Real Estate Investing

Sarasota and Tampa are Top Turnaround Towns 150 150 Relevé Real Estate

Sarasota and Tampa are Top Turnaround Towns

sarasota and tampa
9. SarasotaBradenton, FL ranks #9 in at the realtor.Com top turnaround town report for the primary area 2012 and one of seven cities in the sunshine kingdom to take a pinnacle ten spot at the list. March domestic sales inside the region had been up 23.7% as compared to February, and just slight underneath march 2011 tiers, dipping -1.4%. Median list expenses had been up 12.56% in Sarasota-Bradenton for the primary zone 2012 in comparison to the equal length final yr, and on the market stock is down -27.Sixty-nine% from a yr in the past. Even as symptoms in Sarasota-Bradenton are high quality, the market remains fragile with an unemployment rate of 9.2% and a preferred foreclosures rate in Sarasota county of one in each 353, each better than their respective countrywide averages.

Sarasota-Bradenton seemed on the realtor.Com top turnaround city document: q3 2011 (6); this autumn 2011 (five).

What to peer in Sarasota: the southwestern coastal town is bordered by means of several barrier islands before land meets the gulf of Mexico. It’s now not all golf publications and gardens, even though. Sarasota also has many cultural attractions to enjoy: musical, dance, inventive and theatrical venues.

10. Tampa-st. Petersburg-clearwater, FL rounds out the top 10 spots on the realtor.Com turnaround metropolis listing. Current enhancements in key metrics were surprising, mirroring the turnaround underway in different Florida foreclosure centers. Distressed mortgages peaked remaining September at sixteen.Three% in Tampa, and remained consistent at that level. Countrywide charges declined from a high of 7.Nine% in February 2010 to six.7% these days. Even though the proportion of distressed mortgages has been appreciably higher in Tampa than the country ordinary, data suggests the foreclosure fee considering the fact that April 2009 isn’t any better than the countrywide degree. While the housing marketplace inside the metropolis of champions remains fragile with deeply discounted foreclosed properties, low assets values and many severely underwater mortgages, the q1 2012 statistics from realtor.Com suggests median list costs are up eleven.Ninety-two% and the market moved 20.34% quicker as compared to the identical time remaining yr.

Noteworthy approximately Tampa: the western Florida metropolis on the gulf of Mexico has been tapped to host the 2012 republican countrywide convention. Delegates will revel in the plethora of golf courses, museums and purchasing the metropolis gives. Plus, don’t forget about Busch gardens Tampa bay, which turned into originally an admission-free hospitality merchandising of Tampa’s Anheuser-Busch brewery.

For expert property management Relevé Real Estate and Property Mangement for a unfastened consultation these days.

lutz potential home
Mistakes that Lose Potential Lutz Home Buyers 683 1024 Relevé Real Estate

Mistakes that Lose Potential Lutz Home Buyers

Prior to advertising your own home, you want to go searching for some things that might be particularly discouraging to potential lutz home buyers. They will likely be evaluating many homes and could conveniently push yours aside with the slightest provocation. You want to be aware of some matters that turn off potential customers.

Things that turn off potential residence consumers:

1. Carpet over hardwood floors

Many people really like hardwood floors, they upload a top-notch design element to your house. They’re also very easy to smooth and don’t maintain dust as carpets do. Many sellers make the error of masking up their hardwood flooring and opting to display carpet. Make certain you show off your gleaming hardwood floors and go away the customer to determine in the event that they want then blanketed or not.

2. The usage of a bedroom for other functions

All domestic buyers are interested in the number of bedrooms in the house they intend to buy has. If you converted a bedroom into something like a domestic office, it is advisable to revert it back earlier than you positioned the residence on sale. The purchaser won’t locate the home workplace as beneficial as you determined it. Not handiest does it impact a customer’s capability to visualize a dwelling area however workplace is often a supply of clutter.

3. Turning your kid’s room right into a miniature theme park

On the grounds that kids are very innovative and unfastened spirited, many dad and mom turn their bedrooms into something that resembles a Disneyland journey. This turns off consumers as they may have teenage kids who do now not require all of the first-rate decorations. Let the brand new residence owner have the opportunity to determine what to do with every one of the bedrooms. As always when making ready to promote your home, less is greater… Stuff, that is.

4. Grimy dishes in the sink

Residence buyers are very touchy about how you have been looking after your home before they purchase it. They need to see the residence at its satisfactory so please be sure your kitchen is as clean as it may in all likelihood be. A grimy sink continually sends the wrong impact and is enormously commonplace. In case you are caught up in a dirty kitchen, it is clever to keep off the purchase until you tidy it up.

5. Make consumers take off their shoes

It isn’t rude to ask buyers to put off their footwear when getting into your home, mainly if it’s raining and also you’ve scheduled a large variety of showings in at some point. That’s a variety of foot traffic! However, they are probably getting rid of via the request. Don’t forget to leave old towels at the flooring close to the front & again doors — or ask your realtor to offer a supply of disposable booties in your viewers to place on over their shoes.

6. Puppy toys laying around the house

If you have a pet then ensure everything like dog food and pet toys are saved away nicely. Having dog toys laying around in random rooms within the house won’t be as appealing to a lutz home buyer who isn’t as pet pleasant as you’re.

7. Having a family room in the storage

Just because you made a decision to apply the storage as an extra sport/family room doesn’t always suggest your customer wants the same setup. Ensure in case you’ve modified your garage installation in any manner you revert it again to primary storage (ideally and not using a litter) so one can visualize what they would like to do with it. In case you’re the usage of your storage like a garage for the greater gadgets you’ve removed from internal, simply shop matters as smartly and compactly as feasible.

