Yesterday, there was an article in the Staten Island Advance www.silive.com, that discussed a recent ruling which homeowners prevailed in staving off the foreclosure. The article went on to mention that the homeowners could not make it the first year before falling behind. While they would of qualified for a traditional home loan (presumably FHA) they instead were "improperly pushed" in to a high interest subprime loan. The judge ruled that the homeowner could be entitled to reimbursement for fees, payments and the mortgage my be unenforceable. Unenforceable? This is not to say that there were not some mortgage brokers who were "pushing" certain products, but in fairness there were plenty of homeowners "pushing" for those same products. If they fell behind in year 1 - wouldn't that be b... 02/05/2008

I remember the days when you took a customer out,showed a house,and the next step was to roll with the paperwork .(once they found a house that fit their needs.)Today I find myself having my customers sit w/ a lender first and get a pre-approval (not a pre-qual)awaiting appraisal prior to even scheduling appointments to preview homes.I have cut the time wasted working with buyers that are not qualified,saved attorney's time,and can be assured that my customer will be researching homes in their budget..How many possible transactions fail these days due to mortgage issues? Hopefully with FHA reform right around the bend a large sector of the population will again qualify for affordable programs.    02/02/2008

From begrudingly cutting rates 25bps just a few months ago, the Fed has dropped rates 125bps in a week. With the Fed Funds down to 3%, the Fed has reacted aggressively to a slowdown that went from credit, to housing, to the economy as a whole. While this will be helpful to those with equity lines, and looking to refinance, these lower rates will not have the complete desired effect with out a raise in the FHA limits to atleast Frannie and Freddie Mac limits. There has not been a raise in the FHA limits for 2 years, and let's face it - the time has come. 01/31/2008

I met with a potential client yesterday .He purchased his home 3 years ago for $560k.I noticed the FSBO sign at the corner was worn and weather beaten. I had run comps and prepared a CMA.My opinion was the house is worth 470k-490k.When we began discussing the possible sale I brought to his attention that the house was worth less in todays market then when he 1st purchased and that an identical home directly across the street is listed for $480K.I told him that I felt he should hold on to see where the market is heading. We then spoke about the mortgage he curerently carries.It turns out that his "Arm" is do to adjust this August and the burden of an increased payment would create hardship. I set him up to meet with a lender and he is now in the process of refinancing ,his monthly  payme... 01/30/2008

At the begining of every year I reflect back to see what I could have done to generate more business.This weekend I was working w/ a handful of customers and clients.I found myself engaged in numerous conversations about the current market conditions.Discussing my customers mortgage needs and which product would best suit them.Whether to list or refinance etc...In an e-mail ,fax and website world,I realized that meeting the"old fashion way"is what works best.Yes,emails are an important tool to stay in touch and communicate,but getting together around the table is priceless. I have encouraged our team to have all initial meetings with customers begin at the office.The office lends credability to your identity it will enable both the customer and agent to meet, talk,listen and decide as t... 01/29/2008

This is an update on my previous post of "When Houses Sit..." To recap - this weekend I received an offer on a new construction 2 family for a first time home buyer. The house had been sitting on the market for over 18 months, and the builders had already let go of higher offers when they thought they could get more. My offer included builder incentives and transfer tax. Needless to say, when I personally presented the offer on Sunday they were not overly excited...Today I met with the builders again. Their first reaction was typical and expected - GET ME MORE... But after allowing them to vent and explain their position, I could help them assess the market. Each month that property sits vacant costs them $xxx dollars. We can save that money by having these qualified buyers, with a repu... 01/28/2008

