Believe it or not, it isn’t easy sending out these emails.
First of course, I have to write them. That’s the easy part. Figuring out what I am going to write about, that’s the hard part. I spend the better part of the week, kicking around ideas, (or hoping that I get an idea) and usually write it on Saturday/Sunday. Once in a while I’ll have the idea set for the following week, like I was going to write about Short Sales today, having written about foreclosures last week, but I’m not in the mood. There is plenty of time after New Years to talk about how to survive these times that are affecting each and every one of us. I have a couple of really nice topics that I’m toying with for next week already.
But anyway, once it’s written, then I have to think about it, let is stew. Go out for a while, do something else, play spider solitaire, eat a meal, drink some Perrier. Then I read it again, then out loud, constantly editing, adding stuff, deleting stuff, until I’m past okay and am happy with what I’ve written.
Then I send it out to a couple of people for their grammatical, spelling, typographical, and editorial assistance and comments. One is my cousin Stuart, in California, and the other is my friend Jon Salmon. Thank you both. They take it very seriously, and are very strict about not letting me say something that could get me into trouble (content wise).
Now we’re back to the hard part again. Sending them out.
When I first started, I thought that I could just send them all out at once. Like an email.
Boy was I wrong.
Doesn’t work like that, at all.
At that time I had about 700 email addresses on my Microsoft Office Outlook 2007 program, so after I wrote my first email, - I clicked on all the names, and it didn’t go through. I got back notices that the emails didn’t reach the intended recipients with a bunch of different error codes that I had no idea what it meant.
I called my computer friend Al Russo, (Paper Solve) and he explained to me that the free services (Gmail, Verizon, AOL, etc.) limit the amount of emails that you can send out at one time.
So I tried sending them from AlanLasher@OurIslandRealEstate.com, a pay account, but that was even worse than the g-mail account. After consulting with our technical guy, and the domains tech support, I discovered that the Our Island Real Estate domain only allows 10 emails to be sent at a time. No wonder it took 9 hours to send out the emails.
So then I took my list and created “distribution lists” on my Outlook account, and kept them under about 50. I organized my list according to various categories, Builders, Trades, CPA’s, Health Care Providers, Bankers, Insurance Brokers, Architects’ & Engineers; my REO customers, etc. (Some of the categories are so large that I had to make multiples, like Lawyers A-G; H-M; N-R; S-Z)
Finally, I thought that I was home, but no, after a few emails, I received emails back, that some of the emails didn’t reach their intended recipients because I had exceeded the daily limit (500 emails per day). I didn’t know that I was limited to 500 emails per day, but I know that now.
I tried going to some of the online mail services, Constant Contact is one that you might hear advertising. Not a bad deal, it doesn’t cost much, they get the emails out, but…………..
I can’t just forward the email listings that I currently send out the way that they are, I have to make them fit into neat little packages that they have set up (templates).
Creating a bunch of email addresses seemed to be the answer. AlanLasherRealty@gmail.com; ALasherRealty@gmail.com; ADLasherRealty@gmail.com; LashersList@gmail.com; AlanLashersList@gmail.com; AlanDLashersList@gmail.com, etc. (pretty clever I say). That’s fine. Each email address can handle 500 emails per day. I have a sheet that I use that contains all of the distribution lists (categories), and I know that I can send just about half the list using one email, and the other half using the second email, (although the list is growing every day, I am up to almost 1200 names), but I don’t send every person every email. Realtors don’t get my foreclosure listings (after all does Macy’s tell Gimbel’s? Does anyone remember Gimbel’s?). (I live in a big old house near where Mr. Gimbel had his big old house, but I guess it wasn’t old when he lived in it).
Everything is fine, but sometimes I send the email’s out too quickly, and guess what- my account gets knocked off the air for 24 hours (can’t send), and I receive error messages, and the emails don’t go through.
Gmail tells me that they work very hard to fight spam. This not only includes spam coming into Gmail, but also spam being sent out from Gmail. Apparently they have filters that look for spam. One of the ways that they do it is looking for large mailings where the recipients are sent to cc/bcc recipients. (Other things that trip the spam filters are links to other sites and the word VIAGRA). So I’ve learned that I cannot send out the next batch, until a few minutes after the prior batch went through.
I called Leore, my graphics guy from the Bar Newsletter days, and it just so happens that he is also in the business of sending out multiple emails to people. He has proposed that I send him the listing, with the wording that I want, etc., and he’ll turn it into a package that can be sent out en masse…..for a fee.
So that’s where it stands right now.
Some of you must be saying, thank you spam control filters, and others are thinking, call Leore, get it going, so you can send us more emails every day.
Which are you?
