THE LAFAYETTE REPORT: October 2009

MARKET DATA

Since the start of the year, there has been a downward trend in the number of foreclosure sales and bank repossessions in the St. Louis City market.  According to RealtyTrac, St. Louis City ranks 607 in foreclosure activity nationwide.  Although the number of new foreclosure notices published, foreclosure sales, and repossessions has declined, the inventory of REO listed properties has increased.

In recent months, the number of new REO listed single family homes in the St. Louis City has dramatically increasedwith an average square foot price between $20 to $40 per square foot according to MLS figures.

At the same time, the number of REO listed single family homes sold has remained steady with an average price per square foot between $25 and $35 per square foot.

Note:  The RealtyTrac data includes all residential properties (single family and condos).  The MLS data only reflects single family homes and attached fee simple townhouses.

COMMENTARY

If you are an investor looking to purchase single family homes in the St. Louis City market, there are two favorable trends relating to foreclosures and bank owned properties.  First, notwithstanding the recent decline in foreclosure activity, there has been an  increase in REO inventory.  Second, there is now a clearly established sales price trend for REO properties.  Notwithstanding these two trends, the purchase of REO properties may not be suitable for all purchasers.  Homes with substantial equity or in the best neighborhoods are often purchased as short sales prior to the foreclosure sale or are purchased by experienced investors at the foreclosure sale.  The remaining properties often are less desirable either becuase of their location or condition.  However, for experienced long term investors with the financial ability to make repairs, these properties may represent a value opportunity to purchase single family homes at discounts average 30% or more off the fair market value of comparable properties.

In addition to foreclosure sales and REO listed properties, there are other opportunities in the current market relating to distressed properties.  Here are some alternate real estate investment strategies:

• Purchase of notes and first deeds of trust at a discount from private, non-institutional lenders.
• Purchase of notes and second deeds of trust at a discount from private, non-institutional lenders.
• Bulk purchases of properties from other investors, developers, and lenders.
• Purchase of homes subject to existing deeds of trust from sellers currently in default on their note.
• Purchase homes listed as short sales
• Bid at foreclosure sale.
• Purchase of bank owned properties ("REO").
• Bid at judicial sales including tax sales and sheriff's sales.
• Purchase directly from LRA or LCRA.

If you are an experienced investor and would like to discuss the purchase of investment properties in the St. Louis City market, contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.

The New Cathedral - St. Louis, Missouri.

On May 1, 1907, ground was broken on the New Cathedral.  The first mass was celebrated on October 18, 1914. 

For those who haven't been inside the the New Cathedral, it is an amazing sight.  Work on the mosaics started in 1912.  The mosaics in the side chapels and sanctuary were designed and installed by the Tiffany Company.  Work continued for 78 years and was completed in 1988. To fully understand the massive scope of the project, there are 83,000 square feet of mosaic glass tiles with over 41.5 million individual tiles in 7000 colors

To see the inside of the New Cathedral, click on New Cathedral Tour.  The New Cathedral is located at 4431 Lindell Blvd. in the Central West End neighborhood of the City of St. Louis.

Interested in purchasing a new home, condominium or loft in the Central West End?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.

Looking for condo for lease or rent in the Brentwood Forest neighborhood of the City of Brentwood, Missouri? 

Not all condos for lease or rent in Brentwood Forest are created equal - check out 1406 Oriole available for rent at $1000 per month.

PROPERTY LOCATION

PREA Signature Realty just listed a condominium for lease at 1406 Oriole in theBrentwood Forest neighborhood of the City of Brentwood, Missouri.  This Brentwood Forestcondo is located approximately 5 blocks West of the intersection of Highway 64/Eager Road and Brentwood Boulevard on a quiet, tree-lined residential street along the Northern boundary of the Brentwood Forest neighborhood.  It is within walking distance of the Brentwood Forest clubhouse, pool and tennis courts as well as fishing and hiking along Jefferson Lake.

RENTAL RATE

The monthly rental rate is $1000 per month with a 12 month lease.  Owner may consider shorter or longer lease terms.  Monthly rental rate includes:  sewer, water, trash, and condo fee for unit.  Tenant is resposible for electric, cable and telephone. 

