Saturday, November 26, 2011

The ABC’s of Real Estate Investing

We have spent a lot of time discussing how to be a successful Real Estate Investor in today’s Real Estate Market. Today I want to simplify it a little. Using just the ABC’s of Real Estate Investing so three basic steps and you are on your way to becoming a successful Investor.
A. Action: This again is a vital step to becoming a successful Real Estate Investor. Action equals work, you must begin your research and define in detail your Property Criteria so you can make a well informed decision on which properties to invest in. With the guidance of an experienced Real Estate Agent that has worked with Real Estate Investors this task can be streamlined. Be sure you know what you are getting into and most importantly have a well defined Exit Strategy.
B. Buy: There are a lot of wannabes in Real Estate Investing, they do the work, do the research, tour potential properties and then think about it, never actually buying the first property. This can leave both them and the Professional Real Estate Agent that enjoys watching the success of their clients with a feeling of non action. The worst part of this is the Real Estate Agent is also checking the feasibility of the property based on your criteria. So if this is a contender for the required Return on Investment, he/she will be presenting this property to other investors causing you to lose out on a possible Great Deal.
C. Consistency: Being a Real Estate Investor is not a start and stop proposition. Even if you have a great Investment Property under contract don’t make the mistake of stopping your research into other properties. If you have followed the plan and your Real Estate Agent has included the proper contingencies in your contract, you are still in a position to continue looking at qualified properties. If you take your Real Estate Investing seriously and treat it like a job your chance of success grows exponentially. Being consistent in both your search and research will propel you to the top of the Real Estate Investing game.  
I hope this helps in your quest to become a successful Real Estate Investor, as always if you have any questions just let us know. I wish you much success in this great opportunity. Thanks

Friday, November 25, 2011

Key to Success in Real Estate Investing

We have discussed several aspects of Real Estate Investing and have given some basic information on how to get started and what to expect. Today I want to give you some information as to why some people are very successful Real Estate Investors. It is fact that anyone can be a successful Real Estate Investor in any kind of market especially the Real Estate Market we are currently experiencing, however there are some keys to this success.
1. Have a detailed Investment Property Acquisition Plan: This is critical if you plan on achieving long term success. You must know the market and as the market changes your plan needs to be tweaked. But in order for that to happen you must first have a plan.Your plan should include your criteria, what will you buy and what is your exit strategy, once I acquire this property what is my plan of action. If you have a detailed plan you will limit your exposure to failure. Without a well thought out plan your exposure to failure is extremely high.
2. A proven system for evaluation of Investment Property: This includes but is not limited to a detailed cost of repair worksheet. When you find “The Deal” it may initially look great on paper however completing a cost of repair worksheet will give you the exact figures you need to be able to make an informed decision on the property. As mentioned in a previous post you can control the property while making these determinations and having the properly worded contingencies you can be sure if the property does not meet your financial criteria you can walk away without expense.
3. Time is Money: We have all heard this saying but in Real Estate Investing it is a crucial key to success. New investors often make the mistake of, ” I can do the work required and save a bunch of money”. Although you may be versed in repairs etc. the length of time it will take to get the property in a marketable condition be it Re-Sale or Rental can be the difference in a great return on investment and a break even return, I would think as a Real Estate Investor you are not looking to break even. An example I love to use is painting the home. A 1200 square foot basic 3 bedroom 2 bath home most new Investors feel they can at least get the painting done themselves for minimal cost. This is true, pain, supplies etc. for a home this size should cost about $200.00. Even the most energetic new Investor will take 7 to 10 days to complete the job keeping you tied to the house until this is complete. This takes time away from marketing the home for potential Renters or Buyers keeping the property non-income producing even longer. Hiring a professional paint crew, and this can be done inexpensively, they should complete the job within 24 hours. You have no prep no clean up and no touch up, just a professional paint job getting your house ready in record time. So spend your time, finding the deals, negotiating the necessary contract points and finding the Buyers and Renters for you Investment Properties.
I hope these keys help and as always, if you have any questions just let us know.

Wednesday, November 23, 2011

November Housing Trend Newsletter, Upstate SC Stats


NOVEMBER - 2011 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.Please click here to view the NOVEMBER - 2011 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

Basics for being a successful Real Estate Investor, Upstate SC

Basics for being a successful Real Estate Investor, Upstate SC

Tuesday, November 22, 2011

Real Estate Investment Profiles Where do you fit in?

When you decide to become a Real Estate Investor, then it is time to decide what type of investor you will be. Pro active, passive or sideline. Here are the four profiles that define a Real Estate Investor.

1. The true successful investor: They love the opportunity and the buy the right thing. They base their decisions on the three areas of focus for the Real Estate Investor, Their Criteria, what they want to buy, Their terms, how they will buy it and their network, who will help them. These are the buy and sell Investors. They understand taking the minimal risk and getting the maximum return.
2. The investor that collects properties. They also love the opportunity and will buy something, not necessarily what will give them the best return. They often have not decided on their three areas of focus. They do tend to be overly cautious loosing good potential deals. Their focus is usually very low risk and usually brings a low return.
3. The Investor that is a speculator. They will buy anything. They love the action of buying and very often have no regard for the three areas of focus. This is a high risk investor who is looking only for the high return. Done properly they can be very successful in the short term. Make a mistake and they can be financially ruined.
4. The investor that is actually on the outside looking in. This investor loves the idea of investing in property and will look at all the available investment properties in the area. The problem with this investor is they also have not looked at the three focus areas of investors so although they love the idea they never buy anything.

