The Wisconsin housing statistics are in for June of 2013. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

Wisconsin home sales rose an impressive 11.4 percent in the first six months of 2013 compared to last year, according to recent statistics compiled by the Wisconsin REALTORS® Association (WRA). In June alone, Wisconsin home sales were up 3.1 percent relative to last June, posting the 24th straight month of positive sales growth in the state. Median prices also continued to increase year-to-date, rising 7.7 percent to $140,000 compared to the first half of 2012. In June, prices were up 12.3 percent to $159,500 compared to June 2012.

“The pace of sales in the first half of this year is well ahead of last year,” said Renny Diedrich, chairman of the WRA board of directors. "which is especially noteworthy since 2012 was an exceptional post-recession year for housing sales.” Diedrich said.

Adding to the good news was a significant drop in foreclosures during the first half of 2013. Unique foreclosures in the state are down 37.2 in the first half of 2013 compared to that same period in 2012, and down 44.5 in the second quarter this year compared to quarter two of 2012. “All in all, this paints a very healthy picture of the Wisconsin residential home market at the midyear point,” Diedrich said.

“We’ve seen very strong growth in housing prices since they started improving 16 months ago,” said WRA President and CEO Michael Theo. And while higher prices impact housing affordability, homes in Wisconsin remain a good value.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales & prices have been increasing over the past few years. Both Dane and Rock counties are showing marked improvements in the number of homes sold and the price at which they are being sold at. This summer has been really hot for the properties that are priced right! There's been a large increase in sale prices, as you can see below.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

If you want to read the full story, go to The Blaze.com

As a REOPro, I am completely astonished by these types of stories and it never ceases to amaze me at just how scary the practices of some of these smaller banks can be. Do they just hire the bank President's son's best friend's sister in-law who knows this guy who happens to be friends with a Realtor they can use? Really?

Do these banks not have policies, procedures, best practices, a platform?

Now, it's bad enough this happens and gets reported but, how many times does this happen and not get reported? How many people out there have this happen to them and then end up having to hire an attorney, with money they likely don't have, to fight an injustice that should have never happened in the first place?

It's not like the markets are flooded by well trained, in most cases, highly experienced Realtors who would fight at the chance to win the listing assignment from one of their local banks. Personally, I would have no problem working the assignment from monthly drive by inspections, property address verification, occupancy checks...etc.... if I knew I was getting the listing.

Well, this is a perfect example as to why we need to start making agents the AMC. You see, most of these small banks won't hire a big ole AMC to outsource their assignments because, it's just too expensive for them but, if they had a local agent, that would do all the work for the commission, they may think twice.

To learn about how REOPro wants to make the Realtor the AMC, read my discussion forum titled, REOPro Makes the Agent the AMC.

Sad to say but, another one bites the dust. See filing paperwork below.

Residential%20Capital%20Bankruptcy%20Filing.pdf

Realtors, if you haven't already, you need to be protecting yourself and be sure you are getting reimbursements back on time in full. I am getting flooded by emails from agents who are owed lots of money.....lots of money and they aren't going to see it ever again.

I don't know how many of you are IAS Vendors or Suppliers but, you likely are going to be getting these letters in the mail from their attorneys. See attached.

IAS%20Letter.pdf

As the REO business starts shrinking, we can expect more and more of these companies to go out of business. Those of you still working for outsourced REO companies....be warned.

Hi Everyone!

I was recently completing a BPO for ClearCapital when it prompted me to accept or deny a background check.

It specified I either have the check done or risk not getting any more orders. Plus, it was mandatory and at my expense!

Is this fair?

We get low fees and when we do the work at times we don't get paid!!!

Also...it states that every BPO company was going to make this mandatory and each time we have to pay for a back ground check for each company. One check will not do for all!!

Any thoughts on this?? 

