Volume 5 Number 2 January 12, 2007
Insurance, Impact Fees, and Taxes
From Will Rogers, "...out here I had been putting what little money I had in Ocean Frontage, for the sole reason that there was only so much of it and no more, and that they wasn’t making any more..." April 13, 1930 (Note: this is the line that is often paraphrased to say: put your money in land, because they aren't making any more of it. This is the most "famous" of the Will Rogers quotes on land or real estate.)
Real Estate has not changed much since 1930, they still are not making any more waterfront land, but now what land there is, is getting taxed, insured and other wise burdened with the ever increasing cost of government.
As investors in commercial and residential property here in Florida, the triple whammy of Insurance, Impact Fees, and Taxes will open up opportunities for us, not just problems.
Older properties are costly to maintain and insure, and yet on the other hand new properties will be much more expensive to build and permit. In between lie the opportunities; opportunities in newer construction and buildings that are under construction.
(By the way, Hurricane Charlie’s EYE OF THE STORM went right over my then brand new Grand Isle in Burnt Store Marina – I had ZERO damage to the condo and only minor damage to the roof air conditioner units. New construction with out a doubt in my mind can withstand amazing stress.)
My update to Will’s famous quote would be something like, “Buy properties that have been built since 1994 but before they raise the impact fees in mid 2007, cause after that it will be too darn expensive to build.” Once this inventory is gone, those condos and buildings that need to be built after that – will be SO much more expensive.
Let’s take a quick look at each of the three “challenges” we have – Insurance, Impact Fees, and Taxes and where they may actually open up an opportunity for us:
Insurance
The Problem: Skyrocketing insurance premiums for improved property.
Very simply, older buildings cost more to insure than new buildings. Older income properties will have to increase common area insurance charges to their tenants and will sometimes cost more to rent than newer builders of a like kind, just because of the higher CAM charges. Older condo will have condo associations that will have to pass through VERY high insurance premium renewals.
Furthermore, when income properties change hands the new owner will have a higher insurance cost than the previous owner. (I am not sure why, but we have seen this to be the case time after time) - This means that sales prices will have to be adjusted to compensate for the lower returns cause by higher insurance costs or simply the higher cost of ownership, in the case of residential.
High insurance costs open up opportunities to the knowledgeable buyers that make use of this information to either negotiate a better deal or make a smarter buy on a newer building. Smart investors will make sure that their leases are drawn up properly with insurance costs pass-throughs. This puts the burden of the increasing insurance cost onto their tenants.
Savvy investors also realize that many tenants will be vacating older expensive leaseholds in favor of buying new energy and insurance effective buildings. This is why new office condos like Brantley Commons are selling well.
Impact Fees
Road impact fees are the fees that a builder or developer has to pay the county for the right to pull his permits and the money theoretically goes to build roads. These impact fees are set to triple come the end of this month. This means where the road fees were about $3000 for a single family home they will now be about $9000. A 10,000 square foot office building road impact fee was $23,000. Now it will be $74,000!! For the full schedule of ALL impact fees click here.
There is a mad scramble by builders, developers, and architects to get their plans submitted in time to get under the fee increase deadline the end of this month.
The buildings that will miss this deadline are simply gong to cost that much more to buy or rent. What is the effect of this? Higher costs for every one. Make no mistake, prices will not come down lower to meet the pre increase price, all buildings will ratchet up in price to the new levels.
What is the opportunity? Buy buildings that did not have to absorb these higher costs; lock in rental and purchase prices now. This big inventory we now have DOES NOT HAVE THESE FEES ON THEM.
Soon there will be a slow down in building, which will decrease supply, which in turn will increase prices because of the demand imbalance. We need to buy at the right time in this cycle.
Existing buildings, residential or commercial are a wise buy – until things even out because of supply and demand. (This is a GOOD time to buy). Let me put it to you this way, if I told you that there would be a mandatory price increase from all sellers on every building that will be built after, say June 1st, wouldn’t it behoove you to buy NOW? Of course it would.
Taxes
The Save our Home Initiative places a limitation of 3% on annual assessment increases on homestead exempt property. This generally is a good thing. But the unintended effect of this SOH was to, in essence, trap home owners in their homes. Many cannot afford to move and lose this ceiling on their taxes. Ken Wilkinson, the author of SOH, is a big advocate of the portability of this exception (See article here). Until this portability issue is addressed and approved, taxes on all new homes and commercial property will be the same. Homesteaded property will, however, have only a 3% increased in assessed value.
Once this portability is approved there will be many opportunities in the residential market. Homeowners that want to down size or simply change residences will be able to.
For more information on this issue, please visit www.leepa.org and click on Exemption Information on the left column.
As buyers of real estate in Lee County, Florida, you must have a thorough knowledge of the issues I mention above. My conclusion and I cannot repeat this often enough, is that prices will go up, not down. Be it a second or first home or an investment property, now is the time to buy.
To find our condo opportunities: www.investinwaterfront.com.
For some of our commercial listings click here
For archived weekly emails you can go here
Thanks! Happy New Year!
Gregg Fous
Gregg@ma-realty.com
Friday, January 19, 2007
Snowbirds - 2007
Volume 5 Number 1 January 8, 2007
Fort Myers Prepares for Snowbirds – 2007
The rumor is out that Pulte took over 150 reservations for their new offerings in Ave Maria. The new community has started quite a buzz and we are all pleased that there are so many buyers out there. The reservations go to contract soon and we are anxious to see how many convert to contract. I suspect the number will be impressively high.
I spent a good part of the last few days visiting sales centers and getting the pulse of what is going on for the New Year. December was a slow month – but there are exceptions. WCI Crown Colony had their best month of the year, Lennar’s new Community Tern Bay, just North of Burnt Store Marina and Grand Isle on Burnt Store road sold 18 homes last month. I visited their sales center and was impressed with both their prices and their offerings: Condos from $220,000 and single family homes up to $410,000 – all with bundled golf. David Meyers, the Area Sales Manager, told me that the amenitised projects for Lennar are doing very well. Their buyers are normally buying their second or third home and like the life style of their communities – in particular bundled golf. (The golf course will open up in two weeks). This project is just north of Burnt Store Marina where I spent the morning talking with condo owners in Grand Isle. There were a few closings last month in Grand Isle and one already this month. There is not a better deal for waterfront condos that I am aware of on this coast. It’s about the boating folks; they are just not making any more deep water marinas that you can live on. Now is definitely the time to buy here.
From Grande Isle I ventured inland to River Hall and The Verandah; both on Palm Beach Boulevard east of I-75. The Verandah was impressive and will eventually have 1,700 tops. Look for that to be by 2011. I particularly liked the feel of the community and the style of homes. Make no mistake, these homes are not by the beaches – it will take you a good hour in season to stick your toes in the Gulf – but they are wonderful lifestyle communities centered around golf, tennis, and active life style. Both have incorporated mix used commercial projects in their plans, River Hall will encompass a town center with a firehouse, a new elementary school and a village square.
The big boys like Bonita Bay and LandMar think growth out east of 75 and Palm Beach Boulevard is happening and so do I. There are some diamonds in the rough out there and if you are interested in adding some “in the path of growth properties” to your portfolio let one of our agents help you. Both Burnt Store Road, where WCI, Realmark and Lennar are building and Palm Beach Boulevard are excellent choices. But be careful, the blood is already in the water and the sharks are circling. Let a good agent guide you.
We are involved in some other waterfront (read RIVERFRONT) property on Palm Beach Boulevard and our commercial division is looking for an anchor restaurant for a waterfront location that we are working on. (Another great marina location that we will be marketing much down the road.) We also have an eight acre parcel for sale on the north side of the river that would be good for five or ten single family homes or up to 90 condos.
I promised an update on our North Carolina trip: We fell in love with the Boone, Banner Elk, Blowing Rock area and will return in April to scope out a place to rent for a month later this summer. I spoke to many Realtors and looked at a lot of land. Most in the business commented that they have not seen a down turn in the market. Keep in mind this is not a boom town area – more of a steady slow paced growth. Vistas and temps are marvelous with elevations from 3000 to 4500 feet; Lots of restaurants, shops and things to do. Gail and I sojourned here exactly because it has been a summer resort area for many decades. We stayed all week in a lovely B and B in Blowing Rock called Crippens. We could walk to shops, restaurants and bars, or sit by the fireplace and read. Home prices were not low, at least not close to town, but I will have to stay a while to get a good sense of what and where to buy. More to follow.
On the commercial front we now have about twenty properties that we have listed for sale – from Land to entitled development sites to office buildings and warehouses. I also have some good places to park 1031 money if you have some. Good NNN investments are still hard to find – so we continue to make our own.
I receive a weekly e-letter that I believe is superb and worth getting. It is written by John Mauldin and worth looking into. Today’s issue has a good piece on the housing market and his forecast for the next year. Click HERE to subscribe. My general feeling about the boom or bust in the housing market in our area is that I am going to ignore it - just like all the out of town buyers seem to be. For my team and me – it’s back to business as usual – usual being pre- 2005.
Best to all-
Gregg Fous
Gregg@ma-realty.com
Fort Myers Prepares for Snowbirds – 2007
The rumor is out that Pulte took over 150 reservations for their new offerings in Ave Maria. The new community has started quite a buzz and we are all pleased that there are so many buyers out there. The reservations go to contract soon and we are anxious to see how many convert to contract. I suspect the number will be impressively high.
I spent a good part of the last few days visiting sales centers and getting the pulse of what is going on for the New Year. December was a slow month – but there are exceptions. WCI Crown Colony had their best month of the year, Lennar’s new Community Tern Bay, just North of Burnt Store Marina and Grand Isle on Burnt Store road sold 18 homes last month. I visited their sales center and was impressed with both their prices and their offerings: Condos from $220,000 and single family homes up to $410,000 – all with bundled golf. David Meyers, the Area Sales Manager, told me that the amenitised projects for Lennar are doing very well. Their buyers are normally buying their second or third home and like the life style of their communities – in particular bundled golf. (The golf course will open up in two weeks). This project is just north of Burnt Store Marina where I spent the morning talking with condo owners in Grand Isle. There were a few closings last month in Grand Isle and one already this month. There is not a better deal for waterfront condos that I am aware of on this coast. It’s about the boating folks; they are just not making any more deep water marinas that you can live on. Now is definitely the time to buy here.
From Grande Isle I ventured inland to River Hall and The Verandah; both on Palm Beach Boulevard east of I-75. The Verandah was impressive and will eventually have 1,700 tops. Look for that to be by 2011. I particularly liked the feel of the community and the style of homes. Make no mistake, these homes are not by the beaches – it will take you a good hour in season to stick your toes in the Gulf – but they are wonderful lifestyle communities centered around golf, tennis, and active life style. Both have incorporated mix used commercial projects in their plans, River Hall will encompass a town center with a firehouse, a new elementary school and a village square.
The big boys like Bonita Bay and LandMar think growth out east of 75 and Palm Beach Boulevard is happening and so do I. There are some diamonds in the rough out there and if you are interested in adding some “in the path of growth properties” to your portfolio let one of our agents help you. Both Burnt Store Road, where WCI, Realmark and Lennar are building and Palm Beach Boulevard are excellent choices. But be careful, the blood is already in the water and the sharks are circling. Let a good agent guide you.
