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What is a Special Warranty Deed?
A deed to which the Grantor (Trustee) warrants, or guarantees the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time. We also now provide you a document clearly identifying which trustee was given the right to buy and has limited authority to see this lot as well.
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Is the Winning Bid the Total Price or a Down Payment?
The Winning Bid plus the Buyers Premium of 10% plus a Paperwork preparation and Shipping fee of $349.00; plus the recording fee equal the total price for the property. We do have parcels at this time that we are accepting down payments on. Ask Our Trustees to explain the Bid on the down payment and Assume the payments on property. On a cash purchase you are buying the property outright; your winning bid with the additional fees as outlined in the terms of the auction will purchase you the parcel. On Bidding on the down payment it is exactly as it says your bidding on the down payment for that property. You qualify automatically through our Non-Qualifying criteria to assume the payments as specified on each property. Again as before if the property is for sale at an auction house you will be notified that you are the winning bidder. We will then send you a congrats letter and specifying the procedure in completing this transaction.
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Is a Winning Bid a Commitment to Purchase?
Yes. If you are bidding on the property, we understand that you are purchasing it and have done your DUE DILIGENCE. If we sell our property through an auction house and a bidder does not perform according to the terms which they agreed to when the bid on the property, we will instruct the auction house to cancel that Bidders account and we will no longer sell our property to that Non Performing Bidder. If we sell our property from our web site and a Viewer becomes a Buyer he/she is agreeing to the terms and conditions through our online purchase agreement. See terms and ask questions before you contract commit to buy.
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What is DUE DILIGENCE?
Due Diligence is the research you, as the buyer, complete before making a bid. This includes questions to the County, and Trustees, or a visit to the parcel itself. We strongly encourage you to feel satisfied about your knowledge of the property before bidding. Please note as well banks do not lend money on dirt. If you do not have the funds to buy the property, do not bid and be awarded the property as the high bidder thinking you can go to the bank and acquire a loan. As the winning bidder or the highest bidder you have 48 hours or 2 days to complete the transaction and pay us in full for the property along with the deeding information. There just isn't time for you to go to the bank and acquire a loan to buy the property. If you do not have the money then do not bid..
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Is there Legal Access to the Property?
In the Pocono Mountain Private Developments with the recorded deed in your possession the security guards and or the property owners association will allow you into these communities to see the parcel you have purchased. Normally if you go during the week the same security guard and or the property owner association will allow you to go to that parcel and view the land yourself. Commonly they will put a guest pass sign in your vehicle while you are visiting. Always make sure you check into the office at these Private Developments and follow their requests and instructions. In general, nearly all properties have legal access and by law, no property owner can reasonable withhold the right access to owned real estate.
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What is the Parcel Zoning?
Most of the parcels owned by Our Trustees are zoned as residential. Please check the ad and the web site and or check with the County for the current zoning status.
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What does it cost to Build a House approx.?
Lets say that you bought a ¼ of an acre lot for about $14,375.00, [Ours is on sale for a Buy-Now of $8,282.00] or just under 30K for ½ of an acre, could be more, could be less depending on the location. You want to build a modest house in the woods, you figure that the right size for you, is about 1,400 sq-ft, not including basement. At a modest $135-140 / sq-ft of cost to build you are looking at $189,000 – $196,000 (135sq-ft x 1400sq-ft home). As custom home Builders our price to you if you use us to build your home will be 14% less then that price or a discount price of $162,540 - $168,560. If you include the land, now you are in it for $170,822 (8 + 162), if you want a finished basement add another 30K……Remember, if you want finishes that belong in the Trump Plaza your cost will always go up…..You can play with the numbers depending on the size of the home you want.
What kind of money can I make approx as rental property?
So now, let’s figure out how much you have to rent this property for in order to make some money or perhaps to just break-even. Let’s assume you were able to finance 100% of construction which is not at all uncommon, 7% on $300,000 is $21,000 of interest only payments annually, which translates to roughly $1,750 / month of payments that you are responsible for. Don’t forget taxes and insurance which are usually specific to the location and the type of home built, but let’s stick with just the main numbers for now….
As I mentioned at the beginning, let’s treat this particular scenario conservatively,….. Let’s not go crazy here!!…..So, we only rent it only for 15 days out of the month, at a rate of $170/night. That equates to 2,550 / month, roughly a difference of about $800 / month or $9,600 / year of positive cash-flow. Even if subtracting taxes and insurance you are still in the black.
An absolute and utter disaster would be to break even or perhaps having to dish out a couple of hundred dollars a month to cover expenses, but even if that were to be the case you still have an asset that continues to appreciate year after year in a beautiful location, with an audience ready to listen to what you have to offer, in a market that gets stronger as time passes, and as a proud owner of a vacation home that you and your family and friends can use at any time.-Awesome-
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Is someone available to help me locate the parcel?
