HOUSE DEED: WHAT YOU NEED TO KNOW ABOUT PROPERTY DEEDS
If you’re a real estate investor or just own a home, it’s important to understand what a property deed is and what it means for you. A property deed is basically a document that shows who owns a piece of property. There are different types of deeds, and each one has its own pros and cons. At MY SMART COUSIN, we help aspiring homeowners and investors, with a particular focus on Black and Brown folks and women, make their Real Estate investment journey a success. As experienced and successful Real Estate Investors and Coaches, we help you determine your strategy and implement a custom-designed business and financing roadmap. And if your focus is on the lower end of the market, we help you buy a house for the price of a car, our personal favorite way to buy real estate! Did you know that house deeds are some of the most important legal documents when it comes to property ownership? In this blog post, we’ll explain everything you need to know about property deeds so you can make sure your interests are protected. Let’s dive in! WHAT IS A PROPERTY DEED AND WHAT DOES IT INCLUDE? A property deed is a legal document that transfers ownership of real estate from one person to another. The deed must be signed and notarized by the seller and delivered to the buyer. The buyer then records the deed at the local land records office. The deed should include a description of the property, and the names of the buyer and seller, and be signed and notarized by the parties involved. It’s also common for the deed to include language that gives the buyer certain rights, such as the right to use the property for certain purposes, or the right to terminate the sale under certain circumstances. The inclusion of these rights is generally negotiable between the buyer and seller. Ultimately, the goal is to create a legally binding contract that clearly sets forth the terms of ownership for all parties involved. HOW DO YOU TRANSFER A PROPERTY DEED TO ANOTHER PERSON OR ENTITY? There are a few different ways that you can transfer a property deed to another person or entity. · One way is to simply sign the deed over to the new owner. You will need to include the date of the transfer, your signature, and the new owner’s signature. · Another way to transfer a property deed is to sell the property and have the new owner file a new deed. This is a more complicated process, but it does have the advantage of giving you some money for the property. · Finally, you can also donate the property to a charity or other organization by filing a deed of gift. Whichever method you choose, be sure to consult with an attorney to ensure that the transfer is legal and binding. WHAT ARE THE BENEFITS OF HOLDING A PROPERTY DEED IN YOUR NAME? If you own a home, chances are good that the property deed is in your name. But what does that mean, exactly? And what are the benefits of holding the deed in your name? There are several benefits to having the deed in your name. · First, it provides evidence of ownership if there is ever any question about who owns the property. · Second, it can help you to get a loan against the property if you need access to liquidity. · Third, it can help to ensure that your heirs inherit the property if you pass away. · And finally, it can provide peace of mind knowing that you have your paperwork in order, should you ever sell the property. If you’re thinking about buying a piece of property, be sure to have the deed transferred into your name or the name of your LLC or corporate entity. It’s one of the best ways to protect your investment. HOW CAN YOU CHANGE THE NAME ON A PROPERTY DEED IF NEEDED? If you need to change the name on your property deed, the process will vary somewhat depending on your situation. For example, if you are changing your name after getting married or divorced, you will need to present a certified copy of your marriage certificate or divorce decree. However, if you are changing the name for any other reason, you will likely need to go through a more formal process. This may involve contacting your local registry office or getting a court order. In any case, it is important to make sure that the deed reflects the correct name, as this can help to prevent problems down the line. ARE THERE ANY RESTRICTIONS ON WHO CAN HOLD A PROPERTY DEED? The answer to this question depends on the jurisdiction in which the property is located. In some jurisdictions, there are no restrictions on who can hold a property deed. In others, there may be restrictions based on factors such as age, citizenship, and criminal history. For example, some jurisdictions may require that deedholders be 18 years of age or older, while others may impose additional requirements such as a minimum length of residency in the jurisdiction. In most cases, however, the requirements for holding a property deed are relatively straightforward and can be easily met by most individuals. As such, it is generally not difficult for someone to obtain a deed to a piece of property. SUMMING IT ALL UP So, what is a property deed? A property deed is a document that shows ownership of the real estate. The deed includes the name of the owner, as well as information about the property itself such as its legal description, square footage, and address. It’s important to hold a copy of your property deed in your own name, as it provides evidence of ownership and can be used for security purposes, or in case you need to transfer the deed to another person or entity. If you
HOW TO BUY INVESTMENT PROPERTY IN SEVEN SIMPLE STEPS
Are you thinking of buying an investment property? If so, you’re in good company. Investment property is a great way to grow your wealth, and there are plenty of opportunities out there for savvy investors. But buying an investment property can be a daunting prospect, especially if you’re not familiar with the process. One little-known but very valuable real estate investment strategy is to target the low end of the market. At MY SMART COUSIN, we specialize in helping new property investors conceptualize, fund, and build their Real Estate empire. As seasoned Real Estate Investment coaches, we work with clients to penetrate the lucrative market of buying a house for the price of a car, or buying at a higher price point if preferred. Our expert team works with aspiring homeowners and investors, with a special focus on Black and Brown folks and women, and customizes a tailored strategy and roadmap to gain entry into the real estate industry and thrive. Are you looking for ways to invest your