HUNTSVILLE MARKET CONTINUES TO GROW
Realtor.com. has released numbers of the top searched markets in AL and Huntsville along with other cities are making their way up the list. Huntsville ranked No. 143 among the most-searched real estate markets during May. Along with them were Metro Birmingham ranked at No. 105 and Mobile ranked at No. 108. While some big areas of AL such as Birmingham and Mobile are finding cash buyers & high priced luxury homes, it appears that Madison County is also seeing some increases slowly as well. With the tornadoes that hit the region we are seeing an increase in rentals right now while people rebuild. What is keeping the market growing though you wonder..
Well, lots of credit can go to the increase of residents from the BRAC moves. Read more on the apartment occupancies here.
Randall Griffin, the CEO of Corporate Offices Trust, states to all real estate investors after to talking to representatives in Washington, “Buy a lot in Huntsville!” He states that he bases his predictions on more military-related growth. He reports that the next round of BRAC-like actions is expected in 2015. As of March 23, 2011, more than 4,500 jobs have moved to Huntsville due to BRAC. It is estimated that by 2015, more than 20,000 jobs total will be moved to the Huntsville area through BRAC and BRAC-like actions. With these actions, the Von Braun Complex will add 800,000 sq. ft. to accommodate thousands more employees, the Redstone Arsenal is adding a 400,000 sq. ft. building for headquarters, NASA Marshall Space Flight Center is adding 1,841 acres on Redstone Arsenal, two hotels, numerous restaurants, grocery stores, and an amphitheater.
With the economy on the rise and more people moving in to the Huntsville area, the real estate market will be in high demand. “This year, Huntsville has already seen a 10% increase in the real estate market and proves to be on a more solid foundation,” says Van Wales, Operations Manager for Pearson Homes.
According to GoSection8.com, there are currently 146 tenant leads looking for various properties in the Madison County areas. According to the 2010 US Census Bureau, Alabama only has a 2.9% vacancy rate. The US Census Bureau also reports that Alabama has a 73.2% home ownership rate which is in the Top 10 in the nation.
Also, with the tornado victims in recovery and rebuilding many are looking for rental homes to be in now. Another good note is the sudden interested interest in a ‘safe room‘ in properties, especially in the areas hit the hardest from the tornados. A good note for any rehabbers out there . Adding a safe room could increase the value of the home, appeal to buyers in the area and help you to sell the property faster. Check out these articles on safe rooms :
Related articles
- RSM Profile: Wernher von Braun (real-southern.com)
- Boeing’s Huntsville plant re-opens seven days after multiple tornadoes (bizjournals.com)
Zack’s Tip of the Week… What to Avoid in Real Estate Investing
I hope you have been getting alot out of these email I have been sending you. I know they are short, but I write when I have good idea and think about something I just went through.
Keep your eyes open for more great tips from me. . . .
For beginners, real estate investing is never a walk in the park. It has a lot of risks. There are numerous companies that sell property investments for novices but the question would strike you with the trust that they impose. This is a beginner’s investment guide for one to realize the things that he or she needs to say “no” to and what should be regarded as false reassurances.
Tip 1 – Scout the area
Before investing in a property, you must first asses the area. Does it have every inch of it being desirable for a family, a couple or an individual to live in or is it what your investor is looking for? For beginners, you must first try to settle on the ones that’s “safe”. Ignore those that have risks attached to it. Stick to the properties with good reputation. Areas having good reputations will not cover any mortgage therefore looking for an area where figures do stack up is more appropriate. You have to be very careful with individuals and companies who indulge in selling properties that looks ancient or having lots of deserted houses or was known to be an area having illegal activities like drug trafficking and so on. These kinds of properties are fine but if you don’t have any kind of background yet, stick to the safest areas offered.
Tip 2 – Trust no one
Ask yourself this – do I have the money to afford the property of my choice? Commissions come in huge packages. Individuals or companies have ways of creatively getting your attention and dodging you into agreeing with their offer. Some of the truths are hidden lies that often make you think that you can afford a particular property where in fact, it will lead you to bankruptcy. If you think you can’t afford the property, don’t accept the offer. Turn it down. You will have a certain gut feeling about this, rest assured. Don’t be easily swept with seemingly wise words and sweet nothings. Follow your own pace. However, pushing yourself to achieving your goals will lead you in achieving learning and development.
Tip 3 – Ask
Don’t be afraid to pop out a question especially for those who are saying so much. If an agent or a certain individual offers you something, ask the person if he or she has invested in the property that he or she is offering. If they have, then, it proves that the property is and will be a good investment. But if they haven’t invested in anything that they claim, pop another question. Sometimes, what companies and agents offer will speak for themselves. Think, if what they offer are so fantastic, then why haven’t they invested on it? Until they have satisfied your questions, might as well turn down the offer.
Tip 4 – Be on your guard
There are a lot of people who will go into such lengths such as fooling other people for their benefit. You shouldn’t be fooled by what companies claim about property masters or gurus for these may lure you into believing nothing. In real estate investing, you have to always be on your guard to avoid certain decisions that can lead you into a predicament.
Following these simple tips will definitely guide you into having a more profitable and risk-free deal. These tips will give you a head start.