So which investor are you? To be successful in anything and especially in becoming a Real Estate Investor, you must have a plan of action and then work that plan. Many would be investors never take the action needed to succeed. Hope this helps and as always if you have any questions just let us know.

Monday, November 21, 2011

Why should you be or become a Real Estate Investor

I hear almost every day the whys of people who are not investing in Real Estate, based on those reasons I want to give some insight as to why you should be Investing in Real Estate and how anyone can become a Real Estate Investor. This includes the people that always say I can not afford it. I will share how you can and why you should,

!. Anybody can buy Real Estate. There are no limits to who can buy Real Estate, all you need is a plan and a desire. Even when your finances look bleak there are creative ways to buy Real Estate.
2. Real Estate will increase in value over time. It has been a proven fact that even in the markets today some Real Estate is still increasing in value. You have to be working a plan in order to take advantage of that.
3. Savvy investors not only buy properties that are distressed, they will rehab the home and then borrow against the equity giving them additional funds to invest in Real Estate.
4. Additional income stream. Buying a property that needs some work will help you get the property at the right price. Once the work is complete you can rent the property giving you additional income with minimal investment out of pocket.
5. Building the equity in a cost effective manner. This can be done by using sweat equity in the home, doing some of the work yourself especially the items that do not require great skills, ie: Painting, Cleaning and changing some of the fixtures, these things can add that extra value that builds your equity quicker.
6. Tax advantages. Speak to your tax professional as some of the cost involved in purchasing, remodeling and getting a property rent ready can be deductible on your taxes giving you additional dollars for investments.
7. You have a marketable property. Even though the market dictates what you can sell your property for the chances are if you buy it right you can sell with a profit if you do not let greed take over your investment portfolio. Prices on homes do fall but they also rise and usually these are slow processes either way.
8. You have a place to live. Unlike any other investment, you have the ability to live in the property providing shelter and comfort for you and your family. This can be done even when you are in the process of selling the home. Just one more advantage of being a Real Estate Investor.

These are some basic guidelines and advantages of being a Real Estate Investor. Need more information, just let us know. Thanks for looking.

Sunday, November 20, 2011

The Three Areas of Focus For Successful Real Estate Investing

So you have decided to become a Real Estate Investor now what? There are proven plans to be successful in this market and they all start with three simple areas of focus.
1. Criteria:  Your criteria are the aspects of the property that cannot be negotiated away ie: Location, size, style etc..Criteria will narrow your choices to the properties that represent the greatest opportunity and the least risk. When the property matches your criteria you have more opportunity to get properties with a somewhat predictable value and return on investment. So detailing your criteria is a most important step.

2. Terms: This indicates how you buy it.So criteria can be defined as the opportunity then Terms define how you turn it into a deal. These are the negotiated aspect of a purchase. They can include everything from price, down payment, interest rates, closing costs and closing dates. These can also include creative financing to lease purchases. Negotiating properly can get you in a better equity position or cash flow position and sometimes both.Keep in mind you must buy right in order to be successful and never hesitate to walk away from a potential deal if it does not fit your criteria and terms.

3. Network: Who helps you get the best deals and best negotiations. These are people who will help support all your deals. These can range from mortgage lenders to attorneys. Having a Real Estate agent versed in investment properties is also crucial as they will have resources to find deals based upon the criteria you supplied.

Using these three areas of focus you can be well on your way to a very rewarding and profitable Real Estate Investment program. Have questions? Just let me know, hope this helps.

Saturday, November 19, 2011

From Rent To Home Ownership in Easy Steps

If you are used to living in an apartment but are tired of paying rent there is a great option available for you. This option of home ownership also allows you to build a Real Estate Portfolio of Rental Properties so you reap the benefits your landlord has been reaping from you. Here is how this can work for you. First and foremost speak to a qualified lender about how much money you can borrow for a home. Then start your search with a qualified Real Estate Agent that understands your needs. One of the Best Options for Home Ownership as a first time buyer is finding a duplex. Now I know that may sound strange but let us look at why this is so great.
1. You have been used to living with close neighbors.
2. You get to pick who that neighbor will be.
3. You collect rent from the second unit.
4. Your monthly expenses for your home can be cut in as much as half.
5. You are building equity in the Home.
6. You have started your Real Estate Investment Portfolio.

If you can do this for a period of 3 to 5 years what happens is as you build equity and again begin to save for down payment, you begin looking for a home for your family that is detached. You are not on a lease so if something comes up you fall in love with you can move ahead with that. Once you find your perfect home (although no home is perfect) you can then lease the side of the Duplex that you were living in. This should more than cover the expenses for the Duplex and now you have a steady stream of additional income and building equity in your newly acquired Investment Property. A great option for someone starting out and with prices there are great deals on these types of properties. Hope this helped and feel free to ask any questions.

