Advantage Realtors recently became a HUD Approved Broker to better serve our investor and home buyer clients. We have long helped our investor and buyer clients locate and purchase Bank REO, Fannie Mae, and Freddie Mac Foreclosure Properties and this new certification as a HUD Approved Broker rounds out our access to available foreclosure properties. In addition to direct updates on avaliable properties from sources such as banks, Fannie Mae, and Freddie Mac, we now receive daily hot lists of new Hud Homepath homes as well. We can show and submit offers on behalf of our clients for any and all classes of available forclosure properties no matter who the seller is – private asset managers, banks, or governmental institutions. 

Now is the time to diversify your investment strategy and according to Advantage Realtors Broker/Owner, Robert Whitfield, “one of the best ways to diversify is to build a real estate portfolio. And there has never been a better time to do that than now. We are in a unique market that allows some of the best Atlanta real estate acquisition opportunities in the last 40+ years. Properly selected and managed investments should do very well. Except in unique and one of a kind circumstances, this is not a buy and flip market. It is an ideal rental investment market - by selecting a strategy of holding and renting properties for at least 5 years, you will allow for the maximum ’built-in appreciation’ to come back for a much better net when you sell. When you can buy a home for $28K to $60K – the same price the raw lot alone would have cost you a few years ago, and moreover, for a price that you could not even buy the building materials needed to construct the home, much less the labor costs – you have built in equity and a buffer of such a magnitude that even if prices decline a little further over the next 16 months which is the worst case scenario, its still almost impossible not to do well over a 3-5 year timespan.” 

Whether you are a foreign or US buyer, if you would like more information about investing in the Atlanta foreclosure market, and or information about our Property Management, Property Rehab, or other real estate services, feel free to contact Robert Whitfield directly at 678-585-9691.

Money Magazines Description of Sandy Springs:

Charming Southern gentlemen and sweet Georgia peaches in this Atlanta suburb are making the rounds at one of three major hospitals in the area or running operations at a Fortune 500 company like United Parcel Service or Newell Rubbermaid. Thanks to the natural springs the city is named for and the Chattahoochee River that flows through it, Sandy Springs offers a tranquil and peaceful setting for romance to blossom. After taking a stroll along the riverbank, head to Buckhead, Atlanta’s vibrant uptown district, for a night on the town. –H.Y.

I agree – young doctors and interns will find Sandy Springs very convenient to the major hospital complexes at Northside, St Josephs, and Emory!

A few stats:

Population: 82,674
Single: 35.6% – (that’s a high ratio of singles)

Median family income: $115,171 (That ranks in the top 25 of all 100 Best Places Cites)

Median Home Price: $380,000

Whether you’re a Grey’s Anatomy type in the medical field, rich, middle income, single or married, I can help you get a superb deal on prime Sandy Springs, GA real estate – from $200,000 to $10,000,000 – just reach out to me at 678-585-9691!
Robert

As a licensed GA real estate broker and 30 year resident of metro Atlanta, I can tell you there are other excellent places to live in North Atlanta as well, such as Marietta, East Cobb (the section of Roswell I live in) Alpharetta, Milton, Crabapple, and Johns Creek – these should have been on the list.

Money magazines description of Roswell:

Home to several plantation houses from the Civil War era, historically rich Roswell is committed to a family-friendly environment. It has some of the best public schools in the state, the lowest crime rate in the region, and a myriad of outdoor activities, making it easy to understand why families flock to this affluent Atlanta suburb. Residents love their many public events, including the monthly Alive after Five summer festival, with plenty of food, shopping, and live music. –J.S.

All true and here are a few stats to go along:

Median Family Income- $113,750 (ranked 24th highest income of the100 cities)

Median Home Price – $246,700 (the average of the 100 as $239,300)

Now as you know, Oprah Winfrey can afford to live anywhere on the planet, and I read a quote in a magazine article where she said Roswell, GA was one of the best places to live a few years ago – though I can’t recall which magazine, I agree with Oprah!

