Short Sales – Through the Lender’s Eyes

It may seem counterintuitive for a lender to go along with a Short Sale since they are legally entitled to pursue the full balance of the loan. Yet, more and more lenders are approving Short Sales.

Lenders are painfully aware of just how bad the current mortgage crisis and resulting foreclosures are. They know the disturbing reality is that a large number of distressed borrowers will helps the lender look good on paper since the house never gets listed as an actual foreclosure. Second, while the lender is taking a loss, the loss is far less than it would be in a foreclosure situation.

On a recent industry call with a major lender, they disclosed that the average recovery in a Short Sale is 60 cents on the dollar. Now before you get all excited that you can buy a property for 60 cents on the dollar, let us explain how they arrive at that number.

Let’s assume that a borrower owes $200,000 on a property. The market value is set at $150,000 by the appraisal or Broker Price Opinion and the property sells for $140,000, which is 94 percent of market value. The closing costs come to $14,000, leaving the lender a net of $126,000. $126,000 is 63 percent of the $200,000 loan balance.

With a foreclosure, the lender only recovers about 30 cents on the dollar. Which would you choose? The numbers make this a no-brainer.

The other issue with foreclosures is the impact they have on neighborhoods. If a neighborhood experiences a number of foreclosures, the property values in that neighborhood drop as well. Why is this important to the lender? They may be holding other mortgages in the same neighborhood, and a foreclosure drives down the value of those houses as well. They’re poisoning their own portfolio!

Bottom line is if the numbers work for the lender, they are very likely to approve a Short Sale. It’s the lesser of two evils when compared with foreclosure.

Eight Personal Qualities for Success – Part 3

This is Part Three of a series covering the Eight Personal Qualities for Success.

In Part Two I covered, The Ability to Focus and Determining the Price You’ll Pay.  In Part Three, I’ll discuss Self Responsibility and Be Committed.


Self Responsibility

You are totally responsible for the success of your business and your life. There are no excuses. There may be set backs or economic downturns, or problems that affect your business.
 
Your suppliers or vendors may discontinue making or providing your favorite products or services, change the way they do business with you, or even merge with another company.
 
Economies change, corporate policies change, and prospects don’t buy from you, and the weather is too hot or too cold.
 
While those things definitely have an impact on you, the way you do business and the sales you make, it is important to realize that those things are beyond your control, and it’s up to you, and you alone, to accept responsibility for the success of your business.

No matter how bad you might have it, no matter what difficulties or challenges you might encounter, let me assure you that there are many people who have had difficulties and challenges far greater than any you are ever likely to encounter, and somehow, they manage to pull through. And you can do the same.
 
Here’s a little credo that can help you. It contains just 10, two-letter words:

“If it is to be, it is up to me.”

That simple one line sentence says it all. It places the responsibility exactly where it should be… directly on your shoulders.

Be Committed

Make a total commitment to your success. Once you have made the decision to be in business, be in that business. Jump in with both feet. Don’t let anything hold you back. Even more than getting into the business, see that the business gets into you.

Make a commitment that you are going to succeed, no matter what.

Don’t try to work two different jobs or projects at one time. You can’t do either of them justice, and you’ll likely end up frustrated and broke, and never know whether or not you could have been successful.

In Part Four of the series, I’ll cover The Extra Mile, Control Your Time, and Persistence and Determination.

 

Homes For Sale – Springtown, TX – 129 Plantation Oaks

Homes For Sale - Springtown, TX - 129 Plantation Oaks

5 Bedrooms | 2.1 Baths | 2-Car Garage | 2444 SF

Homes For Sale – Springtown, TX. Custom country living on acreage with easy access to the city. Gourmet kitchen with concrete countertops overlooks family room with fireplace. Downstairs master suite with jetted tub, separate shower, and large walk-in closet. Extensive updating including hardwood floors, bathroom tile, and designer paints. 5th bedroom could be second master or another living area. Mud room connects garage and main house. Back yard is perfect for entertaining. 

Click here for current status, pricing, details and photos.

Source: NTREIS | Photo Credit – Tom Branch

Homes For Sale – Fort Worth, TX – 2749 Purple Sage

Homes For Sale - Fort Worth, TX - 2749 Purple Sage

4 Bedrooms | 3 Baths | 2-Car Garage |  2118 SF

Homes For Sale – Fort Worth, TX. Preforeclosure. Former Merrit model home on 1 acre. Open kitchen with breakfast bar, Corian type counters, and black GE appliances. Comfortable living room with wood-burning fireplace, crown molding, and pre-wired for surround sound. Elegant formal dining. Spacious master suite. Master bath with garden tub, dual vanities, separate shower, and walk-in closet. Separate guest suite with private bath. Remaining two bedrooms and bath split. 