money and see a good return? If so, buying an investment property may be the right choice for you. But, investing in Real Estate can be tricky – especially if you’re new to it. That’s why we’ve put together this guide on how to buy an investment property. Keep reading for steps that will help make the process smoother and more successful. WHY BUY AN INVESTMENT PROPERTY? When it comes to investing in real estate, there are many different options to choose from. However, one of the smartest choices you can make is to invest in an investment property. Here are three reasons why an investment property is a wise choice: · First, an investment property will provide you with a steady stream of income. Unlike other investments, such as crypto, precious metals, stocks, and bonds, an investment property will generate rental income that you can almost set your watch by every month. This rental income can help offset the costs of the mortgage and other expenses associated with owning the property. · Second, an investment property can appreciate over time. While housing prices have cooled some since the Spring-time highs earlier in the year, prices remain robust throughout most of the U.S. due to high demand among renters for affordable housing. This underlying foundation will likely support the value of investment properties for many years to come, providing solid annual returns when you eventually sell the property. · Finally, an investment property can offer significant tax advantages. The IRS allows owners of investment properties to deduct a portion of the mortgage interest paid on their taxes. This deduction can save you thousands of dollars each year, making it easier to afford your monthly mortgage payments. Buying an investment property is one of the smartest choices you can make when it comes to real estate investing. With a steady stream of rental income and potential for appreciation, an investment property can offer significant financial rewards. And with tax advantages that can save you money each year, owning an investment property is a wise choice for any investor. SEVEN STEPS ON HOW TO BUY AN INVESTMENT PROPERTY 1. FIGURE OUT JUST HOW MUCH YOU CAN AFFORD Just because a property is a good deal doesn’t mean it’s a good deal for you. If you can’t afford it, then it likely will be a terrible and painful investment. Be realistic about your budget and make sure to factor in all of the associated costs, such as repairs, preventative maintenance, property insurance, and property taxes. Once you’ve done this, add a contingency factor of ten percent, or more, to account for any expenses that were under-estimated, or never estimated at all. As the old saying goes, you don’t know what you don’t know. Thus the reason for a contingency: is to add a fudge factor that helps absorb these expenses. 2. RESEARCH THE MARKET Not all investment properties are created equally. It’s important to do your homework and understand the market conditions in the area where you’re looking. Look through news articles and property valuations to see what the trends have been over time. Likewise, read forward-looking city plans and local economic reports to see what’s on the horizon for your target market. If an environmental hazard has recently occurred in the area with the little political will or economic focus on fixing it— think Flint, Michigan’s water crisis in the early days— view these as red flags. 3. GET PRE-APPROVED FOR A LOAN Once you know how much you can afford to spend, it’s time to start talking to lenders. Getting pre-approved for a loan will give you a better idea of what kind of interest rate you can expect to pay, and will help streamline the property-investment buying process. You want to ensure that when you make a purchase offer, you can actually follow through on it if it is accepted. Lining up financing in advance will lend credibility to your offer. 4. HIRE A QUALIFIED REAL ESTATE AGENT A good real estate agent will have experience with investment properties and will be able to guide you through the process of purchasing an investment property, which can differ from purchasing a primary residence. An investor-focused real estate agent can also offer helpful advice on negotiating prices and finding contractors. 5. MAKE AN OFFER ON THE PROPERTY When you find a property that you want to buy, your real estate agent will help you make an offer that takes into account the current market value of the property as well as any repairs or upgrades that may need to be made. 6. HAVE THE PROPERTY INSPECTED Hard money and other non-conventional lenders may not require a property inspection. That said, a property inspection can still play an important role, especially for new investors. An inspection shines a light on what needs to be fixed or replaced, and how urgently. This information is vital in helping to determine the fair market value of
THE BEST REAL ESTATE INVESTING STRATEGIES
To make money in real estate, you need to be able to find the right strategies. If you’re a new investor who’s just getting started with investing your funds in fix-and-flips or rental properties, worry not, there are still plenty of options available. At MY SMART COUSIN, we want to help you make your first step in real estate investing as easy and painless as possible. As a seasoned Real Estate Investment Coach, we help aspiring homeowners and investors, with a special focus on Black and Brown folks and women, implement investment strategies custom-designed for their needs, and buy a house for the price of a car. We lead you through every step of the process with a personalized roadmap, and cash flow management services designed specifically around what is best suited for you. With so many ways to make money in the real estate industry, it can be daunting for beginners. This is why we’ve written this article! In this blog, we’ll outline a few time-tested strategies that work well for any investor looking to start their investing journey, or a more seasoned investor seeking to benchmark their approach. · INVEST IN A REAL ESTATE FUND OR TRUST There are almost as many channels for investing in real estate as there are real estate investors. However, not all of them are created equally. For a brand new beginner with limited-to-no time to spare on finding, evaluating, and managing properties, one of the best ways to learn the ropes is to invest in a real estate fund or real estate investment trust (REIT). Real estate funds and trusts offer several advantages over buying a physical and stand-alone asset: · First, they enable newcomers to