STEP 6 FINANCING THE UNFINANCABLELETS SAY YOU COME ACROSS A WONDERFUL OPPORTUNITY TO PURCHASE A HOME THAT IS IN SUCH A DISTRESSED CONDITION, THAT IT'S NOT MORTGAGABLE.YOUR FINANCES MIGHT NOT ALLOW YOU TO PURCHASE ALL CASH .WELL, THERE ARE OPTIONS,SOME MORE COSTLY THAN OTHERS .THIS DIAMOND WAITING TO SHINE HAS A HUGE MARGIN  FOR YOU AT THE END OF THE RAINBOW. .HERE'S ARE 2 OPTIONS YOU HAVE TO BEAT THE CHALLENGE.1.PRIVATE MONEY LENDER(HARD MONEY). IN TODAYS WORLD OF FLIPPING THERE ARE PLENTY OF PRIVATE COMPANIES WILLING TO LEND.THEIR FEES VARY,SO BE CAUTIOUS AND MAKE SURE YOUR ATTORNEY GETS INVOLVED PRIOR TO MAKING ANY DECISIONS.TYPICALLY PRIVATE LENDERS WILL LEND BETWEEN 60 % - 80% LTC (LOAN TO COST).ON A 300K HOUSE THE LENDER WILL FUND $180K - $240K.HARD MONEY LENDERS WILL CHARGE A HIGH... 01/28/2008

STEP 5  ASSESSING THE WORK ON THOSE UGLY HOUSES.I AM A STRONG BELIEVER IN DELIVERING A QUALITY PRODUCT AT RESALE.ASSESSING THE AMOUNT OF WORK AND MATERIALS TO USE CAN BE TRICKY. START BY LOOKING AT THE NEIGHBORHOOD YOU PURCHASED YOUR FLIP IN. DO THE HOUSES HAVE VINYL SIDING? ARE THEY STONE AND STUCCO COMBO?ARE THEY ALL BRICK? THE EXTERIOR OF YOUR HOUSE SHOULD HAVE GREAT CURB APPEAL IT IS THE FIRST THING YOUR POTENTIAL CUSTOMER WILL SEE. WHEN I PURCHASE TO FLIP I LOOK AT A FEW KEY ITEMS CLOSELY.1. THE HEATING SYSTEM(IF IT LOOKS OLD REPLACE IT) 2.THE ROOF,MUST HAVE A MIN OF 5 YEARS LEFT OR REPLACE IT.THE KITCHEN AND BATHS,IF THEY WERE NOT UPDATED IN THE PAST FEW YEARS,REPLACE THEM.ALL WINDOWS MUST BE FUNCTIONAL OR ,YOU GUESSED IT ..REPLACE THEM. IN TODAYS WORLD OF FLIPPING THE COMPETETION... 01/28/2008

I had the distinct pleasure of working with a referral customer this weekend. We had spent some time together at the end of last year, but with her husband involved in contracting and the slow down in the marketplace they were too nervous to own a home at this time.This week, with rates dropping and some inventory that my office had reduced, I reached out and found their dream of home ownership had been re-ignited. We spent time together on Saturday viewing some new construction, and newly renovated homes and found something that will work for their growing family. With some builder incentives that had been discussed as options we put an offer on paper and I personnally presented the offer this morning.Here's where it gets interesting. The builders are still thinking about it. I know th... 01/27/2008

STEP 4RISK VS. REWARDSPECULATING(FLIPPING) REAL ESTATE HAS MANY REWARDS.WHEN I FIRST GOT IN THE BUSINESS I HAD VISIONS OF MAKING A MILLION DOLLARS THE FIRST YEAR. I HAD NO IDEA OF THE AMOUNT OF WORK IT TOOK JUST TO SEE ONE HOUSE THROUGH CLOSING. IT IS TRUE THAT THERE IS A LOT OF MONEY TO BE EARNED AND EQUITY TO BE GAINED,BUT TAKE INTO CONSIDERATION THE RISK FACTOR.EVERY HOUSE WHEN PURCHASED FOR FLIPPING IS A DIAMOND WAITING TO SHINE. UNFORTUNATELY SOME WILL ALWAYS REMAIN LIKE A PIECE COAL.CHECK AND DOUBLE CHECK YOUR FIGURES.ANTICIPATE FOR THE WORSE.THERE WILL BE HOMES THAT TAKE LONGER TO SELL.THERE WILL BE TIMES THAT UNFORESEEABLE EXPENSES OCCUR.TIMES THAT YOUR HOME IMPROVEMENT TAKEOFF IS OVER  BUDGET,WEATHER DELAYS AND ON AND ON.I'M BY NO MEANS TRYING TO DISCOURAGE YOU, I HAVE MADE MY ... 01/25/2008