…………………………to be continued
Monday, December 15, 2008
Sunday, December 7, 2008
So what's the deal with foreclosures anyway?
Back again.
Before I start to write about foreclosures, let’s understand that there are foreclosures in the foreclosure process, pre-foreclosures (which might involve short sales); active foreclosures: pending legal actions in the courts; post judgment foreclosures awaiting auctions and/or closings, etc. I will write about these another time.
Today I am going to write about the foreclosures where the legal process has been completed. Whoever owns the real estate, owns the real estate but since we really don’t know who really owns the real estate, suffice it to say that the homeowner is no longer the owner.
To get started, I went through every listing in the Multiple Listing Service (MLS), listing by listing (all 3000 of them) and printed out the listing’s that were: “bank owned” “REO” “corporate owned” or said “as is buyer to pay Transfer Taxes and Doc Stamps”. When I was finished, (about a year and a half ago) there were about 30 foreclosed properties for sale on Staten Island, in my loose leaf binder.
Today I went through all of the listings in my now much larger loose leaf binder (which by the way, I update as often as several times per day, to get the latest new listings, price changes, acceptances, sales, back on market, etc.), but instead of taking 5 days like the first time, it only took about an hour.
As of today (December 7, 2008) there are 123 active listings for bank owned real estate on the MLS of Staten Island. They consists of:
Condo’s: 9
1 families: 44 detached; 15 semi attached; 15 townhouses;
2 families: 27 detached; 7 semi-attached; 5 townhouses;
3 families: 1 detached
28: $ 79,900- $199,900.
50: $200,000- $299,900
27: $300,000- $399,900
18: $400,000- $725,000
The $79,000 is a detached one family in New Brighton- St. George; and the $725,000 is a detached one family in Pleasant Plaines.
The properties are located all over Staten Island, from St. George to Tottenville, and in most communities in between, but not all.
The bulk of the higher priced units, are on the South Shore, while the bulk of the homes under $300,000 are located on the North Shore and the beach areas (Midland, South, & New Dorp Beach).
No surprises here.
The real question is: are foreclosures good deals?
If you think because you have a lot of cash, and your offer is in cash, no mortgage contingency, close in two days, the bank is going to stop everything and embrace you, you are mistaken, especially if you low ball. The bank representatives’ have said to me- “everyone says that they are going to close in two days. “ Not to say that it doesn’t happen, sometimes these offers are accepted, especially after a couple of deals fall apart over financing.
The properties are being managed, (serviced) by servicing companies. (Remember- no one knows for sure who owns the property). These former mortgage underwriters, are now working in REO departments around the country selling making decisions on properties values based upon “BPO’s” (Broker Price Opinions- which are $50 “drive bys” which they bill the homeowner, and/or the bond owner $100 for). There is no accountability to the owners of the properties. There is only the pressure, as in all businesses to meet some sort of quota. (Even Judges have to “dispose of” a certain amount of cases every period or face the music).
So the question remains: can you get a good deal on a foreclosure?
I send out listings of foreclosures almost every day. This week I sent one out that stated that the particular listing was just about to hit the 6 month mark, and there had never been an acceptance on it. Perhaps this is one that you should look at immediately. (If you would like to receive every listing that I send, please email me).
A client of mine made an offer on a property in Port Richmond, six months ago, for $240,000, which was listed at $265,000 at the time, down from $299,900. I explained that this customer could only pay $240,000, that it was going to be her primary residence, etc. The bank stuck to $245,000. Two weeks later, I was informed that the person who rejected my $240,000 offer is no longer with there, and would my customer like the house for $240,000 (or less). My customer found something else in the meantime. Today the house is listed at $199,900.
Timing is very important to get a good deal. You never know when you submit an offer, whether the quarter is nearly up, whether the REO person just got hammered for not selling enough properties, or whatever other factors are involved.
So once again, can you get a good deal on a foreclosure?
Once the foreclosure is over, and possession obtained, the first thing the servicing company has to do is to get their “sure up and clean up people” in. This crew will drain the water from the pipes, shut the water in the street, and remove the water meter. They will remove the furniture, garbage, etc. Unfortunately many of these contractors that they use, cheat. Rather than gain access by opening up the doors properly, (ala Bobs Locksmith e.g.) and try to avoid damage, they just snap off the locks, usually damaging the front doors, especially metal doors. It is very common to walk into a foreclosure where the front door lock has been flung to the other side of the room. I’ve seen many dented doors. I’ve gone into numerous houses where there were radiators which were broken because someone smacked the corner with a big pipe wrench so that they could drain the system quicker- with no regard to the damage that it causes- ruining radiators, floors, carpets, paint jobs, etc.
