April 26, 2022

Leveraging Money Is The Key To Investing In Real Estate

The biggest problem I see when selling investment properties are Agents and Owners who price their properties so high that it is no longer a good investment.  I recently talked to an owner who had a property listed for $500,000 FSBO and he truly believed that if someone came in and bought the home ALL CASH it would cashflow every month.  Well yeah... they paid cash!  But, why would they do that unless it was an amazing return on investment?  

See, leveraging money is the key to investing.  If I had an investor with $500,000 cash, I wouldn't advise them to sink all their dough in one property when they could buy two million dollar properties with 25% down and favorable financing.  Plus, there is a good chance that the million dollar property cash flows better, has more units to rent and is in better condition.  

Last but no least, ignore the agents cap rate.  I have yet to run into an Agents cap rate that made any sense or was accurate.  Most use fluffy numbers or POTENTIAL income in their rates and thats completely useless.  If there was potential, why didn't the current owner implement it for their own benefit?  

Want to be successful as a real estate investor?  Leverage your money.  

 

Posted in Real Estate Info
April 21, 2022

Should Your City Put A Moratorium On Institutional Home Buyers?

Prices are up and buyers are getting priced out of the market.  If we continue to ignore this major problem the only ones who will be able to afford a home will be Institutional Buyers and Investors with deep pockets.

I will admit, many of our home sales in the last few years have been to Institutional Buyers and Investors and its dramatically increased from 2019.  I'm all for capitalism and good healthy competition, but, this problem has been created by good ole Uncle Sam under the disguise of capitalism and the dream of home ownership has set sail for many people in the US.  

At what point do local community leaders protect their citizens?  All you have to do is look at Vancouver or Hawaii to find out.  For years they allowed foreign investors and institutional buyers to purchase property and dry up all the local inventory to the point of pushing home prices from 100 thousand to MILLIONS today for the same property.  Yes, many of the locals sold and made a million bucks but ended up having to leave their lifelong city all together to find cheaper housing and standard of living.

The biggest concern is that locals in Hawaii and Vancouver have been priced out of their markets and can no longer afford a home there.  Do you want to be the next Vancouver or Hawaii?  If not, then start asking questions and talk to your leaders.  

 

Canada finally bans foreign buyers...  Better late than never I guess. 

https://www.azfamily.com/2022/04/18/canada-bans-foreign-home-buyers-two-years-cool-market/

Vancouver Real Speak

https://www.nytimes.com/2018/06/02/business/economy/vancouver-housing.html

Posted in Real Estate Info
April 21, 2022

Are We Back To Stupid Offers On Houses??

2021 craziness is back in 2022 so be prepared as a buyer for the wild ride.  House offers 10, 20, 30,000 or more above asking are being seen, once again, pushing real estate values higher than many buyers can afford.  What can you do?

  • Work with a Realtor that knows how to write strong offers and knows the market.
  • Think about waving home inspections and bring a contractor with you instead that can point out any visual issues. (I'm not a big fan of waving HI's but people are doing it)
  • Can you come up with a higher deposit or down-payment?
  • Think about looking in Not-So-Busy area's for a home.  Sometimes going a bit further out in the hillside can make a difference in some communities. aka.. be willing to commute.
  • Can you borrow from your 401k to pay cash and then refinance the home to put it back in?
  • Are you willing to pay over appraised value?  If so, you'll need cash to do it.  Do you have it?
  • Can you get qualified for a conventional loan instead of FHA or VA.  Both of those loans are at a disadvantage in this market.

If you must have a home you will be asked or forced(by other offers) to make offers you normally would not.  Welcome to 2022.  

Mark Gilbo

NY Lic RE Broker

Posted in Real Estate Info
April 21, 2022

National Grid Upstate NY Rebates

Are you looking to upgrade your furnace, hotwater tank or thermometer?  National Grid rebates can save you up to $600 so take advantage of it at this link.... https://www.nationalgridus.com/pronet/ee-programs-solutions/residential-rebates-incentives

 

Mark Gilbo

NY Lic Broker

Gilbo Realty

Posted in Real Estate Info
March 25, 2022

Rising Mortgage Rates May Hurt Home Prices...

Historically, rising mortgages rates put pressure on home prices, which tend to lag behind rate changes.  The market has somewhat slowed over the last 3 months in many facets of Real Estate and rising rates may continue that trend.  Does it mean you should stop looking for a home?  No!  But, working with an Agent that does their homework is recommended.  

Listing your home may also be affected, so again, working with an Agent that does their homework is highly recommended.  Seeing trends in the market is imperative.  

