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,
WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES
It’s no secret that the housing market continues to be hot, even with high prices and higher mortgage rates in the mix. In May of this year, average home prices hit a record high of $400,000, and then some, despite surging inflation and the resulting downward pressure placed on sales. But even when prices are generally high across the board, there are always bargains to be had, if you know where to look. What if I told you that you can buy a house for the price of a car! At MY SMART COUSIN, we help you achieve your real estate investment goals, using tools and channels that are often overlooked by others. As your Real Estate Investment Coach, we have the skills and expertise to position almost everyone, with a particular focus on Black & Brown folks and women, for success in this competitive market. With planning, persistence, and guidance, you can buy a house for the price of a car and finally get your foot in the door of home ownership and property investment! If you’re in the market for a new home, you know there are a lot of things to consider. How big should it be? What’s the commute like? What’s the neighborhood like? It can be tough to figure out what’s important to you, and even tougher to find the right home that meets all your needs. But don’t worry – we’re here to help. In this blog post, we’ll take a look at the top features homebuyers are looking for in a new property. So whether you’re just starting your search or you’ve been looking for months and still haven’t found “the one,” read on for some valuable advice. WHAT ARE HOME BUYERS LOOKING FOR? Homebuyers are looking for features that will make their lives easier, as well as add value to the home. Popular features that continue to stand the test of time include energy-efficient treatments throughout the house (think insulation and solar panels as well as efficient appliances and windows), open floor plans, and smart technology. Homebuyers are also interested in outdoor living spaces, a flexible space that they can use as an office (given the COVID ripples felt in the work world), and everyone’s favorite— updated kitchens and bathrooms. Let’s dive into some of the most important attributes at the top of that homebuyers’ lists. · LOCATION, LOCATION, LOCATION The location of the house is one of the most important features that a homebuyer looks for, as centrality to required locations (school and work) and neighborhood favorites (shopping and restaurants) is key when choosing a home. The factors that you prioritize are ultimately a personal choice. For instance, most homeowners want to live near the city, but not smack-dab among the bright lights and car horns of downtown. Likewise, many homeowners rank peace and quiet high on their list, but not at the expense of living far from civilization (particularly if playmates for children are important). The perfect balance is a neighborhood that’s close enough to the city center for accessibility, but far enough away from noise and chaos. Also high on many people’s lists is an established area. An area that has plenty of amenities like schools, hospitals, parks, and shopping centers is far more attractive than the prospect of living in a construction zone. · UPDATED KITCHEN AND BATHROOM When it comes to buying a home, everyone has different tastes and styles. But some features endure no matter your preferences. A modernized kitchen and bathroom are two of the most important attributes that home buyers look for. A kitchen is the heart of the home, and a bathroom, particularly one that has a spa-like sense of tranquility, is a place to relax and rejuvenate. Neither of these rooms should feel dated or cramped. A well-designed kitchen should have plenty of storage space and counter space, while a bathroom should feel clean, uncluttered, and serene. · HARDWOOD FLOORS Flooring is one of the most important things that home buyers look for when they are purchasing a new home. Many people believe that hardwood floors are the best type of flooring to have in a home. Although hardwood floors are beautiful, they can also be very expensive. Great alternatives are vinyl plank flooring which comes with the added advantage of being waterproof, and laminate or tile. · ENERGY-EFFICIENT EQUIPMENT According to a recent study, the most important features that home buyers look for are energy-efficient equipment such as solar panels, draft-free windows and doors, high-efficiency furnaces, water heaters and appliances, and well-insulated and solid structures. While energy-efficient fittings can add to the purchase price of the home, the savings can last for many years. If the cost of adding solar or other equipment is beyond your budget, other options include adding energy-efficient lighting and thermostats, and low-flow shower heads and toilets. · A LONG-LASTING ROOF One of the most important features that home buyers look for is a roof that is built with quality materials and still has many years of life left in it. A tile roof can last for decades and comes in many attractive finishes. Asphalt shingles, which are the most common type of roofing materials, are durable, fire-resistant, and have a lifespan of approximately 20 years, depending on your climate. Metal roofs made out of steel are also becoming more popular because they are low-maintenance and energy-efficient, and can last as long as 50 years. · PATIO AND DECK ADDITIONS A slice of backyard greenery is popular across the board with most home buyers. Potential uses range from having a play space for kids to backyard barbecues and entertaining, to having an open area for pets to run around. Patios are natural additions for backyards as they extend your indoor living area, convert your lawn into usable space, and add significant value to your home. If you’re thinking about putting your house
