THE BEST SHORT-TERM INVESTMENTS AND STRATEGIES
Making investments can be a great way to supplement your income and grow your wealth. But what are the best strategies for earning a good return on your money if you’re targeting a relatively short period of time? Applying the right strategy at the right time always creates a win-win situation for you. At MY SMART COUSIN, we’re here to help you get into the property ownership game and do what few others do— buy a house for the price of a car. Whether you are limited by lack of funds for a down payment, high housing prices, or lack of real estate opportunities in your area, don’t let that stand in your way, come talk with us. As Real Estate Investment coaches we specialize in working with aspiring investors and homeowners, especially Black and Brown folks and women. Our objective is to help you reach your home or property ownership goals quickly, effectively, and at a low cost, by teaching you everything you need to know before purchasing a property, from evaluating the dwelling condition to structuring the deal, to shaking loose free and low-cost financing. If your focus is directed at the here-and-now horizon and how to find investment opportunities that can be executed quickly and yield cash flow for immediate goals, we’ve got you covered on that front too. This blog post will dig into a few short-term investment and strategy ideas for anyone seeking to generate returns in a short time period, specifically: · High-yield accounts and certificates of deposit. · Dividend-bearing assets such as REITs, or real estate investment trusts · Inflation-indexed bonds, also called I-bonds. · Gold, silver, and other commodities, as a hedge against inflation · Peer-to-peer lending opportunities HIGH-YIELD SAVINGS ACCOUNTS AND CERTIFICATES OF DEPOSIT When it comes to short-term investments, one tried-and-true vehicle is high-yield savings accounts. These accounts typically offer higher interest rates than traditional savings accounts, meaning your money can grow faster. Average high yield rates for the month of July 2022 range from 1.2% to 1.9%. Since these funds are FDIC-insured, you don’t have to worry about losing your hard-earned principal and interest. Another option is a certificate of deposit or CD. These are typically offered by banks and credit unions, and also offer higher interest rates versus standard savings accounts. One downside of CDs is that you typically have to keep your money in the account for a set period of time or you’ll be charged a penalty. However, if you’re looking for a safe place to park your cash, a CD can be a good option. CD rates have climbed out of the decimal-dust territory, as inflation and interest rates have risen. July 2022 rates for deposit terms ranging from one year to five years are in the low to mid two percent neighborhood, at 2.3% to 2.9%. If you currently have a certificate of deposit that will mature soon and you are interested in rolling it over, check with your bank first to ensure that it will renew at today’s higher rate. Likewise, discuss with your bank if you would like a CD that is the same duration as your current CD (as, for instance, five years), or if you would like to change the duration to something longer or shorter (generally, the longer the term, the higher the interest rate). REIT INVESTMENTS REITs, or real estate investment trusts, are mutual funds of sorts that invest in a collection of real estate assets. The assets can be grouped by property specialties, such as hotels and lodges, or grouped more broadly by type, such as residential properties. REITs are required by the Securities and Exchange Commission (SEC) to dividend at least 90% of their earnings to the REIT shareholders. As a consequence, the dividend payout levels for REITs can be hefty relative to other mutual fund baskets. REITs, like stock investments, can be risky, so do your homework and research the property class and asset management team before investing. INFLATION BONDS Bonds are another option and work particularly well for investors who prize stability and low risk over returns. When you invest in bonds, you’re essentially lending money to a government or corporation. In exchange for your loan, the entity that issues the bond agrees to pay you interest payments at regular intervals and return your principal investment when the bond matures. The downside of bonds is that they typically don’t offer as much upside potential as other investments. A particular bond type that is gaining new fans in today’s inflationary market is inflation-indexed bonds, also referred to as I-Bonds. I-bonds are issued by the U.S. Treasury and sold through their website, TreasuryDirect.gov. The interest rate on I-Bonds being offered through October 2022 is 9.62%. The bond has a 30-year maturity term although you may cash it before then. GOLD OR SILVER AS A HEDGE AGAINST INFLATION When it comes to protecting your finances against inflation, gold and silver have long been considered the go-to options. And for good reason: both precious metals have a long history of maintaining their purchasing power, even in periods of high inflation. Gold and silver can also be easily bought and sold, making them ideal for short-term investors. Other inflation-resilient commodities include oil, lumber, and agriculture. These commodities tend to pass on higher prices— witness the higher prices at the gas pump— when inflation rises. Opportunities for investing in these commodities include index funds and mutual funds PEER-TO-PEER LENDING Peer-to-peer lending is a great way to earn some extra income without having to put up a lot of money upfront. And with the advent of peer-to-peer lending platforms, your potential lending circle as a short-term investor is greatly expanded. Peer-to-peer lending sites post potential lending opportunities and act as middlemen handling payments and associated paperwork. FINAL THOUGHTS So there you have it, a few short-term asset, bond, and savings fund-based investment options to consider for generating cash flow. If you want to make your
A GUIDE TO REAL ESTATE ASSET MANAGEMENT