Oprah or anyone else wanting help on securing a fantastic deal on prime Roswell real estate, or a wonderful home anywhere in greater North Atlanta should call me immediately at 678-585-9691! Robert

How FHA-Insured Mortgages Work

Most people forget — the FHA is not in the business of making loans to homeowners. Rather, the FHA insure loans that lenders make to borrowers. The FHA puts out a set of guidelines says to banks that “so long as your borrowers meets these requirements, we will insure the loans you make to them.”

Now, banks don’t expect their FHA-backed loans to go bad, but when their loans default, the FHA steps in and makes payment on them similar to how any insurance-type company would operate. And, to fund these claims, the FHA uses its insured borrowers’ own money.

Homeowners backed by the FHA pay into the FHA insurance fund in two ways:

1.With a one-time, upfront payment at closing called Upfront MIP
2.With an monthly, pro-rated annual payment called Annual MIP
Mortgage insurance premiums kick off a lot of money and the FHA has been self-funded for years without issue. However, as FHA home loan defaults have climbed recently, so have insurance payouts to lenders. It’s put a ginormous strain on the FHA’s solvency.

For example, in September 2008, the FHA held $19 billion in reserves. Today, that number is $3 billion.

In the FHA’s own words, the groups reserves are “perilously low”.

Summarizing The FHA Mortgage Insurance Changes

As a means to help refill its coffers, therefore, the FHA recently changed its upfront and annual mortgage insurance premium structure. It’s the second tweak of 2010 and the changes apply to FHA case numbers issued on or after October 4, 2010.

Under the updated mortgage insurance program, assuming a 30-year fixed rate FHA mortgage with at least 5 percent equity:

•Upfront MIP drops to 1.000% of the amount borrowed from 2.250%
•Annual MIP increases to 0.850% of the amount borrowed from 0.500%
For homeowners using an FHA-insured mortgage, the upfront cost of the loan will drop by a lot, but the long-term costs of the loan will grow.

Using a $200,000 mortgage as an example, upfront MIP falls to $3,000 from $7,750; monthly MIP jumps to $212.50 from $125.00. The FHA expects the change to yield an additional $300 million in premiums monthly.

Of course, Mortgage Insurance Premiums can be terminated once you have 20% equity in the home – the key is to stay in touch with the market and have your home appraised when you think you have built up sufficient equity. Always contact your lender about getting MIP removed before you pay for an appraiser.

In Summary:

•Previous MIP system : Big upfront costs, low long-term costs
•New MIP system after October 4, 2010 : Low upfront costs, big long-term costs – costs you less up front, but more in the long run – for as long as your home has less than 20% equity.

Contact me anytime at 678-585-9691 if you need a market analysis of your Atlanta homes value or a referral to a great Atlanata lender.

Well, you’re not alone. In a recent survey 50% of potential buyers felt foreclosures were at least a moderate problem in their area and did depress overall home values.

But there is good news – Buying a Home is still appealing!

A recent National Association of Realtors survey found that 8 out of 10 of those surveyed felt that buying a home was still a good financial decision.

The 8th Annual Housing Opportunity survey found that despite job security concerns being the highest in the last 8 years, buying a home was still on people’s minds. 68% of those surveyed feel that now is the time to buy even though a majority was also worried about the drop in home values.

According to RealtyTrac, foreclosures are still trending up in many areas of the country and experts feel this will not level out until late 2011. The majority of those surveyed felt that banks have made it too hard to get a loan.

Are new buyers waiting to enter the market?

The Annual Housing Opportunity survey found that 39% of renters feel that owning a home in the future was a high priority and that 24% felt owning a home was a moderate priority. This holds good news for the market as continued small upticks in sales volume and new building volume continue to be reported.

Another silver lining for the economy, while unemployment is still high, experts report that many businesses who had to do layoffs in the past are now seeing increased revenue and some are even having to hire new staff to meet demand.

