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: http://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'm not sure; so please feel free to inform me. I just know that it's being done by reputable attorneys.
Referrals It's amazing how much money you can make from referrals, if you become sensitive to that stream of income. Let your clients know that you can help them locate the best agent for them, whether they need to sell outside your area of service, or are interested in buying, or investing in a Resort location. I pay a 25% referral fee right at closing, and Myrtle Beach is on lots of baby boomers vacation investment wish list. Send them my way! You know I will take very good care of them, and be a good representation for you. Whenever I refer clients, I actually do my homework. If it's in an area where I don't have an agent I already know is great, I will do "due diligence" and interview several agents. I look for experience, designations, good moral values, and a good attitude. Make sure you do all the paperwork up front showing the terms of the Referral agreement and get it signed by the Broker in Charge of the company you refer the client to.
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!
Myrtle Beach Homes by Mirela Monte, GRI, ABR, BIC, SC, NC