Everybody in real estate knows about the prime real estate market, which tend to include the upper priced to luxury priced homes of the market. Then you have modest homes in the working to middle class neighborhoods. But what happens to the worst homes in the worst areas that the banks get stuck with thru foreclosure. These are the homes nobody bids on, often in high crime areas. How do banks get rid of these homes that nobody wants to bid on? They call Odell Barnes!Odell Barnes buys these homes that are spread out all over the country, for anywhere from 20 cents to 10 cents on the dollar from the banks, without ever looking at the properties. As a matter of fact, he never has to leave his farm near Columbia S.C.. The banks call him at his house, and most deals are made over the phone w... 09/14/2007

From all the articles and expert opinions I have been seeing and hearing, it looks like the worst is yet to come in real estate market in the way of foreclosures. The number of houses on the market  because of repo's will be somewhat higher as the numbers get worse for the mortgage industry. At present, the jobs market is not looking as rosy as many thought it would. You add that to the housing slump and the credit crunch and the dreaded R word (recession) is suddenly a possibility.All is not doom and gloom however, a lot of money can be made in a poor market. whether you are talking about stocks or houses, 1 man's default is another man's treasure. Not only will it be wide open on great deals for lower priced foreclosures, there will be a better than normal pool of renters to fill them... 09/08/2007

One avenue that tends to be overlooked by home investors is offering a rent to own option to their tenents.  There are plenty of lease option buyers, even in a slow market. It's a win-win situation for both investor and resident alike. Once the renters lock in a sales price that the investor has offered, the investor simply can't lose. The owner gets a bigger revenue stream of rent, and his house gets sold at a profit.  If the sale does not happen, the owner keeps the extra money. If the renters exercise the option to buy, they buy the house under circumstances more favorable to them (by having a down payment saved up). Another interesting way to look at properties when considering a purchase to hold for investment purposes, is to look at the land as the appreciating part of the package... 09/08/2007

Are you looking for privacy? Do you want enough land for horses? Do you enjoy listening to the birds when you get up in the mornings? If you answered, “Yes,” to any of these questions then Rocky Creek Farms is PERFECT for you! Rocky Creek Farms is a 6 lot, 20 acre private subdivision located in the heart of Cabarrus County. 6 wooded lots ranging from 1-6 acres. There are 3 homes already built and 3 lots waiting for your vision! Entering Rocky Creek Feels like you are entering a mountain retreat. Lush trees and ferns offer a serene and private setting. As you enter, Lot 1, on the right, has already been sold. Lot 2, on the right, offers 2.83 acres of wooded wonderment. The rear of the property follows a creek called the Jones Branch. This lot offers a wonderful opportunity for a horse p... 09/05/2007

Traditionally, the credit score of 620 is where prime mortgage rates end, and sub prime rates begin. While this can vary from bank to bank, that's kind of the rule of thumb. It looks like with what's happening in the current credit crunch, that dividing line has gone (or is going) to about 680.  From a Realtors point of view, this makes getting a buyer preapproved more important than ever. From an investor's point of view, this tight market will probably make or break a lot of good deals out there. As a matter of fact, some lenders are shying away from making loans on second homes, investment properties, commercial loans, even borrowers who have decent credit. Some loans that were preapproved are now being rescinded before the loan happens. All this makes for a very slippery playing fie... 08/18/2007

 With all the news today about how tight future mortgage lending is going to be, and how borrowers with less than perfect credit will find it difficult to impossible to get a mortgage; an interesting sidenote to this story is starting to emerge. Being somewhat over a barrel, banks are more and more likely to accept some options than they would have in years past, in order to avoid a foreclosure. I've read articles recently that banks are more likely to replace a possible defaulting party on a loan with another party who proves to be credit worthy. Banks are desperate to avoid any more foreclosures, which could mean that the ever growing glut of foreclosed properties may be had for less than in the fairly recent past.As is usual, one person's loss is another person's gain. If anyone out ... 08/11/2007

While surfing the web I came across a great resource for Cabarrus County North Carolina information.  The Independent Tribune published a "Guide to Cabarrus County" and has made it available on the internet as well.  It contains Cabarrus County history as well as information about Government, Schools, Shopping, Attractions, Utilities and much more.  Check it out by clicking the Picture/Link below.  08/11/2007