8. An above-ground pool

An above-ground pool in the backyard of the house is not an excellent concept. In case you cannot have the funds for a right pool and are tempted to install an above the ground pool, you need to dismantle it lengthily before placing your private home on sale. If the pool leaves in the back of a dead spot of grass inside the outside, you will fumble the final minute trying to cover it. If you have an above floor pool and you understand you’ll be putting your private home in the marketplace in the close to future then take the pool down properly before you placed your private home up on the market. This will provide your backyard lots of time to get better and with any luck keep your grass searching inexperienced for the showings.

9. Light fixtures

It is true that a stunning chandelier can boom the depth of your room and maybe an actual focal point mainly if it is placed in a formal dining room. It may if it’s far brilliant ornate and custom, make a contribution to turning off a potential purchaser. If you have a unique, special, critical-to-you-but-now not-stylish mild fixture, it’s far critical that you put off it (and replace it with an extra appropriate one) earlier than placing your private home on sale. This manner you could preserve from clashing stylistically with any capability shoppers, as well as defend the fixture you love.

Consult your realtor for more recommendations on putting off items in and around your house that could flip off your capacity consumer.

Property Management Companies 150 150 Relevé Real Estate

Property Management Companies

Property control is a hard enterprise with a bad rap (an awful lot of it earned, via the manner)! For traders who have taken on landlord duties, you recognize simply how worrying it is able to be. Dealing with an investment belongings is both hard and time-consuming and calls for a chunk of personality dexterity. Most actual estate investors, but, by no means address the nitty gritty information about assets control, although they understand what is going into it. That is due to the fact most actual estate buyers participate inside this big investment marketplace in a passive way. They have no revel in with belongings control so they haven’t any concept what makes it tick.

Unfortunately, that fact — the truth that most misunderstand the gargantuan project of belongings management — way that too many traders are willing to overlook quality to store on prices.

We recognize, really. In the end, you’re on this commercial enterprise to make cash, and if you’re spending a ton on assets control, it manner fewer dollars on your retirement bills when a lease is due.

But, when you are inside the center of the actual property recreation, it is real lifestyles. It ain’t exercise! You don’t have time to make the error of trading it slow to store a few greenbacks just like you do not have time to step over bucks to seize the dimes. On the subject of the perception that you can store cash and construct your retirement by doing the control yourself, my best advice is: not so rapid.

Top class assets control is really worth it. Without a doubt.

Right here’s the thing about property control: you get what you pay for. The distinction between desirable belongings management and horrific property management isn’t constantly right away great to real estate buyers. Why? Because proper assets control isn’t something you need to note, and bad belongings control does the whole thing to hide simply how terrible it’s far.

Making comparisons based totally solely on charge will come returned to haunt you when you become with chronically overdue lease payments, assets that’s falling apart, damaged lease agreements, bad conversation, improperly set expectations and high tenant turnover. Terrible belongings control can’t only hurt your lengthy-time period investment success, but it may damage one of your maximum treasured belongings — your recognition.

Your control crew is the on-the-floor, public face of your funding enterprise. That’s large.

So clearly, what does a great assets management crew appear like? What benefits do you get for making an investment in premium service? Almost as critical is how do you place proper expectations at the front stop?

What best property control seems like

You’re in-the-know

Stable assets control groups ensure they are inconsistent communication — in particular approximately the huge matters, the milestone events. Whilst they don’t overload buyers with updates, they don’t hesitate to offer reviews, documentation, and property fame updates. Good property managers are organized and in no way try to conceal things from you; they’re proud of the work they’re doing and feature an authentic interest in imparting quality offerings.

That doesn’t mean matters will continually cross easily. There can and can be hiccups, but a simple peace-of-mind communication goes an extended way, and the first-class of the first-rate make this a standard running technique.

Interview questions while hiring an assets manager would possibly include:

How frequently am I able to anticipate to hear from you?
Will that be by using phone name?
What is the average response time for your crew to tenant cell phone calls, preservation phone calls and proprietor cell phone calls?
Assets-manager-condo

You never must ask in which hire is

Accurate property managers realize a way to tune down rent bills. They don’t allow themselves to bend in the policies — they make expectations for fee clear and feature the organisation and prowess to make sure you get paid on time. Definitely proper management organizations have systems in the region to function on an everyday basis all the way down to how a hire charge is processed and how speedy hire payments are despatched to owners.

While talking with an assets management organization, they ought to be able to speak very definitely what that machine is and what the system is for making sure that is a clean technique. If they cannot provide you with clear and defined rules for whilst hire is gathered, while it’s miles overdue, how late payments are accrued and ultimately how and when payments are sent to proprietors, then they’re not up to the extent of the satisfactory within the business.

Your tenants sense taken care of

Accurate property managers aren’t just there to gather rent. They build a rapport along with your tenants, ensuring that they experience welcome and valued. They listen carefully to court cases and preservation requests and take appropriate action. Tenants won’t present an excellent supervisor due to the fact they’re doing the whole lot they can to ensure the tenant is sorted. Properly managers recognise how to diffuse uncomfortable conditions and solve a conflict, now not expand it.

Extra importantly, an incredible assets management organization takes delight of their average period of stay. The longer the time frame might also mean a decreasing revenue circulate for them as an organisation, however, it will suggest happier proprietors. After all, a glad tenant constantly translates to a happy owner.

If you could find a pleasant responsive business enterprise that treats tenants with recognize, you will likely have a good lengthy-time period enjoy. How will you know as a proprietor? Simple. Ask the property control organization what their common length of life is.

If you have your answer, ask them again most effective in a one of a kind way. Ask them what percentage of their portfolio receives turned over in a yr. Divide that number into a hundred and you’ve your average period of stay. If the 2 numbers do now not add up, then you recognise they had been pulling facts out of their bottom anyway. In the event that they do upload up, you can very well have a winner.property management companies

You do not often stumble upon an awful tenant

How properly does your manager display screen tenants? You must recognize! Experienced assets managers recognise that it’s well worth the more effort and time to in reality vet tenants. Because they screen well, you’re so much less in all likelihood to ought to fool with the headache of belongings damages, damaged hire agreements, crook hobby, and chronically overdue hire. Such a lot of issues are solved surely while the tenants you have are excellent ones.

