THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, November 2, 1996 TAG: 9610310248
SECTION: REAL ESTATE WEEKLY PAGE: 04 EDITION: FINAL
SOURCE: BY ANAHITA WAGER-SMITH, SPECIAL TO REAL ESTATE WEEKLY
LENGTH: 117 lines
McEntee Realty Inc. is in the business of rebuilding homes and renewing hope one house at a time.
Over 90 percent of the firm's work involves the renovation and sale of dwellings in government-designated low- to moderate-income areas.
The idea is that upgrading the houses will lead to the revitalization of communities and the expansion of home-ownership opportunities, especially for first-time home buyers.
Initially geared towards property management, McEntee expanded into homeownership after the its owners realized that in Tidewater, the rent paid by most tenants is equivalent to making a monthly house payment.
Former Marines Cary McEntee and Dan Adamski have used their training and experience to build the business. They attribute their success to strong belief in their abilities, their ``get it done'' attitude and their inability to take ``no'' for an answer.
In working with McEntee, local lenders demonstrate their commitment to lending in lower-income communities and meet their responsibilities under the Community Reinvestment Act. This enables McEntee Realty to help many first-time home buyers take advantage of below market rates and own a home with no more than $500 down.
``The combination of our company's solid equity position and the local lenders' low-down-payment conventional programs has allowed many first-time home buyers to move into a newly renovated home for less than they are usually paying for a month's rent,'' McEntee says.
Louis and Vivian Perry originally passed up the real estate company but returned after an unsuccessful attempt to buy a home through the U.S. Department of Housing and Urban Development. Discouraged, the Perrys went back seeking to rent a home.
Louis was informed of his option to obtain a Veterans Administration loan. Although he was skeptical when he saw the condition of the pre-renovated house in the Berkley area, he is happy to say that he listened to his wife who saw the home's real potential.
McEntee's willingness to educate and assist him with his credit and down payment allowed him to buy rather than rent. ``They serve the people in my income bracket. I am not poor but I am not rich and I am not middle class,'' says Louis.
The Perrys were impressed with the recommended structural changes that have gone into their home as well as the added amenities and feel they have gotten what they wanted.
Some of the upgrades include the addition of a bedroom, the conversion of a porch into a laundry room and building closets for the bedrooms. Their home also came with new cabinets, blinds, refrigerator, stove, sink and carpet. In addition, they received a hot water tank and the home's heating system was upgraded to central heat.
``It makes me feel good to own my own home. Before, from time-to-time I had to stay with my mother but now I have a place where mom can come stay with me. I am the first son in my family to own a home.'' Louis said.
According to him, this is an achievement in and of itself for any young American adult. Louis added ``when my mother came in, she was literally in tears and said that she was so proud of me.''
Although these programs are often an excellent opportunity to purchase a home, Treena Hacker of Long & Foster Realtors recommends that potential buyers obtain a home inspection for possible structural, plumbing, electrical or other hidden problems.
When funds are limited, many home inspection companies will now defer payment until the closing. Although this may seem unnecessary, such inspections provide valuable protection for purchasers of previously owned homes.
As part of McEntee's program, all buyers must attend a homeowner's education course that teaches basic but essential skills such as how to create and balance a monthly budget.
``This training combined with placing the buyer into a renovated home with below-market loan rates should greatly reduce the chances of foreclosure,'' McEntee says.
The involvement of the future homeowners is encouraged during the beginning stages of the remodeling process as this allows them to choose their carpet and interior paint colors.
``These types of choices primarily associated with new construction are possible through our program because of the equity gained by purchasing a foreclosed or distressed property,'' said McEntee.
A typical home handled by McEntee Realty receives new vinyl, plumbing and electrical system upgrades, central heating and cooling and refinished or new kitchen cabinets.
McEntee began the business out of his Norfolk home after leaving the Marines in 1990. The challenge and opportunity of owning a business was too enticing. Adamski assisted McEntee while finishing up his graduate studies in financial management and later joined McEntee as his vice president.
Today, the company has an office in Virginia Beach, employs over 30 people, not including contractors and subcontractor,s and has recently expanded its office by 50 percent.
Although the majority of the homes sold by McEntee Realty are also owned by McEntee Realty, the company does offer its properties to investors in the pre-rehabilitation stage.
This is a fairly safe investment as the asset securing the loan should double in value, according to John C. Lumpkin, a lawyer who specializes in real estate transactions.
``If the deal does go sour, the investor has an option to either sell the investment with a purchaser standing by or foreclose on the house,'' said Lumpkin. Also according to Lumpkin, another feature of this tupe of investment is that the investor is able to turn over the loan three to four times a year, taking advantage of an excellent rate of return.
``They have found a niche,'' said Lumpkin, describing McEntee Realty. What has contributed to McEntee's success is the ability to locate the home buyers before they purchase the property. This way, the company has the requirements of the buyer in mind when it purchases a dwelling.
``We expect to renovate 62 properties in 1996 with 57 of them in low- to moderate-income areas and are currently managing 675 rental units in Newport News, Virginia Beach, Hampton, Norfolk, Portsmouth and Chesapeake,'' McEntee says. ILLUSTRATION: Color cover photo by Martin Smith-Rodden
Cary McEntee, left, and Dan Adamski of McEntee Realty Inc.
Photo by ANAHITA WAGER-SMITH
[Louis an Vivian Parry thank McEntee Realty...]
KEYWORDS: RENOVATIONS by CNB