Investment Property More Affordable than Ever

Look online today and see the market report that home prices ( nationally ) have hit post recession lows. These statistics are framed as a doom and gloom story that mass media thrives on, but when you read between the lines and look for the opportunity in your own back yard, you'll find good news.
As an Investor, this is the kind of news that makes you salivate. While everyone is running away from the fire, you're running toward it. In Chester, Delaware and Philly Counties, you can buy a distressed property at below market value that's in move in condition, rent it out, receive monthly cash flow, write off the interest and sell for profit in 36 months or less if you buy it right.
The only thing that this news tells me is that there is more opportunity to invest in real estate nationwide than there has been in years.

Christopher J. Edwards
484-319-0223

When to Walk Away : For Agents

I've just had a 14 month education with a client that I should be paying them for.
I'm normally not one for moral victories but that's all I can take away from this one because I definitely didn't make any money. It actually cost me potential thousands and I won't be getting any referrals.
In a nutshell, when dealing with a seller that's facing foreclosure, it's absolutely necessary that they be willing to do whatever it takes to get the home sold. They cannot be halfway committed. There are too many things that need to fall into place in order for a short sale to be successful and if you don't have a compliant seller then you are just wasting your time and it will cost you money with the time spent trying to convince them of reality.
So the take away from this is to make sure that you pre-qualify the seller thoroughly while making sure that they are willing to play ball and live up to their part. My advice is if you sense any hesitation from them or feel as though they are being disingenuous.. don't walk away.. RUN AWAY!!

Christopher J Edwards
484-319-0223

West Chester PA Rentals - Residential

I don't believe that renting is the great evil that many people say that it is. If you're not in a position to buy a home or your simply not ready for the responsibility, that's totally fine.
It is, however a great buyers market right now. But just because something is on sale that doesn't mean it's right for you to buy it. If that's the case for you then renting or maybe even renting to own isn't a bad choice if you plan it right.

1. Take a look at your budget: If you can pay your rent with one weeks' net income then your WAY ahead of the game. If you can't, don't let you rent exceed 30% of your net income and if it does.. get a roommate.

2. If you really like the property and could see yourself living there for an extended period of time, check and see if the landlord is open to a rent to own.
It works like this: A portion of your monthly rent goes toward your down payment in an escrow account. At the end of the lease you would get a mortgage and you would have already saved your down payment. This is good for people that don't have the cash or credit to get a home right now and in this market, I'm seeing more and more of these types of transactions.

At the end of the day, it's a lifestyle that you're choosing and that's completely up to you.

Christopher J. Edwards
Ph: 484-319-0223

Investment Property - West Chester, PA

Investment properties in West Chester are always in huge demand. Vacancy rates are typically lower than in other areas of the county. In large part because of the student body the occupies the town throughout the majority of the year.
If you have a student rental unit you may even have a waiting list of students that are looking to get into your property. In addition, West Chester property hasn't taken the hit that other areas of the county have.
Commercial properties nationwide been the least talked about during the recession but have taken the biggest hit out of any. However, if you want to do business in Chester County, having a central location in the borough isn't a bad thing. Commercial rents are higher in the borough whether it's warehouse or storefront.
Whether your looking for commercial or residential investment property, compared to the rest of the county, vacancy rate are lower, rent is higher. No brainer..

Christopher J. Edwards
484-319-0223

Short Sale - General

Knowing how to navigate through the maze that is the short sale process is key to having success. I feel that as an agent, it's best to have a team in place to deal with all of the different moving parts. This helps to increase effectiveness gets things done faster.
As emotional as an ordeal that this process is for the seller, the lender and the local court have no emotion about it whatsoever. The only thing that matters is what happens.. feelings don't matter at all.
All parties involved have a role to play and it's important that everyone fulfill that role as best they can in order to ensure closing. A willing seller, a capable agent with resources in place and a patient buyer are all needed to get it done.
Ultimately the bank has the final say but if everyone is working together toward the common goal of settlement then the best case possible will be presented to the bank. If that it being done you will have a high probability of success.

