HOW LONG IS AN APPRAISAL GOOD FOR? 5 FACTORS TO CONSIDER
If you’re in the market for a new home, you’ll likely encounter an appraisal. What would be more gracious than Buying a house for the price of a car? An appraisal is a process where a licensed appraiser assesses the worth of a property. Appraisals are used by buyers, sellers, and lenders to help determine a property’s value. At MY SMART COUSIN, we are here to provide our people with the best and most updated information on Real Estate Investment strategies. We help our Black & Brown folks (especially women) to Buy a house for the price of a car. As a Real Estate Investment Coach we encourage people about how they can be the owner of their own sweet home and can scale their finances. Have you ever wondered how long an appraisal is valid? If so, you’re not alone. While the answer may seem straightforward, there are a few factors to consider when it comes to home appraisals. In this blog post, we’ll take a closer look at five of the most important factors to keep in mind when it comes to appraisals. Read on for more information! WHAT IS AN APPRAISAL AND WHY DO YOU NEED ONE WHEN BUYING A HOME? The value of your home is determined by an appraiser, and if you want to get the most out of it financially then be sure that there will not only be one but several reports generated. A licensed third-party specialist in this field creates these invaluable documents which provide crucial information about what kind or condition property each instance might present as well as any notable features such—as visible defects/ damage on exterior surfaces among other things not visible from afar. If you want to get the best deal for your home, it’s important that an appraiser reviews and records all of the upgrades or improvements. The middleman will assess how well-maintained property is before lowering its price based on what buyers want; he also has experience in raising prices when sellers haven’t taken good care of their properties – giving them more incentive than ever! You might not think that an appraisal would be important while buying a house, but you’d likely regret it if the price set by your appraiser is too high. The cost of getting this done can make or break whether someone buys your home! So take advantage and get as much information out there about what’s going on with all aspects before meeting any deadlines–you’ll feel like a hero when they finally open escrow!! HOW LONG IS AN APPRAISAL GOOD FOR? Appraisals are a great way to get an idea of what your home is worth. The length depends on the factors such as loan type, market state, and location but six-month validity typically applies more often than not means you’ll need two-six months’ worth when going through this process with any one client! One thing that can affect, is how long they last though? Comps – these use prices from recently sold homes close in size/conditions so expect 90 days instead if outside those ranges since there isn’t always enough data available yet within each specific region or city block. FACTORS TO CONSIDER WHEN DETERMINING THE VALUE OF YOUR HOME 1. THE TYPE OF LOAN The type of loan the buyer is seeking may influence the length of time an appraisal is valid. · CONVENTIONAL LOAN – These loans are less restrictive and highly flexible in terms of appraisal. On existing homes, an appraisal is good for 120 days while on new construction, the appraisal will be good for an entire year. · USDA LOANS – These are government loans that are specially structured for people in rural areas. Appraisals for USDA loans are valid for 120 days in addition to a grace period of 30 days. · FHA LOANS -On an FHA loan, the appraisal will be valid for 120 days and if updated it will be valid for 120 days. If the case number assignment changes, you’ll have to order a re-appraisal. · VA LOANS– VA loan appraisals are valid for 6 months and after the expiry period a re-appraisal will be required. · FANNIE MAE LOANS – Fannie Mae (FNMA) loan appraisals are normally valid for a full year but require a second appraisal after 120 days. 2. THE CONDITION OF THE PROPERTY The state of the property affects its appraisal. If any major changes occur, like an improvement that would increase or decrease the value by 100 thousand dollars for example (even though it might only seem like a small change), then we will take those into account when determining how much your home is worth today versus if there was no such event occurred over time since this could have led to significant differences in net equity between you and preset grammar rules The damage can come from fire breakout accidents, natural disasters such as Floods earthquakes, etc 3. THE PRESENT SCENARIO OF THE MARKET The state of the market also affects how long an appraisal will be valid. If there’s slow change and stability, then it should only take six months for a new one to come out before you get your money back on previously paid-off homes; but when things are changing rapidly or becoming unstable – like during economic bubbles– appraisals can last 30/60 days instead because they’re more focused around specific dates rather than just general periods throughout time 4. UPDATE & EXTENSION OF APPRAISAL The lender might order an update or extension of approval if your appraisal expires. This is because they want to make sure the property’s value has not declined since it was last appraised, and also give them more time before paying out any mortgages on these properties with decreasing values at risk (as would happen over time). 5. RECERTIFICATION OF VALUE An appraiser might make a valuation that’s conditioned on the property meets certain conditions. In this case, they’re simply following up to see if those requirements have been met and will conduct certification of value when necessary. The original assessor valued your home at $500K
Legal assistance for the most vulnerable in eviction cases is essential
I’m a landlord who owns several properties in Delaware, and I see renters every day who desire a great home to raise their family, but also face the financial struggles of doing so. When a renter finds themselves in financial straits, I do my best to work with them, and we often find a way collectively to navigate those hurdles without ever resorting to court. But, when we do have to go to court, I know that implicitly I have the upper hand. On two levels really— in terms of my familiarity, though by no means expertise, with the eviction process, and in terms of a day off from work not resulting in an unpaid day, as is the case for many. I often represent myself — a choice that I make, because I know what to expect and the legal requirements. I am familiar with the eviction process, and I am well-prepared to make arguments on my own behalf. And in instances when I don’t feel equipped to represent myself and instead hire an attorney, I know that this cost, while painful, won’t break me. My renters on the other side of the courtroom rarely have that advantage. Paying for an attorney is usually well beyond the limits of their pocketbook (and let’s face it, all