Thanks,

Sandy Gleicher

ERA Team IV Homes

Poughkeepsie, NY

Busy business owners, executives and professionals sometimes have a hard time coping with their workload and get overwhelmed by all the tasks. There are times that they feel swamped and because of that feeling of helplessness, nothing gets done in the process. If this is the kind of feeling or atmosphere that you have, it might be time to hire an assistant or a virtual assistant to ease up on your busy schedule and for you to be more productive.

Now, finding the perfect assistant might seem easy at first glance seeing that there is an increase of virtual assistants in the web but it really is not as easy as you think. You will need to find one that fits your criteria and requirements and your budget as well.

Here are some helpful tips on how you can find the perfect VA for yourself or for your business:

1)    Figure out your budget and how many hours of work you need. It is very important to figure out how many hours of work done per week you need for a VA and how much you are prepared to pay. This ensures that you don’t go over budget and your VA can work on the amount you provide.

2)    Check what type of work you need done. You need to figure out what kind of work you need from the VA so that you can explain to your VA what tasks you want and therefore prevent wasting the VA’s time or yours for that matter.

3)    Gather as many candidates for VA as you can. Receive as many applications as you can and prepare a shortlist for your interview based on the VA’s qualifications and experience. Spend adequate time in recruitment for your VA since you want someone who can work with you well, so invest the time. Be sure that even if you have chosen the successful applicant that you also keep in mind 1 or 2 next to that applicant if in case the successful one does not work out well.

4)    Make sure that you and your VA agree on a trial period for work. Having a trial period ensures that you are really sure of the fit of the VA and your needs. Also this is sort of an adjustment period for the VA and you and will show or somehow predict the kind of work relationship you both will have.

5)    Agree on scope of work and specific terms of the VA’s contract. Agreeing on specific terms of employment and the scope of work will ensure that all needs are met and expectations are covered both on your side and the VA’s as well. This bodes well for everyone concerned and prevents miscommunication and disagreements for a better working relationship.

Sometimes finding the perfect VA is easy and sometimes it is not. The tips above are designed to be helpful in guiding you to meeting the VA that can satisfy your needs, if not exceed them. Sometimes also it could be a trial and error method. Different approaches work as well.

It Takes a Good Plan to be Successful in Rental Property

(Investment Properties: Part 5 of 5)

For people considering a purchase of a rental home this is truly an opportune time. The tremendously low mortgage rates coupled with attractive home prices makes this a buyer’s market.

However, numerous reports indicate that home prices are rising consistently, although modestly. If you are considering buying a home it is time to take action. Here are a few guidelines to help you plan out your first purchase.

Look to Experts

If you are looking at your first investment property purchase it would be wise to work with a real estate agent that is experienced in these kinds of deals. An agent that intends to work with an investor over the long term will be meticulous about the property recommendations to insure the investor meets their financial goals and comes back to the agent for more homes.

It is also a good idea to speak with other investors. They can provide you some guidance about what to look for in homes, what areas to avoid and other general information that is generally not found in a textbook.

What Type of Investment Do You Wish to Pursue?

Some first investors choose to buy a home at a great price and rent it out on their own. Others use the service of a management firm. And then there are the individuals that buy a home, spend some money on repairs and put the home back on the market at a price to make a profit.

It is important to consider your options and tolerance for risk. Buying a home that you can easily afford while looking for a tenant may be a good opportunity to get your feet wet.

Develop Your Team before the Purchase

If you plan to manage the property on your own, there will be a few individuals you need to contact prior to purchase. First, you will need a lender that can handle investment loans. Second, you should consult with an accountant and attorney to make sure you are covered legally and that you minimize your tax liability. Third, you should speak to an insurance agent about the proper policies to cover your investment. Finally, you will need to talk to a general handyman or one each of plumbers, electricians, roofers, painters and HVAC repairmen. Having these people lined up and ready to work for you will make much of the process go by smoothly.

Choosing the Right Area

It is important to pick a home in an area that is accustomed to rental property. Places with a high population close to schools and shopping districts are usually safe bets. Rural areas can be difficult simply because the number of available applicants is typically small. Keep in mind that you may want to sell the property in a few years. If you buy the smallest, or the largest, home in a neighborhood it can be tough to unload later.

