Albany NY Real Estate

If you are a first time home buyer looking to buy now is the time. Prices are reasonable, New homes are hitting the market everyday, rates are down, and you may be eligible for an $8,000 tax credit from Uncle Sam you don't have to pay back!  However, time is of the essence to obtain the credit! You must purchase a home by December 1, 2009 to be eligible! Even if you have owned a home before but not in the last three years you  may be eligible for this program. Call or email me anytime for specifics on this deal. Don't think you have enough for a down payment? Call me!  I had a buyer lock in a 30 year fixed rate on an  FHA loan at 4.875% on Friday! The beauty of this FHA loan is she is only putting 3.5% down. If you are thinking of buying a home there hasn't been a better time in years!  Visit me online anytime for a list of homes for sale or more information on any of these products at Albany NY Real Estate first time Buyers  Also be sure to check out the new market snapshot reports I am providing free of charge with the link below. It will help you get a handle on how the the market is performing and what price you should be paying! 

Free Albany NY Real Estate market analysis

I met with a couple of downstate investors today who said they were fed up with the inexperienced real estate"kids" they had spoken to about purchasing investment property. It made me remember what I have always told buyers. Don't ask your agent how many homes they have sold. Ask them how many homes or buildings they have owned themselves.  I work with investors all the time and I am active in the market myself. Here is a home I purchased this week. No I didn't have any inside line on this. I purchased it straight out of the Multiple Listing Service just like any buyer could have. It illustrates there is still money to be made in Albany NY Real Estate. These are actual numbers in a student rental section of Albany.

Purchase price $110,000

Taxes-$4586 (property is assessed at $158,000 so this should be coming down)

Insurance $780

Loan amount $88,000 at 6.12%

Monthly payment =$534.41+$382 (taxes)+$65 (insurance)+$38 (Water/sewer)= 1019.41

Total monthly payment at current assessment is $1019.41

Total rents will be $1950($975/unit)

Monthly cash flow=$930.59 or $11,167/Year

Total cash investment including closing costs, down payment, attorney fees, title insurance etc =$23,776.

Cash on cash return at full occupancy=$11,167/23,776=46.9%

Ok Additional outlays will include a couple of thousand bucks for paint and cosmetic updating. However the total return will still be over 40%.

Great returns are possible in Albany Real Estate! If you are interested in adding a home like this to your portfolio call or email me at Albany NY Real Estate

I work with investors often and list and sell investment property all the time. I will often run ads indicating 25% cash on cash return, etc. I always get calls or emails asking me how I figured the return. Often I am told my numbers are wrong. 

I always figure the cash on cash return using the power of leverage with typical financing terms. Cash on cash return is the number one measure of investments most investors should be looking at in my opinion. Its not cap rate, its not Gross rent Multipliers, its the same measure Warren Buffet likes to use.  I like to use realistic numbers and never assume a purchaser is paying cash. By taking a loan and using leverage your cash on cash return is increased.  Here is an example.

Typical 2 Family purchase: (using round numbers for ease of calculations)

Sale price:$100,000

Rents:$1,200 (600/unit/month)

Taxes:$3,000 ($250 Month)

Insurance: $600 (50/Month

Water/Sewer: 480 (40/month)

Tenants pay their own heat and electric.

If a buyer pays cash the returns are as follows: $14,400 total income less $5,280 in operating expenses. Results in a net income of $9,120.   $9,120 net income on $100,000 cash equals a 9.12% cash on cash return.

Now lets assume the investor buys the same property with 20% down and finances the remainder with a bank. Typical investor rates right now are at 6%. Therefore, payments on the $80,000 loan would be $479.64 or $5,755 a year.

Net income now would be  $3,364. ($9,120-$5,755)  However, keep in mind on this example the investor has only invested $20,000 of  his own money. In this case his cash on cash return is $3,364/$20,000 or 16.8%. Remember, In this example, the investor still has $80,000 in the bank to be used for other deals.

Leverage when used effectively can allow you to build a larger portfolio of properties and significantly boost your returns.  If you have questions call or visit me online at Albany NY Rental property

It was a pleasure and honor to be named as one of the few independent brokers to the  top 100 Real Estate agents in the 2/27/09 addition of the Capital District Business Review. I couldn't have done it without the loyal support, friendship, and referrals from all my past clients and friends. So thank you!  The last time I looked there were roughly 3,600 active real estate agents in the capital region. Our market is extremely competitive.  2008 was a good year but I don't think it was a particularly great year. I think we have room for vast improvement!  As I look forward to 2009 I have made significant changes and implemented numerous systems to improve efficiency and overall customer service. 2009 has started out strong and will hopefully  remain that way. I am Looking forward to a truly spectacular 2009! Thanks again for your support and referrals! As always if I can help you in anyway even if it has nothing to do with real estate please let me know!

 Sincerely,

Kevin Clancy

518-861-7016
kevin@clancyrealestate.com
http://www.clancyrealestate.com

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There appears to be a huge misconception about Short Sales. There are many many short sales listed for sale in our local Multiple Listing Service but not many people very familiar with the process. I submitted an offer for a buyer a few weeks back on an advertised "short sale" only to be be told it was unacceptable on a Saturday. The agent didn't know who the bank was and there is no way she could have contacted the bank on a Saturday. Short sale are a tedius process but if handled correctly the process goes much much smoother. Here are some typical requirements of a good short sale package. Note many of these should be obtained and put together before the home is even put on the market. Also it is important in my opinion to keep the lines of communication open with the bank. Every bank is different but the following are typical elements for a short sale packet

1)Authorization to allow me as your agent to negotiate and discuss your situation with the bank

2)A hardship letter

3)Recent pay stubs

4)Recent bank statements

5)Recent tax returns

 6)A broker price opinion (BPO)

7)Pictures of any home damage or deferred maintainance

8)Area economic news (Layoffs, unemployment,etc)

9) Copy of the current listing showing Days on Market

10)Estimated HUD-1

11)sales contract

Present this info to the bank in a complete package the process will go much much smoother. For more info visit http://www.albanynyshortsales.com

The President's economic stimulus bill is proving to be a winner for first time home buyers in Albany. If you are a first time home buyer you may be eligible for up to an $8000 tax credit if you purchase a home and meet certain other requirements. This is a straight tax credit not simply a deduction. The beauty of this plan is it never has to be paid back unlike the watered down $7,500 version previously released. Here are some of the qualifications for the program in short.

1)First time home buyer -can qualify if you have not owned a home for 3 years

2)Must make less then $75K or $150K for couples

3)Must purchase a home between 1/1/09 and 11/30/09.

4)Credit is 10% of the value of the home or $8,000 whichever is less.

5) Must live in the home for a minimum of 3 years

If you have additional questions on this program visit my website at Albany NY first time home buyers

Description and Features

Bedrooms: 4 Bathrooms: 2.5 Square Feet: 1834 Lot Size: 52272 Year Built: 1988

Location

Click to view map: 22 Indian Maiden Pass Altamont NY 12009

Links

Albany NY Real Estate Altamont NY Real Estate Albany NY Real Estate Blog Listing Website

Motivated seller has reduced the price and encourages offers. Visit us directly online at http://clancyrealestate.com for additional pictures and information!