Sometimes the servicing company will send in a crew to paint, scrape the floors, fix the plumbing, fix the cabinets, and install new carpeting. Especially in better neighborhoods.
And sometimes by the time even they get into the house, the pipes have already broken, and there is a tremendous amount of water damage, hardwood floors warped beyond recognition, mold. Sometimes the servicing companies are so grossed out that they won’t even remove the carpeting, and I’ve seen mushrooms growing out of carpeting.
And sometimes the house will get listed too cheap, and there will be numerous offers on the first day, often above the asking price. In this case, they either raise the price, or tell everyone that made an offer to submit their highest and best offer, and then the “pro’s” at the servicing company will make a decision. But what they don’t do, is tell everyone interested what the bidding is, so you can intelligently make your offer, creating an auction.
I have been in situations where my customer may have offered all cash, no mortgage contingency, submitted proof of the funds in a bank account, and they go with the person offering more money with 3% down payment. Very often in those situations the house comes back on the market. Sometimes they weigh the likelihood of the buyers being able to obtain financing against a lower all cash offer. But not every time.
Sooooooooo are foreclosures good deals?
Many foreclosures were properties that were the subject of fraudulent straw sales, like I described in one of my prior emails, and may have been abused due to lack of ownership supervision. Many foreclosures have been abandoned, taken over by squatters. Some foreclosures come on the market in beautiful perfect shape.
Yesterday I sent out a listing where only a temporary C of O was issued when the house was built, and it expired in 2000. The house has violations because it had been abandoned, and someone broke in, pulled cabinets off of the wall, and left the place open; and a violation for occupying without a property C of O. While I have not seen that particular house, I have been in many foreclosures that are total disasters, and require a lot of work. But just because a building is in serious disrepair, has zoning problems and/or violations, does not guarantee that you are going to get a good deal. But it could.
Last week I sent out a listing where the building was occupied by tenants in both apartments in a two family, and the sale was subject to their tenancy and their problems. I sent it out Attn: Low Ballers- Someone went to the property spoke to the tenants, and then offered full asking price- and they feel that they got a good deal.
So I guess the answer to the question is: Yes there are good deals to be made. If you are looking for a certain type of property, and one comes on the market that happens to be a foreclosure, you can make yourself a good deal. Although they aren’t giving anything away, and steals are few and far between, in order to get one, you have to act quickly and decisively, and/or be patient. But most importantly, a good deal is one where you feel you got a good deal.
……………………………………to be continued
Before I start to write about foreclosures, let’s understand that there are foreclosures in the foreclosure process, pre-foreclosures (which might involve short sales); active foreclosures: pending legal actions in the courts; post judgment foreclosures awaiting auctions and/or closings, etc. I will write about these another time.
Today I am going to write about the foreclosures where the legal process has been completed. Whoever owns the real estate, owns the real estate but since we really don’t know who really owns the real estate, suffice it to say that the homeowner is no longer the owner.
To get started, I went through every listing in the Multiple Listing Service (MLS), listing by listing (all 3000 of them) and printed out the listing’s that were: “bank owned” “REO” “corporate owned” or said “as is buyer to pay Transfer Taxes and Doc Stamps”. When I was finished, (about a year and a half ago) there were about 30 foreclosed properties for sale on Staten Island, in my loose leaf binder.
Today I went through all of the listings in my now much larger loose leaf binder (which by the way, I update as often as several times per day, to get the latest new listings, price changes, acceptances, sales, back on market, etc.), but instead of taking 5 days like the first time, it only took about an hour.
As of today (December 7, 2008) there are 123 active listings for bank owned real estate on the MLS of Staten Island. They consists of:
Condo’s: 9
1 families: 44 detached; 15 semi attached; 15 townhouses;
2 families: 27 detached; 7 semi-attached; 5 townhouses;
3 families: 1 detached
28: $ 79,900- $199,900.
50: $200,000- $299,900
27: $300,000- $399,900
18: $400,000- $725,000
The $79,000 is a detached one family in New Brighton- St. George; and the $725,000 is a detached one family in Pleasant Plaines.
The properties are located all over Staten Island, from St. George to Tottenville, and in most communities in between, but not all.
The bulk of the higher priced units, are on the South Shore, while the bulk of the homes under $300,000 are located on the North Shore and the beach areas (Midland, South, & New Dorp Beach).
No surprises here.
The real question is: are foreclosures good deals?
If you think because you have a lot of cash, and your offer is in cash, no mortgage contingency, close in two days, the bank is going to stop everything and embrace you, you are mistaken, especially if you low ball. The bank representatives’ have said to me- “everyone says that they are going to close in two days. “ Not to say that it doesn’t happen, sometimes these offers are accepted, especially after a couple of deals fall apart over financing.