Cabarrus County is a growing community located North of Charlotte, North Carolina.  It encompasses the cities and towns of Concord, Harrisburg, Kannapolis,  Midland and Mount Pleasant.  Cabarrus County is known for its quality public school system and low property taxes.  It is home to the #1 tourist destination in the state, Concord Mills Mall, as well as Lowes Motor Speedway and Reed Gold Mine. HISTORYCabarrus County occupies a triangular section of North Carolina's southwest piedmont. Settlement of this area began in the mid-eighteenth century. Early settlers were predominantly Scotch-Irish and Germans. A small group of Welsh-English families were also among the earliest settlers. Before coming to North Carolina, these groups had settled in southeast Pennsylvania, Maryland and Virgin... 08/10/2007

As I'm sure everyone in the Real Estate industry is aware of by now, mortgage loans for credit challenged customers are going to affect our business plans. As a Realtor, this is going to reduce the number of potential clients I am going to be able to assist in closing on a house sale. But this could also affect the real estate investor, either positively or negatively.On the one hand, if you flip houses, the low income customers you may be used to selling to may no longer be able to get a loan thru the subprime market. One possible solution to this problem ( if you have the means) is to finance them yourselves. You take back a first mortgage on the property and realize a nice return on the investment. Obviously you hold the house as colateral.On the other hand, if you rehab houses and r... 08/07/2007

It always amazes me how the news shows and reporters make out how easy it is to sell your home yourself and save all that money that your not paying out in sales commissions. Granted, I am a Realtor so I expect a certain amount of scepticism from the public because I do have a dog in the fight. But to be fair, I do talk to a lot of potential customers who are considering doing it themselves and they don't even know the basics of what it takes to show their house, let alone get the deal closed.Almost none of the homeowners know that they are required by law (in North Carolina) to have a property disclosure form to give prospective buyers. I'll wager that any commision they might save will be less than what they will lose in a lawsuit if they do not disclose a defect of the property that ... 07/14/2007

 One aspect I have not touched on in this blog lately is financing. For the more seasoned and experienced investors of foreclosures, a lot of the time they can buy with cash. That also makes them more attractive to the banks who are trying to unload these homes as fast as possible. But what about the small time investor just getting in to the business, can they even get financing for investment properties. Yes they can, but maybe not with a conventional mortgage. There are banks who won't lend if the house does not have a working stove, or is missing floor coverings, or if a window is broken, or if the hvac unit is not operating. I have had some clients miss out on some great deals because of these kind of hangups that were not anticipated. One great source of credit for homes that don'... 07/13/2007

Cabarrus County school and county officials are again trying to find solutions to deal with the seemingly never ending problem of school overcrowding, caused by rampant growth in the Cabarrus County population.  According to US Census Bureau information, Cabarrus County experienced nearly 6% population growth from 2005 to 2006 (147,939 2005 population to 156,395 2006 population) with continued growth expected. Currently there are 28 schools (23,838 students) in the Cabarrus County School system, 16 elementary schools, 6 middle schools and 5 high schools.  Two new elementary schools, one replacement elementary replacement school and one high school are scheduled to open in August 2007.   The worst overcrowding currently is at C.C. Griffin Middle School, which is now at 120 percent capaci... 07/09/2007

I saw an article recently about a homeowner attempting to remodel her own bathroom. She had tackled other smaller tasks around the house but very much over estimated her ability to take on a project of this magnitude. By the time a plumber had corrected the problems, her budget for the project was shot. I think as people see the realty shows on tv and get the idea how easy it is to flip a house, this kind of gross over estimation happens more than you think. I Have an investor customer who buys foreclosures in poorer neighborhoods, does slight renovations, and rents them out. He is very handy but he knows his limits, he draws the line at electrical and plumbing. I think it's important to know what you are qualified to do before you make an offer on a property. It is not fun to realize a... 07/07/2007

