BUY A HOUSE FOR THE PRICE OF A CAR IN THE RECESSION
Is the current economy making it hard for you to buy a house? Have no fear, there are still many on-ramps available to buy a house for the price of a car. It may seem concerning and even downright frightening during these tough times, but remember, there’s always an opportunity, even in the most challenging of seasons. The difference-maker is doing your research and working with a capable guide before taking the leap. Through MY SMART COUSIN, we empower you with the knowledge and skills necessary for financial security. We want to help Black and Brown folks and women, in particular, captain their finances so that buying a house for the price of a car goes from ‘to-do’ to ‘to-done’! As Real Estate Investment Coaches, we guide clients through the various acquisition stages and industry opportunities to build a buy-and-flip or buy-and-hold real estate investment portfolio. Do you want to own a house but don’t think you can afford it? You’re not alone. According to data from the Real Estate Monthly Listing Housing Report, the average listing price for a house in June 2022 was a staggering $450,000, up more than $100,000 over the price in June 2020. But instead of simply shaking your head in dismay, what if I told you that the economy was on your side to buy a house for far less than that? Recession-era real estate bargains are out there if you know where to look. In this blog post, we’ll show you how to buy a house during a recession. So whether you’re looking for your first home or simply trying to invest in real estate, keep reading for tips. IS IT A GOOD TIME TO BUY A HOUSE DURING A RECESSION? A recession is typically defined as two consecutive quarters of negative economic growth. During a recession, many people see the impact of a sluggish economy in the form of reduced job hours, job losses, and lower profits for the self-employed. As a result, consumer confidence drops, and the stock market often experiences declines. However, a recession can also be a good time to buy a house. Because fewer people have the means to buy a home during a recession, demand cools off causing housing prices to fall. Since inflation is part of the mix with this recession, the Federal Reserve is hiking interest rates, leading to higher mortgage rates, which further tamps down housing demand. As a result, buying a house during a recession can turn what was once a seller’s market into a buyer’s market and provide an opportunity to get a great deal on a property. Of course, it’s important to carefully consider your finances before making any major purchase during an economic downturn. But for those who are in a strong financial position, a recession can be a great time to buy a home. THE EFFECT OF A RECESSION ON THE HOUSING MARKET The housing market is primarily driven by supply and demand. When there is high demand for houses, prices go up. The opposite is also true – when there are more houses on the market than there are buyers, prices go down. The Great Recession of 2007-2009 had a profound effect on the housing market, both in terms of demand and supply and on the economy more generally. Many people lost a significant portion of their wealth and were no longer able to afford to buy a home. In addition, mortgage rates rose, making it even more difficult for potential buyers to obtain financing. As a result of the decrease in demand, prices of both new and existing homes fell sharply. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort In terms of supply, the recession led to a decrease in the number of new homes being built. This was due to both a decrease in funding for new construction projects as well as a decrease in the number of people who were interested in buying a home. In addition, many people who already owned homes found themselves unable to sell, further decreasing demand for the new homes that they might move into. THE BENEFITS OF BUYING A HOUSE DURING A RECESSION Although the economic recession has been difficult for many people, it has also created some unique opportunities for those looking to buy. · One of the biggest benefits of buying during a recession is that prices are typically lower than they would be during more prosperous times. · Additionally, demand usually cools off, making it easier to take your time considering a purchase rather than being forced to sign on the dotted line then and there. · A third benefit is that with less demand, sellers are often more willing to make concessions, such as paying for closing costs or including appliances in the sale. Buyers who are willing to take advantage of these market conditions can find themselves in a very favorable position when purchasing a new home. THE DISADVANTAGES OF BUYING A HOUSE DURING A RECESSION · FORECLOSURE RISK One of the biggest disadvantages of buying a house during the recession is the increased risk of foreclosure, should you find yourself unable to afford the home long term. As the economy falters, more and more homeowners tend to fall behind on their mortgage payments. The rising tide of late payments means that banks might, in turn, be more likely to foreclose on properties and sell them at short sale prices. Late payment fees and additional interest can leave owners with very little equity in their home and even result in the home being sold for less than the outstanding mortgage balance. · FEWER FINANCING OPTIONS Another disadvantage of buying a house during a recession is that it can be harder to secure financing. With the one-two punch of lenders tightening credit requirements and consumers feeling the pinch of the economy on their pocketbooks,
