My Smart Cousin

30 minute for $30 Consult
Register Now for The Webinar

Tag: My Smart Cousin

JOINT TENANCY EXPLAINED: WHAT IT IS AND HOW IT WORKS?

Buying Real Estate isn’t as simple as just getting the keys and moving in. There are many legal agreements to think about when you purchase a property, one of which is called joint tenancy. Understanding what joint tenancy means and how it works can be the difference between making a sound investment that pays off, and putting your finances at risk. MY SMART COUSIN is here to make your house dreams come true. As a Real Estate Investment coach, we provide expert guidance for anyone looking to get into Real Estate investment. With our help, you’ll be able to understand the ins and outs of purchasing an investment property and buying a house for the price of a car. In this blog post, we’ll provide an overview of joint tenancy, what circumstances might cause you to consider it when buying real estate, and some key points to consider before signing on the dotted line. We hope this will give you greater clarity on why it’s important, and help inform any decisions you make in regard to real estate investments going forward. WHAT IS JOINT TENANCY AND WHAT ARE THE BENEFITS OF IT? Joint tenancy is a form of co-ownership in which two or more people own a property together. In a joint tenancy, each co-owner has an equal ownership share, and the right to use and possess the entire property. Joint tenancy is a form of home ownership that is especially attractive to couples, roommates, and families. It provides many benefits due to its structure, under which each tenant owns an equal share of the property, and all tenants must agree upon any decisions regarding the property. When the joint tenancy is chosen, it ensures that if one of the owners passes away, their share automatically transfers over to the other owners listed on the title. Defining this at the outset means that there is less likely to be any disagreements among surviving co-owners, as the deceased person’s share passes to the co-owners through a process known as the “right of survivorship.” One of the main benefits of joint tenancy is that it allows co-owners to avoid the time and expense of probate, which is the legal process of transferring ownership of a deceased person’s property. In a joint tenancy, the right of survivorship means that the surviving co-owners can take immediate possession of the property without the need for probate court proceedings. This can save time and money, and also allows the surviving co-owners to retain control over the property without interference from the courts. Another benefit of joint tenancy is that it allows co-owners to plan for the future disposition of their property. For example, if two siblings own a property as joint tenants, they can be confident that the surviving sibling will automatically inherit the deceased sibling’s share of the property. This can provide peace of mind and help co-owners avoid potential disputes over ownership after one of them dies. WHAT ARE THE RISKS OF JOINT TENANCY While joint tenancy has many benefits, it comes with risks and drawbacks that are worth considering: One risk is that if a co-owner incurs debt or becomes involved in legal trouble, the property may be at risk of being seized to satisfy those debts or judgments. This can be a particular concern if one co-owner has poor credit or is prone to financial problems. Another risk is that a co-owner may not be able to sell or mortgage their share of the property without the consent of the other co-owners. This can be inconvenient if one co-owner wants to sell their share but the other co-owners do not. It can also be difficult to determine the value of each co-owner’s share if the property is sold, which can lead to disputes over the distribution of proceeds. HOW DOES JOINT TENANCY WORK IN TERMS OF PROPERTY RIGHTS AND RESPONSIBILITIES? Joint tenancy is an ownership structure that comes with a whole host of rights and responsibilities. Under joint tenancy, each owner has an undivided interest in the whole property. This means that each owner has an equal right to use and possess the entire property. The upside of this provision is that no one owner can evict another owner without the consent of all owners. However, along with rights come responsibilities: each co-owner has an equal responsibility to contribute to the expenses and maintenance of the property. Joint tenancy can be created by a written agreement, such as a deed or a will, or it can be implied by the way the property is held. In order to create a joint tenancy, the owners must have the same interests in the property and take possession of the property at the same time. Joint tenancy can be terminated by one of the owners transferring their interest in the property to another person or entity, or by the owners agreeing to divide the property among themselves. It can also be terminated by a court order, such as in the case of divorce or other legal proceedings Joint tenancy may sound complicated on paper, but when understood properly, it can be a great tool for protecting your assets. CAN A TENANT SELL THEIR SHARE OF THE PROPERTY TO ANOTHER PARTY? As a joint tenant, an owner has the right to use and possess the entire property, but they do not have the right to sell their individual share of the property to another party without the consent of the other owners. This is because the right of survivorship means that the ownership interest of a joint tenant is automatically transferred to the surviving owners upon their death, rather than being transferred to another party through a sale, or passed on to an heir. However, a joint tenant can transfer their interest in the property if the transfer is ordered by a court. In order for the transfer to be effective, it must be done through a formal legal process, such as by executing a deed

RECAST MORTGAGE: WHAT IS IT AND HOW DO YOU CALCULATE IT?