We are involved in some other waterfront (read RIVERFRONT) property on Palm Beach Boulevard and our commercial division is looking for an anchor restaurant for a waterfront location that we are working on. (Another great marina location that we will be marketing much down the road.) We also have an eight acre parcel for sale on the north side of the river that would be good for five or ten single family homes or up to 90 condos.
I promised an update on our North Carolina trip: We fell in love with the Boone, Banner Elk, Blowing Rock area and will return in April to scope out a place to rent for a month later this summer. I spoke to many Realtors and looked at a lot of land. Most in the business commented that they have not seen a down turn in the market. Keep in mind this is not a boom town area – more of a steady slow paced growth. Vistas and temps are marvelous with elevations from 3000 to 4500 feet; Lots of restaurants, shops and things to do. Gail and I sojourned here exactly because it has been a summer resort area for many decades. We stayed all week in a lovely B and B in Blowing Rock called Crippens. We could walk to shops, restaurants and bars, or sit by the fireplace and read. Home prices were not low, at least not close to town, but I will have to stay a while to get a good sense of what and where to buy. More to follow.
On the commercial front we now have about twenty properties that we have listed for sale – from Land to entitled development sites to office buildings and warehouses. I also have some good places to park 1031 money if you have some. Good NNN investments are still hard to find – so we continue to make our own.
I receive a weekly e-letter that I believe is superb and worth getting. It is written by John Mauldin and worth looking into. Today’s issue has a good piece on the housing market and his forecast for the next year. Click HERE to subscribe. My general feeling about the boom or bust in the housing market in our area is that I am going to ignore it - just like all the out of town buyers seem to be. For my team and me – it’s back to business as usual – usual being pre- 2005.
Best to all-
Gregg Fous
Gregg@ma-realty.com
Year End Message
Volume 4 Number 31 December 23, 2006
Year end message from Gregg Fous
It has certainly been a tumultuous year in real estate here in South West Florida, at least for me. But I am thankful. Thankful for all the friends I have made, the support I have received, and the professionals that have helped guide me through the year. I want to thank all of you that have been subscribers for the past years and for your kind comments and suggestions. I am thankful for my wonderful wife, Gail, who has been by my side every day offering support, wisdom, and the emotional connection that I need to keep me anchored.
I have been a goal setter since I can remember. Some goals I have achieved and some I have not, but the bar is always moving and as I reflect on the past years I realize that some of my previous goals have been met and indeed exceeded; and yet I failed to notice and I failed to reflect on those successes.
So now I reflect, sitting here in the early morning in a waterfront home basking in balmy temperatures of south Florida, a wonderful family all close by.
And I want to say thank you to all of you.
Have a very safe end of year, and please, as the end of the year approaches, take some time to reflect and enjoy the fruits of your labors.
____________________________
Gail and I will leave Florida for ten days and take a “busman’s holiday” and go property exploring in North Carolina. I don’t expect to buy anything, but any of you that know me know that when I played Monopoly when I was a kid I bought what ever I landed on. I will give you an update in January.
All the best to you and your family,
Gregg
PS. You may notice that I sent this email from my Hotmail account. I did this because I have been getting many complaints from subscribers that have not been receiving my weekly emails. If you get this one but have not been getting the emails for a few months, I would appreciate a return email telling me so - I may change software. I suspect that some servers are blocking my newsletter as Spam. Remember you can always go to www.investinwaterfront.com and read the newsletters from the archives.
Gregg Fous
Year end message from Gregg Fous
It has certainly been a tumultuous year in real estate here in South West Florida, at least for me. But I am thankful. Thankful for all the friends I have made, the support I have received, and the professionals that have helped guide me through the year. I want to thank all of you that have been subscribers for the past years and for your kind comments and suggestions. I am thankful for my wonderful wife, Gail, who has been by my side every day offering support, wisdom, and the emotional connection that I need to keep me anchored.
I have been a goal setter since I can remember. Some goals I have achieved and some I have not, but the bar is always moving and as I reflect on the past years I realize that some of my previous goals have been met and indeed exceeded; and yet I failed to notice and I failed to reflect on those successes.
So now I reflect, sitting here in the early morning in a waterfront home basking in balmy temperatures of south Florida, a wonderful family all close by.
And I want to say thank you to all of you.
Have a very safe end of year, and please, as the end of the year approaches, take some time to reflect and enjoy the fruits of your labors.
____________________________
Gail and I will leave Florida for ten days and take a “busman’s holiday” and go property exploring in North Carolina. I don’t expect to buy anything, but any of you that know me know that when I played Monopoly when I was a kid I bought what ever I landed on. I will give you an update in January.
All the best to you and your family,
Gregg
PS. You may notice that I sent this email from my Hotmail account. I did this because I have been getting many complaints from subscribers that have not been receiving my weekly emails. If you get this one but have not been getting the emails for a few months, I would appreciate a return email telling me so - I may change software. I suspect that some servers are blocking my newsletter as Spam. Remember you can always go to www.investinwaterfront.com and read the newsletters from the archives.
Gregg Fous
Our Real Estate is Local, Our Buyers are National
Our Real Estate is Local, Our Buyers are National
The local housing market is showing signs of stabilizing, based on anecdotal evidence of new mortgage applications and activity at local title agencies; and some “running of the traps” by yours truly. I have also seen resistance by sellers to go below certain price levels and first time home buyers are being enticed back to the market with attractive interest rates and attractive buyer incentives. Sales center traffic is up and buyers are making deals.
Locals mostly agree that Lee county feels the pain last and heals the quickest, based mainly on the steady influx of new buyers retiring (Remember Baby Boomers?)
But are we in for a recession? It seems there are many pundits on each side of this issue, but put me on the side of the fence that is looking for a slowdown, and rather short lived at that, rather than a recession.
I believe we will still see some softening of housing prices, especially in some pockets, but in general they are beginning to stabilize and indeed in some niches like waterfront, increase.
“If my house is not selling at $500,000, why not have it “not sell” at $550,000?” These sellers are creeping up the price perception within communities. They figure if they are going to wait for a buyer, they might as well get the higher price. They may be right.
I tried last week, rather unsuccessfully perhaps, to get the point across that we need to think outside of our box. Our buyers will come from out of town and are not jaded by the negative publicity about falling prices and over inventory. The fall in prices, by the way, was just from the just the froth. The froth in high prices that had no substance in true value but was based more on speculators “whipping up the mix”.
Here are some of the reasons I believe we will not see a recession:
The inverted yield curve. While most inverted yield curves (Short term rates higher than long term rates) preceded a recession, this time our short term rates are not high, rather it is the long term rates that are low.
Credit is ample and cheap. Rates are still low and lenders, while tightening up on the sub-prime market, will not get hurt badly by the foreclosure rates on mortgages because they have sold that debt into the market. They are still aggressively pursuing debt. (By the way – I just got a new car loan at less than 6%!)
Inventory is being curbed. Housing starts are down and builders are not fueling the fire with an over abundance of single family homes and condos. Auto and manufacturing inventory is being curbed not because of interest rates but because of a correct and speedy response to demand softening. Manufacturers ability today to track and respond to demand is unparalleled in history.
US Exports are up. This is a result of the strong economies of our trading partners.
Retail sales are strong. The November results are above expectations over October (up 1%). Locally malls are reporting heavy traffic and strong sales.
Bond yields have jumped recently. (This indicates investors are more optimistic about the future)
Unemployment rate is low and looks like it will remain low.
Price decreases in the housing market lately were just “from the froth” of the last speculative drive up in prices.
Pressure on prices at the pump for gasoline have been alleviated
I am constantly reminded about the difference between local perception in our market and the perceptions from an outsider. Folks, we are still booming here. Ask any visitor from the north. Right now we have an absorption problem, but that is an insider view. To the outsider we have ample choices for their second home, fantastic weather, attractive financing, great restaurants, beaches, golf, and shopping. The high inventory is not a problem to them, but an advantage.
Two years ago buyers were being asked to buy in areas that were not served well by retail. Now, the retail developers have responded well to anticipated growth and have built new malls and neighborhood centers. Now the buyers can still get great deals and they don’t have to hope for the retailers to come. This is a big difference from now and two years ago.
This season is a great time to buy a second home and in a few years from now we will be looking back and kicking ourselves for not buying now, locking in both low prices and low interest rates. Our commercial business is very strong – both from investors and end users.
(If you still think our market is local, wait until Boston Red Sox Spring training starts and Daisuke Matsuzaka starts bringing in the tourists from Japan).
Lee County only recently topped the 500,000 population mark. This is a watershed event in our growth and has put us on national and international economic radar that we were not on before. Our prices and attractions are SOOOO much better that the west coast of the US. Matsuzuka will bring us exposure to a market that in the past has largely ignored us. (Thank you Red Sox)
In macro economic sense, Lee County is thriving and shows great promise in all indicators. This “bad time” in the housing market is just a spacer between good times. It will not last long and then I suggest you hold on and get ready for explosive growth.
Let us help you with your home buying needs. If you decide to sell, let us counsel you.
If you are interested in commercial investments click here.
Gregg Fous
Gregg@ma-realty.com
The local housing market is showing signs of stabilizing, based on anecdotal evidence of new mortgage applications and activity at local title agencies; and some “running of the traps” by yours truly. I have also seen resistance by sellers to go below certain price levels and first time home buyers are being enticed back to the market with attractive interest rates and attractive buyer incentives. Sales center traffic is up and buyers are making deals.
Locals mostly agree that Lee county feels the pain last and heals the quickest, based mainly on the steady influx of new buyers retiring (Remember Baby Boomers?)
But are we in for a recession? It seems there are many pundits on each side of this issue, but put me on the side of the fence that is looking for a slowdown, and rather short lived at that, rather than a recession.
I believe we will still see some softening of housing prices, especially in some pockets, but in general they are beginning to stabilize and indeed in some niches like waterfront, increase.
“If my house is not selling at $500,000, why not have it “not sell” at $550,000?” These sellers are creeping up the price perception within communities. They figure if they are going to wait for a buyer, they might as well get the higher price. They may be right.
I tried last week, rather unsuccessfully perhaps, to get the point across that we need to think outside of our box. Our buyers will come from out of town and are not jaded by the negative publicity about falling prices and over inventory. The fall in prices, by the way, was just from the just the froth. The froth in high prices that had no substance in true value but was based more on speculators “whipping up the mix”.
Here are some of the reasons I believe we will not see a recession:
The inverted yield curve. While most inverted yield curves (Short term rates higher than long term rates) preceded a recession, this time our short term rates are not high, rather it is the long term rates that are low.
Credit is ample and cheap. Rates are still low and lenders, while tightening up on the sub-prime market, will not get hurt badly by the foreclosure rates on mortgages because they have sold that debt into the market. They are still aggressively pursuing debt. (By the way – I just got a new car loan at less than 6%!)
Inventory is being curbed. Housing starts are down and builders are not fueling the fire with an over abundance of single family homes and condos. Auto and manufacturing inventory is being curbed not because of interest rates but because of a correct and speedy response to demand softening. Manufacturers ability today to track and respond to demand is unparalleled in history.
US Exports are up. This is a result of the strong economies of our trading partners.
Retail sales are strong. The November results are above expectations over October (up 1%). Locally malls are reporting heavy traffic and strong sales.
Bond yields have jumped recently. (This indicates investors are more optimistic about the future)
Unemployment rate is low and looks like it will remain low.
Price decreases in the housing market lately were just “from the froth” of the last speculative drive up in prices.