A BEGINNERS’ GUIDE TO BUY AND HOLD REAL ESTATE
Buying a home is a huge decision – one that should not be taken lightly. For first-time home buyers, the process may seem daunting. But with careful planning and research, it can be an exciting and rewarding endeavor, particularly if you buy a house for the price of a car. Whether you’re a newbie or an expert, MY SMART COUSIN can help you achieve your real estate investment goals. Our focus is positioning Black and Brown folks and women to purchase their investment property or home sweet home quickly, knowledgeably, and cheaply. We use our skills as experienced and trusted Real Estate Investment coach with people just like you who want the opportunity to achieve what everyone deserves – ownership of their own home. Even in today’s red-hot market, there continue to be lots of potential opportunities. If you’re looking for something that has long-term stability and passive income potential, buy and hold real estate makes a great choice. In this guide, we’ll go over everything you need to know about buy and hold investing – from what it is and how to manage the risks, to how you can get started. Whether you’re a beginner or an experienced investor, read on for more information! WHAT IS BUY-AND-HOLD REAL ESTATE INVESTING? Buy and hold real estate investing is a long-term investment strategy in which investors purchase property, intending to hold it for an extended period to generate long-term gains. This strategy is different from flipping, in which investors aim to quickly sell properties for a profit. While buy and hold investors seek to generate ongoing cash flow from their properties through renting or leasing, they also train an eye on the potential of the property. This type of investing can be a good way to build wealth over time, but it requires patience and a willingness to ride out the ups and downs of market economic cycles. For those who are steadfast and disciplined, a buy and hold path can yield steady monthly income coupled with sustained equity growth. WHY SHOULD REAL ESTATE INVESTORS CONSIDER INCLUDING BUY-AND-HOLD REAL ESTATE IN THEIR PORTFOLIO? Real estate has long been considered a solid investment and for good reason. It can yield impressive results when done correctly, providing both profits and stability for your portfolio. And while there are numerous strategies that real estate investors can use to achieve success, one that has stood the test of time is buying a property, renovating it, renting or leasing it, and holding it for 10-15 years or longer, enabling the property to appreciate over time. With buy and hold investing, you purchase a property based on long-term factors such as the economic drivers of the region. Job growth and road infrastructure projects, for instance, are good weathervanes to gauge when comparing communities and searching for investments. By holding onto a property for an extended period, you stand to see a significant return on your investment. According to studies, properties held for more than 10 years have an average return on investment (ROI) of 12%. That’s more than double the average ROI of stocks! As such, long-term ownership of real estate can be a great component of your investment strategy. So how exactly do you find a property to invest in, and what are the key factors to look for? REMEMBER THE OLD SAYING— LOCATION, LOCATION, LOCATION · Location is a key factor to prioritize when searching for properties to invest in. The closer a property is to a high-demand area such as an urban center or up-and-coming neighborhood, the pricier it will be, and the larger the potential payoff over the long run. · But location shouldn’t be the only factor you consider. The value of the property must also be looked at to ensure you’re getting your money’s worth. It’s important to find a property that is undervalued so that there’s room for profit when selling it in the future. · Furthermore, it is essential to have a clear purpose for investing in a particular property. Are you looking to rent it out through Airbnb or under a long-term lease? Are you planning on managing the property yourself or using a property manager? Once you define your investment strategy, you can quickly qualify and disqualify properties based on whether they meet your objectives. There are many profitable opportunities when it comes to investing in real estate. However, it is important to do your research and exercise caution to maximize your chances of success. WHAT ARE THE STEPS INVOLVED IN BUYING A PROPERTY, FROM FINDING A LENDER TO COMPLETING THE SALE? If you’re thinking of buying a property, there are several steps you’ll need to take to ensure the process goes smoothly. · First, you’ll need to find the right property. This means considering factors such as location, size, and price. · After you’ve found a suitable property, your next step is arranging financing. This can be done through a mortgage broker, conventional bank or hard money lender. · Once your finances are in order, you’ll need to upgrade the property. This may involve hiring contractors to perform renovations, make repairs and improve the curb appeal of the home so it is move-in ready. · Once the property is in good condition, you’ll need to find tenants and manage the property effectively. If you will use a property manager as part of your strategy, then you will need to interview, negotiate with and select a property manager. · Finally, when it comes time to sell, you’ll need to ensure that you make a profit on the sale. By following these steps, you can minimize your risks and maximize your chances of success when buying a property. SUMMING IT UP So, what is buy and hold real estate? In a nutshell, it’s purchasing a property with the intent of holding onto it for the long term. It’s one of the most common ways to invest in real estate