Friday, November 18, 2011

Buying a Foreclosure Tips and Information

We are sure you have heard that homes facing foreclosure are once again on the rise. So you have decided this may be a good time to buy one of these foreclosed homes. There is some information you need to have to make it a smooth transaction. First of all keep in mind that if the home is a foreclosure the bank has already spent and lost money on the loan. Although these can be a great buy, I have found that if you keep your offer to the bank in the 85% + range of asking price, your chances of purchasing the home are much better. The other thing to keep in mind is that the home will probably need work and is being sold "as is, where is" although some banks will still allow negotiations for repairs. When getting a loan for a foreclosed home, sometimes it is more difficult as the appraiser may put some stipulations on the appraisal for repairs. You may be able to qualify for a FHA 203 B loan which will cover repair cost but will also lengthen the time it will take to get to closing. However it will give you the opportunity to have things completed to your specifications. Be sure your Real Estate agent is versed in the process of purchasing a foreclosure as there is additional paperwork and addendum's that will need to be completer. Overall buying a foreclosure is a great way to get a great home at a great price but be sure to do your due diligence. One more thing that I have heard many times is that the appraiser will do the inspection, keep in mind they are limited and are checking value only for the bank. Hire a professional inspector, the $200 to $300 dollars it will cost you is well worth the cost to avoid problems later. Any questions? Feel free to ask. Thanks again.

Thursday, November 17, 2011

Tips for selling a home in the current market

Yesterday we went over some of the tips for selling your Home in this market by doing some things on the interior that are free or very inexpensive, today we will give some additional tips that can surely help.
11. Remove debris (dust,flies,moths etc.) from all the light fixtures, the buyers will turn on the lights.
12. Keep bathrooms scrubbed, tidy and equipped with fresh soap and neatly hung towels, matching if possible.
13.Get rid of all stains and install new washers on any dripping faucets.
14.Feature, with lighting or furniture arrangement your home's best characteristics such as fireplace, picture window, balcony, ceiling beams or any other feature that you have enjoyed.
15. If you have repainted, hopefully in a safe neutral tone, add bold splashes of color using throw pillows and some accessories.
16. Indoor plants can be great if arranged nicely throughout rooms, the larger the plant the better if the space permits it.
17. Light the entire home especially any dark corners or under cabinets in corners. Keep any hallways well lit as well.
18. Hang Mirrors where they will reflect outdoor light as it will also make the rooms appear larger.

These are some basic low cost and free items that can assist in getting your home sold. The most important part of getting a home sold in today's market remains pricing. Use a qualified Real Estate professional to assist in pricing your home and you will be able to achieve your goal to sell your home. As always if you have any questions just let us know. Thanks again for looking.

Wednesday, November 16, 2011

Tips for selling a home for the best price in the current market

Yesterday we talked about what you can do for the outside of your home to get it sold at the best price in today's market. Today we will begin the series on what can be done inside the home to make the home look its best when a potential buyer comes to visit. Since there are several things that can be done indoors we will cover a few on each post.
1. Clean everything in and out of sight. Shampoo rugs and wax floors. Wash down any spots on walls and the baseboards. Most importantly clean blinds, window treatments and windows.
2. Weed clutter out of closets and cupboards. People will look in your cabinets and closets so you want them to look roomy with plenty of space for storage.
3. Create additional space by storing some of the extra furniture you've found useful but which makes a crowded impression.
4. Place your furniture so that traffic can flow easily through the home. When buyers have to walk around furniture to get to places it makes the home feel small.
5. Scale down on personal art work, posters and family photos. You want the buyer to see the home as theirs. Pay attention to any teenagers rooms. You want to create a feeling of spaciousness.
6. Keep shades and drapes open to admit as much light as possible but screen out any unpleasant views.
7. Let your kitchen look warm and inviting not a hectic work space. Keep the sink shining and free of dishes.
8. Organize your kitchen cabinets, yes they will look in those as well and space is what you want them to see.
9. Clean the refrigerator as yes they will look in there as well.
10. Keep counter tops clear, but not empty adorn them with your most attractive canisters.
Completely degrease your oven and vent above the stove. Let the kitchen smell fresh and fragrant. If you have the time warming cinnamon in the oven is a great idea.
These are great easy steps that do not cost much other than cleaning the carpets and can make all the difference when a buyer looks at your home. We will finish this series in our next post with some additional tips. As always any questions feel free to ask. Thanks

Tuesday, November 15, 2011

Investment Opportunity Home

Investment Opportunity Home

Tips for selling a home for the best price in the current market

I am sure most people have heard about Staging a Home to sell. This can help sell the home at a higher price in a shorter time. There is cost involved and some people just can not afford the extra expense to sell their home. So what to do. We have some tips that are Free and Easy fix ups to sell your home at the best price. Today we will examine 8 items for the Outdoors of your home, remember the exterior is the first impression, these are very low cost effective tips.
1. Spruce up all around the home. Keep lawn and shrubbery trimmed and free of bicycles and other clutter. Keep garden beds weeded and mulched.
2. Put a flowering pot on the front step and keep it watered and trimmed.
3. Fill any potholes in your driveway and tidy up your walkways including edging.
4. Clean any outdoor furniture if any is rusted remove the rust or remove the items.
5. Clear out the garage of everything except cars. If your garage has become a second attic, remove the items.
6. Straighten gutters, mailbox and any fencing if they are sagging or in disrepair.
7. Fix doorbells, tighten all doorknobs and oil any squeaking hinges.
8. Repair any broken windows or shutters.

