South Mississippi is home to several very nice lakes, but often times, it is what is built around those lakes that really makes a community thrive. Windance and Lake Village Estates are built around 100-acre Adam’s Lake, a man-made lake back in the 1960′s that has an abundance of large-mouth bass and bluegill swimming around waiting to jump on the end of your fishing line.

While you won’t find any skiers on this lake as boats are limited to 25hp or less, you will find great fishing and an awesome view. There are a handful of very nice homes on the lake with great views, but if you seek something a little more unique to your tastes, there is 1 very nice property, a little over 2 acres, that is perfect for that serene drop for your new home. At $125k, it is a steal for this much property on this highly-desirable lake.

Call or email me and let’s talk about building your dream home on this lot or to inquire about existing homes in Windance or Lake Village Estates.

The guest post below is by Melinda Carter, Guest blogger. I take no responsibility for the accuracy of the information. If you have further questions, I can recommend a local lender. ~Damion Flynn, Broker

No market in the United States has really avoided the issues that have affected many real estate scenes throughout the country. Some areas have managed to take small, steady hits, staying afloat and looking to thrive in the near future.

One potential sign of the future is the dipping mortgage rates throughout the nation, as well as the Southeast. Even though this type of statistic may seem trivial, these decreases could have a long term impact on the buyer’s market in areas such as the Gulf Coast and other southeast cities.
In the Biloxi real estate market, a 30 year fixed rate mortgage is currently at 4.078 percent. With these mortgage rates dipping into the sub four levels, they are tapping record lows in many areas of the country. The levels throughout the country are lower than they have been in a mere 60 years, but what does this mean for buyers and sellers?

Mortgage rates going so low have had a twofold effect. It has certainly played up a benefit for potential buyers but it hasn’t done too much to drive people into the buying market and away from the rental scene. One positive in this area of the country is the fact that record low mortgage rates are combining with continually rising rental rates. This has an effect on those potential first time buyers who are on the fence, deciding whether to keep renting an apartment or look into purchasing their first home.
A good example of this peaking interest is in major cities such as Biloxi and New Orleans. In Biloxi, the average rental rate is between $650 and $750 these days. With the 30 year fixed rate mortgage at 4.078 percent in the area, prospective buyers may choose to stay away from rising rates. New Orleans apartments are sitting between $750 and $900, as 30 year fixed rate mortgages in the area sit at 4.312 percent.

Mortgage rates alone aren’t necessarily set to drive prospective buyers into the market any time soon, but they could play a role as a factor for those interested in purchasing. In the end, most families and potential buyers will make their decisions based on a set of important factors during their own process. Rather than a focus on recent trends throughout the southeast or Gulf Coast, a purchase is more likely to take place today because a house fits a need for that individual buyer. Although they won’t have a huge effect on consumer confidence, the low mortgage rates can have an effect as a small factor for those who are already interested in buying somewhat, especially in areas such as the southeast where rental rates continue to rise.

Since there are numerous foreclosures and short sales on the market, would it be feasible/legal to place offers on multiple properties at one time?

If you plan to go through with the purchase of every property you put an offer in on, then this is a perfectly accepted practice. However, if you only intend to purchase one property, then the answer gets a little more “gray area”.

There is nothing illegal about placing offers in on multiple properties at one time and I have done it in the past with clients, but only under extreme scenarios. Typically, it is best to put one in at a time as placing offers on multiple properties at once with the intent of only buying one, could present potential issues such as:

1. Multiple offers being accepted at the same time:If you place more than one offer and two or more get accepted at the same time, it is possible that you could effectively be under contract for two different properties at the same time. There are contingencies that can be added to the sales provisions that would make it fairly easy to get out of a contract, but you do not want to be under contract with two different properties at the same time unless you are using it as a strategy to lock the property up in a fast-moving area. Doing this definitely needs to be discussed with your REALTOR® so there is no doubt what you are doing and apprpriate measures can be taken to minimize the risk of your earnest money.
2. Asset Manager blocking: If both properties happen to be foreclosures, managed by the same servicing company (Wells Fargo for instance, not necessarily the same listing agent), and you are accepted on both properties but find issues with both and do not end up closing on either, you could actually be blacklisted from putting in offers to other assets (foreclosures) by that company.

