NorthEast Georgia's Premier Real Estate Resource from The Classic City to Lake Hartwell

Act Now to Take Advantage of the National Tax Rebate and Avoid Paying Rent Throughout Your College Student's Education

According to the Office of Student Financial Aid at the University of Georgia, average room and board expenses in Athens total $615 per bedroom / per month – 12 full months per year.   Meaning, rental houses in Athens easily pay for themselves while continuing to hold or increase their value throughout the entire period of ownership.  This is why I have always recommended putting investment money in rental houses in Athens, Georgia.

The intelligence of these investments applies particularly to parents of college students because of the vast savings afforded by purchasing rather than renting in a college town (an area where I have more than a little bit of experience)!

My parents helped me to purchase my first Athens rental property while I was in college at UGA.  The rent paid by my roommates covered the mortgage payment, escrow payment, and my portion of the utilities throughout my entire time in college.  Once out of college, I moved out, and used the additional rent to supplement my income while I settled into my career.  Then, I sold the property for a $35,000 profit over purchase price and used that money to pay for the down payment on my first home with my husband (and new car!).  

By being smart investors, my parents made a one time cash investment of $7,000 and avoided paying rent or utilities for my entire time in Athens – an average savings of $7,300 per year.  Eventually, they also received their cash investment back, AND their intelligent investment provided me a nest egg to promote a strong start to my future without having to get into debt over my head or ask them for financial assistance. 

In addition to the obvious savings my parents enjoyed, and the nice start in life afforded to me by their investment, home ownership allows your young adult to build crucial positive credit while helping them learn responsibilities of home ownership. 

If you have a son or daughter in college, I highly recommend looking into purchasing a property in the area.  And, do it NOW to make another $9,800 that is only available for purchases by December 1st.  Even if you lend the downpayment money to your college student - as long as they are first time home buyers living in the house, they should qualify for both the National $8,000 tax rebate and the Georgia State $1,800 tax rebate offers.  But, they have to CLOSE before December 1^st to qualify.

With that benefit, plus the rent, your savings should total ~ $40,000 over a 4 year college career.  This doesn’t even take into account the savings for students who are currently on out of state tuition – add another $80,000 in savings for that.  Plus equity gained and profit after the sell . . . for any family with the means, this investment simply makes good sense!

The market is perfect for Buyers right now, thus the property should produce a very nice profit in the future if they wait for a good market to sell. 

In review:  assisting your college age son or daughter with purchasing before December 1^st rather than renting or living in the dorms saves an immediate $9,800; another $7,300 per year throughout their college careers, and then saves your young adult incalculable amounts in interest rates, fees, PMI, etc. by having a nice nest egg for their future.  All the while, teaching them crucial lessons for adulthood.  This is what I call a win-win-win-win situation!

Contact Julie Haley TODAY to make the most intelligent investment you can make in your child’s future.  Julie@JulieHaley.com

One More Time - Let's Revisit the Tax Rebates Available before It's Too Late!

The good news is, the real estate market seems to be rebounding nicely.  If you've read my post regarding the 28 properties which went under contract or sold in Hart County during the last 2 weeks of September, this is not news to you!

While not the only factor, I feel the national first time home buyers tax rebate is at least partially responsible for this rebound.  Unfortunately, this offer only applies to properties which close before December 1st. 

If you think you still have plenty of time to find the right property and close before December 1st, think again!  Mortgage lenders are trying to mend their evil ways, resulting in slower processing, knit-picking underwriters, and more intensive due diligence inspections.  The average first home purchase closing takes 4 weeks.  If the property you choose is a foreclosure or short sale, it could take twice as long. 

With the tax rebate currently applying only to properties which close by December 1st, home buyers hoping to take advantage of this offer need to be under contract THIS WEEK to assure receiving the benefits.

This is why I want to make issues of the tax rebate offer my theme for the next week . . .

I won't go over the basics of the program again.  To find out those basics, see my earlier blog under the archives for "April 2009" or under the category "Buyer's Tips".  However, I will add that I have since read articles which indicate the tax rebate can be used in instances where the lender borrows money from a family member to purchase!  Naturally, you still need to check with your personal tax advisors, but the information has come from reliable sources.