too often it is a pocketbook rather than billfold), and consequently, they show up unrepresented by default, not by choice. It seems only fair to me that just as we assist people financially to rent a home when their income doesn’t allow it, That we assist those most vulnerable with legal assistance. I understand the importance of having access to legal representation, and it is for this reason that I support providing a right to representation for renters who are facing eviction. In Delaware, 86% of landlords have representation in court eviction proceedings, but only 2% of renters have representation. Many landlords and real estate investors ask me why I support changing a status quo that favors me, and them, so heavily with 43 to 1 odds. For me, it’s a matter of basic fairness and housing justice — it’s not lost on me as a Black woman that women and people of color have a more tenuous hold on housing, particularly during COVID-19 than other populations. That imbalance has almost always resulted in the same conclusion: families displaced from their homes. The right to representation bill that’s up for consideration in the General Assembly, SS 1 for SB 101 (also referred to as just SB 101), just seems like common-sense legislation. For low-income renters, in particular, who can’t afford help, it would level the playing field between landlords and renters by providing representation in eviction proceedings. To my mind, SB 101 also will help landlords who are unaware of or are overwhelmed by rental assistance programs, to get connected with resources and open the spigots to back rent owed by renters who’ve fallen behind on their payments. In summary, while I understand the concerns raised by landlords regarding SB 101, I don’t think that renter representation in one of the direst circumstances imaginable to a family — an eviction proceeding — attacks my rights as a landlord; it’s about ensuring that the rights of my renters are protected, too. SB 101 is an opportunity to address housing insecurity at the root of the issue and ensure that the most disadvantaged renters have a fighting chance to remain in their homes when facing eviction. I hope the House will vote “yes” when this bill comes up for a floor vote. Pam Hill is the founder of My Smart Cousin. She is also a Delaware landlord. Read on Delaeare online:- https://www.delawareonline.com/story/opinion/2022/06/03/legal-assistance-most-vulnerable-eviction-cases-essential/7489042001/ RECOMMENDED READ: History of the Social Security Act FOLLOW:- @MYSMARTCOUSIN
REAL ESTATE PARTNERSHIP STRUCTURE 101: Do’s & Don’t’s
Partnerships can be a great way to pool resources and increase your chances of success in Real Estate Investing, but there are a few things you need to know before you get started. Almost every successful real estate investor has gotten where they are today by teaming up with other people to do bigger and better deals. As the African proverb goes, if you want to dash off and go fast, go alone, but if you want to truly go far, go together. The integral component of a successful real estate business lies in being aware of its incredible opportunities and utilizing them at the right time. You can easily Buy a house for the price of a car and be the owner of your own sweet home. At MY SMART COUSIN, we act as your most trustworthy Real Estate Investment coach who is determined to make you aware and teach you about real estate investment strategies. We help our Black & Brown folks mainly women to scale their finances and how they can Buy a house for the price of a car, not one but thousands. If you’re like most people, you probably think of real estate as a pretty safe investment. After all, everyone needs a place to live, and demand for housing always exceeds the supply, right? Well, it turns out that real estate can be a risky investment after all – especially if you don’t know what you’re doing. In this blog post, we’ll take a look at some of the do’s and dont’s of real estate partnerships. So whether you’re just starting in real estate or you’ve been investing for years, read on to learn more! WHAT IS A REAL ESTATE PARTNERSHIP STRUCTURE AND WHY WOULD YOU WANT ONE FOR YOUR BUSINESS? When two or more investors combine their capital and expertise to buy, develop, or lease property is known as a Real Estate partnership. Both the real estate entrepreneurs decide to work together in a professional environment and put their endless effort into accomplishing a single goal. For most real estate partnerships, the general partner takes on more responsibility and liability in exchange for a bigger share of profits. However, some only have passive investors or limited partners who don’t participate actively except when necessary One might wonder, why would he want a partnership in the real estate business? Well, there are many benefits. For starters, it’s easier than trying to do this on your own! You also get more exposure and an outside perspective which can help guide you in the right direction when making decisions about what kind of investments or properties will best suit both yourself as well as those who invest alongside them (i e.; partners). You’ve probably heard stories before where one investor seeks out another looking for financial backing but if that isn’t possible then maybe consider putting together some sort of group deal-like structure where everyone contributing something gets their desired outcome. THE 3 MOST COMMON ENTITY PARTNERSHIPS There are numerous ways through which Real Estate partnerships can be formed. Amongst them the most common types are – ° LLC or Limited Liability Company ° LLP or Limited Liability Partnership ° S-Corporation The benefits of owning a real estate partnership are twofold. First, the income or losses from your investment will be passed through to you on personal tax returns which eliminate any taxation at both corporate and private levels; second these partnerships offer extra-legal protection should there be claims against other assets not directly associated with this particular business venture–you’re protected by virtue being part. THE BENEFITS & DRAWBACKS OF REAL ESTATE PARTNERSHIP The one who lacks real estate knowledge or experience must go for the idea of a real estate partnership. If for nothing else, a truly great partnership can easily be the one thing new investors need to get started on the right foot. The best real estate partnerships act as a solid foundation for creating a great deal of balance between relationships, satisfaction, practicality, and essentials. Here are some of the biggest pros and cons of a partnering up to help ensure the one you create will be as powerful as possible: BENEFITS OF REAL ESTATE PARTNERSHIP ° A correct partner will always open the door for extra resources such as more capital, skills, network, and connections as well as professional expertise. ° The partnership provides a flexible distribution of profit & losses. ° For the one who wants to generate a passive source of income, a real estate partnership is beneficial for them. ° The personalities of each partner can