Buying an investment home should be approached as a strictly business transaction. Decide how much you can comfortably invest and how much you hope to make as a return and let those types of items help you with the decision.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

How to Pick Profitable Rental Properties

(Investment Properties: Part 4 of 5)

From looking at various homes to actually making a profit, investing in rental properties takes many steps. A person that is new to the process may feel a bit overwhelmed. In order to reduce risk and increase your chances of making positive cash flow with real estate, here are some tips on picking a home.

Good School Zone

A good school zone will always attract families. Many families will be able to purchase homes in the area but some will have to rent a while in order to get their finances in order. These are the types of people who will stay in a home for 2 or 3 years and be potential good tenants. Focus on schools that have high standardized test scores and achieve well in the areas of math and science.

Avoid High Crime Areas

This may seem obvious, but it needs to be pointed out. Homes in areas that are subject to more than average rates of crime will be tough to rent out. Furthermore, the crime rate will drop the rental rate. This can cause a breakeven or even net loss on the monthly cash flow.

Demographic of Neighborhood

Each neighborhood will have its own miniature set of demographics. A community next to a college or university will likely be made up of homes rented almost exclusively to students. An older neighborhood with higher priced homes will likely have couples that are middle aged and higher. Study the neighborhood carefully to make sure there is an available market of tenants that fit the demographic.

Employment Opportunities

Another factor that can heavily influence the profitability of a rental property is the number of available jobs in the nearby area. A new factory, expanding hospital or growing university are places that will add on more people and need them for full time work. Many times people will obtain a job first and then start looking for nearby homes to rent. Sometimes these people can be short term renters but it is possible to find someone that locks in a home for 2 or 3 years.

Check for Vacancies and Homes for Sale

For a new subdivision that is under construction it is common to see multiple signs indicating new homes for sale. However, for an established neighborhood, a high number of for sale signs is a kiss of death. This typically indicates that the area is on the decline. An even worse condition is the presence of several vacant homes. These are homes that have been abandoned for various reasons. Steer clear of these areas in your own best interest.

Be on the Lookout for Problems from Mother Nature

Some areas are more prone to natural problems than others. Issues like flooding, mud slides and tornadoes seem to be attracted to certain areas. The insurance for properties in these areas can be quite high and chip away at the monthly cash flow for the property.

Finding a good property based on these guidelines does not automatically mean that your home will be a cash cow. However, it should increase your chance for success in a very lucrative type of investment.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Financial Gurus Still Believe Rental Property Is a Safe Investment

(Investment Properties: Part 3 of 5)

The record low interest rates for mortgages have helped the real estate market to slowly improve month by month for the last several quarters. Thanks to these low rates real estate has continued to be a sound investment for people who wish to diversify their portfolio. For those people that are considering buying their first investment property here are some considerations to keep in mind.

Neighborhood History

It is wise to pick areas that are accustomed to rental homes. One of the most obvious choices would be neighborhoods close to a major university or college. If there are no colleges or universities in your area then look for certain neighborhoods close to quality schools. Schools often attract stable, hardworking tenants that will likely pay on time.

Understanding the Role of Landlord

There are two major ways to prosper from owning rental property. The first is to buy the home at a significant discount and then sell the place at a profit after the home has appreciated. The second way is to have positive cash flow. The second method takes considerable planning. Just because the tenant is willing to pay more per month than the actual mortgage payment, it does not mean that the home is profitable. There are other items to consider such as regular maintenance and repairs.

Determining What to Charge in Rent

Appraisers and real estate agents can provide information about rental rates for a certain area. This gives the investor some idea of what can be charged per month. The monthly mortgage amount and allotted figures for maintenance should be subtracted from the rent. There should be at least 15% left over after subtracting the payments and expenses. Otherwise, you run the risk of losing money.