Christopher J. Edwards
Ph: 484-319-0223

Philadelphia Area Short Sales: Residential Real Estate

According to Trend MLS, there are 963 homes for sale in Chester, Delaware, and Philly Counties that are listed as Short Sales.

In March there were over 300 homes in that same are that were in Pre-Foreclosure status. ( At least 90 days behind on the mortgage ) Many of the homeowners will have no choice but to put their homes on the market and in many cases these homes will also be listed as Short Sales.

Since the beginning of the year there have been over 188 Short Sale listings in Trend MLS that have gone into the "expired" status ( meaning the listing agreement between the homeowner and the selling Agent has expired ) Many of these homes are either going to foreclosure, taken off of the market for whatever reason, picked up by another agent and re listed for sale, or the homeowner has just given up and walked away. There are many different things that could happen here.

Point being there are more than enough Short Sales to go around in this area. Investors are making up a large percentage of the purchase market because they see the long term value and return on investment

Media PA Real Estate: Residential

Approximately 172 residential properites for sale in Media Borough, Upper Providence and Middletown Twp priced from 0-999k (Stat provided by Trend MLS / Does not include FSBO's and other properties not listed in MLS )

Out of the 172 available, 12 are listed a "Fixer Uppers" or "Shells" and in many cases are some of the better values on the market.

8 of the 172 are listed as Short Sales.

Approximately 7 residential rental properties available in the same area ( In Trend MLS) ( not all available rental properties are listed in the MLS. If looking for a rental, drive the area of interest and also use craigslist )

West Chester PA Rentals

The school year is just about over and if you drive through town you'll see a good amount of students packing up and For Rent signs posted in windows. For me this is always an exciting time of year that is full of opportunity.
As an investor, this is a great time to speak with other local investors about their properties, ups, downs and what their future plans are. Some investors are tired of the hustle and some are looking to expand. I see a great opportunity to by student rentals because prices are low and the student rental market is always consistent and more or less predictable. Hiring a property manager is helpful so that I don't have to wake up at 3 in the morning because some drunken kid set the kitchen on fire.
( that really happened )
Some have the stomach for this.. some don't and that's just fine with me. But as long as West Chester has a University there will always be students and there will always be a need for student rentals.

Christopher J. Edwards
484-319-0223

Sales Increases in Local Markets

I just posted on a Facebook Group of mine some statistics on sales increases in local markets.
The reason I post things like that is so that people know the actual facts on the ground and not go off of national news stats, or what their brothers girlfriends cousins best friend said once.
When your buying, selling, renting or investing in Real Estate one of the main components of determining a fair price are the comps. ( comparable homes that have recently been sold in the area ) Many times comps are taken from a half mile radius of the property in question and based on completed sales within the last 90 days.
The old saying that all real estate is local is very true when pulling comps.

So the next time you see a report on the news that says home sales are still crap.. think about this article, do a little homework, or call someone like me to give you the real time stats for your area.

Christopher J. Edwards
Ph: 484-319-0223

Liar

It was easier for companies to bullshit consumers 5 years ago than it is today. Today, if I'm in a car dealership I can get on my phone and see the dealer cost of the car that I want to buy and tell the salesman that I want to pay no more than 500 over that cost or I'm leaving. And if he doesn't want to do the deal the dealer up the street will.
Most people just want to get to the point and are tired of being lied to by, salespeople, plumbers, electricians, politicians, Realtors, mechanics, car dealers, insurers, etc. Access to information and social media has changed everything and people have UNLIMITED options of who they choose to do business with.
So in this day in age how does someone that is in business actually have an effect and gain the trust of someone that they want to do business with? By actually giving a shit about what people want and focusing on having a genuine connection.
I'm not saying that you have to be best friends with everyone that you do business with, but it is absolutely important that you know what makes your customers tick and that you be honest with them. You can't withhold information, talk out both sides or your mouth, or speak in baby talk with hacky quips, snappy comments and fake smiles. That shit is old and people hate it. People want to know if you know what I want, do you have what I want and can you get the job done... NOW. Everything is right now. People don't have to wait for answers and they definitely don't have to wait for you.