Pressure on prices at the pump for gasoline have been alleviated
I am constantly reminded about the difference between local perception in our market and the perceptions from an outsider. Folks, we are still booming here. Ask any visitor from the north. Right now we have an absorption problem, but that is an insider view. To the outsider we have ample choices for their second home, fantastic weather, attractive financing, great restaurants, beaches, golf, and shopping. The high inventory is not a problem to them, but an advantage.
Two years ago buyers were being asked to buy in areas that were not served well by retail. Now, the retail developers have responded well to anticipated growth and have built new malls and neighborhood centers. Now the buyers can still get great deals and they don’t have to hope for the retailers to come. This is a big difference from now and two years ago.
This season is a great time to buy a second home and in a few years from now we will be looking back and kicking ourselves for not buying now, locking in both low prices and low interest rates. Our commercial business is very strong – both from investors and end users.
(If you still think our market is local, wait until Boston Red Sox Spring training starts and Daisuke Matsuzaka starts bringing in the tourists from Japan).
Lee County only recently topped the 500,000 population mark. This is a watershed event in our growth and has put us on national and international economic radar that we were not on before. Our prices and attractions are SOOOO much better that the west coast of the US. Matsuzuka will bring us exposure to a market that in the past has largely ignored us. (Thank you Red Sox)
In macro economic sense, Lee County is thriving and shows great promise in all indicators. This “bad time” in the housing market is just a spacer between good times. It will not last long and then I suggest you hold on and get ready for explosive growth.
Let us help you with your home buying needs. If you decide to sell, let us counsel you.
If you are interested in commercial investments click here.
Gregg Fous
Gregg@ma-realty.com
Who are you and What do you Want?
Volume 4 Number 29 December 3, 2006
Who are you and what do you want?
Friday night Gail and I threw our first Christmas party at the new home. About 90 guests enjoyed an unusually warm Friday evening riverfront poolside. The yard and pool area was spectacularly decorated by my daughter Nicole Long (Visual Manager at Saks Fifth Avenue) and catered by Jack and Micheal Elias, Inc.. Gail did a stupendous job making the house Christmas festive, warm and welcoming, and elegant but comfortable.. We both saw very little of each other as we mingled and made sure everyone got to meet each other.
I believe one of the reasons the party was a success (measured by the comments, emails and phone calls I have received since Friday – and perhaps the absence of left over food and alcohol) was the wide variety of folks that Gail and I count as friends. You may have heard me say before that, “it’s only work if you would rather be doing something else”, and indeed we do enjoy what we do and the people we associate with. We do business with our friends.
A great deal of the conversation was about real estate, as you can imagine; we have friends that are investors, builders, architects, real estate agents, doctors, lawyers, bankers, hair stylists, developers, furniture store owners, and retired tennis pros. We have friends that are handymen, teachers, salesmen, secretaries, photographers, marine biologists, and restaurant owners. There were as many opinions about what was going on in the market as there were people in attendance. Some negative, some positive, and some refreshing.
Those in attendance were all concerned about well, themselves. Their take on the market was tunneled by their own experience and shaded by their own palette. The furniture guy wanted to sell more furniture, the architect to design more buildings. The land investor was excited about the current market and buying more land. The builder was worried about the slow down in construction. The caterer is too booked to worry much about anything in the real estate business, and the stock broker talked about the effect of the housing market on the general economy and on Wall Street. We all look at things from our own box.
I just read Denny Grimes editorial today (December 3, 2006) in the News Press. I could not find a link for it so you will have to look for yourself. It was very well written and in it Denny urges sellers to lower prices to sell their homes. This is what Denny does, he makes his money by representing sellers and buyers of homes, but of course he only gets paid when the homes actually sell.. He agrees with me that this is a great time to buy. He tells us that buyers, however, are waiting for “the bottom”. I would add that we will not see the bottom except in our rear view mirror, and by then it may be too late.
Denny is in the middle of the market, in essence he is in the middle of the forest. He is about the best at what does and the consummate professional; but even so, his view of the market is affected by the fact that his business may be down a certain percentage from the previous year.
I, for example, will in many cases not suggest lowering the price. Indeed it will not be until prices start to go up that the buyers will realize they missed the bottom. My advice is patience and confidence in the market. But my box is a bit different from Denny’s. I deal more with investors than general residential real estate
I think it is time we think outside the box. I have heard the term for years. I am sure you have too. It’s one of those catch phrases that consultants use. To me the expression means to look at something from outside your current realm of influence. For the past hour, before I started writing this missive, I went Yahoo searching for articles on “Thinking outside the box” and I did not find any article that actually presented a view from outside the respective influence the article was written from. In order to think outside the box you must first recognize what your box is.
All of us live in various communities. Certainly Gail and I live in Florida. We also live in downtown Fort Myers, but we also live in “parent community”, the “real estate community”, the “grandparent community”, the “developer community”, etc. We, like you, wear many hats, or live in many “boxes”. Most likely our perspective is confined and guided by these influences, by these boxes.
For many years, I was in the plastics business. I sold plastic film to the diaper and sanitary napkin industry all over North, Central, and South America. I was immersed in that business. My “box”, if you can believe it, was diapers and sanitary napkins. For years business was wonderful because Latin America was my oyster. My pearl was that 15 years ago most of Latin America was not using diapers or sanitary napkins. The business grew like crazy. We built capacity, but after a few years we needed more business. In order to find it, I needed to look outside the box. I went to trade shows for totally unrelated fields to “think outside the box”. I actually went to wood working shows, metal conferences, health conferences, rubber conferences. I went searching for new markets, new uses. Eventually, I started supplying house wrap, roofing membranes, protective films for packaging and more. In order to grow and succeed, I went looking for needs to fill in new communities. I thought outside my box.
In an earlier newsletter I talked about investment advisors that tell you that they will review your entire investment portfolio, but never even mention real estate. Stocks and bonds are their “box”. You need to learn what box people you deal with are in so you can adjust your thinking. Don’t let them trap you into their box.
On Friday night I got perspectives from many walks of life at our party, but still pretty narrowly focused. I love to meet folks from out side our town, outside our state, and outside our business. I can learn from everyone. I absolutely love to meet new people with fresh perspectives.
Know your “box” and know how to get out of it. You will learn and grow. Know the “boxes” of your friends and the people you deal with. You will be better for it.
The simple facts in our market are that we are in an “over inventory” position, but when you talk to visitors from out of state; they are thrilled with their choices, our weather, our shopping, and our restaurants. Home price have dropped, for sure, but not below prices two years ago. If you stick with the four year hold rule AND you bought reasonably well – patience will be your friend. If you bought poorly at the peak, you may want to take your losses sooner rather that later and not pour more good money after bad.
I would love to hear from you and find out who you are and what your concerns and objectives are and learn more about you.
It is my belief that many of you are sitting on the sidelines waiting for prices to go back up before you buy.
Who are you and what do you want?
Who are you and what do you want?
Friday night Gail and I threw our first Christmas party at the new home. About 90 guests enjoyed an unusually warm Friday evening riverfront poolside. The yard and pool area was spectacularly decorated by my daughter Nicole Long (Visual Manager at Saks Fifth Avenue) and catered by Jack and Micheal Elias, Inc.. Gail did a stupendous job making the house Christmas festive, warm and welcoming, and elegant but comfortable.. We both saw very little of each other as we mingled and made sure everyone got to meet each other.
I believe one of the reasons the party was a success (measured by the comments, emails and phone calls I have received since Friday – and perhaps the absence of left over food and alcohol) was the wide variety of folks that Gail and I count as friends. You may have heard me say before that, “it’s only work if you would rather be doing something else”, and indeed we do enjoy what we do and the people we associate with. We do business with our friends.
A great deal of the conversation was about real estate, as you can imagine; we have friends that are investors, builders, architects, real estate agents, doctors, lawyers, bankers, hair stylists, developers, furniture store owners, and retired tennis pros. We have friends that are handymen, teachers, salesmen, secretaries, photographers, marine biologists, and restaurant owners. There were as many opinions about what was going on in the market as there were people in attendance. Some negative, some positive, and some refreshing.
Those in attendance were all concerned about well, themselves. Their take on the market was tunneled by their own experience and shaded by their own palette. The furniture guy wanted to sell more furniture, the architect to design more buildings. The land investor was excited about the current market and buying more land. The builder was worried about the slow down in construction. The caterer is too booked to worry much about anything in the real estate business, and the stock broker talked about the effect of the housing market on the general economy and on Wall Street. We all look at things from our own box.
I just read Denny Grimes editorial today (December 3, 2006) in the News Press. I could not find a link for it so you will have to look for yourself. It was very well written and in it Denny urges sellers to lower prices to sell their homes. This is what Denny does, he makes his money by representing sellers and buyers of homes, but of course he only gets paid when the homes actually sell.. He agrees with me that this is a great time to buy. He tells us that buyers, however, are waiting for “the bottom”. I would add that we will not see the bottom except in our rear view mirror, and by then it may be too late.
Denny is in the middle of the market, in essence he is in the middle of the forest. He is about the best at what does and the consummate professional; but even so, his view of the market is affected by the fact that his business may be down a certain percentage from the previous year.
I, for example, will in many cases not suggest lowering the price. Indeed it will not be until prices start to go up that the buyers will realize they missed the bottom. My advice is patience and confidence in the market. But my box is a bit different from Denny’s. I deal more with investors than general residential real estate
I think it is time we think outside the box. I have heard the term for years. I am sure you have too. It’s one of those catch phrases that consultants use. To me the expression means to look at something from outside your current realm of influence. For the past hour, before I started writing this missive, I went Yahoo searching for articles on “Thinking outside the box” and I did not find any article that actually presented a view from outside the respective influence the article was written from. In order to think outside the box you must first recognize what your box is.
All of us live in various communities. Certainly Gail and I live in Florida. We also live in downtown Fort Myers, but we also live in “parent community”, the “real estate community”, the “grandparent community”, the “developer community”, etc. We, like you, wear many hats, or live in many “boxes”. Most likely our perspective is confined and guided by these influences, by these boxes.
For many years, I was in the plastics business. I sold plastic film to the diaper and sanitary napkin industry all over North, Central, and South America. I was immersed in that business. My “box”, if you can believe it, was diapers and sanitary napkins. For years business was wonderful because Latin America was my oyster. My pearl was that 15 years ago most of Latin America was not using diapers or sanitary napkins. The business grew like crazy. We built capacity, but after a few years we needed more business. In order to find it, I needed to look outside the box. I went to trade shows for totally unrelated fields to “think outside the box”. I actually went to wood working shows, metal conferences, health conferences, rubber conferences. I went searching for new markets, new uses. Eventually, I started supplying house wrap, roofing membranes, protective films for packaging and more. In order to grow and succeed, I went looking for needs to fill in new communities. I thought outside my box.
In an earlier newsletter I talked about investment advisors that tell you that they will review your entire investment portfolio, but never even mention real estate. Stocks and bonds are their “box”. You need to learn what box people you deal with are in so you can adjust your thinking. Don’t let them trap you into their box.
On Friday night I got perspectives from many walks of life at our party, but still pretty narrowly focused. I love to meet folks from out side our town, outside our state, and outside our business. I can learn from everyone. I absolutely love to meet new people with fresh perspectives.
Know your “box” and know how to get out of it. You will learn and grow. Know the “boxes” of your friends and the people you deal with. You will be better for it.