This is important for newlyweds and particularly college students to research.  I've written articles in the past describing the many positive aspects for parents of college students to purchase a house rather than spending money on rent.  I am going to pull that one out of the archives, dust it off, and repost it over the coming days.  If you include the GA State tax and the National tax rebate, your college student can make enough in rebates by buying a house to pay for a full year of college tuition AND books, with more left over!  Now - more than ever before - it is crucial for parents of college age sons and daughters to discuss the possibilities of purchasing over renting!

As this is my theme for the next two weeks, you will find articles going in depth on even more of these subjects every day.  In the meantime, contact me at julie@juliehaley.com for further discussions.  Don't wait; the clock is ticking fast . . .

The Effect of the Tax Rebate on the Property Ladder, You, Me, and Even Retirees in Florida

Most have heard Congress recently passed legislation allowing qualified first time home buyers to receive a tax rebate of up to $8000.  Google it and research the benefits if you haven't done so.  Unlike the 2008 version, this rebate doesn't have to be repaid!  It is an excellent attempt to propel the real estate business, and I believe it will have a great impact if the lenders will use their bail out money to join in the common cause.  Even though the tax rebate only applies to first time buyers, sellers of all types of properties should see benefits as a result of the property ladder . . .

What I've been terming "The Property Ladder" works like this: 

• Once a first time home buyer is preapproved for a loan, they choose a Realtor and buy a starter home listed for sale - the first wrung of the ladder.
• The seller of the starter home is then able to buy a bigger house perfect for their growing family - the next wrung up the ladder. 
• This allows the Seller of the bigger house to finally move to the house of their long-term dreams - the next wrung up the ladder. 
• The seller of the dream house is now a happy retiree able to buy a condo in Florida, a lake home in Hartwell, and a couple of rental investment homes in Athens, because the rental income pays their annual tax bills on all of the properties.

When the banks began pulling back on funding and tightening regulations, more first time home buyer candidates had to remain renters.  Thus all of the houses on the market took longer to sale: from starter homes to family homes to dream homes, and so on, and so on. 

Obviously, moving the starter homes is an opportunity for everyone hoping to sell; Family homes, Florida vacation homes, Hartwell Lake homes, townhomes, mansions, and even double wides.

Because qualified applicants can file for the rebate with their 2008 tax return, or lower their withholding over the course of 2009 by the amount of their rebate, the tax rebate should help first time home buyers with the expenses of first time home ownership.  I should also add that most foreclosures can be purchased at large bargains, but often need work.  This requires cash many starter home purchasers don't have after going through the process of putting a downpayment on a house.  This rebate allows them a means to pay for those repairs and begin filling some of the empty shells left after foreclosures.

Oh - and parents of college students - I think this is a great opportunity to experience the benefits of the rebate while helping your college student grow their credit:  Gift them the funds and assist them with Buying the house they currently rent (I even know of a lender who can offer 100% financing!).  Have their roommates continue to pay rent, and your college student will have an income stream while also receiving a tax rebate that will assist in their education expenses for the year - and gain equity throughout their college career.   BTW: A good property management company (All Hart Realty, for instance!), can manage it for him or her, collect rents from their roommates, pay the mortgage, make repairs, and simply cut a check to your son or daughter every month for you.

Encourage everyone you know who can benefit from the tax rebate to buy!  Contact me anytime, and I'll work with you to help determine your elligibility.

What the Corps of Engineers is doing wrong on Lake Hartwell

Nothing!  Betcha' thought I was going to jump on the train with those who like to rant on the CoE . . . didn't you?  Well, sorry to disappoint.  The Corps of Engineers are the favorite demon of those who live around Georgia's revered recreational lake, but they are not doing anything wrong.  The lake is low because it simply has not rained.   

The CoE is not purposefully lowering the lake in a hidden agenda to get us all riled up, build a superramp, or even to prepare for the flood of the masses of snow melt coming next Spring.  As a matter of fact, they are not purposefully lowering the lake at all.