When you’re buying a property, it’s important to think beyond the short-term horizon. You also need to consider what your long-term objectives are for the property, and how everything, from property management to tax planning to the eventual sale of the property, will be evaluated holistically to optimize the value of your asset. That’s where real estate asset management comes in. By using a professional asset manager, you can rest assured that a cohesive economic, operational, and financing strategy will be developed and implemented. When you’re looking to buy a house and structure a real estate asset plan that will grow with you over time, it can be hard to find the right Real Estate Investment Coach. At MY SMART COUSIN, we work with you to understand your resources and strategy inside and out so that we can position aspiring investors and homeowners, with a particular focus on Black and Brown folks and women, to buy a house for the price of a car and scale their finances. In this blog post, we’ll discuss the benefits of real estate asset management, and why it’s such an important part of owning property. Stay tuned! WHAT IS REAL ESTATE ASSET MANAGEMENT AND WHY DO YOU NEED IT? Real estate asset management is the process of analyzing the real estate market for opportunities, and capitalizing on these opportunities with an acquisition, financing, and operating plan. Real estate asset managers ensure that a property generates consistent revenues and cash flow, minimize operating expenses and risks, and leverage financing, tax benefits, and economic incentives to increase the property’s value. The terms ‘property management and ‘asset management’ are sometimes used interchangeably. However, property management, which focuses on property operations— think screening tenants, making repairs, and collecting rent— is a subsection of asset management and only one of several elements required to increase value. THE BENEFITS OF REAL ESTATE ASSET MANAGEMENT Fundamentally, the goal of asset management is to ramp up returns by taking a holistic view of the drivers behind property values and using those insights to make cross-cutting decisions. Chief among the benefits include: – Increased Profits: by carefully tracking income and expenses, analyzing market trends, and executing sound business strategies, asset managers can help to increase profitability and protect against financial risk. Lower Risk: because asset managers analyze all of the information regarding a property, from factors driving the local housing market such as housing prices and jobs to property specifics such as bookkeeper and property management reports, the asset manager serves as the effective chief executive officer of the property. This CEO role helps minimize the risk that critical information or opportunities will be overlooked. HOW TO FIND A GOOD REAL ESTATE ASSET MANAGEMENT COMPANY While there are many reputable and qualified firms to choose from, finding the right one for your needs can be a challenge. Here are a few tips to help you find a good real estate asset management company: – First, consider your specific needs. What type of property do you need to be managed? Are you looking for a firm that specializes in commercial or residential properties? Knowing your specific needs will help you narrow down your search. – Second, ask for recommendations. Talk to colleagues, real estate professionals, and trade associations for referrals and suggestions on asset management companies. – Third, check online reviews. Search for real estate asset management companies in your area. Read reviews to get a sense of what others have experienced. – Finally, schedule consultations. Once you’ve compiled a list of potential firms, reach out and set up meetings with each one. This will allow you to learn more about their services and decide if they’re the right fit for you. THE DUTY OF A REAL ESTATE ASSET MANAGER – A real estate asset manager’s job is to increase the value of a property and improve its cash flow. They do this through tasks including developing an investment strategy, finding lenders, helping you structure and negotiate to finance, and evaluating property insurance options and terms. – Cash flow management is a critical part of a real estate asset manager’s job. They must ensure that the property generates enough income to cover all expenses, including mortgage payments, taxes, and repairs and maintenance. – In addition, they must also find ways to increase the income from the property, such as by taking a close look at how property management is being handled and diving into the detail behind revenues and expenses. – By increasing the value of the property, a real estate asset manager can help to generate more income for the owner and improve the overall ROI of the investment. SUMMARY So, what is real estate asset management? In a nutshell, it’s the process of managing the risks and opportunities of a property on behalf of an owner. This could be anything from an office building to a portfolio of single-family homes. Are you considering using a real estate asset manager? If so, share your questions! YOU CAN ALSO READ: A HOW-TO-GUIDE: RENT-TO-OWN A HOUSE FOLLOW US: @MYSMARTCOUSIN
A HOW-TO-GUIDE: RENT-TO-OWN A HOUSE
Are you a renter who’s tired of never quite feeling like you own your place? Or maybe you’re a homeowner who’s been through one too many costly repairs and is looking for a more affordable option? Owning and renting are the two most common options that people think of in real estate. Despite the hot real estate market, or perhaps one reflection of it, owning an affordable home has become the preferred strategy for participating in real estate, particularly if you do so by Buying a house for the price of a car. With MY SMART COUSIN we help familiarize prospective investors and homebuyers with the benefits of investing in properties, and more importantly, walk with them, step-by-step, through a customized roadmap to buying their house for the price of a car. If moving from planning to action sounds like just the medicine you need, we’re here to help you take your finances and investments in a new direction. We specialize in helping Black and Brown folks and women understand the benefits and mitigate the risks of investing through real estate purchases, and building a portfolio of monthly income. If feeling like you’re a perpetual renter with no clear path on how to step into home ownership sounds like you, then examine your current digs and ask, is it exactly the kind of nest that you’d like to own someday rather than continue renting. If the answer is yes, then rent-to-own might be a great vehicle to acquire a house. Rent-to-own, while open to everyone, is well-suited for those who need a little more time to line up a down payment, or to raise their credit score to qualify for a mortgage. In this article, we will outline everything you need to know about rent-to-own agreements and how they work. Keep reading to learn more! WHAT IS RENT-TO-OWN AND HOW DOES IT WORK? Rent-to-own agreements are contracts between a tenant and a landlord that give the renter the option to purchase the property they are renting at a later date. These agreements are typically used when the renter does not have the necessary down payment for a mortgage or is not able to qualify for one. Under a rent-to-own agreement, the landlord agrees to