Choosing Tenants

Once you have some interested parties and they seem capable of paying the rent it is time to begin the screening process. Experienced landlords hold fast to the rule of checking out prior landlord references as well as the tenant’s credit file and even a criminal check. The criminal check could spare you from inadvertently leasing to a felon and finding major damage to your home due to a police raid.

Research the Possibility of Using a Rental Management Firm

Some companies specialize in managing properties for investors. These firms will review applications from potential tenants, handle collecting rent payments and, most importantly, take care of the maintenance issues that pop up at the most inopportune times.

For instance, if you get a call in the middle of the day that a toilet is leaking, can you leave work and fix it? If you get a call at 2 am on Saturday morning notifying you of a sudden hole in the roof, are you capable of fixing that problem? Some people have the skills and time to manage these issues, but most people do not. In these instances it is a good idea to use the service of a reputable management firm.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Things to Consider Before You Add "Landlord" by Your Name

(Investment Properties: Part 2 of 5)

Owning investment property has been a proven means of gaining wealth. However, it is not as passive as some information marketers would have you to believe. Here are some items to think about before jumping in to the world of landlords.

Handling Repairs

All homes need maintenance and repairs. It does not really matter how old the home is, whether it is brick or wood or even a modular home. To protect tenants most states have adopted laws that favor the renter when repairs are not made in a timely manner. If you are handy with tools and have a knack for being able to fix anything that breaks then this may not be a major issue.

However, if you have a full time job, a family and you are not comfortable with most repairs then you will need to decide how to handle the roof leaks, toilet overflows and broken appliances that come from owning a home. You can choose to use a property management company that will handle all the repairs for you and simply bill you. Or you can contract with your own handyman service.

Managing Tenants

The majority of tenants will pay the monthly rent and treat the place as if they actually owned it. However, a small percentage of people can cause a large number of problems. Lack of maintenance can lead to mold and mildew throughout the property. However, major problems like parties that attract police, illegal activities that end up on the news and major damage to floors, ceilings and walls can cause a nightmare for even the most patient person. Some people have the personality to handle this kind of stress while others want no part of the problems.

Collecting Money

It is highly likely that at some point you will have to call on your tenants, either on the phone or in person, and get them to pay for their past due rent. This is just a fact of being a landlord. With these situations comes a need for good judgment. Some people really do run in to bad luck and simply need a few more days to pay the rent. Others are either poor money managers or simply lazy and refuse to pay their obligations on time.

Evictions

It may seem on the surface that evictions favor the landlord. Once the renter has stopped making payments then the landlord simply makes a plea to the local court to have the person(s) removed.

However, things are not that simple. First, you will lose a month’s rent waiting on the tenant to pay. If the court system is backed up then you may have to wait another month to get a hearing date. In the meantime the renter can leave a major mess behind that requires extensive cleanup and possibly new paint and carpet. Once again, as stated before, the majority of tenants will pay on time and not cause problems. But an eviction can be problematic and expensive and you need to be prepared for it.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Advice About Purchasing Your First Rental Home/Property
(Investment Properties: Part 1 of 5)

Before buying that first piece of rental property it is important that you answer a single question. This question has nothing to do with your credit score, your experience with real estate or how much money you can gather for the purchase. The question is quite simple: WHY are you buying an investment home?

The answer to this question will guide you towards the right kind of property and the right type of financing. Let’s look at some examples to get a better idea of reasons people use to start investing in homes.

Saving for College Tuition

This type of goal usually involves a term over a few years. Couples with young children will buy a home in an area that has shown signs of appreciating. A year or two before the child enters college the family will sell the home and use the profit to pay for tuition, books and other expenses.

In this particular scenario the couple is not concerned with making a large profit each month on the rent. They simply want to break even while keeping the home in tip-top shape to maximize the potential appreciation.