leverage the buying power of a large collective of like-minded investors. A real fund or trust will purchase hundreds or even thousands of properties within a real estate class— shopping centers, for instance— or a broad segment such as commercial property. New investors with no or limited free time can participate in the returns on these properties entirely as passive investors. · Second, an investment that contains hundreds of properties versus one, by definition, has less concentration risk, and the potential for greater resiliency in economic downturns. · Additionally, funds and REITs are traded on an exchange, just as stocks, bonds, currency, and commodities are. Exchange-traded assets have much more liquidity than a single house or commercial property, which can take weeks or months to sell. As such, funds and REITS are great options for investors who want the flexibility to be nimble across funds or cash out quickly. · Finally, real estate funds and trusts often have access to exclusive deals and properties that individual investors would not be able to purchase on their own. For these reasons, investing in a real estate fund or REIT is one of the smartest, and certainly, easiest, ways to get started in real estate investing. · BUY A PROPERTY AND RENT IT OUT TO TENANTS A rental property can be a great investment, providing a steady stream of income and the potential for long-term capital appreciation. Additionally, with strong renters in place and the use of a property manager who is focused on customer service and operations, a rental property can be a great long-term and relatively passive investment. Finding renters that have a strong rental and credit profile can be among the biggest worry for new and seasoned investors alike. To attract and retain high-quality tenants, it is important to screen applicants carefully, and apply the same focus and enthusiasm to maintenance as was applied to acquisition. With planning and consistency, it is possible to find rental customers who will value your product— your rental property unit— and service, and engage in a mutually beneficial relationship. · PURCHASE A FIXER-UPPER AND RENOVATE IT YOURSELF If you’re handy with a hammer and don’t mind getting your hands dirty, then purchasing a fixer-upper and renovating it yourself may be an ideal real estate investment strategy. Not only will you be able to save on labor costs, but you’ll add value to the property through your improvements, and gain firsthand knowledge of the property’s strengths— perhaps a solid roof that has many more years of life— and drawbacks— maybe a furnace that can only last another winter or two. Whether you’re inclined to do the work yourself or hire contractors, be sure to do your homework first and consult with a real estate agent or contractor to get an accurate estimate of the renovation costs. Otherwise, you could find yourself in over your head—and in debt—before you know it. But if all goes well, you could end up with a solid rental investment that’s worth much more than you paid for it. And that, my friend, is the best kind of investment. · FLIP HOUSES FOR QUICK PROFITS If you’re looking to make a quick profit in the real estate market, typically on the order of three to nine months from purchase to sale, then flipping houses may be the perfect strategy for you. While it can be a risky venture, there are several ways to minimize your risk and maximize your profits. One key to successful house flipping is to choose properties that need only minor cosmetic upgrades. Additionally, it’s important to have realistic expectations about the value of the property after renovations are complete. Lastly, timing is everything when it comes to flipping. Seek to purchase properties when no one else is looking and competition is thin— Thanksgiving through New Year’s, for instance— and sell when demand is high— May through August when school is out and families are looking to move and get kids settled for a new school year. FINAL THOUGHTS So, which real estate investment strategy is right for you? There’s no one answer as it depends on your goals, financial situation, and comfort level with risk. No matter what route you decide to take, always do your research and consult with a professional
HOW TO MAINTAIN YOUR INVESTMENT PROPERTY LIKE A PRO
Maintaining your real estate investment property doesn’t have to be a daunting task. By following some simple tips and tricks, you can keep your property in top condition and protect your investment. At MY SMART COUSIN, we help aspiring homeowners and investors, with a special focus on Black and Brown folks and women, find Real Estate Investment opportunities that will allow them quick access to buy a house for the price of our car, our personal favorite way of investing, and maintain their investment property like a pro, no matter the investment price point. In this blog post, we’ll share some easy ways to maintain your property and make sure it stays rent-ready and in great shape. Read on for more information! · KEEP THE PROPERTY CLEAN AND WELL-MAINTAINED When it comes to maintaining your rental property, first impressions are everything. A potential tenant driving by should see trim bushes and low-cut grass. Elaborate landscaping or a veritable botanical garden’s worth of flowers is not necessary, the key is a house that looks neat and well-kept from the outside. Beyond their visual appeal, another benefit of well-trimmed bushes and trees is that it lowers the risk of storm damage, should a large branch fall onto your roof or hit a window. Bushes that are cut a ways back from your property also create fewer pathways for insects and other critters to climb straight from a branch onto the side of your property. Once a potential tenant steps inside the property, they should be greeted with a clean, well-lit, and pleasant-smelling space that exudes comfort and warmth. As a landlord, it’s your responsibility to make sure that your property is always in top condition, meaning regular cleaning, preventative maintenance, and prompt repairs when issues arise. Of course, this can be a time-consuming and expensive task, but it’s a great habit to start and an essential step in keeping your tenants happy and your property value high. Luckily, there are some easy ways to stay on top of maintenance without breaking the bank. · One way is to hire a professional cleaning company to do a deep cleaning of the property between tenant move-ins. Likewise, while keeping the garden trim may be a responsibility of the tenant in the lease, hiring a company to perform