We may see them at night releasing water from the dam.  The Lake Hartwell Dam forms the Savannah River.  Lake Russell is the beginning of the Savannah River.  The Savannah flows down to the ocean, on the way passing by many Georgia counties lying South / South East of Hartwell. 

A certain amount of water needs to flow through the Savannah River at all times to carry the water out to the ocean - with a certain swiftness to dissipate and wash away pollutants without allowing them the opportunity to muck up the lovely shores of Georgia along the way.

Thus, it doesn't matter if it has been raining non-stop in Savannah; if it hasn't been raining in between here and Savannah, we still have to release enough water to assure the river doesn't become a dry river bed mired in commercial polution thick enough to kill all of the wildlife in various areas along the way.

Considering the potential outcome, I'm o.k. with sharing, even if it means having a little less lake to play in.  We still have a lovely lake.  So, lets try giving the CoE a break.  I recommend this outlet for our frustration over the lake levels: Hope and pray for rain with all of your might!  Shoot - if you feel the need, don't hesitate to pull out the rain dances or wash all of your cars by hand (that's always certain to bring rain!). 

In the meantime, please try to conserve on the amount of water used.  A lady recently complained her flowers wouldn't be pretty if she didn't use the lake to irrigate her beds.  I sympathize, because I enjoy pretty flowers as well, but not at the price of loosing an entire river of wildlife and polluting another part of our state.  Now - more than anytime in our recent history - we have to learn to share and think of others.  All it takes is for every family to make one small contribution per day for conservation to make a large difference. 

My recommendations to her: when you are warming the shower in the mornings, collect the water in watering pails, and hand water the flowers (or wash those cars I mentioned earlier).  Small sacrifice to make, a little extra time, but our docks all stay in the water that much longer and her flowers continue to bloom.  The desire to blame someone comes from a feeling of helplessness.  But, we don't have to be completely helpless; waiting for someone else to help us.  We can take positive action NOW to help our lake, ourselves, and our fellow Georgians.  If enough of us do, we have worked together to make a difference.  Wow!  Wouldn't that be satisfying!!??  Conservation - Try It; You'll Like It!

Getting Into Real Estate Investing

The recent collapse of U.S. home sales ripped a magnnificent bloom off the rose of real-estate investing - yet buying rental properties remains one of the best ways for middle-income Americans to build wealth.

While the rich have a phalanx of investment advisors to help enrich them further every day, middle-class Americans struggle just to set aside enough money in their 401(k)s to secure their retirement. Real estate offers people of modest means an opportunity to build wealth in an investment they understand as homeowners and renters themselves.

Studies show residential real-estate investing returns an average 10 percent a year equal to the historic return for stocks. While it requires active management of the asset on the investors part vs. more passive stock investing, it can be a rewarding part-time evdeavor for those with a long-term horizon.

Leveraged investing

The beauty of real-estate investing is the ability to leverage other peoples money namely, a mortgage lender and renters to make money yourself.

Take, for example, a $200,000 home bought with 10 percent down and $8,000 in closing costs. If that property appreciates just 4 percent a year over 20 years, its owner turned a $28,000 investment into a $238,000 gain.

That scenario assumes the rental income covers annual mortgage, insurance, property-tax and maintenance costs, which it may not fully in the early years. But it also doesn't factor in the likely surplus annual income in future years when rising rents more than cover fixed-mortgage costs.

Tangible assets

Unlike stocks, whose value is a matter of perception and psychology, real-estate is a tangible asset and not just a paper stock certificate (which shareholders don't even get in hand anymore.)

The steadily rising cost of constructing new homes protects and ultimately enhances the value of existing properties. That underlying strength is even greater in metro areas with a limited supply of developable land within easy commuting distance to the center city, or well-located properties in desirable coastal and resort communties.

Direct control

Unlike the crapshoot inherent in the stock market, real-estate investors have direct control over their investments. They set the rents, chose tenants and decide what improvements to make and when.

Rather than staking their fortunes with corpporate executives who can fail to grow their companies for any number of competive reasons, real-estate investors manage their own assets based on local market conditions.

