# I sell Real Estate in Daytona Beach, FL



## AmberErin

Hi!

This is my first post on this site. I am a Real Estate Agent in Daytona Beach, FL. There is a constant influx of foreclosed properties as low as 8,000 for concrete block homes. Not just regular homeowners defaulting on mortgages, but so many investors that have come into this area looking for a profit since its a "tourist" area. I am interested in finding out where everyone is from and talking about the market in different areas. 

Thanks!!


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## Melensdad

Hi AmberErin, my wife and I vacation a little bit north of you on the coast, usually the St Augustine Beach to Flagler Beach area.  Nice to have you here.

We live in Northwestern Indiana, in a rural area under the south edge of Lake Michigan.  I own some commercial real estate for investment purposes.

Housing market is pretty deflated.  On my private road there are 4 homes for sale, 2 of those are foreclosures.


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## squerly

Hi Amber, welcome to the forum.  I'm a believer in real estate and hoping for a comeback soon.  I've been buying homes when I can find a good deal, cleaning them up and looking at them as "money in the bank".


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## AmberErin

yes, the market here is insane. I just made an investment of my own. You make your money when you buy and with prices under 20,000 you can't go wrong with a concrete block home. Real estate basically consumes my life because it never stops and I wouldn't want it any other way. It seems like in Daytona Beach there is an endless supply of these cheap houses. Just when I think the market is making a "come back" for sellers, there is a new batch of bank owneds that come up. Not good for sellers but a hell of an investors market. I've been telling my clients to hold a note and mortgage. There are so many people who can not get a loan and have been saving thier cash so more and more people are able to make a substantial down payment (usually 20%) and many people happy to pay 12% interest only payments for only 1-2 since after 2 years thier principal balance will still be a good deal. Its really a very interesting market here.


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## Melensdad

So are you renting out these inexpensive homes for monthly income?  

Or are you selling them and holding the paper?  

Obviously these are not for tourists visits, but rather rentals/sales to locals on a budget.  Yes?


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## AmberErin

wow i typed so much and then i accidently backspaced and *poof* it was gone.

Anyway yes, this is typically for locals who need a place and even with the 12% int its still a better deal than renting in this market. 

Although renting to tourists is very profitable but a different game in in itself. I met a very nice couple from GA who bought a house with the 12% financing and they rent it out for 1000 a week. I typically in my company do not include property management because it's a good deal of work. 

Many hotels sell hotel rooms with an kitchenette as real property that you own. Those are very desirable for visitors and the hotels will often offer a spilt 50/50 of 60/50 (in your favor) to rent it out as a hotel room while you're away. The issue with these hotels is the maintenance fee is over 100 a month. usually 250, as high as 350.

With so many people needing homes, holding a mortgage is a very profitable return on your money and saves you money in your time since you could have your real estate agent handle mostly everything for you. Unless you found an agent who will also manage property, although I have found that agents who are willing to use their time im management do it because they have not gotten the knack for negotiation with banks and sales


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## Melensdad

So in that market do you make more on the 12% interest, or on the re-sale price of the property?

If the property is $20,000 and the buyer puts down about $4,000 (about 20%), you are holding paper on roughly $16,000 at 12% that is roughly $1900 per year income (and declines each year as principle % goes up).  Yes?  

Or are you reselling a $20,000 property for (hypothetical) $50,000, so the buyer puts down $10,000 (20%) with you holding paper on $40,000 at 12% . . . leaving you with a $10,000 cost into the purchase (assuming original cost was just about $20K).  Plus interest of 12% on $40K, or about $4800 per year income to you.  Yes?

Are these Interest Only notes?  Or P+I notes?

BTW, how long are these notes you are holding?

Just trying to understand that market.


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## AmberErin

no decline - these payments are interest only. 

