Monday, December 27, 2010

Looking forward towards investments

As this year comes to an end, many feel that that bottom of this tricky real estate market has been reached or at least can be seen. Whether this is true or not, I don't know.

What I do know is that in our Albuquerque Real Estate market, there are great deals right now. Inventory is high and interest rates are low. History has shown us time and time again that the maximum profits made in Albuquerque Real Estate are best when the buying occurs on the down slop or at the bottom.

By doing this the main mistake made by people in the "2005 era" (which was buy high and, with a little luck sell higher), can be avoided. Buy low, sell high. sound familiar? Luck should not have a place in this equation that several people (including myself) found themselves using.

A couple of great rules were brought to my attention by an amazing colleague of mine in a different part of the country. These rules should be followed when considering an investment property and I felt were worth mentioning.
  • Focus on quality properties and areas
  • Don't have tunnel vision on foreclosures and certainly not short sales. Some of the best deals are found the traditional way. Basically, Don't "pigeon hole" yourself. Look at all properties that fit the criteria.
  • Do your homework. Be sure to factor all things financial whether its taxes, utilities or HOA dues. Have you Realtor help!
  • Study the rental history and be conservative when evaluating the cash-flow potential.
  • Be sure to work with a Realtor that has your goals and vision in mind. Make sure they are in it just for the sale. Its all about making good financial decisions! 
Albuquerque Homes are an excellent opportunity to create wealth for the future! If you need any help or have questions regarding Albuquerque, Corrales real estate, or Rio Rancho real estate, please don't hesitate to contact us!!


by Tim Fish

Wednesday, December 1, 2010

Short sales getting better?

So, I recently closed another short sale in Albuquerque. This one took a good 6 months which, to me, is pretty typical. It was basically 6 months of bank games that were a lot of fun! (can you see the sarcasm dripping from your monitor?) This one went through the lovely Bank of America's "equator" system. This system promises prompt, friendly and I assume honest service. The promptness...6 months isn't exactly ideal. Friendly...Some what. The assigned negotiator did give us his personal cell number because, due to appraisal service, the deal went right down to the wire (I'm talking hours to the wire). Honest...Even after the deal closed the bank wanted an additional $3k and, some how, the escrow officer was able to work around. Not to sure if the ball was dropped some where there be it seemed a bit suspect since it has happened to me once before. I'll let you decide.

I do hear conversations around the office about short sales only lasting 1.5 to 2 months. I guess it really is a learning process. If the listing Realtor knows how to get a hold of a live person and can to get quick responses, these short sales seems to go fairly smooth. It does seem that banks are finally getting better at understanding how these work. The one thing, I have to admit, that I feel uneasy about is that these homes are mainly sold as is. I warn my buyers over and over about this. Inspection costs also fall on the lap of the buyer which can go well above $1k. That's a jagged pill to swallow for me.

So, bottom line. Should you avoid short sales still. I personally don't think so. Just be prepared for some "uncomfortable situations". Your Realtor should be covering EVERY aspect of a short sale and the possible consequences.

I love my job!! ( that was not sarcasm! ;))

by Tim Fish