HOW TO FIND SHORT-SALE HOMES IN 5 STEPS
Real Estate is a great way to build up your net worth, particularly if you buy a house for the price of a car. We at MY SMART COUSIN specialize in helping investors, particularly Black and Brown folks and women, with this process so that you can get started on your investing journey, experience homeownership, and begin building real wealth! If you’re looking to buy a house, one of the first channels you may want to consider is short-sale homes. Short sales, as well as foreclosures, can be a great way to get a good deal on properties that are usually below the radar of most buyers. But finding them can be tricky—especially if you’re not familiar with the process. That’s why we’ve put together this guide on how to find short-sale homes and foreclosures in 5 simple steps. So read on and start shopping! WHAT ARE SHORT-SALE HOMES AND HOW DOES THE PROCESS WORK? A short sale is when a homeowner sells their house for less than what is owed on the mortgage. These homes are sometimes referred to as underwater or upside down. The reason is that the value of the house has dropped to a level that is below the amount of the remaining mortgage amount, meaning you’re essentially paying more to the bank than the house is worth. To be approved to get out of your mortgage and sell your home through a short sale, the homeowner must prove that they are experiencing financial hardship and that selling the home is in the best interest of all parties involved. Once the homeowner is approved to sell the home through a short sale, they will work with a real estate agent to find a buyer for the property. The proceeds from the sale will go towards paying off the outstanding mortgage balance, and any remaining debt will be forgiven. While a short sale can be a stressful and time-consuming process for homeowners, it can be an excellent way for them to avoid the foreclosure process and get out from under an upside-down mortgage. THE BENEFITS OF BUYING A SHORT-SALE HOME A short sale is when a homeowner sells their home for less than the outstanding balance on their mortgage. While this may seem like a lose-lose situation for both the bank and the homeowner, there are a few benefits to buying a short-sale home from the point of view of a buyer. · One advantage is that you can often get a large discount on the purchase price. Both the homeowner and the bank holding the mortgage are anxious to get the house off their books. As such, the sales price is usually much lower than the price for comparable properties. · Second is that short sales have fewer interested buyers because the process can stretch out over months before a sale is approved. The pool of buyers who are able and willing to tie up their time and investment capital on a property that may or may not sell is usually quite small. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort · Finally, because the homeowner continues to live in the house until the short sale is finalized, you essentially have a live-in property manager who is providing some level of minor maintenance and upkeep on the property. So, if you’re looking for a deal on investment property, keep an eye out for short sales in your area. THE RISKS ASSOCIATED WITH BUYING A SHORT-SALE HOME In a short sale, the lender agrees to accept less than the full amount owed to avoid foreclosing on the property. While a short sale can be a great way to get a good deal on a home, there are also some risks to be aware of. · One risk is that the approval process for a short sale is entirely up to the lender. The seller may say that the sale is approved, only to have the lender later deny the request. This can lead to lengthy delays, and in some cases, the deal may fall through entirely. · Another risk is that repairs may not be covered by the seller. With a traditional sale, the seller is typically responsible for making any necessary repairs before closing. However, with a short sale, the repairs are often the responsibility of the buyer. This can add considerable costs to the purchase price of the home. As such, it is important to be aware of these risks before buying a short-sale property. HOW TO FIND SHORT-SALE HOMES IN YOUR AREA It’s no secret that the real estate market has been hot and a seller’s market in recent years. However, there are still plenty of great deals to be had if you know where to look. Here are a few tips on how to find short sale and foreclosure properties: · Look for a real estate agent who specializes in short sales. This person will have access to a list of properties that are currently in the process of being sold for less than what is owed to them. · Pay attention to off-book listings through Facebook groups. These are often used to advertise short-sale homes and foreclosures. You can also ask your real estate agent to keep you updated on any new listings that come onto the market. · Drive around neighborhoods that you’re interested in and look for homes that appear to be in disrepair. These may be short-sale or foreclosure properties. · Once you have found a few potential properties that you are interested in, it is important to do your research. This includes finding out as much as you can about the property itself, as well as the surrounding neighborhood. In addition, it is important to research the stage of the foreclosure or short sale process that each property is in. · Attend local foreclosure auctions. This