Click here for current status, pricing, details and photos.

Source: NTREIS | Photo Credit – Tom Branch

What Have You Done For Her Lately?

After watching the media reports over the past few weeks, I’ve been amazed at some of the stories. 

There was an apartment complex whose management company forbid a veteran from displaying the American flag in his window because some of the other tenants might find it offensive.  They were going to evict him if it was not removed.

There was a Florida Condo Association who was going after a Medal of Honor recipient because he put his American Flag out every day.  While there were rules against the display of the flag there is a Federal Law preempting those kinds of rules just as there is a law that allows owners to install small dishes and antennas for television reception.

There are plenty of other examples but for the sake of brevity I will not go into them all.

The media reports had me down.  I attended the Liberty Fest in Farmer’s Branch over the weekend.  It renewed my spirit to see so many people out paying respect to America’s greatest national resource-the men and women who proudly serve and protect her.

I was on active duty in the US Air Force for over 21 years.  I did combat tours in Desert Storm and Desert Shield.  That flag means everything to me. When the National Anthem plays and the Flag is hoisted I still get tears in my eyes.  I wish all Americans could share my love for this country and the freedoms that we have.  Freedom of speech, the freedom to bear arms, the freedom against unreasonable search and seizure are just a few of the many freedoms we have as Americans. 

Those freedoms are not free.  They have been bought and paid for with the blood of soldiers, airmen, marines, and sailors who have given the lives defending this nation. 

Ronald Regan said it best, “Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.”

On this Memorial Day, take a minute to reflect of the great many freedoms we have as Americans and commit yourself to defending those freedoms in whatever way you can. 

What Kind of Camera Are You Using?

I’ve received a number of emails asking about my real estate photography.  I’ll start by stating that I am a fair photographer.  Most of what I’ve learned over the past few years is the result of spending time with and learning from professional photographers and graphic artists.  Many thanks go to Glenn Johnson for his personal guidance and mentoring.

Let’s start with my equipment.  My primary camera body is a Nikon D40. This is an entry-level Digital Single Lens Reflex (DSLR) body.  It works fine but if I had it to do again, I would purchase a Nikon D80. The primary difference for me is that the D80 will do auto-bracketing for HDR. With the D40, you have to do it manually. 

The lens is the most important piece in my opinion.  The D40 kit comes with a Nikkor AF-S 18-55mm zoom.  The 18mm setting will produce acceptable photographs.  My personal choice is the Sigma 10-20mm Super Wide Angle Zoom.  The 10mm setting produces great interior photos. 

Next you need lighting.  The on-board flash is useless for any serious work in my opinion. You need a high-power flash unit.  My primary flash is a Nikon SB-600. It has enough power to fill most rooms without any additional strobes or lighting.  I do own a lighting set with 2 lights and umbrellas but it is not used often. 

When using the wide angle lens you will need a diffuser for the flash.  I use a $20 STO-FEN diffuser. It works like a charm spreading out the light and preventing hot-spots.

Post-shoot processing is done in Adobe Photoshop CS4 Professional.  In my opinion, Photoshop sets the standard.  It’s expensive at over $800, but it is simply the best. 

The photo below was a new construction townhouse we listed.  The construction crew dropped a Port-A-Potty in front of the house about 30 minutes before I got there.  I simply took the shot and removed the “potty” later.  This is not a quick task so try to get the best possible shots while you’re on-site.  I often take over 100 shots on each listing.  I’d rather not have to go back out later. Note I’ve provided both raw and post-processing images.

Since I don’t shoot HDR, I try to shoot on overcast days, just before sunrise, or just after sunset.  This allows me to avoid harsh shadows outside and blown-out windows inside.  The problem with that is the skies are not blue.  Not a problem.  I have several stock sky shots that I simply drop into the photo.

Want to capture a tall ceiling?  Lay on the floor with the camera at floor-level.  Tip the camera up to capture the ceiling.  The wide angle will produce a trapezoid effect that will have to be corrected in post-shoot processing.  The shot below was done with this technique. 

I’ve invested about $2000 in equipment and about $825 in software.  Each listing takes about 2 hours on-site and another hour or so in post-shoot processing.  Personally, I enjoy photographing my listings but it’s not for everyone. 

 

CC&Rs, HOAs, and Amateur Radio

As an avid amateur radio operator and a Texas Real Estate Broker, I’m often asked to speak about the impact of CC&Rs and HOAs on Amateur Radio.  The following is an outline of a presentation I made this evening for the McKinney Amateur Radio Club in McKinney, Texas.  