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
THE INVESTOR’S GUIDE TO BUYING MULTIPLE RENTAL PROPERTIES
Some people think that buying a rental property is only for the wealthy. But this couldn’t be further from the truth! You don’t have to be wealthy to invest in real estate – you just need to be smart about it and follow through on your intentions. The first plank in your strategy is to Buy a house for the price of a car! If you focus on buying multiple low-cost, high-value rental properties, you can create a great stream of income for yourself. To start you on your investment journey, select an able coach who has traveled this road many times. MY SMART COUSIN, a Real Estate Investment Coach and investor who has bought dozens of houses for the price of a car, and in some cases, the price of a bicycle, specializes in guiding and directing investors and aspiring homeowners, particularly Black and Brown folks and women, in buying properties. Our coaches know how exciting and also unnerving taking your first crucial steps can be. We help you develop and implement a plan that meets both your investment and financial independence goals by creating a roadmap with milestones and personalized guidance every step of the way. Building a portfolio that comprises multiple properties offers several benefits. It allows you to multiply your profits, and just as importantly, it enables you to build scale and stabilize your earnings through diversification. As with any venture, there are a few key things to keep in mind when making this type of investment. In this guide, we’ll go over everything you need to know before buying several rental properties. Whether you’re just starting or are looking to expand, read on for tips and advice! WHAT IS AN INVESTMENT PROPERTY, AND WHAT ARE THE BENEFITS OF OWNING ONE? An investment property is a real estate property— be it residential or commercial, or a vacant lot or move-in-ready house— that has been purchased to earn a return on the investment through rental income, the future resale of the property at an appreciated value, or both. Investment properties typically are not primary residences or second homes— although you are able to earn rental income from both— which can make it harder for investors to secure financing. However, investment properties can offer the opportunity to earn a return through both long-term rental leases and short-term ones. Before selling an investment property, consult with a financial or tax advisor as selling an investment property might trigger capital gains taxes, depending on the sales price. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, There are many benefits to owning an investment property, including the potential for appreciation, the ability to generate income, and the potential to make a profit when selling the property. However, there are also risks associated with investing in real estates, such as the possibility of declining property values, the risk of damage to the property, and the potential for tenant default. As with any investment, it is important to do your homework before making a purchase. HOW TO START PURCHASING MULTIPLE RENTAL PROPERTIES THE RIGHT WAY Buying multiple rental properties can be a great way to build wealth, but it takes careful planning and financing. Here are a few tips to get you started: · DEFINE YOUR PURPOSE: Your first and most important step is to determine your objectives for your multiple rental properties. Defining your goals upfront will help you make investment decisions along the way. For instance, if your objective is to hold the properties long-term and sell them after 15 years or longer, then your investment criticaría for your properties will differ from those used for a buy and flip. Alternatively, if you’re seeking passive cash flow with an emphasis on don’t-lift-a-finger passive, then you’ll want to engage a property manager. As the old saying goes, if you don’t know where you’re going, then any road will take you there. Once you know what you want, it’ll be easier to map out a plan to get there. · FINANCING OPTIONS: You don’t need to have a ton of cash on hand to buy rental properties. There are several ways to finance your investment, such as taking out a loan or partnering with other investors. Leveraging someone else’s money can help you buy more property than you could on your own, and it can also help reduce your overall risk. · FIND A REALTOR WHO FOCUSES ON INVESTORS: Ready to start building your portfolio of rental properties? Talk to an investment-focused real estate agent in your area to get started. They can help you find investment properties that fit your budget and goals. They can also help you narrow in on the best way to finance your purchase. Taking the first step today will put you on the path to achieving your long-term goals. · FIND A MORTGAGE BROKER OR HARD MONEY LENDER: A mortgage broker or hard money lender who can lay out the steps to prequalify for financing can help you identify and secure funding early on. They can also assist you in finding the best loan products for your needs. · COLLATERAL: If you already own one or more rental properties, you can use them as collateral to finance the purchase of additional properties. This will allow you to leverage your existing investment and increase your return on investment. · CONSIDER A PARTNERSHIP: If you’re not ready to finance multiple properties on your own, consider partnering with another investor. This will allow you to pool your resources and reduce your risk. With careful planning and execution, buying multiple rental properties can be a great way to build wealth. However, it’s important to do your homework and understand the risks involved before making any decisions. TIPS FOR MANAGING YOUR RENTALS EFFECTIVELY As a landlord, you have a lot of responsibility. Not only do you need to make sure your property is well-maintained, but you also need to make sure you’re complying with municipal, county, state and federal regulations. Additionally, you need to be proactive about
