Localism: US Virgin Islands

St. Croix Thanksgiving Jump Up

Sat, 29 Nov 2008 19:39:24 -0600

On Thanksgiving night in downtown Christiansted, there was a huge turnout for the Thanksgiving Jump Up. This is a "street party" of sorts - put on by the St Croix retail association. There are four of these per year.

Stores are open late and there are bargains galore. Food and beverage vendors line the streets. Local artists and craftsmen(and women) sell their wares from tabletops. Bands are on every corner - and even marching down the streets. It is a PARTY!

The highlight of the Jump Up is when the Moko Jumbies come out. These are typically junior high-schoolers on these stilts -and they dance and perform and delight the crowd. The "jumbies" are from the African traditions - they were thought to ward away evil spirits.

It's a delightful idea and indeed - all bad spirits were most definitely kept at bay - thanks to the watchful Jumbies!

Visit St. Croix Things to Do on my website to find out more about festivities on this exciting and vibrant island.

Kim Lucas, Realtor
kim@coldwellbankervi.com
www.retireinthevi.com
www.kimlucasvi.com
340-626-3758

Land Investing 102: Joining the St. Croix Land Rush - Is It Right for You?

Fri, 28 Nov 2008 12:22:48 -0600

I'm going to start this series of 4 blogs the same way to get my message across:
The Great St. Croix Land Rush is Coming!

St Croix is poised to be the next "hot spot" in the Caribbean. With a new and wonderful director of Tourism, a fabulous governor and Lieutenant Governor, a new bevy of Senators who promise to continue to improve this lovely island, return of the cruise ships, and new resort developments that are inches away from ground breaking - all signs point to a "boom" on the horizon.

What does that mean to you? If you are an INVESTOR - it means get down here and buy LAND! If you're considering retiring here - it means get down here and buy LAND! I keep saying this - ST CROIX is the PLACE and NOW is the time! Land prices are really reasonable here (scroll down the page to see some great buys). Where IN THE WORLD can you buy ocean view property for under $100,000? If you are worried because you've never purchased land before, this 4-part blog series is for you.

How to Make Intelligent Land Investment Decisions

Investing in land can be a tricky business, especially for those who are just starting out in the world of using real estate as an investment. Not every investment has good return potential. Even here in St. Croix, not every plot for sale would be a good investment, and not every plot is priced right for the market. (Hint - you need an experienced local Realtor to help you find the best deals!)

1. You Think You've Found a Great Deal
OK, the price looks right and it's in your budget. You realize that investing takes money to make money. But do your homework - make sure there will be a market for that parcel in the near future, and that it has long-term potential.

2. Can You Trust your Instincts?
That depends. Part of being a good investor is learning to trust yourself to do the right thing. While you may not always be right, it is helpful to consider your instincts - especially if they have proven you right before.

3. You have made a profit before
Just because you were able to sell a plot of land and make a profit in the past, not all locations and market conditions are the same. Don't buy just because the land is the same size or is in the same subdivision as another investment you made. Not only do you need to seek expert advice in current market conditions, but consider potential - utilities, development, view, desirability - before you assume you can sell that land profitably.

4. Investment is all about Risk
Don't ever forget that - while real estate historically does appreciate - it make take years. Be prepared for degrees of risk based on your degrees of cash investment. If you may need that money in the short term, then you would assume a degree of risk based on short-term appreciation. Land investing is no different than stocks and bonds or Aunty Jane's store - decide on a financial plan for yourself and build into it some risk tolerance.