We do have a realtor available in the Pocono Region who can meet you to go look at the property. In the case of Arrowhead Lakes Community, You will be required to have a Realtor with you to gain entrnace to the community. Please call us before you go to look at the property so we can put you in contact with our Realtor and arrange a time to meet the Realtor. For our other Pocono Communities, the Realtor is available to assist but not necessary. We do not have Realtors available to provide this service in any other area of the country at this time.
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How do you estimate the land value for the properties?
As a retired mortgage banker I know from experience that dirt isn't worth squat without a house built on it. Dirt however with a house built on it is worth what the average amount has sold for of similar houses in the last six months.
What we have done is to go to www.realtor.com as shown on our web site, typed in the area code and their service provided us a list of property on the same size building lot as the property we have for sale.
With a house built on this land the equity in the dirt is worth 1/4 to 1/5 of what the total house would appraise for. Our web site is third party verification. We do not create anything. the information that is provided there as well as what we provide on the auction houses we use is provided to us by a number of different sources, to name a few are realtor.com, homegain.com, globeXplorer.com, yahoo.com, mapquest.com, topozone.com, mapping department at the counties where the property are deeded, through a variety of Realtor and Builder sites, etc. The information we have provided is accurate and correct based upon the comparables provided to us by Realtors.
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Who is Accolade Dream Homes. Do I have to use them to build on land I purchase from you?
Accolade Dream Homes is developing and building property in Carbon and Monroe County because the nature of the properties [primarily land that has central sewer already available to be brought to each building site] and that they own the land. For now you can just pre-purchase the land and have your new home built at a later time. In many cases you can purchase with a commitment fee and make payments on the balance till the land is paid for and then use the 0% financing that their mortgage bank can arrange for you to have your new dream home built by Accolade Dream Homes on that same land.
You do not have to use Accolade Dream Homes [other then through their land/home packages program), you can use whatever builder you want to use. However, we feel confident as we can save you money when you buy the land, Accolade Dream Homes can save you 14% off the retail price of the cost to building your new custom home.
What is the Commitment fee about?
The commitment fee is paid the following terms apply: Visa/MasterCard, Discover & American Express processing done through International Card Services & Link Point for the deposit as a commitment fee, whichever is applicable, which will be due within 48 hours of the close of the auction. A Bank Cashiers Check or a Bank to Bank wire transfer [details are provided to you with our Congratulations Letter after you are awarded the property as the Winning Bidder] of the balance of the high bid will be due within 4 business days of the close of the auction. If a commitment fee is not paid, the entire purchase price will be due after the end of the second business day. Due to the higher processing cost no personal checks are accepted. Call us if you have any questions. |
Will you take a credit card for the entire amount?
As indicated above and as outlined in our Congrats letter the answer is:
'No'. The terms indicate in the ad, because of e-commerce credit card fraud we only allow a deposit to be made by credit card for $500 in USD. If you want to pull this from your credit card to take a 'Cash Advance' then your bank can do that for you and send to us in USD the amount specified in the congrats letter.
As is sometimes common in business and since the e commerce business is new it hasn't found ways to totally protect its merchants.
Briefly what the e Commerce industry has informed has happened on real estate is that a buyer could enter the full amount on his/her American Express or another credit card, a processing statement would come to the merchant saying that you have paid in full by credit card, then accordingly according to the Real Estate laws you would have paid for the property and it would be deeded to you. However what can also happen because of E Commerce is the buyer can go backward on the computer and change the dollar amount from the full amount to $1.00. There by really buying the property for $1.00. The merchant would not be apprised of this to several months after the transaction is completed. So if we allowed you to pay by credit card you could by a slight of hand make it look like you have paid for the property in full yet in essence paid only $1.00 We do not think or believe you are that type of Buyer yet there are those out there that are like that.
We choose not to allow the E Commerce even with secured account to perform so inefficiently, our web master has designed a program whereby you can make a predetermined commitment fee. So if you want to use your credit card according to the terms you agreed to, the credit card deposit as a commitment fee will be $500 with the balance due within 2 days by either a Bank Cashiers Check in US Funds for the balance or a Bank to Bank wire transfer of the difference is USD.
Unfortunately because of others fraudulent activities, we as merchant with our 500 successful auctions through our affiliated company Reality Homebuyers Incorporated have devised a system and the proper steps to allow the real buyers to buy safely and those who would defraud merchant to take their activities to other merchants. Remember at these prices, when these are gone there are no more. |
What is your Guarantee?