annual landscaping and vigorously cutting back bushes and trees that may be out of reach for renters, pays dividends in avoiding citations and keeping Mother Nature firmly outside. · Alternatively, if your tenant is handy with small tools and yard work, you can pay them to perform handyman tasks and do annual landscaping. Whatever approach you choose, make sure that you develop and follow a schedule to ensure that major items don’t fall off your radar— your investment will thank you for it in the long run. · REGULARLY INSPECT THE PROPERTY FOR DAMAGE OR NEEDED REPAIRS As a landlord, one of your most important responsibilities is to regularly inspect your rental property for damage or needed repairs. By staying on top of small issues early, you can prevent them from turning into larger, more expensive problems down the road. Ideally, you should inspect your property every few months, or at least once a year. · During your inspection, take the time to walk around the outside of the building and check for any signs of damage, such as cracks in the foundation or missing shingles. · Then, go inside and check all of the rooms, paying close attention to the condition of the floors, walls, and ceilings. · Be sure to also test all of the appliances and fixtures to make sure they are in good working order. · If you notice any problems, make the necessary repairs as soon as possible. By following these tips, you can help ensure that your rental property remains in good condition for years to come. · RESPOND QUICKLY TO ANY TENANT REQUESTS OR COMPLAINTS So how can you make sure you’re responding quickly to tenant needs? · First, it’s important to have a good system in place for tracking requests and complaints. There are numerous online options for tracking everything from rent to new and closed maintenance tickets to photos of completed repairs— making use of one of these tools can save you valuable time. · Once you have a system in place, it’s important to be responsive to every request or complaint. By being responsive to tenant needs, you show concern and respect for your customer and help prevent small problems from becoming big ones. That will go a long way towards keeping your customers happy and rental property in tip-top shape. · MAINTAIN A POSITIVE RELATIONSHIP WITH YOUR TENANTS As any experienced investor knows, one of the most important keys to successful real estate investing is maintaining positive relationships with your tenants. After all, without happy tenants, it would be very difficult to keep your properties rented and generate income. There are a few simple things you can do to keep your tenants happy and make sure they keep renewing their leases. · First, promptly address any maintenance issues that arise. No one wants to live in a property that is in disrepair, so by keeping up with repairs, you’ll show your tenants that you care about their comfort and well-being. · Second, where possible, work with your tenant to accommodate requests such as a financial payment plan if your tenant is having difficulty paying the rent. Being proactive and coming up with an arrangement that works for both of you and that your renter can stick with, can build goodwill, help your tenant stay afloat until they’re back on their feet, and meet your income objectives. · Lastly, take the time to get to know your tenants and build relationships with them. Just as you would with any other business, get to know what other business needs your customers to have and how you might
HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES
Breaking into the world of real estate investment can seem daunting, but it doesn’t have to be. By estimating your expenses, you’ll have a better idea of what you’re getting into and whether the investment is worth your time and money. MY SMART COUSIN is here to help you realize your real estate investment goals. As a Real Estate Investment Coache, we have the skills and expertise that can position almost anyone for success in this competitive market. We help aspiring investors and homeowners, particularly, Black and Brown folks and women, develop and execute a customized, step-by-step plan to scale their finances and move from idea to action. With planning and persistence coupled with guidance from us, we will help you develop a portfolio and break into the most elusive of all real estate channels— buying a house for the price of a car. When structuring your first rental property acquisition, it’s important to estimate your expenses ahead of time. This will help you determine if the property is worth your investment, and whether you can afford it. There are a few different factors you’ll need to consider when projecting your expenses, so keep reading for more information. WHAT ARE THE MOST COMMON TYPES OF EXPENSES FOR A RENTAL PROPERTY? There are several different expenses that you may incur when you own a rental property. · Acquisition expenses are those expenses associated with the initial purchase of the property. These include fees charged by the mortgage lender, legal fees, and municipal or county fees associated with recording the deed. Importantly, the real estate commission will not be paid by you as the buyer— the seller pays the real estate commission, and that commission is split between the buyer’s real estate agent and the seller’s real estate agent. For instance, if the property you purchase costs $50,000 and the real estate commission rate is 6%, the resulting $3,000 commission will be paid by the seller and split 50/50 by the seller’s agent and buyer’s agent. · Rental leasing expenses are those expenses associated with finding and signing a renter, such as advertising and background checks. If you are managing the property yourself, then you will incur these costs, both in money and time. If you hire a property manager, then the property manager will charge you the first month’s rent (or a higher or lower amount, depending on the property management company), and that fee will be used to pay for the advertising, screening, and other renter-onboarding expenses. As an example, if your rental property is listed for a rent of $1,000 per month, then the first month’s rent will be paid directly to the property manager as their fee for finding and placing a tenant. Each time a new tenant is placed in the unit, the one-month fee will be charged. · Operating expenses are those expenses associated with the day-to-day operations of the property, such as maintenance materials, repair costs charged by handymen or contractors, and property insurance. As with the rental leasing