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 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
ARE NEW CONSTRUCTION RENTAL PROPERTIES A GOOD INVESTMENT OPPORTUNITY?
Are new construction rental properties a good investment opportunity? That’s a question that many people are asking these days. The answer, of course, depends on a variety of factors. But in general, buying and renting newly-built properties can be a great investment, if you do your homework and plan accordingly. The Real Estate Investment Coaches at MY SMART COUSIN are here to help you make your investment in new construction a success. At MY SMART COUSIN, we have the skills and expertise that can position aspiring homeowners and investors, and especially Black and Brown folks and women, to succeed in this competitive market and score one of the most elusive of all finds, a house for the price of a car. New investors will benefit from working with us and our approach of developing a customized plan, tailored just for you. If you’re like most people, you’ve been giving some thought for a while to investing in rental properties. And if you’re considering new construction properties, you may be wondering how they compare to investing in existing real estate stock. In this blog post, we’ll take a look at some of the pros and cons of purchasing new construction rentals. We’ll also help you decide if this type of investment is right for you. So, let’s get started! WHAT ARE NEW CONSTRUCTION RENTAL PROPERTIES AND HOW DO THEY WORK? New construction rental properties can be a great option for marketing to those tenants who are looking for a brand new place to live with all the bells and whistles, and a price to match. Often, these rentals come with amenities ranging from a dog park, to exercise and meditation areas, to on-site childcare and recreation facilities. Since the units are newly-built and often outfitted with high-end appliances and fixtures, there are usually no maintenance issues for you to address in the first couple of years. But how do new construction rentals work? Typically, when you buy a new construction unit, you’ll lease it to a tenant for a set period, usually one to two years. At the end of the lease period, you’ll decide if you’ll offer the tenant any incentives to renew, such as one month free, or a 30-60 days deferral on when rent increases will take place. The amount and type of incentives you offer will depend on what’s being offered in the market, as well as how much or how little rental inventory is available in the building and surrounding area. Many new construction rental properties offer flexible leasing options, so as the landlord of a condo that you’ve purchased and are leasing to a tenant, you can determine if you would like to offer a lease that’s less cookie cutter, perhaps 15 months, if this works best for a great tenant who needs to move due to a work relocation, for instance. WHAT ARE THE BENEFITS OF BUYING A NEW CONSTRUCTION PROPERTY TO RENT VERSUS AN OLDER PROPERTY? There are a few key benefits that new construction rental properties have over older ones. · First, newer buildings are built to present-day code requirements, which are often stricter than those in years past. This means that such buildings are typically safer and more structurally sound than older properties. · Additionally, newer buildings often have better energy efficiency ratings, due to efficient heating and cooling systems, insulated windows and doors, and the like, which can save tenants money on their utility bills as well as meet the objectives of tenants who are seeking a green-energy/low-carbon home. Newer buildings might also have faster and more wide-ranging broadband services, allowing for a better technology-enabled living experience. · Finally, new construction rental properties usually have a modern and sleek aesthetic, which can be attractive to high-paying renters. All of these factors make new construction rental properties a great option for landlords and tenants alike. ARE THERE ANY DRAWBACKS TO INVESTING IN NEW CONSTRUCTION RENTALS? There are a few potential downsides to investing in new construction rentals. · One is that the property might come with high maintenance fees to pay for high-cost and more expansive common areas, on-site pool, and tennis facilities, for instance. One way to offset these costs is to seek out properties that were built with tax credits, and offer savings on property taxes or other rebates. · Another downside is that new construction can have a lower charm factor due to few historical architectural features, ruling out some tenants who might otherwise be interested. · New properties often cost more per square foot than older properties, leading to a lower return on investment and a longer breakeven timeframe. · Additionally, new construction can be subject to unexpected construction delays, leading them to take longer to complete than a property that simply needs a few finishing touches to upgrade it. Construction delays can lead to unforeseen higher costs in addition to delaying when you start earning rental income. Ultimately, whether investing in new construction is right for you depends on your target rental market and goals. WHAT IS THE BEST WAY TO FIND NEW CONSTRUCTION RENTAL PROPERTIES IN YOUR AREA? There are a few ways you can go about finding new construction rental properties in your area. · One option is to drive around and look for signs advertising new developments. Dial into county zoning meetings and look for infrastructural projects such as new roads or sewer improvements as an early indicator of planned developments. · Another option is to search online listings or contact a real estate agent who specializes in new construction. When searching online, you can use keywords like “new construction” or “new developments” to help you find relevant listings. · Once you’ve found a few potential properties, you can then contact the property manager to schedule a showing. · Finally, when touring the property, be sure to ask questions about what a property like this would rent for, whether there are