Lets take the 20,000 for example.
You buy a house for 20,000 - do some minor repairs since there is no doubt they will be needed. You put it back on the market for 50,000. 20% down payment = 10,000. 12% interest only payments on 40,000 are 400$ per month. You can hold for as little as 2 years and at the end of those 2 years the principal balance is still 40,000 UNLESS they have made payments on the principal on top of their payments. I typically tell my investors that at a minimum of 1,000 the borrower can pay down the principal at any time during this time. (1000 bc its easier to manage) I have had many investors profit from this, although you will get much more activity if you're willing to hold for a longer period of time. Many agents in this area argue with me over interest rate saying its not "correct" to charge 12% interest only but there are people who are eager to do this since  40,000 is still an incredible deal.


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## AmberErin

Love your Ayn Rand quote, btw.


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## BigAl RIP

Welcome ,
 We can use a real estate person in the group . Like Melensdad I also buy properties for investment . Good money making machines if done right . 
 Your area sounds interesting . I may need to check that out .


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## AmberErin

if you'd like I can send you emails so you can see what's coming out . Always good to get a feel for any market


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## Melensdad

BigAl said:


> . . .
> Your area sounds interesting . I may need to check that out .



ditto


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## BigAl RIP

AmberErin said:


> if you'd like I can send you emails so you can see what's coming out . Always good to get a feel for any market


 
 Maybe post a few here in the Real Estate section . Thats what it is for , along with talking Real Estate .

 This FF group is a large (Mostly) older guys who have worked hard and are always looking for ways to keep their "Nestegg" growing .

  With banks paying 2% there are a lot of folks looking for ways to increase their income safely . 
 I do not deal with banks or loan companies . I am the loan company . I like to cut out the middleman . I also do not do partners as I alone make the decisions in my investments . Its worked pretty well so far .


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## Kane

BigAl said:


> Welcome ,
> We can use a real estate person in the group . Like Melensdad I also buy properties for investment . Good money making machines if done right .


Indeed.  A wealthy man is one with a drawer full of keys.


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## BigAl RIP

Kane said:


> Indeed. *A wealthy man is one with a drawer full of keys.*


 
  I got lots of keys!!! The problem is I have no idea what they fit anymore . 

  Does that count ????


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## Kane

Melensdad said:


> Obviously these are not for tourists visits, but rather rentals/sales to locals on a budget.  Yes?


Renting short term to tourists can be amazing.  In southwest Florida an 'island-y' 3/2 home with a pool anywhere near the beach that costs say $3,000/month to own can demand an easy $12,000/month in 7-day stays ...  year round.


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## AmberErin

am I allowed to post on the fourm? I don't want to get in any trouble hahaha


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## Kane

AmberErin said:


> am I allowed to post on the fourm? I don't want to get in any trouble hahaha


As long as your grammar/spelling/punctuation is reasonable and the cussing not too coarse, post away darlin'. 

Glad to have you.


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## Melensdad

AmberErin said:


> am I allowed to post on the fourm? I don't want to get in any trouble hahaha



Well I'm a moderator here and so is BigAl and if we say do it then go ahead an do it.  Make sure you post it in the Investing Forum.  And make sure you continue to post and contribute in the other forums too and then we'll allow you to plug your services/business too.


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## grizzer

I dowanna rain on your parade but the CFPG have made massive regulatory additions to mortgages. Also the FL bankruptcy/foreclosure processes concerning homesteads are unlimited - not something midwesterners are familiar with. MN homestead is only worth $65K, and new construction costs are $250-350/sf. I do have several friends/relatives with FL property but not making mortgages. You might post the process & costs to reclaim assets.     



AmberErin said:


> no decline - these payments are interest only.
> 
> Lets take the 20,000 for example.
> You buy a house for 20,000 - do some minor repairs since there is no doubt they will be needed. You put it back on the market for 50,000. 20% down payment = 10,000. 12% interest only payments on 40,000 are 400$ per month. You can hold for as little as 2 years and at the end of those 2 years the principal balance is still 40,000 UNLESS they have made payments on the principal on top of their payments. I typically tell my investors that at a minimum of 1,000 the borrower can pay down the principal at any time during this time. (1000 bc its easier to manage) I have had many investors profit from this, although you will get much more activity if you're willing to hold for a longer period of time. Many agents in this area argue with me over interest rate saying its not "correct" to charge 12% interest only but there are people who are eager to do this since  40,000 is still an incredible deal.