These seem like small items but I promise as soon as a Buyer for your Home pulls up they begin making their determination on your property immediately based on what they see. If they are still interested they will start deducting dollars they plan on offering costing you much more than the minor repairs and cleanup.

Next post will be on what you can do Inside your Home to make it most appealing.

Let us know if you have any questions. Thanks

Monday, November 14, 2011

Are Rent to Own and Lease Purchases a good option?

With lending as it is these days and people finding it harder to qualify for loans, I get this question all the time. The short answer is YES and there is a big BUT involved. while this can be a great option to get into a home, it can come with a big risk which includes losing the money you put down. I do not want to scare people off from entering into a Lease Purchase or a Rent to Own, I just want to explain how you need to cover yourself. Even though I am a Realtor that is not why I am saying this. First thing is get a Realtor, they can research to see if the property is distressed, the worst thing that can happen is you put your money down, make your payments and then get a knock on the door from the Sheriff delivering a foreclosure notice. This can be avoided easily with the proper contract. You can negotiate that you make the payment to the mortgage company and the difference to the seller. This protects you from the payments not being made. During the contract negotiations be sure to request a copy of the current mortgage statement. Request a copy of the current tax bill receipt of payment. Request a current copy of the homeowners insurance policy. These may seem like intrusive items to be asking for but keep in mind you are spending your hard earned dollars on this home. This is just another reason you should be using an experienced Realtor in the Rent to Own and Lease Purchase programs, keep in mind to them it is business so they would have no problem asking the tough questions of the seller. If your Agent is not comfortable asking these hard questions and getting the required documentation, I say change Agents before you end up losing your hard earned dollars. I hope this helps and feel free to ask any questions.

Sunday, November 13, 2011

10 Mistakes Buyers Make when Purchasing a Home continued

In our final post of these 10 Mistakes Buyers make when Purchasing a home we will end with the final two. We have been through the first eight, Making an offer on a home without being pre-qualified, Not having a home inspection, Limiting your search to open houses, ads and the Internet, Choosing the proper Real Estate Agent, Thinking there is only one perfect house out there, Not considering long term needs, Not examining Insurance issues and Not buying a home protection plan. The final two although you could come up with more, these are just the top ten:
9. Not knowing the total costs involved in buying a home: Very early in the process, ask your Realtor and Lender for an estimate of all closing costs, Title company's and attorneys fees should be considered. There will be items that are required to be  pre-paid by the lender and these can add up quickly if you are not prepared. Association fees if there is an HOA should also be considered. Be sure to examine your settlement statement and have it before you get to the closing table so you can get any questions answered before closing. Your Realtor should be able to provide this at least 24 hours before the closing.
10. Not following through on due diligence: Buyers should make a list of any concerns they have relating to issues such as, crime rates, schools, power lines, neighbors, environmental conditions etc.. Ask the important questions Before you make an offer on the home. Be diligent so that you can have confidence in your home purchase.

Hope this has helped and feel free to ask any questions. Thanks

Saturday, November 12, 2011

10 Mistakes Buyers Make when Purchasing a Home continued

We have now covered 6 of the Mistakes Buyers make when Purchasing a Home. Making and offer without being pre-qualified, Not having a home inspection, Limiting Searches to Open Houses, ads and the Internet, Choosing the right Real Estate Agent,Thinking there is only One Perfect House and Not Considering Long term needs. Today we will discuss a couple of more.
7. Not examining insurance needs: Purchasing adequate insurance is a must. Advice from your insurance agent can help determine what type of coverage is needed and they can help determine replacement value so you are not at a loss in the event something happens.
8. Not Buying a Home protection Plan: This is essentially a mini insurance plan that lasts one year from the closing date. It usually covers basic repairs you may encounter such as heating and air conditioning systems, plumbing and electrical issues. Your Realtor can help you determine the best plan available and the cost is minimal.

We will cover the final two Mistakes in our next post. If you have any questions on these let me know. Thanks

Friday, November 11, 2011

10 Mistakes Buyers Make when Purchasing a Home continued

In the previous posts we have discussed Making an Offer on a home without being Pre-Qualified, Not Having a Home Inspection and limiting your search to Open Houses, Ads and the Internet. Today we will explain a few more mistakes.
4. Choosing a Real Estate Agent who is not committed to forming a strong Business Relationship: Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving Your Needs, before, during and after the sale. They should be informing you every step of the way and guiding you in your decision process by supplying the information you need to make an informed decision.
5.Thinking there is only one perfect house out there: Buying a home is actually a process of elimination, not selection. New properties arrive on the market daily so be open to all possibilities. Ask your Realtor for a comparable market analysis. This will compare similar homes that have recently sold or are still for sale. You may have to compromise on a few things to get the majority of what you are looking for.
6. Not considering long term needs: It is very important to think ahead. Will the home fit your needs 3 to 5 years from now? Whether it is because of layout, size of rooms or location these are important things to consider.

Next posting will cover the last 4 mistakes. Hope these have helped and if you have any questions just let us know.