expenses, if you hire a property manager, the property manager will charge a fee, ranging from a low of 5% to a high of 15%, depending on the market and the services provided. That fee will pay for the manager to communicate with the tenant on any issues with the property. · Finally, owner expenses are those expenses associated with your involvement in the property, such as travel costs to visit the property. By understanding all of these expense types, you can be better prepared for the financial commitment of owning a rental property. HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES If you’re considering acquiring and renting out a property, it’s important to have a clear understanding of all the associated costs. · CALCULATE THE MONTHLY MORTGAGE PAYMENT One of the biggest expenses you’ll need to account for is your mortgage payment, which comprises principal and interest. To calculate the principal, simply take the total amount you borrowed and divide it by your loan term. For example, if you owe $100,000 on your mortgage and have 20 years, or 240 months, mortgage, the principal portion of your monthly mortgage is $416. Your mortgage interest expense will equal the interest rate on your loan times your loan amount. · ADD IN THE QUARTERLY PROPERTY TAXES In addition to your mortgage payment, you’ll also need to factor in property taxes. These are typically paid every quarter, so you’ll need to divide the annual amount by four. For instance, if your annual property tax bill is $2,000, your quarterly property tax expense would be $500. . ESTIMATE MONTHLY HOMEOWNER’S INSURANCE PREMIUM To estimate your monthly homeowner insurance premiums, start by looking at the average cost of premiums in your area. Insurance rates and provisions vary by the insurer so be sure to get quotes from at least three companies. · INCLUDE ESTIMATED MONTHLY MAINTENANCE AND REPAIR COSTS Next, you’ll need to calculate an estimated monthly maintenance cost. This can be done by taking into account the age of your rental property and the expected wear and tear that it will experience over time. If you think your rental property will need major repairs or renovations in the near future, be sure to factor that into your estimate. By taking the time to calculate these monthly expenses, you can get a good idea of what it will cost to rent out your property each month. This information can help you make informed decisions about the appropriate rental rate to charge. · FACTOR IN ANY APPLICABLE VACANCY RATES OR LEASING FEES You’ll also need to factor in any applicable leasing fees. These can vary depending on the type of property and the location, but they’re typically a percentage of the total rent amount. · SUBTRACT POTENTIAL RENTAL INCOME TO GET YOUR NET OPERATING INCOME (NOI) To calculate your net operating income, take your potential rental income and subtract any vacancy loss,
THE BEST SHORT-TERM INVESTMENTS AND STRATEGIES
Making investments can be a great way to supplement your income and grow your wealth. But what are the best strategies for earning a good return on your money if you’re targeting a relatively short period of time? Applying the right strategy at the right time always creates a win-win situation for you. At MY SMART COUSIN, we’re here to help you get into the property ownership game and do what few others do— buy a house for the price of a car. Whether you are limited by lack of funds for a down payment, high housing prices, or lack of real estate opportunities in your area, don’t let that stand in your way, come talk with us. As Real Estate Investment coaches we specialize in working with aspiring investors and homeowners, especially Black and Brown folks and women. Our objective is to help you reach your home or property ownership goals quickly, effectively, and at a low cost, by teaching you everything you need to know before purchasing a property, from evaluating the dwelling condition to structuring the deal, to shaking loose free and low-cost financing. If your focus is directed at the here-and-now horizon and how to find investment opportunities that can be executed quickly and yield cash flow for immediate goals, we’ve got you covered on that front too. This blog post will dig into a few short-term investment and strategy ideas for anyone seeking to generate returns in a short time period, specifically: · High-yield accounts and certificates of deposit. · Dividend-bearing assets such as REITs, or real estate investment trusts · Inflation-indexed bonds, also called I-bonds. · Gold, silver, and other commodities, as a hedge against inflation · Peer-to-peer lending opportunities HIGH-YIELD SAVINGS ACCOUNTS AND CERTIFICATES OF DEPOSIT When it comes to short-term investments, one tried-and-true vehicle is high-yield savings accounts. These accounts typically offer higher interest rates than traditional savings accounts, meaning your money can grow faster. Average high yield rates for the month of July 2022 range from 1.2% to 1.9%. Since these funds are FDIC-insured, you don’t have to worry about losing your hard-earned principal and interest. Another option is a certificate of deposit or CD. These are typically offered by banks and credit unions, and also offer higher interest rates versus standard savings accounts. One downside of CDs is that you typically have to keep your money in the account for a set period of time or you’ll be charged a penalty. However, if you’re looking for a safe place to park your cash, a CD can be a good option. CD rates have climbed out of the decimal-dust territory, as inflation and interest rates have risen. July 2022 rates for deposit terms ranging from one year to five years are in the low to mid two percent neighborhood, at 2.3% to 2.9%. If you currently have a certificate of deposit that will mature soon and you are interested in rolling it over, check with your bank first to ensure that it will renew at today’s higher rate. Likewise, discuss with your bank if you would like a CD that is the same duration as your current CD (as, for instance, five years), or if you would like to change the duration to something longer or shorter (generally, the longer the term, the higher the interest rate). REIT INVESTMENTS REITs, or real estate investment trusts, are mutual funds of sorts that invest in a collection of real estate assets. The assets can be grouped by property specialties, such as hotels and lodges, or grouped more broadly by type, such as residential properties. REITs are required by the Securities and Exchange Commission (SEC) to dividend at least 90% of their earnings