combine to create a powerful presence in meetings with lenders or additional investors. ° When one partner is responsible for day-to-day responsibilities, they need help with longer-term strategies. The Real Estate Partners are essential in making sure that the project runs smoothly and equally share their workload so there can be no imbalance or sole focus on any single task at hand. DRAWBACKS OF REAL ESTATE PARTNERSHIP ° When two or more people invest in the same business, each person’s share is limited by how much they put into it. The benefits of investment – such as monthly income and profits from its sale – must be shared among all partners involved so that no one investor can reap too many rewards at once! ° An unclear partnership agreement may give rise to several disputes arising between partners in terms of delegating responsibilities and can turn your profitable investment into a loss. ° Different personalities of the partner give rise to versatile management& organization styles, which can be the cause of conflict between the partners. ° Sometimes capital differences also become one of the causes of disparity in the partners. ° Partnerships can get strained when one partner feels they are doing more than their fair share without getting an equal return. This could lead to tension between the two parties and even resentment toward each other, which may result in strain on relationships over time if not resolved professionally/amicably WHAT ARE THE THINGS TO CONSIDER WHEN SETTING UP A REAL ESTATE PARTNERSHIP STRUCTURE FOR YOUR
HOW TO BUY A MULTIFAMILY PROPERTY ON A BUDGET
Interested in investing your money in a multifamily property? You might be wondering, “Can I buy a two, three, or even four-family building with limited funds?” Fortunately, the answer is yes, though it will take some work on your part. But before we get to that, let’s first look into the multifamily model. Multifamily investments involve buying a duplex, triplex, fourplex, apartment building, or condo building and renting these multiple units, sometimes referred to as ‘doors’. Multifamily investing offers the possibility of generating a large burst of cash flow and net operating income from one building and roof. For this reason, multifamily property investment is often viewed as the first step of moving into larger, higher-yielding deals and thus, a popular investment channel for Real Estate investors. If you’re thinking about buying a multifamily property and prefer not to go it alone, you’re in good company as the services of an able coach can help increase your likelihood of success. At MY SMART COUSIN, we work hand-in-hand with clients to find and evaluate lucrative multifamily investment opportunities, with our specialty being finding houses that you can buy for the price of a car. As a seasoned Real Estate Investor and Investment Coach, we help Black and Brown folks and women create wealth and scale their businesses. In this blog post, we’ll discuss the benefits of a multifamily portfolio, and look at options you can use to buy multifamily when your funds are on a diet shall we say, and seed capital is limited. If this scenario sounds like you, read on to learn more! THE MANY BENEFITS OF MULTIFAMILY PROPERTIES A Quick Way to Scale Your Portfolio: One of the biggest benefits of buying multifamily properties is that it allows you to increase the number of units that you own quickly, and often, at a lower cost per unit than buying each unit as a single-family property. A larger number of units allows you to spread fixed costs such as bookkeeping, legal fees, and marketing over a much bigger base. Additionally, the amount of time required to grow a portfolio from one unit to ten units is significantly more when growing through only single families versus multifamilies. Diversification of Risk: Another benefit of multifamily properties is that they can lessen the cash flow risk of your portfolio. As an example, if you own and rent out a single-family home when the home is vacant, it is 100% vacant, unless you are renting out a room or other area of the house on a short-term basis. The all-or-nothing risk to cash flow that comes from single-family properties can cause owners to face financial hardships when their unit is vacant for an extended period. Multifamily properties, on the other hand, have multiple units, which decreases the risk that every unit will be vacant at the same time. As such, there’s a much higher possibility that there will be positive cash flow at some point of every month for multifamily, particularly if the multifamily has five or more units. This risk diversification can help in ensuring that the loan used to buy the property can be serviced without interruption Economies of Scale: In much the same way that buying groceries at a wholesale store can lower the per-unit cost of each item, likewise a large multifamily property can increase your buying power and lower the per-unit cost of management and maintenance items. Property managers, as an example, will be more likely to offer you a discount if they are managing 20 of your units, all under one roof, than 20 separate single-family homes. Twenty apartments in one building mean that a dedicated leasing agent and handyman can be tasked with working at one location rather than traveling among multiple properties and learning the peculiarities of each. Likewise, electricians, plumbers, and other contractors may offer more competitive pricing for the security of having one large apartment building account versus multiple small accounts. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort So now that we have a sense of some of the benefits that a multifamily property offers, let’s dive into exactly how we can go about buying one on limited funds · AN EQUITY SHARE INVESTOR: THE KEY TO SUCCESS An equity share investor is someone who takes an equity interest in your property in exchange for funding a percentage of the acquisition costs and major repairs. As an example, if you strike a deal with an equity share investor to invest 30% of the costs to buy a $200,000 triplex, or $60,000, then the equity investor would be entitled to 30% of the rent on the triplex. In this regard, shared equity arrangements are like partnerships. One difference, however, is that shared equity agreements often have a limited time period, for instance, five years, after which the equity share investor will look to have their percentage interest purchased by the owner, at the presumably higher market value of the property in year five. Because shared equity investors own a percentage of the equity in your property and are recorded as owners on the deed and in tax records, it will be critical to work with an experienced attorney to document this transaction properly. · GET A LOAN FROM A FAMILY MEMBER OR FRIEND – A PRIVATE MONEY LOAN Private money lenders are lenders who are private individuals. As such, a private money lender can include your family member or a friend. If you lack the funds for a multifamily property and share common business values with a friend or family member, then you may want to explore having them serve as an official lender for your project. A private money loan with a close family should be treated just as seriously as it would be with a third-party lender: credit checks should be performed, and loan documentation and a payment schedule should be developed. The benefit of working with a friend is having a built-in sounding board to discuss issues or opportunities. · CONSIDER BUYING