Thursday, November 10, 2011

10 Mistakes Buyers Make when Purchasing a Home continued

Yesterday we posted the list of mistakes Buyers make when Purchasing a Home, today we will expand on some of those.
 1. Making an offer on a home without being pre-qualified,
The problem with that is: Most sellers will not consider an offer unless they are comfortable that you can Purchase the Home, so take the time to speak with a lender. Their specific questions in regards to income, debt etc., will help you determine the price range you can afford.It is one of the most important steps in purchasing a Home.
2. Not Having a Home Inspection.
Trying to save money today can end up costing you tomorrow. A qualified Inspector will detect issues that many Buyers can Overlook.
3. Limiting your searches to Open Houses, Ads or the Internet,
Many times the Homes listed on the Internet and in magazines have already been sold causing you unnecessary disappointments. Your best course of action is to Contact a Real Estate Agent. They have Up to Date information that is unavailable to the General Public and are the best resources to help you find the Home you want.
We will continue with the other steps during our next post. In the meantime if you have any questions feel free to ask them. Thanks

Wednesday, November 9, 2011

10 Mistakes Buyers Make When Purchasing A Home

So you are ready to buy a home, now what? Well the process can be simplified if you avoid the 10 mistakes buyers make when purchasing a home. What are they you may ask, well here are the most common mistakes:
1. Making an offer on a home without being pre-qualified.
2. Not having a Home Inspection.
3. Limiting your search to Open Houses and ads on the Internet.
4. Choosing a Real Estate agent who is not committed to forming a strong business relationship with you.
5. Thinking there is only one perfect house out there.
6. Not considering long term needs.
7. Not examining insurance issues.
8. Not having a home protection plan.
9. Not knowing the total cost involved.
10. Not following through on due diligence.
We will post explanations for each of these mistakes to avoid in the next couple of posts.
Your Real Estate agent should go through all these points with you. When choosing an Agent be sure their first concern is your needs not their commissions. Hope this helps.

Tuesday, November 8, 2011

Closing Costs when Purchasing a Home

In today's market I constantly hear that sellers will pay the closing costs for a buyer. In the current market it has become customary for a buyer to ask for closing cost but do understand that is just another negotiated item, sellers are NOT required to pay a buyers closing cost. There are a few things to consider when asking the seller to pay for your closing cost. First is how your Real Estate agent words it on the sales contract. A good Real Estate agent that represents the seller will inform their client to only pay non recurring closing cost. When this happens the buyer will be required to pay all pre-paid items such as, Insurance, taxes and all up front escrow amounts. This could be well over $1,000 and if the buyer has not planned for this they could be very disappointed at the closing table. As a buyer avoid asking for a % amount in closing cost. I have seen contracts that involve % amounts and if the terminology is not correct you can be paying a lot of money at the closing table.  An example I had a contract come in that read, seller to pay 3% of buyers closing cost. What that amounted to was just over $75.00 which was $2,000 less than the buyer had anticipated. The terminology in a contract is the most important aspect as once it has been accepted any changes once again need to be negotiated and your dream home could slip away if the seller happens to have received another offer while you were waiting on closing the property. Be sure your Real Estate agent understands what you are expecting so they can work for your best interest. Hope this helped and let me know if you have any questions.

Monday, November 7, 2011

Rent to Own VS Bond for Title Questions

From my last post about Owner Financing and Rent to Own properties I had a question about what is a Bond For Title so I am adding this definition along with information.

 A Bond For Title IsA method of selling and financing real estate; also called a land sale contract or a contract for sale.The owner signs a contract agreeing to transfer the property to the buyer after the buyer makes all required regular payments over a certain period of time.Unlike a mortgage,the seller avoids many problems associated with foreclosure and possibly bankruptcy if there is a default. The practice is looked upon with disfavor by courts, which typically try to find ways to convert the relationship in some sort of equitable mortgage,and thus grant the consumer protections afforded by the law.


If an owner is willing to finance a property it is better for the Buyer to have a mortgage from the seller to avoid these issues. Hope this helped.

Rent to Own or Owner Finance Homes Cautions

Recently I met with a company that specializes in Rent to Own and Owner Financed Homes. The process is simple and some companies do no types of Credit Checks or Qualifications for these Homes. How can they do that you ask? Well the process goes like this, you put down X amount of money, usually between $3,000 and $7500 and they amortize the balance of the purchase price over a specified period of time most of the time the asking price is not very negotiable. You make the payments along with taxes and insurance and all goes well. What I was told is the average length of time before the potential homeowner gets in trouble is 27 months. This is what the company is counting on so they can resell the home once again with a down payment and rent to own contract. The system is basically a rental home with a high dollar non refundable deposit. SC courts have had some say into what part of equity a potential Rent to Own buyer has and the companies out there are doing all they can to bypass having to go to court to remove a "tenant" usually by doing a sub lease for the buyer. Be sure you as a buyer know all the details on what can happen and what type of contract you are getting into. I would recommend contacting a Real Estate Attorney to view the contract and explain what your rights are. If you need additional information just let me know. Thanks. 

Sunday, November 6, 2011

Buying Distressed Properties

In today's market it seems there are plenty of distressed properties to chose from. If you are looking for a home to occupy you have the advantage. Many programs put a hold on investors offering on distressed properties. The standard time frame is 15 days from the time the property becomes available on the market. If you are looking for a great deal on a home to call your own there are a couple of things you should do. First and foremost is speak to a lender about getting qualified for a home. Most large lenders will not loan on amounts below $40,000 so you may want to speak to a local small bank or credit union. Once you have your financing commitment from a lender, speak to a Realtor and explain what you are looking for. That way as the properties become available they can notify you. The advantage of being a owner occupied buyer is these programs will sometimes allow you to purchase the home for less than they would an investor. The key to any of these homes is to have good inspections so you know exactly what you are getting into. These can be great buys and keep monthly payments very low. Just remember the probability is you will have to do some repairs and renovations. Hope this helps and if you have questions just let me know.

