Real Estate Blog and Update RETIRE LATER, BUY THE HOUSE NOW: 08/22/2007 With prices in many areas at a low ebb, baby boomers should consider buying their retirement home now, even if they’re still years away from actually moving, allowing renters to pay the bills for now. Here’s some advice for people considering this strategy: • Shop carefully. Buy a home that can be rented for a rate that, after tax considerations, covers the mortgage, real estate taxes and insurance. • Study housing trends. Ask the local or state planning department for demographic and economic data. The information can reveal facts that will influence whether or not to buy. For example, big companies going out of business or military base closings can be bad news. • Don’t forget maintenance. Property managers usually charge a percentage of the monthly rent. Family members may do the job for free but could be ill equipped to make repairs. • Consider financing. Boomers with sufficient equity in their current home can tap it to either buy their retirement home outright or secure a much lower mortgage rate compared to the loan rate usually charged to buyers of investment property. CLOSING IN ON FORECLOSURES: 07/02/2007 With foreclosures rising nationwide, prices falling and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties: Here's a basic advice • Know your market – the most important tool in your real estate investing toolbox. • Find an investment strategy that will work in your market and do what it takes to implement that strategy. • Decide which foreclosure buying technique works best with your investment strategy and your strengths as a person. • Scrutinize each deal – not all homes in foreclosure are a bargain. • Rely on a trustworthy team. • Network with banks and lenders. In a slow real estate market, they're saddled with larger inventories and will be more motivated. • A slow real estate market gives you the upper hand as a buyer, but you'll still need to act quickly to get the best deals. SPICE UP THE KITCHEN Do you have buyers on a budget who need a little help visualizing how they could revitalize an older kitchen? Here are five inexpensive tips: Replace the flooring. Install laminate floor over old linoleum, vinyl or chipped tile. It costs just $1 to $5 a square foot and resembles wood, stone or tile. Replace the lighting. A new ceiling fixture costs less than $100 and will brighten up the place. Adding some under-the-cabinet lights illuminates work surfaces. Give the cabinets a new life. A coat of paint and new knobs is the cheapest way to go. If you're able to spend $4,000 to $6,000 on the project, hire a refacing company to replace the doors and drawer fronts. Refinish the appliances. For a few hundred dollars, an appliance refinisher will re-enamel your stove, refrigerator and dishwasher door in the color of your choice, including a stainless steel look-alike. Update the backsplash. Replace the space between your cabinets and the countertop with fashionable stone or inexpensive wallpaper. First Time Home Buyer? It is now time to buy. Do not wait for the next boom or else you cannot afford it anymore. What to buy? Short sales and builders inventory homes. Read this News... FIXES FOR A FASTER SALE: 01/31/2007:                                                            Here are 10 quick fixes that make a house more likely to be snagged up by buyers: 1. Paint the trim, columns, front door, and the light fixture. 2. Replace the storm door with a full-view one. 3. Clean all the window screens. 4. Add new mulch and a potted plant by the front door. 5. Remove mirrors from over the fireplace so buyers focus on the fireplace. 6. Move furniture 1 1/2 to 2 feet away from the walls to create the illusion of more space. 7. Get rid of any movable storage pieces in the kitchen and take all the clutter off the refrigerator. 8. Clean and regrout the bathroom floor tile. 9. Replace dated bathroom vanities with trendy (and economical) pedestal sinks. 10. Put colorful bedding and matching window treatments in all the bedrooms. BUY SMALL, EARN BIG: 01/29/2007 Even in today's uncertain climate, a hands-on real estate investor can make money with smaller properties that are easy to acquire and manage. Here are some suggestions to get started: • Rent out a part of your own home for $400 a month and use that money every month to pay down mortgage principal. Shaving 10 years from a $350,000 30-year mortgage will reduce total payments by more than $165,000. And you'll be able to write off all your costs on your income taxes, including depreciation on the unit, up to your actual rental income. • If buying a single family home, make sure you can put 10 percent down and rent the property for more than your monthly payment, interest, taxes, insurance and a $200 expense budget. Low-balling