hold onto the property for an agreed-upon length of time, usually one to three years. During that time, the renter pays an amount above the normal rental price, which goes towards the eventual down payment required to purchase the property. At the end of the rental lease, the renter has the option to purchase the property, typically at a price agreed upon in advance. If the renter chooses not to purchase, they simply vacate the property, just as they would if they moved from a typical rental home, with no further obligation to the landlord. THE BENEFITS OF RENT-TO-OWN Many people dream of owning their own home, but the upfront cost can be cost-prohibitive. In addition, the process of securing a mortgage— particularly in the midst of today’s market uncertainty, what with high inflation, rising interest rates, and a looming recession— can be complex and unnerving. Rent-to-own arrangements offer an alternative path to homeownership. · SUFFICIENT TIME TO SAVE FOR A DOWN PAYMENT Rent-to-own can be a great option if your finances have you sidelined due to insufficient savings. With rent-to-own, time is your friend, giving you the flexibility and structure you need to save a specific amount of money by a fixed date. · CONVENIENT FINANCING Rent-to-own agreements often come with less stringent credit requirements, making it easier to qualify for financing. And, because a portion of your monthly rent payments will go toward the purchase price of the home, you’ll already have a head start on the financing. · BUILDS EQUITY A percentage of your rental payment goes towards the down payment or equity value of your home. As a consequence, with each monthly payment, you’ll be closer to becoming a homeowner and building equity in your house. · AMPLE AMOUNT OF TIME TO TEST YOUR NEIGHBOURHOOD Rent-to-own can be a great way to look at your community through the eyes of a prospective property tax-paying homeowner. Conveniences and irritations regarding the neighborhood and nearby amenities can be evaluated anew and considered over a span of years before committing to a purchase. · THE OPPORTUNITY, AND OBLIGATION, TO OBTAIN FULL CONTROL OF THE PROPERTY Rent-to-own agreements can be structured to provide the tenant with both the right and responsibility to make a menu of maintenance decisions and design changes, without landlord input. In such instances where the tenant is given a free hand to customize the house, the costs are often paid by the tenant. Thus, should you decide to paint your home entirely in purple, for instance, your landlord’s approval, or more likely, swift disapproval, is not a factor. That said, the cost of this new aesthetic will be paid for by you. This latitude can be a big plus for people who want the flexibility to truly treat the home as their own and renovate it to their liking. · NO BURDEN OF TAXES OR PROPERTY INSURANCE Rent-to-own agreements often come with no requirement to pay property taxes or property insurance, which allows the tenant to try out homeownership without bearing the full cost of homeownership. If you’re considering a rent-to-own agreement, be sure to do your research and work with a reputable landlord. By understanding the process and being aware of the potential risks, you can ensure that rent-to-own is right for you. DISADVANTAGES OF RENT-TO-OWN While rent-to-own is a great way to get your foot in the door of homeownership, there are a few potential drawbacks to consider before signing on the dotted line. · First and foremost, once the lease period is up, you will still need to obtain a mortgage to purchase the property. · Additionally, the landlord may include clauses in the contract that make you responsible for their
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,
BUY A HOUSE FOR THE PRICE OF A CAR IN THE RECESSION
Is the current economy making it hard for you to buy a house? Have no fear, there are still many on-ramps available to buy a house for the price of a car. It may seem concerning and even downright frightening during these tough times, but remember, there’s always an opportunity, even in the most challenging of seasons. The difference-maker is doing your research and working with a capable guide before taking the leap. Through MY SMART COUSIN, we empower you with the knowledge and skills necessary for financial security. We want to help Black and Brown folks and women, in particular, captain their finances so that buying a house for the price of a car goes from ‘to-do’ to ‘to-done’! As Real Estate Investment Coaches, we guide clients through the various acquisition stages and industry opportunities to build a buy-and-flip or buy-and-hold real estate investment portfolio. Do you want to own a house but don’t think you can afford it? You’re not alone. According to data from the Real Estate Monthly Listing Housing Report, the average listing price for a house in June 2022 was a staggering $450,000, up more than $100,000 over the price in June 2020. But instead of simply shaking your head in dismay, what if I told you that the economy was on your side to buy a house for far less than that? Recession-era real estate bargains are out there if you know where to look. In this blog post, we’ll show you how to buy a house during a recession. So whether you’re looking for your first home or simply trying to invest in real estate, keep reading for tips. IS IT A GOOD TIME TO BUY A HOUSE DURING A RECESSION? A recession is typically defined as two consecutive quarters of negative economic growth. During a recession, many people see the impact of a sluggish economy in the form of reduced job hours, job losses, and lower profits for the self-employed. As a result, consumer confidence drops, and the stock market often experiences declines. However, a recession can also be a good time to buy a house. Because fewer people have the means to buy a home during a recession, demand cools off causing housing prices to fall. Since inflation is part of the mix with this recession, the Federal Reserve is hiking interest rates, leading to higher mortgage rates, which further tamps down housing demand. As a result, buying a house during a recession can turn what was once a seller’s market into a buyer’s market and provide an opportunity to get a great deal on a property. Of course, it’s important to carefully consider your finances before making any major purchase during an economic downturn. But for those who are in a strong financial position, a recession can be a great time to buy a home. THE EFFECT OF A RECESSION ON THE HOUSING MARKET The housing market is primarily driven by supply and demand. When there is high demand for houses, prices go up. The opposite is also true – when there are more houses on the market than there are buyers, prices go down. The Great Recession of 2007-2009 had a profound effect on the housing market, both in terms of demand and supply and on the economy more generally. Many people lost a significant portion of their wealth and were no longer able to afford to buy a home. In addition, mortgage rates rose, making it even more difficult for potential buyers to obtain financing. As a result of the decrease in demand, prices of both new and existing homes fell sharply. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort In terms of supply, the recession led to a decrease in the number of new homes being built. This was due to both a decrease in funding for new construction projects as well as a decrease in the number of people who were interested in buying a home. In addition, many people who already owned homes found themselves unable to sell, further decreasing demand for the new homes that they might move into. THE BENEFITS OF BUYING A HOUSE DURING A RECESSION Although the economic recession has been difficult for many people, it has also created some unique opportunities for those looking to buy. · One of the biggest benefits of buying during a recession is that prices are typically lower than they would be during more prosperous times. · Additionally, demand usually cools off, making it easier to take your time considering a purchase rather than being forced to sign on the dotted line then and there. · A third benefit is that with less demand, sellers are often more willing to make concessions, such as paying for closing costs or including appliances in the sale. Buyers who are willing to take advantage of these market conditions can find themselves in a very favorable position when purchasing a new home. THE DISADVANTAGES OF BUYING A HOUSE DURING A RECESSION · FORECLOSURE RISK One of the biggest disadvantages of buying a house during the recession is the increased risk of foreclosure, should you find yourself unable to afford the home long term. As the economy falters, more and more homeowners tend to fall behind on their mortgage payments. The rising tide of late payments means that banks might, in turn, be more likely to foreclose on properties and sell them at short sale prices. Late payment fees and additional interest can leave owners with very little equity in their home and even result in the home being sold for less than the outstanding mortgage balance. · FEWER FINANCING OPTIONS Another disadvantage of buying a house during a recession is that it can be harder to secure financing. With the one-two punch of lenders tightening credit requirements and consumers feeling the pinch of the economy on their pocketbooks,
A BEGINNERS’ GUIDE TO BUY AND HOLD REAL ESTATE
Buying a home is a huge decision – one that should not be taken lightly. For first-time home buyers, the process may seem daunting. But with careful planning and research, it can be an exciting and rewarding endeavor, particularly if you buy a house for the price of a car. Whether you’re a newbie or an expert, MY SMART COUSIN can help you achieve your real estate investment goals. Our focus is positioning Black and Brown folks and women to purchase their investment property or home sweet home quickly, knowledgeably, and cheaply. We use our skills as experienced and trusted Real Estate Investment coach with people just like you who want the opportunity to achieve what everyone deserves – ownership of their own home. Even in today’s red-hot market, there continue to be lots of potential opportunities. If you’re looking for something that has long-term stability and passive income potential, buy and hold real estate makes a great choice. In this guide, we’ll go over everything you need to know about buy and hold investing – from what it is and how to manage the risks, to how you can get started. Whether you’re a beginner or an experienced investor, read on for more information! WHAT IS BUY-AND-HOLD REAL ESTATE INVESTING? Buy and hold real estate investing is a long-term investment strategy in which investors purchase property, intending to hold it for an extended period to generate long-term gains. This strategy is different from flipping, in which investors aim to quickly sell properties for a profit. While buy and hold investors seek to generate ongoing cash flow from their properties through renting or leasing, they also train an eye on the potential of the property. This type of investing can be a good way to build wealth over time, but it requires patience and a willingness to ride out the ups and downs of market economic cycles. For those who are steadfast and disciplined, a buy and hold path can yield steady monthly income coupled with sustained equity growth. WHY SHOULD REAL ESTATE INVESTORS CONSIDER INCLUDING BUY-AND-HOLD REAL ESTATE IN THEIR PORTFOLIO? Real estate has long been considered a solid investment and for good reason. It can yield impressive results when done correctly, providing both profits and stability for your portfolio. And while there are numerous strategies that real estate investors can use to achieve success, one that has stood the test of time is buying a property, renovating it, renting or leasing it, and holding it for 10-15 years or longer, enabling the property to appreciate over time. With buy and hold investing, you purchase a property based on long-term factors such as the economic drivers of the region. Job growth and road infrastructure projects, for instance, are good weathervanes to gauge when comparing communities and searching for investments. By holding onto a property for an extended period, you stand to see a significant return on your investment. According to studies, properties held for more than 10 years have an average return on investment (ROI) of 12%. That’s more than double the average ROI of stocks! As such, long-term ownership of real estate can be a great component of your investment strategy. So how exactly do you find a property to invest in, and what are the key factors to look for? REMEMBER THE OLD SAYING— LOCATION, LOCATION, LOCATION · Location is a key factor to prioritize when searching for properties to invest in. The closer a property is to a high-demand area such as an urban center or up-and-coming neighborhood, the pricier it will be, and the larger the potential payoff over the long run. · But location shouldn’t be the only factor you consider. The value of the property must also be looked at to ensure you’re getting your money’s worth. It’s important to find a property that is undervalued so that there’s room for profit when selling it in the future. · Furthermore, it is essential to have a clear purpose for investing in a particular property. Are you looking to rent it out through Airbnb or under a long-term lease? Are you planning on