HELOC PROS AND CONS YOU NEED TO KNOW
The housing market is on an upswing with prices climbing higher, driven by the twin forces of inflation and demand. Which begs the question: can you still Buy a house for the price of a car? Absolutely! On any given day there are hundreds of single-family homes, and even some viable multifamilies, listed for $60,000, $50,000, and even $40,000. At MY SMART COUSIN, we teach clients, especially Black and Brown folks and women, exactly how to evaluate and buy these properties, as well as how to start or scale their business and build their finances. As a successful real estate investor and real estate investment coaches, we help clients make the right choice, based on their present circumstances and goals. THE VALUE OF A HELOC If you’re a homeowner, you know that having a home equity line of credit (HELOC) can come in handy. A HELOC is like a credit card connected to your home’s equity – it’s a great way to borrow money when you need it. But before you decide if a HELOC is right for you, be sure to weigh the pros and cons. Here are some things to keep in mind: WHAT IS HELOC AND HOW DOES IT WORK? HELOCs are a great way to get access to money without the hassle of applying for credit cards or other personal loans. You can use your home equity line for anything you want, but there will always be interest charged so it’s important not to use your HELOC like your own personal ATM! HELOCs work like credit cards. You can use your home equity line of credit for both home-related renovations and repairs and non-home-related items like paying off car notes, credit cards, or other expensive debt. Since HELOCs are attached to your home, the cash you drawdown is essentially a second mortgage. Meaning that once you draw on your line of credit, you have two mortgages outstanding on your property instead of just the one you started out with. This point is worth paying special attention to as your house itself is at risk if you default on your HELOC. For those who are considering a HELOC while heading towards or are already in retirement, an emergency fund might make sense to add an extra buffer of protection and ensure that you can repay your HELOC. THE PROS OF USING HELOC TO FUND HOME IMPROVEMENTS OR OTHER EXPENSES · LOWER INTEREST RATES HELOC interest rates are much lower than credit cards or personal loans. The reason is that while credit cards are unsecured, relying solely on your promise to repay, HELOCs are secured by your home. HELOC loans often also have an interest-only component to them, allowing you to pay just the interest for as long as ten years before having to repay the principal. The interest rate is variable rather than fixed, so drawing on your HELOC during high-interest, high-inflation periods is less optimal than under low-interest rate and inflation climates. But that said, under certain conditions the interest payments on a HELOC are tax-deductible, helping to lessen the sting of high rates. · FLEXIBLE AND ADAPATABLE The greatest advantage of HELOCs is that they are flexible and able to accommodate your needs. Unlike a loan, a line of credit, once approved, sits in standby mode, giving you the convenience of having it available without the obligation of having to use it. Since HELOCs are approved for a ten-year period, the line of credit serves as a guaranteed secondary source of funding for ten years, should you need it or choose to use it. · USE OF MONEY Ideal uses for a home equity line of credit are saving and investing money. On the savings front, you can use your HELOC to consolidate debt or pay off more expensive loans. On the investment front, a HELOC can serve as seed capital to start a new venture, buy stocks or other investments, or buy an investment house for the price of a car. You are also allowed certain tax benefits if you use a HELOC for home renovation. · THE APPROVAL TIME The approval time for a home equity line of credit is very short, on the order of a couple of weeks, which means that you can get your finances in order and launch your investment or debt repayment plan much faster than if you were to apply for a business loan or personal loan. · FEWER ADMINISTRATIVE COSTS The HELOC application process is much more affordable than other loan applications. There may be some additional charges which have to be paid, but these are minimal in comparison with traditional loans that require high processing fees. THE CONS OF USING A HELOC TO FUND HOME IMPROVEMENTS OR OTHER EXPENSES · FLUCTUATING INTEREST RATES One of the most important factors to consider when applying for a home equity line of credit is whether it has a variable interest rate. Most HELOCs have some type of variable-rate feature, which means that the interest rate could increase over time. · COLLATERAL A HELOC requires that you own your property. You do not need to own it outright, you may have a mortgage on it already, but you can’t obtain a HELOC if you rent the property, for instance. The reason is that the collateral for a HELOC is the property itself. The line of credit available for a HELOC is usually capped at 90% of the equity you have in the home. Using an example, if your home is worth $200,000 and you have a mortgage of $100,000 on it, then your equity in the home is $100,000. A 90% loan to value ratio means that your HELOC would be $90,000. · HIDDEN FEES AND CHARGES Your lender may charge hidden fees if you cancel or terminate your HELOC. In some cases, the bank will bill an amount even when there is no balance owed at all. As always, it pays to read the fine print before taking out any loan because it could cost more than expected in unexpected expenses. · THE TEMPTATION TO MAKE ONLY MINIMUM PAYMENTS When you take
HOW TO REHAB A REAL ESTATE PROPERTY: THE FIVE STEPS MOST INVESTORS MISS