A HOMEBUYER’S GUIDE TO THE ESCROW PROCESS
When most people think of buying a house, the first thing that comes to mind is the mortgage. How will you afford it? How much can you borrow? What is the likely interest rate? Can you find an affordable property? These are all important questions to be considered. Despite inflation, high mortgage rates, and the newly declared recession-lite phase of the economy, the housing market remains hot. At MY SMART COUSIN, we work with aspiring real estate investors and homeowners, and particularly Black and Brown folks and women, to help you find properties that fit your needs! As your Real Estate Investment Coach, we will walk you through evaluating the current property landscape and develop a custom-tailored plan on how best to invest your money and buy a house for the price of a car. One element of purchasing a property is the escrow process. While this process can seem daunting, it doesn’t have to be. This guide will walk you through the key steps, from start to finish. So whether you’re a first-time homebuyer or an experienced pro, read on for all the info you need. WHAT IS AN ‘ESCROW’ AND WHAT DOES IT INVOLVE? Escrow is a system where two parties involved in a transaction (usually a buyer and seller) deposit all funds and property related to the transaction with a non-related third party. This third party holds the funds and assets until all conditions of the deal are met before finally releasing them to the appropriate party. This process helps to ensure that both parties uphold their end of the bargain before any money or property changes hands. In real estate transactions, for example, the buyer typically deposits funds with an escrow agent at the beginning of the sale process. Once all contingencies are met and both parties are satisfied, the escrow company will release the funds to the seller. Escrow can also involve other assets besides money, such as intellectual property or physical belongings. By entrusting these items to a third party, both parties can be sure that they will receive what they are owed promptly. HOW TO PREPARE FOR THE ESCROW PROCESS? The escrow process can be confusing and overwhelming, but it doesn’t have to be. Here are a few tips to help you prepare for escrow: · First, be sure to choose a reputable escrow company. Ask for recommendations from your real estate agent, attorney, or financial advisor. · Second, make sure you have all of your documents in order. This includes your purchase contract, loan papers, and any other pertinent paperwork. · Third, be prepared to pay any necessary fees. This may include an escrow fee, loan origination fee, and/or title insurance premium. · Fourth, be patient! The escrow process can take several weeks to complete. But once it’s finished, you’ll be the proud owner of your new home. WHAT TO DO DURING THE ESCROW PROCESS? Once you’ve found a home you want to purchase and made an offer that’s been accepted by the seller, it’s time to enter escrow. Escrow is the period between when your offer on a home is accepted and when the sale finally closes and you become the legal owner. During this time, your real estate agent will be working hard behind the scenes to make sure everything goes smoothly. Here’s what you can expect during the escrow process: 1. Your agent will order a title search to make sure there are no outstanding claims or liens on the property. 2. The lender will order a home appraisal to make sure the property is worth at least as much as the loan amount. 3. You’ll need to get insurance for the property. 4. The escrow company will prepare all the necessary paperwork for the closing. 5. You’ll need to sign all the paperwork and wire the down payment and closing costs to the escrow company. 6. The seller will transfer the deed to you and you’ll be given the keys to your new home! WHAT TO DO AFTER THE ESCROW PROCESS IS COMPLETE? So you’ve finally made it to the end of the escrow process. Congrats! You’re now the proud owner of a new home. But what comes next? Here are a few things to keep in mind in the days and weeks following the close of escrow: · Pat yourself on the back – you’ve just accomplished one of the biggest milestones in your life! Make sure to celebrate accordingly. · Get in touch with your homeowner’s insurance company and set up coverage for your new home. · Start thinking about any customizations or renovations you might want to make to your new place. A little bit of planning now will save you a lot of headaches down the road. · If you’re moving from out of state, start researching local schools and amenities so you can hit the ground running when you arrive. · Most importantly, take some time to relax and enjoy your new home. You’ve earned it. SUMMING IT UP So, there you have it! Your comprehensive homebuyers guide to the escrow process. Escrow may seem challenging at first glance, but with our helpful tips and a little preparation, you’ll be ready to take on this important step in the homebuying journey. Are you excited? We certainly are! If you have any questions about escrow or would like more information, don’t hesitate to reach out to us. We’re always happy to help. Until next time, happy house hunting! YOU CAN ALSO READ: HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES FOLLOW US: @MYSMARTCOUSIN
