Home prices dropping

Home prices are still dropping in some areas, according to a KMOV article:

"prices fell in 15 of the 20 cities in February compared with the same month in 2011. That indicates that the housing market remains far from healthy despite the best winter for sales in five years."

It's not the greatest news ever, especially if you are trying to sell a home. However, if you are interested in buying rental properties, now is still a great time to buy units. We have services available for investors looking to get started or for investors who already own units. Please contact us for more information about how we can help you.

Shadow market

 I came upon an interesting article about the "shadow" market of foreclosures. This article, while detailing Southern Florida, was very informative. I particularly liked this quote:

"At this rate, Verna figures it will be three to five years before lenders let all the homes go. The risk is that, by moving too slowly they could artificially raise prices in some areas, which might spur investors who bought homes as rentals to put them up for sale.
'The truth of the matter is we would have already gotten over it if they just let the properties get out there and get sold,' Verna says. 'So what are you doing? You're not stabilizing the market. You're creating more chaos.'"

If you are interested in investing in the real estate market, we can help. We are ready to be your property management team. We will find tenants, maintain or renovate the property, and take care of most of the hassles involved with being a landlord. (Sorry, you would still have to write the mortgage check each month. That's one service we don't offer.) Please contact us today for more information.

Goodbye St. Louis?

It's no surprise that cities that have thrived on manufacturing jobs for so long as dying out. Manufacturing is slowly being shipped overseas. A lot of these cities are emptying out as the jobs leave. St. Louis is one of them. Some "experts" think that these cities will just die out and be abandoned over time. But it doesn't need to be that way. According to an interesting article I found:
"Globalization taketh away—but it also giveth. Cities like Buffalo or St. Louis now have access to things that even people in Chicago didn’t not that long ago. Amazon, iTunes, and a host of specialty online retailers put the best of the world within reach. Where once you couldn’t get a good cup of coffee, there are now micro-roasters aplenty. Where once your choices were Bud, Miller, or Coors, an array of specialty brews are on tap, often brewed locally. Restaurants are better, with food grown locally and responsibly. Slowly but surely the ship is turning on sustainability, with nascent bike cultures in almost every city, LEED certified buildings, recycling programs, and more. House by house, rehab by rehab, neighborhoods in these cities are starting to come to life."

New people are choosing to live in these areas. Why?
"No, this new generation of urbanists sees these cities with fresh eyes. They see the decay, yes, but also the opportunity—and the possibilities for the present and future. To them this is Rust Belt Chic. It’s the place artists can dream of owning a house. Where they can live in a place with a bit of an authentic edge and real character. Where people can indulge their passion for renovating old architecture without a seven-figure budget. Where they have a chance to make a difference—to be a producer, not just a consumer of urban life, and a new urban future. Above all, these people, natives or newcomers, have a deep and abiding passion and love for the place they’ve chosen—yes, chosen—to live."

St. Louis may be one of those cities that are generally looked down upon, but it has a rich culture and history. And really, where else can you potentially experience a tornado and an earthquake the same day? (Yes, the Mississippi River follows a fault line, in case you didn't know.) St. Louis is interesting and unique and deserves to be revived. We are interested in working with people who want to invest in St. Louis. We are ready to be your property management team as you purchase investment properties. Please contact us today for more information on how we can help you get the most out of your investment properties.

Housing market rebounding

A news article found on the KMOV website certainly makes the housing market sound promising.

 According to the article: "The past two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. And the sales pace in January was the highest since May 2010, the last month that buyers could qualify for a federal home-buying tax credit...

Mortgage rates are near record lows. And the supply of homes fell in January to its lowest level in seven years.
A lower supply helps push up prices, which lures more sellers onto the market and generally improves the quality of homes for sale. Rising prices also boost sales because buyers want to invest in homes that are appreciating in value.
A key reason for the brighter housing outlook is the job market has strengthened. From December through February, employers added an average of 245,000 jobs a month. The unemployment rate has fallen to 8.3 percent, the lowest in three years."