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
BENEFITS OF HOMEOWNERSHIP YOU MAY HAVE NEVER CONSIDERED
You may have heard that buying a home is a great investment. And it is true: over time, homes usually appreciate. But what if you could Buy a house for the price of a car? Buying a house for an exceptionally low price is among one of many benefits of homeownership that you may not have considered. At MY SMART COUSIN, we are dedicated to being your most trustworthy Real Estate Investment coach. We are dedicated to and laser-focused on raising your awareness about real estate investment strategies. We support all aspiring homeowners and investors, and particularly Black and Brown folks and women, in helping them to scale their finances and Buy a house for the price of a car. Are you considering buying a home? If so, you may be wondering about the benefits of homeownership. While there are plenty of reasons to buy a home, some of the benefits may surprise you. Here are a few advantages of homeownership that you may not have considered. BUYING A HOME BUILDS WEALTH Buying a home is the best way to build your wealth. When you buy, not only do you get an asset that will grow in value over time, but your house provides you with important tax benefits. Another benefit comes in the form of refinancing your mortgage should interest rates go down— something that seems more like a wish than a likelihood these days, but keep in mind, the economy is often cyclical. Refinancing allows you to capture a lower interest rate, or, should the value of the home appreciate, refinance at a higher value and thus unlock these funds for use in an investment or to pay off more expensive debt. Another benefit of a home is that the increased value over time contributes to your net worth, something which can be very important as you near retirement. A higher-valued home allows you to pay off the mortgage completely, and use the increased value above the mortgage to subsidize your living expenses. THE BENEFITS OF HOMEOWNERSHIP · TAX BREAKS AND INCENTIVES As a homeowner, you may be eligible for various tax incentives. The existence of these deductions might shock first-time homebuyers who have never heard about them before. And while taxes may strike most as a ho-hum and to-be-avoided discussion, when it comes to opportunities to save you money, it pays to dig into the weeds. Homeowners can lower their taxable income by deducting property tax. Owning and living in your own home gives you the benefit of avoiding paying taxes on rental income, as well as being exempt from up $250K after selling a property due to an exemption in capital gains tax- there are certain eligibility requirements but generally through this tax, homeowners will see some relief when they sell their home. · YOU CAN CUSTOMIZE YOUR HOME TO YOUR UNIQUE STYLE As an owner of a house, you have complete freedom in making changes and renovations to suit your needs. As the home is your long-term residence, there is no limit on how much customization can be done according to your personal tastes or requirements. Changing the layout of the home is particularly important as you grow older and evaluate your options to age in place, so this benefit should be carefully considered. · YOU CAN BUILD EQUITY IN YOUR HOME OVER TIME, WHICH CAN BE USED AS COLLATERAL FOR LOANS OR OTHER INVESTMENTS Your home is one of the most valuable assets you have. It’s also an important part of building equity, which can be used as collateral for loans or other investments. The longer you hold onto your home before leveraging it up or selling it, the more you increase your equity in the home. · YOU ARE IN CHARGE OF MAINTAINING YOUR HOME AND THE REPAIRS THAT NEED TO BE DONE One of the best things about being a homeowner is that you can decide how much money goes towards repairs and other maintenance. Unless your mortgage lender decides otherwise, this will remain constant throughout its duration. This contrasts significantly with living in a rented home where your landlord decides the pace and extent of improvements. · YOU CAN CREATE A SENSE OF COMMUNITY BY GETTING TO KNOW YOUR NEIGHBOURS When you make your home a permanent residence, you not only provide yourself with your own little nest, but you also become a part of the greater community. SUMMARY So, now that you know some of the benefits of homeownership that you may not have considered before, it’s time to ask yourself – when are you purchasing your house? If you’re still on the fence about buying a home, take some time to think about the unique benefits that come with homeownership and how they might fit into your life. And if you’re ready to start house hunting, be sure to get in touch with MY SMART COUSIN so that we can help you develop and implement your strategy to Buy a house for the price of a car. YOU CAN ALSO READ: REAL ESTATE INVESTING: WHAT IS PREHABBING? FOLLOW US: @MYSMARTCOUSIN
BUYING REO PROPERTIES: TIPS, PROS & CONS