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
REFINANCING RENTAL PROPERTY IN 2022: A REAL ESTATE INVESTOR’S GUIDE
Have you been thinking about refinancing your rental property? If so, you’re not alone. Refinancing continues to remain popular with homeowners and real estate investors as a vehicle for locking in interest rates rather than chancing escalating rates under a variable mortgage, or unlocking the appreciated value of a property through a so-called cash re-fi structure. At MY SMART COUSIN, we help homeowners and investors, and especially Black and Brown folks and women, optimize their real estate investment, management, and ownership strategy. As your Real Estate Investment Coach, we’ll help you evaluate the residential property market in terms of the many opportunities that continue to be available, even in today’s high-priced market, and step you through our proven roadmap to buy a house for the price of a car! Whether you are a current or aspiring real estate investor, chances are high that one of the criteria you use to evaluate opportunities is ROI or return on investment. One way to increase the ROI of a real estate investment is to refinance the property at a lower interest rate, at a higher leverage rate, or both. This guide will get you thinking through the questions and answers needed to make the best decision for your portfolio. Let’s read on to learn more! WHAT DOES IT MEAN TO REFINANCE A RENTAL PROPERTY, AND WHY SHOULD YOU CONSIDER DOING IT NOW? Refinancing a rental property refers to taking out a new loan to replace an existing loan. There are many reasons why you might want to refinance your rental property, but some common reasons include: · To obtain a lower interest rate and thereby save money on your monthly mortgage payments. · To tap into the equity you’ve built up in the property by obtaining a mortgage that reflects the higher value of the property. · To switch from an adjustable-rate mortgage to a fixed-rate mortgage. · To shorten the loan term and build equity more quickly. In general, it’s a good idea to refinance if you can get a lower interest rate and/or reduce your monthly payments. Tapping into the equity value of the property through a cash re-fi can also be a great way to put the stored value of these funds to use. As for why you would specifically pursue refinancing in 2022, there are a few reasons: · Even with 30-year mortgage rates currently sitting at a relatively lofty 5.75% – 6% rate, a nearly three-point jump from July 2021’s rate of 2.8%, mortgage rates are forecasted to trend even higher in the next few years. As such, trading in a variable rate mortgage now for a fixed rate loan allows you to avoid the risk and cost of continued inflation and higher rates. · The housing market is expected to cool off in the next few years, so refinancing now could help you tap into equity while today’s housing prices, while they’re still high. · The government is expected to implement changes to the tax code that could make refinancing less beneficial. Refinancing before those changes go into effect may help you save money. Refinancing can be a complex process. When considering strategies that could impact your taxes, meet with your accountant first. Likewise, be sure to speak with your financial advisor to ensure that your specific financial position is considered in your strategy. THE BENEFITS OF REFINANCING A RENTAL PROPERTY There are several benefits to refinancing a rental property. · Perhaps the most obvious is that it can help to lower your mortgage payments. If you have been searching for ways to lower expenses, refinancing may give you the financial breathing room you need. · If a cash re-if is done, the funds obtained from the refinancing can be used to increase the value of your property. By taking out the proceeds from the loan and making improvements to your rental property, you can make the property more attractive to potential tenants, increasing retention and the rental amount. · Finally, refinancing can allow you to tap into the equity you’ve built up. This can be helpful in finding a growth strategy. In short, there are several advantages that accrue from refinancing a rental property. IMPORTANT CONSIDERATIONS TO BEAR IN MIND WHEN REFINANCING YOUR RENTAL PROPERTY Before taking the plunge into the refinancing market, there are a few things to keep in mind to get you started on your journey: · First, make sure you compare rates from multiple lenders to get the best deal. · Second, beware of prepayment penalties, which can cost you hundreds or even thousands of dollars if you try to refinance before your loan term is up. · Finally, remember that closing costs can add up, so be sure to factor them into your refinancing decision. If you keep these things in mind, refinancing your property can be a great way to save money and make improvements. THE PROCESS OF REFINANCING A RENTAL PROPERTY The refinancing process can be a bit complicated, but it essentially boils down to these steps: · Shop around for the best rates and terms. · Gather all the necessary documentation. · Apply for the new loan · Wait for approval and close on the loan. · Use the funds from the new loan to pay off the old one. HOW TO FIND THE BEST REFINANCING DEALS No one likes overpaying for anything, least of all when it comes to making expenditures on an investment that is meant to pay you money. If you’re looking to refinance your rental property, there are a few things you can do to make sure you get the best possible deal: · First, talk to multiple lenders and compare their offers. Pay attention to both the interest rate and any fees or points so that you can do an item-by-item comparison across lenders. · Second, don’t be afraid to negotiate. Let each lender