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## AmberErin

these are private loans.


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## Melensdad

grizzer said:


> I dowanna rain on your parade but the CFPG have made massive regulatory additions to mortgages. Also the FL bankruptcy/foreclosure processes concerning homesteads are unlimited - not something midwesterners are familiar with. MN homestead is only worth $65K, and new construction costs are $250-350/sf. I do have several friends/relatives with FL property but not making mortgages. You might post the process & costs to reclaim assets.
> 
> 
> 
> AmberErin said:
> 
> 
> 
> these are private loans.
Click to expand...

I've been involved in private loans, and it can be lucrative for the lender (me) and it can also be the only way for a borrower to buy a property due to various circumstances in their lives.  They may not be bad risks, but they may not qualify for traditional bank loans on properties.  So turning to a private lender, and paying a somewhat higher interest rate may be their best recourse until they can re-finance in the traditional banking environment.  Its a win for the private lender, and its a win for the borrower.


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## AmberErin

precisely. There are still a few things the government can't regulate. The note and mortgage  could be recorded after the sale , but its in the best interest for legal purposes to do it at closing, but its a private transaction.


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## BigAl RIP

Melensdad said:


> I've been involved in private loans, and it can be lucrative for the lender (me) and it can also be the only way for a borrower to buy a property due to various circumstances in their lives. They may not be bad risks, but they may not qualify for traditional bank loans on properties. So turning to a private lender, and paying a somewhat higher interest rate may be their best recourse until they can re-finance in the traditional banking environment. Its a win for the private lender, and its a win for the borrower.


 

I completely agree .

Best easy money I ever made . I will never ever sell a property again without offering to carry the loan . Of course the borrow must be stable for me to take the risk . Thats why I get a higher interest rate . The banks are not going to loan if they remotely think they may get the property back . Then they charge Points , loan fees , bathroom fees , future fees for whatever reason . Banks are a joke . 

Come to "BigAl's loan and sharking company" . We will break a leg for your business and more than likely it will be your leg if you miss a payment !!


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## BigAl RIP

Kane said:


> *As long as your grammar/spelling/punctuation is reasonable and the cussing not too coarse,*


 

 I may be in serious trouble then . Crap !


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## AmberErin

BigAl said:


> I completely agree .
> 
> Best easy money I ever made . I will never ever sell a property again without offering to carry the loan . Of course the borrow must be stable for me to take the risk . Thats why I get a higher interest rate . The banks are not going to loan if they remotely think they may get the property back . Then they charge Points , loan fees , bathroom fees , future fees for whatever reason . Banks are a joke .
> 
> Come to "BigAl's loan and sharking company" . We will break a leg for your business and more than likely it will be your leg if you miss a payment !!



yes. you make your money when you buy. Many people are afraid of real estate investment because they see what they can do to a property, but really end up sinking in too much money. the best thing you can give someone is a good deal... not a state of the art kitchen , 3 car garage or marble floors.


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## waybomb

Find me something near West Palm on the water with at least 75 feet of seawall. Deep water. need 24' clear span high tide to bottom of bridges, or bridges that open on a regular schedule or on demand.

Foreclosure would be great.


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## AmberErin

Unfortunately, having me as your agent for west palm would be a disservice to you. Although I am licensed in all of Florida, I only pay board dues in two counties (Volusia & Flagler ) and therefore only have immediate access to houses in cities within those counties. I'd have to call an agent who does and in that case you'd be better off dealing with that agent directly. 

 I do not know any agents personally in that area that I could refer you to in good faith. I'd suggest looking on Angies List - it is in my opinion that you can only trust what the clients have said themselves versus any board or agency/company related titles or buildups.


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## waybomb

Can you hook me up with a good source of repo and short sales other than the few that show up on realtor.com?


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## Melensdad

AmberErin said:


> Unfortunately, having me as your agent for west palm would be a disservice to you. Although I am licensed in all of Florida, I only pay board dues in two counties (Volusia & *Flagler* ) ...


So you know Hammock Beach real estate pretty well.  

Hmmm.  Interesting.  This could get interesting.


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