I am on the commitee for our local st patricks day parade which happpens to be the third largest St Patricks Parade. It will be held on Sunday  March 9,2008 on Forest ave ,Staten Island.This years Grand Marshall will be Teddy Atlas,the very successful boxing trainer and Espn announcer. Teddy is a very charitable man raising funds through the Dr. Theodore Atlas Foundation.If anyone wants to support the parade please contact me. Its a great community activity 01/24/2008

STEP 3 THE NUMBERS NEVER LIEWE HAVE ALL SEEN THOSE T.V PROGRAMS THAT GLAMOURIZE FLIPPING.I WISH IT WAS SO EASY THAT EACH AND EVERY HOUSE THAT WAS PURCHASED WITH INTENT TO FLIP  YIELDED SUCH A LARGE MARGIN. INVESTING REQUIRES LOTS OF DUE DILIGENCE DON'T BE FOOLED INTO THINKNG ITS FOR EVERYONE.HERE'S THE INSIDE SCOOP ON THE NUMBERS AND WHAT YOU NEED TO KNOW. LETS TAKE A TYPICAL SINGLE FAMILY HOUSE THAT YOU FEEL MIGHT BE RIGHT FOR THE FLIP.I ALWAYS START WITH THE SELLOUT PRICE AND BACK OUT ALL THE OTHER COSTS TO OBTAIN MY ANTICIPATED NET .HERE'S AN EXAMPLE :ADDRESS:1313 MOCKINGBIRD LANESELLOUT: $350,000PURCHASE PRICE:200,000LEGAL FEES ON THE BUY;$1000CLOSING COSTS(IF MORTGAGING):$10,000IMPROVEMENTS:$50,000BROKER FEES @ 6% $21,000 (ON THE SALE)MIN. 6 MONTHS OF MORTGAGE PAYMENTS @ 7% INCLUDI... 01/24/2008

STEP 2PICKING A DEAL FROM A DUD.THE SEARCH IS ON LOOKING FOR THAT PERFECT FLIP!!! DECIDE ON A  TARGET AREA THAT INTERESTS YOU.DO SOME DRIVING(LOTS OF DRIVING) THROUGH THE NEIGHBORHOOD.ALL THE WHILE LOOKING SIDE TO SIDE FOR  HOUSES THAT ARE DISTRESSED,MAYBE AN OVERGROWN LAWN,BOARDED UP WINDOWS(YOU GET THE IDEA).WRITE DOWN THE ADDRESSES, LISTING OFFICES AND TELEPHONE NUMBERS.  ONCE YOU HAVE DONE YOUR RESEARCH ,CALL YOUR REALTOR OR THE FSBO(FOR SALE BY OWNER) .ASK THEM FOR THE ASKING PRICE AND PROCEED TO SCHEDULE AN APPOINTMENT TO VIEW THE INTERIOR.ONCE YOU HAVE SCHEDULED AN APPOINTMENT TO VIEW,TRY TO BRING YOUR CONTRACTOR W/ YOU.THIS WILL ENABLE YOU TO CRUNCH NUMBERS CORRECTLY W/ RESPECT TO IMPROVEMENTS.(THE CONSTRUCTION NUMBERS PLAY A MAJOR ROLE IN YOUR OFFER TO PURCHASE ).IT'S TIME NOW ... 01/23/2008

There was an interesting feature in Sunday's New York Times on commuting in NYC. This week they focused on Staten Island transit, the SIRR and the Ferry.There is a tradeoff in Staten Island. More house and property for the money, but a commute to Manhattan that could create challenges for the city worker. But, what we do have, in terms of train service (while not enough) and ferry is highly efficient. On time, reliable and factored in, creates comfort and balance in the city commuter. If you drive and get stuck on the Verrazano Bridge during the morning rush, you're probably not happy camper. But if you can use the ferry, which has undergone a tremendous renovation, you'll find it to be a relaxing 25 mintues to downtown NYC. And it's free -- where else does this city give you a free rid... 01/22/2008