managing the property yourself or using a property manager? Once you define your investment strategy, you can quickly qualify and disqualify properties based on whether they meet your objectives. There are many profitable opportunities when it comes to investing in real estate. However, it is important to do your research and exercise caution to maximize your chances of success. WHAT ARE THE STEPS INVOLVED IN BUYING A PROPERTY, FROM FINDING A LENDER TO COMPLETING THE SALE? If you’re thinking of buying a property, there are several steps you’ll need to take to ensure the process goes smoothly. · First, you’ll need to find the right property. This means considering factors such as location, size, and price. · After you’ve found a suitable property, your next step is arranging financing. This can be done through a mortgage broker, conventional bank or hard money lender. · Once your finances are in order, you’ll need to upgrade the property. This may involve hiring contractors to perform renovations, make repairs and improve the curb appeal of the home so it is move-in ready. · Once the property is in good condition, you’ll need to find tenants and manage the property effectively. If you will use a property manager as part of your strategy, then you will need to interview, negotiate with and select a property manager. · Finally, when it comes time to sell, you’ll need to ensure that you make a profit on the sale. By following these steps, you can minimize your risks and maximize your chances of success when buying a property. SUMMING IT UP So, what is buy and hold real estate? In a nutshell, it’s purchasing a property with the intent of holding onto it for the long term. It’s one of the most common ways to invest in real estate
HOW MANY MORTGAGES CAN YOU HAVE? A REAL ESTATE INVESTOR’S GUIDE
As a Real Estate Investor, you’re always looking for new opportunities. And Real Estate is full of options to start or grow your portfolio, including being able to Buy a house for the price of a car. We all know that the housing market is crazy. There are so many options and terms being thrown at us these days. Thankfully, MY SMART COUSIN has been around helping aspiring homeowners and investors, and particularly Black and Brown folks and women, buy a house for the price of a car and manage their money with confidence, be it a first home or an investment property. As your seasoned Real Estate Investment Coach, we’ll guide you through every step of the process so that your journey is well-planned and successful! When it comes to mortgages, how many is too many? This question is one that a lot of real estate investors and home buyers are asking themselves. While there isn’t necessarily a strict answer, having too many mortgages can lead to some serious financial trouble. In this post, we’re going to take a look at how to take on and manage multiple mortgages. Keep reading to learn more! WHAT IS A MORTGAGE AND HOW DOES IT WORK? A mortgage is an agreement between the borrower and a mortgage lender to buy a property. The borrower agrees to make regular payments, over a set period, to the lender for the purchase of a house, car, or other assets. In return, the lender agrees to provide the borrower with the money needed to make the purchase, and places a lien on the property or asset in order to ensure that should you say, forget to make payments, you will receive a helpful reminder in the form of a foreclosure notice, should you not cure the delinquency. Mortgage loans are typically used to purchase homes, but they can also be used to finance the construction of a new home or make renovations to an existing one. The terms of a mortgage loan will vary, depending on the type of property being purchased, the size of the loan, and the financial history of the borrower. However, all mortgage loans will require the borrower to make payments comprising principal and interest, either regularly such as monthly, or all in one go such as a balloon payment. Mortgages can be either fixed-rate or adjustable-rate loans. Fixed-rate loans have an interest rate that remains constant for the life of the loan, while adjustable-rate loans have an interest rate that can fluctuate in response to changes in market conditions. A mortgage is a loan that allows you to finance the purchase of a property. When you take out a mortgage, the lender agrees to lend you a certain amount of money for a set period— for instance, three very long decades in the case of most conventional mortgages, or perhaps only 10 years if you buy your home for the price of a car. In exchange, you agree to make payments on the loan, plus interest. The lender also has certain rights to the home itself until the mortgage is paid off in full. For example, if you stop making payments, the lender may have the right to foreclose on the home and sell it to recoup their losses. Therefore, it’s important to make sure that you’re prepared to service the mortgage before taking it on. HOW MANY MORTGAGES CAN YOU HAVE AT THE SAME TIME? For most lenders, the limit is up to 10 mortgages in your name at the same time. That said, the application process can be challenging. · The first step is to find a lender who is willing to work with you. This can be difficult, as most lenders are not interested in lending money to someone who has a significant level of debt. · Once you find a willing lender, you will need to complete a detailed application and provide a substantial down payment. In addition, you will need to demonstrate that you can make payments on all of your loans. · If you can meet these requirements, then you should be able to get approval for multiple mortgages. However, it is important to remember that having multiple mortgages can be a risky proposition, and you could end up in financial difficulty if you’re not careful. QUALIFYING FOR 1-4 MORTGAGES There are a few things you’ll need to qualify for 1-4 mortgages: · Lenders will want to see income proof, usually in the form of tax returns and W-2s. If you have just started a new job or your business only has one or two years of generating profits, consider holding off for a couple of years to build up your earnings history. · They’ll also want to know your current mortgage situation and any other debts you may have. Transparency is key so be sure to disclose all debt. · A good credit score is also important – the higher, the better. · When you’re ready to apply, most lenders will require a completed application, income and asset documentation, and a credit report. · They’ll also need a property appraisal and a statement of any debts you owe on the property. If everything looks good, they’ll give you a firm offer outlining the terms of the loan. Once you accept, it’s just a matter of completing some paperwork and waiting for funding. Applying for 1-4 mortgages is a pretty straightforward process – as long as you have all your ducks in a row, it should be smooth sailing from start to finish. QUALIFYING FOR 5-10 MORTGAGES · The criterion for 5-10 mortgages is a bit stricter. You will need to disclose any bankruptcies or foreclosures during the last seven years. · Minimum FICO score – 720. · Official proof of income for the last two years. · Minimum 25% down payment for a single-family rental property. · On-time mortgage payments on all existing mortgages for the last 1 year. · Tax return for the last 2 years. THE BENEFITS OF HAVING MULTIPLE MORTGAGES While having multiple mortgages can seem like a daunting task, there are several benefits to taking
