Sun Rock Property Management » Foreclosure

Foreclosure Buying Nightmare Over?

Sun Rock Properties — Sun, 11 Dec 2011 22:10:52 +0000

RealtyTrac reports foreclosures are at a 7 month high after 230,678 U.S. filings in the month of October. However this is down 31% from last year. They attribute some of the annual decline to banks getting more efficient at the process of buying a foreclosure. Anyone who has bought or tried to buy a foreclosure in the past few years can tell you the nightmare they had. The process is slow, filled with meaningless paperwork and you can’t contact anyone competent enough to help you out.

Some investors have spent over a year trying to close a foreclosure deal. So hopefully the process is getting more efficient, it definitely can’t get any worse.

What Happens in Florida, Will Happen Everywhere Else

Sun Rock Properties — Sat, 24 Apr 2010 15:44:35 +0000

Want to know what will happen in the U.S. Real Estate Market? Watch Florida.

Jim Cramer says Florida is the template for where the US housing market is headed.

Florida real estate lead the way during the boom and the bust, and will lead the way in a recovery. Look to Florida to find out what will happen next.

For pre-purchase investment consulting and expert property management, contact Sun Rock Property Management. We manage your investment in Bradenton, Sarasota and Lakewood Ranch, Florida.

Florida Foreclosure Pain Continues

Sun Rock Properties — Sun, 25 Oct 2009 11:55:00 +0000

Foreclosure activity is on the rise as Florida continues to have one of the highest rates of foreclosures in the nation. California and Nevada round out the top three and foreclosures were reported as increasing 32 percent from last year.

This means that more bank repos are on the way and depreciation of Florida real estate values will continue.

The bottom is still a long way off, and investors should be patient, consider cashflow and ask “what if this property depreciates 3% per year for the next ten years?”

This statement is worth noting “In Florida, one in every 135 households received a filing in April.”

Sun Rock Property Management – Lakewood Ranch, Bradenton & Sarasota

Property Underwater? You have 2 choices

Sun Rock Properties — Sun, 04 Oct 2009 11:47:00 +0000

Pay or do not Pay.

Florida, California and Nevada fill up the top ten cities with negative equity, with 43.5% of homes being upside down in nearby Port St. Lucie.

You pay, you stay. You don’t pay, you will be foreclosed on and will be forced to move out.

Modifications are rare, and usually only done by community banks. Refinancing is not an option because you have no equity. You can’t sell your property, at least without the bank’s permission (short sale) and even under the best circumstances, this process can be a nightmare. You are not going to get “bailed out” by the government and don’t think that hiring an attorney to tell the mortgage company to produce the note is your ticket to a free ride. Paying a “stop foreclosure expert” is probably the biggest scam out there right now, you pay them a few thousand dollars to do absolutely nothing. You are better off wiring your money to Nigeria to collect your lottery winnings. All of these are just delaying the inevitable. You have to pay to play.

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Top 5 Foreclosure Mistakes

Sun Rock Properties — Sun, 13 Sep 2009 17:08:01 +0000

If you do decide to invest, make sure you avoid these top 5 foreclosue purchasing mistakes:

1. You say, “It was worth double that in 2005.” IRRELEVANT. You need to look at where the value is going, not where it’s been. Most properties will continue to depreciate for many years. The property is currently worth whatever you are buying it for and will be worth less in years to come.

2. Getting a Mortgage. Guidelines are very strict, making it difficult for everyone to qualify. Investors should be prepared to put at least 30% down and wait 60+ days for the loan to close. Paying cash is the best way to go, once you own the property you can possibly refinance to get your cash back out of it.

3. No Inspection. Do whatever you can to view the property before you put down the deposit. All foreclosures are sold “as is” and you are responsible for all repairs. One major repair could eliminate all of your equity and cash flow.

4. New Landlord. There is plenty to managing a property, from dealing with tenants, to maintaining the property and now, just collecting rent is a challenge. Hire a property manager to take care of this stuff for you, you invested in real estate to have more time and money anyway.

5. Negative cash flow. Then why are you buying it? For appreciation? Good luck. You have to be prepared to hold the property for long periods of time as it further depreciates and you are unable to sell it. Factor in everything, (taxes, insurance, homeowner’s dues, repairs, property management) and if you are not getting at least $100 in cash flow each month, walk away.

There is always a good time to buy real estate, as long as you buy it right. Run your numbers for cashflow, forget about flipping or appreciation and have an exit strategy.