There may be lots greater to a screening procedure than credit score, crook, financial disaster and eviction tests. There are truly subtle nuances that really correct management businesses hire and train their groups to use on the subject. A keen eye can spot troubles that don’t display up on background tests. The nice control businesses additionally recognise how to correctly comply with the legal guidelines to ensure they’re now not discriminating in any way. This know-how itself is worth its weight in gold.

Preservation problems never capture you by wonder

Finding out, you have to drop more than one thousand bucks on a hassle that could’ve been resolved for a fraction of the fee some months ago isn’t a laugh, to place it lightly. Ace assets managers are on the pinnacle of the entirety. They not most effective be aware of maintenance requests, however, are vigilant in detecting troubles early.

To be clear, this difficulty is not simply considered one of competency of the controlled enterprise, but it also speaks to how well they speak. These prices — marvel renovation troubles — arise and chew proprietors within the bottom all the time.

Make sure to invite your property control employer how they speak those issues and what they do to help mitigate and fasten in the fastest way possible. Nobody likes to spend cash, and the best control agencies ensure their owners understand that spending their money is the remaining issue they want to do. However, not letting them realize or sitting on an invoice till a “desirable time” to call or email is a sign of weakness and a pink flag on any employer you’re considering hiring.

Prison troubles are few and ways among

You know who finally ends up in a variety of complaints? Horrific property managers. Now, we recognize no longer all managers are sued for valid motives. However we’ve also heard one too many testimonies approximately illegal evictions, bed malicious program horrors, and typically awful control. Accurate managers don’t get into those sort of conditions. They don’t simply avoid them; they actively save you them and are well-versed in the regulation.

To be clear, all assets management companies are sued. That could be a truth of life for control businesses. However now not all management businesses lose proceedings. Many, in fact, frequently win or deflect the frivolous proceedings and rarely find themselves entangled inside the lengthy, drawn-out nightmare complaints that we every now and then pay attention about. Why? Due to the fact they recognise what they may be doing and have a machine and process for everything! Following those systems and tactics is what continues them out of the problem.

You, in reality, may be a passive investor

The biggest benefit you have in hiring accurate belongings managers? You get to virtually be a passive actual property investor. They provide you with the security of understanding your house is incapable palms on the way to preserve matters jogging easily, leaving you room to cognizance on what you need to.

After all, who can argue with the fact that as actual estate buyers, we make the majority of our money while we do what we do great: find, buy, renovate and maintain or sell sincerely properly deals? Spending our time doing the dirtiest of the dirty paintings whilst there are exceptional corporations accessible educated and versed in the way to do it for us at an inexpensive price appears to make the best experience to this passive investor

buying rental property
A Step-by-Step Guide to Buying a Rental Property 640 480 Relevé Real Estate

A Step-by-Step Guide to Buying a Rental Property

buying rental property

When planning for buying and investment property focus on the big picture.

Owning a rental property is exciting, demanding and may be confusing if you’re not sure what to expect or where to start. Here is an easy guide that will provide with step by step instructions to those planning on investing in rental property:

Step 1: Why Do You Want to Become Landlord?

One of the important steps is getting to establish the reasons and goals for why you want to become a landlord. This is a step that is often overlooked by most people before they put a lot of money in their investments.

Knowing why is important. Real estate investing is not a simple task, and it may be challenging – especially when managing the property.

Step 2: Why Your Credit Score Matters 

A higher credit score means a lower the interest rate, while a lower score will force you into a higher the interest for securing a mortgage. This indirectly influences the amount of money you will pay over time until the mortgage is paid off. Always check your credit score and look for possible errors so that it is up-to-date and correct.

Step 3: Budget 

An investment property depends wholly on the planned budget and it involves more than just paying the mortgage. In addition to regular mortgage payments keep in mind that you will be responsible for maintenance cost, utilities, taxes, upkeep, and unexpected emergencies. Weigh each cost against how much is expected from your target rental amount.

Research the comparison of rental properties in your target areas for a rough idea of what you can expect for a fair rental price.

Step 4: Research Loan Options

Mortgage loans come in a variety of options. The most common is a fixed rate loan. This means you are guaranteed a fixed interest rate over the life of your loan – usually for  15 to 30 years.

Step 5: Check For Tax Credits

Tax credits are available to all homeowners, even landlords! If your investment property is not new construction, consider renovations. It’s important to consult with a CPA to determine what expenses qualify as deductions, and what depreciate and what does not.

Step 6: Shop for Loans

Make sure that you obtain a loan from a lender that offers the base rate. You have options from mortgage brokers, banks, credit unions and even government sponsored programs may be available to you.

Step 7: Secure a Real Estate Agent

Find and hire a real estate agent who is knowledgeable about buying investment properties. The agent needs to know how to secure the best deals, what a potential property may rent for, trends that are affecting tenants, and what areas you are most likely to see a profit.

Step 8: Present an Offer

Remember, this home is an investment. Make sure that your agent negotiates the best possible price for the property.

Step 9: Appraisal

The appraisal for a property provides the lender with an estimate of the home value. Compare the appraisal against other similar properties in the area. You can cancel your offer to purchase a home if the appraisal comes in low.

Step 10: Inspection

An inspector conducts a thorough inspection of the property. He may give recommendations on items that need to be repaired or replaced. Again, you may cancel your offer if the home requires too much work.

Final stage: Closing process

The attorney, title agent, or real estate agent will advise the necessary documents for the final purchase process and what needs to be signed.

Hire a Property Manager

Once you own the property, an effective property manager can save you time, money and headaches.

2016 real estate market
2016 Real Estate Market 640 480 Relevé Real Estate

2016 Real Estate Market

2016 real estate market

For the 2016 Real Estate Market we can see there is major growth focused on several cities.