The simple facts in our market are that we are in an “over inventory” position, but when you talk to visitors from out of state; they are thrilled with their choices, our weather, our shopping, and our restaurants. Home price have dropped, for sure, but not below prices two years ago. If you stick with the four year hold rule AND you bought reasonably well – patience will be your friend. If you bought poorly at the peak, you may want to take your losses sooner rather that later and not pour more good money after bad.
I would love to hear from you and find out who you are and what your concerns and objectives are and learn more about you.
It is my belief that many of you are sitting on the sidelines waiting for prices to go back up before you buy.
Who are you and what do you want?
News Reporters are on the outside of Every Story
Volume 4 Number 28 November 27, 2006
News Reporters are on the “Outside” of Every Story.
No news reporter has the inside scoop, the full story, or the total background. They are, by definition, outsiders. Years ago, when I was living in Cincinnati, I attended a business luncheon and the key note speaker was a local reporter turned politician by the name of Jerry Springer. (This was indeed after the erstwhile politician Mr. Springer got caught passing a bad check to a call girl in Northern Kentucky.)
Mr. Springer proved to be a very interesting and informative speaker. He talked about a pivotal turning point in Presidential news coverage – The assassination of President Kennedy. Ever since that poorly filmed assassination, no president travels without an entire bus or plane full of reporters with cameras at the ready. Reagan came to Cincinnati around that time and there were bus loads of reporters following him. They followed him even though there was no scheduled public appearance. But what I found insightful was Mr. Springer’s take on investigative reporting and “insider” reports.
Reporters operate on a deadline, start with zero contacts and little or no background, they have no time for in depth immersion into a story; and often they resort to quoting self serving publicists or activists with an agenda.
What got me to thinking about this is the press coverage of the real estate market – both nationally and locally. The National Association of Home Builders (NAHB) recently posted an article about the amount and effect of all this negative press coverage. While the NAHB certainly has a dog in this fight, the article makes some excellent points:
The nation’s prospective home buyers may derive some of their information on the housing market from the news media, but at the end of the day the things that matter far more when they are deciding whether to make a purchase include the price of the new home, mortgage interest rates and their housing needs, according to a new nationwide survey commissioned by NAHB.
“While the majority of the households we polled indicated that they found the media a reliable source of information on the housing market, what they read in the newspaper, saw on television or heard on the radio was no substitute for actually going out and shopping the market,” said Thomas Riehle, a partner in RT Strategies, which conducted the research for NAHB.
“When people are actually thinking about buying a home, they are driven by the details of how it will impact their family budget and lifestyle and contribute to their long-term wealth, and that gives them a much closer perspective on the market than what can be conveyed in news coverage,” Riehle continued.
When asked to rate the importance of several factors that might affect their decision to buy or not to buy a home, survey respondents put the home’s price at the top of the list, with 80% citing its significance.
That was followed by: the potential for the new home to appreciate in value, 71%; the prospect of selling their current home at a fair price, 70%; the level of mortgage interest rates, 69%; and personal life changes, such as a new job or an addition to the family, 60%. On a list of eight items, news stories on real estate market conditions ranked second from the bottom, with 28% saying that it was an important factor behind their decision to buy.
When further asked about the influence of the news media on their decisions of when to buy a home, only 19% of the respondents said it played an important role; 23% indicated that it had some importance on their decision; and 7% said it played a minor role. A full 48% said it had no influence whatsoever.
Sixty-one percent of the survey participants said that the media is “sometimes trustworthy” as a source of information on the housing market and 5% said that it is “always trustworthy.” Twenty percent and 8%, respectively, said it is “seldom trustworthy” and “never trustworthy.”
“The media provides an important service by giving consumers the big picture of what is occurring in the housing marketplace, even the big picture in their local markets. But despite that, local reporting can't convey the information that consumers consider the most when they are looking for a new home,” said NAHB President David Pressly. “The fact is that even as the national market is slowing down from the unsustainable pace of the past few years, there are sizable numbers of families who need new homes. And with a wide selection of new homes to choose from, with mortgage rates remaining near historic lows and with incomes and jobs continuing to grow, the opportunities are extremely favorable for buyers in today’s marketplace.
Home builders are working down their existing inventory of homes fairly quickly and the current slowdown in production is expected by NAHB economists to have run its course by the middle of 2007. From that point forward, the industry is expecting to see a good balance in the marketplace between supply and demand, setting the stage for a healthy and sustainable trend for housing, supported by a growing U.S. economy. (Full story click here)
There is nothing, and I mean NOTHING, that can replace actually field time and “face time” in the marketplace. You have to go out and test the water your self. You have to BE THERE. You may read in the paper that the market is soft so you decide to go visit a community you have had your eye on and perhaps pick up a deal. When you get here you learn that this particular community is doing well and has only a few condos left for you to choose from. The news in the paper is way too broad for you to be making decisions on. Unfortunately this is a lesson I have to learn over and over again. I love to go out in the market and talk to the sellers, the buyers, the developers and the builders. When I sit and work a few weeks in the office without venturing into the field, I am relying on the perspective of others and lose immediacy of the information.
I was in Seoul Korea on a business trip some years back. In fact on that trip I was there for ten days. When I got back I was bombarded with questions from my friends about all the rioting in Seoul. My friends had read that parts of Seoul were shut down, the American hotels were under heightened security, and there was tear gas in the streets. But my personal experience was uneventful and I never heard a thing about any unrest or riot for the entire period I was there. My point is that if things are going well, there is no news. It is only the exceptions that make it to print.
I will often drop my office work and drive through a community with one of our agents. We stop into open houses, walk through commercial complexes, talk to tenants and talk to buyers. I call it “running the traps”. If you need to be convinced that this is a good time to buy – come here and “run the traps”, ignore the headlines and look beyond the negative press. The 30,000 foot view will not serve you well – you need to get in the trenches.
Right now interest rates are low; inventory is high, and sellers are eager to negotiate; incentives are available, choices are many. Will prices go down? Maybe, maybe not.
Will prices go up? Most assuredly. It is just a matter of WHEN (Timing is everything, isn’t it?)
Last week I talked about the disparity in prices in some communities and the need to get current comparative information on an area to make sure, if you are a buyer, you are getting the best deal, of if you are a seller that your home is priced where you want it to be.
We reviewed all the prices at Grand Isle in Burnt Store and found an amazing disparity in pricing by the sellers– by as much as 55% for the same unit size unit! Admittedly there are differences; the upgrades, the view, and perhaps some decorating; but a difference from $545,000 to $845,000 is hard to explain away. For all the current up to date prices at Grand Isle click here. Scroll down the page to see the price and availability of all units in each building. Or call me239-425-0771 and I will go over the summary – I have it in a spread sheet for easy review. There is a furnished unit for $499,000, and some gorgeous end units at very attractive pricing.
News Reporters are on the “Outside” of Every Story.
No news reporter has the inside scoop, the full story, or the total background. They are, by definition, outsiders. Years ago, when I was living in Cincinnati, I attended a business luncheon and the key note speaker was a local reporter turned politician by the name of Jerry Springer. (This was indeed after the erstwhile politician Mr. Springer got caught passing a bad check to a call girl in Northern Kentucky.)
Mr. Springer proved to be a very interesting and informative speaker. He talked about a pivotal turning point in Presidential news coverage – The assassination of President Kennedy. Ever since that poorly filmed assassination, no president travels without an entire bus or plane full of reporters with cameras at the ready. Reagan came to Cincinnati around that time and there were bus loads of reporters following him. They followed him even though there was no scheduled public appearance. But what I found insightful was Mr. Springer’s take on investigative reporting and “insider” reports.
Reporters operate on a deadline, start with zero contacts and little or no background, they have no time for in depth immersion into a story; and often they resort to quoting self serving publicists or activists with an agenda.
What got me to thinking about this is the press coverage of the real estate market – both nationally and locally. The National Association of Home Builders (NAHB) recently posted an article about the amount and effect of all this negative press coverage. While the NAHB certainly has a dog in this fight, the article makes some excellent points:
The nation’s prospective home buyers may derive some of their information on the housing market from the news media, but at the end of the day the things that matter far more when they are deciding whether to make a purchase include the price of the new home, mortgage interest rates and their housing needs, according to a new nationwide survey commissioned by NAHB.
“While the majority of the households we polled indicated that they found the media a reliable source of information on the housing market, what they read in the newspaper, saw on television or heard on the radio was no substitute for actually going out and shopping the market,” said Thomas Riehle, a partner in RT Strategies, which conducted the research for NAHB.
“When people are actually thinking about buying a home, they are driven by the details of how it will impact their family budget and lifestyle and contribute to their long-term wealth, and that gives them a much closer perspective on the market than what can be conveyed in news coverage,” Riehle continued.
When asked to rate the importance of several factors that might affect their decision to buy or not to buy a home, survey respondents put the home’s price at the top of the list, with 80% citing its significance.
That was followed by: the potential for the new home to appreciate in value, 71%; the prospect of selling their current home at a fair price, 70%; the level of mortgage interest rates, 69%; and personal life changes, such as a new job or an addition to the family, 60%. On a list of eight items, news stories on real estate market conditions ranked second from the bottom, with 28% saying that it was an important factor behind their decision to buy.
When further asked about the influence of the news media on their decisions of when to buy a home, only 19% of the respondents said it played an important role; 23% indicated that it had some importance on their decision; and 7% said it played a minor role. A full 48% said it had no influence whatsoever.
Sixty-one percent of the survey participants said that the media is “sometimes trustworthy” as a source of information on the housing market and 5% said that it is “always trustworthy.” Twenty percent and 8%, respectively, said it is “seldom trustworthy” and “never trustworthy.”
“The media provides an important service by giving consumers the big picture of what is occurring in the housing marketplace, even the big picture in their local markets. But despite that, local reporting can't convey the information that consumers consider the most when they are looking for a new home,” said NAHB President David Pressly. “The fact is that even as the national market is slowing down from the unsustainable pace of the past few years, there are sizable numbers of families who need new homes. And with a wide selection of new homes to choose from, with mortgage rates remaining near historic lows and with incomes and jobs continuing to grow, the opportunities are extremely favorable for buyers in today’s marketplace.
Home builders are working down their existing inventory of homes fairly quickly and the current slowdown in production is expected by NAHB economists to have run its course by the middle of 2007. From that point forward, the industry is expecting to see a good balance in the marketplace between supply and demand, setting the stage for a healthy and sustainable trend for housing, supported by a growing U.S. economy. (Full story click here)
There is nothing, and I mean NOTHING, that can replace actually field time and “face time” in the marketplace. You have to go out and test the water your self. You have to BE THERE. You may read in the paper that the market is soft so you decide to go visit a community you have had your eye on and perhaps pick up a deal. When you get here you learn that this particular community is doing well and has only a few condos left for you to choose from. The news in the paper is way too broad for you to be making decisions on. Unfortunately this is a lesson I have to learn over and over again. I love to go out in the market and talk to the sellers, the buyers, the developers and the builders. When I sit and work a few weeks in the office without venturing into the field, I am relying on the perspective of others and lose immediacy of the information.
I was in Seoul Korea on a business trip some years back. In fact on that trip I was there for ten days. When I got back I was bombarded with questions from my friends about all the rioting in Seoul. My friends had read that parts of Seoul were shut down, the American hotels were under heightened security, and there was tear gas in the streets. But my personal experience was uneventful and I never heard a thing about any unrest or riot for the entire period I was there. My point is that if things are going well, there is no news. It is only the exceptions that make it to print.