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,
WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES
It’s no secret that the housing market continues to be hot, even with high prices and higher mortgage rates in the mix. In May of this year, average home prices hit a record high of $400,000, and then some, despite surging inflation and the resulting downward pressure placed on sales. But even when prices are generally high across the board, there are always bargains to be had, if you know where to look. What if I told you that you can buy a house for the price of a car! At MY SMART COUSIN, we help you achieve your real estate investment goals, using tools and channels that are often overlooked by others. As your Real Estate Investment Coach, we have the skills and expertise to position almost everyone, with a particular focus on Black & Brown folks and women, for success in this competitive market. With planning, persistence, and guidance, you can buy a house for the price of a car and finally get your foot in the door of home ownership and property investment! If you’re in the market for a new home, you know there are a lot of things to consider. How big should it be? What’s the commute like? What’s the neighborhood like? It can be tough to figure out what’s important to you, and even tougher to find the right home that meets all your needs. But don’t worry – we’re here to help. In this blog post, we’ll take a look at the top features homebuyers are looking for in a new property. So whether you’re just starting your search or you’ve been looking for months and still haven’t found “the one,” read on for some valuable advice. WHAT ARE HOME BUYERS LOOKING FOR? Homebuyers are looking for features that will make their lives easier, as well as add value to the home. Popular features that continue to stand the test of time include energy-efficient treatments throughout the house (think insulation and solar panels as well as efficient appliances and windows), open floor plans, and smart technology. Homebuyers are also interested in outdoor living spaces, a flexible space that they can use as an office (given the COVID ripples felt in the work world), and everyone’s favorite— updated kitchens and bathrooms. Let’s dive into some of the most important attributes at the top of that homebuyers’ lists. · LOCATION, LOCATION, LOCATION The location of the house is one of the most important features that a homebuyer looks for, as centrality to required locations (school and work) and neighborhood favorites (shopping and restaurants) is key when choosing a home. The factors that you prioritize are ultimately a personal choice. For instance, most homeowners want to live near the city, but not smack-dab among the bright lights and car horns of downtown. Likewise, many homeowners rank peace and quiet high on their list, but not at the expense of living far from civilization (particularly if playmates for children are important). The perfect balance is a neighborhood that’s close enough to the city center for accessibility, but far enough away from noise and chaos. Also high on many people’s lists is an established area. An area that has plenty of amenities like schools, hospitals, parks, and shopping centers is far more attractive than the prospect of living in a construction zone. · UPDATED KITCHEN AND BATHROOM When it comes to buying a home, everyone has different tastes and styles. But some features endure no matter your preferences. A modernized kitchen and bathroom are two of the most important attributes that home buyers look for. A kitchen is the heart of the home, and a bathroom, particularly one that has a spa-like sense of tranquility, is a place to relax and rejuvenate. Neither of these rooms should feel dated or cramped. A well-designed kitchen should have plenty of storage space and counter space, while a bathroom should feel clean, uncluttered, and serene. · HARDWOOD FLOORS Flooring is one of the most important things that home buyers look for when they are purchasing a new home. Many people believe that hardwood floors are the best type of flooring to have in a home. Although hardwood floors are beautiful, they can also be very expensive. Great alternatives are vinyl plank flooring which comes with the added advantage of being waterproof, and laminate or tile. · ENERGY-EFFICIENT EQUIPMENT According to a recent study, the most important features that home buyers look for are energy-efficient equipment such as solar panels, draft-free windows and doors, high-efficiency furnaces, water heaters and appliances, and well-insulated and solid structures. While energy-efficient fittings can add to the purchase price of the home, the savings can last for many years. If the cost of adding solar or other equipment is beyond your budget, other options include adding energy-efficient lighting and thermostats, and low-flow shower heads and toilets. · A LONG-LASTING ROOF One of the most important features that home buyers look for is a roof that is built with quality materials and still has many years of life left in it. A tile roof can last for decades and comes in many attractive finishes. Asphalt shingles, which are the most common type of roofing materials, are durable, fire-resistant, and have a lifespan of approximately 20 years, depending on your climate. Metal roofs made out of steel are also becoming more popular because they are low-maintenance and energy-efficient, and can last as long as 50 years. · PATIO AND DECK ADDITIONS A slice of backyard greenery is popular across the board with most home buyers. Potential uses range from having a play space for kids to backyard barbecues and entertaining, to having an open area for pets to run around. Patios are natural additions for backyards as they extend your indoor living area, convert your lawn into usable space, and add significant value to your home. If you’re thinking about putting your house