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
BENEFITS OF HOMEOWNERSHIP YOU MAY HAVE NEVER CONSIDERED
You may have heard that buying a home is a great investment. And it is true: over time, homes usually appreciate. But what if you could Buy a house for the price of a car? Buying a house for an exceptionally low price is among one of many benefits of homeownership that you may not have considered. At MY SMART COUSIN, we are dedicated to being your most trustworthy Real Estate Investment coach. We are dedicated to and laser-focused on raising your awareness about real estate investment strategies. We support all aspiring homeowners and investors, and particularly Black and Brown folks and women, in helping them to scale their finances and Buy a house for the price of a car. Are you considering buying a home? If so, you may be wondering about the benefits of homeownership. While there are plenty of reasons to buy a home, some of the benefits may surprise you. Here are a few advantages of homeownership that you may not have considered. BUYING A HOME BUILDS WEALTH Buying a home is the best way to build your wealth. When you buy, not only do you get an asset that will grow in value over time, but your house provides you with important tax benefits. Another benefit comes in the form of refinancing your mortgage should interest rates go down— something that seems more like a wish than a likelihood these days, but keep in mind, the economy is often cyclical. Refinancing allows you to capture a lower interest rate, or, should the value of the home appreciate, refinance at a higher value and thus unlock these funds for use in an investment or to pay off more expensive debt. Another benefit of a home is that the increased value over time contributes to your net worth, something which can be very important as you near retirement. A higher-valued home allows you to pay off the mortgage completely, and use the increased value above the mortgage to subsidize your living expenses. THE BENEFITS OF HOMEOWNERSHIP · TAX BREAKS AND INCENTIVES As a homeowner, you may be eligible for various tax incentives. The existence of these deductions might shock first-time homebuyers who have never heard about them before. And while taxes may strike most as a ho-hum and to-be-avoided discussion, when it comes to opportunities to save you money, it pays to dig into the weeds. Homeowners can lower their taxable income by deducting property tax. Owning and living in your own home gives you the benefit of avoiding paying taxes on rental income, as well as being exempt from up $250K after selling a property due to an exemption in capital gains tax- there are certain eligibility requirements but generally through this tax, homeowners will see some relief when they sell their home. · YOU CAN CUSTOMIZE YOUR HOME TO YOUR UNIQUE STYLE As an owner of a house, you have complete freedom in making changes and renovations to suit your needs. As the home is your long-term residence, there is no limit on how much customization can be done according to your personal tastes or requirements. Changing the layout of the home is particularly important as you grow older and evaluate your options to age in place, so this benefit should be carefully considered. · YOU CAN BUILD EQUITY IN YOUR HOME OVER TIME, WHICH CAN BE USED AS COLLATERAL FOR LOANS OR OTHER INVESTMENTS Your home is one of the most valuable assets you have. It’s also an important part of building equity, which can be used as collateral for loans or other investments. The longer you hold onto your home before leveraging it up or selling it, the more you increase your equity in the home. · YOU ARE IN CHARGE OF MAINTAINING YOUR HOME AND THE REPAIRS THAT NEED TO BE DONE One of the best things about being a homeowner is that you can decide how much money goes towards repairs and other maintenance. Unless your mortgage lender decides otherwise, this will remain constant throughout its duration. This contrasts significantly with living in a rented home where your landlord decides the pace and extent of improvements. · YOU CAN CREATE A SENSE OF COMMUNITY BY GETTING TO KNOW YOUR NEIGHBOURS When you make your home a permanent residence, you not only provide yourself with your own little nest, but you also become a part of the greater community. SUMMARY So, now that you know some of the benefits of homeownership that you may not have considered before, it’s time to ask yourself – when are you purchasing your house? If you’re still on the fence about buying a home, take some time to think about the unique benefits that come with homeownership and how they might fit into your life. And if you’re ready to start house hunting, be sure to get in touch with MY SMART COUSIN so that we can help you develop and implement your strategy to Buy a house for the price of a car. YOU CAN ALSO READ: REAL ESTATE INVESTING: WHAT IS PREHABBING? FOLLOW US: @MYSMARTCOUSIN
REAL ESTATE INVESTING: WHAT IS PREHABBING?