Limited risks

Real estate values can and do fall as homeowners discovered in Texas in the 1980s, southern California in the early 1990s and various regional markets throughout the U.S. more recently.

Still, long-term investors seeking to build wealth for their retirement years face little downside risk with real estate. America's rising population, shrinking household sizes and unfortunately high divorce rate are expected to fuel increasing demand for places to live for decades to come.

Diversification

Real-estate values generally don't rise and fall in tandem with stocks and sometimes are countercycical, moving in the opposite direction. It is what's called in the investment world a non-correlated asset.

Diversifying investment holdings into rental properties provides a solid counterbalance to stack-laden 401(k) and IRA accounts. A modestly priced three-bedroom rental home won't ever produce the explosive returns of a sensational stock like Google, but itowner can sleep easier knowing his or her future isn't wholly dependent on the whims of the stock market.

Immediate returns

Self-anointed real estate gurus trumpet the fortunes to be made in buying and flipping distressed and foreclosed properties, a fast-buck strategy that's especially difficult to pull off in weak housing markets where properties languish for sale for months on end.

Still, smart shoppers can reap immediate paper gains on many properties. At any given time and especially in today's markets with mounting supplies of unsold homes individual home sellers forced to sell quickly due to job relocations, divorce or unemployment may accept below market prices to facilitate a sale.

Improvment potential

Just as with the purchase of a first home, it's wise when shopping for rental properties to buy the least expensive home in the nicest possible neighborhood.

The benefit of the owner is threefold: The better the neighborhood, the less likely the number of rental properties available within it. Improvements made to modest homes in nicer areas will yeild higher rents. And an owner could simply maintain the property during the rental period and improve it just prior to sale to bring it up to the neighborhood standard and command a much higher asking price.

The benefit of inflation

As Americans have seen in the last year, rising mortgage rates hurt home sales and property values. Yet rising rates can have a postitive impact on owners of investment properties.

The fewer number of people buying homes, the greater the number of renters, which heightens demand for rental properties. Since real-estate investments tends to slow as mortgage rates rise, that also means a tighter supply of rental homes in the near term.

Interest rates hikes are the Federal Reserve Bank means to curtail inflation by making borrowing money more expensive. Inflation benefits real-estate investors who can raise rents accordingly. So while long-term appreciation suffers from mortgage-rate spikes, the immediate rental income picture improves.

Tax-deferred gains

Real-estate investing provides the same type of tax-deffered advantage of 401(k)s and IRAs. Owners aren't taxed on the appreciation in a homes value until the time of sale, and even then, they can forestall paying taxes by rolling their gain into another property.

Add to that another major tax advantage: The ability under new tax law for owners of rental properties to move into the home for a total of two years in any five year period and pay no tax on up to $500,000 in capital gains. That opportunity argues for buying rental properties you can comfortably inhabit yourself for a spell.

Of course, real-estate investing is not without its downsides, which should all be heavily weighed:

Illiquid investment

Unlike stock, which could be sold with the push of a computer keystroke, selling a home can take months and entails considerable costs. If you're not prepared to tie up your money for years to come, best that you don't.

The difficulty in quickly selling a property, however, can work in investors favor by discouraging them from running scared in a market downturn and dumping properties. The relaative liquidity of stock investing is actually one od it's greatest drawbacks, since countless investors sell in a panic, often at a loss, when an individual stock or the overall market drops.

Cash-flow constraits

The ideal situation is to buy properties whose income covers monthly carrying costs i.e. mortgage and insurance payments, property taxes and maintenance costs. The run up in the U.S. home values in recent years has made that scenario difficult to attain in many regional markets.

New investors today may find temselves in a negative cash-flow situation, meaning the rent doesn't cover their costs. Investors must be prepared financially to cover any such shortfall or risk losing the property if yhey can't foot the bill, a crushing problem now facing many recent investors saddled with properties they expected to flip for a fast profit.

Sporadic income and unforeseen costs

However good the cash flow numbers may look going in, rental-property owners risk being squeezed on several unforeseeable fronts.

