Interest Rates High - or NOT?

Interest Rates High? or NOT...

In Ross Ohio in October of 1981, I was walking my dog down the street from where I lived. There were two homes under construction and as I walked past I saw a young couple coming out what would soon be the front door. I asked them if they know what was going on with these two houses. They were pretty excited. You see the bank had just told them that they could borrow 90 percent of the purchase price and the bank would lock their interest rate for five years! Not only that, but the interest rate was 5 points below the base rate! Now, not many of you may remember interest rates in 1981 ( Click here ) but 5 points below base rate put this couples interest rate at 12%!
This was a great deal, and the price of the house seemed very fair. I called that bank on Monday morning and asked if they would do the same deal for an investor. What I remember the banker telling me was, “Gregg, we will do this for anyone. We are trying to get some activity in this development.” I gave him a thumbnail sketch of my financial picture (I had a house in Cleveland that I could not sell so was renting and one that I lived in, up the street from this new development.) He asked me to stop by.
The next Saturday I was in working in the garage of my home up the street and this banker stopped to chat.. He asked me to take a drive down to the bank with him. Forty-five minutes later I called my wife; when she answered she was a bit confused. You see, she thought I was still working in the garage. I said no, I was down at the bank, and by the way, could she come down and sign some papers because we just bought another house?
The rest of the story on this house is that it was finished in about five months. During that time I sold it via a lease option. It had positive cash flow immediately. I eventually did sell it about five years later, and with a great profit, and not to the folks who leased it.
I thought of this story today after reading that mortgage rates dropped again for the third month in a row. (Click Here) Now the rates are below 6.5%. Boy what I could have done in Ross with that rate!
This is indeed a great time to buy. There are many nay-sayers out there that are telling us that there is a glut of inventory. But let me tell you something. When this market turns around it is going to turn around so fast that many folks will be left wondering how they missed the boat. I believe there is a pent up demand and once those buyers come back they will come back with conviction. They will have studied the market and will feel confident that prices have hit the lowest they will hit. Over inventoried condos will still be a slow comeback, but Southwest Florida will come back quicker and sooner that the rest of Florida. Our prices are still quite a bit lower than our competitive markets on the East Coast.
I am very please to announce that Eric Lahaie has joined the Commercial Team of Market America Realty and Market America Development. We are excited about the experience and enthusiasm Eric brings to the business. Please email Eric about investment opportunities, commercial land or buildings you are looking to sell, or if you are looking at investing in office condos. You will not be disappointed.
We do have some opportunities for investments in office condos at Cyperlin Center and a few other complexes in the immediate vicinity. We are in the contract stages of preconstruction at Cyperlin. Prices start at around one million dollars. Call me for details. We do have some investment programs for a limited number of condos.
Talk to us also if you are looking to build commercial buildings. We have a few choice sites on McGregor and Gunnery Road. Some with entitlements all done.

Remember, we are in the real estate customer business…not the real estate agent business.

Deb Krikorian, our Residential Top Producer has the following opportunities for those of you looking to capitalize on the great prices and low interest rates in this buyers market:

Citadel – Condos from $229,000 (www.citadel-bonita.com)

Crown Colony - Beautiful golf course condo on a preserve – 2,200+ square feet- FURNISHED – 3 bedrooms, 2 baths, 1-car garage with upgrades; close to the beaches in Fort Myers and Sanibel; $410k asking. Very popular upscale country club community, with restaurant, community pool, fitness center, tennis.

Great starter townhome in gated community with pool, fitness center, club house; close to I-75 and downtown Fort Myers – 2 bedrooms, 2 ½ baths, 1-car garage, 1129 sq. ft.; asking $210k.

Popular community only 4 miles to Fort Myers Beach – gated with resort-style pool, fitness center, library, club house. Perfect for those needing getaways plus you can rent very well in season. 3 bedrooms, 2 baths, 1357 sq. ft.; asking $245k.

Fantastic Gulf Access single family home on canal in Cape Coral; over 2000 sq. ft. under air, 3 bedrooms, 2 baths, oversized 2-car garage, 10,000 lb boat lift, wrap around dock, and lovely pool. Built in 2003. Asking $549k.

Grande Isle, overlooking Charlotte Harbour in Punta Gorda; 1669 sq. ft. FURNISHED 2 bed + den, 2 bath, underground parking, upgrades, asking $689K. 2300+ sq. ft. 3 bedroom + den, 2 bath condo, underground parking, asking $875k. Amenities include upscale clubhouse, pool, spa, fitness center, theater, restaurant on premises, golf and tennis at country club, deep water marina, and more.

Reflection Lakes -Fantastic attached villa home in one of the most desirable communities in Fort Myers just under1800 sq. ft., 3 bedrooms, 2 baths, 2-car garage with tons of upgrades. Amenities include community pool, spa, fitness center, tennis, clubhouse. Asking $329.9K.

Renaissance Country Club -Luxury coach home in Fort Myers – 2000+ sq. ft. under air, 3 bedroom, 2 bath, tons of upgrades, 2-car garage. Amenity rich community. Asking $519k.

The Villas in Fort Myers. Affordable single family home in established neighborhood. Very desirable location close to Bell Tower Mall. 3 bedroom, 2 bath, 2-car garage, 1440 sq. ft under air, no homeowners’ fees, has been updated and renovated. Asking $259k.

As always - call or email with any questions or comments. Gregg 239-425-0771 Email Gregg@ma-realty.com

Gregg
www.investinwaterfront.com