Prehabbing is a great way to get started in the world of Real Estate Investing and is something that every Real Estate Investor should know about. Through, MY SMART COUSIN, we help familiarize prospective investors and homebuyers, and particularly Black and Brown folks and women, with the benefits of investing in Real Estate and how can they also Buy a house for the price of a car. Perhaps even more importantly, as a Real Estate Investment coach, we guide you on how to take your finances to the next level and generate a continuous source of income. WHAT IS PREHABBING AND HOW DOES IT WORK IN THE REAL ESTATE MARKET? Prehabbing at its most basic level is preparing a house for the more extensive work required for a large renovation. Prehabbing a home usually involves doing minor renovations to a property and then selling it to an investor. A house that’s full of debris or has significant damage to only a small area of the home can narrow the pool of potential buyers. Prehabbing can make the property easier to sell by giving it more curb appeal and raising fewer red flags. The minor renovations pay for themselves and then some by increasing the perceived value of the property and its ability to become a successful flip. In turn, this increases profits through appreciation-oriented sales strategies like those used by buy and flip investors. WHAT ARE THE BENEFITS OF PREHABBING FOR INVESTORS AND HOMEOWNERS ALIKE? Prehabbing a property has several benefits: · It can shorten the timeline between purchase and sale and thus lead to a faster fix and flip. · The upfront capital required to prehab a property is significantly lower than performing full-scale renovations. Less upfront capital lowers the risk of recouping all of your investment on sale. · A higher profit on sale can be achieved, thus increasing the return on investment. HOW CAN YOU GET STARTED IN PREHABBING? Whether your home is your primary residence or it’s an investment property, readying it for sale rather than taking the what-you-see-is-what-you-get approach with buyers is key to adding value. Buyers, even buyers who are investors, need to be able to see the potential upside of a property. If all they see are problems, they might not be able to get past them and consider the house as a good investment. Addressing a large eye sore such as holes in a wall or in the floor can help put the house in its proper perspective. Paint, as an example, goes a long way in helping buyers see the positive aspects of a house. Whether your prehabbing work involves a complete paint job, new cabinets or landscaping, or bigger jobs such as addressing structural issues with a floor, this work can help homebuyers and investors see the remaining small handful of problems rather than a long and overwhelming list. Another benefit of prehabbing versus rehabbing is that prehabbing limits the amount of cash you tie up in a property and puts a cap on just how much you’ll spend before getting into full-on the gut-renovation territory. By doing a clean-out of the property and tidying up minor cosmetic issues, you provide a clean slate for someone who is planning more extensive renovations. Keep in mind that when prehabbing, you should always prepare the property for its next owner. While fixing small issues like plumbing or painting may seem insignificant at first glance, they are crucial parts of making sure everything will go smoothly in the marketing process. Let’s take a look at the basic improvements that should be done when prehabbing: · POLISHING AND CLEANING FLOORS You can clean the floors while prepping for buyers. Make sure to keep the home presentable by polishing wooden floors and vacuuming carpets. You want this space ready so that when an investor comes through, you’ll be their first choice. · PAINTING A fresh coat of paint should be an essential part of any home renovation. The appeal and beauty will surely impress buyers, while also making your property look better in photos and other marketing materials. · CLEANING Giving your home a good once-over will make it much easier to sell. Be sure to thoroughly clean it with the help of a cleaning service, and check for peeling paint or spots heavy with mildew. Take care of these small details before showing the property so buyers won’t attribute a large cost to fixing what are ultimately minor issues. · BRIGHTEN THE HOME You know what they say—let there be light! If the house is overly dark or gloomy, consider turning on the electricity and brightening it up with a few lamps. SUMMING IT UP Prehabbing is a great way to get started in the real estate market. It can help you learn more about the market and how different factors affect prices. For investors, rehabbing can be a great way to find undervalued properties, spend a small amount on improvements, and sell them to an investor or homebuyer. Contact us to learn more about how we can help you get started today. YOU CAN ALSO READ: 7 Tips to Build an Entrepreneurial Mindset FOLLOW US: @MYSMARTCOUSIN
BUYING REO PROPERTIES: TIPS, PROS & CONS