The first is tenants who fail to pay their rent in a timely manner or not at all, leaving it to the owner to cover their mortgage payments out-of-pocket until they collect the back rent or evict a deadbeat. Next is a tenant turnover, which can leave a property unrented for several months a year, during which time the owner must also cover the tenant. Lastly, there are major repairs that must be done--such as a new roof, furnance, or septic system that can cost well into the thousands of dollars that must be ponied up on the spot.

Landlording

Finally, there is the angst of trying to do right by tenants who don't reciprocate in kind. Some may destroy the home you're improving for them without any intentions of raising rent.And all catch on fast to when you're playing them.

Tenant selection is a skill rental-property owners need to master since it has an immeasurable influence on success. If you're suspicious by nature and have a short fuse, this is no business for you. If you can learn to recognize great tenants who'll carry your mortgage for years and care for your property as if it were their own, you may be wise to never raise their rent and reap tremendous long-term benefits.

Using the Wisdom of the Ages to Put Today's Market in Perspective

Lately, in our real estate firm, all visitors have had only two questions: When is the real estate market going to "straighten out" and when is the lake going to get back to full pool?

As All Hart Realty celebrates our twentieth year of selling property on Lake Hartwell, we are experiencing regular cycles typical for this area:  The local real estate market naturally adjusting from a seller's to a buyer's market, and the lake shrinking and swelling with the rain levels.  We see these two natural cycles are being not so different, leading us to marvel at John Steinbeck's's wisdom when he wrote:

     "There would be five or six wet and wonderful years . . . and then the dry years would come . . . and it never failed that during the dry years the people forgot about the rich years, and during the wet years they lost all memory of the dry years.  it was always that way."

Rarely are words spoken which so accurately span decades and prove how little has changed with the turn of the century.  Those words were as true when Steinbeck wrote them in 1952 as they are today.  We like to incorporate the wisdom of such thinkers with our knowledge gained during the past two decades to assist Sellers and Buyers through these natural market adjustments.

For Sellers in today's market, patience is a virtue.  we understand the past five or six wonderful boom years for sellers have created lofty expectations, but the following is a fact of this market adjustment: you have a great deal of competition.  The market is inundated with motivated sellers and spec houses.  Your property must be accurately priced and maintained in pristine condition to have the best chance of showing better than your competition.  The All Hart Realty team can help you with current and accurate pricing, provide recommendations for the most cost effective improvements, and construct an aggressive professional marketing plan to offer you the best opportunity to move your home as quickly as the environment will allow.

For Buyers and Investors in today's market, there are many wonderful purchasing opportunities available.  Interest rates are excellent, lenders are offering a bevy of loan programs - including 100% financing, and competition among sellers is fierce.  NOW is the time to buy - before the market begins to cycle back to sellers.  Quite simply - Make An Offer!  We also stress the wisdom of being prepared to hold onto a property for up to five years.  While the natural adjustment has diminished the opportunity for "quick flips", there are true deals available now, and the rental market in both residential and commercial arenas is strong enough to allow for the proper maturation of your investment, or end-user purchase.  If you don't like the hassles of Property Management, allow All Hart's professional property management team to manage your rental and send you a monthly check.

Our decades of experience in the Lake Hartwell area have provided a unique perspective for weathering the recent fluctuations in our market, and we enjoy sharing this knowledge with our clients and customers to help you take full advantage of the opportunities associated with these cyclical adjustments.  While there are very few guarantees in real estate - as in weather - we know land is the only thing we cannot make more of; thus it is a commodity in demand.  Visit All Hart Realty on the square in downtown Hartwell anytime.  Let us share our real estate knowledge with you . . . while we talk about the weather!

The Home Seller's Market - Let's Break It Down

It's Tough.

There, I've said it - short and simply.  Selling in today's market is going to be tough.  If you have to sell a home now, might as well wrap your mind around that statement.  If any other realtor tells you differently, RUN away from them.

I'm sure you have heard it in the news and have probably read some of my other articles calling out for investors to purchase in this time of the Buyer's Market.  Chances are I'm not telling you anything you didn't already know.  However, I do have a little good news for you:

It is not quite as bad as you hear daily in the media; Property is still selling!  People have to move everyday, for one reason or another.  The keys for you are to price your property correctly, and to have the home ready to show better than all other homes on the market. 

