Myrtle Beach Real Estate

The Down Market: The Perfect Springboard for the Intrepid Agent

What a great market to use your imagination and your honed skills!  The weak ones become the casualties; the smart ones will advance by leaps and bounds...  You just have to open your eyes and see the possibilities...  Here are some BIG IDEAS:

Fractional ownership on vacation property.   For a quick tutorial on the whole concept of Fractional ownership, please check out: www.ourbeachhome.com.  I will write more on the subject in the future, since I have been immersed in research on it for several months now.  It certainly is a great vehicle for Vacation destinations, and other second home locations.  It is not a time share, it is actual deeded ownership divided into 13 shares.  Each owner gets a week during each season, and the weeks rotate every year.  That way within 13 years you have access to all 365 days.    

TIC’s on vacation property   The tenancy in common vehicle is ideal for vacation spots.  You put together an up front agreement on how everything is to be managed (example: if one partner want out, he needs to offer “first right of refusal” to the other members).  An attorney can draft up that simple agreement.  You can garner reservations, and when you have enough “owners” (2,3,4) you go to contract, obtain a loan involving every one of the owners.  You can also consider doing an LLC.  There are many ways to wrap it all up.  The idea is to dilute the responsibility and cost and make it more palatable for the Buyers.  It’s also a great way for sellers to keep some interest in the property, while getting help with carrying it.  Present it to your sellers.  Many don’t even know they have that option.

Owner Financing   I always do a net sheet when I take a listing.  It’s surprising how many people have their homes paid off.   You should show them the advantages of “owner financing”.  They don’t have to carry for 30 years.  The loan can be amortized over 30, all due in 2 or 3 years, or whatever time frame the Buyers need in order to get their ducks in a row, and obtain a conventional loan.

Lease with an option to buy   The Sellers get to move on, the Buyers get to move in, in spite of not being able to obtain a loan at the moment.  The Buyers work on their credit issues, and perform within the option period.  Everyone wins, and you are the Hero. 

Land Contract of Sale   Instead of giving the Buyer a deed to the property, the Seller gives a contract to purchase.  When the Buyer comes up with the money, the sale is consummated and the deed is issued.   An attorney drafts the Contract of Sale, the agent only drafts the contract to purchase, specifying the terms.  I’ve seen it done on property encumbered by a mortgage, even though the note has a due on sale clause.  I’m not sure what the official dictum is on that.  I’m guessing the assumption is that if both Buyer and Seller are aware and accept the risk, it should be ok.  I know that it’s being done by reputable attorneys.

Get into the Property Management Business   No kidding!  We did.  Our clients needed it, so we jumped in.  I will post a glorious idea on a new concept regarding this area in a future blog.  It is a fantastic idea, perfect for our market right now.  It will benefit everyone, and you will get nothing but kudos.

Foreclosure Remediation – Let’s do this “pro bono”.  Consider it a long term investment in your clients and community.

I have some other ideas for this market.   Stay tuned!