We Buy property right so to the best of our ability there are not any back taxes and back association fees and if they are then we have either paid them or we tell you to the best of our knowledge what they are. In most cases Buying property from us is like going back in time and buying the land from the original developer and then coming back here to days timeline and selling it at a tremendous profit or improving the lot and having an equity in the land as a down payment. How much profit you make of course depends on what you sell it for through those classified ads.
The best way have been told by others is to sell the property you buy through classified ads. Once the deed is in your name you can make sure that the buyers buying from you if you are selling property you bought from Us, Is that these lots are lots that most likely will need to be developed. Someday after they have been developed they will be great lots. With our permission you can use our information as long as you acknowledge Us. Using classified ads you can represent honestly what the lots are. Realtor provide a good source for value yet in selling development lots you don't want to be paying for a perk test which is only good for 6 months and incurring a whole bunch of cost. You can sell these properties lower then Realtors are selling them and make a profit and pass a saving onto the real estate investor that buys from you.
Once you buy, as the highest and winning bidders, and pay for the property in full, provide us the correct name and physical address for the deed and you have met all the conditions of this auction, you have up to two years to visit the property.
Our Guarantee
If, after visiting the property, you observe that there are too many Bambi's, the Black Bear bothers you and/or the Squirrel and Fox give you the willies, [smiling softly] you may choose a one time transfer of ownership to another property of equal value, so long as the size and investment of the new parcel is about the same as the one you currently own through us or you can upgrade to a better lot. Contact us for the offsite cost.
This guarantee is good as long as we have property in USA that we own that is for sale to be sold as residential land. You can also choose to upgrade to a larger property in another development that we own property in. Then you will pay the increased price as the larger lots are worth more or may have central water and/or central sewer. In addition the expense to you will be an administration fee of $750.00 plus the cost to re-deed the current property back to the current owner and the cost to deed the new chosen property to you.
You will have paid your association fees and taxes current of course, so you are deeding property back to one of our trust accounts in good standing.
If you bought property from us at an auction your highest bid amount is the amount that we will be moving from your old property to your new property. You would send to us all your receipts showing that you paid your county, township and school tax in full and that you have paid all your association fees and a copy of your original deed and the identifying property number from our web sites you are wanting to trade into and we will send you the appropriate paperwork. If you came to us through the internet and bought property from our web site we will have the records to verify what you paid for the property. You agreed to pay your association fees and your own property county, township and school taxes as a land owner. You will have receipts verifying these are all paid current. Bottom line is you are able to move your investment dollars from one residential property to another lot that we already own.
We also have a SPECIAL GUARANTEE FOR TREASURE LAKE: We as always will protect your investment dollars. If at any time you decide you no longer want this property for whatever reason, call us first to make sure but then with our approval, donate the property to some charitable organization, send us a copy of the deed and we will move your investment dollars from this property to another property that we have. You are allowed to upgrade into our better communties and or for us to build you a house somewhere other then in this community.
In essence you don't have to visit the property before you buy from us. You can do your due diligence of course yet you can buy with confidence and peace of mind knowing that we give you time to go and see the land and realize the investment opportunity. |
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| POCONO SPECIFIC QUESTIONS |
Where are the Pocono Mountains?
The Pocono Mountains are a set of Counties located in the Northeastern Pennsylvania State area nestled in the romantic mountains.
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Have you had a perk test on the property?
According to observations viewed the last several years 90% of the homes that have been built have had improvements performed on the property. When you look at the base of each home the elevation is higher there then in the parcel that surrounds the house. Accordingly that would indicate that more soil was brought in, the area where the house and driveway will be raised 3 to 5 feet higher then the road in front of the lot, allowed to settle naturally for 4 to 5 years, leveled and built upon. This information was shared with us by a couple of different builders in the area. Remember we are third party verifier, we simple report to you what we were told by other people
We would defer you to our team of professionals who can get the job done correctly. Neither the association nor the township has performed a soil engoneers test. This is a key test in determining exactly how and what steps to follow to be able to develop property and eventually down the road to be able to build a home in these great private communities many that are gated and secure in PA. Always check with us with our team. actually we do this for you as we know how much, what forms and who to acquire the permission to improve the property.
Since the homes that are built there now had the soil improved, or backfilled raising the level of the property up so each new home is high and dry from moisture and mold. It is logical to determine that the future homes will have to have the same thing done within the stipulation as outlines to us by the soil engineers and our assessment team.
A property that fails a perk test is not necessarily un-build-able. It does mean that you are looking at years, possibly 4 years before you will be able to build a home if after all the developing work the property passes perk. It does mean however that the lot is going to have to be improved the right way by our one stop shop team of professionals who knows what they are doing. Time, knowledge, patience, investment dollars and our team who knows how to get the job done. We have the soil engineers, the site plan assessment and survey team, the developers and the General Contractor to do all this for you, for those that buy the land from us.
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Copyright © 2002
Reality Homebuyers
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