If you’re a Real Estate Investor or are just thinking about buying a home, you’ve probably heard about REO (real estate owned) properties. REOs are homes that have been taken back by the lender after being foreclosed on. They can be a great deal, and come with the opportunity to acquire properties with attractive profit margins. Another great way to acquire properties that offer an attractive return is to buy a house at the price of a car. Read on to learn more! BUYING A HOUSE FOR THE PRICE OF A CAR It hardly matters if you are new to Real Estate or a skilled expert, an able coach can help you find your way and achieve your goal more quickly. We at MY SMART COUSIN are there to guide you, with a special focus on serving Black and Brown folks and women, and help you move ahead in the right direction and scale your finances. As your trustworthy Real Investment Coach, we help people do what we do routinely and Buy a house for the price of a car through the hundreds of opportunities available daily. Are you in the market for a new home? Or maybe you’re an investor looking for your next big property project. In either case, buying a low-priced REO property can be a great option. Whether you’re just starting to think about it or you’re ready to take the plunge, read on for all the info you need! WHAT ARE REO PROPERTIES AND WHY ARE THEY A GOOD INVESTMENT OPPORTUNITY? A central plank in Real Estate Investing is finding properties with unrecognized or underpriced potential, and flipping them for large returns. What makes a Real Estate Owned property stand out is that the bank owns the house courtesy a foreclosure triggered by the homeowner not paying the mortgage loan on time or at all. Because banks are not in the business of owning houses as part of their core strategy, lenders tend to be willing to negotiate the sales price. These negotiations can result in lucrative investment opportunities–but only when they come up during your search process. Another benefit of REO properties is that the homes tend to be in somewhat reasonable condition rather than of the tumble-down variety ready for a wrecking ball. The reason is that the homeowner may still live in the house right up until the day that the house is sold. While deferred maintenance will likely need to be addressed, it’s unlikely that major structural issues will be the case in such a scenario. If the homeowner is no longer living in the home, the lender is taking on the responsibility of performing minimal maintenance through a third-party servicing company, again, minimizing the likelihood that the property requires a full gut rehabilitation. HOW DO YOU BUY REO PROPERTIES, AND WHAT SHOULD YOU LOOK FOR WHEN EVALUATING THEM? Purchasing REO properties is similar to other forms of house hunting, with a few exceptions: · FINDING PROPERTIES – Begin your search by identifying properties that are in your desired range and market. Meet with your local bank to determine if they maintain a list of REO properties for sale. · HUNT FOR LENDER AND FINANCING OPTIONS – In order to avoid finding a property, only to have your financing fall through, select a lender and obtain pre-qualification early. When the selling bank that has REO properties knows that you are financially eligible, they are likely to take more interest in your offer. · PREPARE A LIST OF SELECTION CRITERIA FOR REO PROPERTIES – It is important to determine what your key must-haves and dealbreakers are in a property before beginning your search. The more time you spend prepping your criteria, the easier it will be to make efficient, confident decisions when presented with multiple listings by different owners and brokers! Start by looking at the properties you own, or the type that catches your interest, to hone in on what your drivers are. Importantly, don’t allow price to be the only factor on your list. Consider other factors such as property location, size, current condition, ongoing maintenance needs, and so on. · GET AN APPRAISAL – Whether you’re purchasing a property for a primary residence or for an investment, appraisals help you determine the value of the property, warts and all, relative to its asking price. · MAKING THE OFFER – If you have a real estate agent, use your agent to make the offer and work with the lender. An agent offers you another set of eyes on things that you might miss, as well as helps to temper emotions. · HOME INSPECTION – Home inspections are important because they can help you avoid costly repairs after the purchase. A home inspection should always be done before finalizing any deal, but this holds especially true for real estate-owned assets as such properties often come without the protection of warranties or disclosures. · THE NEGOTIATION – Banks, like most sellers, will seek to maximize profits and close quickly. Banks, however, usually have multiple levels of approval involved in their chain of command. As such, be prepared for an extended process that is paperwork-heavy. If you are unclear about the purpose of any documents and what they mean, always ask, and then ask again, until you are clear. · FINALIZATION – Once you have come to an agreement with the seller and your lender is completing their close process, your lender will prepare the loan documents and verify the status of the title. · THE CLOSING OF THE DEAL – If everything goes well, you can close the deal on the REO property. The lender and you must sign the documents transferring the house into your name. WHAT ARE THE PROS AND CONS OF BUYING AN REO PROPERTY COMPARED TO OTHER TYPES OF INVESTMENTS OR HOME PURCHASES? THE PROS OF PURCHASING REO PROPERTIES · NO BURDEN OF OUTSTANDING TAXES When you buy a foreclosed property, there are often no outstanding debts or taxes to worry about. Banks will take care of these issues at possession in order to ensure that they remain the primary lienholder on the property. · HIGH RETURN
FHA APPRAISAL: GUIDELINES AND REQUIREMENTS IN 2022