If you’re a Real Estate Investor or are just thinking about buying a home, you’ve probably heard about REO (real estate owned) properties. REOs are homes that have been taken back by the lender after being foreclosed on. They can be a great deal, and come with the opportunity to acquire properties with attractive profit margins. Another great way to acquire properties that offer an attractive return is to buy a house at the price of a car. Read on to learn more! BUYING A HOUSE FOR THE PRICE OF A CAR It hardly matters if you are new to Real Estate or a skilled expert, an able coach can help you find your way and achieve your goal more quickly. We at MY SMART COUSIN are there to guide you, with a special focus on serving Black and Brown folks and women, and help you move ahead in the right direction and scale your finances. As your trustworthy Real Investment Coach, we help people do what we do routinely and Buy a house for the price of a car through the hundreds of opportunities available daily. Are you in the market for a new home? Or maybe you’re an investor looking for your next big property project. In either case, buying a low-priced REO property can be a great option. Whether you’re just starting to think about it or you’re ready to take the plunge, read on for all the info you need! WHAT ARE REO PROPERTIES AND WHY ARE THEY A GOOD INVESTMENT OPPORTUNITY? A central plank in Real Estate Investing is finding properties with unrecognized or underpriced potential, and flipping them for large returns. What makes a Real Estate Owned property stand out is that the bank owns the house courtesy a foreclosure triggered by the homeowner not paying the mortgage loan on time or at all. Because banks are not in the business of owning houses as part of their core strategy, lenders tend to be willing to negotiate the sales price. These negotiations can result in lucrative investment opportunities–but only when they come up during your search process. Another benefit of REO properties is that the homes tend to be in somewhat reasonable condition rather than of the tumble-down variety ready for a wrecking ball. The reason is that the homeowner may still live in the house right up until the day that the house is sold. While deferred maintenance will likely need to be addressed, it’s unlikely that major structural issues will be the case in such a scenario. If the homeowner is no longer living in the home, the lender is taking on the responsibility of performing minimal maintenance through a third-party servicing company, again, minimizing the likelihood that the property requires a full gut rehabilitation. HOW DO YOU BUY REO PROPERTIES, AND WHAT SHOULD YOU LOOK FOR WHEN EVALUATING THEM? Purchasing REO properties is similar to other forms of house hunting, with a few exceptions: · FINDING PROPERTIES – Begin your search by identifying properties that are in your desired range and market. Meet with your local bank to determine if they maintain a list of REO properties for sale. · HUNT FOR LENDER AND FINANCING OPTIONS – In order to avoid finding a property, only to have your financing fall through, select a lender and obtain pre-qualification early. When the selling bank that has REO properties knows that you are financially eligible, they are likely to take more interest in your offer. · PREPARE A LIST OF SELECTION CRITERIA FOR REO PROPERTIES – It is important to determine what your key must-haves and dealbreakers are in a property before beginning your search. The more time you spend prepping your criteria, the easier it will be to make efficient, confident decisions when presented with multiple listings by different owners and brokers! Start by looking at the properties you own, or the type that catches your interest, to hone in on what your drivers are. Importantly, don’t allow price to be the only factor on your list. Consider other factors such as property location, size, current condition, ongoing maintenance needs, and so on. · GET AN APPRAISAL – Whether you’re purchasing a property for a primary residence or for an investment, appraisals help you determine the value of the property, warts and all, relative to its asking price. · MAKING THE OFFER – If you have a real estate agent, use your agent to make the offer and work with the lender. An agent offers you another set of eyes on things that you might miss, as well as helps to temper emotions. · HOME INSPECTION – Home inspections are important because they can help you avoid costly repairs after the purchase. A home inspection should always be done before finalizing any deal, but this holds especially true for real estate-owned assets as such properties often come without the protection of warranties or disclosures. · THE NEGOTIATION – Banks, like most sellers, will seek to maximize profits and close quickly. Banks, however, usually have multiple levels of approval involved in their chain of command. As such, be prepared for an extended process that is paperwork-heavy. If you are unclear about the purpose of any documents and what they mean, always ask, and then ask again, until you are clear. · FINALIZATION – Once you have come to an agreement with the seller and your lender is completing their close process, your lender will prepare the loan documents and verify the status of the title. · THE CLOSING OF THE DEAL – If everything goes well, you can close the deal on the REO property. The lender and you must sign the documents transferring the house into your name. WHAT ARE THE PROS AND CONS OF BUYING AN REO PROPERTY COMPARED TO OTHER TYPES OF INVESTMENTS OR HOME PURCHASES? THE PROS OF PURCHASING REO PROPERTIES · NO BURDEN OF OUTSTANDING TAXES When you buy a foreclosed property, there are often no outstanding debts or taxes to worry about. Banks will take care of these issues at possession in order to ensure that they remain the primary lienholder on the property. · HIGH RETURN
FHA APPRAISAL: GUIDELINES AND REQUIREMENTS IN 2022