Friday, November 4, 2011

Short Sales and the Agents Responsibilities Continued

With Short Sales and Foreclosure being a larger part of some Real Estate agents business, consumers may not be aware of new regulations requiring disclosures. This link will help both the consumer and the agent to insure that the consumer is protected. I do not know how all the states operate but I do know that in SC the State has always taken the stand that their responsibility is to protect the consumer not the agent so be sure you have received the disclosure from your agent and agents be sure to have these in your file. Hope this helps. http://screaltors.org/news/2011/03/mars-disclosure

Short Sale Assistance Offered

In our last post we talked about Foreclosure Help and the programs available along with the criteria that must be met. In this final post of this topic we will inform about the program that offers assistance in the event that you have negotiated a Short Sale with the Lender instead of a Foreclosure. This program is called the Property Disposition Assistance. The description is, assistance is paid to the homeowner to cover moving expenses and rental deposits, the Homeowner MUST apply prior to the Short Sale or deed-in-lieu, Short Sale or deed-in-lieu must be executed. The maximum assistance available is $5,000 per household and is paid post-closing. The additional eligibility requirements are, the delinquency event must be ongoing with little or no expectation of recovery, this assistance cannot be used in conjunction with Home Affordable Foreclosure Alternative (HAFA) program, or payments from similar assistance using other Federal Funds. Hope this has helped inform you of options available for Foreclosure Help and Short Sale help. Feel free to ask any questions. Thanks

Thursday, November 3, 2011

Foreclosure Help and Program Description

If you are facing Foreclosure help is available. There are two programs that will help to Prevent Foreclosure and one program to help if a Short Sale is an option for you. Program one is Monthly Payment Assistance, the program will, assist eligible borrowers by making their full monthly payments (PITIA) up to 12 or 24 months. Underemployment or self employment up to 6 months. Maximum assistance is $36,000 per household, including direct loan assistance and/or property disposition assistance. The additional eligibility criteria is, Must document at least one wage earner in the household is receiving unemployment compensation or has exhausted unemployment compensation within the last 12 months, or, total household income has been significantly reduced due to job loss or reduction in hours (underemployment), or, reduction in gross receipts (self employed). Homeowner must be actively seeking reemployment during the assistance period. Program two is Direct Loan Assistance, the program will make a one time payment to help bring borrowers current on their mortgage following a brief interruption in income. Maximum assistance is $20,000 per household. The additional Eligibility Criteria is the borrower must demonstrate that the circumstances that led to the delinquency have been resolved. Need more information? Just let me know. Next subject will be the Property Disposition Assistance program

Wednesday, November 2, 2011

Foreclosure Help Available

If you are having issues due to circumstances beyond your control you may be eligible for help if you are possibly facing Foreclosure. There are some eligibility criteria you must meet: Must be a "Responsible Borrower", A Responsible Borrower is a borrower who is facing possible Foreclosure due to circumstances beyond his/her control, ie, unemployment, temporary loss or reduction of income, death of a spouse, catastrophic medical expenses, and/or divorce, in addition the borrower may have to  satisfy other certain criteria. First Mortgage must be a fixed term, fully amortizing and the original loan amount must be within GSE limits, ($729,750). The Borrower must be the Owner Occupant as the primary residence located in South Carolina. Other states may also have a program of this type. There are other eligibility criteria depending on the program you are applying for. There are three programs available, Monthly Payment Assistance, Direct Loan Assistance or Property Disposition Assistance. In the next Blog we will discuss each of these Programs in Detail. Need quicker information just let me know. Thanks

Tuesday, November 1, 2011

Evaluating Investment and Rental Properties

Having had the opportunity to work with many investment clients and listening intently to what they look for and how they evaluate the Investment Property there are several things I can share. The most important thing when considering an Investment Property is actually the exit strategy. That may sound strange but all the investors I have worked with tell me the same thing. While evaluating Investment Property the questions they ask themselves are, How long before the property can be rent ready? How much will it cost to get it that way?  How many homes comparable to this have sold within a 2 mile radius over the past 8 months ( down from 12 months)? What amount of rent is fair for the area? Can this home be grouped with others for an investment portfolio? Once these questions have been answered the savvy investor can determine at what price the property  needs to be purchased for to fit their required return on investment. The most important part is to be ready to walk away if you cannot get the Price and Terms required to reach your return on investment goals. Hope this helped, let me know if you have other questions. Thanks

Monday, October 31, 2011

The Importance of a Home Inspection

So you have chosen the perfect home, Now What. Well once the Home Negotiations are finished it is time to schedule a home inspection. These can be very beneficial both in negotiating and for piece of mind on the Home you are about to Purchase. The most important thing is to pick your own inspector especially if your agent represents the seller in the transaction. Too many horror stories about problems after the close of the home. If at all possible be at the inspection so you can both ask questions and be assured that the inspector is checking every area. Keep in mind the sales contract will have date specific as to when inspections have to be completed. If you fail to follow those dates the seller has no obligation to do any repairs, many times the inspection deadlines fall through the cracks. Review the inspection and decide which repairs are most important to you. In most every case a seller will have to repair any items that are safety hazards. Follow up after the repairs, most inspectors will only charge a nominal fee to reinspect to insure that repairs are done properly. Hope this helps

Sunday, October 30, 2011

Short Sales Why So Long?

