[maxthemax]

Originally Posted by TampaKaren

The lenders I'm working with absolutely will not finance a condo due to vacancies...prepare to pay cash. Also at this point, 95% of all the purchases under $100K are cash. And if you don't have cash and you're not buying as a primary residence, expect even more challenges with financing. Sorry, but that's what I've seen in the Tampa market for the past 6 months. If the lending standards were loosened up, it would help alleviate some of the inventory, but rumors indicate the down payment and credit score criteria are getting tougher in April. Sorry to bring such crappy news, but it's the truth! Wish I knew what was going to happen next!

P.S. Just wanted to add a comment about "lowballing." People are not as stupid about real estate values as one might think. Want to lowball...go ahead. But, if you really want to buy something, you have to know what fair market value is. Florida is a disclosure state so everyone else knows value, too.

Thanks Karen. I read that some people were waiting for prices to go up, they will have ot keep waiting with up to 40% of people in negative equity. Also anaylsts are expecting another wave of big defaults in the next year. Some people have to get out. I think it is the law of averages. Fair value is not relevant when you are up to your eyeballs in it. 1 in 10 might bite.

Bad show about loans. My main business in Europe is vacation rentals so I am pretty good at the marketing side and can fill places. I guess that that is irrelevant to the lenders though.

[TampaKaren]

Whew, thanks. I was fearful my post was just too direct; it happens unintentionally sometimes. IMO, we are just now in the first phase of shadow inventory. Government imposed moratoriums and loss mitigation programs that didn't work are backfiring. I believe there is a large number of people who have not paid their mortgage and their houses have not been taken back by the lenders, yet. I expect another wave. I hope I'm wrong.

[maxthemax]

Originally Posted by gypsychic

Great info as usual TampaKaren. And to add a little bit to that, the OP is out of the country which adds even more challenges to buying. Our wealthy friends from France just bought a vacation condo (for their own use) down here in Manatee and they had to jump through hoops.

Another thing, about low-balling - a lot of people will be underwater on their loans, so even if they are "desperate" there will only be a certain amount they can take before it becomes a "short sale" situation, so low-balling may not really matter. In this area beach rentals aren't really that "cheap" either. And condo fees are really high.

Lots to think about.

Thanks as well Gypsychic.

Actually we are looking for houses with pools, not condos. Any ideas what conditions your french friends had to adhere to? Maybe it is just because they are garlic eating/Americam/Hamburger hating Gauls

[annerk]

Originally Posted by maxthemax

Thanks Karen. I read that some people were waiting for prices to go up, they will have ot keep waiting with up to 40% of people in negative equity. Also anaylsts are expecting another wave of big defaults in the next year. Some people have to get out. I think it is the law of averages. Fair value is not relevant when you are up to your eyeballs in it. 1 in 10 might bite.

Bad show about loans. My main business in Europe is vacation rentals so I am pretty good at the marketing side and can fill places. I guess that that is irrelevant to the lenders though.

Keep in mind that negative equity does not neccessarily mean financial disaster for most people. I neighbors who are currently upside down. But they are on time with their mortgage and not planning on moving anywhere for many, many years, so they don't care. Once you factor in the very large percentage of people in that situation, your number will reduce from 40% to under 5%.

[maxthemax]

That is ok. To be honest when I look on realtor com I can see enough houses that would make a decent return, so there are sufficent properties, even without being too lowball. Does not stop me trying though

[annerk]

Just as an FYI, when I sold my last house, one of the offers was so low that it was insulting. Even when they came back with a higher offer I wouldn't even consider them as buyers. The fact that they had insulted me to begin with gave them the appearance of being very difficult, and I told their agent that they could offer above my asking price and I wouldn't sell to them.

Moral of the story--be careful with lowball offers.

[gypsychic]

Originally Posted by annerk

Just as an FYI, when I sold my last house, one of the offers was so low that it was insulting. Even when they came back with a higher offer I wouldn't even consider them as buyers. The fact that they had insulted me to begin with gave them the appearance of being very difficult, and I told their agent that they could offer above my asking price and I wouldn't sell to them.

Moral of the story--be careful with lowball offers.

LOL - Totally agree - I once literally THREW some people out of my house when they made me an insulting low-ball offer.

Of course, if the OP is not particular about the property and does not take it personally if this happens to him, it can't hurt to try. It depends on how desirable the property is to him as to how much chance he wants to take.

[maxthemax]

Originally Posted by gypsychic

LOL - Totally agree - I once literally THREW some people out of my house when they made me an insulting low-ball offer.

Of course, if the OP is not particular about the property and does not take it personally if this happens to him, it can't hurt to try. It depends on how desirable the property is to him as to how much chance he wants to take.

Yeah, manners are for the weak

I am still not sure about the most desired areas though. I am flying to Florida next week for a look around the south East, if anyone has an idea where people want to rent then please add.

[007.5]

Originally Posted by maxthemax

I was reading that 1:20 people are late on their mortgages and it is a really good time to low ball to see how is desperate owners are to get out.

From what I see I can get good returns on nice homes with a pool now close to the coast let out short term. As I am in Europe I do not know too much about about where the best areas to rent out are.

My initial stats show that most people arrive in Miami by air but even more arrive by road. So really I want to go for a US/International market that appeals to everyone.

The most visited place is Orlando but I really am into beach rentals and I hear Orlando was overbuilt. Think I should forget orlando?

What about the gulf coast, Naples etc?

I keep returning to Miami- Jupiter area. I think this area has best demand? If so any suggestions?

Your best bet , hands down, is going to be the Panhandle of Florida ...inland. This area got hit real hard and theres tons of foreclosures and short sales out there. I know of a 3 bedroom nice looking Mobile Home on 2.5 acres of land in Mossy Head, Fl. out in the woods, going for $40,000 . Minor fixup needed inside...nothing too extensive. I paid $58,500 for my 3 bedroom completely redecorated Mobile Home on 1 acre out in the woods in Holt, Fl...near Crestview, Fl. This is the time to buy. Go to : www.trulia.com and punch in the town and price requirements you have.

[annerk]

LOL! I don't think the OP is looking for a fixer upper trailer in the middle of east Alabama.

He's looking for vacation property that can be rented out short term, most likely in a resort type area.