Christopher Jordan Edwards
484-319-0223

Get Government Money for Real Estate

Here are some pieces of legislation that have an impact on the Real Estate Industry. Share this information with you clients, friends and neighbors and take advantage of the "Pro's" in these Acts!

2010 Tax Relief Bill
- Capital Gains Tax remains at 15%

- Payroll taxes for employees & self employed remain reduced for 2011

- Credits for energy efficient new homes, existing homes and building remain in place for 2011

Department of Housing & Urban Development
- $73 million in grants to be given to 500 National, Regional , & Local organizations

- $68 million in grants to be given to housing counseling services

Veteran Benefit Act
- Waive housing loan fees for certain Veterans with service connected disabilities called to active services

Small Business Jobs Act
- increases the amount of start up expenditures that entrepreneurs can deduct from taxes from 5,000 - 10,000

- Deductions of health insurance costs - 2 million self employed will get tax deduction this year

- Tax relief for cell phone deductions

Call me or message me for more information.

Christopher Jordan Edwards

Direct: 484-319-0223
FB: http://www.facebook.com/Keepitrealestate
Twitter: http://twitter.com/Keepitrilestate
Youtube: http://www.youtube.com/KeepItRealEstate1

Quit Your Job

The Bureau of Labor and Statistics October report shows that 2 million people quit their jobs which is up from 1.7 million from October 2009. The last time there was a spike like this was at the end of the "jobless economic recovery" in 2003.
This report suggests that the economy is improving because people wouldn't quit their job if they didn't think they could get a new one. I agree with this report and what it suggests but I also think there's more to it than that.
This week Yahoo Finance released an article that suggested more and more out of work young professionals and new college graduates are goin' Entrepreneur! Why not?!
With little at risk financially, no family of their own, and more government money and tax breaks available to start up a business then there has been in a generation (see www.sba.gov ),now is a perfect time to own your own business. Because with ownership comes freedom.
Today's housing market mirrors the jobs market in that they are both on the upswing and all major indicators suggest that.
If you're fortunate enough to have a consistent income and your credit score is above 580 then you can take your pick in this housing market. It's like walking into a dollar store with 100 bucks in your pocket because it's a buyers market right now. You can get a 30 year mortgage at under 5% and buy a home tens of thousands of dollars less than what it would have sold for in 2003. It's a win win and with ownership comes freedom.
I think we will see a huge number of start up businesses in the next 3-5yrs and I also see the trend on home ownership continuing to grow amongst young people. People don't want to lives the same lives that there parents did and why should they? The days of working a job for 40 yrs and collecting a pension and a gold watch and riding off into the sunset are OVER. But this principle has stood the test of time; With Ownership comes Freedom

Christopher Jordan Edwards

Direct: 484-319-0223
FB: http://www.facebook.com/Keepitrealestate
Twitter: http://twitter.com/Keepitrilestate
Youtube: http://www.youtube.com/KeepItRealEstate1

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It's a New World of Real Estate

Our society is changing and so is the way that we live our lives and the way that we do business.
We're progressing through the worst economic downfall since the 30's and it's left many of us out of a job or a home. Some of us haven't experienced that level of disaster over the last fews years but ALL of us have been forced to look in the mirror in one way or another.
The fact of the matter is that we ARE revcovering and whether or not you agree with the policies is beside that point. Our society, culture and the face of America is changing as well and there's no stopping it.
The question is, are we accepting the change or are we resisting it. Some things will never be the same, but that isn't neccessarily a bad thing. The way that we've done business before in that past may not bring us the same results that we need today and in the future. This is clearly the case for the Real Estate business.
But with an open mind and proper guidance we can take advantage of this unique period of time and experience success and a quality of life that we may not have known possible.

Claim what's Yours

Chris Edwards
Realtor
484-319-0223

WELCOME!!

Thanks for following my blog!
I aim to provide valid and usable information about Real Estate and not a bunch of useless nonscence that you can find on any random webiste.
There are a TON of Real Estate info sites but many of them leave you with more questions than answers. Here I try to get right to the point and provide you with information and instruction that you can apply to your life or business TODAY!
Take a look at some of my previous posts and look out for new posts on a monthly basis.