I am currently working with residential and multifamily investors from Japan and Canada, and in talks with an Austrailian firm that wants to buy a portfolio of up to 150 properties in Atlanta. They all see the long term benefit and opportunity of investing in the Atlanta market at this time. In 4-5 years and beyond I think they will be very pleased with wise real estate investments made now compared to thier other investments, and especially compared to leaving funds in the bank.

If you or anyone you know would like to discuss taking advantage of the outstanding, single family, multifamily, and commercial Atlanta property investment deals in this once in a lifetime real estate market, give me a call at 678-585-9691.

It’s time to give our Atlanta homes a Fall tune-up. Everything from your furnace to the gutters needs to be made ready for the long cold winter months. Ok, I know all of you northerners are saying, it’s Atlanta – don’t you mean long mild winter months? Hey, winter is cold wherever you are! To help you cover all the bases, we’ve come up with a handy fall-maintenance checklist. Consult it every year and your home will thank you – actually many of these items need to be checked in late spring as well for season appropriate service such an AC check up.

Check your heating equipment before the beginning of cold weather – I like to know that my furnace will come on while its still in the 70’s! Have a qualified heating and cooling contractor clean and service your furnaces and if you have a heat pump the outside units as well. Clean heart pump coils operate more efficiently, and a seasonal service call will keep the system working at peak performance levels.

Check and replace your furnace filters every month. Clean filters not only keep your house cleaner, they reduce your utility bills because your HVAC system does not have run as long to make your home comfortable as when the filters are clogged with dust.

Change batteries on smoke and carbon monoxide detectors – don’t worry that your batteries may still have some charge and your “blowing $6” – this can save your life. As Nike says – Just Do It!

Clean out your gutters as soon as the leaves have all fallen – sometimes this has to be done twice. This is very important – clogged gutters can overflow and over time seep into walls and cause serious water damage to structural members.

Check for loose or leaky gutters. Improper drainage can lead to water in the basement or crawl space. Make sure downspouts drain away from the foundation and are clear and free of debris. Hire a company if your home is a two story.

Low areas in the yard or next to the foundation should be filled with compacted soil. Winter rains can cause yard flooding, which can lead to foundation flooding and damage from settlement.

Use a screwdriver to probe the wood trim around windows, doors, railings and decks. Make wood repairs now before the winter rains do more damage to the exposed wood. For small pockets of damage or rot, Borden makes very good wood filler that is available at most homes centers, and Zinsser makes a great exterior spackle called MH Ready Patch that outperforms vinyl spackling compounds – home centers and paint stores sell this product. (No, I don’t get a commission from either company.)

Examine putty and caulk joints around exterior window panes and window and door trim and re-putty or caulk as needed to keep out water and air. Ensure that weather stripping on doors and windows creates a good seal.

From the ground, examine roof shingles to see if any were lost or damaged during summer storms. If your home has an older roof covering, you may want to start a budget for replacement. The summer sun can really damage roof shingles. Shingles that are cracked, buckled or loose or are missing granules need to be replaced. Flashing around plumbing vents, skylights and chimneys need to be checked and repaired by a qualified roofer.

Examine the exterior of the chimney for signs of damage. Have the flue cleaned and inspected by a certified chimney sweep. A burning fireplaces in winter is charming – burning your house down is not! Have your flue checked for creosote buildup at least every two years if you use the fireplace regularly and never burn pine wood in a fireplace, and only burn coal if the fireplace is rated for coal and has the proper coal grate – most are not rated for coal.

Inspect concrete slabs for signs of cracks or movement. All exterior slabs should drain away from the home’s foundation. Fill cracks between your foundation and items that abut the foundation such as: porches or entrance stairs, sidewalks, and driveways with a concrete crack filler or silicone caulk.

Locate and turn off the shut off valves for all outside hose faucets, then disconnect garden hoses, and drain the faucet and the hose for the winter.

Check your gas-powered lawn equipment to make sure they are ready for storage – empty the gas tanks and run the equipment until the gas is completely used up before storing it away.