As in the previous posts about Short Sales we have reviewed what roll everyone plays in the Short Sale Process. Now why it takes so long to complete a Short Sale.  Short Sales are different from regular Home Sales and challenging to process since they involve more parties to the transaction, Short Sales Transactions include, Borrower (seller), Loan Servicer, Potential Buyer, Investor, Mortgage Insurer (if applicable), Sellers Real Estate Agent, Buyers Agent and any Subordinate lien holder. The Mortgage Company and Investor both perform valuation reviews because Short Sales are often viewed by potential buyers as easy opportunities to buy a home well under market value. Exceptionally Low Offers are frequently submitted. Some agents actually submit what lenders call "straw" offers to test the bottom line of the lender, this only extends the process as lenders will only look at one offer at a time. Many Fraud Risk reviews must be completed. Each Short Sale is different depending on how many parties are involved because of that lenders often cannot tell the parties how long the process will take. The key in a Short Sale is patience. Hope this helped explain why a  Short Sale takes so long to process.

Saturday, October 29, 2011

Short Sale Steps and Myths

As mentioned yesterday, Short Sales can be a daunting task. Once a Short Sale is Approved sometimes sellers believe that everything is done. So here are some common Short Sale Myths that sellers can fall into. Clients believe once a contract has been submitted the Short Sale is a done deal, Fact is once the contract is submitted the lender begins working on the approval process and must get approval from several parties before it can be agreed upon. Existing borrowers believe they are no longer responsible for the debt and should stop making payments. Fact, until the property actually closes the borrower is responsible, if they stop making payments more fees are incurred and that can cause the contract to be denied as the expenses are increased. Borrower thinks the remainder of the debt is forgiven. Fact the lender may require the borrower to contribute at the closing or sign a promissory note for any remaining balance. Be sure you know the answers to all of these before you think the deal is done. Keep in mind the investor of the loan itself determines reasonable market value and has to approve the offer. The actual lender the majority of the time is not why the Short Sale process takes so long, the other parties involved such as secondary lenders can extend the time-frame while negotiating what amount of money they will accept and receive. Next post on Short Sales will be why do they take so long. Any questions? Just let me know. Thanks again and I hope this helps.

Friday, October 28, 2011

Short Sale Process Step by Step

As more Short Sales are submitted to Banks and Lenders the Short Sale Process Steps have been updated. Here are the newest Short Sale Steps by leading lenders. Initial Step, Complete a Short Sale Application and get assigned to a negotiator, Property Evaluation, (appraisal or BPO per investor requirements), Short Sale Negotiator completes initial review of the Short Sale Application, They will review the Purchase Value to Amount Owed and the Local Housing Values, they will also review the Hardship and the Debt to Income ratio, they will then review the Contribution, this is to see if the homeowner has assets to assist in the difference between the amount owed and the amount the home is sold for. Most importantly the Short Sale MUST be an arm's-length transaction, the home cannot be sold to a family member, friend or close business associate. once initial Short Sale steps are complete the Negotiator will complete an introduction call to both the Realtor and the seller this will include negotiations on commissions, fees and costs, pricing of the property, timeline and if the seller will be contributing. Once all the initial and additional steps are completed there will be a Short Sale application decision and once it has been approved the negotiator will contact the Realtor and the seller. A Short Sale approval is valid for up to 45 days. Applying for a Short Sale is a daunting task but with the proper Realtor the process can be streamlined and completed within a reasonable time. Next blog will be Myths about Short Sales, so stay tuned.

Thursday, October 27, 2011

Short Sale Requirements and Realtors Role

Just came from a panel discussion with the head of Short Sale Departments of two major banks, here is what I learned and I hope you find it helpful. The most important part of the process is the initial document package requirements so here is a list of what is needed: The seller provides to the Realtor, signed and dated financial worksheet listing all monthly expenses, signed and dated hardship letter ( an explanation of why the seller is unable to pay the mortgage) this can me the most important document, Letter authorizing the Realtor access to information on the account (must be dated and include the last 4 digits of the seller's SSN and signature, the full account number and property address) , last two (2) years income tax returns, two (2) most recent bank statements within 30 days, third party authorization form to give the mortgage company permission to speak to all the parties involved, current year to date Profit and Loss statement (if self employed), two (2) most recent pay stubs (within 30 days). These are just the responsibility of the homeowner and should be turned over to the Realtor to begin the process with the bank. The Realtor also has additional items that they must submit. Although this is a daunting task if the proper procedures are followed and the Realtor does all they are required to do this can save a homeowner from the foreclosure process and give them some control on what happens. Additional questions? Just let me know. Step by Step through the process will be our next topic.

Wednesday, October 26, 2011

Real Estate Trends and News: October Housing Trends Newsletter

Real Estate Trends and News: October Housing Trends Newsletter: Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing inf...

