"Real Estate Investment in 2010"

You, too, can be just like
"The Donald!"



Are you a Real Estate Investor?
Would you like to be?



It used to be that anyone and everyone who bought property of any kind, fancied themselves as an "investor."  We were all so smart!  So you bought it from the builder for $180K and put it in the MLS for $240K as a "new build."  Simultaneous closings and pocket the difference!  Usually, "no effort in" is a "too good to be true" scenario.  It's just too risky!  And that's how that story ended in 2006, when the real estate bubble burst.  So many "investors" got caught with their hand in the cookie jar!

So here we are in the 4th Quarter of 2010... precisely 5 full years since we first noticed that "something was awry."  We've watched the market tumble here in Palm Coast and Flagler Beach, Florida to de-valuation of 50% or more.  Short sales and foreclosures comprise nearly 60% of our closings...  Inventory is large and prices are low...  Mortgage rates are extremely low.  An investor can find under 5% with 25% down.

In other words, It's a great time to invest.  If you have some cash and decent credit and are in it for a "hold," not a "flip," then your timing is good. 

Here are some of the issues to consider:

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  Use your head and a calculator, not your heart or your gut.  It's not like buying your personal home.  Heck, you don't even have to "like" it for it to be a good investment.  It's all about your ROI (return on investment) - Challenge your Realtor to demonstrate this to you. (Note: Land is a different beast.  Generally it generates no income, yet it does have associated costs of taxes, and maybe even upkeep and HOA fees, etc.  With land, it's "buying it cheap and estimating a hold period before a selloff.")
  

• 

  "Timing" the market can be elusive:-)

  Avoid overleveraging.    Debt can be a good thing, however you don't want to get caught making monthly payments "on your investment."  You want to "get payments from your investment!"  Accurate input into your Debt Service Coverage Ratio (DSCR) is important (garbage in=garbage out). 
  
  
  
  
  • 
    
    
    In general, it is calculated by:
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    DSCR = (Annual Net Income + other miscellaneous expenses) / (Principal Repayment + Interest payments).
    
    
  • 
    
    
    In a nutshell, DSCR helps to determine if an investment will cost you money or make you money!
  
  
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  Real estate investing is not a get rich quick concept (like the TV ads suggest).  We were smart from 1986-1989, but dumb from 1990-1993.  Smart from 2001-2005, now maybe dumb from 2005-2010.  That is yet TBD!  It's about your holding period and commitment.  Even factoring in the current mess, real estate has beaten the S&P 500 over the past 30 years.  It's a marathon, not a 100 meter dash.
• 
  
  
  
  Get good advice from professionals.  Not only your Realtor, but also an Attorney and a CPA would be great sources of legal and financial information.  Staying on the right side of the Law and the IRS are good things!
• 
  
  
  
  Have an investment goal.  Just buying a rental house because it was cheap is not a plan.  Market shifts, vacancies, tenant damages, chinch bugs/termites, hurricanes, etc., can have a huge impact, as well as expected cash flows and your desired benefit. Your Capitalization rate is calculated as: 
  
  
  
  
  • Capitalization Rate = Annual Net Operating Income/Cost or Current Value

   Calculating your Return on Investment will tell you if you are on track with your stated goal: 

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  ROI = (Gain from Investment - Cost of Investment) / Cost of Investment. 

(Note:  Residential investing is not in the same ballpark as commercial investing... different rules and risks, etc.  if you want consultation regarding commercial issues, Margaret Sheehan-Jones in our office is a CCIM candidate and head of our commercial department... I can put you together.)

Know your level of tolerance for risk!

"QR Codes - Smartphone Nirvana"

“QR Codes”


QR Code for www.PalmCoastUnplugged.com

 Have You Seen One of These?

This is a “Quick Response” (QR) code. You’re going to be seeing more of these on this Blog, our Facebook Fan Page (Parkside Realty Group, LLC, in Palm Coast and Flagler Beach, FL), Business cards, and our other printed and media marketing materials. You will find they are also now being used in magazines, newspapers and even billboards. In Japan (where they started), they appear on T-shirts and untold other applications… To the tune of over 50,000,000 hits/year - and growing!  Quickly!

So what does a “QR code” do?