5. Examples of Great Deals in St. Croix

Lovely flat corner lot with views of the South Shore and Great Pond. Very convenient and outstanding value.
.46 acre
List price $62,000

Lovely large affordable plot in the rainforest with easy access, gentle slope, and fruit trees already planted for you! Nice spot to build, and you'd be high enough to never see or hear any cars on Mahogany Road. Ideal horse property.
2.11 acres
List price $95,000

Nearly 2 acres of sandy beachfront land on St. Croix's south shore. Terrific price for this large lot that has 200 feet of waterfront; easy to build on the slightly elevated (small step down to the beach), level terrain perfect for your island home. Good value! Owner Financing Available.
1.98 acres
List price $325,000

You can tell I'm bullish about our economy and investing here. But I'll be honest with you about the development potential of any land parcel, and problems I might foresee in a purchase. So email or call, and ask for a copy of the newsletter I just mailed with descriptions of many types of plots available on St. Croix. And sign up to receive my next blog post on How to Find the Perfect Land Deals for You.

Kim Lucas, REALTOR
kim@coldwellbankervi.com
340-626-3758
www.kimlucasvi.com
www.retireinthevi.com

St. Croix Christmas Winds - a Poem for your Holiday

Wed, 26 Nov 2008 09:33:26 -0600

Right on schedule, she roars in
With all the brashness of a red headed floozy.
She dances, teases, commands your attention.
It is impossible to ignore her.

Sometimes she's loud and forceful
Howling like a banchee, reminding us of her power.
Other times she caresses you with the tenderness of an artist
Making your hair dance this way and that.

Then, as abruptly as she came, she departs
Leaving only quiet and leaves strewn about in her wake
Aaahhh, the silence, the blessed silence
And yet how we miss her.

She's off to do her magic dance in other lands
These West Indies, though beautiful, are not enough to hold her.
We are thankful for her visit and look forward to her return
For the Christmas Wind never overstays her welcome.

St. Croix Starving Artists Festival

Tue, 25 Nov 2008 10:08:49 -0600

This year's Starving Artist's Day is on Nov. 30, and YOURS TRULY will be exhibiting! Yes, St Croix brings out the creative spirit in many of us, and I have been collecting and making sea glass jewelry and keepsake pieces accompanied by original poetry - to use in lieu of a "card."

I call my work "SEE Glass" - because the poems and sea glass momentos are designed to remind us that we have to experience some "tumbling around" - bumps and bruises - in order to become truly beautiful. I'm hoping folks will find it a nice way, for $5, to share a piece of St Croix with a loved one who is going through a rough time.

The day is always a very fun day, with music, food, competitions, and a very wide range of crafts to choose from. It's the perfect place to do some Christmas shopping, especially considering that we must mail our gifts back to the states VERY EARLY in order for our loved ones to receive them in time! The weather is always perfect, and the Whim Plantation is such a beautiful place, it's a great spot to spend a lovely Sunday afternoon with friends and family! There's something there for everyone! Learn more at the Starving Artists web site.

BTW, I have 3 listings under $35,000 for 1/4 acre plots on Whim - take a look at the properties. They are all great buys, mid-island, in a very convenient location.

Kim Lucas, REALTOR
www.retireinthevi.com
www.kimlucasvi.com
kim@coldwellbankervi.com
340-626-3758

Short Sale Outcomes

Tue, 25 Nov 2008 01:42:54 -0600

Short Payoff Outcomes

(Download Article)

This is critical information. If you are about to be engaged in a short sale transaction you MUST understand this important fact: Short sales are type of short payoff outcome.

The term short sale is loosely used to refer to any negotiation in which a secured creditor accepts as payment less than what is owed. The terms of this acceptance have distinctive debt relief, collection and tax implications. This brief article explains this critical subject.

Note: For precision, in this article professional level terminology is used.

The property owner will be referred to as the debtor
Banks will be referred to as creditors
Secured creditor is a bank that has a mortgage on a property
Releasing an interest in a property is removing the mortgage. This is needed to make a property marketable. Without this, the property is difficult to sell.

Short Payoffs

In real estate, a short payoff is an arrangement in which a secured creditor releases its interest in a property that is collateral for debt, by accepting less than full payment. Since the creditor is getting paid short of the full debt payoff, this phenomenon is called a short payoff.

