Deborah Meek

June

Grest question and one people are asking in every market. Real estate is a little like football (stay with me here); depending which seat you occupy determines whether you are enjoying the game. If you are a Patriots fan, life is good! I cannot directly address your Eastern Maine market question and I do not know what your personal investment criteria is, but generally speaking there are "slices" of the market here in Maine doing very well for buyers, sellers and investors. Many consider today's market an investors dream and recognize their are "golden nuggets" in their market (some distressed properties offer great opportunity, but beware as many are more complex than they seem from the outside looking in). The key to successful investing lies in knowing 3 primary, specific and fundamental things. 1 Criteria - knowing and defining exactly what you are looking for (SFH, Multi- family, location, price, etc) 2.Terms - understanding the specific terms (financing, closing costs, return on investment, cash flow, equity build, etc) under which you clearly can recognize will deliver your expectations or means you walk away from a deal if you cannot negotiate such terms 3. Network - having a a 'team" ready ,willing and able to support your decisions and find you that "golden opportunity" (realtors, attorneys, contractors, etc). Investing is based on very personal criteria and a great realtor can help you find property that will deliver against that criteria but your is the homework to define it.

Generally speaking - three factors contribute to the "market" (there are many more but these we feel are key). 1. Money - the availability and cost of borrowing money. 2. The sold inventory - if absorption rates indicate more than 6 months supply; then buyer-advantaged market. 3. For Sale inventory (current and pending homes); if less than 25% are under contract ; then buyer advantaged market conditions exist. A realtor can "thin slice" the market to help you find the opportunities that work within your criteria. The key with real estate is it is locally driven - and location driven. Similar property on two streets side by side can carry huge price differences. So I'd suggest assembling your team, at least a great realtor and lender to get the foundational pieces in place. CPA's and lawyers can follow.

I'd also recommend (if you haven't already studied it) the book "Millionaire Real Estate Investor" by Gary Keller and Jay Papasan - a great tool for the investor.

Good luck and happy hunting!

Deborah - Mon Jan 7 2008, 06:56

Jerrett

I can understand your frustration and curiosity. We find a considerable number of people feeling the pinch of Maine's disproportionately high rental market versus income base. A word of caution about - get rich easy schemes - real estate can be a superb investment, but be careful and make sure you hire a professional REALTOR to guide you through the people, process, paperwork involved in sound purchasing decisions. Otherwise it is a bit like sitting at the poker table without understanding the rules of the game - you could "beat the house" but chances are you'd not win. I believe at last glance - Maine ranks about 47/50 states in foreclosure rankings (thankfully) - due to the length of time it takes to go through the process - upwards of one year. That's not to say there aren't deals to be had - but the banks have criteria under which they are accepting offers for these properties. You don't need tons of cash, but some and financing already at pre-approval stage to legitimately have an leverage in putting a deal together. There may be $200 deals - but realistically unless you are heavily leveraged I would say these are long-shots as they can come with significant additional debts you may become responsible for.

Have you thought about the great programs that already exist here in Maine to help you become a home owner? The Maine State Housing Program makes the move from renting to owning possible for many people. The current rate is 4.9% - this is a fixed rate (there are some qualifying criteria). Additionally the Rural Development Program here in Maine is also a great program for helping people buy their first home.There are requirements for qualification for both programs. Check out the links below.

I hope this provides you a little further insight.

http://www.mainehousing.org/
http://www.rurdev.usda.gov/me/RHP_CF.htm

Good luck with your search.
Deborah - Sun Dec 16 2007, 12:08

Nadia

It's tough to understand all the circumstances that affect your decision to sell. But on the face of it I'd say one should only list their house if you are prepared to sell it and have a "plan B" - a place to stay short term. The market here in Maine is still strong provided the house is properly, staged, compensated and marketed. It is a tale of two markets - 80 % of the homes here are overpriced and no amount of wishing will help them sell - they are the one's that place fear into the minds of sellers. But the story that is so rarely told is 20 % of the homes are correctly priced and are selling fast - many with multiple offers.

If you do not qualify for a lending programme that you are comfortable with when January comes around; will you still wish to stay in your home and do some more work on securing a better set of circumstances? If you do want to stay there if the financing isn't available to your satisfaction/comfort level then I'd wait on listing your home. The last thing you want is to go to market without the real motivation to sell. If you have other pressures and financially it makes more sense to sell, then don't wait. Hire a broker who you can trust to get her sold for the best possible outcome. It is certainly easier before the snow flies.

And this time of the year you can find an abundance of seasonal rental properties - incredibly well priced - that you could rent until June when they then go back into peak season pricing. Our Maine Association of Realtors is also starting an extensive marketing campaign to continue educating buyers that now is a great time to buy. - Wed Oct 31 2007, 13:01

Your credit score is an ever changing number that adjusts daily. If an error shows up on your credit report and affects your score in a negative way, you can reverse the damage. Removing an item from your credit report can take days and in some cases weeks as you may need help from the company that reported the item incorrectly. Once the item is removed, your score will go back up once again. The exact number your score increases depends on what has happened to your credit since the original score was pulled. In other words, if it takes you 30 days to get the erroneous item removed and in that time you have purchased a new car, your updated score may not be as high as it was previously because you now have changed your financial picture. My suggestion would be to work with a mortgage professional if you are looking to purchase a home. You will then be advised of the steps needed to correct the credit issue in the most timely manner. - Thu Oct 25 2007, 11:39

Nadia. You absolutely can purchase a new home while you still own your current home. There are no exact parameters for this scenario. The biggest issue that comes into play, is your debt to income ratio. In other words, can you financially make mortgage payments on both your current home as well as the new home you are buying. There are a multitude of programs out there and the DTI (debt to income) varies greatly from one company to the next. My suggestion, in your case, would be to meet with a mortgage professional so the two of you could take a look at the numbers and see if they work. - Wed Oct 24 2007, 07:31