There are other inherent dangers in using a practice of putting in offers in on multiple properties, but these are probably the biggest issues. If you are pressed for time on your house-hunt, you could use better strategies. Work with me to find homes you love. We will put in the first offer and if we are unable to make a successful deal, we can have a list of 2nd and 3rd choices. Then, we just move down the line. I can either write the offers and email them to you (you print, sign, and email/fax back). This is the most efficient way of doing things and assures that you do not run into any “sticky” situations.

What is the difference between a buyer’s agent and a seller’s agent? Also, why should I use a buyer’s agent?

The simplest version of your first question is that a buyer’s agent represents you as the buyer. A seller’s agent represents the seller. If you call off a sign in the yard, you are calling and speaking directly to the seller’s agent. The seller’s agent has a job and is bound by a fiduciary responsibility (see agency relationships) to get the most money and best terms on the sale for their seller. A buyer’s agent will represent you and get you the best price and the best terms for you.

To expand on why you should use a buyer’s agent is pretty straightforward. Most of the time, using the services of a buyer’s agent does not cost you any additional money. The seller’s agent typically has already agreed to a percentage of the sale to go to a buyer’s agent. If you contact me to represent you as a buyer, I will negotiate the best terms for you in the purchase of your new home and will almost always be paid by an already agreed percentage from the seller.

You can start by searching for homes on my site. Most of these homes are listed by other agents and I would represent you as the buyer.

As I deal with a lot of investors, I often run into deals with Options, Lease Options, and Lease Purchase agreements. The problem is that these terms are often used interchangeably because many investors have received bad information on what they actually are. “Lease Options” are often pitched to investors in a “sexy” manner but nine times out of ten, they person pitching them is using the terms incorrectly. This brings us to a question that was recently asked (and recently misunderstood by another):

What is the difference between an Option, Lease Option, and Lease Purchase?

An Option is easiest defined in the manner in which it is stated. The buyer has the “option” to buy it. He also has the option not to. An option by itself has no lease attached and typically no other tie-in agreements. There may be an option fee associated with purchasing an option (or there may not be). Options are used primarily by investors, but also may be used by buyers who are nervous about certain external aspects of a property. For example, an option may be used to give a buyer the ability to buy a property at a pre-negotiated contract value/terms at some point in the future. A personal experience where this was used was when one of my buyers put an option on a piece of land where he wanted to build a gas station. There was a new road getting ready to come through and he did not want to buy the property if the road was going to dissect the property. He put the option on the property until the department of transportation finalized the plans for the road. Options typically:

• Have a predetermined/pre-negotiated contract in place and the buyer has the “option” to purchase at some point in the future
• Have a fee associated with obtaining the fee. This can range from $1 to several thousand dollars and is usually determined by the motive of the option (someone just wanting an option to pre-negotiate  deal while waiting on an external source such as department of transportation is called an “innocent option” and is usually not costly where an investor trying to tie up a property to resell or assign the option may have a higher fee associated with it). Option costs are also determined by the length of the option. An option for a few months may be next to nothing where an option for a few years would be substantially more
• Owner of the property cannot sell to anyone else while the option is in place
• Are typically easily assigned or transferred by buyer without consent by seller unless specifically noted otherwise in option
• Have an expiration. If a buyer does not exercise his option within the time period – it expires and he loses option and typically any fees associated with obtaining the option (the option fee which could have been as little as $1 or quite substantial).
• Come without obligation. The buyer has an “option” to buy property but he is not obligated to.