It’s a cousin of the classic bar code you see on consumer goods when you shop. But this code contains a URL (website link). Basically, it’s a hyperlink on paper – one that your “smart phone” can read & launch. What this means to you is that our Blog and coming website MLS Home Listings will be easier than ever to access on your smart phone!  For example, if we run a print ad - say in Homes & Land - we can include our targeted QR Code so those with smart phones can do a quick scan and obtain detailed information on the home you have listed with us in Palm Coast or Flagler Beach, Florida!

How do I read a QR code?

You’ll need an “app” for your smart phone to read these little nuggets. Just do a search for “QR readers.” Many are free. Here are a few suggested searches to get you started:

• iPhone QR reader app search
• BlackBerry QR reader app search
• Droid QR reader app search
• iTunes
• BlackBerry App World
• Android Market

Once you install the app, launch it to take a picture of the QR code with your smart phone camera. The app goes to work and reads that image to translate it into a URL. Your smart phone’s browser launches, and the information you want is now on your screen!

3 Reasons You Will Fall in Love with QR Codes:

1. Easily get the information you want. QR codes are designed to take you instantly to the information you need. All it takes is a tap or two on your smart phone. No fumbling with a small keyboard typing in a web address.

2. Surf more... faster. QR codes simplify your smart phone browsing experience so you can instantly get the information you want, and get on with your day.

3. You’ll be one of the “cool” kids. Let’s face it – it’s fun to be on the cutting edge of technology. You’ve got a smart phone…why not use it to simplify your life and have some fun?  Who knows, you might even show your high school student something

Have a QR Code Question Not Answered Here?

QR Code for:  Facebook Fan Page
for Parkside Realty Group, LLC

For a much more in-depth explanation of QR codes that will satisfy your inner-Geek, just go to:  http://www.en.wikipedia.org/wiki/QR_codes.  Or, you can ask me and we’ll be happy to answer them for you (or find the answer).  For your homework, download your new QR Code app to your smartphone and click this code. It should take you straight to our office Facebook Fan Page!  Stay tuned! Much more to come, as I’m just getting started! Take care! (Frank Zedar, Parkside Realty Group, LLC, Cell: 386-931-1987)

(Thanks in order to Michael Russer (aka: Mr. Freakin' Internet) and his Online Dominance webinar on this
subject)

"EXPIRED" Real Estate Listing?

Don't Be Sad - We Can Help!

 If your Real Estate Listing on the MLS has "EXPIRED" from the market, you are probably ready to pull your hair out!

 What the heck is going on?  Why would my house in a great town in Florida - near the beach - not sell after a full year on the market?

Most real estate agents are a bit wary of contacting recently EXPIRED homeowners. Why?  I mean you've done half of our work for us by standing out in a crowd and shouting:  

"I WANT TO SELL MY HOUSE!  PLEASE HELP ME!"

                                                                                                                               

I think that most of us suffer a bit from remembering better markets - when houses sold quickly for the asking price (or more)... And no matter what you bought or sold - it was a "smart business decision."  We were drunk with success.  We here in Palm Coast and Flagler Beach, Florida were in "The Fastest Growing County in the USA" from 2003-2005!  Our values were skyrocketing and, if unchecked, our median price would have topped $1,000,000 by 2012!  And then the house of cards in the US housing market came crashing down.  We are working hard to correct things, but it was a huge bubble that burst!  We have some serious orienteering to do before we are out of these woods!

                                                                                                                  

Down?  Yes!  Dead?  No!

... So most Realtors don't call you because they sense you are "angry with the real estate process" and probably not liking real estate agents very much right now!  It's a Mindset Thing...   If an agent - at their core - doesn't believe that you need them or want them, then you probably don't!

If you are now EXPIRED - and you'd rather be SOLD:

• Interview and hire a highly motivated, well trained, experienced, aggressive real estate agent.
• One who can take charge, who understands the business and who will tell you the truth about the market (not just what they think you want to hear)
• Someone who knows how to take an ordinary thing and do it in an extraordinary way...
• One who can deliver the "real estate holy grail," when you ask:



• Can I trust you?  (with the keys to my house and input to critical financial decisions)
• Do you actually care about my personal outcome?  Do you operate with empathy and compassion and Golden Rule behavior?
• Are you competent... Can you get the job done?

Call me today... 30 minutes at your kitchen table could make all the difference!

Frank Zedar

Parkside Realty Group, LLC

Cell:  386-931-1987

There is Still Time...