If you are looking to invest in prime real estate, now is the time. As the economy recovers more fully, there will be more competition for the best homes available. If you need a property management company, Provident is ready. We are experienced and able to provide all the services you may need. Contact us today for more information.

Good news for St. Ann

If you live near St Ann, MO (near the St Louis International Airport), there is some good news going around.

According to the St Louis Post Dispatch, "a St. Louis developer has stepped forward with a plan to tear down most of Northwest Plaza — once the largest shopping mall in the world — and replace it with offices, big-box stores and restaurants."

 This redevelopment would bring new vitality to the area. Home prices would likely increase as the surrounding area improves in nature. Luckily, St. Ann has a lot of homes for sale. Now would be a great time to invest in properties in the St. Ann area for rental purposes. If you are considering rental properties as a way to diversify your income, we would like to invite you to consider Provident Property Management for your management team. We will do all we can to get your units ready, rented and reliably maintained. All you have to do is collect a check at the end of the month. Please contact us today for more information.

Historic building tax credit use increasing

Missouri has a lot of history. Though Native Americans lived in the area for a long itme, European colonization started in the 1700s. Statehood was famously granted in 1820 and from there the population grew and grew. Thanks to this long history, there are a lot of historical buildings. Many of them need renovation to make them safe and usable. Missouri has had a Historic Preservation Tax Credit program available to renovators that repays a quarter of the cost to renovate a building. According to a St. Louis Today article, use of those tax credits declined incredibly during the worst of the recession. However, recently there has been an increased interest in the credits. This is a good sign, as it means that the economy is recovering and people are focusing more on preserving the past, rather than just worrying about the present.

While we are not in the business of rehabbing historic buildings, we are in the business of getting your rental property up to snuff so it can be rented quickly and easily. We can help with maintenance issues and arrange for any work that may be scaring renters away from the property. Please contact us for more information.

Don't shoot the messengers.

As we struggle through the low housing market, a lot of people are often upset when the appraisal doesn't come in to match the contract or desired sales price. The Appraisal Institute says "hey, don't blame us!" To quote a recent handout for realtors: "Appraisers don’t set the real estate market; they reflect what’s happening in the market,” Sara W. Stephens, the Appraisal Institute’s president, said in the handout. “Obviously, the market is depressed — home prices have fallen far below the values of a few years ago. Many homes simply aren’t worth what their owners think they are."

Despite the poor market condition for sellers, now is a great time to buy. If you are looking to invest in real estate, please contact us for more information on how we can help. We are ready to be your Property Management company.

More good news about the housing market

There is good news on the housing front. According to an article on STLToday.com, fewer homeowners are facing possible foreclosure.

Jay Brinkman, the mortgage bankers' chief economist, said "employment is the key driver of mortgage performance" and noted that the number of delinquent mortgage payments is falling faster than the nation's unemployment rate. Higher unemployment typically leads to more missed payments and a greater number of foreclosures over time.

 As foreclosures slow down, there are still a lot of homes on the market. The time to invest is now. If you are looking to start investing in real estate, contact us to see how we can help. We are ready to become your property management company.

Demolition in St. Louis

St. Louis has a lot of history contained in the architecture around town. Due to age and condition, some older buildings need to be demolished if they are unsafe or cannot be made safe. Such was the case for the Avalon Theater in the 14th Ward. It was an old one-screen movie theater from the Great Depression era.

But luckily, some people can and are willing to renovate in order to stabilize the building and preserve it for future generations. An 1880s house in Kirkwood is being raised on lifts so that a new foundation and basement can be installed to improve the building. It's worth clicking through to see the pictures of the house way up in the air on steel beams.

It's encouraging to know that even when it may be easier to raze a building, some of them are being preserved for the future. If you are interested in investing in a building that may need some renovation, our sister company Provident Development Group can help. Contact us for more information. And as always, we are ready to manage your income properties.