There are two types of short payoffs: Short Sale & Release of Lien. Although they are similar, these two types of short payoff are extremely different.

Short Sale: In a short sale a creditor accepts less than full payoff for the debt, releases it interest in the property and forgives the debtor for any short fall. The property owner no longer owes anything to the creditor. Because of this, a short sale is debt relief. According to the IRS, debt relief is financial betterment. Therefore a short sale is a taxable event. Because of this, and to be able write off the loss, the creditor will issue the property owner an IRS 1099 C, Cancelation of Debt. Typically, if the property owner is insolvent, and with the use of a good CPA, there is no increase in tax burden to the property owner. The debtor should also look at the Mortgage Debt Relief Act

Release of Lien: In a release of lien, the creditor releases its interest on a property for less than owed, but does not forgive the unpaid debt caused by the short fall. The property owner still owes to the creditor. Typically the property owner and the creditor arrange for some sort of payment plan. A release of lien is not debt forgiveness, so there is no 1099. However, the property owner will no longer be able to apply debt payment interests as tax write-off.

Off course most property owners prefer a short sale over a release of lien; however that is not always possible. The type of short payoff available to the property owner depends mostly on the property owner's financial situation, ability to pay, and how easy a collections target the debtor is.

By far, the most common type of short payoff is the release of lien. The term short sale is liberally use in reference to any type of short pay off. As such, the fact that someone mentions the term "short sale", does not necessarily mean a true short sale. Through the years this has led to plenty of disappointment, disputes, personal financial disasters and a bad end to lots real estate careers.

When Short Sale? When Release of Lien?

Whether a property owner will get a short sale or a release of lien depends on the type of debt secured by the property and the chances of the creditor successfully collecting the debt.

When a Short Sale: Typically a creditor will allow the short sale of a property when it is impossible, or very difficult to collect any further funds from a debtor. This extreme example illustrates the situation. An older property owner, now living on social security income, in a rented apartment, and just discharged from bankruptcy Chapter 7 is impossible to collect on. In this case creditor will either approve a short sale or foreclose.

When a Release of Lien: Typically a creditor will insist on a release of lien if the debtor has present and/or future ability to pay, and is a good collections target. This extreme example clearly illustrates matters. A younger doctor going through a nasty divorce may presently be totally insolvent. However, as soon as the divorce situation is resolved, chances are that the doctor will be financially fit again. So he will have ability to pay. Not only that, for a collections company, such a professional is easy to locate and harass. It would be very easy for a collector to attempt garnishing wages. To make it worse, such actions can have huge negative effects in the doctor's career (increase insurance premiums, stigma, etc). Therefore, most likely the young doctor will end up only with a release of lien, and most likely be almost happy to make payments.

Most releases of lien take place with cash-out second mortgages and home equity lines of credit (HELOC). In these cases, typically the creditor with the first mortgage forecloses, gets paid most of the debt at foreclosure sale or ends up owning the property. After the foreclosure, the junior creditors (second mortgage, HELOC, etc), are no longer secured by the property. However, the property owner still remains indebted to these creditors. These creditors will attempt to collect. Collection efforts will be aggressive if the size of the debt is large enough, and the chances of collecting of very good. So going back to the extreme example of the young doctor, such individual has no escape. He will be collected anyway. The question is how. With a release of lien, the young doctor will right away be in a payment plan he can handle. With a foreclosure, the young doctor will be chased by aggressive collectors. For a professional like him, with a lot to lose, this would be a terrible situation.

Hopefully this article clearly illustrates short payoffs. I used extreme examples because they are easier to visualize. Most individuals fall in a category somewhere between these two extremes. Just remember: A short payoff is when the creditor lets the debtor sell for less than what is owed. In the short sale the remaining debt is forgiven. In the release of lien it is not.

Oscar Morante, Advanced Real Estate Concepts, LLC

Un-authorized reproduction prohibited

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