To price it correctly, be prepared for it to be priced at less than you would want in an ideal seller's market.  A good Real Estate agent can work wonders with advertising, property matching skills, and negotiating tactics, but even the best of us are not capable of making a property worth $125,000 sell for $500,000 just because the client really wants it to.   You cannot go on the fact that 3 years ago, the property appraised for "x" dollars either, because the market has changed in 2007 and 2008. 

Anyone who goes agent shopping by demanding an agent list for a certain price or commission rate, will most likely loose the best agent for the job of selling their home, and end up with someone who is only interested in padding their listing portfolio. 

Pick your agent based on their agressive marketing plan, ask them to show you the comparables they used for formulating a list price, and then trust your agent to list the property at a competitive rate to get it viewed by the most people who are capable and willing to purchase in the range of your home's value. 

Then - HELP your agent by having your property in the best possible condition for a showing - even if it costs you a little time and money to do so.  Don't forget, it is a buyer's market, which means there are plenty of other properties out there for a buyer to choose.  You are competing with spec homes which have never been lived in (where buyers are able to pick their colors), as well as all other listings in your price range.  It may cost you $250 to repaint your living room a buyer-friendly color, but if not doing so results in a $5,000 loss in offer price or an additional 8 months on the market - well, you can see where I am going with that . . .

I always plan to take a potential seller to preview several other houses listed in the surrounding neighborhoods, so they can see first hand their competition.  It frequently gives excellent ideas on how to stage, minimalize, or improve your property to blow the competition away and capture the shared audience!  Plus, I like the one-on-one time with my home-sales clients, where we can freely assess the competition.  Don't be afraid to ask your agent to take the time to do this with you; they should be happy to do so.

Other "tricks-of-the-trade" to get a leg up on the competition are to be proactive:  Have a reputable firm do a certified home inspection.  Get a new survey.  Get a one year inspection guarantee.  Make certain your home is under termite warranty.  Your agent can advertise these items, all of which help to put the potential buyer's mind at ease (and hopefully makes them subconsciously wonder why your competition isn't offering them)!  Plus, the majority of the items a buyer or buyer's lender would have to obtain between contract and closing are provided at no cost.  Thus, shortening your time to closing and removing the most frequent hang-ups which prevent a contract from closing.

If you positively cannot allow yourself to sell for the price the market will bare (perhaps you are over mortgaged), but you must relocate / are facing foreclosure / etc, keep in mind that the rental market is strong right now.  There are risks that go along with renting your property (and it assures you must rent in your new location until you are able to sell your property for the downpayment), but you might consider leasing it at a rate which will cover your mortgage payment until a better option is available.

Yes, it can definitely be tough to sell a home in today's buyer's market, but it may still be easier this year than next - one never knows.  You also don't know how long your home may stay on the market.  I would plan for a minimum of six months to closing right now.  So, if you plan to move anytime within the next say, two years, call me to get your home listed Today.  Best case scenerio - you follow all of my advice, and we get it sold sooner than you need . . . hey, it's a buyer's market right now - we can capitalize and find an excellent home to replace it!

The Real Estate Market - Let's Break it Down

The previous ten years have been such ideal, booming real-estate years - we all became a little spoiled.  Everyone was upwardly mobile as far as real estate was concerned.  First time commercial investors and home buyers were able to buy over their heads to begin with, and then easily move up in size several times.  Now, we see people downsizing, because they aren't realizing the 50% increases in resell prices anymore.

There is no denying 2007 has been a rough year for property sellers.  They have been faced with property on the market for much longer than expected, and/or accepting offers much less than they had hoped to receive.  This has resulted in the following:

1. Many sellers found themselves breaking even or loosing money in 2007 because sales comps lowered their values, and lenders offering money so freely in the past had managed to get sellers over-mortgaged.
2. A ton of spec homes flooding the market, which means sellers have to spend more and work harder to get their home in competitive condition.
3. Foreclosures. Foreclosures. Foreclosures.
4. A stronger rental market than we have seen in a decade - both residential and commercial.