I will often drop my office work and drive through a community with one of our agents. We stop into open houses, walk through commercial complexes, talk to tenants and talk to buyers. I call it “running the traps”. If you need to be convinced that this is a good time to buy – come here and “run the traps”, ignore the headlines and look beyond the negative press. The 30,000 foot view will not serve you well – you need to get in the trenches.
Right now interest rates are low; inventory is high, and sellers are eager to negotiate; incentives are available, choices are many. Will prices go down? Maybe, maybe not.
Will prices go up? Most assuredly. It is just a matter of WHEN (Timing is everything, isn’t it?)
Last week I talked about the disparity in prices in some communities and the need to get current comparative information on an area to make sure, if you are a buyer, you are getting the best deal, of if you are a seller that your home is priced where you want it to be.
We reviewed all the prices at Grand Isle in Burnt Store and found an amazing disparity in pricing by the sellers– by as much as 55% for the same unit size unit! Admittedly there are differences; the upgrades, the view, and perhaps some decorating; but a difference from $545,000 to $845,000 is hard to explain away. For all the current up to date prices at Grand Isle click here. Scroll down the page to see the price and availability of all units in each building. Or call me239-425-0771 and I will go over the summary – I have it in a spread sheet for easy review. There is a furnished unit for $499,000, and some gorgeous end units at very attractive pricing.
You Own two Homes, Now What?
Volume 4 Number 27 November 20, 2006
You Own Two Homes - Now What?
Our office gets many calls from reluctant condo and home owners that jumped on the real estate “profit wagon” only find the wagon dropping them off at a time of unparalleled inventories and very few buyers. In short these owners have a bit of an over inventory problem themselves. They have one or even worse, two homes extra.
The extra home affects each investor differently. I am normally asked the question, “What should I do?” with little or no background on the customer or the particular holding. In order to give sound advice I really need to know both. But let me review your options and the consequences.
You have three choices: Market; Hold, or Walk Away. If you are even considering the third option I suggest you consult a good attorney first. It is not a course that I recommend not do I fully understand the ramifications.
Let’s look at my first choice – Holding. When considering a hold strategy you have to make the assumption that the market will get better at some point in the future. By better, I mean the buyers will return and prices will stabilize. Perhaps the best advice I can give you is to look at your total cost of the home. This would include the acquisition costs and the carrying costs of interest, maintenance, insurance, condo fees etc. less any rental income you can capture and the tax benefits of owning. Once you have a good handle on that (we can help you prepare a summary) you will then have the basis for making the hold decision or not. (We would need to know your cost of money, your tax bracket, condos fees, insurance, etc.). We will compare this total cost with the exit value.
The hold decision must come with some assumptions. The most important relates to timing and how long you will have to hold and what the home will be worth after that time period. How long will you have to hold may depend on how well you bought. I have said it time and time again – you make your money when you buy, not when you sell. If you bought at the peak and prices have subsequently dropped 25%, your hold period may be very long. Does the community you own in have a few hundred “like kind” properties for sale or is your holding unique with little competition? Obviously, the more unique (pool view, end unit, penthouse) the better for your resale prospects.
If you want a thorough and honest review of your particular situation, contact us. If we can help you make this decision, we will. If we can’t help you we will tell you so. I would suggest that you not get into the category of reluctant holder. Don’t bother to put your investment on the market with no hope of selling. It will only frustrate you and your agent and get your property “market tired”.
If you do hold should you rent? The answer here depends on you and the property as well. If you are only going to rent “for a while” until the market returns; forget it. In my opinion this is not worth it. Only rent if you are prepared to do so for at least a few years, you are prepared to repaint and carpet at the end of the term, and you have realistic expectations on your rental income. Unless you are on the beach or golf course – go for an annual tenant. Seasonal rentals are tough on a property, are management intensive, and it normally takes about three years to get 100% occupancy on seasonal rentals. We can help you do the analysis, but leasing properties is a specialty that we do not possess.
I have been involved lately in analyzing a few large apartment complexes. We have examined absorption, percentage of occupancy, rents, and features. I have recently learned the term “shadow market”. The apartment complex industry refers to all the new condos that are being rented by individual owners as the “shadow market”. Normally the shadow market is not well organized so new residents to an area are not as likely to rent from an individual condo owner. But once the resident is established in an area they discover that they can rent a much larger home for a lower price in a condo community. The market rate for apartments is about $900 to $1200 per month, normally about 1100 square feet. Condos can be rented in the Fort Myers area for close to that same price, and they are bigger and normally have nicer amenities. Good for the renter, bad for you. Figure about a dollar per square foot per month less for larger units, more for smaller ones.
Your second option is selling your unit. You may think you have to sell it. You have no choice. You can’t afford the payments; your spouse is going to shoot you if you don’t; or you simply are going into a money pit that you will never be able to climb out of. The first thing we will do is go though the full analysis that I mention above. We will determine together if selling is the best economic option. In most cases it is not. At least not right now.
If it is the best option, you have to be slapped with the new reality. Most of the new realty has to do with price and how long it will take to sell. Being the lowest price condo in the entire community will give you a much better chance of selling than any one else – BUT IS NOT A GUARANTEE THAT IT WILL SELL. Buyers now are waiting to see if prices will go lower. There is one strategy that I have seen in this market that has the broker lowering the price by $5000 a month until the condo sells. To me this is training the buyers to wait and it is not a strategy that I recommend unless the seller is very desperate.
I do have some tips if you are going to sell. Make your condo or home the best value on the market. This may mean upgrading, painting, wall coverings, window treatments, or even furnishing. This will also mean pricing at the bottom, the very bottom, of the tier if there are many like kind units. Make your home easy to show, have your agent visit once a week to make sure the air is working and the home is presentable. Hire a cleaning company to come twice a month. List with a Realtor that pays for premium positioning on www.realtor.com and has your home on the internet (We do). List with a Realtor that knows your project, has access to the condo docs, brochures and floor plans and knows the competition. You should not have to educate your agent about your community. You have the wrong agent. Now is the time to hire an agent to really market your home and this does not mean offering less of a commission by the way. Better to pay more and get the right service than pay less and suffer the consequences.
Have your agent give you comps, like he did when you gave him the listing, every month. We are in a very volatile market and prices are changing daily. I looked at a single family home in Cape Coral last month that was priced fully $80,000 over the same home a block away – AND it was listed by the same agent. To me this is unforgivable.
You may have to pair financing with your sales price. Buy down the mortgage for your buyer, for example. Market America can help you arrange this. You may also offer to pay closing costs or over other more creative incentives (Golf memberships, etc)
The bottom line is, however, if there is no traffic and there are no buyers this means that all your incentives and lower prices are for naught.
Want good news? The market will get much better. It's called a cycle, because, well, it cycles. This is a great time to buy. Money is cheap, sellers are bargaining, and prices are low. Happy Thanksgiving and have a great week.
You Own Two Homes - Now What?
Our office gets many calls from reluctant condo and home owners that jumped on the real estate “profit wagon” only find the wagon dropping them off at a time of unparalleled inventories and very few buyers. In short these owners have a bit of an over inventory problem themselves. They have one or even worse, two homes extra.
The extra home affects each investor differently. I am normally asked the question, “What should I do?” with little or no background on the customer or the particular holding. In order to give sound advice I really need to know both. But let me review your options and the consequences.
You have three choices: Market; Hold, or Walk Away. If you are even considering the third option I suggest you consult a good attorney first. It is not a course that I recommend not do I fully understand the ramifications.
Let’s look at my first choice – Holding. When considering a hold strategy you have to make the assumption that the market will get better at some point in the future. By better, I mean the buyers will return and prices will stabilize. Perhaps the best advice I can give you is to look at your total cost of the home. This would include the acquisition costs and the carrying costs of interest, maintenance, insurance, condo fees etc. less any rental income you can capture and the tax benefits of owning. Once you have a good handle on that (we can help you prepare a summary) you will then have the basis for making the hold decision or not. (We would need to know your cost of money, your tax bracket, condos fees, insurance, etc.). We will compare this total cost with the exit value.
The hold decision must come with some assumptions. The most important relates to timing and how long you will have to hold and what the home will be worth after that time period. How long will you have to hold may depend on how well you bought. I have said it time and time again – you make your money when you buy, not when you sell. If you bought at the peak and prices have subsequently dropped 25%, your hold period may be very long. Does the community you own in have a few hundred “like kind” properties for sale or is your holding unique with little competition? Obviously, the more unique (pool view, end unit, penthouse) the better for your resale prospects.
If you want a thorough and honest review of your particular situation, contact us. If we can help you make this decision, we will. If we can’t help you we will tell you so. I would suggest that you not get into the category of reluctant holder. Don’t bother to put your investment on the market with no hope of selling. It will only frustrate you and your agent and get your property “market tired”.
If you do hold should you rent? The answer here depends on you and the property as well. If you are only going to rent “for a while” until the market returns; forget it. In my opinion this is not worth it. Only rent if you are prepared to do so for at least a few years, you are prepared to repaint and carpet at the end of the term, and you have realistic expectations on your rental income. Unless you are on the beach or golf course – go for an annual tenant. Seasonal rentals are tough on a property, are management intensive, and it normally takes about three years to get 100% occupancy on seasonal rentals. We can help you do the analysis, but leasing properties is a specialty that we do not possess.
I have been involved lately in analyzing a few large apartment complexes. We have examined absorption, percentage of occupancy, rents, and features. I have recently learned the term “shadow market”. The apartment complex industry refers to all the new condos that are being rented by individual owners as the “shadow market”. Normally the shadow market is not well organized so new residents to an area are not as likely to rent from an individual condo owner. But once the resident is established in an area they discover that they can rent a much larger home for a lower price in a condo community. The market rate for apartments is about $900 to $1200 per month, normally about 1100 square feet. Condos can be rented in the Fort Myers area for close to that same price, and they are bigger and normally have nicer amenities. Good for the renter, bad for you. Figure about a dollar per square foot per month less for larger units, more for smaller ones.
Your second option is selling your unit. You may think you have to sell it. You have no choice. You can’t afford the payments; your spouse is going to shoot you if you don’t; or you simply are going into a money pit that you will never be able to climb out of. The first thing we will do is go though the full analysis that I mention above. We will determine together if selling is the best economic option. In most cases it is not. At least not right now.
If it is the best option, you have to be slapped with the new reality. Most of the new realty has to do with price and how long it will take to sell. Being the lowest price condo in the entire community will give you a much better chance of selling than any one else – BUT IS NOT A GUARANTEE THAT IT WILL SELL. Buyers now are waiting to see if prices will go lower. There is one strategy that I have seen in this market that has the broker lowering the price by $5000 a month until the condo sells. To me this is training the buyers to wait and it is not a strategy that I recommend unless the seller is very desperate.
I do have some tips if you are going to sell. Make your condo or home the best value on the market. This may mean upgrading, painting, wall coverings, window treatments, or even furnishing. This will also mean pricing at the bottom, the very bottom, of the tier if there are many like kind units. Make your home easy to show, have your agent visit once a week to make sure the air is working and the home is presentable. Hire a cleaning company to come twice a month. List with a Realtor that pays for premium positioning on www.realtor.com and has your home on the internet (We do). List with a Realtor that knows your project, has access to the condo docs, brochures and floor plans and knows the competition. You should not have to educate your agent about your community. You have the wrong agent. Now is the time to hire an agent to really market your home and this does not mean offering less of a commission by the way. Better to pay more and get the right service than pay less and suffer the consequences.