WHAT ARE THE WAYS HOME BUYERS CAN AVOID CLOSING COSTS
When you’re buying a home, the last thing you want to worry about is closing costs. But unless you’re paying in cash, they’re inevitably going to be part of your purchase price. So how can you minimize them? Not everyone knows this, but you can Buy a house for the price of a car. At MY SMART COUSIN, we help investors and aspiring homeowners, particularly Black and Brown folks and women, scale their finances and build up wealth by investing in Real estate. As a Real Estate Investment Coach, we specialize in teaching you how to Buy a house for the price of a car and obtain the pride and momentum of starting your real estate investment business or fulfilling your dream of homeownership. Purchasing a house comes with many expenses, but there are ways to minimize the various costs, including closing costs. One often-overlooked way is to negotiate the price of the house down to effectively cover the fees. Another is to investigate programs in your city, county, or state that provide grants and mortgage buydowns that cover the closing costs for first-time homeowners. Let’s continue reading to learn more! WHAT ARE REAL ESTATE CLOSING COSTS? The fees that one pays to the mortgage lender for originating and providing the mortgage are termed closing costs. When you buy a new home, there are many costs involved in the closing process. These include paying your mortgage lender’s fee for structuring and financing your mortgage, taxes on property deeds that will be recorded when it changes hands at the end of the purchase agreement period (also known as “due-on Sale”), appraisal fees for the property, and title search fees which help ensure that the title is properly recorded and any liens against it are identified and satisfied. Your local government may charge additional fees such as for a certificate of occupancy, or if architectural or engineering modifications will be made. When it comes right down to it, it’s hard to say precisely what real estate closing costs include or exclude because there is no standardization. The fees you pay your lender will depend on many factors including your lender’s profit targets and how strong or slow demand is. That said, generally, closing costs include the following: · Home appraisal fee · Loan origination fee · Application fee · Credit report fee · Title search fee · Lender’s title insurance · Owner’s title insurance · Monitoring fees · Tax monitoring fee and tax status research fee · Survey · Attorney and notary fees · Government recording fee · Transfer taxes · Escrow property taxes · Prepaid daily interest charges · Mortgage insurance HOW TO REDUCE CLOSING COSTS In today’s hot housing market, it’s very difficult to eliminate closing costs through having the seller, for instance, pay for them in full. There are, however, a few ways that homebuyers can reduce their closing cost tab. Here are a few tips on how to make it happen. SHOP AROUND FOR A GOOD MORTGAGE RATE The mortgage process is a negotiation, and for that, you need to start with your lender. Shop around to find an offer without any closing costs- most of which can be negotiable! For instance, if you have your checking account, savings account, and credit cards from one bank, don’t expect that bank to necessarily provide you with the best deal. Certainly give your home bank the benefit of the doubt and offer them the opportunity to compete for your business, but spend time researching other lenders as well. Your objective is to line up your roster of potential lenders and compare each on a cost component by cost component basis. This will ensure that there are no hidden fees and that you’re able to negotiate each element of your closing costs. · ASK THE SELLER TO PAY SOME OF YOUR CLOSING COSTS If you are purchasing a home from a seller who is anxious to sell, or are buying a house that has very few interested buyers, then consider asking the seller to pay some of your closing costs. This could include paying for attorney fees and title insurance, which are necessary when buying a home in most cases (but not always). · GET PRE-APPROVED FOR A MORTGAGE BEFORE YOU START SHOPPING FOR HOMES Shopping for a home is an exciting process, but it can be overwhelming too if you don’t know what to look out for. One of the most important things that anyone looking at buying their first house needs is pre-approval letters from banks or other financial institutions. A mortgage lender issues a pre-approval letter only after determining that your credit history and budget fit within their lending profile and options. A pre-approval letter can save you money in the closing process because it minimizes the possibility of last-minute and often unexplained fees to be added to your loan or required at settlement. · ASK YOUR LENDER TO SCHEDULE YOUR CLOSING DATE AT THE END OF THE MONTH A closing date that is scheduled for the end of the month rather than one in the middle or beginning of the month can reduce the amount of cash required at closing. This is because the interest portion of your closing costs will only amount to a day or two of interest if you close at the end of the month rather than at the beginning. · DON’T BUY POINTS IF YOU WON’T BE STAYING IN YOUR HOUSE LONG TERM A point on your loan equals one percent of your mortgage. Meaning, that if your mortgage is $200,000, then one point is a $2,000 cost. Lenders will sometimes suggest that they can reduce your mortgage rate by having you buy points. The costs for points, however, have to be paid at settlement, which increases your closing costs. Also, if you only intend to live in your house for a few years, you won’t be able to benefit from the lower mortgage rate long enough to make up the cost of the points. · VARIOUS GOVERNMENTS PROGRAMS Look into municipal, county, and state government programs, which are often targeted at first-time homebuyers. Such programs offer a range of benefits including
REAL ESTATE INVESTING: WHAT IS PREHABBING?