If you ever have any questions on anything related to Real Estate please call
call me. Social Media is great but personal contact is always better!

Chris

Direct: 484-319-0223
Email: chris.edwards@century21.com
Facebook: www.facebook.com/Keepitrealestate

"What's the Market Doing?"

I hear this question on a daily basis and the most honest answer is.. it depends on whether your buying, selling, investing or renting. It also depends on WHERE you're doing any of these things.
To those of you on my mailing list I'm going to send out quarterly market reports on your area. In the meantime, I thought I'd give a statistical answer to the question. These figures are coming from TREND MLS and compare specific counties ( Berks, Bucks, Burlington, Camden, Chester, Delaware, Gloucester, Kent, Mercer, Montgomery, New Castle, Phila, Salem )

Despite the increased sales, average prices remained the same when comparing numbers from May 2010 to May 2009. Overall, prices increased in only four counties. Bucks County, PA had the highest increase at 5.6 percent, while Salem County had the largest decrease at 13.9 percent.

Six counties saw higher median prices. Bucks County led the way at 5.2 percent, while Delaware County, PA had the largest decrease at 10.2 percent.

Email me if you would like regular updates on your area!

Chris Edwards
Realtor
Cell: 484-319-0223
Email: chris.edwards@century21.com

Facing Foreclosure

When people go to the settlement table, they don't ever think that they're going to lose the home that they just purchased. It takes most people years to put themselves in a position to buy a home and the road is an emotional one.

In the beginning, many start by setting a budget; Cutting back on nights out, shutting off the cable, shopping at discount stores, picking up a second job, getting help from relatives and the list goes on and on. Adjusting to that lifestyle can be a struggle initially, but if the desire to reach the goal is strong enough than to many, it's worth the sacrifice. In the end what keeps many people going? Hope.

So the years of saving go by and they're finally ready. They find a lender and get a pre-approval and they start looking at houses. All the while telling they're friends and family about it, they're excited and they can really see themselves in a house! Maybe even with a family, or maybe with a solid investment for their financial future. The hopes and possibilities are limitless.

Settlement day comes and goes and they're handed the keys. A surreal experience. Looking back it may have been a long road with some struggle, but they did it and the satisfaction they feel in unparalleled to anything they've ever experienced. A dream come true, a mere hope turned into a reality.


Life throws everyone curve balls and many of those curve balls we're simply not ready for. Some of the top reasons that people go begin to miss mortgage payments are, death of a primary owner, loss of job, bankruptcy, and long term illness causing high medical costs. When people are hit with a death in the family, or they lose a job or someone gets sick he shock wave of that incident alone can cause chaos in a home. But when the late notices start coming from the mortgage company, many people push them to the side hoping that things will turn around and they'll be able to get caught up. Time goes by and the notice increase and chances of recovery get smaller.

Turn back the clock to the time when they were pinching pennies
and spending Friday nights at home. Working 12 hour days with 2
jobs and begging family members for some additional down money.
On top of that, maybe they've started that family they dreamed of
and there are children involved. Or maybe they've built a business
around the cash flow that this property brings. It a VERY emotional
situation. .

People work so hard for so long to buy and maintain a home that they can be completely unwilling to accept the facts of the matter. It's completely understandable and a natural thought process to fight for and preserve their home. But the foreclosure process is a beast and is completely unemotional. The only thing the bank wants is it's money and your unwilling or unable to pay then the house WILL be sold at a Sheriff's Sale. That's the reality.

When I sit down with a family that's facing a foreclosure the first question I ask them is " what is your plan A and what is your plan B? " Most people that I have dealt with don't have either so I explain to them exactly what all of their options are given their specific situation. It is absolutely crucial that a family facing foreclosure be willing to accept the situation that they're in, no matter how difficult it is. Once they're accepted the problem then they can start taking action toward the solution.

After all of the options have been laid out and a family has made a decision on what's best for them, they must take rigorousaction to avoid foreclosure.

Selling a house that's facing foreclosure is a very specific matter. The house will not be marketed like a "normal" listing primarily because there are time constraints and the house may even be worth less than what is owed.