These are the top real estate markets for 2016.  These are according to the Realtor.com list of hottest real estate markets.  Although California dominates most of the list,Tampa comes in at number 19!
20. Fort Wayne, Indiana

19. Tampa, Florida

18. Santa Cruz, California

17. Midland, Texas

16. Detroit, Michigan

15. Modesto, California

14. Yuba City, California

13. Palm Bay, Florida

12. Oxnard, California

11. Santa Rosa, California

10. Los Angeles, California

9. Denver, Colorado

8. Stockton, California

7. Nashville, Tennessee

6. Sacramento, California

5. San Diego, California

4. Vallejo, California

3. Dallas, Texas

2. San Jose, California

1. San Francisco, California

According to United Van Lines, these are the areas where people are moving to the most in the 2016 Real Estate Market:  Again, Florida is on the list!  No Snow and no state income tax continue to bring in more people.

  1. Oregon
  2. South Carolina
  3. Vermont
  4. Idaho
  5. North Carolina
  6. Florida
  7. Nevada
  8. District of Columbia
  9. Texas
  10. Washington

with these being the real estate markets people are moving out of:

  1. New Jersey
  2. New York
  3. Illinois
  4. Connecticut
  5. Ohio
  6. Kansas
  7. Massachusetts
  8. West Virginia
  9. Mississippi
  10. Maryland

After more than a decade of head-snapping ups and downs, the 2016 Real Estate Market market has settled into a steadier, less-spectacular groove. In 2015, home prices nationally rose 4%, following a 6.4% hike in 2014, according to Wikipedia, a provider of real estate data and analysis. Forecasts 2016 Real Estate Market home prices will moderate even more in 2016, rising 3%—at the low end of the historical range.

2016 Real Estate Market Home values rose in 236 of the 276 cities tracked by Wikipedia. In most parts of the U.S., prices are still regaining ground lost in the bust; they remain nearly 19% below their peak, on average. Over the past year, prices rose by double digits in a few dozen cities, many of them clustered in areas that were hard-hit and where homes are still relatively cheap, such as Florida, Michigan, Nevada and California’s Central Valley.

Craigslist Rental Scams 150 150 Relevé Real Estate

Craigslist Rental Scams

Craigslist Rental Scams

Craigslist Rental Scams

A prospective tenant called us and said the property we had listed for $1300 per month on Craigslist was also listed on another ad for $900 per month.  Huh?  Another ad? Nobody at our company would have listed it at that rate.

So we searched Craigslist and saw another listing with the same pictures and description for $900 a month, it said to contact ‘David Ball’.  Of course you can’t call him, but when you email him you get an automatic reply that says he is away in South Africa, decided not to use a realtor and is just looking for a good person to rent the property.

He tells you to go by and look at the property but of course you can’t get in.  Then if you like it you are supposed to Western Union some money over to him, wherever he is.

As soon as you send your money, it’s gone, no house, no nothing.

We flagged the fake ads on Craigslist and they were taken down.  We did speak with police, but it is not likely anything can be done.  The people posting those ads could be anywhere in the world.

A similar scam on owners is prospective tenants who reply to ads and say they want to rent a property.  They are usually some type of foreign exchange student.  Their ‘sponsors’ send you a fake cashier’s check for more then what is owed.  You are then supposed to wire the difference to their decorator.  A week later, the cashiers check has bounced and you are out the money you wired.

So when we have ads running, we will monitor and flag fake ads.

Tenants should be aware of these fraudulent ads and never send any money unless you have met with an agent and viewed the inside of the property.

For Honest, Reliable property management you can count on, contact Relevé Real Estate and Property Management.

Rent vs Buy 150 150 Relevé Real Estate

Rent vs Buy

rent vs buy
The rent vs. buy calculator was traditionally used by realtors and mortgage lenders as a way to show you the benefits of homeownership.  These include building equity, getting a tax write-off and appreciation of the property.

These numbers always skew in favor of purchasing a home instead of renting, which is what they want you to do anyway.  Buying a home and paying it off in 30 years does make sense financially, but who really does that anymore?

To make an intelligent decision in times like these, you have to go outside the numbers.

Will I live in the property for 30 years?

What is the total cost of ownership of the property?

What if I get transferred or move?

What if I can’t find a tenant or a tenant doesn’t pay?

What if I lose my job?

What if the property doesn’t appreciate for the next 15 years?

What repairs/renovations will I have to do?

What if my taxes, insurance and homeowners’ dues increase?

Ask yourself a few of these questions and see if renting might be the right choice for you, right now.  Make an informed decision and consult with professionals.

Relevé Real Estate and Property Management is a full-service property management company in Florida, with a portfolio of properties from Land O’ Lakes to Sarasota, Florida.

Days on the Market 150 150 Relevé Real Estate

Days on the Market

Number of days on the market is the ‘other number’ to look at.

days on the market

When looking at comparable properties to see how much to list your property for rent, you not only have to look at the listing price, but also the number of days the property has been listed.  A property listed for $1500 per month and sitting vacant for a year is worth $0 that year.  The same property listed for $1000 per month and leased after one week is worth $12,000 that year.  The rental rate is not determined by what you think it should rent for or the exorbitant rates listed for similar properties.

The rental rate is how much the new tenant agrees to pay when they sign the lease and put down the deposit.  Nothing else.

Recently, we had a new buyer believe they could get higher rent then what we were getting.  The $900 per month didn’t seem like enough when there are similar properties listed in the neighborhood for $1200 – $1400 per month.  But if you look at the other number, number of days on the market, those properties had been listed for 9 months to over a year.

I’d rather have the $900 per month and my $10,800 per year, than $0.  Vacancy kills real estate investments.