Are you a Real Estate Investor or home buyer looking for ways to save money on your mortgage? If so, you may be interested in learning about the concept of recasting mortgages. Recasting mortgages is a strategic mortgage repayment method that enables borrowers to reduce their monthly payments by paying down part of the principal balance – without having to refinance their loan. At MY SMART COUSIN, we understand the challenges of finding, financing, and even refinancing a house for you and your family, or purchasing an investment. We are an experienced Real Estate Investment coach who can help you weigh the pros and cons of various paths, and implement them with confidence. We specialize in helping new and aspiring real estate investors, particularly Black and Brown folks and women, buy and manage their first property, and buy a house for the price of a car. In this blog post, we’ll dive deep into what’s involved with recasting mortgages and how you can potentially benefit from them. We’ll also look into how to calculate a recast and explore some important pros and cons of this financing option. So if you’re tuned in and ready to learn more, let’s get started! WHAT IS A RECAST MORTGAGE AND HOW DOES IT WORK? The idea of a Recast Mortgage is pretty straightforward: you pay more toward the balance on your remaining loan payments, which reduces the principal. Now here’s where it gets interesting – that reduction means your monthly payment amount will go down. Generally, in order to benefit from a recast mortgage, you have to make a lump sum payment of anywhere from $5,000 to $20,000 or more, depending on the size of your loan. You must also be up‐to‐date with all regular payments, or the lender won’t consider recasting. However, if this is something you can do, then in no time you could potentially lower your interest rate and start seeing some real savings. Plus, this process allows you to keep the same terms of your existing loan so that any additional tax breaks due from it still apply. It really can’t get much better than that! HOW TO CALCULATE A RECAST MORTGAGE? Even if you’ve never heard of a recast mortgage, you may want to consider learning how to calculate one. With a recast mortgage, you can refinance your loan without actually refinancing–meaning you don’t have to go through the same lengthy process to get better terms on your loan. Calculating your recast mortgage repayment is simple. All you need to know is your existing balance and the principal amount of your extra payment. Then, subtract the extra payment from the existing balance and use that as the new balance for terms that better suit your needs. It’s an easy, stress-free way to get more out of your mortgage! THINGS YOU SHOULD KNOW BEFORE OPTING FOR A RECAST MORTGAGE Before you consider recasting your mortgage, there are some important points to keep in mind. While it can provide lower payments and more financial flexibility over the long haul, it’s not a decision to be taken lightly. · First, talk with your lender as they may have their own specific requirements that need to be fulfilled before they agree to recast your mortgage. · You’ll also want to make sure you understand any fees associated with the process, as these often can add up quickly. · Finally, if you’re considering taking out extra money or increasing the size of your loan when you recast, be aware that this may put added strain on the rest of your finances. Evaluate your budget and the source of funds you will use to make the down payment, and e sure that you will still have access to emergency funds should an emergency occur. Overall, if done correctly, recasting could potentially prove to be an invaluable resource for those who find their current mortgage payments too high and are looking for relief. PROS AND CONS OF RECASTING YOUR MORTGAGE Recasting your mortgage can be a good idea if you have some extra cash to dedicate towards your monthly payments, as it can significantly reduce the time until what really is a generation-long loan— 30 years— is paid off. It may also lower the amount of interest that will accumulate given the shorter tenor, and save you some money in the long run. However, it’s important to look out for fees such as closing costs, as they may counteract any potential savings. Additionally, recasting isn’t available with all lending institutions, so it’s important to do your research and check what your current lender offers. If done correctly, recasting can be a great way to pay off your mortgage sooner than expected, with no refinancing or requalification processes. WHEN IS THE BEST TIME TO RECAST YOUR MORTGAGE Trying to figure out when the best time is to recast your mortgage can be daunting, however, it can be a great way to save tens of thousands of dollars in interest over the life of a loan. Before considering recasting, it’s important to look at ways to lower your existing mortgage payments without increasing your loan amount or term. Paying off any credit cards that have higher interest rates first should be prioritized as this could help reduce monthly payments more than a mortgage recast would. Said another way, the cost of money with a credit card is 25% or even more, versus the cost of money with a mortgage at 7% to 8%. If you have a large credit card balance, say $10,000 or more, and are making minimum monthly payments, you are better served to pay off your credit card debt rather than recasting your mortgage. In terms of timing, experts often urge homeowners in a strong financial position to look into recasting after 12 months or more post the closing of their home, when they are more likely to have some extra cash saved up to cover the costs. Depending on lender policies, there may

WHAT IS A SPLIT-LEVEL HOUSE AND SHOULD YOU INVEST IN ONE?