The properties are being managed, (serviced) by servicing companies. (Remember- no one knows for sure who owns the property). These former mortgage underwriters, are now working in REO departments around the country selling making decisions on properties values based upon “BPO’s” (Broker Price Opinions- which are $50 “drive bys” which they bill the homeowner, and/or the bond owner $100 for). There is no accountability to the owners of the properties. There is only the pressure, as in all businesses to meet some sort of quota. (Even Judges have to “dispose of” a certain amount of cases every period or face the music).
So the question remains: can you get a good deal on a foreclosure?
I send out listings of foreclosures almost every day. This week I sent one out that stated that the particular listing was just about to hit the 6 month mark, and there had never been an acceptance on it. Perhaps this is one that you should look at immediately. (If you would like to receive every listing that I send, please email me).
A client of mine made an offer on a property in Port Richmond, six months ago, for $240,000, which was listed at $265,000 at the time, down from $299,900. I explained that this customer could only pay $240,000, that it was going to be her primary residence, etc. The bank stuck to $245,000. Two weeks later, I was informed that the person who rejected my $240,000 offer is no longer with there, and would my customer like the house for $240,000 (or less). My customer found something else in the meantime. Today the house is listed at $199,900.
Timing is very important to get a good deal. You never know when you submit an offer, whether the quarter is nearly up, whether the REO person just got hammered for not selling enough properties, or whatever other factors are involved.
So once again, can you get a good deal on a foreclosure?
Once the foreclosure is over, and possession obtained, the first thing the servicing company has to do is to get their “sure up and clean up people” in. This crew will drain the water from the pipes, shut the water in the street, and remove the water meter. They will remove the furniture, garbage, etc. Unfortunately many of these contractors that they use, cheat. Rather than gain access by opening up the doors properly, (ala Bobs Locksmith e.g.) and try to avoid damage, they just snap off the locks, usually damaging the front doors, especially metal doors. It is very common to walk into a foreclosure where the front door lock has been flung to the other side of the room. I’ve seen many dented doors. I’ve gone into numerous houses where there were radiators which were broken because someone smacked the corner with a big pipe wrench so that they could drain the system quicker- with no regard to the damage that it causes- ruining radiators, floors, carpets, paint jobs, etc.
Sometimes the servicing company will send in a crew to paint, scrape the floors, fix the plumbing, fix the cabinets, and install new carpeting. Especially in better neighborhoods.
And sometimes by the time even they get into the house, the pipes have already broken, and there is a tremendous amount of water damage, hardwood floors warped beyond recognition, mold. Sometimes the servicing companies are so grossed out that they won’t even remove the carpeting, and I’ve seen mushrooms growing out of carpeting.
And sometimes the house will get listed too cheap, and there will be numerous offers on the first day, often above the asking price. In this case, they either raise the price, or tell everyone that made an offer to submit their highest and best offer, and then the “pro’s” at the servicing company will make a decision. But what they don’t do, is tell everyone interested what the bidding is, so you can intelligently make your offer, creating an auction.
I have been in situations where my customer may have offered all cash, no mortgage contingency, submitted proof of the funds in a bank account, and they go with the person offering more money with 3% down payment. Very often in those situations the house comes back on the market. Sometimes they weigh the likelihood of the buyers being able to obtain financing against a lower all cash offer. But not every time.
Sooooooooo are foreclosures good deals?
Many foreclosures were properties that were the subject of fraudulent straw sales, like I described in one of my prior emails, and may have been abused due to lack of ownership supervision. Many foreclosures have been abandoned, taken over by squatters. Some foreclosures come on the market in beautiful perfect shape.
Yesterday I sent out a listing where only a temporary C of O was issued when the house was built, and it expired in 2000. The house has violations because it had been abandoned, and someone broke in, pulled cabinets off of the wall, and left the place open; and a violation for occupying without a property C of O. While I have not seen that particular house, I have been in many foreclosures that are total disasters, and require a lot of work. But just because a building is in serious disrepair, has zoning problems and/or violations, does not guarantee that you are going to get a good deal. But it could.
Last week I sent out a listing where the building was occupied by tenants in both apartments in a two family, and the sale was subject to their tenancy and their problems. I sent it out Attn: Low Ballers- Someone went to the property spoke to the tenants, and then offered full asking price- and they feel that they got a good deal.
So I guess the answer to the question is: Yes there are good deals to be made. If you are looking for a certain type of property, and one comes on the market that happens to be a foreclosure, you can make yourself a good deal. Although they aren’t giving anything away, and steals are few and far between, in order to get one, you have to act quickly and decisively, and/or be patient. But most importantly, a good deal is one where you feel you got a good deal.
……………………………………to be continued
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