When a family has opted to sell the house, it's crucial that they be willing to do whatever it takes within their ability to get the home sold. The task at hand is to utilize every recourse available to market and promote the home and get a written offer to purchase prior to the sheriff sale date.

This may seem like the best case in a worst case scenario and in many ways it is. The alternative for many families that don't take action is to literally get thrown out by the local sheriff. It happens everyday. However, it doesn't have to end up like that if a family is accepting of their situation and informed of their options and take immediate action as soon as the first notice comes in the mail.


Chris Edwards
Realtor
610-692-6600 x 319
chris.edwards@century21.com
http://www.facebook.com/Keepitrealestate

College Real Estate

When I was a kid my Dad bought 2 investment properties in West Chester, PA just off of the college campus. At that time West Chester University didn't have nearly the enrollment that it has now but there was always a demand for off campus housing for students. The properties needed a bit of work so each week we would go out there and get them ready for the upcoming rental season. Long story short, 21 years later, he still has the properties and they have more than doubled in value and he still rents them out every year with no problem at all. In fact, with the increase in student enrollment at the school he can afford to be a lot more picky with who he rents to.

If you buy a property correctly in a college town it can be a cash register for you for a VERY VERY long time. Here are a couple things that you may want to consider while you're doing your research.

1. You make your money when you BUY the property.
The profit is in the numbers. If your looking to have cash flow each month than
you need to make sure that your PITI ( pricinple interest taxes insurance ) and
other operating expences are going to be covered by the monthly rent that you
receive from your tenants. Many people love the idea of being a landlord and
getting monthly checks in the mail, but they operate on idealistic numbers and
when they have trouble finding a tenant they're in big trouble. If you want to
more about the Math, email me and I will send you a very comprehensive
worksheet that will help you to calculate monthly costs vs profit. It's not
rocket science.

2. Research the area.
College towns are different than other areas because the activity is seasonal.
If the town that you live in is rural than it may be a safe bet that your
property won't be rented during the summer months. This needs to be taken into
consideration when you calculate your monthly rent. Many leases in college towns
run from August to June or from semester to semester. A quick stop into your the
local Housing Authority or the University's Housing Department and you can get
an idea of common student lease terms and renatal prices. You will also want
to see if there are any Real Estate Investors Groups in the area. Many of the
poeple in these groups are seasoned investors and can save you some time, money
and frustration if you simply ask for some guidance.

3. Property Maintenance
You DEFINITELY want to allow a larger than normal budget for this. Unless you
choose to use a property management company that will charge you a monthly fee.
In that case you'll still have to budget for it but it any upkeep won't
neccessarily be your headache. You can secure your investment by making VERY CLEAR
terms in your lease as to what the tenant will need to do in order to get their
security deposit back. It's pretty common practice to ask for 1st months rent and
a security deposit equal to the monthly rent up front. The more money that you get
upfront the better whe dealing with student rentals.

These are just a few things that you want to consider before you sign on the dotted line. But, if you're curious about buying an investment property in a college town or anywhere else gimme a call and I can help you break down some math.

Keep It Real Estate

Chris Edwards
Realtor
Cell: 484-947-6023
Email: chris.edwards@century21.com

Gettin' Goin'

If you have determined that this IS the time for you to make a move, here are a couple of things that you'll need to have squared away first.

1. Credit Check
If you haven't pulled your own credit that you should. Moving forward it's a good idea to check it about every 4 months or so. Mistakes are common and the could be effecting your scores. But you can get them rectified if your aware of them and you take action.
I reccommend using www.transunion.com . It costs a few dollars but you will get all 3of your scores from the bureaus (Equifax, Transunion, Experian ) and you'll see what the lenders see. If there are mistakes, you'll have the contact information of the creditor and you'll be able to dispute the discrepancy.
Many mortgage brokers/ lenders will tell you that the minimum score that you'll need for an FHA loan approval is a 620 average w/ some exceptions.