Using Cash Flow to Increase Monthly Income

Some individuals invest in rental homes because they want to earn a profit each month from the rent. In these cases it is extremely important to buy a home either for all cash or at a deep discount from the market price. Foreclosures and vacant homes are common for this example. Buying the home for cash or at a deep discount allows the landlord to charge a fair rent based on the current market conditions and pocket most of the money each month as profit.

Speculation about Future Values

Sometimes people simply buy a property at a slightly discounted price in hopes that the property value will escalate quickly due to a future event. For instance, a new shopping mall, new school or a new factory can greatly improve the value of homes in the immediate area. Buying a home in such a location and holding on to it for a few months to a year can yield a high profit.

Career Change

Some people want to begin their property investment as a means to escape their current full time job and start a new career. It is possible for people to invest in real estate as their main source of income. However, it is not a get rich quick scheme.

The most successful investors have clear goals and follow a proven formula. They buy homes in particular areas that exhibit desirable qualities. They only buy when the price is discounted heavily and they have favorable financing for the transaction. They also understand the rental rates for the area in comparison to the financing costs.

Buying a rental home can be lucrative and lead to good fortune. However, it must be approached with diligence and hard work, not pie-in-the-sky dreams.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Rock Realty Client Testimonials

"Mike & Matt,

Thank you so much for helping us find our dream home! We love it! Thank you for the many hours spent in research, travel, phone calls, and emails. Thank you for being open & honest with us every step of the way! We felt we could trust you 100%. We really enjoyed working with you and highly recommend you to others.

Thanks!"

Kevin & Abby G. (Madison, WI)
Rock Realty Home Buyer Client

Thanks for the compliments, and Congratulations on your new home Kevin & Abby!

Looking to purchase a home in Wisconsin?? Contact Rock Realty! We would love to help!!

You are Paying for Motivation?

Ok….so, last week I was contacted by a lead generation company which, for now, will go nameless. I do like getting calls from these types of companies because, I love drilling the poor, unfortunate soul who has to try to convince me that I want to buy leads. Good luck with that. So, they guys starts of telling me that I can be the exclusive agent for their program in my area. They like using the word exclusive, it makes them sound important. He goes on to blow up my ego by telling me that they only accept the top producing agents and he found my information on Google so, he knows I am a top producer….lol. Finally he goes on to tell me that he has a limited time frame that he can hold this exclusive spot reserved only for top producing agents and I need to make a decision today.

Well, I felt like I was going to tell him, “No body puts baby in a corner” but, I totally restrained myself and was like, “Oh my god, that sounds so fabulous” I don’t think he caught it that I was joking with him because, then he went on to tell my about his companies exclusive IDX and how it generates thousands and thousands of hits on their site for my zip code each week. At this point, it reminded me of being back in school, having to listen to my teacher, kind of like Charlie Brown and his teacher. It’s also kind of like when a woman is mad at you and she starts to raise her voice but, all of a sudden, she hits a particular tone and my ears start shutting down and before you know it, I can’t understand a word she is saying.

Finally, the spill is over and truth be told, I wasn’t buying crap but, I thought, let’s have a little fun here. Let me ask if maybe they can give me some numbers, specific numbers so, I asked, “How many leads a week can I expect to get?” Now, the preverbal crap hits the fan and he diverts the question and starts talking about how they have a wonderful motivational series and I will get a daily inspirational thought, inspirational message and once a week, a inspirational phone message / webinar. I was a little taken back because I have never really had someone completely ignore my question so, I asked it again, “How many leads can I expect each week?” He then tells me that the program can’t guarantee a number of leads because it’s all based on business need but, I will get these motivational messages regularly, I can attend training webinars they do monthly, etc… etc….

At this point, I am over it, I am spent so, I stopped him and said, “So you are telling me that I would primarily be paying for motivation?” The call got silent and as he started to talk some more, I ended the call with a nice, “Thanks but, no thanks……..click.