a foreclosed home owned by a lender is one way to find such a property. • Consider buying a two-family home, where you'll make nearly twice as much in rent for a property costing little or no more than a single family. Buying your first home or Investment Property? It is now the best time to buy in Central Florida, the market has slow down a bit. Inventories of homes have increased putting pressure on prices. How can you buy a home and getting the best deal? You have to negotiate and you need to know what to negotiate. It is wise for you to hire an experienced Realtor . Here's my clue: No money down: simply 2 years of employment history and a credit score above 680. Any score below that can always qualify but the rates might be higher. I will negotiate the rate for you and all the costs associated with closing the deal. Worried about Declining Home Values? Overall, this is not really bad news. Real estate is an asset that is illiquid enough as it is to turn paper losses into real losses. Stagnation or even a slight downturn in property values will have no real or immediate effect on most home owners -- unless they are so overleveraged that they require a constant tapping of home equity.Then, they have a whole other set of problems.          Written by Carlota Joven Caracut on Monday, October 9th 2006.    Foreclosure : I am amazed each time I check the monthly foreclosure reports.  The average home value for foreclosure that I've found to be a monthly standard is $450,000.  99% of these homes were placed on the market with a for sale by owner sign.  95% of them literally go to foreclosure, then to Mortage company foreclosure sale. To avoid it, you have to have 6  to 12 months of emergency money. A line of credit is considered for emergency purposes.                                                 Written by Carlota Joven Caracut on Friday, 8th Sept. 2006                                                                             14. Positive Employment Outllook for Central Florida Written by Carlota Joven Caracut on Friday, 25th August 2006 Orlando will be the home of the Burnham Institute for Medical Research's new center in Florida. It is expected to bring up to 300 jobs over the next decade. Can you sustain and hold on to your investments close to this area for a decade? The Key is Leveraging, cash flow and time management. 13. Financial Strategy and Stress Prevention in Buying your First Home Written by Carlota Joven Caracut on Friday, 4 August 2006 You can use up to $10,000 of your IRA or 401K towards your downpayment without premature withdrawal penalty from the IRS . This is a good strategy especially if you have no savings to purchase a home. To find the right home for you , first you need to know your needs not wants. It is best to buy a home close to your employment and school to your child. Why buy a cheaper home far away from your needs where gas is getting too expensive. Imagine traffic stress plus expenses on tolls, gas, and time spent. Here is my clue, do not buy a home over 30 minutes drive from your employment even if it is only 15 miles away.  12. Orlando- One of Top Ten Best Cities to get Hired- Current Statistics Written by Carlota Joven Caracut on Friday, 21 July 2006 Unemployment rank: 5  Cost of living rank: 52  Median household income rank: 57  Income growth rank: 11  Job growth rank: 6    Strong five-year job and income growth pushed Orlando to the top, helped by a low unemployment rate. Florida benefited even more than the rest of the country from the recent growth in the housing market, helped in part by its popularity with retirees. Orlando has also benefited from the defense industry boom and tourism. "The Europeans seem to have discovered Orlando during the last five years," says Steve Cochrane, an economist with Moody's Economy.com. The Orlando metropolitan area also includes Kissimmee, Fla.   11. Have you heard about 100% financing? Written by Carlota Joven Caracut on Friday, 14 July 2006 100% Financing means that you can own a home or invest in any property without no money down. But How? The key is your credit score above 660, stable job and debt to income ratio at 38% at least. Is your score above 660? Why rent if you can own with no money down. 10. Housing Outlook Written by Carlota Joven Caracut on Saturday, 01 July 2006 Real Estate Sales has slow down a bit this second quarter and most agents think it is because homes are overpriced. I would say, that is not the case. Buyers are still in the market place but the key to housing markets actually lies with jobs and population changes, not price. Yes, we all know that interest rates have increased both short term and long term borrowing but if you are familiar with your local market demographics and employment rate , real estate remains an excellent investment.

