WOW! What a busy week-end we had on St. Simons Island! In addition to the annual Columbus Day Art Festival, we has a new activity this year - a triathlon that began on the beach with a swim, then a bike ride, then a run! There were 300 slots, all of which were filled. And of course there was the Stewiblee in downtown Brunswick.

It seems that the rest of the country is finding out about the good real estate deals on the island. I showed property to couples from Illinois, Pennsylvania, and Virginia - three different couples in four days. Of course, everyone wants a deal, but what better time to find one? I showed over 15 foreclosed properties last week-end. While I am extremely disappointed that the economy is in this state, I am fascinated by the deals available.

Does this influx of buyers mean we're nearing the bottom of this recession? I've been hearing for some time that the economy is improving. I've been waiting for some evidence of that on St. Simons and I believe I might be seeing it. I certainly hope so - I'm ready for some good news!

With the National Association of Realtors® report last week showing a third consecutive month of increasing home sales in all regions of the country everyone cheered, including Wall Street! The report along with new construction starts has been used to forecast hopes that the housing slump may be reaching an end. 

In the recent months, investors were basically shunned by Fannie Mae in that the investor was unable to finance investment mortgages if the borrower already owned 3 other investment properties with a mortgage on them. But starting March 1^st, Fannie Mae will reverse their earlier decision and allow investors to own a total of 5 – 10 financed properties if they are eligible and meet their underwriting standards.

1. No bankruptcy or foreclosure in the past 7 years and pristine repayment on other mortgages
2. Documentation of rental income for new mortgage property and revenue history on other investment properties owned
3. 2 years of income tax returns
4. Applicants owning 4 or less properties will need 6 months of bank reserve to support the new purchase and 2 months reserve for the other investment properties they own. Borrowers owning 5-10 properties will need to show 6 months of reserves available for each property.

With mortgage rates dropping by ½ point almost overnight on a 30 year loan and the Government plan to buy $100 billion of Fannie Mae and Freddie Mac bonds, I am hopeful that we will see definitive results in home purchases.

With the stock market’s volatility of late, should the savvy investor be looking to something real and tangible---namely real estate? There is something to be said for an asset that you can see, touch and feel. Certainly I am aware that a real estate investment requires some maintenance, has property taxes and insurance expenses, etc. However, I personally am looking today at something that is truly tangible, and with real estate you can usually even have the advantage of tax benefits.   Regardless of the market, real estate has definite intrinsic value that cannot evaporate into thin air.