PROPERTY FEATURES

This condo for lease in theBrentwood Forest neighborhood of the City of Brentwood, Missouri, offers the following features and benefits:

• Bedrooms:  2 Bedrooms.
• Bathrooms: 1 Full Bath.
• Sq. Footage:  945 sq. ft. (per city tax records).
• Exterior Facade:  Brick with Wood Siding.
• Parking:  Off-Street Parking.
• Storage Room:  Storage room, tool room or workship located off of Deck.  Double mount bike rack for storage of bicycles.
• Deck:  18' x 7.5' - Oversized Wood Deck
• Living Room:  16' x 14' - Engineered Hardwood Floors, Wood Burning Fireplace with Kentucky Stone Surround, Windows with Western Exposure, and Ceiling Fan.
• Dining Room:  9.5' x 11.5' - Hardwood Floors, Open Floor Plan, Chandelier, and Chair Molding.
• Kitchen:  8' x 8 -  Updated Kitchen with 42" Custom Cabinets, Granite Countertop, Ceramic Tile Floor, Stainless Appliances, and Laundry Cabinet.
• Master Bedroom:  13' x 10' - Engineered Hardwood Floors, Ceiling Fan, Wall Closet with Custom Organizers, and Windows with Western Exposure.
• Guest Bedroom/Office:  9.5' x 12' - Engineered Hardwood Floors, Wall Closet with Custom Organizers, and Windows with Eastern Exposure.
• Fireplace:  Woodburning Fireplace in Living Room.
• Cable/Telephone: Wired for Cable and Telephone.
• Appliances: 
  • Asko D1996 Dishwasher
  • Frigidaire Pro Series Electric Oven/Range
  • E-Wave Microwave
  • GE Refrigerator - Bottom Freezer
  • Asko T721 Dryer
  • Asko W6021 Washer
• Bathroom:  Custom Cabinetry, Shower/Tub with Glass Door and Tile/Slate Surround, Handheld Shower Head, Heat Lamps, and Slate Floor and Shower Surround.
• Plumbing Fixtures:  Garbage Disposal in Kitchen.  Chrome Bathroom Accessories.
• Window Treatments:  Mini-Blinds.
• Flooring:  Engineered Hardwood, Ceramic Tile, and Slate.

CONDO AMENITIES

This condo for lease in the Brentwood Forest neighborhood of the City of Brentwood, Missouri, includes the following amenities for use of the tenant:

• Brentwood Forest Pools - East Pool and West Pool (9000-9002 Wrenwood Lane)
• Brentwood Forest Tennis Courts - 2 Lighted Tennis Courts (1700 High School)
• Brentwood Forest Clubhouse for Rent for Parties (9000 Wrenwood Lane)
• Fishing in Jefferson Lake in Brentwood Forest
• Nature, Hiking and Walking Trails along Jefferson Lake and within Brentwood Forest
• Designated Picnic Areas, Bird Watching and Gazebo area along Jefferson Lake and within Brentwood Forest

For more information, visit the Brentwood Forest website.

MUNICPAL SERVICES

For more information on city services, visit the City of Brentwood website at www.brentwoodmo.org.

• School District:  Brentwood School District
• Library District:  Brentwood Library System
• Parks:  Brentwood Parks and Recreation with access to recreation facilities in neighborhood cities of Maplewood and Richmond Heights
• Recycling Services:  City of Brentwood Trash Pick-Up (Mondays and Thursdays) and Curbside Recycling Program (Mondays)

CASUAL LIFESTYLE

LOCATION:  This condo for lease in Brentwood Forest is located 5 blocks West of the intersection of Brentwood Boulevard and Eager Road. Brentwood Forest consists of 1,425 one and two story condominiums on 110 park-like acres.  Brentwood Forest offers a casual lifestyle with lush lawns, mature trees and landscaping, walking trails, clubhouse, pool, tennis courts, and much more.

SHOPPING:  In addition to the on-site amenities, Brentwood Forest is centrally located near Interstate Highways 64 and 170 and minutes from downtown St. Louis, Clayton, the Central West End, and the Lambert St. Louis International Airport.  Brentwood Forest is a shoppers paradise within walking distance of the following retail developments:

• St. Louis Galleria (Dillards, Macys, Galleria 6 Movie Theatre, Cheesecake Factory, and More)
• The Boulevard (Crate & Barrel, Ann Taylor Loft, P.F. Changs, Maggiano's Little Italy, Omaha Steaks, and More)
• Brentwood Promenade (Target, PetCo, World Food's, Trader Joes and More)
• Brentwood Square (Viking, Borders Books, Whole Foods Market, REI, Fedex Kinkos and More)  
• Dierberg Point Shopping Centers (Dierbergs, DSW Shoes, Macaroni Grill and More)
• Close to Hanley Road Walmart and Home Depot stores.