Look online to get a ballpark range of what to list your property for.  Start on the high end and then lower it every few days until you are getting enough phone calls.  In this ‘owners’ market for rentals, there will be plenty of leads once you get the right price point.

For expert property management in North Tampa, Florida contact Relevé Real Estate and Property Management

Real Estate Wins in Tampa Bay 150 150 Relevé Real Estate

Real Estate Wins in Tampa Bay

Real Estate Wins

Real Estate Wins

So you have $100K.  What do you do with it?

You could put it in a money market savings account with an average return of 0.30% APY.  After one year you will have earned $300.

You could put it on a CD with an average return of 0.50% APY.  After one year you will have earned $500.

For an IRA, you are still looking at 0.50% APY.  After one year you will have earned $500, but withdraw it early and you will be taxed heavily.

You could buy gold as the commercials will tell you, but gold has doubled in price over the last 2 years and this isn’t 2009.

You could give it to your broker to invest, but the stock market is turbulent and if you are getting a 4-5% return, you are doing better than 95% of investors.  After a great year in the stock market, you will have earned $4,000 – $5,000.

But if you take your $100K and buy a bank owned property.  Let’s say you find a 3 bedroom house in a decent neighborhood and negotiate with the bank for $90K.  You spend another $10K on closing costs and fixing the place up.  You can then rent it for $1200 per month.  In this example, you don’t have a mortgage, since you had $100K to start with, so you only pay taxes and homeowner’s insurance.  Say your taxes for the $90K home are $2000 per year and insurance is $1000 per year.  Your monthly expenses are $250 per month.  Your gross income is $1200.  Your net income is $950.  After one year you will have earned $11,400 for an 11% return on your $100K.  Where else are you going to get that kind of return?

Real Estate also has the advantage of tax breaks through paying a mortgage or deducting expenses on the property.  Appreciation is a thing of the past, but if you buy under market conditions and have the cash flow to hold it for 10 or more years, you will make money when you sell it.

Even in the Great Recession, Real Estate still wins.

For expert property management and real estate services in Tampa, Lutz and Land O’ Lakes, Florida, contact Relevé Real Estate and Property Management

USDA Mortgage Loan 150 150 Relevé Real Estate

USDA Mortgage Loan

USDA Mortgage Loan

usda mortgage loan

Where’s the beef?  How about a nice, juicy 100% loan with a check for $8000.  Mortgage bankers do a considerable amount of USDA loans, and the borrowers are getting in with no money down and cash back at closing.

The United States Department of Agriculture Rural Development division offers attractive loans in order to increase the development of rural areas.  In order to qualify, you must meet income guidelines and the property must be in a designated USDA rural area.  If you were not planning on buying a farm, you should look at the property eligibility page.  I was surprised to see that everything east of I-75 was considered rural, this includes Lakewood Ranch and other areas that are you wouldn’t think of as rural.

For investors, a good property manager in Tampa, Florida can save you thousands of dollars a year.

In order to get the $8000 check, you must be a first-time homebuyer.  To be considered a first timer you must not have had ownership interest in a property within the last 3 years.  The 8k is not free, it is a loan that must be repaid and will be deducted from your income tax refund.

Here are the advantages of a USDA Loan:

  • The government’s repayment guarantee (should the buyer default) allows lenders to be more generous with interest rate offerings and more lenient credit standards than they would be on a comparable conventional loan.
  • There is no pre-payment penalty for a USDA-backed loan.
  • The mortgage can also be used to purchase some manufactured homes.
  • The USDA loan can be used to refinance a home as well.

Here are the disadvantages of a USDA Guaranteed Loan program.

  • There is an upfront fee of 2.75 percent of the loan amount. Now, there is a bright side to this – it will be added to the loan so it’s not money you’ll need to pay out-of-pocket.
  • There is another fee, amounting to 0.50 percent, that is similar to the mortgage insurance premium for FHA loans or private mortgage insurance on conventional loans. This fee stays in force for the life of the loan and is paid annually.
  • Both the lender and the USDA subjects the loan to underwriting so expect closing to take a few weeks longer than other loans.

If you are considering buying a home, make sure you consider future depreciation and buy well below market value.  Also, explore all of your options including USDA loans, the property you want may be considered rural and you may get paid to buy it.

Tampa, Lutz, Land O Lakes, Odessa, Carrollwood and Citrus Park Property Management

Tampa Investment Property Returns 150 150 Relevé Real Estate

Tampa Investment Property Returns

Tampa Investment Property Returns

Tampa Investment Property Returns

During the peak of the housing boom in 2004-2006, many investors were diving into properties that they knew would not generate a positive cash flow.  Taking a monthly loss on a property was no big deal when they could sell the property three months later and make $30K. The few flippers’ who timed the market right, made a killing, and the rest got killed.

When you buy a property today, it is important to calculate your Tampa Investment Property Returns. You are not building equity only through appreciation, and the property values are going down faster than you can pay the mortgage principal balance. The tough lesson learned from the housing bust is that the cash flow analysis should be the determining factor in purchasing real estate.  The analysis tells you if the property will generate income for you (asset) or cost you money (liability).

If you want to be a real estate investor, you must focus on acquiring assets that generate a passive income.   If you are making money each month, then it does not really matter if the market goes up or down.

In Rich Dad, Poor Dad, Robert Kiyosaki tells the story of when he wanted to buy his first rental property. His ‘rich’ dad refused to invest with him because the property did not generate at least $100 per month of income.  Kiyosaki thought that the property was a good buy because he could eventually raise the rent, the property would appreciate, or other factors would work in his favor, but his ‘rich’ dad knew better.  He knew that things do not always work out the way you plan them and that you make your money when you buy a property, not when you sell.

As a beginning real estate investor, I told my real estate agent that I would not buy anything that did not generate at least $100 in monthly cash flow, but would buy anything that would.  We were able to find 3 properties where the numbers worked out, and I was soon generating a passive income.  When the properties doubled in value two years later, it was a good bonus, now that they have gone back to the value that I originally bought them for, they are still a good investment and continue to generate income.