The housing market continues at its five-alarm fire pace, offering both opportunities and risks to aspiring homeowners and investors. For those in the know on how to Buy a House for the Price of a Car, real estate can be a lucrative strategy indeed; but it doesn’t always come easy. If you’ve made the leap and purchased your first investment property, congratulations! After you’ve poured yourself a glass of bubbly, buckle up, because this is where the real work begins! As a seasoned Real Estate Investment Coach and Successful Investor, we at My Smart Cousin take seriously our responsibility to help our clients, particularly Black and Brown folks, increase their generational wealth and influence. Now more than ever, there is an opportunity to make money in the real estate game through rehabbing homes. Scoring a great deal on your investment property is an important first step, but it’s not the only one. Before you jump in head first, it’s important to understand the fundamentals of rehabbing, so that you can renovate your property quickly and cost-effectively and get it on the market. In this article, we’ll outline the five key elements to rehab a property like a pro. So, if you’re thinking about getting into the rehab business, read on for some helpful tips! WHAT EXACTLY IS A REHAB? Rehabs come in many flavors. Some properties require nothing more than a coat of paint, while others require a full-on makeover, from a new bathroom and kitchen to flooring, appliances, and fixtures. What distinguishes a rehab from a full gut job is that rehabs usually involve improvements to superficial items like drywall, tile, and carpets while gut jobs veer into the world of construction, requiring permits for electrical, plumbing, roofing, and HVAC work. In either case, whether you’re donning a hard hat or just a pair of overalls, rehabbing a property is rarely easy. A successful rehab requires patience, skill, and planning. Once armed with these resources, an investor can look to earn back not just their original investment, but also a return on their investment. YOUR REHAB ROADMAP 1. DETERMINE YOUR INVESTMENT HORIZON One of the first questions a successful rehabber must answer is, what is their investment horizon. That is, will the property in question be renovated and then rented or leased out— a buy and hold? Or is the goal to renovate and immediately list the property for sale— a so-called buy and flip? Your objective for the property as either a buy and hold or a buy and flip can affect how quickly the rehab needs to be finished, as well as at what cost. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort Assess the Real Estate Market Fundamentals In determining whether your rehab will lead to an immediate rental or sale, let the local real estate market and market fundamentals be your guide. If rental rates are on the rise and the neighborhood is chock-full of long-term and short-term rental properties, then a rehab-to-rent approach may be in the cards. On the other hand, if every second or third house is holding an open house, with houses snapped up after only days on the market, then a rehab-to-flip approach might make more sense. My Smart Cousin can help you do a market analysis to determine whether a rental or flip makes more sense as well as what the potential costs and returns of each path look like. 2. ASSESS THE CONDITION OF YOUR PROPERTY AND MAKE A PLANBefore purchasing your property, it’s important to assess the home closely and determine whether there are any major issues requiring repairs or outright replacement of totems such as the wiring, HVAC (heating, ventilation, and air condition), or sewage systems, as these can be expensive and time-consuming to remedy. When doing your walkthrough with your handyman or contractor, bring a camera or use your cell phone and take both pictures and video. When taking video, narrate as you go with comments on what room you’re in (for instance, ‘bedroom next to the bathroom’), the issue you see (for instance, ‘evidence of water leak in master bedroom ceiling’), and the steps to take (for instance, ‘have handyman or roofer take pictures of the roof to determine its age and condition). 3. FLESH OUT YOUR REHAB BUDGET AND WHAT YOU HOPE TO ACHIEVE WITH THE PROPERTY An important part of renovating your home is knowing what needs to be done. This will help you stay within budget and avoid expenses that don’t deliver a return on your investment. You can assess whether a particular expense will yield a return by calculating the after-repair value (ARV) of your property. The ARV value is the new and improved value of your property after taking into account the cost of the work you’ve done as compared to the market price for similar homes. As an example, if you purchase a house for the Price of a car, let’s say at $40,000, and renovate it for $30,000, with the high-ticket items being new appliances, kitchen cabinets, and upgraded fixtures and lighting throughout the home, then your effective property cost is $70,000. But $70,000 isn’t the ARV value; the ARV value is the market value of houses that are in the same condition as your newly-renovated property. If average properties in the neighborhood are selling for $100,000 but come with upgraded appliances and fixtures that are move-in ready (like your home) are selling for $115,000, then the ARV of your home is $115,000. Knowing the determinants of market value and the price of these homes is key to determining a renovation budget, both in terms of how large it should be and what gets you the best bang for your dollar 4. CREATE A WORK PLAN FOR THE PERSON WHO WILL BE DOING THE WORK, WHETHER THAT PERSON IS YOU OR A CONTRACTOR CREW Hiring a contractor is often the most daunting part of any home renovation. But doing the work yourself is also no walk in the park. To reduce both the headache and cost of
WHAT IS A TAX LIEN: DEFINITION AND FAQS
Investors are always on the lookout for new opportunities. Whether it’s about buying a house for the price of a car, investing in foreclosures, or purchasing property in tax lien auctions, there are strategies and on-ramps for virtually every investor. Paying property taxes, often assessed at the city and/or county level is one of the most important responsibilities of a property owner. Failure to pay can lead tax authorities to place a lien on the property, seize it and auction it if not paid in full. And if your investment property pays for city-owned and operated utilities such as drinking water, stormwater, or sewer services, those entities have the same attention-getting right! So let’s dive into what exactly is a ‘Tax Lien’ so that you can avoid it when it comes to your property and consider it as an avenue for investment properties. WHAT IS A TAX LIEN? A tax lien is a legal claim, usually filed by a federal government agency such as the Internal Revenue Service (IRS), or a county or municipal agency such as a local taxing authority, against the property of a delinquent taxpayer. While on the face of it, it may seem like the purpose of the lien is to take your home sweet home, its actual purpose is to obtain payment of the taxes owed, in much the same way that a mortgage lender will exercise their lien against a property if mortgage payments aren’t made. If you have a tax lien against your property, it’s important to take action to clear it up as soon as possible. Ignoring the problem will only make things worse. Here’s what you need to know about tax liens and how to deal with them. WHAT DOES A TAX LIEN MEAN FOR YOU AS A TAXPAYER OR INVESTOR? If there is an outstanding debt such as property taxes or utility payments owed to a government entity, the entity has the right to place a lien against the property to satisfy the debt. However, just as mortgage lenders are not able to immediately sell a property upon the first missed statement, likewise government entities must see several missed payments, typically three years in the case of residential properties and five years in the case of commercial properties, before filing a security interest against the property. HOW DO YOU GO ABOUT FINDING OUT IF THERE IS A TAX LIEN FILED AGAINST A PROPERTY? To find out if there is a tax lien filed against a property, perhaps one that you are interested in as an investment, or your own property that you are concerned about, you can call or visit the County Clerk’s office and check the tax records. Online images of these documents are also available as well as printed copies at the Clerk’s office, for a fee. In the case of a federal tax lien, you can contact the IRS’s Centralized Lien Unit or visit their website for information. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort WHAT ARE THE CONSEQUENCES OF HAVING A TAX LIEN FILED AGAINST YOU? If a tax lien is filed against your property, one of the biggest impacts will be on your ability to sell or refinance the property. As another entity essentially has a stake in the property, you are unable to sell it, obtain additional lines of credit against it or change the current financing terms on the property without the approval of the lien holder. HOW DO YOU GO ABOUT REMOVING OR DISPUTING A FILED TAX LIEN? One of your first steps if you find yourself with a lien placed against your property is to contact an attorney specializing in tax liens. The IRS or other government entity that has issued the lien will send you a notice of the amount you owe and make a demand for payment; the role of the tax attorney will be to evaluate your records with you to determine if there are any errors in the amount or in the process that was followed by the government authority, and dispute the demand if so. And should the amount and demand request be accurate, the attorney can help you negotiate a settlement, which could include payment of a much lower amount through the waiver or reduction of penalties, interest, and back taxes. FAQs ON TAX LIEN – READER’S MOST COMMONLY ASKED QUESTIONS ANSWERED WHAT ARE TAX LIEN CERTIFICATES? Municipal governments often prefer not to take on the role of selling properties that are behind on their taxes. To avoid being the seller while still obtaining payment on the amount, the municipality will create a tax lien certificate equal to the amount that is owed. The tax lien certificate will serve as a tool or instrument offered for sale, via an auction, by the local municipal government, to collect payment. Proceeds from the auction enable the municipality to recover unpaid property taxes, in this case, not from the owner, but from the auction participants. The winning auction bidders then become the owners of the security interest in the properties, and with it, take on the responsibility and the cost of foreclosing on the property after three or more years of unpaid taxes or utility bills by the property owner. Tax lien certificates also entitle the certificate owner to the interest payments on the unpaid debt, thus functioning in much the same way as a bond. WHAT IS THE DURATION OF A TAX LIEN? Ten years is the basic limitation set by the IRS. If the defaulter pays the lien in full or as stated in a negotiated settlement agreement, then the IRS will remove the lien and its right to seize the property. The IRS is required to remove the lien within thirty days of the taxes in question being paid. WHAT IS A TAX SALE? The sale of property that has unpaid taxes on it will often occur through a tax lien auction, where the
Secured vs. Unsecured Credit Card
Key Takeaways A secured credit card requires the cardholder to make a security deposit, whereas an unsecured credit card doesn’t require a deposit. A good credit score is not required to be approved for a secured card, but a good credit score will determine your interest rate and other factors for a secured credit card. Both credit cards can be a great tool for building a positive credit history and improving your credit score; each has its advantages and disadvantages. According to the Consumer Financial Protection Bureau, the government agency responsible for protecting consumers’ financial credit interests, more than 175 million Americans have a credit card. Although there is a common basis of what a credit card is, there are as many flavors of credit cards as there are credit cardholders. For example, some cards give points toward hotel stays or airline miles with every purchase. Other cards reward spending with cryptocurrency or contributions to a stock market account. However, one of the biggest differences between credit cards is whether the card is secured or unsecured. What is a Secured Credit Card Secured credit cards were created to enable those with less-than-stellar, limited, or no credit history to obtain a credit card. Although secured cards account for less than one percent of the credit card market, they play a vital role in helping build a positive credit repayment record. Therefore, they serve as an onramp to obtaining an unsecured card. Recommended Read: How Secured Loans Work The security behind a secured card is cold, hard cash. Your cash, that is. A secured card requires a security deposit, typically in the minimum amount of $200, to the bank that issues you the credit card. The cash deposit will then set the lower bounds of your credit limit. So how does it work? First, you must apply and be approved by a credit card issuer. Then, after approval, you deposit a set amount of money for the security deposit to back up the card. So, if your deposit was $200, the issuer will provide you with a credit limit of at least $200. Depending on your credit score and history, the limit could possibly be higher. Benefits of a Secured Credit Card In addition to a secured card giving you access to the flexibility of plastic in an ever-growing cashless economy, it provides these two other important benefits: a lower cost of credit and an easier approval process.Lower Fees Credit rating agencies classify FICO scores of 580 to 669 as ‘fair’ or ‘average.’ Approximately one-third of all Americans have FICO scores that fall within that range. Recommended Read: Tips on How To Improve Your Credit Score At the ‘average’ score level, unsecured credit cards can come with numerous fees, including a one-time fee to open the account, an annual fee for the open account, and a monthly fee to service the account. These fees can leave you paying $150 or more to open the account in year one and an ongoing $100 or more in years two and beyond to continue the account. And, of course, these costs are before you consider any late payment fees, which also tend to be higher. Secured cards, however, typically have no annual fee, or a relatively low one ($35-$50), and no or a minimal monthly maintenance fee. Doesn’t Require a Good Credit Score One of the top advantages of a secured credit card is that your FICO score tends not to significantly influence the credit decision. Why? If you miss a monthly payment towards your balance, the card issuer will apply a portion of your security deposit to cover the payment amount due. While it is possible to obtain an unsecured card with less