One of the members of this network gave me some really valuable advice once. It rang so true to me that even now, I hold it close and don’t steer away. We were talking about this same thing, these lead generation companies who really aren’t provided leads as they are providing something else, motivation, training, etc…. He said, “If you as the lead provider don’t have enough faith in the lead you are providing me to work, to take your fee at closing, why would I have faith the lead would ever close and why would I pay you up front for it.”

Food for thought?!?!?!?

Property Management, Rentals and Short Sale: The New Niche

From the time we sign up for real estate school, to the most experienced agents with 30+ years under their belt, we have all heard that to be successful in real estate, we need to find our niche. Well, I am here to say that’s a bunch of hog wash. I would go as far to say that by “finding your niche” you’re a signing, your own business’s death certificate. Many of our colleagues found out in 2007 – 2008, when the real estate bubble burst, having a niche meant you didn’t know how to work in a shifting market place. I understand that for most all of us, real estate was steady and predictable so, this niche thinking was rampant, accepted and promoted amongst our ranks however, now we have learned that being a niche Realtor means certain death as real estate become more and more volatile each day.

Now, I say all this but, let’s be honest, REO is definitely a niche, I like to think of it as being the undertaker of the real estate world. Yes, by extension, that means I am a housing mortician. As such, we see highs and lows and we are extremely sensitive to fluctuations in the market place. For some, that’s just fine, we have learned to work with these convulsions and have shielded our lives and business from times of drought however, a vast majority of us ended up in the foreclosure lines ourselves when the real estate market heard those fateful sounds, snap, crackle and finally….POP!

As a Realtor and full time Broker, I have found that taking a more diversified approach to my business offers me and my family a more stable outlook to my career. This means, I have done away with the niche and expanded my income streams to include things like; Property Management, Rentals and yes, Short Sales. I do have some other things I do in real estate like, investing however, that is another conversation for another time. Let’s stay focused on the whole “niche” thing.

True, you can say that each of those three I just wrote about are niches amongst themselves and, you would get no argument out of me here however, all together as a part of your service portfolio, they become more, much more. All together they become an inoculation of sorts, from the market place unpredictability. By adding more services you can offer, you are riding out the waves of instability in the market place by being able to quickly and effectively shift your business to more profitable ventures. Ok…yes, you are still working the “distressed property” niche so…..yeah, it’s still a niche but, it’s a niche with diversification.

Right now, many markets are seeing short sales take over and even outpace REOs however, we don’t see a flood of agents clamoring to do short sales like we did with agents clamoring to get REO assignments and, why is that? Have you thought about that? If not, why not? My argument is, the skills you learned to be a kick ass REO agent are really the same skills you need to be a kick ass Short Sale Professional. I would go as far to say, no real difference exist between the two required skill set that would stop any outstanding short sale agent from being a outstanding REO agent and vice versa.

Granted, short sales are much more time consuming and require much more paperwork but, these things shouldn’t scare you away but, should entice you to add short sales to your service portfolio. Let’s face it, if you can close a complicated short sale, you can close any REO. My bigger point is, due to the complex nature of a short sale, becoming a Short Sale Professional will build on skills you already have or at least, develop skills you don’t have and therefore, making you better in the long run.

Don’t be afraid of short sales, they are fast becoming the new REO. As REO agents, you already have the basic and even advanced skills to be a great Short Sale Professional so, grow a pair and get to work. Your area has hundreds or even thousands of homeowners who need the help of an experienced distressed property agent who knows the front and back of the foreclosure process so that they can avoid the foreclosure if at all possible.

As an idol of mine says, “You beda weeerk!”

The Wisconsin housing statistics are in for May of 2013. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

Strong home sales in Wisconsin for May helped boost prices up, according to the most recent statistical report released by the Wisconsin REALTORS® Association (WRA). The sale of existing homes in May increased 18.2 percent over last May, now the 23rd straight month of positive sales growth in Wisconsin, which helped push the median price up 4.3 percent to a statewide median of $144,000.