Prehabbing is a great way to get started in the world of Real Estate Investing and is something that every Real Estate Investor should know about. Through, MY SMART COUSIN, we help familiarize prospective investors and homebuyers, and particularly Black and Brown folks and women, with the benefits of investing in Real Estate and how can they also Buy a house for the price of a car. Perhaps even more importantly, as a Real Estate Investment coach, we guide you on how to take your finances to the next level and generate a continuous source of income. WHAT IS PREHABBING AND HOW DOES IT WORK IN THE REAL ESTATE MARKET? Prehabbing at its most basic level is preparing a house for the more extensive work required for a large renovation. Prehabbing a home usually involves doing minor renovations to a property and then selling it to an investor. A house that’s full of debris or has significant damage to only a small area of the home can narrow the pool of potential buyers. Prehabbing can make the property easier to sell by giving it more curb appeal and raising fewer red flags. The minor renovations pay for themselves and then some by increasing the perceived value of the property and its ability to become a successful flip. In turn, this increases profits through appreciation-oriented sales strategies like those used by buy and flip investors. WHAT ARE THE BENEFITS OF PREHABBING FOR INVESTORS AND HOMEOWNERS ALIKE? Prehabbing a property has several benefits: · It can shorten the timeline between purchase and sale and thus lead to a faster fix and flip. · The upfront capital required to prehab a property is significantly lower than performing full-scale renovations. Less upfront capital lowers the risk of recouping all of your investment on sale. · A higher profit on sale can be achieved, thus increasing the return on investment. HOW CAN YOU GET STARTED IN PREHABBING? Whether your home is your primary residence or it’s an investment property, readying it for sale rather than taking the what-you-see-is-what-you-get approach with buyers is key to adding value. Buyers, even buyers who are investors, need to be able to see the potential upside of a property. If all they see are problems, they might not be able to get past them and consider the house as a good investment. Addressing a large eye sore such as holes in a wall or in the floor can help put the house in its proper perspective. Paint, as an example, goes a long way in helping buyers see the positive aspects of a house. Whether your prehabbing work involves a complete paint job, new cabinets or landscaping, or bigger jobs such as addressing structural issues with a floor, this work can help homebuyers and investors see the remaining small handful of problems rather than a long and overwhelming list. Another benefit of prehabbing versus rehabbing is that prehabbing limits the amount of cash you tie up in a property and puts a cap on just how much you’ll spend before getting into full-on the gut-renovation territory. By doing a clean-out of the property and tidying up minor cosmetic issues, you provide a clean slate for someone who is planning more extensive renovations. Keep in mind that when prehabbing, you should always prepare the property for its next owner. While fixing small issues like plumbing or painting may seem insignificant at first glance, they are crucial parts of making sure everything will go smoothly in the marketing process. Let’s take a look at the basic improvements that should be done when prehabbing: · POLISHING AND CLEANING FLOORS You can clean the floors while prepping for buyers. Make sure to keep the home presentable by polishing wooden floors and vacuuming carpets. You want this space ready so that when an investor comes through, you’ll be their first choice. · PAINTING A fresh coat of paint should be an essential part of any home renovation. The appeal and beauty will surely impress buyers, while also making your property look better in photos and other marketing materials. · CLEANING Giving your home a good once-over will make it much easier to sell. Be sure to thoroughly clean it with the help of a cleaning service, and check for peeling paint or spots heavy with mildew. Take care of these small details before showing the property so buyers won’t attribute a large cost to fixing what are ultimately minor issues. · BRIGHTEN THE HOME You know what they say—let there be light! If the house is overly dark or gloomy, consider turning on the electricity and brightening it up with a few lamps. SUMMING IT UP Prehabbing is a great way to get started in the real estate market. It can help you learn more about the market and how different factors affect prices. For investors, rehabbing can be a great way to find undervalued properties, spend a small amount on improvements, and sell them to an investor or homebuyer. Contact us to learn more about how we can help you get started today. YOU CAN ALSO READ: 7 Tips to Build an Entrepreneurial Mindset FOLLOW US: @MYSMARTCOUSIN
BUYING REO PROPERTIES: TIPS, PROS & CONS