Have your agent give you comps, like he did when you gave him the listing, every month. We are in a very volatile market and prices are changing daily. I looked at a single family home in Cape Coral last month that was priced fully $80,000 over the same home a block away – AND it was listed by the same agent. To me this is unforgivable.
You may have to pair financing with your sales price. Buy down the mortgage for your buyer, for example. Market America can help you arrange this. You may also offer to pay closing costs or over other more creative incentives (Golf memberships, etc)
The bottom line is, however, if there is no traffic and there are no buyers this means that all your incentives and lower prices are for naught.
Want good news? The market will get much better. It's called a cycle, because, well, it cycles. This is a great time to buy. Money is cheap, sellers are bargaining, and prices are low. Happy Thanksgiving and have a great week.
The Informational Slaesman
Volume 4 Number 26 November 14, 2006
The Informational Salesman
I have been shopping for a car lately. What an education! And I don’t man about cars, I mean about car salesmen. It certainly is not easy finding a knowledgeable salesman; a salesman that knows his product as well as the competition. I want my job of shopping for a car to be easy, not hard. Most car sales people make it hard.
I did go to the Fort Myers boat show last week. I went for a half day on Thursday and a half day on Friday. Unlike car salesman most of the sales people I met at the boat show knew their stuff. They knew boating, fishing, cruising, and they knew their competition. I learned a great deal and saw some great boats. Heck, I enjoy boat shopping! Most of the sale people were enthusiastic about their boats.
So what does this have to do with real estate? I believe a good informational sales person is needed now more than ever in our market. The soft Lee County, Florida market with 12,000 homes, 8000 condos, and wide variety of commercial opportunities on the open market requires an expert’s advice and guidance. My shopping for a car and boat made me think about all the real estate people that have recently dropped out of the business. These were normally not the top performers. In most cases they were the ones that were not contributing to the transaction as much as they could.
In order to be a successful sales person today you have to be an informational salesman (I measure success by income, happiness with the job, and repeat business). My value as a salesman in a sales transaction is directly related to how much I can contribute to the transaction. In real estate this means I have to master many things – from trustworthiness, to negotiating skills, to product and community knowledge. I need to offer my customer an informational advantage; I must make no promises I cannot keep; and offer more than is asked. But it all comes down to how much information I can impart to the customer; how much value I can add to the deal.
I was on a listing presentation last week for a new office park we will be handling the marketing for. Eric, one of our commercial specialists, was well prepared for the meeting. He not only did all the comparables in the area, he had visited them, knew the similarities and differences, and did a thorough presentation for our client. Based on the information we supplied, our client was able to make an informed decision about his product design, pricing and timing.
In residential buying now, information is absolutely critical. On www.realtor.com most shoppers can get the specific information that they need about a particular house – as long as it is listed on the MLS. What they cannot get is a feel for pricing trends. They cannot get the big picture feel; where the deals are or who is making the best deals.
I have perceived a general feeling that real estate agents will be needed less and less and the more and more information is available on the internet. I strongly disagree. Yes, of course there is more information available and the client can get it without the help of an agent, but it is my position that a knowledgeable agent can help sort this information and put it into perspective: financial perspective, market perspective, and personal perspective.
I participate in real estate forums on the internet. There is a general distrust of real estate agents in some of these forums, that agents are greedy, lazy, and un-needed. While this may be true of some agents, it is also true that a good one is worth much more than a seller will have to pay him.
When you look for an agent, look for one that can add value to your transaction. Don’t use your best friend’s cousin, just because you know him. Interview agents and interview some of their current and past clients if possible. Look for an expert in your particular area. – be it a product type, a geographical location, or a price range.
There are many sellers now that need to unload properties that are superfluous to their needs. These may be the investors that bought hoping to flip before they closed and now they are carrying two or three mortgages. These sellers need to get realistic with their prices. I have sellers tell me that they will be happy to get their original money out of the deal. In many cases they need to accept severe loses – and have no hope of getting their original investments back. They don’t want to hear this and I sure as heck don’t like telling them this, but some real estate agents are getting listings for these properties at prices that will never sell – at least not for the next few years.
If you have a residential property that you want to sell, email deb@ma-realty.com with all the details. She will give you an honest CMA and review your chances of selling your property.
If you are looking to buy, this is a SUPERB time to talk to Debbie. Let us negotiate your next deal. I in fact am a buyer in this market. Rates are low, sellers are negotiable, and there is a very large inventory to pick from.
The commercial real estate business is very strong. We have good investment opportunities from $600,000 and up. We are still very high on new construction commercial office space and this is indeed our specialty. The older properties are more of a burden with high insurance rates and high upkeep. Apartment investing is strong now and we have a few large multi-family parcels. High leverage income property is no longer as attractive as it once was. Look for 25% to 40% down strokes. Contact me at Gregg@ma-realty.com with questions.
The Informational Salesman
I have been shopping for a car lately. What an education! And I don’t man about cars, I mean about car salesmen. It certainly is not easy finding a knowledgeable salesman; a salesman that knows his product as well as the competition. I want my job of shopping for a car to be easy, not hard. Most car sales people make it hard.
I did go to the Fort Myers boat show last week. I went for a half day on Thursday and a half day on Friday. Unlike car salesman most of the sales people I met at the boat show knew their stuff. They knew boating, fishing, cruising, and they knew their competition. I learned a great deal and saw some great boats. Heck, I enjoy boat shopping! Most of the sale people were enthusiastic about their boats.
So what does this have to do with real estate? I believe a good informational sales person is needed now more than ever in our market. The soft Lee County, Florida market with 12,000 homes, 8000 condos, and wide variety of commercial opportunities on the open market requires an expert’s advice and guidance. My shopping for a car and boat made me think about all the real estate people that have recently dropped out of the business. These were normally not the top performers. In most cases they were the ones that were not contributing to the transaction as much as they could.
In order to be a successful sales person today you have to be an informational salesman (I measure success by income, happiness with the job, and repeat business). My value as a salesman in a sales transaction is directly related to how much I can contribute to the transaction. In real estate this means I have to master many things – from trustworthiness, to negotiating skills, to product and community knowledge. I need to offer my customer an informational advantage; I must make no promises I cannot keep; and offer more than is asked. But it all comes down to how much information I can impart to the customer; how much value I can add to the deal.
I was on a listing presentation last week for a new office park we will be handling the marketing for. Eric, one of our commercial specialists, was well prepared for the meeting. He not only did all the comparables in the area, he had visited them, knew the similarities and differences, and did a thorough presentation for our client. Based on the information we supplied, our client was able to make an informed decision about his product design, pricing and timing.
In residential buying now, information is absolutely critical. On www.realtor.com most shoppers can get the specific information that they need about a particular house – as long as it is listed on the MLS. What they cannot get is a feel for pricing trends. They cannot get the big picture feel; where the deals are or who is making the best deals.
I have perceived a general feeling that real estate agents will be needed less and less and the more and more information is available on the internet. I strongly disagree. Yes, of course there is more information available and the client can get it without the help of an agent, but it is my position that a knowledgeable agent can help sort this information and put it into perspective: financial perspective, market perspective, and personal perspective.
I participate in real estate forums on the internet. There is a general distrust of real estate agents in some of these forums, that agents are greedy, lazy, and un-needed. While this may be true of some agents, it is also true that a good one is worth much more than a seller will have to pay him.
When you look for an agent, look for one that can add value to your transaction. Don’t use your best friend’s cousin, just because you know him. Interview agents and interview some of their current and past clients if possible. Look for an expert in your particular area. – be it a product type, a geographical location, or a price range.
There are many sellers now that need to unload properties that are superfluous to their needs. These may be the investors that bought hoping to flip before they closed and now they are carrying two or three mortgages. These sellers need to get realistic with their prices. I have sellers tell me that they will be happy to get their original money out of the deal. In many cases they need to accept severe loses – and have no hope of getting their original investments back. They don’t want to hear this and I sure as heck don’t like telling them this, but some real estate agents are getting listings for these properties at prices that will never sell – at least not for the next few years.
If you have a residential property that you want to sell, email deb@ma-realty.com with all the details. She will give you an honest CMA and review your chances of selling your property.
If you are looking to buy, this is a SUPERB time to talk to Debbie. Let us negotiate your next deal. I in fact am a buyer in this market. Rates are low, sellers are negotiable, and there is a very large inventory to pick from.
The commercial real estate business is very strong. We have good investment opportunities from $600,000 and up. We are still very high on new construction commercial office space and this is indeed our specialty. The older properties are more of a burden with high insurance rates and high upkeep. Apartment investing is strong now and we have a few large multi-family parcels. High leverage income property is no longer as attractive as it once was. Look for 25% to 40% down strokes. Contact me at Gregg@ma-realty.com with questions.
Optimist, Realtor, Realist
Volume 4 Number 25 October 1, 2006
Optimist, Realist, Realtor
Okay, I can see the end of the hurricane season from here and it looks pretty clear. Do you remember hearing, “Heck, if we get through this season without hurricanes next years real estate market will really be hot,” or something similar? We are almost at that mile post. What do I see?
Let me answer the question and then support my answer. One moment while I blow the dust off my crystal ball.
I see many buyers coming to Southwest Florida to capitalize on low prices, low interest rates, high inventory. weary sellers, and beautiful weather. I see a very robust economy, low unemployment, bad weather up north, and Americans with an appetite for real estate. I do not see a return to the boom-boom times of 2004, but see a slow and steady increase in prices and a slower decrease in inventories. Anecdotal evidence already points to increased activity (Interviews with title companies, residential resale agents, etc.) If we are not at the bottom yet, we are darn close.
I think we will see the turnaround, as usual, only in our rear view mirror. All of a sudden we will look back and say, “Wow, that happened fast!”
There have been many new projects that have been put on hold or canceled totally. Developers have responded to the slow market by doing one or a combination of the following:
Canceling or postponing projects
Slowing construction; phasing projects.
Offering incentives (Upgrades, financing)
Returning deposits.
Simply “going on vacation”
These actions will help the oversupply situation. But make no mistake, there will be an oversupply for at least two years.
You must also not expect construction costs to go down. This is a critical point. Replacement homes will cost more than what is already built. World wide demand, let alone local demand, for raw materials and labor is too high for us to see an appreciable decrease in costs. What does this mean? This means that existing homes and commercial buildings will be less expensive to buy than to build or buy new. Once the existing inventory is gone you will see rapid upward price pressure.
Existing home sales dropped nearly 13% in August from the year before. The median price fell 1.7% nationally. Locally we are seeing prices drop in the fifteen percent range. I say, “So what?” The increased prices and volumes that we dropped from were artificially high, pumped up by a frenzy that we could not sustain and that sellers and builders and developers reacted to swiftly. The market is simply correcting for four years of over zealous growth.
Developers and builders can’t react as quickly as buyers. This speed up the price ramp up and slowed down the recovery. The reaction to the hot market took at least a year – this is the time it took for entitlement of land, permitting and financing to be arranged. The reaction to the slowdown in buying is not as swift. It couldn’t be. Properties were bought, monies were committed, entitlements were done, and buildings commenced. But those projects that could be put on the back burner were.