If this isn't enough, take the Metro from the I-64/Brentwood Station to Clayton, University City, Central West End or Downtown St. Louis.  Click here for Metro Map.

OTHER BENEFITS:  Here are some of the benefits of this great Brentwood Forest location:

• Public Transportation - Near the Brentwood/I-64 Metro Stations.
• Interstate Highways - Central Location with Easy Access to Interest Highways 64 and 170.
• Hospitals - Minutes from St. Mary's Hospital, Barnes-Jewish and the Washington University Medical Campus and other area hospitals.
• Universities- Short drive to the college campuses of Fontbonne, Webster University, Washington University, and the St. Louis College of Pharmacy.
• Arts and Entertainment - Short drive to Clayton and University City galleries, shops, entertainment and other venue.
• Local Restaurants - Short distance to Frank Papa's Ristorante, Carl's Drive-In, and AppleGate Deli.
• Park - Walking Distance to Brentwood Recreation Center/Ice Rink and 7 city parks.  Close to Tillis Park and other county parks.  Member of PARC allowing residents to take advantage of recreation facilities in Maplewood, Richmond Heights and Brentwood.
• Airport - 10 minute drive to Lambert St. Louis International Airport
• Library:  Brentwood Library.

Brentwood Forest offers a great, new lifestyle.  It is an oasis in a suburban setting minutes from everywhere.  Whether you want to find a national chain or a local restaurant, it is all just outside your front door.

VIDEO TOUR

Interested in purchasing or leasing a condominium in Brentwood Forest?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.

START OF NATIONAL DRUG FREE WORK WEEK

The National Drug Free Work Week starts October 19, 2009.  The purpose of the National Drug Free Work Week is to highlight that being drug free is key to workplace safety and health and to encourage workers with alcohol and drug problems to seek help. 

PURPOSE OF NATIONAL DRUG FREE WORK WEEK

The National Drug Free Work Week is sponsored by the U.S. Department of Labor in coordination with members of its Drug-Free Workplace Alliance. This cooperative program, which represents both employer/contractor associations and labor unions, aims to improve safety and health through drug-free workplace programs. It focuses on the construction industry because research indicates that it has higher than average rates of worker alcohol and drug abuse-a serious concern given that it also is among the industries with the highest rates of workplace accidents and injuries. But because drug-free workplace programs benefit all workplaces, employers and employees in all industries, not just construction, are encouraged to take part in Drug Free Work Week.

WHAT REAL ESTATE PROFESSIONALS CAN DO

Real estate professionals often face the same problems as other industries when it comes to substance abuse related issues.  In other professions such as attorneys, there are often employee assistance type programs available from state and local associations or even individual firms.  However, real estate agents often do not have access to employee assistance type programs. 

Here are a few ideas from the Drug-Free Work Alliance:

*  Implement a Drug-Free Workplace Program - Develop a Drug-Free Workplace Program at the association or brokerage levels.  For more information on starting a Drug-Free Workplace Program, visit www.dol.gov/workingpartners. This website offers detailed guidance on how to develop a Drug-Free Workplace Program starting with a written policy.

* Promote your Drug-Free Workplace Program - If your association or brokerage already has a Drug-Free Workplace Program or employee assistance type program promote the programs by distributing a copy of your drug-free workplace policy to all real estate agents and brokerage employees.

* Train Managers - As part of the Drug Free Work Week, associations or brokerages can provide training to team leaders and sales managers to identify and deal with real estate professionals who have performance problems that may be related to alcohol and drug use, including clearly identifying where real estate professionals should be referred to for assistance.  

* Educate Real Estate Professionals - As a part of the Drug Free Work Week, associations or brokerage might consider holding seminars on time management, stress management, financial planning and substance abuse.

* Develop or Publicize Employee Assistance Progrmas - If your association or brokerage has an employee assistance type program, remind real estate professionals about these programs.  Employee assistance programs often offer free or low cost services to assist employees to resolve personal and workplace problems, including alcohol and drug abuse. If your association or brokerage doesn't offer an employee assistance type program, consider developing such a program even if it only consists of educational programs, self-assessment materials, and lists of local treatment programs and other resources. 

* Encourage the Use of Self-Assessement Programs - Encourage real estate professionals to perform private self-assessments such as confidential, self-administered online screening tools available at www.AlcoholScreening.org.

* Compile a List of Local Resources - Whether or not your association or brokerage has an employee assistance type programs, develop a list of local resources.  To locate resources in your community, visit www.findtreatment.samhsa.gov or phone 1-800-662-HELP. Also, self-help programs such as the 12-step programs of Alcoholics Anonymous and Al-Anon are free and available nationwide. 