If you’re a Real Estate Investor or are just thinking about buying a home, you’ve probably heard about REO (real estate owned) properties. REOs are homes that have been taken back by the lender after being foreclosed on. They can be a great deal, and come with the opportunity to acquire properties with attractive profit margins. Another great way to acquire properties that offer an attractive return is to buy a house at the price of a car. Read on to learn more! BUYING A HOUSE FOR THE PRICE OF A CAR It hardly matters if you are new to Real Estate or a skilled expert, an able coach can help you find your way and achieve your goal more quickly. We at MY SMART COUSIN are there to guide you, with a special focus on serving Black and Brown folks and women, and help you move ahead in the right direction and scale your finances. As your trustworthy Real Investment Coach, we help people do what we do routinely and Buy a house for the price of a car through the hundreds of opportunities available daily. Are you in the market for a new home? Or maybe you’re an investor looking for your next big property project. In either case, buying a low-priced REO property can be a great option. Whether you’re just starting to think about it or you’re ready to take the plunge, read on for all the info you need! WHAT ARE REO PROPERTIES AND WHY ARE THEY A GOOD INVESTMENT OPPORTUNITY? A central plank in Real Estate Investing is finding properties with unrecognized or underpriced potential, and flipping them for large returns. What makes a Real Estate Owned property stand out is that the bank owns the house courtesy a foreclosure triggered by the homeowner not paying the mortgage loan on time or at all. Because banks are not in the business of owning houses as part of their core strategy, lenders tend to be willing to negotiate the sales price. These negotiations can result in lucrative investment opportunities–but only when they come up during your search process. Another benefit of REO properties is that the homes tend to be in somewhat reasonable condition rather than of the tumble-down variety ready for a wrecking ball. The reason is that the homeowner may still live in the house right up until the day that the house is sold. While deferred maintenance will likely need to be addressed, it’s unlikely that major structural issues will be the case in such a scenario. If the homeowner is no longer living in the home, the lender is taking on the responsibility of performing minimal maintenance through a third-party servicing company, again, minimizing the likelihood that the property requires a full gut rehabilitation. HOW DO YOU BUY REO PROPERTIES, AND WHAT SHOULD YOU LOOK FOR WHEN EVALUATING THEM? Purchasing REO properties is similar to other forms of house hunting, with a few exceptions: · FINDING PROPERTIES – Begin your search by identifying properties that are in your desired range and market. Meet with your local bank to determine if they maintain a list of REO properties for sale. · HUNT FOR LENDER AND FINANCING OPTIONS – In order to avoid finding a property, only to have your financing fall through, select a lender and obtain pre-qualification early. When the selling bank that has REO properties knows that you are financially eligible, they are likely to take more interest in your offer. · PREPARE A LIST OF SELECTION CRITERIA FOR REO PROPERTIES – It is important to determine what your key must-haves and dealbreakers are in a property before beginning your search. The more time you spend prepping your criteria, the easier it will be to make efficient, confident decisions when presented with multiple listings by different owners and brokers! Start by looking at the properties you own, or the type that catches your interest, to hone in on what your drivers are. Importantly, don’t allow price to be the only factor on your list. Consider other factors such as property location, size, current condition, ongoing maintenance needs, and so on. · GET AN APPRAISAL – Whether you’re purchasing a property for a primary residence or for an investment, appraisals help you determine the value of the property, warts and all, relative to its asking price. · MAKING THE OFFER – If you have a real estate agent, use your agent to make the offer and work with the lender. An agent offers you another set of eyes on things that you might miss, as well as helps to temper emotions. · HOME INSPECTION – Home inspections are important because they can help you avoid costly repairs after the purchase. A home inspection should always be done before finalizing any deal, but this holds especially true for real estate-owned assets as such properties often come without the protection of warranties or disclosures. · THE NEGOTIATION – Banks, like most sellers, will seek to maximize profits and close quickly. Banks, however, usually have multiple levels of approval involved in their chain of command. As such, be prepared for an extended process that is paperwork-heavy. If you are unclear about the purpose of any documents and what they mean, always ask, and then ask again, until you are clear. · FINALIZATION – Once you have come to an agreement with the seller and your lender is completing their close process, your lender will prepare the loan documents and verify the status of the title. · THE CLOSING OF THE DEAL – If everything goes well, you can close the deal on the REO property. The lender and you must sign the documents transferring the house into your name. WHAT ARE THE PROS AND CONS OF BUYING AN REO PROPERTY COMPARED TO OTHER TYPES OF INVESTMENTS OR HOME PURCHASES? THE PROS OF PURCHASING REO PROPERTIES · NO BURDEN OF OUTSTANDING TAXES When you buy a foreclosed property, there are often no outstanding debts or taxes to worry about. Banks will take care of these issues at possession in order to ensure that they remain the primary lienholder on the property. · HIGH RETURN