Will there be a high number of “drop outs”? (These are buyers that put deposits down and will not go through with their purchase upon the new homes completion). I do not think so. Real estate is not a commodity. It has emotional value and personal involvement. The projects that are proceeding to closings now are seeing very little actual drop outs. Let’s hope that continues.
_____________________________
I recently finished reading Good To Great , by James Collins, Harper Business, 2001. The book was given to me by my friend Christopher Jacob. He was sure that I would identify with it. He was right, and I highly recommend the book. Collins has a reference in the book to Admiral Jim Stockdale, the highest ranking prisoner in the “Hanoi Hilton” prisoner-of-war camp during the Vietnam War. Stockdale endured eight years of imprisonment. Collins asked, “Who didn’t make it out?”
Stockdale replied, “The optimists”
He goes on to say that these were the guys that kept thinking they were getting out by, say Christmas; then Easter; then Summer; etc. They kept looking forward to their release and not dealing with the harsh realities of life in the camp. Collins even went so far as to develop “The Stockdale Paradox”.
I could not help drawing the parallel with the real estate optimists that last august said the buyers would return by Season. Then it was, “Well, this is a slow season - wait until after Christmas,” then it was, “Heck the real buyers buy just before they go home for the season.” Meanwhile they went about their lives spending money like it was 2004.
The point is: optimism is fine. However you need to keep your eye on the certainty of your success, and at the same time you must deal with the harsh realities of life that will get you there.
(A small example; you will sell your condo, but deal with owning for the next (2 years) until you DO sell it.)
I have always been a commercial real estate guy. I like the numbers, the art of the deal, the logic of the buyers and sellers, and I love the commercial market. Market America got heavy into residential over the last four years. We still do very well in that arena and do best representing buyers. Buyers need knowledgeable agents to find the best deals in a field of many great deals.
My personal love is still commercial. In this category I put residential investors.
We have released our office condos for contract at Cyperlin Center. THIS IS OUR OWN DEVELOPMENT. Prices are from $958,000 to $4,000,000. Completion will be late 2007 or early 2008. You need to visit the site to appreciate the grandeur of the vision for this office building. We need ten percent down now. Call or email me for details or go to the website.
We have added to our commercial team and we now have one of the best teams in the county. We are working on self storage land, office buildings, medical buildings, industrial, and retail properties. Apartments, retail and multi-use centers. We know how to work with investors and sellers alike. Try us. You will not be disappointed.
Optimist, Realist, Realtor
Okay, I can see the end of the hurricane season from here and it looks pretty clear. Do you remember hearing, “Heck, if we get through this season without hurricanes next years real estate market will really be hot,” or something similar? We are almost at that mile post. What do I see?
Let me answer the question and then support my answer. One moment while I blow the dust off my crystal ball.
I see many buyers coming to Southwest Florida to capitalize on low prices, low interest rates, high inventory. weary sellers, and beautiful weather. I see a very robust economy, low unemployment, bad weather up north, and Americans with an appetite for real estate. I do not see a return to the boom-boom times of 2004, but see a slow and steady increase in prices and a slower decrease in inventories. Anecdotal evidence already points to increased activity (Interviews with title companies, residential resale agents, etc.) If we are not at the bottom yet, we are darn close.
I think we will see the turnaround, as usual, only in our rear view mirror. All of a sudden we will look back and say, “Wow, that happened fast!”
There have been many new projects that have been put on hold or canceled totally. Developers have responded to the slow market by doing one or a combination of the following:
Canceling or postponing projects
Slowing construction; phasing projects.
Offering incentives (Upgrades, financing)
Returning deposits.
Simply “going on vacation”
These actions will help the oversupply situation. But make no mistake, there will be an oversupply for at least two years.
You must also not expect construction costs to go down. This is a critical point. Replacement homes will cost more than what is already built. World wide demand, let alone local demand, for raw materials and labor is too high for us to see an appreciable decrease in costs. What does this mean? This means that existing homes and commercial buildings will be less expensive to buy than to build or buy new. Once the existing inventory is gone you will see rapid upward price pressure.
Existing home sales dropped nearly 13% in August from the year before. The median price fell 1.7% nationally. Locally we are seeing prices drop in the fifteen percent range. I say, “So what?” The increased prices and volumes that we dropped from were artificially high, pumped up by a frenzy that we could not sustain and that sellers and builders and developers reacted to swiftly. The market is simply correcting for four years of over zealous growth.
Developers and builders can’t react as quickly as buyers. This speed up the price ramp up and slowed down the recovery. The reaction to the hot market took at least a year – this is the time it took for entitlement of land, permitting and financing to be arranged. The reaction to the slowdown in buying is not as swift. It couldn’t be. Properties were bought, monies were committed, entitlements were done, and buildings commenced. But those projects that could be put on the back burner were.
Will there be a high number of “drop outs”? (These are buyers that put deposits down and will not go through with their purchase upon the new homes completion). I do not think so. Real estate is not a commodity. It has emotional value and personal involvement. The projects that are proceeding to closings now are seeing very little actual drop outs. Let’s hope that continues.
_____________________________
I recently finished reading Good To Great , by James Collins, Harper Business, 2001. The book was given to me by my friend Christopher Jacob. He was sure that I would identify with it. He was right, and I highly recommend the book. Collins has a reference in the book to Admiral Jim Stockdale, the highest ranking prisoner in the “Hanoi Hilton” prisoner-of-war camp during the Vietnam War. Stockdale endured eight years of imprisonment. Collins asked, “Who didn’t make it out?”
Stockdale replied, “The optimists”
He goes on to say that these were the guys that kept thinking they were getting out by, say Christmas; then Easter; then Summer; etc. They kept looking forward to their release and not dealing with the harsh realities of life in the camp. Collins even went so far as to develop “The Stockdale Paradox”.
I could not help drawing the parallel with the real estate optimists that last august said the buyers would return by Season. Then it was, “Well, this is a slow season - wait until after Christmas,” then it was, “Heck the real buyers buy just before they go home for the season.” Meanwhile they went about their lives spending money like it was 2004.
The point is: optimism is fine. However you need to keep your eye on the certainty of your success, and at the same time you must deal with the harsh realities of life that will get you there.
(A small example; you will sell your condo, but deal with owning for the next (2 years) until you DO sell it.)
I have always been a commercial real estate guy. I like the numbers, the art of the deal, the logic of the buyers and sellers, and I love the commercial market. Market America got heavy into residential over the last four years. We still do very well in that arena and do best representing buyers. Buyers need knowledgeable agents to find the best deals in a field of many great deals.
My personal love is still commercial. In this category I put residential investors.
We have released our office condos for contract at Cyperlin Center. THIS IS OUR OWN DEVELOPMENT. Prices are from $958,000 to $4,000,000. Completion will be late 2007 or early 2008. You need to visit the site to appreciate the grandeur of the vision for this office building. We need ten percent down now. Call or email me for details or go to the website.
We have added to our commercial team and we now have one of the best teams in the county. We are working on self storage land, office buildings, medical buildings, industrial, and retail properties. Apartments, retail and multi-use centers. We know how to work with investors and sellers alike. Try us. You will not be disappointed.
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
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
The Snowflake That Caused he Avalanche
The Snowflake that Caused the Avalanche
I had lunch Friday with two of the finest gentlemen in real estate development; John Armenia and his son Joe. (The Armenia Group most recently developed Riva Del Lago ). We met first at their offices on Sanibel Island. The office speaks well for them without shouting; polished wood, high stylized ceilings, glass partitions and low voltage light pendants always illuminating just the right spot for work. I felt more like I was in a fine lounge than in a place for business.
I shared with John and Joe the 3D rendering or the amenities center at Cyperlin Center. The amenities center at Riva Del Lago was one of the inspirations for what we designed at Cyperlin - fine finished, understated class, and pure luxury.
We continued our discussions over lunch. As what usually happens when real estate people get together we eventually talked about what caused the slow down and what will precipitate the turnaround. Many root causes were brought up and the talk went from hurricanes to over-building to overzealous and inexperience investors; greedy pricing increases by developers and unrealistic profit anticipation by flippers. (By the way – Riva Del Lago continues to be a great value here in Fort Myers – if you have not seen it, get Deb@ma-realty.com to give you a tour.)
I would like to share with you some of my feelings on these two issues – the slow down and the eventual turnaround. Pointing a finger at the cause for the slowdown is about as easy as pointing a finger at the one snowflake that caused the avalanche. Some might call it the perfect storm. That might by apropos because the general consensus was that the timing of the slowdown coincided with the hectic hurricane season of 2005.
The hurricanes themselves were not the only issue, but there certainly was unrest in the mid east and oil prices that spiked because of the short term shutdown of supply caused by Katrina in the gulf heightened sensitivity about gas prices. The increased gas prices caused concerns abut some people contemplating a second home that their pocketbooks might suffer.
By that time last summer and fall the developers where capturing the margins that in the past were going to the investors. Most had already bumped up preconstruction prices to eliminate the investor by then.
Raw material cost and interest rates were on the rise. This is a one two punch that hits from both sides. China consumption of concrete and steel drove down supply and increased prices here in the US. Prices of new homes went up and so did the cost of borrowing. Adjustable rate mortgages went up for existing home owners making them think twice about a second purchase.
The resale market slowed as new homes attracted more buyers than used homes did. The trade up market (buyers looking for bigger or better homes) suffered as sellers could not sell their existing homes. High property taxes and skyrocketing insurance rates were financially trapping folks in their homes.
Reaction time by developers is slow. It takes a long time to entitle and permit a project. We were already in a slow down and some projects were not even out of the ground yet. But they could not stop; they had presales and monies committed. So even though condos and homes were not moving, more and more inventory was added – kind of like adding more dry wood to a raging fire; and to add accelerant to the incendiary situation, costs continued to rise – both on raw materials and land.
Ok, so the cause of the slowdown may have been:
□ Hurricanes
□ The war in Iraq
□ Gasoline Prices
□ Interest Rates
□ Property taxes
□ Insurance rates
□ Raw material and labor costs increases
□ China’s emergence as a huge consumer of construction goods.
□ Inexperienced real estate investors
□ Developer’s reaction times
□ Too much inventory
Which snow flake caused it all? I don’t know. I think the answer is different for different folks. Conditions were precarious and ready to fall. We just did not know it at the time.
The recent BP oil field debacle, which by the way only effects under 2% of oil usage here in the U.S, is another scary example of just one snow flake causing an avalanche. By all rights this should not have caused the stir on Wall Street that it did. I am now reading a superb book on energy situation; A Thousand Barrels a Second by Peter Tertzakian. I highly recommend it. It will give you a better understanding of wher we will be going on the oil situation.
My feeling is that the turn around will happen very quickly (but not very soon,) but we will be into it before we know what hits us. Look at the potential list of causes for a clue. First, for things that will not change quickly, like the cost of gasoline, we have to get dulled to the effect. Other issues, like interest rates, need to make a turn or stall. The recent pause by the fed is a good sign. I see another increase before the end of the year and then perhaps more pauses and a turn around. But this may mean that the economy is starting to cool.
Inventory will be depleted – BUT VERY SLOWLY - and when supply and demand is in better balance prices will increase more rapidly again.
A point to make here is that indeed prices are still increasing. We are still experiencing housing inflation. Don’t be fooled into thinking prices in general are dropping. They are not. As I have said before there are a pocket of super deals. But long term players will do very well in the real estate market.
Certainly the inexperienced investors are out of the market. As Joe Armenia correctly pointed out to me yesterday, the situation was similar to the stock market dot com boom. Those inexperienced investors will not be back very soon.