“These are very positive signals and represent an uptick from the pace of sales established in the first four months of the year,” said Renny Diedrich, chairman of the WRA board of directors. Existing home sales rose 10.3 percent from January through April this year compared to that same four-month period in 2012. “There’s no doubt consumer demand has been strong over the last couple of years, but now we’re also seeing sellers jump back in the market as well,” Diedrich said.

“Prices showed solid but sustainable growth,” said Michael Theo, WRA President and CEO. "We saw some large increases in median prices in March and April, so it’s good to see more modest increases in May."

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales & prices have been increasing over the past few years. Both Dane and Rock counties are showing marked improvements in the number of homes sold and the price at which they are being sold at. This spring has been really hot for the properties that are priced right! There's been a large increase in the number of home sold, as you can see below.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

Rock Realty Client Testimonials

"I found Rock Realty on the internet while looking for someone to help us sell our house .. I called and talked to Mike, we set up an appt and he got the ball rolling... and wow did he get the ball rolling..he stepped up in every aspect.. the house was all over the net and we had people looking at the house right away .. he was right there every time we had questions and made us feel as if we were his only client.. he worked thru any difficulties we had without any negativities...our house sold Very quickly and Mike really stepped up through the whole process... Our thanks to Mike and Rock Realty"

Scott H. (Janesville, WI)
Rock Realty Seller Client

Thanks for the compliments, and Congratulations on your closing Scott!

Looking to sell your home at a great price!? Check out what Rock Realty can do for you!

Rock Realty Online Marketing Plan

The Golden Era of REO Came and Went with Nothing More than a Whisper.

Since 2008, I have been hearing that banks and lenders are going to flood the market with REO inventory and spark a “gold” rush of sorts in real estate. In fact, I distinctively remember huge parties and networking events around this whole “REO Tsunami” idea however, what we have learned is history repeats its self.

At that time, I like many others, wondered just exactly what was going to happen to all the REO inventory we knew the bank were holding. I like many others asked around and gleaned as much information as we could and ultimately I saw two different schools of thought forming.

The first school of thought or the Tsunami crowd was throwing lavish networking events, hosting charities parties and even organizing education conferences around this whole crowd mentality that the banks and lenders were going to inundate the markets with non-performing assets. I was never a part of this crowd but, honestly…..I did start asking “what is going to have to happen to all this inventory?”

The second school of thought was a more controlled response where the banks and lenders were going to trickle the inventory on the market. The argument here was, banks and lenders aren’t able to flood the market because it would collapse the American economy. Now, this sounded more reasonable to me and this was the camp I was in however, I knew that in the back of my head, somehow, someway, inventory was going to have to move but, I just didn’t know when.

2009 – 2012, agents across the country saw banks clamoring for their help to unload REO inventory. We could put an application in with a non-traditional REO disposition channel and be approved for listings in a couple weeks and in some cases a couple days. Now, granted, getting in direct with organizations like Fannie Mae or HUD was still a nightmare and impossible for most, none the less, the REO Agent ranks started swelling with over puffed up agents claiming to be local experts and before you knew it, every city was swollen with rank and file amateurs selling REO. I remember one large…very large, national outsourcer tell me that they DNU’d (Do Not Use) categorized more agents in 2008 than they accepted applications.

During this time, many could argue we had a “REO Golden Era” but the truth of the matter is, it never lived up to the hype….or better yet, it never lived up to what many of us saw was actually happening in our markets. Just because we had a record number or REO agents out there selling a record number of REOs, we still had homes setting on the market, with no agent sign in the yard, just setting vacant, abandoned and on the banks books as a non-performing asset. In fact, it was so rampant that many of us, myself included really was starting to believe a REO tsunami was definitely on the horizon however, it never came.