Bulk foreclosure sales possible

There's a new idea afoot in Washington: sell bulk lots of foreclosed homes to investors to create rentals. It's an interesting idea. There are a LOT of foreclosed homes that are currently just sitting on the market. There aren't enough individual buyers out there to purchase all these homes. There is definitely a market for rental properties though. All the owners losing their homes need somewhere to live.

One of the more interesting sections in the article is when the author discusses why more investors aren't purchasing homes. To quote:

"I think there is a fair amount of money in the wings waiting to buy, investors doing cash raises to buy properties on a large scale," says Laurie Goodman of Amherst Securities. "But that means they have to build out a rental organization; it means they build out a management company because if you're accumulating a hundred homes in Dallas that's very different than running a multi-family building."
A number of institutional investors have shown appetite and interest in bulk REO deals, according to officials, but the plan has to incorporate ways to help facilitate financing. That has been one of the biggest roadblocks to deals already in the works between hedge funds and the major banks. Sources close to these private bank negotiations say there is plenty of cash to buy properties, but building out a management structure for the rentals is pricey, and some investors are finding the math doesn't add up to make it worth their while."

What's that you say? Investors will need a management company if they suddenly acquire multiple homes. Provident Property Management is here to help. We can manage your properties whether you own one or one hundred.  Peruse our pricing structure, then contact us for more information!

Real Estate Market News: Home prices down

It's not great news if you are trying to sell a home, but it's wonderful news if you are looking to buy. According to the St Louis Post Dispatch, home prices in St. Louis have fallen again.

"Prices in November were down 4.7 percent from a year earlier, the firm reported today. That followed a 3.8 percent year-over-year decline for October.
Sale prices tend to vary by season, CoreLogic says, so the firm uses year-over-year comparisons to track trends.
The trend looks less negative when distress sales are excluded. Sales prices for non-distressed properties were down 2.3 percent in November and 2.1 percent in October.
Nationally, all home prices were down 4.3 percent in November and 3.7 percent in October."

Now is a great time to become a real estate investor. If you know anything about how to become rich, you know that passive income is a great way to diversify your income stream without requiring much work on your part. A passive income is anything that pays you money without a daily input from you. A blog may require a lot of effort, but the ads on the side generate revenue without work. A rental unit works in much the same way. You buy the home and pay the mortgage, but the renter pays you the mortgage back and hopefully more on top. By securing the help of a top-notch property management team, owning a single or multiple rental units becomes even easier. The property management team will secure new tenants, deal with maintenance issues, and cut you a check at the end of the month. Sound like a sweet deal? Contact us today so we can help you. We want to be your property management team!

Bolstering community pride by stopping vandalism

Today's news article doesn't have much to do with real estate investment or tenant-landlord relationships, but it does have to do with something else we are interested in: community pride. The article is about St. Louis area brick being stolen from abandoned houses. The brick is prized for its rich color due to the natural color of the soil in the area. Unfortunately, the thieves are leaving dangerous shells of buildings behind that can collapse at any minute.

Community pride is important. When we are proud of where we live, we take care of it. We care for our neighbors and those around us. We care for the buildings and the streets and the green spaces. We want what's best for the area. These thefts are seriously damaging the communities they occur in. The pieces left behind are unstable and ugly. The city officials are left with the task of safely demolishing the rest of the building, and the list of buildings to demolish just gets longer. Luckily, there is a plan being discussed that will hopefully stop or deter the thieves.

If you own a vacant house, don't just let it sit and gather dust, or become a potential target for vandals or thieves. Provident wants to be your property management company. We can fix any cosmetic problems and minor structure issues and then find a tenant for your units. If there are larger problems, our sister company Provident Development Group has the experience and resources to correct them. Please contact us today so we can talk about how to help you make money.

News from St Louis

Check out this interesting article on the cost of foreclosure in St Louis. Foreclosure mitigation makes sense in light of this article. But the good news is, with so many foreclosures now is a good time to invest. If you are looking for a monthly income from rental properties, Provident Management is ready to help. Please contact us for more information.