Now, this brings us to a Lease Option. The only real difference between an Option and a Lease Option is that a Lease Option also has a lease attached. Think of this like renting a place (the lease) and having the ability to buy it at any time during the lease period. In a lease option, the option may be easily assigned but often times, the lease is not. A perfect example of a lease option is the a buyer really likes a home but he has to sell his first before he will qualify for a loan or there may be other issues associated with obtaining financing. He may negotiate the terms of the purchase agreement up front using the option, and then you attach a lease so he can move in now and the seller can cover the note. Lease options are very popular among investors and vacant properties because it gives the seller the ability to have money coming in on the property during the interim while buyer is getting their financing together.  A lease option is nothing more than a lease [with an] option to purchase.

Now, this brings us to a Lease Purchase. This is probably the most under-used term for what it is. Often, investors and real estate professionals alike, substitute the term lease option for lease purchase. In fact, there are entire books written by real estate agents who improperly use this – no wonder the investors are confused! A Lease Purchase is pretty easily understood once you have full understanding of options and lease options.

• A Lease Purchase agreement still includes the lease and an option, HOWEVER, the buyer (or tenant) is responsible for things such as insurance, taxes, HOA dues, and other basic maintenance items as well as mechanical issues, and any other expenses
• The “option” in Not Really an option – it is more of a convenience fee
• Buyer is typically obligated to purchase under a lease purchase
• A Lease Purchase is also typically classified as “Rent to Own” and some portion of the money from the lease may (or may not) be applied toward a future downpayment for the purposes of a bank loan
• May be called a “Land Contract”, “Land Trust”, “Deed Contract”, “Contract for Deed” or other terms which are more in the legal realm than the investor/real estate realm.

Options and Lease Options are typically used when a buyer is not 100% sure if they want to buy a property or if they just need a small amount of time to determine their ability. Lease purchase agreements became really popular in the 80′s when bank rates were very high and sellers were willing to finance to buyers under long term loans (seller financing). They have since become an instrument for investors to sell to people who may not otherwise qualify for a loan or need a long-term solution to get prepared. A lease purchase agreement could last from 1 year to 10 years. An average is 3-5 years with the ability to renew if necessary.

If you are considering any of this as a viable solution for your properties or as a buyer, I urge you to contact me, quite frankly because there simply are not that many people in our area that fully understand this and you run the risk of serious issues if you do not know what you are doing – or have someone that does!

Land Contract or Contract for Deed

A Land Contract, also known as a Contract for Deed, is a seller-financing arrangement which is most typically referred to as a Lease Purchase. In this type of financing arrangement, the seller continues to hold title to the property, but the buyer will hold a contract in place of the deed (this is where the term contract for deed and land contract come from). Under this arrangement, once the contract terms are fulfilled (final payment term is made), the buyer will receive the equitable title, or deed for the property. There are many ways to structure a land contract and these terms should always be included in the contract:

• Monthly Note with Balloon – Under this agreement, the buyer will typically make payments at a predetermined interest rate for a certain period of time that can range from only a few months to many years. The “balloon” payment is due at the completion of contract. This is the most typical contract and is typically 3-5 years. If, at the time of the balloon, the buyer is not able to pay it off, there may be a clause in the contract to extend or modify the existing agreement. The most common way a buyer pays the balloon is by refinancing with a mortgage lender.
• Monthly note with no balloon – this is more of a mortgage type contract which is typically much longer and may range from 10-30 years. The seller is ultimately acting as the bank and is completely financing the deal for the life of the loan or at some point which the buyer wishes to get a new loan (or is capable of doing so)

Homeowners Mortgages

There are many types of mortgages available, both conforming and non-conforming loans. With recent mortgage changes, non-conforming loans are much harder to come by, which is typically a non-issue for most buyers. A conforming loan just means that it “conforms” to government guidelines. Such loans include:

• Conventional – these loans are your “typical” bank loans
• FHA – Federal Housing Authority loans which offer decreased down payment amounts
• VA – Veterans Administration for qualifying members of the armed forces and certain other US Government jobs
• USDA – United States Department of Agriculture offers loans for purchases in rural areas

There are many other loan programs and it is best to talk with a lender for your specific needs.
~This guest post was written by freelance writer Victoria. Currently, she is enjoying working on a project for
Gulvafslibning Priser.