Instead of a Tsunami, we got a short sale bonanza or in some areas a property management nightmare. Those professionals who had been around the block in the 80’s knew we would never see a tsunami and they were right….are right however, like I said earlier, it left us all wondering just exactly what was going to happen with all this inventory. What we didn’t know was that the largest holders of REO inventory, HUD, Fannie Mae, Freddie Mac, Bank of America, Wells Fargo, Etc… was going to end up as political punching bags and political puppets for the attempted socialization of the American housing industry. Instead of letting the free market run it’s course, we found ourselves at the mercy of politicians who used the crisis to help re-elect liberal or progressive politicians that promised housing reform. This housing reform was just a guise to put in public welfare policies which would keep people in homes longer even though, it was incredibly obvious these homeowners were never going to be able to keep the home.

Finally, the tsunami will never come because of the push to property management. Many politicians are starting to see the writing on the wall and are realizing that these banks just can’t keep people in the home for an indefinite amount of time and because of such, they now have to rent these homes to the same people who can’t pay the mortgage. Well, at an extremely reduced rate, that is.

You end up with a market place that is overly burdened by government / political influence and that is creeping along (regardless of lame stream media reports) because it’s directly tied to unemployment rates. You end up with high fraud levels because distressed homeowners have no idea what is all happening and turning to less than reputable agents or predators to save their homes and worse of all, you end up changing the homeowner mentality from one of “homeownership is a privilege” to “homeowners his a right”. Once this fundamental transformation of the real estate industry is complete, we will have another entitlement program in this country….housing.

Rock Realty Client Testimonials

"Mike Collins was easy to talk to and very good at explaining in detail all aspects of the short sale of the property. With a lot of patience, he walked me through the process of a short sale. He was understanding of my plight and very sympathetic.

Mike was a pleasure to work with and he is a man of his word.
Thank you, Mike, and best of luck to you."

Tom D. (Oxford, WI)
Rock Realty Seller Client

Thanks for the compliments, and Congratulations on your closing Tom!

How to Buy Investment Properties with an IRA - Step by Step (Part 4 of 4)

Using a self-directed IRA to buy real estate is a sound investment strategy for many people. The ability to buy assets that can provide strong returns is appealing to a wide range of people. Listed below are the basic steps necessary to buy a property in compliance with the IRS rules governing the use of an IRA account.

1. Contact a financial firm that has experience with self-directed IRA’s. Working with a firm that is familiar with these accounts and the real estate transactions is the most important step.

2. Understand the IRS rules. A property bought via the IRA must be an investment home. Second homes, vacation homes and primary residences are strictly prohibited. Furthermore, distributions from the account are not allowed until the owner of the IRA is at least 59 ½

3. Deposit funds into the account. One of the important rules about buying property with an IRA is that all funds for the purchase as well as any other expenses has to come directly from the IRA. The owner cannot chip in extra money to help cover property tax or replacing the roof, in example.

4. All revenue received on the property must be deposited to the IRA account. The revenue cannot be given to the IRA owner or relatives.

5. Take time to preview multiple properties. It is wise to enlist the assistance of a real estate agent who has knowledge with these types of transactions. An agent can recommend properties in areas that have strong rental history. Furthermore, the agent can help calculate the return on investment based on average rent payments for the area.

6. Once you have picked out an investment property it is time to put down an offer. Contact the custodian for your IRA account and tell them you want to buy a property. The custodian will then fill out the necessary forms and sign all real estate documents on the behalf of your IRA account.

7. It is a wise idea to get a contract with a property manager to handle the finances of the property. This will prevent you from collecting the rent payments and making any necessary repairs yourself. A property manager can keep all the transactions clean and legal and free you from the headache of property management.

It is important to understand the rules concerning using an IRA to buy and manage real estate investments. Failing to follow the rules can lead to penalties and possibly loss of the tax advantages associated with an IRA account. When in doubt consult a tax professional before making any decision or transaction with the IRA funds.

This is Part 4 of a 4 Part Series.

Part 1: How a Realtor® can help you invest in your IRA

Part 2: Purchasing Investment Properties for your IRA

Part 3: How to invest in real estate using an IRA

Part 4: Step by Step Guide to Buying Homes with your IRA