HOW TO FIND SHORT-SALE HOMES IN 5 STEPS
Real Estate is a great way to build up your net worth, particularly if you buy a house for the price of a car. We at MY SMART COUSIN specialize in helping investors, particularly Black and Brown folks and women, with this process so that you can get started on your investing journey, experience homeownership, and begin building real wealth! If you’re looking to buy a house, one of the first channels you may want to consider is short-sale homes. Short sales, as well as foreclosures, can be a great way to get a good deal on properties that are usually below the radar of most buyers. But finding them can be tricky—especially if you’re not familiar with the process. That’s why we’ve put together this guide on how to find short-sale homes and foreclosures in 5 simple steps. So read on and start shopping! WHAT ARE SHORT-SALE HOMES AND HOW DOES THE PROCESS WORK? A short sale is when a homeowner sells their house for less than what is owed on the mortgage. These homes are sometimes referred to as underwater or upside down. The reason is that the value of the house has dropped to a level that is below the amount of the remaining mortgage amount, meaning you’re essentially paying more to the bank than the house is worth. To be approved to get out of your mortgage and sell your home through a short sale, the homeowner must prove that they are experiencing financial hardship and that selling the home is in the best interest of all parties involved. Once the homeowner is approved to sell the home through a short sale, they will work with a real estate agent to find a buyer for the property. The proceeds from the sale will go towards paying off the outstanding mortgage balance, and any remaining debt will be forgiven. While a short sale can be a stressful and time-consuming process for homeowners, it can be an excellent way for them to avoid the foreclosure process and get out from under an upside-down mortgage. THE BENEFITS OF BUYING A SHORT-SALE HOME A short sale is when a homeowner sells their home for less than the outstanding balance on their mortgage. While this may seem like a lose-lose situation for both the bank and the homeowner, there are a few benefits to buying a short-sale home from the point of view of a buyer. · One advantage is that you can often get a large discount on the purchase price. Both the homeowner and the bank holding the mortgage are anxious to get the house off their books. As such, the sales price is usually much lower than the price for comparable properties. · Second is that short sales have fewer interested buyers because the process can stretch out over months before a sale is approved. The pool of buyers who are able and willing to tie up their time and investment capital on a property that may or may not sell is usually quite small. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort · Finally, because the homeowner continues to live in the house until the short sale is finalized, you essentially have a live-in property manager who is providing some level of minor maintenance and upkeep on the property. So, if you’re looking for a deal on investment property, keep an eye out for short sales in your area. THE RISKS ASSOCIATED WITH BUYING A SHORT-SALE HOME In a short sale, the lender agrees to accept less than the full amount owed to avoid foreclosing on the property. While a short sale can be a great way to get a good deal on a home, there are also some risks to be aware of. · One risk is that the approval process for a short sale is entirely up to the lender. The seller may say that the sale is approved, only to have the lender later deny the request. This can lead to lengthy delays, and in some cases, the deal may fall through entirely. · Another risk is that repairs may not be covered by the seller. With a traditional sale, the seller is typically responsible for making any necessary repairs before closing. However, with a short sale, the repairs are often the responsibility of the buyer. This can add considerable costs to the purchase price of the home. As such, it is important to be aware of these risks before buying a short-sale property. HOW TO FIND SHORT-SALE HOMES IN YOUR AREA It’s no secret that the real estate market has been hot and a seller’s market in recent years. However, there are still plenty of great deals to be had if you know where to look. Here are a few tips on how to find short sale and foreclosure properties: · Look for a real estate agent who specializes in short sales. This person will have access to a list of properties that are currently in the process of being sold for less than what is owed to them. · Pay attention to off-book listings through Facebook groups. These are often used to advertise short-sale homes and foreclosures. You can also ask your real estate agent to keep you updated on any new listings that come onto the market. · Drive around neighborhoods that you’re interested in and look for homes that appear to be in disrepair. These may be short-sale or foreclosure properties. · Once you have found a few potential properties that you are interested in, it is important to do your research. This includes finding out as much as you can about the property itself, as well as the surrounding neighborhood. In addition, it is important to research the stage of the foreclosure or short sale process that each property is in. · Attend local foreclosure auctions. This
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,