9. 100% financing for investment property? Written by Carlota Joven Caracut on Sunday, 25 June 2006 The key here is that seller must take 10% financing. Then you can get 90% from your lender. And if you are a realtor / investor buying the property, you can always negotiate to have seller pay you 10% commission. In the end, you will only finance 80% of the value. Make sure the commission is incorporated into the sale purchase agreement to make it legal. For more info on seller financing, please browse my site for more articles.

8. Are you a First Time Home buyer? Written by Carlota Joven Caracut on Thursday, 22 June 2006 First Time home buyer must know their credit score. You can get this for free at Equifax.com. To buy a home with no money down and favorable interest terms, you must have a credit score of at least 680. Also Calculate your current debt to income ratio. Debt must include current rent or mortgage, credit cards and and other loans.

7. Personal Asset Written by Carlota Joven Caracut on Thursday, 22 June 2006 In Real estate investing, a person is only allowed to have 10 finance properties under his or her name. Lender will not give you any more credit to finance another property. In my experience I have increased my buying power but how? Email me or contact by phone. I will give 10 minutes of my time for a free consultation . But here's the key, your credit score must be over 700 and debt to income ratio is 36%.

6. Zero % credit card offer can hurt your credit score Written by Carlota Joven Caracut on Thursday, 15 June 2006 I have spoken to Wachovia financial Advisor today. His opinion is that a new credit card can take at least 20-30 points off your score. So- for those of you who is planning to buy a home, do not open a new credit card but instead pay it off to raise your score. A higher score can get you a lower interest rates. Click Here to know more about credit score.....

5. Orlando Proerty Flipping is no longer allowed Written by Carlota Joven on Tuesday, 13 June 2006 FHA finalizes 'anti-flipping fraud' rules  WASHINGTON, D.C. Beginning July 7, only the homeowners listed on recorded documents can sell properties slated for Federal Housing Administration-backed financing, according to new FHA rules intended to discourage property flipping. Additionally, FHA financing will not be available for homes sold within 90 days of purchase. Sellers will have to provide additional valuation data to unload properties between 91 and 180 days after the last transaction, in cases where the new sales price is 100 percent or more higher than the previous sales price. HUD, Fannie Mae, Freddie Mac, lenders unloading their real estate owned (REO) portfolios, local or state housing agencies, nonprofits with HUD permission to purchase discounted REO properties, inherited properties, and dwellings located in presidentially declared disaster areas are exempt from the anti-flipping rules.  Source: Realty Times, Kenneth R. Harney (06/12/2006)

4. Interest Rates too High? Written by Carlota Joven Caracut on Friday, 09 June 2006 I received a phone call today from a client , concern about non-stop monetary policy increase of interest rates. My answer to his concern: If I can borrow at 10% and make a return of 50%. I still gain 40%. (Pls read my articles on return on investment. )  So for those of you who is highly levered, please be careful because now is not a good time to sell but a good time to buy.

3. Sold Lake Mary Office Condo Written by Carlota Joven Caracut on Wednesday, 07 June 2006 A 1764 sq ft office condo in lake mary sold at $260 a foot. Closing on June 30th 2006. The office is owned by Teamwork Rehab Services and sold to a Physician especializing in anti-aging medicine.

2. New Condo-Conversion Written by Carlota Joven Caracut on Friday, 02 June 2006 The Village, New Luxury Condominium conversion...soon to be released...Starting at 149k...120 Condos located in Central Florida...30 minutes from Disney...45 minutes from Daytona Beach. Top School District...One of the best rental markets in the area (long term)...Beautiful upscale area...     Notice Posted:May 18, 2006   Status: Luxury Conversion   Location: Greater Orlando, Florida (Altamonte)   Reservation - $5,000 fully refundable deposit   Release date: June 9th     1,2 and 3 Bedroom Townhomes starting at 149k   5 reasons to consider purchasing a condominium unit at The Village:  Townhomes - Very limited number of townhomes availible in this area. Very high demand for residential in this area     Top School District - One of the best school disticts in Central Florida     Completly Renovated Property - Developer has excellent track record and past propeties in the area to view     Excellent Rental Market - Occupancy in the 97-99% range, Located next to one of the largest employment districts and office complexes in Central Florida     1/10th Mile to Uptown Altamonte - 1 Million+ sq. ft entertainment and shopping complex

1. Who benefits Lease to Own in Orlando Written by eyean on Saturday, 27 May 2006 It is mostly the buyer especially if the home appreciates in value. A two year lease is better than a 1 year lease. For more info about lease option purchase. Pls contact me via email.