to the REIT shareholders. As a consequence, the dividend payout levels for REITs can be hefty relative to other mutual fund baskets. REITs, like stock investments, can be risky, so do your homework and research the property class and asset management team before investing. INFLATION BONDS Bonds are another option and work particularly well for investors who prize stability and low risk over returns. When you invest in bonds, you’re essentially lending money to a government or corporation. In exchange for your loan, the entity that issues the bond agrees to pay you interest payments at regular intervals and return your principal investment when the bond matures. The downside of bonds is that they typically don’t offer as much upside potential as other investments. A particular bond type that is gaining new fans in today’s inflationary market is inflation-indexed bonds, also referred to as I-Bonds. I-bonds are issued by the U.S. Treasury and sold through their website, TreasuryDirect.gov. The interest rate on I-Bonds being offered through October 2022 is 9.62%. The bond has a 30-year maturity term although you may cash it before then. GOLD OR SILVER AS A HEDGE AGAINST INFLATION When it comes to protecting your finances against inflation, gold and silver have long been considered the go-to options. And for good reason: both precious metals have a long history of maintaining their purchasing power, even in periods of high inflation. Gold and silver can also be easily bought and sold, making them ideal for short-term investors. Other inflation-resilient commodities include oil, lumber, and agriculture. These commodities tend to pass on higher prices— witness the higher prices at the gas pump— when inflation rises. Opportunities for investing in these commodities include index funds and mutual funds PEER-TO-PEER LENDING Peer-to-peer lending is a great way to earn some extra income without having to put up a lot of money upfront. And with the advent of peer-to-peer lending platforms, your potential lending circle as a short-term investor is greatly expanded. Peer-to-peer lending sites post potential lending opportunities and act as middlemen handling payments and associated paperwork. FINAL THOUGHTS So there you have it, a few short-term asset, bond, and savings fund-based investment options to consider for generating cash flow. If you want to make your
A BEGINNER’S GUIDE TO A LEASE OPTION AGREEMENT
Are you thinking about buying a home but don’t want to commit to a mortgage just yet? With the average cost of a house peaking just north of $400,000 in May 2022, it’s no wonder that you’re on the fence. But what if I told you that there are still deals aplenty to buy a house for the price of a car, even in this sizzling housing market? At MY SMART COUSIN, we help aspiring property investors, and particularly Black and Brown folks and women, get into the home ownership and real estate investment game. As seasoned Real Estate Investment coaches, we help you find the right property, analyze and structure the deal, obtain free money as well as lender financing, and close on the transaction. We also help you discover the many channels where you can find a quality, low-priced homes, and invest as a homeowner, a buy and flip investor, or a buy and hold property owner. One vehicle for financing properties is through a lease. I have never heard of a lease option agreement, also sometimes referred to as a rent-to-own agreement, don’t worry – you’re not alone. A lot of people don’t know about this powerful tool for acquiring and selling properties, but it can be a great way to get started in building a portfolio. In this post, we’ll explain what a lease option agreement is and how it works. Read on to learn more! WHAT IS A LEASE OPTION AGREEMENT AND WHY SHOULD YOU USE IT? A lease option agreement is a contract in which the renter has the option, but not the obligation, to purchase their rented property, either during or at the end of their lease term. There are many benefits to using a lease option agreement, especially for those looking to eventually purchase their own home, or as an alternative to the method of selling a property, you already own. By entering into a lease option agreement, the renter can lock in the purchase price for the home and thus mitigate the risk that upon the purchase several years later, the future price is significantly higher. Additionally, a renter can qualify for a mortgage-type loan from the landlord in ways that their FICO score or financials might not allow them to. Lastly, lease option agreements often come with built-in flexibility, allowing the renter to choose a custom lease term length, typically ranging from two to five years. As a result, lease option agreements can be a great way to secure a future home purchase, buying into a neighborhood and home that you’re already familiar with and like. HOW TO CREATE A LEASE OPTION AGREEMENT A lease option agreement is a contract between a renter and a landlord that gives the tenant the right to purchase the property during or at the end of the lease term. The key terms of a lease option agreement include a non-refundable upfront payment which serves as an option fee giving the renter the right to purchase the home ahead of any other offers that the landlord might consider, and rental payments which often include an adder of $100 or more that is credited to the purchase price of the home should the renter choose to exercise their option to buy, the duration of the lease, property maintenance requirements— sometimes the renter pays some or all of the maintenance costs during the lease, and whether the tenant has the exclusive right to purchase the property. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort – If the lease contract includes an added payment that can be credited towards the down payment to purchase the home, the renter should ensure that this payment is placed in an escrow account. Doing so can facilitate the refund of these funds, should the renter not purchase the home. – If the purchase of the home at the end of the lease will occur through a balloon payment, the renter will need to ensure that they use the intervening lease period to get their credit score and finances in order so that they may qualify for a mortgage. – The term of a lease option is typically two to five years. This time period provides comfort to both parties. It is long enough for many tenants to begin the process of qualifying for a mortgage, and short enough for property owners to feel secure in fixing the purchase price 2 – 5 years into the future without risking a substantial and unforecasted run-up in prices, leaving them with unearned profits THE BENEFITS OF A LEASE OPTION AGREEMENT Importantly, a lease option agreement is an arrangement between a landlord and tenant that gives the tenant the flexibility to purchase the property at a later date, usually at a pre-determined price. There are several benefits to this type of arrangement. · First, the tenant may be able to pay, little by little, towards the eventual purchase price of their home while still renting it, through the added payment to the rent. This additional payment provides the tenant with a running start towards building equity in the home and can be used towards the down payment that a mortgage lender will look for when financing the purchase. Depending on how the contract language is written, the added payment may or may not be refundable if the tenant does not exercise their purchase option— renters will want to pay special attention to this section of the lease agreement, including hiring a lawyer or property investment advisor to assist. · Second, the lease option agreement may give the tenant additional time to qualify for a mortgage. This can be beneficial for tenants who are self-employed, have poor credit, or face other challenges that make it difficult to obtain financing. · Finally, the lease option agreement may give the lessee greater flexibility in terms of making changes to the property,
HOW MANY MORTGAGES CAN YOU HAVE? A REAL ESTATE INVESTOR’S GUIDE
As a Real Estate Investor, you’re always looking for new opportunities. And Real Estate is full of options to start or grow your portfolio, including being able to Buy a house for the price of a car. We all know that the housing market is crazy. There are so many options and terms being thrown at us these days. Thankfully, MY SMART COUSIN has been around helping aspiring homeowners and investors, and particularly Black and Brown folks and women, buy a house for the price of a car and manage their money with confidence, be it a first home or an investment property. As your seasoned Real Estate Investment Coach, we’ll guide you through every step of the process so that your journey is well-planned and successful! When it comes to mortgages, how many is too many? This question is one that a lot of real estate investors and home buyers are asking themselves. While there isn’t necessarily a strict answer, having too many mortgages can lead to some serious financial trouble. In this post, we’re going to take a look at how to take on and manage multiple mortgages. Keep reading to learn more! WHAT IS A MORTGAGE AND HOW DOES IT WORK? A mortgage is an agreement between the borrower and a mortgage lender to buy a property. The borrower agrees to make regular payments, over a set period, to the lender for the purchase of a house, car, or other assets. In return, the lender agrees to provide the borrower with the money needed to make the purchase, and places a lien on the property or asset in order to ensure that should you say, forget to make payments, you will receive a helpful reminder in the form of a foreclosure notice, should you not cure the delinquency. Mortgage loans are typically used to purchase homes, but they can also be used to finance the construction of a new home or make renovations to an existing one. The terms of a mortgage loan will vary, depending on the type of property being purchased, the size of the loan, and the financial history of the borrower. However, all mortgage loans will require the borrower to make payments comprising principal and interest, either regularly such as monthly, or all in one go such as a balloon payment. Mortgages can be either fixed-rate or adjustable-rate loans. Fixed-rate loans have an interest rate that remains constant for the life of the loan, while adjustable-rate loans have an interest rate that can fluctuate in response to changes in market conditions. A mortgage is a loan that allows you to finance the purchase of a property. When you take out a mortgage, the lender agrees to lend you a certain amount of money for a set period— for instance, three very long decades in the case of most conventional mortgages, or perhaps only 10 years if you buy your home for the price of a car. In exchange, you agree to make payments on the loan, plus interest. The lender also has certain rights to the home itself until the mortgage is paid off in full. For example, if you stop making payments, the lender may have the right to foreclose on the home and sell it to recoup their losses. Therefore, it’s important to make sure that you’re prepared to service the mortgage before taking it on. HOW MANY MORTGAGES CAN YOU HAVE AT THE SAME TIME? For most lenders, the limit is up to 10 mortgages in your name at the same time. That said, the application process can be challenging. · The first step is to find a lender who is willing to work with you. This can be difficult, as most lenders are not interested in lending money to someone who has a significant level of debt. · Once you find a willing lender, you will need to complete a detailed application and provide a substantial down payment. In addition, you will need to demonstrate that you can make payments on all of your loans. · If you can meet these requirements, then you should be able to get approval for multiple mortgages. However, it is important to remember that having multiple mortgages can be a risky proposition, and you could end up in financial difficulty if you’re not careful. QUALIFYING FOR 1-4 MORTGAGES There are a few things you’ll need to qualify for 1-4 mortgages: · Lenders will want to see income proof, usually in the form of tax returns and W-2s. If you have just started a new job or your business only has one or two years of generating profits, consider holding off for a couple of years to build up your earnings history. · They’ll also want to know your current mortgage situation and any other debts you may have. Transparency is key so be sure to disclose all debt. · A good credit score is also important – the higher, the better. · When you’re ready to apply, most lenders will require a completed application, income and asset documentation, and a credit report. · They’ll also need a property appraisal and a statement of any debts you owe on the property. If everything looks good, they’ll give you a firm offer outlining the terms of the loan. Once you accept, it’s just a matter of completing some paperwork and waiting for funding. Applying for 1-4 mortgages is a pretty straightforward process – as long as you have all your ducks in a row, it should be smooth sailing from start to finish. QUALIFYING FOR 5-10 MORTGAGES · The criterion for 5-10 mortgages is a bit stricter. You will need to disclose any bankruptcies or foreclosures during the last seven years. · Minimum FICO score – 720. · Official proof of income for the last two years. · Minimum 25% down payment for a single-family rental property. · On-time mortgage payments on all existing mortgages for the last 1 year. · Tax return for the last 2 years. THE BENEFITS OF HAVING MULTIPLE MORTGAGES While having multiple mortgages can seem like a daunting task, there are several benefits to taking