 FLIP TO WIN!A STEP BY STEP APPROACH OF WHAT YOU NEED TO KNOW WHEN BUYING TO FLIP. IN THE PAST 10 YEARS THERE HAS BEEN A FLOOD OF NEW INVESTORS WANTING TO BECOME INVOLVED IN SPECULATING REAL ESTATE. DURING THE COURSE OF THE NEXT WEEK , I WANT TO SHARE SOME IDEAS, SUGGESTIONS,AND CONCERNS ON HOW TO SPECULATE . I BEGAN "FLIPPING" HOUSES IN THE EARLY 90'S. SINCE THEN I HAVE BEEN INVOLVED IN NUMEROUS TRANSACTIONS. EACH PURCHASE AND SALE I COUNT ON MY TEAM FOR ADVICE.THESE ARE THE PROFESSIONALS YOU WILL NEED.STEP 1BUILD YOUR TEAM OF PROFESSIONALS.1.ATTORNEY,BE SURE TO RETAIN ONE THAT SPECIALIZES IN REAL ESTATE(IF POSSIBLE ONE THAT ONLY DOES R.E. TRANSACTIONS)2.APPRAISER.,THEY WILL MAKE SURE THAT THE VALUE ON THE HOUSE IS CORRECT FOR THE BUY. THE APPRAISER WILL ALSO PROVIDE A SELL OUT NUMBER ... 01/22/2008

As President of Appleseed Realty GMAC Real Estate and CEO of Mortgage Links, a licensed mortgage banker in N.Y./N.J./Fla.  I meet constantly with banking individuals about interest rate programs.  I recently met with the financial economist for Citibank.I caution today's buyers on the over the top negativity by so many in the media with reference to home prices.  I point out many of the doom sayers are making millions of dollars by creating fear in the market place, exp. stocks, bonds, housing etc.  to cause prices to fall and they are in what we call short positions.What they failed to tell the Real Estate community is that interest rates are at a "Historical" low.  Buyers for the five years have purchased homes not on sticker price of the home but the monthly affordable payments.  The... 01/21/2008

I was trying to think of what to write about and decided to offer to all my Active Rain friends the same discounts that we receive as a members of GMAC.  We switched to GMAC less then a year ago and in the beginning when our broker, Henry Setaro told me he was thinking of changing I was very much against it.  We were previously Prudential and had been Prudential for approximately 15 years. We were so afraid of the GMAC name and thought that we would lose business, but just the opposit happened. We have so many great programs for the agents and now with the sub prime and mortgage problems, we have just signed on with GMAC Mortgage Company, giving our customers better programs and many more choices.  We are able to give everyone we know the discounts from major vendors through GMAC Home R... 01/18/2008

Nothing melts my heart more than when I look into the eyes of my lovable puppy as he sits by my side as my day unwinds.  Who else greets me with yelps of joy when I come home, following my from room to room just happy to see me.  He might only be six pounds but he is as protective of me as if he was 100 pounds. Where can you find someone who will get up whatever time you get up, go to sleep whenever you decide its time and spend his night curled up beside me happy to lick my face at any given time.  My life is so enriched with the unconditional love I receive from my little white ball of fur. He is patient and kind and in return for a little food and water and a lot of love he gives endlessly.  I am blessed to have him. 01/17/2008

After reading what NAR is proposing to stimulate our market it seems to me its just not enough.  Increasing the loan limits will help a few but the people who really need the help are not the jumbo loan homeowners, but the people who have mortgages that are below that guideline.  In my office the houses that we are doing short sales on are not the owners with the jumbo rate mortgages but the middle of the road homeowner.  The single mother who bought a home and was sold monthly mortgage payments that when it adjusted was more then she could pay.  Or the first time buyer who also was sold a mortgage that they could never pay.  I also read about a homeless woman who was given a loan to buy her very first home, a lone that she could never pay. Her only income was her disability check.  The... 01/17/2008

  This morning I attended our meeting Hosted by Hank Setaro Owner/Operator of Appleseed Realty GMAC Real Estate & Scott Sertaro of Mortgage Links our Mortgage Company, who have now partnered with G.M.A.C Mortgage Company.  With all positive expectations of Real Estate, Henry Setaro of Appleseed Realty G.M.A..C. Real Estate talked about the low interest Rates, of 5 3/8 this morning, and together with low housing prices have given the buyers a winning combination. There are many buyers that are taking advantage of this great market before Spring Season is here.  Hank gave us an up lifting experience at todays breakfast meeting. Thanks to Henry Setaro we had a positive Good Morning. 01/17/2008