Surprise, surprise - it's an IDEAL market for an investor with some money stored away!  The simple fact is, 2007 has transformed into a Buyer's Market.  It wasn't at the beginning of 2007 when all of the lenders went on a nutty , but as 2007 progressed, lenders realized they were causing themselves to loose money and gain foreclosures they wouldn't allow to resell.   Now the lending rates have re-adjusted to their lowest in over two years!  Plus, some changes in the IRS code have allowed for the use of IRA's and 401K's to purchase property.

Add to that the stock market is insane, and what do you get?  The ideal scenario for investing your money in real property.  Rent It Out!!!!  Plan to hold on to it for five years, just-in-case.  In the meantime, capitalize on the amazing deals available, and rent for cash flow as you wait for it to flip back to a seller's market.   Don't enjoy the hassles of property management?  Let me do it and send you a check!

Also, a little tip I've learned recently - do NOT be afraid to make an offer.  Those properties which advertise, "Bring All Offers" or "Motivated Seller", mean it.  I have one investor recently whom I've been helping to create a rental portfolio.  We obtained one of his properties for 48% of the list price, and another for 63% of the list price!  Now, these were properties which I knew were approaching foreclosure, which takes a bit of research to locate;  you can't automatically expect such deals on the average listing (particularly if the property is currently producing income for the seller).  But they are out there, and I know how to find them for you!  My point is, the previous rule has been not to offer less than 10% of asking price in order to avoid offending the seller.  In today's market, all previous rules are out the window.  The worst they can say is No.  In the current market, motivated sellers will counteroffer!

So, if you are interested in investing money in a winning scenario, contact me.  Oh, and by the way, the best time to get deals with bank owned real estate or foreclosures is before the end of the year.  If you have money to invest, and can close in less than 30 days - Let's Get to Work Today!!

Pay for your Child's Education with a College Rental Property

Every year college students move.  At the University of Georgia, they change roommates and student housing almost as often as they change majors!  Which is why I always put my investment money in rental houses in Athens, Georgia.

Property managers are getting rent of $500 per bedroom, per month, in Athens these days.  What's more, the properties continue to hold or increase their value throughout the entire period of ownership.  I've been buying and selling homes in the Athens area for more than 15 years, and have always made a 35% minimum increase over purchase price.  My very first property paid my living expenses my entire time at college, supplemented my post-college income while I settled into my career, and then sold for twice purchase price 7 years later to pay for the downpapyment on my first home with my husband!

If you have a child going to college, I highly recommend looking into purchasing a property in the area.  Here's how it works:  Buy a 2 bedroom rental house; they are easy to find and your payments are usually less than 1 bedroom's worth of rent for your college age child.  THEN, make your child responsible for finding their own roommate and collecting rent from them for their monthly spending cash and to pay their utility bills.  If you stick by it, I promise you, he or she will find themselves a fiscally responsible roommate with whom they can get along! 

This teaches your children fiscal responsibility, how to deal professionally with property, and -at least for me - how to take care of their property and make regular household repairs (I quickly found I didn't need to spend my monthly income paying a plumber to come fix a toilet that runs constantly, or a general contractor to fix a sliding closet door that has come off the hinges).  These are important lessons, believe it or not!  You may think of them as your babies, but these are young adults who are going to have to learn to live in their own home one day!

After they graduate, sell the property to pay off college tuition loans, or give it to them to use as rental income while they get settled in their new careers.  Then, let them sell it to put a downpayment on their first post-college home.  Either way, you are gaining equity during their college careers, rather than throwing away rent payments, you always have a valueable investment to borrow against for college expenses, and you don't have to provide your kids with spending money every month.  It is a win-win-win-win situation!

BTW: I have 16 properties for sell in the Athens area now.  All are fully leased, but Freshmen have to live on campus anyway.  So, talk to me about buying one of them today.  Enjoy the excellent cash flow this year, and then begin your plan for financial independance for your college Sophomore (unless they change their major again!) starting August 2008.