than perfect credit, fewer options exist for those with FICO scores of less than 580. A must if you have a secured credit card is to make sure you never miss a monthly payment. Therefore, once you have built a record of consistently paying your credit card bill on time, you can ask your card issuer if they offer the opportunity for you to “graduate” with an unsecured card. If you are able to “graduate,” a typical benefit is refunding your deposit and increasing your credit limit. Cons of a Secured Credit Card A secured credit card may be a good option for someone with no or poor credit history. Since your credit score is not a dominant deciding factor for approval of a secured card, a security deposit is required. However, the security deposit can pose a challenge for some who are already struggling to save funds. Additionally, if you default on your credit card, the credit card issuer can take the security deposit that you’ve posted against the card. What is an Unsecured Credit Card Unsecured credit cards are held by 99% of all credit card holders and are generally referred to simply as “credit cards.” Unlike secured cards, an unsecured card does not require a security deposit to back it up. Therefore, the credit card issuer looks closely at your FICO score and other credit history indicators, and repayment ability when deciding on approval or denial of your credit card application. Pros of an Unsecured Credit Card The most significant benefit of an unsecured credit card is access to a 30-day revolving line of credit with no collateral requirements. The line of credit can be valuable for many reasons, such as quickly paying in the case of an emergency or unexpected expense arises. Additionally, unsecured credit cards offer numerous incentives and rewards, such as: sign-up bonuses travel points spending discounts cashback on your card; sometimes as much as five percent 0% percent interest rates during an introductory period; different cards have different time periods, but the introductory period is usually 15 or 18 months 0% percent interest rates offered on balance transfers the ability to borrow cash from the credit card in the form of a cash withdrawal Cons of an Unsecured Credit Card Although there are many benefits, there
Four Ways to Invest in Real Estate for Under $1,000
If you’re looking for a way to invest in real estate but don’t have much money to get started, don’t despair! With a little ingenuity and some careful planning, there are many strategies you can use to launch a profitable portfolio, even on a tight budget. We’ll explore four paths to making smart real estate investments with limited start-up capital. And, by building up your portfolio over time, you’ll be able to gain valuable experience as well as the cash flow needed to realize greater returns down the road. Let’s get started. Short term Rentals Perhaps the easiest way to get started with real estate investment is by becoming a host in your own home and renting out a portion of it, for instance, a spare room or couch. The three biggest benefits of renting out a portion of the roof over your head are: It’s a lot easier than having a full-time roommate, as you control how long someone stays and do not have to worry about rental agreements and eviction procedures You’ll earn more money from a short-term rental than you will from a full-time roommate. As an example, if your rent or mortgage is $1,200 a month for a two-bedroom home, that means that a roommate would pay $600 a month, assuming a 50/50 split. Six hundred dollars a month works out to $20 a day. As there are very few markets indeed where a one-bedroom room can be rented for $20 a day, you will surely earn more renting it out through a temporary stay site, particularly during high-season spikes such as conventions or concerts in your area. You’ll have a lot less wear and tear on your home, as someone staying for a short time— a couple of days or even a couple of weeks— will only have suitcases versus furniture and other trappings of a permanent resident. But that said, there are also trade-offs of getting in the hosting game. Chief among them is that a stranger is living with you, in your own house. Using your bathroom. Lounging on your couch. If visions of this make your heart race or blood pressure rise, then hosting with this level of intimacy might not be for you. A less intrusive form of hosting might be renting out your home when you’re not there. For instance, if you have to be out of town for work, or will be away at a family gathering, that can be a great time to allow someone else to pay a portion of your rent and mortgage. Done right, hosting can be a great method to begin getting hands-on experience as a landlord as well as learn about the real estate markets located elsewhere from your visiting guests. Real Estate Investment Trusts (REITs) A real estate investment trust is similar to a mutual fund. Mutual funds usually invest in just one type of asset— for instance, stocks, bonds, commodities, etc. REITs also invest in one type of asset, in this case, real estate. REITs can be a relatively low-risk vehicle to gain experience with real estate projects because the REIT portfolios themselves are usually diversified— made up of a large volume of properties, across property types (residential, commercial, mixed-use) and geographies. Two big advantages of REITs are returns and liquidity. Returns REITs offer the potential for good returns, in part, because one of the regulatory requirements of a REIT is to pay out 90% or more of its taxable income to shareholders. Liquidity REITs also offer good liquidity because, unlike owning a property, where it could take months to find a buyer and close on the sale, REITs that have a large market of buyers and sellers offer the ability to quickly increase or sell down your investment. As far as disadvantages, the largest one is market risk. Because REITs are investments in the real estate market itself, if real estate prices or rents experience a downturn, the portfolio of the REIT can be likewise affected and see a decrease in returns. Real Estate Crowdfunding Another onramp for accessing real estate investments, particularly very large deals such as the development of a large apartment building or commercial complex, is through real estate crowdfunding. Crowdfunding is a pooled source of money in which multiple individual investors (hundreds or even thousands) buy equity in a commercial real estate project or provide the project with a loan (debt capital in the form of a short-term construction bond, for instance). Opening an account with a real estate crowdfunding platform can be done with as little as ten dollars. Crowdfunding can also give you a peek behind the curtain of commercial real estate development, as a micro hard money lender— something that’s often difficult to see up close without donning a hard hat as a general contractor or developer. Perhaps one of the biggest advantages of participating in crowdfunding is that you can pick and choose the types of projects you invest in. Say for instance, that you’re interested in building up your knowledge about hotel development as you’d like to grow from small Airbnb operator to hotel owner and operator someday. Crowdfunding allows you to pick which investments suit your fancy, rather than requiring that you invest in whatever it is that the portfolio manager selects (the way real estate investment trusts and mutual funds work). For every cup half-full, however, there is always a cup half empty. A disadvantage of real estate crowdfunding is that you are investing in the development of the project from the ground up. If there are construction delays, increased costs or the project is never completed at all, those become your risks to bear, and with it, the potentially adverse impact on your returns. A second disadvantage is that the fees on crowdfunding platforms can be hefty, so research is a must before jumping in with both feet. Vacant Lots and Land Offer Opportunity: Vacant lots and land are often viewed as investments of last resort by