As a Real Estate Investor or home buyer, you’re probably familiar with FHA appraisals. Appraisals are important because they help to protect both the lender and the borrower. Lenders like appraisals because the appraisal confirms that the property is worth enough to cover the loan. Likewise, borrowers like appraisals because it reassures the borrower that they aren’t overpaying for a property. If you’re looking to buy a house for the price of a car, FHA financing can be used to finance both single-family houses as well as small multifamily investment properties, as long as the house serves as your primary residence. MY SMART COUSIN specializes in helping aspiring property investors and homeowners, particularly people of color and women, buy a house for the price of a car. As a seasoned Real Estate Investment coach, we take budding entrepreneurs and property investors from idea to action, help you scale your financing, and walk hand-in-hand with you to develop and put in place your customized Real Estate Investment strategy. FHA BACKGROUND The Federal Housing Administration, or FHA, has been around for nearly a century and was founded in 1934. The FHA is a government-backed mortgage insurance company that insures mortgages for people who can’t afford a large down payment. Stepping in as a mortgage guarantor of sorts makes it easier for people to buy a home, as the lender knows that if push comes to shove and the borrower defaults on their loan, FHA will pick up the tab. With inflation and mortgage interest rates reaching new heights, it pays to stay current on lending practices. In this blog, we’ll take a look at what’s changing with the FHA appraisal process in 2022. Keep reading to learn more! WHAT IS AN FHA APPRAISAL? An FHA appraisal is required by lenders to ensure that a potential property is a good investment. Although, as mentioned earlier, FHA guarantees repayment of a large portion of the loan if a homeowner defaults, banks prefer not to find themselves in this situation. After all, the lender makes money by collecting interest payments on the mortgage, so having the loan paid off early by FHA runs counter to this. One of FHA’s top concerns when evaluating an appraisal is ensuring that the property itself is durable, safe, and fit for habitation. The hired appraiser will look at the property inside and out and check for health and safety issues— for instance, the structural integrity of the property, electrical wiring, and mold or mildew issues. Additionally, the appraiser will look at factors that impact the house’s value— for instance, a swimming pool, a garage, and the condition of the home, and major systems such as the roof or furnace. Appraisers also evaluate the features of comparable homes that were recently sold. So even if you have no interest in keeping up with the Joneses, FHA takes an active interest in them from a valuation perspective! BASIC COMPONENTS OF AN FHA APPRAISAL The FHA appraiser looks for the good, the bad, and the ugly regarding the value of the home and any factors that could prevent it from being occupied long-term, as these factors contribute to the property’s longevity and marketability. Two key areas of focus for the appraisal are pests and paint type. Pests don’t refer to an ant or spider here and there, but rather whether there is an infestation or any damage to the property— for instance, damage to supporting wood beams caused by termites or carpenter ants. Paint refers less to the color or style of paint and more to its safety, specifically, if there are areas of the house that have lead-based paint. Houses built before 1972 are more likely to have used lead-based paint versus newer houses. Other areas on the appraiser’s checklist include the following: · THE PHYSICAL CONDITION OF THE BUILDING ° The foundation, roof, and exterior must not be damaged. ° A big NO to insect infestation ° The wiring and the electrical systems must not be exposed. ° Sufficient ventilation of attics. · THE LIVABILITY OF THE BUILDING ° The utilities must be in good working condition including heat and clean water. ° A shielded sanitary sewage disposal system must be present. ° Lead paints should not be used. ° Fire codes and applicable safety codes should be met. · THE CONDITION OF THE PROPERTY SITE ° The soil should not be contaminated. ° The route of the drain pipes must point away from the home. ° The property must be accessible and safe. Market Comparables ° The appraiser evaluates the price of two comparable properties that have sold within the last 90 days. ° In a volatile market, a period of 30-60 days will be used and three comparable properties will be selected. ° Additionally, market comparables will be selected for properties that have not closed yet and are still listed for sale. Typically the appraiser will select two properties for this analysis. ARE THERE ANY POTENTIAL ISSUES THAT COULD ARISE DURING OR AFTER THE FHA APPRAISAL PROCESS? A clean FHA appraisal puts you one step closer to owning a home, but what happens if the appraisal report raises issues or has a lower than expected value? ° IF THE FHA APPRAISAL REQUIRES REPAIRS In some cases, the lender will conditionally approve a loan if the appraiser states that renovations or updates to the home are required to bring it into compliance with safety standards. In such instances, the buyer can negotiate with the seller to determine whether these renovations will be paid for by the seller or will instead be paid in whole or in part by the buyer. ° A LOW-PRICE APPRAISAL If the appraised value of the home comes in lower than the sales price, then, much as with the renovation scenario above, the buyer and seller will need to negotiate to determine how this lower value will be split. Buyers sometimes despair in the face of a lower appraised value, but this decreased value can force a seller’s hand to provide a price that while lower, is closer to market. FINAL THOUGHTS An FHA appraisal is an evaluation