As the Boy Scouts Say, Be Prepared! Winter Emergency Tips for the Unexpected!

When the power goes out, or the ice builds up and you can’t get out of your driveway it can be inconvenient and in some cases dangerous. The following are preparedness items you might want to stock up on.

Candles – heavy pillar candles that can burn for days – never leave a candle burning unattended or while you sleep.

Rock salt - to keep your steps, porches, and driveways clear of ice and help prevent dangerous falls. If you have a steep driveway – a few 10 lb bags of rock salt can be the difference in being ice bound in your home, or being able to leave.

Sleeping bags – if you don’t have multiple heavy down comforters, even cheap Wal-Mart 30-40 degree bags can be way better than piles of blankets when the power is out comfort in winter – they can even be a life saver.

Of course there are emergency food ration kits to support an individual for up to a year for those so inclined – search on Google. You could also stock up on some canned goods. One great and pretty inexpensive option for a few days to a week is to buy freeze dried Mountain House meals that you just add boiling water to the foil pouch and wait 5 minutes. I have had the Spaghetti, Chili Mac, and Beef Stroganoff while backpacking on the Appalachian Trail and these taste (and look) great – I suggest you avoid military rations. You can get Mountain House products at Wal-Mart, REI and other outdoor outfitters. It helps to have a way to boil water or heat food – I have MSR isobutane camping/backpacking stoves to boil water.

Water – I store 10 one gallon jugs of distilled water in my basement for emergencies. In closing, you never know how long the power will be off…

In our famous Atlanta snow jam of 1983, (should have been called ice jam) I was visiting my grandmother down in Griffin on her farm and was watching an interesting Jacques Cousteau deep sea diving special on TV and the power went off. After about 45 minutes of waiting for the power to come on I began to get annoyed…little did I know that the power was going to be off for 7 full days and nighttime temps would plummet to 30 below zero 30 miles south of Atlanta! Fortunately the farm was set up to endure that event much better than the average suburban Atlanta home – old fashioned oil burning lamps, a full supply room of home grown canned vegetables, and my grandmothers awesome stews and cobblers, and two coal burning stoves kept us far more comfortable than hundreds of thousands of other folks who were caught in the snow jam – we were actually quite cozy in a strange “back to the 1800s” time warp. I got a real appreciation for how wonderful electricity is thank you Mr. Edison – I was lucky I was there and not back at my then home in the burbs of Stone Mountain.

Even Investment Fund Managers Are Capitalizing On The Current Real Estate Deals

I found the following article interesting and have always felt real estate whether commercial or residential is a great long term investment when “properly bought” – especially when prices on all classes of property, commercial, condos, second homes and bank foreclosures, as well as purchase money is at an all time low. Robert Whitfield

From Reit.com
September 29, 2010

New data show the proportion of retirement and profit-sharing plans that include a commercial real estate investment option jumped from 24.8 percent in 2008 to 33.4 percent in 2009.

The finding was reported by the Profit Sharing /401k Council of America (PSCA), a non-profit association of 1,200 companies that sponsor defined contribution (DC) plans for 5 million employees, in the 53rd Annual PSCA Survey of Profit Sharing and 401(k) Plans.

According to Kurt Walten, senior vice president of investment affairs and investor education for NAREIT, the survey confirms changes NAREIT has seen firsthand.

“The recent PSCA survey validates the trends we are seeing as part of NAREIT’s outreach efforts directed at the DC space, which represents one-third of the $15 trillion retirement market,” Walten said.

Along with the increase of REIT allocations in these funds, the survey shows more employees are participating in DC plans. The level of enrollment in DC plans rose from 85.5 percent in 2008 to 87.3 percent in 2009.

Walten said NAREIT has witnessed the growth in the popularity of REITs in DC plans through direct meetings with DC plan sponsors and investment product managers. REIT options are proliferating in 401(k) plans and target-date funds, according to Walten.