October Housing Trends Newsletter


Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click on this link to view the Housing Trends OCTOBER - 2011 Newsletter:
http://agentdadams.housingtrendsenewsletter.com?newsletter_id=278

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

Housing Trends eNewsletter is also filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, housing market video reports, blogs, real estate glossary, maps, mortgage rates and calculators, consumer articles, community reports that map shopping, schools, recreation and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:
http://agentdadams.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.

Mobile Homes as Investment Properties

In today's market more people are turning to Mobile Homes as investment properties for rentals, Why? There are several reasons for this, the main reason is the low cost to acquire these properties. If you have land that you can place the home you can get homes for under $10,000. With rental rates going up even a renter at $450.00 per month can give you a return on your investment of over 40%. Buying Mobile Homes on their own land can be done starting under $20,000 keeping your return on investment very high again. Another reason is you can afford to rent them for less dollars which in turn gives you more prospects to rent to.The negative thoughts are, Mobile Homes depreciate in value. True that is why the lower the price the better the investment and they can always be re sold usually at a profit. Agents usually stay clear of Mobile Homes so dealing with the owner can be more difficult. Be sure all paperwork is reviewed by an expert, you can call an agent and hopefully they will be happy to help. 

Tuesday, October 25, 2011

Low Price Investment Properties Available in The Upstate of SC

As of this morning there are 150 homes available in the Upstate priced under $35,000. Some of these properties do need extensive work while some would make great rental properties. How do you decide what to do with these type of properties? First you must asses the cost of putting the property in rent ready or sale ready condition. It is advised to have a contractor that you trust do a walk through with you and give an estimate on all repairs along with a time frame to have them complete. Once that step is complete use the estimate to assist in the negotiation of the property both with price and terms. Keep in mind most of these properties may not be eligible for financing so plan on spending some cash. Once the negotiations are complete and you have worked out your ROI on the property, begin the marketing while repairs and updates are being done especially if you are going to resell the property. Buyers like to see the before and after pictures. If you are going to use this as a rental property do your research on other rentals in the area for cost and vacancy rates. I hope this helps answer some of your questions, thanks for visiting.

Monday, October 24, 2011

Home Warranty Information protecting your home.

Some may not be aware how a home warranty works. For a small trip charge anywhere from $50.00 to $75.00 a service technician that the warranty company chooses comes out to evaluate the repairs needed for any covered problem. If approved it is repaired or replaced at the warranty companies expense. These policies range from $300 to $750 dollars per year depending on what type of coverage is needed. These are great plans for rental properties since when a problem arises the tenant can call the company instead of calling you. When listing your home for sale a warranty is also a good idea as many buyers will request it as part of their negotiations and if something goes wrong while your home is listed it will also cover your repairs. The warranty is paid for at closing and if your home doesn't sell there is no fee due. Check coverage's from the companies, since there are several companies be sure to pick the coverage that fits your needs. Ask your Real Estate agent the important question, Do you get paid for recommending this company? If necessary search home warranty companies on your own. You do not have to be selling or buying a home to get a warranty on your home so anyone can have coverage. Thanks for visiting and I hope this information helps.

Saturday, October 22, 2011

Housing Trends eNewsletter- Dan Adams

Housing Trends eNewsletter- Dan Adams

Investing in a Rental Property

In the current Up and Down stock market when your stomach can no longer handle the roller coaster ride, is it time to consider rental properties as an investment opportunity for your portfolio?  If you are in a position to buy one or more rental properties yes it is. The Upstate usually has on average 130 available homes for under $35,000 that can make great rentals. A recent report by Rick Newman of US News Money lists the following about rental rates in Greenville SC.

 Greenville, S.C. Average rent: $677; annual increase: 5 percent; unemployment rate: 8 percent.
A low cost of living and a healthy concentration of companies like BMW, Michelin, IBM, Bank of America, and Bausch & Lomb have kept the economy humming in and around this "upcountry" city in northwestern South Carolina. Rents are cheap, so a fairly small hike is enough to land Greenville on the list of biggest percentage increases. That reflects an economy regaining strength throughout the south.

Now is the time while prices are down and interest rates are at all time lows to look at adding rental properties to your portfolio. Hope this information is helpful. Thanks for looking.

Friday, October 21, 2011

Single Family Homes Sold in The Upstate

Good Morning......As mentioned I want to give everyone an opportunity to receive information about Real Estate here in the Upstate of SC. If you are looking to buy or sell a home this information should help. In the past 30 days here in the Upstate, based on information gathered in the Multiple Listing Service there were 431 Single Family Homes sold, the sellers received on average 94.8% of their asking price and the average days on the market was 107. Keeping this in mind will help you when making an offer on a home or receiving an offer on a home. There were some other factors including seller paid closing costs this can range up to 3 1/2 % of the sales price. I hope this information helps and feel free to let me know if you have any questions. Thanks for visiting.

Thursday, October 20, 2011

S.C. housing shows signs of stabilizing, report says

S.C. housing shows signs of stabilizing, report says

New Information for Real Estate Investors, Buyers, Sellers and Agents

Welcome to my new Blog. I will be posting new information daily on what is happening in the Real Estate Market here in the Upstate of SC. I will also be giving tips to Buyers, Sellers and Investors in this ever changing Real Estate Market. I will also be posting some great information for Real Estate Agents to better improve their business and achieve their goals. Check back often and if you need specific information let me know and I will research and post for everyone to learn. Thanks for visiting.