As a Real Estate Investor or home buyer, you’re probably familiar with FHA appraisals. Appraisals are important because they help to protect both the lender and the borrower. Lenders like appraisals because the appraisal confirms that the property is worth enough to cover the loan. Likewise, borrowers like appraisals because it reassures the borrower that they aren’t overpaying for a property. If you’re looking to buy a house for the price of a car, FHA financing can be used to finance both single-family houses as well as small multifamily investment properties, as long as the house serves as your primary residence. MY SMART COUSIN specializes in helping aspiring property investors and homeowners, particularly people of color and women, buy a house for the price of a car. As a seasoned Real Estate Investment coach, we take budding entrepreneurs and property investors from idea to action, help you scale your financing, and walk hand-in-hand with you to develop and put in place your customized Real Estate Investment strategy. FHA BACKGROUND The Federal Housing Administration, or FHA, has been around for nearly a century and was founded in 1934. The FHA is a government-backed mortgage insurance company that insures mortgages for people who can’t afford a large down payment. Stepping in as a mortgage guarantor of sorts makes it easier for people to buy a home, as the lender knows that if push comes to shove and the borrower defaults on their loan, FHA will pick up the tab. With inflation and mortgage interest rates reaching new heights, it pays to stay current on lending practices. In this blog, we’ll take a look at what’s changing with the FHA appraisal process in 2022. Keep reading to learn more! WHAT IS AN FHA APPRAISAL? An FHA appraisal is required by lenders to ensure that a potential property is a good investment. Although, as mentioned earlier, FHA guarantees repayment of a large portion of the loan if a homeowner defaults, banks prefer not to find themselves in this situation. After all, the lender makes money by collecting interest payments on the mortgage, so having the loan paid off early by FHA runs counter to this. One of FHA’s top concerns when evaluating an appraisal is ensuring that the property itself is durable, safe, and fit for habitation. The hired appraiser will look at the property inside and out and check for health and safety issues— for instance, the structural integrity of the property, electrical wiring, and mold or mildew issues. Additionally, the appraiser will look at factors that impact the house’s value— for instance, a swimming pool, a garage, and the condition of the home, and major systems such as the roof or furnace. Appraisers also evaluate the features of comparable homes that were recently sold. So even if you have no interest in keeping up with the Joneses, FHA takes an active interest in them from a valuation perspective! BASIC COMPONENTS OF AN FHA APPRAISAL The FHA appraiser looks for the good, the bad, and the ugly regarding the value of the home and any factors that could prevent it from being occupied long-term, as these factors contribute to the property’s longevity and marketability. Two key areas of focus for the appraisal are pests and paint type. Pests don’t refer to an ant or spider here and there, but rather whether there is an infestation or any damage to the property— for instance, damage to supporting wood beams caused by termites or carpenter ants. Paint refers less to the color or style of paint and more to its safety, specifically, if there are areas of the house that have lead-based paint. Houses built before 1972 are more likely to have used lead-based paint versus newer houses. Other areas on the appraiser’s checklist include the following: · THE PHYSICAL CONDITION OF THE BUILDING ° The foundation, roof, and exterior must not be damaged. ° A big NO to insect infestation ° The wiring and the electrical systems must not be exposed. ° Sufficient ventilation of attics. · THE LIVABILITY OF THE BUILDING ° The utilities must be in good working condition including heat and clean water. ° A shielded sanitary sewage disposal system must be present. ° Lead paints should not be used. ° Fire codes and applicable safety codes should be met. · THE CONDITION OF THE PROPERTY SITE ° The soil should not be contaminated. ° The route of the drain pipes must point away from the home. ° The property must be accessible and safe. Market Comparables ° The appraiser evaluates the price of two comparable properties that have sold within the last 90 days. ° In a volatile market, a period of 30-60 days will be used and three comparable properties will be selected. ° Additionally, market comparables will be selected for properties that have not closed yet and are still listed for sale. Typically the appraiser will select two properties for this analysis. ARE THERE ANY POTENTIAL ISSUES THAT COULD ARISE DURING OR AFTER THE FHA APPRAISAL PROCESS? A clean FHA appraisal puts you one step closer to owning a home, but what happens if the appraisal report raises issues or has a lower than expected value? ° IF THE FHA APPRAISAL REQUIRES REPAIRS In some cases, the lender will conditionally approve a loan if the appraiser states that renovations or updates to the home are required to bring it into compliance with safety standards. In such instances, the buyer can negotiate with the seller to determine whether these renovations will be paid for by the seller or will instead be paid in whole or in part by the buyer. ° A LOW-PRICE APPRAISAL If the appraised value of the home comes in lower than the sales price, then, much as with the renovation scenario above, the buyer and seller will need to negotiate to determine how this lower value will be split. Buyers sometimes despair in the face of a lower appraised value, but this decreased value can force a seller’s hand to provide a price that while lower, is closer to market. FINAL THOUGHTS An FHA appraisal is an evaluation