Until Next Time,
Zack Childress
Real Estate Coach
www.AutomatedRealEtateSystems.com
www.REISuccessCoaching.com
Foreclosures off 30% this year
By Zack Childress Real Estate Investor, Investing, Automated Real Estate Systems, Automated Wholesaling Systems
NEW YORK (CNNMoney) — On the surface, the foreclosure crisis seems to be easing. The number of foreclosure notices filed during the first three months of 2011 fell 27% compared with the first quarter of 2010, according to a report from RealtyTrac released Thursday.
Only 681,000 properties got hit with some type of filing — a notice of default, a scheduled auction or a foreclosure sale — during the quarter, one for every 191 households.
There were 215,046 borrowers who lost their homes, down 17% year-over-year.
That improvement was in sharp contrast to other recent housing market metrics, with sales of existing and new homes very weak and home prices still sliding.
“The nation’s housing market continued to languish in the first quarter, even as foreclosure activity fell to a three-year low,” said James Saccacio, RealtyTrac’s CEO.
The explanation for this contradiction is that the foreclosure improvement has been artificial, fueled by banks reacting to paperwork processing issues — the infamous “robo-signing” scandal — by cutting back on filings until they can clean up their procedures.
According to RealtyTrac spokesman Rick Sharga, without the cutback there would have been 900,000 filings during the quarter instead of 681,000. There would have been 280,000 to 300,000 bank repossessions instead of 215,000, he added.
Houses: What a million dollars buys
Fewer homes were repossessed even though banks are modifying fewer loans to make them more affordable. Hope Now, a coalition of servicers, community groups and mortgage investors working to stem foreclosures reported last week that its members had modified 87,000 loans in February compared with 110,000 in December 2010.
Hope Now’s director, Faith Schwartz, said fewer mods hardly means that the foreclosure crisis is clearing. “In the midst of all the disruptions, it’s difficult to pinpoint a trend,” she said.
The big positive that Schwartz cites is the significant month-over-month drops in both new foreclosures and in the number of borrowers who are 60 days or more late with payments. If fewer borrowers are entering the foreclosure process, fewer should eventually lose their homes.
On the other hand, said Schwartz, the severity of the delinquencies is increasing, with these borrowers falling 527 days past due, on average.
In New York and New Jersey, according to Sharga, it’s more than 800 days now between when a typical delinquent borrower first receives a notice of default to when the home goes to a sheriff’s sale.
“It’s likely that most of those are not making any mortgage payments” during that period, he said.
The drop in foreclosures is widespread. RealtyTrac reported that filings dropped in each of the 20 hardest-hit metro areas. Year-over-year declines reached as high as 59% in Cape Coral, Fla., for the quarter. Even in Las Vegas, ground zero for the mortgage meltdown over the past few years, filings fell 8%.
Nevada, Arizona and California continued to rank as the states with the highest foreclosure rates. They came in 1-2-3 both for the quarter and for the month of March. The Fourth Horseman of the Foreclosure Apocalypse, Florida, has dropped down in the standings, to eighth place for the quarter and ninth for the month.
Las Vegas is once again the highest ranked metro area in per-capita foreclosures. One of every 31 homes absorbed a filing during the quarter, about six times the national norm. Modesto, Calif. (one in 46), Stockton, Calif. (one in 47), Vallejo. Calif., and Phoenix (both one in 48) filled out the top five.
Real Estate investing tip…
“Well, real estate is always good, as far as I’m concerned. “-Donald Trump
Keeping with what Mr. Trump stated, real estate investing is one the pillars of wealth creation in the world today. The last time I looked at the Forbes list of 400 richest Americans, I could still count over 31 Real estate tycoons listed as billionaires.
In the same vein, you have individuals in your city and state who have made their fortune and hold their wealth in real estate investments; however, before you begin investing in properties you need to understand these critical success factors….
Clarity is important
How you start depends on what you want to achieve:
- Are you looking at wealth accumulation within a short time frame (3-7 years)?
- Are you investing for the Long term (retirement)?
- Do you want to be a Full-time investor and derive all your income from your real estate investments?
Develop critical success traits
The next thing that is important is you develop the success traits of a real estate investor.
Five main traits are important for success:
- Competency in your niche, this means you know about the basics of real estate, at the minimum. When you are good in the real estate niche you decide to invest.
- Control over your emotions. This is important if you are going to stay in the arena for the long haul because there will always be difficulties in the real estate market. The difference between a novice and a professional is the ability to ride the eye of the tiger without getting into the belly of the tiger. Being a real estate investor takes guts and you need to have them if you want to become wealthy.
- Comprehension. This means know your market cold. You understand who your customers are, what they are looking for, and why they want to deal with you. If you lack the key trait of insight into your market, you are doomed to fail
- Consistency. This means you have focus and discipline to take action daily and weekly until you accomplish your goals.
- Integrity. You stay true to your principles, because integrity is important in real estate. This means you are trustworthy to your bankers, investors, and tenants.
Knowing enough vs. Knowing it all
I think it’s important to have an understanding of real estate investing; however, you don’t need to know all about real estate investing to start. One thing that I think is important for an investor is to know enough about the basics. How to analyze properties, how to get financing, and how to assemble your real estate team. That is it.
Let’s recap how to succeed in real estate investing…
- You need to understand why you are investing in real estate.
- You need to develop critical traits for success as a real estate investor.
- You need to choose the right tactics to match your investing objectives.
- You need to know enough about what you want to achieve
This is how I have applied myself to real estate investing. Moreover, it has helped me transform my losses to wins. As a result, I have enjoyed positive cash flow from my properties.
By: Bryan Holmes
ZackChildress.Com Reborn!
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