“It is notable that whereas as recently as 2005, a minority of target-date fund managers were investing in real estate, a 2009 study by investment consultants Callan Associates found that 73 percent of target-date fund managers had a dedicated real estate allocation in their offerings,” Walten said. “And most target-date and target-risk fund products provide real estate exposure exclusively through the use of publicly traded REITs.”

Walten attributed the growth of REIT offerings in DC plans exhibited by the PSCA data to the recognition of the benefits REITs offer investment portfolios, such as diversification and protection against inflation.

In addition to helping homebuyers and investors with the location and purchase of Atlanta investment deals, I also work with a variety of resort property developers all accross the south east and the Bahamas, Cental and South America – visit the Resort Properties page on this site often to see new properties as they come on board.

Contact me anytime for more information at 678-585-9691.

Robert Whitfield

In today’s market, many home buyers and investors are attracted by the increasing number of foreclosed homes that are constantly becoming available in the Atlanta market. Although foreclosed homes often present a great opportunity, there are also risks to be aware of. Buyers should realize that foreclosed homes are not always great deals, and often times, they come accompanied by a set of serious financial or structural problems that if not detected could make for a very poor investment.

There are many things that buyers need to consider before they decide to make an offer on a foreclosed home. While this article is about single-family homes, it is worth pointing out that many buyers are completely unaware that condominium foreclosures come with an additional set of concerns and require even more due-diligence than single family home foreclosure property.

One of the first issues to consider is the condition of the properties title. For example, you want to know if additional liens such as second mortgages and tax liens may still be attached to the property and passed on to a new buyer.

Buyers should also be aware that most foreclosures are sold “AS IS.” Some foreclosure properties are open to inspections, but others are not. Since foreclosed homes often remained abandoned for long periods of times before they get sold, some may be victims of pest infestation, mold growth, and vandalism.

Another thing to consider is that a property disclosure statement is often not available because the seller is a bank and they have no knowledge of the property – this in another reason why having an inspection expert is critical. It is important to check everything from plumbing, electric wiring, foundation, etc.

There are other issues to consider, but suffice it to say, a lot of research needs to be done before making an offer on a foreclosed home.

It pays to find the best real estate expert you can find, and one with experience dealing with foreclosures and negotiating with banks and asset managers when considering buying foreclosures and bank REO properties.

 
The Huffington Post

August 11, 2010

WASHINGTON — The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation’s toughest job markets.

The Treasury Department said Wednesday it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

The administration was required to launch the HUD emergency loan program by the financial regulatory bill signed by President Barack Obama last month.
The Treasury is using money from the $700 billion Wall Street bailout to pay its share of the program. Officials said they won’t know until next month how many people are likely to be helped.

California will get the largest share of money for the Treasury program, at $476 million. Florida is in line for nearly $239 million. Illinois will receive $166 million and Ohio will receive $149 million.

The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration’s main effort to assist those facing foreclosure.

That program, known as Making Home Affordable, provides lenders with incentives to reduce mortgage payments. So far, it has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.

Also receiving money are Michigan, $129 million; Georgia, $127 million; North Carolina, $121 million; New Jersey, $112 million; Indiana, $83 million and Tennessee, $81 million.

Alabama is due to receive $61 million, South Carolina, $59 million; Kentucky, $56 million; Oregon, $49 million; Mississippi, $38 million; Nevada, $34 million; Rhode Island, $14 million; and Washington, D.C., $8 million.

The government’s department of Housing and Urban Development said it will announce details about the program, coined the Emergency Homeowner Loan Program, in the coming weeks.

As always, call me if I can be of service to you or your friends. I am available to assist and consult regarding your Atlanta real estate needs, and provide unmatched buyer or seller representaion, results, and protections.