5 REAL ESTATE GOALS EVERY SMART PROPERTY INVESTOR SHOULD SET
Undoubtedly, Real Estate Investing can be a very lucrative endeavor. However, to achieve success, you need to have a clear plan and set goals. Once your goals are set, ongoing refinement and performance assessments are required to ensure your roadmap remains relevant. Property Investment offers a range of opportunities, from low-cost purely passive investing vehicles such as real estate investment trusts (REITs), to higher cost, and often higher return, active investing through ownership of multifamily and single-family rentals. MY SMART COUSIN helps clients, with a special focus on Black and Brown folks and women, identify, evaluate and close on real estate investment opportunities. We educate clients on the benefits, risks, and strategies of property investment, and in particular, how to Buy a house for the price of a car. As a seasoned Real Estate Investment Coach, we help you move from idea to action, and turn your dream of being a property investor and/or homeowner into a reality. Are you thinking about becoming a real estate investor? Or are you already one, but looking to scale your portfolio, tap into additional financing or improve your skills? Regardless of your experience or current portfolio, it’s important to set goals at every step of your investment journey. That’s why we’ve put together a list of 5 goals that should frame your real estate investment business plan. Keep reading to learn more! beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort WHAT ARE THE 5 SMART GOALS FOR PROPERTY INVESTMENT? Every successful person envisions a path to success, even if the road ultimately taken is quite different than the original plan. SMART goals can provide you with a compass of sorts to hone in on your objectives and set you up for success. SMART goals are often used in the corporate setting to create departmental and career goals. But they also work well to define your real estate strategy. SMART stands for – · Specific · Measurable · Attainable · Relevant · Time-bound If you are an investor looking to get the most out of your real estate investments, then using SMART goals can help. This technique helps narrow down what is important and makes sure that nothing is left behind. SPECIFIC REAL ESTATE GOALS The Real Estate Investing world is a vast and diverse one, with many different styles of investing (fix and flip, wholesale, turnkey, etc.) and real estate types (single-family, multi-family, commercial, vacant lots, and so on). Because of this broad range, it can be easy to get lost in the weeds. Setting clear objectives helps you stay on track, as you progress from goal-setting to goal-assessment to goal-fulfillment. If you’re a visual learner, printing your SMART goals and hanging them in a place you’ll see often can also help remind you where you’re going. Important to creating SMART goals is ensuring that your objectives are stated clearly so that you know what you meant by them months later when reviewing them. MEASURABLE REAL ESTATE GOALS Why are measurable goals better? Simply put, because measurable goals give you an objective yardstick to determine if you’re on track or off-track, and to measure how much progress you’re making. Additionally, measurable goals help rein you in so that you don’t set goals that are entirely out of reach. For new investors especially, it can be helpful to set numerical targets— for instance, ‘visit 5 potential multifamily investment properties by September’ rather than qualitative hard-to-judge targets like ‘go see more properties’. Sharing your goals with a family member or business partner can also help keep you accountable. ATTAINABLE REAL ESTATE GOALS Create goals that strike the right balance of challenging enough to push you, but also practical so they feel attainable. Creating objectives that are unrealistic or overly ambitious can be de-motivating and ultimately cause you to give up, or spin your wheels pursuing goals that are better served for year two or even in your business. RELEVANT REAL ESTATE GOALS Relevant real estate goals get to whether your objective— buying a multifamily property or your first home— really aligns with your life plans at this point in time. For instance, if property investing, while a worthy pursuit, is one of ten other critical things that you’re chasing in life, then it might make sense to take a hard look at your priorities and determine what should be done first, versus going all-in on real estate no matter what. TIME-BOUND GOALS Real estate investing is not just about rent revenues, it’s also an excellent opportunity to build your generational wealth. The surest way to turn your words into action on this front is to set milestones, breaking each goal into a set of tasks, with a timeline for when each task will be done. Setting a date for the achievement of each goal can give you a specific target to shoot for. FINAL THOUGHTS Congratulations! You’ve set your SMART real estate goals. Now what? Each goal will require a different plan of action to achieve success, so it’s important to tailor your strategy accordingly. Thanks for reading and happy investing. RECOMMENDED READ: HOW LONG IS AN APPRAISAL GOOD FOR? 5 FACTORS TO CONSIDER FOLLOW US: @MYSMARTCOUSIN