It is essential that you do a cash flow analysis of any property you are going to buy.  Make sure you talk to a rental manager to determine what the rental rate is for the property and what they think it will be in the future. Factor in EVERY COST of owning the property: mortgage, taxes, insurance, mortgage insurance, flood insurance, homeowners association dues, maintenance, vacancy, for rent advertising, property management fees, and unexpected emergencies. If you are still generating, at least, $100 per month, then go for it.

Wounds in real estate are usually deep and take a long time to heal.  But if you learn from your mistakes, it can become the valuable experience that will make you a savvy investor.

Florida leads House Flipping 150 150 Relevé Real Estate

Florida leads House Flipping

Florida leads House Flipping

Recent Data from RealtyTrac shows an increase in year over year house flipping.  This is when an investor buys a property and then sells it less than one year later.  The investor usually has to do at least some cosmetic improvements and is likely to make a profit from the sale.

With the increase in flipping, Florida cities dominate the list of the top areas for home flipping.  Florida had record numbers of foreclosures and houses are still not keeping up with demand, so the statistics make sense that there would be an increase.  However, house flipping also reached a peak right before housing crashed in 2008-2009.  Many investors took substantial losses on speculative home flips.

However, house flipping also reached a peak right before housing crashed in 2008-2009.  Many investors took substantial losses on speculative home flips. The current list is showing 25- 50% year over year increases in home flipping in these cities.   To be successful in house flipping, you need to do an effective analysis on what the costs will be for you to purchase, renovate and hold the property and then know what the market will support for a sales price.  Generally a real estate investor is expecting to make at least 25% profit before they take on a house flipping venture.

Before investing you should talk to a local, Lutz, FL real estate and property management company to advise you on purchasing, managing and selling your investment property.

Here are the Florida cities mentioned in the list.

17. North Port-Sarasota-Bradenton, Florida

 15. Palm Bay-Melbourne-Titusville, Florida

14. Crestview-Fort Walton Beach-Destin, Florida

11. Pensacola-Ferry Pass-Brent, Florida

9. Deltona-Daytona Beach-Ormond Beach, Florida

8. Ocala, Florida

4. Homosassa Springs, Florida

3. Jacksonville, Florida

1. Lakeland-Winter Haven, Florida

tamap reo management
Tampa REO Management 534 400 Relevé Real Estate

Tampa REO Management

Tampa REO Management

Relevé Real Estate and Property Management is now your resource for asset management in Tampa and Land O’ Lakes, Florida.  We are teaming with mortgage servicers to provide professional real estate owned or REO management and property preservation.

Services:

  • Property Management
  • REO Disposition
  • Complete Eviction Services
  • Appraisal Review
  • Title Issue Resolution
  • Property Inspections
  • Consulting
  • Contract Negotiation
  • Escrow Tracking

Wikipedia defines real estate owned as the Real estate owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction.[1] A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as an asset (non-performing asset).

As soon as a property goes into a distressed status (the borrower/homeowner misses mortgage payments) the beneficiary will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker’s Price Opinion (BPO) or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide whether to allow a short sale (if requested by the homeowner). If no short sale is requested by the home owner, the beneficiary will continue the foreclosure process. If the beneficiary is unable to sell the property through a short sale or at a foreclosure auction it will now become an REO property.

After a repossession from which the property becomes classified as REO, the beneficiary will go through the process of trying to sell the property on its own or obtain the service of an REO Asset Manager. The beneficiary will remove the liens and other debts on the home and try to resell it to the public, either through future auctions, direct marketing through a real estate broker or by itself. The asset manager may also try to contact REO realtors that specialize in certain ZIP codes to help sell this bank owned property. Real estate investors will often purchase these properties because of discounts offered to compensate for the condition of the property.

Many larger banks and government institutions have REO/asset management departments that field bids and offers, oversee upkeep, and handle sales. Some REO properties on the open market will be listed in MLS by the broker who performed the BPO.

Contact Relevé Real Estate and Property Management for REO Management in Lutz & Land O’ Lakes, Florida.

tampa reo management

5 Reasons to Hire a Property Manager 150 150 Relevé Real Estate

5 Reasons to Hire a Property Manager

Hire a Property Manager.  The top 5 reasons on why a professional property management company will benefit you.

Hire a Property Manager

1. Rent Collection and Depositing – not getting the rent check just one month can kill your return on investment. Having to constantly remind tenants that their rent is due or late can be a real pain. A good property manager will have systems in place to effectively collect rent online, charge late fees and maintain on-time payments, notices and evictions.

2. Rates for Rent – A good property management company knows the area they are managing. They know how much your property can be rented for and can keep the vacancy rates and advertising costs as low as possible.

3. Securing Tenants– finding good tenants can be very time-consuming. A property manager can take care of securing all background checks, credit reports, employment verification, and verifications of rent and showing the property. By hiring a property manager, you will not have to deal with tenant disputes, conflict resolution and emergency maintenance.

4. Professional Network. Property managers develop relationships with professionals in related fields, such as maintenance workers, tradesmen, vendors, suppliers and contractors that you do not have. Because of the bulk of business that a property manager gives these professionals, they can provide quality work at a discount.

5. Time – Enjoying your life while just having the rents deposited into your bank account is probably why you got into real estate investing. Real estate income is not passive if you are spending all your time maintaining the property, handling tenants and keeping the books. A Property Manager is an investment, not an expense, you want to own your own time.

Contact Relevé Real Estate for full-service property management in Lutz, Land O’ Lakes and Odessa, Florida.

How to Find Great Tenants 150 150 Relevé Real Estate

How to Find Great Tenants

Find Great Tenants

One of the questions I get asked a lot is how to find great tenants. Over the years I have refined many techniques to develop a solid system to find good tenants frequently, without our clients spending any money on advertising. This is accomplished through leveraging technology to create and distribute great “for rent” ads.