Here we GROW again!  The City of Concord wants to annex the future site of a new high school on Cox Mill Road and on Thursday June 28, 2007 Cabarrus County School Board members approved the voluntary annexation process. The future high school is scheduled to open in fall 2009 to relieve overcrowding at Northwest Cabarrus High School.  However, the opening could be delayed because the city won't issue construction permits until the annexation is complete and the school adheres to the city's building requirements. For the benefit of the kids, let's hope that the Board of Education can cut through the city's red tape and get the new school ready to open ASAP. CLICK HERE to read the Independent Tribune article, "City annexation may affect school's opening" 07/01/2007

In a followup to a previous post about whether one should flip a house after the rehap, or rent it out, there were a few great comments from fellow bloggers. One fellow realtor from Charlotte addressed the fact that some neighborhoods may be in a price range such that renting is not as likely a senario. That's absolutely true! If you are buying a property in a higher price neighborhood, the average person coming to that area is much more likely to be in the buying frame of mind (and to have the resourses to do it), than to want or need to rent shelter. Converesly, lower and middle income neighborhoods would be more likely rental markets. Also, while it is a good rule of thumb that you want to spend the least amount of money on the rehab of a house in order to reap the highest profit, yo... 06/29/2007

  Sunday July 1, 2007 the merger between Northeast Medical Center and Carolinas HealthCare System will be complete.  At   that time, Northeast Medical Center will take a new name, Carolinas Medical Center-NorthEast (CMC-NorthEast).  Residents of Concord and the surrounding areas are fortunate to have such an outstanding hospital in our community.  NorthEast Medical Center is a Magnet hospital, which places them in the top one percent of all healthcare facilities for nursing and patient care. Those of us who drive by the hospital on a daily basis have undoubtedly noticed the ongoing new construction and expansion of the facility.  The improvements show no sign of stopping after the merger...Carolinas HealthCare System plans to invest $600 million in Northeast Medical Center once the merg... 06/28/2007

With the recent news that the nation's subprime lenders are going out of business because of skyrocketing foreclosure rates, this should create a great opportunity for investors looking for deals on distressed real estate. This should apply to all areas of the country to varying degrees. This could be the last big wave of this size for years to come. The reason for that is because after the shakeout of the mortgage industry, two things are likely to be the case. First, there will be only a handfull of companies doing subprime lending in the country, and the restrictions for what types of customers are qualified will be higher than they were in the past. This will result in less foreclosures and less opportunities to pick up distressed properties. With so many properties that will soon b... 06/27/2007

Concord's Philip Morris manufacturing plant will begin to phase out its 2500 workers, approximately one year from 6/26/2007.  The company plans to close the 2.4 million-square-foot facility in 2010 in a plan to consolidate manufacturing in Richmond VA and expand manufacturing in Europe.  These are good paying jobs with good benefits that will be difficult to replace.  The company plans to offer relocation to Richmond, early retirement or severance packages to their Concord employees. The facility sits on 2100 acres of prime real estate adjacent to Hwy 29 in Concord NC.  McCormick, a Philip Morris representative, said that the company plans to sell the property once the facility is closed.  However, no decisions have been made as to how it will be sold.  Local officials are hopeful that ... 06/27/2007

What a huge blow to the economy in and around Concord NC.  News broke this afternoon announcing that the Philip Morris plant in Concord NC, which manufactures cigarettes, will be closing by third quarter 2008.It's not that this is the only employer in the area-by far, it's not.  But it's a blow to the tax base to lose them as an employer-we're talking 2500 jobs, and all high wage ones at that. PM is planning to move some of the folks to the facilities in Richmond, so of course I'm glad to help sell those homes for those families who choose to relocate to Richmond VA.  But when the moves come at a loss to the community, I'm just a little sad.The plant has been a strong part of the economy for years-I mean, after all, you all grew up knowing of North Carolina as the stronghold of the toba... 06/26/2007

There are generally 2 kinds of investors when it comes to the foreclosure market. There are the types that are strictly flippers; they want to buy low - put minimal materials and labor into the house - then sell it and cash out. Then there are the landlords; they want to put about the same effort into the house as the first group - then hold on to the investment for the medium or long term while collecting rent to carry the property.Occasionally, I run into a third type of investor - The Hybrid. I label them this because they utilize both of the first 2 group's strategies. While being a landlord (or hiring a property manager) may not be everyone's cup of tea, I think this strategy in the long term yields the highest rate of return. The main reason for this is because as the economy goes... 06/26/2007