A DUE DILIGENCE GUIDE FOR REAL ESTATE INVESTORS
As with most businesses, starting your real estate investment empire begins with developing a strategy and researching those investments that most closely align. While you might end up finding the deal first and basing your strategy around that transaction’s success (for instance, purchasing buy-and-hold rental properties in high rental demand markets that can be bought for the price of a car), in the best-case scenario, you’ll want to outline your strategy first, and then select properties based on that strategy (with refinements along the way, of course). The research that you conduct, both on the strategy and property ends, is known as due diligence. Due diligence is the process of performing a systematic and detailed analysis of a given opportunity. Due diligence is particularly important when you’re buying a house for the price of a car, as the return on the investment during the early years rests entirely on your ability to renovate the house quickly and efficiently and make it move-in-ready. In addition to due diligence being an activity— that is, the process of analyzing, digging in, and discovering the pros and cons of a property— it is a period of time. The time is not absolute, it is subjective and defined by the investor and seller. For instance, the investor and seller may determine that the seller can take up to two weeks to complete a property inspection and submit a firm offer. That two-week period is called the due diligence period. During this time, the investor will also request all disclosures on the property. If the investor finds any issues with the house, either because it turned up in the property inspection or it was revealed in the disclosures, the investor can back out of the deal and be refunded their earnest money, with no further obligation. THE PROCESS OF DUE DILIGENCE Due diligence is beneficial for you as the buyer in minimizing the role of emotion in your decisions and reducing decisions down to numbers and facts. But should you find yourself as the seller, for instance, of a property that you are flipping, you will want to undertake these same steps in determining a sales price? The due diligence checklist comprises the following components: Evaluate the neighborhood Assess the physical condition of the property Estimate the renovation costs Determine your potential returns on the investment Review the contract The Neighborhood Location, location, location is the guiding star for real estate agents, as they know the true value of a home lies in its neighborhood. All things being equal, real estate agents will tell you that you’ll get more bang for your buck buying the worst house on the best block than you will buying the best house on the worst block. This holds true with real estate investments as well, though with a bit more gray. In the case of a buy and hold, value accrues both from the appreciation of the property, usually realized over the long-term, and the rent from the property, realized as soon as the home is renovated and occupied. While there will be some indications of whether a neighborhood’s fortunes are on the way up (check the minutes of Planning Board meetings and the master plan for your city or town of interest), the steady-eddy indicators will be crime rates, school performance and employment opportunities. The Physical Condition of the Property Conducting due diligence on the physical condition of the property is best-accomplished through a property inspection. The purpose of a property inspection is to highlight the good, the bad and the ugly of a house. The Smart Cousin Definitive Checklist on Property Inspection offers a checklist of items specific to real estate investment properties. Key areas to evaluate include: House infrastructure: the foundation, roof and basement Major systems: HVAC, plumbing, well, septic and electrical system Exterior areas: drainage system, driveway, and sidewalk. Renovation Expenses One of the largest maintenance expenses that should be considered when evaluating a property investment is the cost of materials. Materials include everything from lumber and drywall to paint and flooring. Another significant expense is the cost of labor. This can include both skilled and unskilled labor, such as electricians, plumbers, carpenters, and painters. Depending on the work that the electrician, plumber and/or HVAC technician will have to do, permits will need to be pulled, so factor permit costs into your renovation estimate as well. The Financials Once you have your arms around whether the location of the property can attract buyers (for the buy and flip crowd) or renters (buy and hold investors), and can be renovated quickly (aim for no more than two months) and cost-effectively, next it’s time to get out your calculator to begin determining what your return is on the property. Your return means how much money you earn on your investment. Returns are usually framed as percentages. Thus, if you purchased an investment property and collect $10,000 a year in rental income, then your return is $10,000 / $100,000, or 10%. The saying, ‘it’s not what you earn, but what you keep’, holds doubly so when considering your return on real estate investments. So when calculating your return, base it on your net rental income, meaning the rental income that’s left over after financing expenses, property taxes, property insurance, property management expenses and property maintenance expenses are backed out. While there are additional expenses that your accountant or tax preparer will take into consideration (for instance, amortization and depreciation), the above expenses capture those items that stand between what you start with and what you finish with each month. LEGAL DOCUMENTS If you hire an attorney to draft or review documents related to the purchase or sale of an investment property, you may well feel that you don’t need to read these documents as this is what you pay your lawyer for. Nothing could be further from the truth. Yes, your lawyer is paid to make sure that the agreement is legally enforceable and won’t be thrown