* Review Health Insurance Plans - If your association or brokerage offers a group health plan or provides referrals to health insurance providers, suggest insurance companies and policies that provide coverage for substance abuse assessment and treatment.

INTRODUCTION TO OUR PREFERRED LENDER

For those readers and subscribers in need of a home loan, I wanted to take this opportunity to introduce Jim Quist and New Castle Home Loans as one of our preferred lenders.  New Castle Home Loans was formed in 2003 and has experienced steady growth with offices in Chicago, Illinois, Lombard, Illinois, and St. Louis, Missouri.  Over the years, New Castle Home Loans has established a strong niche in offering loan products for new construction and conversion project in Chicago, Illinois and St. Louis, Missouri.

HOW WE SELECT OUR PREFERRED LENDERS

At PREA Signature Realty, we base our recommendations and make referrals to lenders and other service providers based solely on the service that they provide to our customers.  We have a longstanding policy that prohibits our agents from receiving any direct or indirect compensation from our preferred service providers.

When we make a recommendation or referral to a lender, we are looking for three main things from our lenders:

• Competitive Pricing with No Hidden Fees and No Junk Fees
• Extensive Experience and Access to a Wide Array of Loan Products
• Superior Customer Service and Communication

WHY CHOOSE NEW CASTLE HOME LOANS

Since 2005, we highly recommended New Castle Home Loansto our developer client in St. Louis.  When we started PREA Signature Realty in 2008, we continued the relationship and designated New Castle Home Loans as one of our preferred lenders.  Here are some of the reasons we designated New Castle Home Loans as one of our preferred lenders:

• Competitive Pricing - Low Interest Rates, Standardized Fees, and No Junk Fees
• Loan Officers with Extensive Experience and Product Knowledge
• Access to Wide Array of Loan Products from over 50 National and Regional Lenders
• Streamlined, Simplified Online Loan Application Process
• Constant Communication - Providing Our Agents with Automated Notifications regarding Each Step in the Loan Process
• Internal Underwriting of Loans
• Identifying and Anticipating Issues based on Familiarity and Experience with New Construction, Conversion and Condominium Projects
• Clear Explanation of Loan Options - Allowing for Informed Consumer Decisionmaking
• Superior Customer Service
• No Surprises - Rates/Fees Quoted are Rate/Fees Delivered
• On-Time Closings with No Funding Delays

CUSTOMER TESTIMONIALS

Here are a few testimonials from agents and customers who have used New Castle Home Loans:

• Heather Gustafson, CMK Realty-Chicago:  "NewCastle is one of the best that we have ever dealt with. Our buyers report that they have the lowest rates and best service. NewCastle is CMK's preferred lender and based on our experience, we recommend NewCastle Home Loans to any broker, agent or real estate developer."
• Stuart Schwartz, @ Properties-Chicago:  "Jim, Another great job! Every customer I refer to you closes on time and without problems-- Happy customers make my job easier."
• Ryan Shaughnessy, PREA Signature Realty-St. Louis:  "We want our buyers to use NewCastle, especially on our condominium conversion projects. They just make it easier--for the customer and us. NewCastle always closes on time and the money is always there--with no surprises."
• Doug Bailey, Chicago:  "Jim, You did such an outstanding job for me that I plan to let everyone know when they ask about a mortgage lender. Thank you for all of your help."
• Liz Reger, Ideal Location-Chicago:  "I've been a Realtor for over 10 years and I refer my buyers and anyone that has a question about a mortgage to Jim Quist at NewCastle Home Loans. I also finance my own primary and investment properties through Jim."
• Frank Dixon, Oak Park:  "Our real estate agent recommended NewCastle and she was right when she said they are great to work with. NewCastle made the whole process easy, gave us the lowest interest rate with no junk fees--and there were no surprises at the closing table. When someone I know is buying or refinancing, I tell them to call NewCastle."

CONTACT INFORMATION

• Loan Officer:   Jim Quist
• Office:   2349 N. Elston Avenue, Chicago, IL 60614
• Telephone:  888-570-7283
• E-Mail:   jquist@newcastlechicago.com
• Website:  www.newcastlechicago.com
• Apply Online
  

On behalf of PREA Signature Realty, we wanted to say thank you to New Castle Home Loans for underpromising and overdelivering on their mortgage services.

Interested in Purchasing a Single Family Home, Townhome, Condominium or Loft in Lafayette Square? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381.