Tom BranchOverview

– Definitions
– Before you Purchase a Home
– Dealing with CC&Rs and the HOA
– Stealth Ideas

Definitions

CC&Rs:  Covenants, Conditions, and Restrictions.  The more common name is “deed restrictions.” This is a legal document that is filed with the County Clerk.  It establishes minimum building standards, specific use restrictions, and often establishes the Homeowner’s Association.  You can get copies directly from the County Clerk. Many counties now have their records online and unofficial copies can be downloaded. If you are working with a real estate professional, they should also be able to get copies. CC&Rs may be enforced by other homeowners or by a properly established Homeowners Association.
 
HOA:  Homeowners Association.  This organization is typically authorized by the CC&Rs.  The developer usually initiates the HOA and turns it over to the homeowners at a time specified in the CC&Rs. Membership and dues may be mandatory or voluntary, but typically they are mandatory so the HOA has the funding needed to carry out its objectives.  While HOAs can have many committees with various powers, the most important one in respect to amateur radio is the Architectural Control Committee also known as the ACC. The ACC usually has broad power to approve or disapprove any request for improvements or changes to properties located in the subdivision.

Neighborhood Association:   This is a social organization that has no real authority. They usually do not charge dues or they are voluntary.  They cannot enforce CC&Rs and cannot have an ACC.

Before You Purchase a HomeAmateur Radio Tower and Antennas

Do Your Research – This is the most critical step of the process.  The last thing you want to find out is that there is an undisclosed HOA or that the existing CC&Rs will not allow you to put up an antenna or operate.

– Few real estate agents specialize in amateur radio.  This is the primary reason I founded  Homes4Hams.com in 2002

– You can get copies of the CC&Rs from the county to do your own review or
 
– You can hire an attorney to do it for you

Dealing with CC&Rs and the HOA

If you already live in an area with CC&Rs and/or and HOA, get copies of the CC&Rs and HOA governing documents.  These documents outline the restrictions and establish how the HOA or ACC operates.

– Many CC&Rs give the HOA/ACC a fixed period of time to render a decision. If they fail to do so, the project is considered to be approved.  Once again, read the CC&Rs and HOA documents for specifics.  If there is an HOA/ACC, file a request for approval of your project.  You might try applying for something simple to see if they will respond before trying for the tower and yagi

– If there are CC&Rs but no HOA, you still need to know if tower and antennas can be erected. Just because there is no HOA does not mean there are no restrictions.  Any homeowner subject to the CC&Rs could file suit against you if you violate the CC&Rs

Stealth Ideas

Just because you inadvertently moved into a home with CC&Rs does not mean you cannot operate if you do so smartly. Use stealth antennas and use low power.

Apply for a Flagpole – Most HOAs will not deny such a request.  Force 12 has a commercial antenna flagpole available.  I have used 18 feet of 2-inch aluminum tubing disguised as a flagpole with an SGC-230 auto tuner.  WAS, WAC, and DXCC were worked in less than 9 months mostly on 40 meters. The SGC-230 will load the 18 foot “flagpole” on 80 through 10 meters.  If you can get 24 feet of flagpole, the SGC-230 will load it on 160 meters as well.  Use a many ground radials as possible.

Wire Antennas – Use wire antennas strung along the tops of fences.  I’ve run large loops and long wire antennas along the tops of fences.  While these could be cut to a single band, use the SGC-230 at the feed point for all band coverage.  DXCC, WAS, and WAC were worked in less than a year.

Try Satellites – I put up M2 Eggbeaters for 2 meters and 440 MHz on the back side of my home (away from the view from the street).  The HOA did send me a notice but I claimed an OTARD exemption and never heard from them again.

Remote Operations – You could purchase land in the country and set up a station that could be operated on-site or from a remote location.  One ham in Austin was tired of fighting with the HOA.  He went out east of Austin and purchased a hilltop where he installed 190 feet of rotating tower and yagi antennas for 80 through 10 meters.  He could operate on-site or control it all from his home to chase DX or rag-chew.  This was several years ago and the technology for remote control and operation has improved dramatically.

Summary

If you are purchasing a home and want to put up antennas, do your research before you sign a contract or make sure there is verbiage in the contract that lets you terminate the contract if your research shows that you will not be able do what you want to do

If you already live in an area with CC&Rs, get copies of the governing documents and know the rules.

Realize that you can still operate HF by using stealth antennas and low power.

73,

Tom Branch - Plano Real Estate

Tom Branch, K4NR, holds an Extra Class Amateur Radio License.  He has numerous awards including ARRL A-1 Operator, DX Century Club (325 confirmed countries), and 5 Band Worked All States. He has been published in QST, The Journal of the American Radio Relay League.  Tom founded Homes4Hams in 2002 to help amateur radio operators connect with knowledgeable real estate professionals.