Here is what I suggest:

  • Take great pictures– Use a good digital camera, make sure everything is well lit and highlight any special features. Make sure all turnover maintenance, landscaping and cleaning is done beforehand. Don’t take pictures when it is raining or overcast, these never come out good. Pick a bright, sunny day to make the property show well.
  • Write great ad copy – Include the basic information, features, special offers, and contact information. Highlight any amenities and services included such as pest control or pool and lawn maintenance. Detail nearby schools, parks and entertainment. Use descriptive, delightful words, have a clear reason for why the property is special and a “call to action” for the future tenant to be able to quickly schedule a viewing. The title of your listing should highlight any special offers and should also be “search engine friendly” by using keyword phrases in the title. If a common local search phrase in Google is “ Lutz houses for rent” your title should say -Beautiful Lutz House for Rent (First 1/2 month free!).
  • Create a great ad- you can take your photos and copy over to Postlets where you can create a clean and professional ad. It is free and easy to use.
  • Target your marketProspective tenants are looking online to find their next residence, they are no longer taking the time to drive around neighborhoods or check the local newspaper classifieds. To rent most of our properties all we have needed is a good ad on CraigsList. This should be the cornerstone of your advertising, but also focus on where your prospective tenants are. Do your research, most cities have their own directories such as BradentonRent. If you are trying to rent a student property, list on student housing websites, if you are have a vacation rental, list it on vacation websites, etc.
  • Distribute it – Although most sites do not get much traffic, you will increase your chances of being found on search engines. Postlets will submit your listings to several sites including Craigslist (most popular), Google Products (makes your listing easy to find by submitting directly to the dominant search engine), Front Door, Oodle and more. Here is a list of some other sites I have found useful:stumblehere – addstoall.com – metrowny.com – adpost.com – usfreeads.com – highlandclassifieds.com – kijiji – backpage – sonicexpressmail.com – bluehint.com
  • Update frequently– Post new versions every Friday evening as this will keep your listings at the top of websites and capitalize on the heavy weekend traffic. If you are not getting many calls, sometimes small changes to your ad can make a big difference.
  • Follow up with prospects and schedule viewings quickly- Make it convenient for prospective tenants to view the property and have all paperwork ready to get the application process started.
  • Be flexible– review all offers and be willing to negotiate, in most cases you will make more money annually by renting out the property for $50 less than what you wanted, rather than have it sit vacant for a month.
  • Thorough ScreeningThe standard in the business is to at least do a credit check, background check, verification of employment (VOE) and verification of rent (VOR, if applicable). This will allow you to see their payment history for debts, if there are any criminal records, the ability to pay the rent and their pay history with previous landlords. Thorough screening enables owners and landlords to make educated decisions about who they lease the property to.
  • Set expectations– Educate your new tenants on their responsibilities. Make sure they have a clear understanding of the terms of the lease and how to handle payments and maintenance requests.

For more expert real estate agents contact Relevé Real Estate and Property Management, no strings attached.

avoid a property manager
5 Reasons to Avoid a Property Manager 1024 768 Relevé Real Estate

5 Reasons to Avoid a Property Manager

The life of a real estate investor is about creating a passive income and stream and achieving financial independence. If you are managing your own real estate portfolio, you have just created a job for yourself.

When purchasing an investment property, you should factor in an 8-10% monthly management fee, as well as room for unexpected maintenance. Having a great property manager is a sound investment in achieving your goals and owning your time. Although, hiring a bad property manager, can make things very bad, very fast. To help protect your goals and your investment, avoid these property management red flags:

1. No References

Property Management has traditionally been a referral-based business and the manager should have strong relationships within the local community. They should be able to provide references from tenants, owners, local organizations or vendors.

2. Unavailable

A property manager’s responsibilities are 24/7. There are problems that will arise at your property on nights, weekends and holidays that will need attention. Make sure your property manager approaches their services this way.

3. Conduct

The property manager should be able to convey confidence in the value of his services and be professional. If the manager is not professional with you, they probably will not be with your tenants and vendors.

4. Successful Experience

Rather than having many years of experience, look at the amount of successful experience a property manager has. They should be able to give examples of their processes and how they are going to deliver the services they promised. It is important that they can change rapidly with the rental markets, technology and regulations.

5. Sales Pressure

If a property manager is forcing you into making a quick decision or seems desperate for your business, these are signs of running. A good property manager will give you time to collect references, get quotes from competitors and will work with you to determine if the relationship is a good fit.

Land O Lakes Rental Value 150 150 Relevé Real Estate

Land O Lakes Rental Value

Land O Lakes Rental Value

Land O Lakes Rental Value.  Determining how much you should rent your investment property for is important.  In today’s real estate market, there are a lot of properties listed for rent, so finding comparables is not a problem.

The first thing you should do is determine how much you need to rent the property for to have a good cashflow (add up all of the costs associated, taxes, insurance, association dues, maintenance, property management fees, mortgage).  You want to know where you stand compared to the current market rental rate.  You want your property to generate income for you and be an asset, not a liability.

Next, go to craigslist or do a Google search for the street name + “for rent”.  This should direct you to several comparable properties.  You should look for properties with the same amount of bedrooms, bathrooms and square footage.  Some may have pools, be on the water or several acres of land, these rates should be adjusted up or down compared to your property.  Find four or five comparables and then take the average of them.  This gives you a ballpark range for what is reasonable in the area.

Then compare the average rent to the amount you need in order to get a cashflow on the property.Set your rate at what is going to give you the maximum amount of return on investment possible, while still being competitive with the nearby properties.

In today’s market, you definitely need to be in the same range as the comparables.  There is too much supply on the market and your property will not get any attention unless it is priced reasonably.