WHAT ARE THE WAYS HOME BUYERS CAN AVOID CLOSING COSTS
When you’re buying a home, the last thing you want to worry about is closing costs. But unless you’re paying in cash, they’re inevitably going to be part of your purchase price. So how can you minimize them? Not everyone knows this, but you can Buy a house for the price of a car. At MY SMART COUSIN, we help investors and aspiring homeowners, particularly Black and Brown folks and women, scale their finances and build up wealth by investing in Real estate. As a Real Estate Investment Coach, we specialize in teaching you how to Buy a house for the price of a car and obtain the pride and momentum of starting your real estate investment business or fulfilling your dream of homeownership. Purchasing a house comes with many expenses, but there are ways to minimize the various costs, including closing costs. One often-overlooked way is to negotiate the price of the house down to effectively cover the fees. Another is to investigate programs in your city, county, or state that provide grants and mortgage buydowns that cover the closing costs for first-time homeowners. Let’s continue reading to learn more! WHAT ARE REAL ESTATE CLOSING COSTS? The fees that one pays to the mortgage lender for originating and providing the mortgage are termed closing costs. When you buy a new home, there are many costs involved in the closing process. These include paying your mortgage lender’s fee for structuring and financing your mortgage, taxes on property deeds that will be recorded when it changes hands at the end of the purchase agreement period (also known as “due-on Sale”), appraisal fees for the property, and title search fees which help ensure that the title is properly recorded and any liens against it are identified and satisfied. Your local government may charge additional fees such as for a certificate of occupancy, or if architectural or engineering modifications will be made. When it comes right down to it, it’s hard to say precisely what real estate closing costs include or exclude because there is no standardization. The fees you pay your lender will depend on many factors including your lender’s profit targets and how strong or slow demand is. That said, generally, closing costs include the following: · Home appraisal fee · Loan origination fee · Application fee · Credit report fee · Title search fee · Lender’s title insurance · Owner’s title insurance · Monitoring fees · Tax monitoring fee and tax status research fee · Survey · Attorney and notary fees · Government recording fee · Transfer taxes · Escrow property taxes · Prepaid daily interest charges · Mortgage insurance HOW TO REDUCE CLOSING COSTS In today’s hot housing market, it’s very difficult to eliminate closing costs through having the seller, for instance, pay for them in full. There are, however, a few ways that homebuyers can reduce their closing cost tab. Here are a few tips on how to make it happen. SHOP AROUND FOR A GOOD MORTGAGE RATE The mortgage process is a negotiation, and for that, you need to start with your lender. Shop around to find an offer without any closing costs- most of which can be negotiable! For instance, if you have your checking account, savings account, and credit cards from one bank, don’t expect that bank to necessarily provide you with the best deal. Certainly give your home bank the benefit of the doubt and offer them the opportunity to compete for your business, but spend time researching other lenders as well. Your objective is to line up your roster of potential lenders and compare each on a cost component by cost component basis. This will ensure that there are no hidden fees and that you’re able to negotiate each element of your closing costs. · ASK THE SELLER TO PAY SOME OF YOUR CLOSING COSTS If you are purchasing a home from a seller who is anxious to sell, or are buying a house that has very few interested buyers, then consider asking the seller to pay some of your closing costs. This could include paying for attorney fees and title insurance, which are necessary when buying a home in most cases (but not always). · GET PRE-APPROVED FOR A MORTGAGE BEFORE YOU START SHOPPING FOR HOMES Shopping for a home is an exciting process, but it can be overwhelming too if you don’t know what to look out for. One of the most important things that anyone looking at buying their first house needs is pre-approval letters from banks or other financial institutions. A mortgage lender issues a pre-approval letter only after determining that your credit history and budget fit within their lending profile and options. A pre-approval letter can save you money in the closing process because it minimizes the possibility of last-minute and often unexplained fees to be added to your loan or required at settlement. · ASK YOUR LENDER TO SCHEDULE YOUR CLOSING DATE AT THE END OF THE MONTH A closing date that is scheduled for the end of the month rather than one in the middle or beginning of the month can reduce the amount of cash required at closing. This is because the interest portion of your closing costs will only amount to a day or two of interest if you close at the end of the month rather than at the beginning. · DON’T BUY POINTS IF YOU WON’T BE STAYING IN YOUR HOUSE LONG TERM A point on your loan equals one percent of your mortgage. Meaning, that if your mortgage is $200,000, then one point is a $2,000 cost. Lenders will sometimes suggest that they can reduce your mortgage rate by having you buy points. The costs for points, however, have to be paid at settlement, which increases your closing costs. Also, if you only intend to live in your house for a few years, you won’t be able to benefit from the lower mortgage rate long enough to make up the cost of the points. · VARIOUS GOVERNMENTS PROGRAMS Look into municipal, county, and state government programs, which are often targeted at first-time homebuyers. Such programs offer a range of benefits including