Posted in Real Estate Info
March 25, 2022

Is Your Realtor Hurting Your Home Sale?

I have come across many tactics used by Realtors that will hurt your chances of selling your home.  Be aware of the following...

 

  1. THE LISTING AGENT MUST BE PRESENT AT ALL SHOWINGS!  For most properties this is just a ploy to deter other Agents from showing your property so they can get both sides of the commission (5-6% instead of half that).  Many Agents will either skip this listing or consider it to much of a hassle to show it to their client.  There is a company around us that does this routinely and their listings sit on the market many more times than others, mostly due to this policy.  I personally feel this practice should be banned by all MLS's since the point of the MLS is to create a FAIR environment among all members and their clients and I'm wondering how this fits in to that narrative.  
  2. NO OR BAD INTERIOR PHOTO'S - This happens more so than not.  Even you have seen bad photo's, grainy photo's or unorganized photos on a website that makes you go hmmm, right?
  3. NOT SHARING COMMISSION FAIRLY - One of our Agents sold a listed piece of land and we found out after the closing that the listing agent was taking 7% of the commission while paying our agent 3%.  Do you know your agent is doing this when you signed those listing documents???  This is one sure way to not only hurt the listing Agents reputation but also your sale.  This practice should also be banned by the MLS's who talk about open and fair disclosure, yet, continue to let the listing Agents hide their commission splits without any disclosure of it.
  4. PUTTING A TIME LIMIT ON SHOWING A BUSY HOME - Recently the Syracuse Association of Realtors stopped the practice of changing time limits on listings.  Last year, when it was crazy, we'd be told all offers must be in at 6pm Monday, only to have the listing agent call us to say its changed to Sunday at 1pm.  That's great, but my showing is scheduled for Monday at noon!!!!  If your Agent wants to limit your home showing time, put at least a 5 day or 10 day period for people to get in and see it.  We do this for some bank properties we list and we ALWAYS get a higher price for the property.

These are just a few I've noted over the last year of craziness so I hope you take note of them as a seller!

Posted in Real Estate Info
Oct. 29, 2020

Realtors - Why Gilbo Realty

Posted in Real Estate Info
May 14, 2020

Covid 19 New Reality

With Covid19 making its way through the world, businesses are faced with a cope or die mentality.  As a Real Estate Company, we are constantly making plans for the future and one of those new plans is how do we deal with disruptions such as a Covid Virus, natural catastrophes or other world wide events that effect everyone.  

Covid19 is going to force many industries to change, including our own.  If there isn't a real estate company out there not thinking about how to become better prepared for the future, they will not be around.  One thing that Covid19 has showed me is how irrelevant an office space is becoming to our business today.  People are looking for simplicity at a good price, period!

Real Estate Brokers have always believed that office space in the community is essential to their business.  What they have failed to realize is that its not the office thats important, but your agents within the community and how they interact with it.  Having good Agents working and communicating with local buyers and sellers is the key.  

The future won't be Zillow, Franchises, Trulia, Realtor.com, but good local Agents working the for best interest of their clients and community.  

 

Posted in Real Estate Info
May 7, 2020

Will Covid19 Ruin The Real Estate Market

Shelter in place!  Essential, Not Essential!  

As I sit in my home office, i'm still receiving phone calls on my listings and I'm still doing what needs to be done to make a living.  Covid19 has shocked the world with its ability to spread undetected and I don't believe even the Governments know if and when this will disappear.  One this is for sure, your health and safety is the most important thing in the world.

I will say normal home sales have slowed quite a bit with only 410 closings in April, down almost 20%.  The scary part is how far the Pending Sales have dropped, down over 50% since NY enacted shutdowns.  It will take many many months to get that number going again and it will only happen when the people feel COMFORTABLE enough to go out in public knowing they or their family won't get sick.  

Many people are calling for President Trump or Gov. Cuomo to reopen business and I'm on the fence either way.  I'm afraid if we open it back up, we'll spread this lung disease even further and faster.  Then again, I'm afraid people will lose everything if they don't have a source of income to buy food and feed their families.  I would prefer to see the businesses stay closed and have the States and the Federal Government provide a minimum wage to every household until this is over.  Drastic times call for drastic actions right?? 

The faster we can eradicate this virus from our daily lives the faster things will get back to normal.  I'm afraid opening things up will do the exact opposite.  Lets hope for the best and be kind to each other in this time of stress.  Take care. 

Mark Gilbo

NY Lic RE Broker

Gilbo Realty 

Posted in Real Estate Info