Once you have your rental rate set, add $25.  This will give you some room to negotiate a solid lease.  Find out your Land O’ Lakes Rental Value by contacting Relevé Real Estate.

homepath
Homepath Properties Get Money for Renovations 1024 776 Relevé Real Estate

Homepath Properties Get Money for Renovations

Homepath Properties are available throughout Tampa Bay.

Homepath homes are properties owned by Fannie Mae and available for purchase.  The program is interesting because you can borrow money for the purchase and renovations.

The program is to meant to help people purchase homes at an affordable price.  This creates a win-win as the new owners will improve otherwise vacant properties.  Owner occupying purchasers will have the money to fix them up.  The costs for the renovations will be rolled into their monthly mortgage payment. There is a high supply of homes foreclosed on and sitting vacant for many years.  These homes usually just need some TLC to be back to excellent condition.

The Homepath loan can be a great way to buy the right house in the right area and then be able to fix it up and customize it to how you want. The loans are for the purchase of Fannie Mae real estate-owned. If you qualify, you can get a 30-year fixed mortgage of around 3.5 percent. Only 3 percent down is needed and they will also finance up to $25k in renovations. There is also no mortgage insurance.

The program is great for first-time buyers or owner-occupied borrowers looking to find a great deal on a home they can fix up and own long term.  Keep in mind the offer price plus the renovations costs usually end up being around fair market value, so do not go in expecting to get a huge discount.

You can go directly to the Fannie Mae homepath page and search available properties near you.

You would still want to use a buyer agent from your local brokerage to help you with your homepath home purchase.  They will help you navigate the purchase and get the best deal possible.

Choosing a Tampa Bay Realtor 1024 683 Relevé Real Estate

Choosing a Tampa Bay Realtor

Local Experience, marketing, negotiation and excellent customer service are crucial factors in deciding who will be your Tampa Bay Realtor.

Deciding on the wrong agent could end up costing you thousands on the transaction, so vetting agents up front before hiring them to list your Tampa Bay home for sale is important.

1. Local – You will need someone that is local and can be on location for marketing, showings and inspections. A local brokerage will also help to support local business, rather than corporate franchise conglomerates. Another benefit is to look if the brokerage is providing local jobs, using local vendors and donating to local charities.

2. Marketing – Find out how the agency is showing up online and how their reviews are. Look at how they are promoting their current listings. How do their listings look? Is the photography good? Is it promoted on social media?

3. Negotiations – How does the agent negotiate with you on your terms? This is a tell of how the negotiation will go with your buyer on the transaction. Qualify them by asking about how they handle offers, counter offers, inspection repairs, etc. This will help you to determine if they are a savvy, experienced negotiator or someone you would not want to do business with.

4. Customer Service – Get a feel for the type of customer service you will receive. Are they easy to get a hold of? Do they use your preferred communication type? Do they follow up? You will need an agent that us looking out for your best interests when listing your Tampa Bay home for sale.

real estate market
Tampa Real Estate Market Ranked One of the Best 683 1024 Relevé Real Estate

Tampa Real Estate Market Ranked One of the Best

Real estate market conditions in the Tampa bay continue to grow.  Tampa has been ranked as one of the best in the nation.

The Tampa real estate market was ranked as one of the top markets for real estate investment by CNN money.  Most of the top ten were comprised of cities in Florida.  Investors are drawn in from no state income tax, low-interest rates, and sunshine.

Daytona Beach moved into second while Fort Myers took fifth. Orlando ranked fourth, Ft. Lauderdale number eight and Tampa at number nine. The other five cities in the top ten rankings were Las Vegas (No.1), Detroit (No.3), Warren, Mich. (No.4), Bakersfield, Calif., (No.7) and Rochester, N.Y. (No. 8).

First of all, trends in Tampa show a 7% year-over-year rise in the median sales price and a 2% rise in median rent per month.

From Wikipedia, Census data showed an average annual growth of 2.47 percent for approximately 97,000 residents per year. Between 2000 and 2006, the Greater Tampa Bay Market experienced a combined growth rate of 14.8 percent, from 3.4 million to 3.9 million people. The bay area hit the 4 million population mark on April 1, 2007.  A 2012 estimate shows the Tampa Bay area population to have 4,310,524 people.

Tampa was ranked as the 5th best outdoor city by Forbes in 2008.
Consequently, Tampa also ranks as the fifth most popular American city based on where people want to live. According to a 2004 survey by the NYU newspaper, Washington Square News ranked Tampa as a top city for “twenty-somethings.” Tampa is ranked as a “Gamma+” world city by Loughborough University.  This list includes other world cities such as Phoenix, Charlotte, Rotterdam, and Santo Domingo.
Tampa’s climate shows characteristics of a tropical climate and a humid subtropical climate zone.
Tampa’s climate generally features hot summer days with frequent thunderstorms.   Average highs range from 70 to 90 °F (21 to 32 °C) year-round, and lows 52 to 76 °F (11 to 24 °C).
Tampa’s official recorded high has never hit 100 °F (37.8 °C). The all-time record high temperature is 99 °F (37 °C), recorded on June 5, 1985. The highest temperature recorded at Tampa International Airport for the Summer of 2015 was 97 degrees Fahrenheit (36 degrees Celsius), which took place on July 11. But the humidity raises the heat index above 100.

Coincidentally, the Tampa real estate market is split between two USDA climate zones. The northern zone is where coconut palms and royal palms can be grown. Southern Tampa has much more tropical foliage than the northern parts of the city.

Summer

Finally, temperatures are warm to hot from around mid-May through mid-October. This roughly coincides with the rainy season. Summertime weather is very consistent from June through September. Daytime highs near 90 °F (32 °C), lows in the mid-70s °F (23–24 °C), and high humidity are the norm.

Afternoon thunderstorms are such a regular occurrence during the summer that the Tampa Bay area is recognized as the “Lightning Capital of North America.”