Our Profits

There are very few Columbia Real Estate sellers smiling about selling their home. Prices continue to plummet with little positive indicators around the country of turning this downturn around. Unemployment has risen, and mortgages are harder to get. People who might be buyers can’t sell their homes. What is the answer for today’s seller? The answer depends on what are your needs versus your wants. Simply stated, do you have to sell your house or do you want to. Are you required to move due to financial necessity, job change, going to school, health issue, or a family or personal matter? Or, do you just want to move? One is more of a have to, and the other falls into the want to category.

If you have to move flexibility is the key. In Columbia Real Estate You must try everything possible to make it happen. You know the basics: get an inspection, clean, de clutter, and fix. And get a flat fee Broker that allows you to price the house below your competitors. If you have some time to market yourself, get an appraiser to help you determine a price. Be prepared to lower the price, offer closing costs, agent bonuses, and allowances for repairs or updating. Whatever it takes to move on if you have to. You must get it out of your head that you will not sell at a loss. If you can afford to lose and move on you can make it up. Staying is not an option is the key to selling. Regardless of your initial sales price be prepared for lower offers. Remember, do not take it personally, this has to be a business decision.

If you don’t have to move, consider renting, lease options, or owner financing if you are able. How much do you want to move? This is the classical risk and reward scenario. If you can’t sell, consider making some renovations or adding on to your home. Be careful about over improving and consider if the improvements will make you want to stay and enjoy your home.

Broker Bob Mandel, Real estate Advocates Network

Our Principles Come Before Our Profits

Many agents if in the library would fall more in the Fiction section than in the Non-Fiction one. The Agent, Promoter will tell it more of what you want to hear, rather then like it is. Let’s try to dissect the truth from the fiction. To begin, all agents, like people, are not created equal.  Many have integrity and try to do the right thing and many do not. Remember, people are in business primarily to make money, not to serve others and work for nothing. The typical agent only makes money when they close a deal. In the business listings are the best way to get buyers to use your services as an agent to buy your house or another one from your listing agent.

Where does the fiction begin? Typically, it starts with the agent making you think they have more experience and sales then they actually have. A number of agents have one or 2 weeks of training and few sales annually. You may socialize with them, go to church with them, or they may be suggested from a common friend. The facts are these are not good indicators of their ability or success. A better indicator would be some record of their longevity in the business and a computer printout of their prior sales. This is readily available in most MLS’s data banks. Check out the price ranges and locationsthat sales were accomplished by the agent. If the agent gets defensive about sharing this with you, don’t use them. If you are shy about this, blame it on your boss or mother.

The fiction continues when agents tell you that they can get you more than your home is worth. This is rhetoric designed to get the listing. When the house doesn’t sell, the line comes across you are priced too high. They knew it to start with, but they wanted to have the listing to manipulate you to list with them. A way to check on the price objectively is have an independent appraiser appraise the house before you list.

The rest of the stories revolve around marketing. They promise you a lot. Much of it if they do it is worthless as far as getting buyers. It is promotional. Open houses, newspapers, agent open houses, magazines, and e-mails to agents are very improbable ways to get a buyer. The MLS, and the Internet is by far the best shot. Oh by the way, the agents bragging about selling your house almost never does. They list it and someone else sells it.

Now this is the rest of the story. I list over 100 houses a year and I can prove it. Most are sold by other agents which I tell my sellers. Location, price, and condition sell houses more then the listing agent. And, that is a fact, not fiction.

Broker Bob Mandel, Real Estate Advocates Network

Our Principles Come Before Our Profits