Watch for the snowflakes good and bad. No hurricanes this year would be a good snowflake. A terrorist attack on our transportation system a bad one. Both could have a great effect on our little corner of paradise.
I may have a few opportunities that I would like to talk to experienced investors about. If you are interested drop me a call 239-425-0771 or an email Gregg@ma-realty.com.
Gregg
www.investinwaterfront.com
www.cyperlincenter.com
I had lunch Friday with two of the finest gentlemen in real estate development; John Armenia and his son Joe. (The Armenia Group most recently developed Riva Del Lago ). We met first at their offices on Sanibel Island. The office speaks well for them without shouting; polished wood, high stylized ceilings, glass partitions and low voltage light pendants always illuminating just the right spot for work. I felt more like I was in a fine lounge than in a place for business.
I shared with John and Joe the 3D rendering or the amenities center at Cyperlin Center. The amenities center at Riva Del Lago was one of the inspirations for what we designed at Cyperlin - fine finished, understated class, and pure luxury.
We continued our discussions over lunch. As what usually happens when real estate people get together we eventually talked about what caused the slow down and what will precipitate the turnaround. Many root causes were brought up and the talk went from hurricanes to over-building to overzealous and inexperience investors; greedy pricing increases by developers and unrealistic profit anticipation by flippers. (By the way – Riva Del Lago continues to be a great value here in Fort Myers – if you have not seen it, get Deb@ma-realty.com to give you a tour.)
I would like to share with you some of my feelings on these two issues – the slow down and the eventual turnaround. Pointing a finger at the cause for the slowdown is about as easy as pointing a finger at the one snowflake that caused the avalanche. Some might call it the perfect storm. That might by apropos because the general consensus was that the timing of the slowdown coincided with the hectic hurricane season of 2005.
The hurricanes themselves were not the only issue, but there certainly was unrest in the mid east and oil prices that spiked because of the short term shutdown of supply caused by Katrina in the gulf heightened sensitivity about gas prices. The increased gas prices caused concerns abut some people contemplating a second home that their pocketbooks might suffer.
By that time last summer and fall the developers where capturing the margins that in the past were going to the investors. Most had already bumped up preconstruction prices to eliminate the investor by then.
Raw material cost and interest rates were on the rise. This is a one two punch that hits from both sides. China consumption of concrete and steel drove down supply and increased prices here in the US. Prices of new homes went up and so did the cost of borrowing. Adjustable rate mortgages went up for existing home owners making them think twice about a second purchase.
The resale market slowed as new homes attracted more buyers than used homes did. The trade up market (buyers looking for bigger or better homes) suffered as sellers could not sell their existing homes. High property taxes and skyrocketing insurance rates were financially trapping folks in their homes.
Reaction time by developers is slow. It takes a long time to entitle and permit a project. We were already in a slow down and some projects were not even out of the ground yet. But they could not stop; they had presales and monies committed. So even though condos and homes were not moving, more and more inventory was added – kind of like adding more dry wood to a raging fire; and to add accelerant to the incendiary situation, costs continued to rise – both on raw materials and land.
Ok, so the cause of the slowdown may have been:
□ Hurricanes
□ The war in Iraq
□ Gasoline Prices
□ Interest Rates
□ Property taxes
□ Insurance rates
□ Raw material and labor costs increases
□ China’s emergence as a huge consumer of construction goods.
□ Inexperienced real estate investors
□ Developer’s reaction times
□ Too much inventory
Which snow flake caused it all? I don’t know. I think the answer is different for different folks. Conditions were precarious and ready to fall. We just did not know it at the time.
The recent BP oil field debacle, which by the way only effects under 2% of oil usage here in the U.S, is another scary example of just one snow flake causing an avalanche. By all rights this should not have caused the stir on Wall Street that it did. I am now reading a superb book on energy situation; A Thousand Barrels a Second by Peter Tertzakian. I highly recommend it. It will give you a better understanding of wher we will be going on the oil situation.
My feeling is that the turn around will happen very quickly (but not very soon,) but we will be into it before we know what hits us. Look at the potential list of causes for a clue. First, for things that will not change quickly, like the cost of gasoline, we have to get dulled to the effect. Other issues, like interest rates, need to make a turn or stall. The recent pause by the fed is a good sign. I see another increase before the end of the year and then perhaps more pauses and a turn around. But this may mean that the economy is starting to cool.
Inventory will be depleted – BUT VERY SLOWLY - and when supply and demand is in better balance prices will increase more rapidly again.
A point to make here is that indeed prices are still increasing. We are still experiencing housing inflation. Don’t be fooled into thinking prices in general are dropping. They are not. As I have said before there are a pocket of super deals. But long term players will do very well in the real estate market.
Certainly the inexperienced investors are out of the market. As Joe Armenia correctly pointed out to me yesterday, the situation was similar to the stock market dot com boom. Those inexperienced investors will not be back very soon.
Watch for the snowflakes good and bad. No hurricanes this year would be a good snowflake. A terrorist attack on our transportation system a bad one. Both could have a great effect on our little corner of paradise.
I may have a few opportunities that I would like to talk to experienced investors about. If you are interested drop me a call 239-425-0771 or an email Gregg@ma-realty.com.
Gregg
www.investinwaterfront.com
www.cyperlincenter.com
No one Goes there anymore, It's too crowded
No one goes there anymore. It’s too crowded.
Welcome back Gregg. (Thank you to those that noticed I have been gone.) I actually have not been gone, but I did take a month off from writing to you. Since the Fourth of July weekend I have been struggling with TWO bad ankles and the pain has been wearing me thin.
One of the books I am reading now (Until I Find You; John Irving, Ballentine Books) has a wonderful passage about a young boy. The young man tells the reader that a one legged man gave a gift to his imagination by NOT telling him how he lost his leg. I happened to mention this passage to my good friend John Stamps yesterday. He got up this morning and suggested by a 5 AM email that I not feed my subscribers too many “Gifts to their imagination”. Thanks John. I’m back.
It was Yogi Berra that first said something along the lines of my subject line, “No one goes there any more. It’s too crowded”. This year Lee County population has topped 550,000 and will go to just under 1,000,000 by 2030 (Lee County). They are still coming – and to the tune of about 800 a week. But if you are not a long term investor – you may be in for some anxious times. We are in a slow down and it will take some time to bounce back.
When will the market recover? Yogi also once said, “I wish I had an answer to that because I'm tired of answering that question” But let’s talk about recovery. We now have an over inventory of new and resale homes. In other words we have more sellers than buyers. If the question is when will there be more of a balance in the market – my short answer is not until after next season – eighteen months or so.
A few months ago I predicted that financing was the main issue. Last weekend I saw a 1.25% rate offered by one of the major builders. If this does not bring more sales – what will this builder turn to next? I still say he will NOT lower prices. He may cancel his project, but lowering prices is just not an option that is very palatable for developers. Cost, while seeing some drop, will not drop enough to help in the short term.
Re-sales are a different story. If buyers of condos locked in their price early 2005, they still may be able to sell at a profit. But the high inventory of condos means even condos priced “right” may sit on the market for a long time. (I still have some VERY good deals in resale condos – after all this is a BUYERS market). If you want to get your foot on the escalator- email Debbie@ma-realy.com. Also check out www.citadel-bonita.com – my favorite entry level condos.
The single family home market will recover much sooner than condos. There were not as many investors and the smaller builders are quicker to respond to changing markets. Their inventory of lots was much lower than the big buys.
You will see some bold moves by the big developers like Endeavor. They will announce their Windsor Lake Estates project at a big bash in Cape Coral in September. Endeavor has surmised, correctly, in my opinion, that the one quarter acre lot typically available (and by the thousands) in Cape Coral is not a market they want to compete in. Windsor will be large lots of half acre in a low density gated community, not something you can easily get in Cape Coral.
The commercial market in Lee County is booming. I wish I already had a completed Cyperlin Center. I could fill it in a month. The pendulum has swung from residential to commercial as residential builders now look at the slow market for homes and condos as a time to rebuild the low inventory of office, industrial, and retail space. I do have a few opportunities for investors for Cyperlin. If you are interested in learning more, call me. 239-425-0771.
Most of my time now is spent looking for buy opportunities. We are also adding to our commercial staff. If you have experience in commercial real estate and want to operate with an experienced and trustworthy team, get in touch with me.
Gregg
www.investinwaterfront.com
Welcome back Gregg. (Thank you to those that noticed I have been gone.) I actually have not been gone, but I did take a month off from writing to you. Since the Fourth of July weekend I have been struggling with TWO bad ankles and the pain has been wearing me thin.
One of the books I am reading now (Until I Find You; John Irving, Ballentine Books) has a wonderful passage about a young boy. The young man tells the reader that a one legged man gave a gift to his imagination by NOT telling him how he lost his leg. I happened to mention this passage to my good friend John Stamps yesterday. He got up this morning and suggested by a 5 AM email that I not feed my subscribers too many “Gifts to their imagination”. Thanks John. I’m back.
It was Yogi Berra that first said something along the lines of my subject line, “No one goes there any more. It’s too crowded”. This year Lee County population has topped 550,000 and will go to just under 1,000,000 by 2030 (Lee County). They are still coming – and to the tune of about 800 a week. But if you are not a long term investor – you may be in for some anxious times. We are in a slow down and it will take some time to bounce back.
When will the market recover? Yogi also once said, “I wish I had an answer to that because I'm tired of answering that question” But let’s talk about recovery. We now have an over inventory of new and resale homes. In other words we have more sellers than buyers. If the question is when will there be more of a balance in the market – my short answer is not until after next season – eighteen months or so.
A few months ago I predicted that financing was the main issue. Last weekend I saw a 1.25% rate offered by one of the major builders. If this does not bring more sales – what will this builder turn to next? I still say he will NOT lower prices. He may cancel his project, but lowering prices is just not an option that is very palatable for developers. Cost, while seeing some drop, will not drop enough to help in the short term.
Re-sales are a different story. If buyers of condos locked in their price early 2005, they still may be able to sell at a profit. But the high inventory of condos means even condos priced “right” may sit on the market for a long time. (I still have some VERY good deals in resale condos – after all this is a BUYERS market). If you want to get your foot on the escalator- email Debbie@ma-realy.com. Also check out www.citadel-bonita.com – my favorite entry level condos.
The single family home market will recover much sooner than condos. There were not as many investors and the smaller builders are quicker to respond to changing markets. Their inventory of lots was much lower than the big buys.
You will see some bold moves by the big developers like Endeavor. They will announce their Windsor Lake Estates project at a big bash in Cape Coral in September. Endeavor has surmised, correctly, in my opinion, that the one quarter acre lot typically available (and by the thousands) in Cape Coral is not a market they want to compete in. Windsor will be large lots of half acre in a low density gated community, not something you can easily get in Cape Coral.
The commercial market in Lee County is booming. I wish I already had a completed Cyperlin Center. I could fill it in a month. The pendulum has swung from residential to commercial as residential builders now look at the slow market for homes and condos as a time to rebuild the low inventory of office, industrial, and retail space. I do have a few opportunities for investors for Cyperlin. If you are interested in learning more, call me. 239-425-0771.
Most of my time now is spent looking for buy opportunities. We are also adding to our commercial staff. If you have experience in commercial real estate and want to operate with an experienced and trustworthy team, get in touch with me.
Gregg
www.investinwaterfront.com
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