Regards,

Robert Whitfield
Broker/Owner, Realtor
ICC Code Certified Home Inspection Expert
New Home Construction Expert
Advantage Realtors
678-585-9691
877-787-7167

As a member of some professional real estate groups on Linked In, I recently answered the following agents post and thought it might be of interest to my readers. About 50 other agents and brokers responded as well and made the obvious point that agents protect themselves when they insist on a Buyer Brokerage Agreement. A few agents said they had no problem “working” with buyers without the agreement – that no buyer had stiffed them. What no one discussed was the legal implications for the agent when they don’t excercise their duty to fully disclose agency choices to buyers so they understand the implications of their choices, the limitations and risks to the agent and buyer when the agent agrees to work without a Brokerage Agreement, and all the negative implications for the buyer when no Brokerage Agreement is used – that’s why I wanted to respond with an answer that more fully incompassed the ramifications of all aspects of the subject:

Buyer Broker Agreements. Do you use them?

Jarred – I typically only work with someone if they will sign a buyer broker. It just adds protection. Yet I have a new buyer who sought me out from an open house I had, whose wife is a former Realtor from another state and he’s just adamant about not signing one because they fear it ‘locks them into me.’ I may veer away from them because of this. If they’re already telling me they don’t want to be locked into ONE Realtor already this may be a red flag for me that I’ll end up getting left in the cold. Thoughts?

Robert Whitfield • I will only work with a buyer while under a written Exclusive Buyer Brokerage Agreement – and here is why:

1. You do protect yourself – against a buyer using another agent after you have done all the work – or thinking they can somehow do better than you and contacting the seller directly.

Note: I have a very unique and advantageous Buyer Representation Program that no other agent here in Atlanta can match, so I run very little risk of a buyer leaving me for another agent. For me, the next point is really the driving reason to ONLY work with buyers under a written Brokerage Agreement.

2. You can fully serve and protect the buyer – ONLY when they become your client. This is the one that buyers who don’t want to be “locked in” to an agent don’t get (and many agents completely forget) – it’s all about agency relationships. In the absence of a Buyer Brokerage Agreement, you as the agent can not legally give the buyer the benefits of your expertise and knowledge, or protect them from mistakes, etc, because those services are reserved for “clients”. A buyer who is merely “working” with an agent without a Buyer Brokerage agreement is a customer – and the agent in that case is supposed to provide only ministerial acts – acts that require no judgment, expertise, or industry knowledge – to do otherwise can set the agent up for a lawsuit by the buyer and various other parties (the seller) if something goes wrong. It is in the buyer’s best interests to be represented as a client and never left to fend for themselves as a customer. Agents who work with buyers without representing them risk becoming an “undisclosed dual agent” without realizing it – in most states that can get them into serious trouble with the real estate commission.

While buyers may not know anything about agency, or how to protect themselves in a transaction, or what duties agents owe them when they are a client versus a customer – we as agents and brokers are responsible for fully informing them about agency and their choices of service levels (before we ever work with them) so they know the ramifications of their choice of being a client versus merely a customer.

In the rare cases where I run into buyers who are leery of Exclusive Buyer Brokerage Agreements (usually first-time buyers or buyers who had a horrible agent in the past), I make sure they fully understand the above – I have only had one buyer in ten years not sign a Buyer Brokerage Agreement when they fully understood that it was in their best interest to do so. (Some people need to be saved from themselves!)

I have offered a 1-2 day Brokerage Agreement to a few buyers which is a “try it before you buy it” approach that works well. It allows you to protect yourself, and provide top level representation to your client, and they see how you work and then are comfortable signing a longer term agreement.

I also explain to buyers who seem nervous about “committing” to an agent – “any agent who is willing to work with you without a Brokerage Agreement is not only agreeing to do less than a great job for you, but refusing to protect ‘their own commission and livelihood’, so what in the world makes you think such an agent will protect YOUR interests and money in a transaction if they won’t even protect their own interests?”

I refused to help the buyer who refused to sign my agreement, explaining that it would be a disservice to him. His wife was furious with him and apologized to me, but I will never make an exception to this practice. Its just good business – I am supposed to be the expert – I don’t let my prospects or clients dictate how I run my business.

What do you think?