2. Cash Rules Everything Around ME

That's right, you're going to need some cash available. If your going for a FHA loan you can get away with as little 3% while the seller will assist you with the balance of costs. Conventional loans will require that you come up with a bit more.
Although cable news may have you believing that there are no other options than an FHA or conventional loan, that's just simply not true. There are other programs available, lenders aren't as liberal with the terms and conditions of these loans as they use to be because of new regulations, loss of revenue, and the overall collapse of our nations financial stucture as we know it. If you don't have any money but you have a family member that is still enabling you, ask them for a gift. Just make sure that the money is in your account prior to getting your pre-approval. Otherwise you'll have the lender asking questions as to where this additional 10k came from. It could ruin your settlement.

3. Pre-Approval

This is where the rubber meets the road. Go to your bank or Mortgage Broker/ Lender and tell them that you need to get a pre-approval.
This will tell you how much house you can buy and until you get a pre approval letter, your really just shooting from the hip. You don't want to go looking at houses and getting excited only to find out that your looking at things that your not qualified to buy. That can take the wind out of your sail. Instead, you want to get the pre-apporval so you'll know that ABC bank will give you mortgage for $ XXX,XXX dollars.

4. Call Me 484-947-6023

So, credit is good - check
Got cash - check
Pre-Approval Letter - check

Let's go look at some houses.

If your a little hesitant to do these things on your own, that's fine too. No agent is gonna tell you to go away until you have a pre-approval letter. If you need a little more attention than just call an agent and they can walk you through the process from beginning to end. You'll learn a lot as you walk through the process.

Keep It Real Estate

Chris Edwards
Realtor/Investor
chris.edwards@century21.com
484-947-6023

FIrst Things First

So you've heard about the $8000 tax credit. Maybe you have some friends that are buying or talking about it. You're parents might even be on your case about it. You have a decent job with a steady income and a some cash in the bank. Real Estate Agents are telling you to buy now so that you qualify for the tax credit. Mortgage brokers are telling you to get pre approved and see what you qualify for. You think that buying a house is the next "sensible" thing for you to do in life. But, you're not so sure it's time. Soooo... what do you do?

My opinion for those that are in this situation, is that it's really a matter a personal preference. It's a lifestyle choice that you're making when your buying a home and you intend to live in it. So for those that are a little confused about it, I would suggest starting by asking yourself, "what kind of lifestyle do I want to live now and in the next 3- 5 years?". Every situation is different.

There are a thousand different reasons why you should buy now and for some people there a plenty of reasons why they shouldn't. I never want to push anyone into buying a house if they're not convinced that it's the right thing for them to do.

Just because you CAN buy something doesn't mean that it right for YOU. Just because something is on sale doesn't mean that you NEED to buy it. AND just because you can buy it, doesn't mean that you can AFFORD it.

It's most important that you're doing what's right for you and you're future and not what other people and/or society are telling you to do.

Here are a few things that you may want to think about:



1. Am I happy with my current living situation?



2. Am I happy with my current lifestyle.



3. Can I support myself and maintain a household? ( job security/ income / savings)



4. Will owning a home take away any of my personal freedom?



5. Would buying my first home be for a short period of time or long term?



6. Would I even qualify to buy a home?



As I mentioned before, these are all very personal questions that only you can answer for yourself. One of the biggest concerns that people have is that if they buy a home will they be able to continue to do the things that they enjoy now after they sign an agreement. I would say that if you don't think that buying a house is going to enhance your quality of life, than maybe it's not time yet. Some people don't mind putting all of their money into their house, other people need a little bit more room to be able to take vacations, go out on the weekends, etc. The fact of the matter is that things will change after you buy a house but it doesn't mean that you won't be able to buy a pizza on Friday night just because you own a home. This is where an honest appraisal of your net income is important.

In summary, if your confused, take a step back and ask yourself some real important personal lifestyle questions. Take a look at your finances and then get an idea of what you're comfortable with spending on a monthly basis. I would suggest looking at your net income, not your gross. Once you know what you're comfortable spending on a monthly basis, then maybe you want to go ahead and pull your own credit report and see what all 3 scores are. Knowing what you can afford and what your credit looks like puts you in the drivers seat. That will help you eliminate doubt and give you confidence in your financial situation and make the process less overwhelming. That's an ideal place to be.

Keep It Real Estate

Chris Edwards
Realtor
Century 21 Absolute Realty