Are you considering investing in Real Estate and torn between bungalows, two-story houses, and split-level homes? Purchasing a property can be an overwhelming process with critical decisions to make. Many investments require careful consideration regarding the type of house being purchased. Split-level homes are one such variety that has gained popularity over time, due to their unique design and multi-functionality. As such, split levels can be a great fit for a real estate investment portfolio.

THE F.I.R.E. PLAN – A STEP-BY-STEP GUIDE TO REACH YOUR FINANCIAL POTENTIAL

Some people might think that financial success just boils down to buying low and selling high. While the timing and a bit of luck from buy-sale transactions are part of the equation, long-term financial stability and freedom also depend on the long-term ownership of assets such as real estate. There’s no question that successful Real Estate Investing requires thoughtful planning and execution. But it can be tough to know where to start. Think you’re stuck in a financial rut? MY SMART COUSIN can help get your life back on track. With our track record as an experienced Real Estate Investment Coach, we teach aspiring and new real estate investors, with a particular focus on Black and Brown folks and women, how to buy a house for the price of a car, as we have done dozens of times. In this blog post, we’ll walk you through the basics of the F.I.R.E. planning method, providing you with a step-by-step guide to reaching your financial potential. So whether you’re just starting out or you’ve been investing for a while, read on to learn more! WHAT IS THE F.I.R.E. PLANNING METHOD AND WHAT ARE ITS BENEFITS? Any financial planner worth their salt will tell you that one of the most important things you can do for your future is to start saving for retirement as early as possible. The earlier you start, the more time your money has to grow and recover from financial downturns. However, for many people, the thought of retirement and legacy wealth seems like years into the future, and they simply can’t imagine putting away money for something that feels so far away. This is where the F.I.R.E. planning process comes into play. F.I.R.E. stands for Financial Independence, Retire Early. In other words, the F.I.R.E. method focuses on positioning you to achieve the kind of enduring financial freedom that allows you to cut the working cord now, not years into the future. The major benefits of this method are: ·   It allows you to map out a path to financial independence so that you can retire early. ·   It takes into account your current income and expenses and forecasts how much money you will need to save and/or generate each month in order to reach your goal. Spoiler alert—you will not be able to rely on reducing your expenses to achieve financial independence. Asset building, such as through real estate investment, will be key. ·   It provides advice on investing and offers other tips for achieving financial freedom, based on your lifestyle goals, expenses, and liabilities. While it may seem like a daunting task, with the help of the F.I.R.E. method, you can make your dream of early retirement a reality. HOW TO CREATE YOUR OWN FIRE PLAN? If you’re looking to retire early, it’s important to have a plan in place. Creating a F.I.R.E. plan can help you get specific about how much is enough to replace the income you’re currently making, through investments and entrepreneurship. Here are a few things to keep in mind when creating your own F.I.R.E. plan: ·   Determine your current financial situation. This includes understanding your income, expenses, debts, and investments. This will give you a baseline to work from as you create your plan. ·   Set your goals. What is your target retirement date? How much money do you need to have saved? What lifestyle do you want to maintain in retirement? Answering these questions will help you create a plan that is tailored to your specific goals. ·   Create a budget. Once you know your current financial situation and what your goals are, you can start to create a budget. This budget should account for both your current and future expenses. Make sure to include some flexibility in your budget so that you can account for unexpected costs. ·   Find ways to save money.  In order to retire early, you’ll need to save as much money as possible. One easy way to do this is to automate your savings so that a fixed amount is deposited into your retirement account each month. ·   Invest wisely. In addition to saving money, you’ll need to invest wisely in order to reach your goals. This means understanding the different types of investment options— from real estate investing, to stocks and bonds— and choosing the right mix of investments for your needs. It’s also important to periodically rebalance your portfolio so that it continues to align with your goals. Creating a F.I.R.E. plan can help ensure that you are on track to reach your goal of financial independence and retiring early. By following these steps, you can create a personalized roadmap that enables you to live comfortably today while moving your retirement date ever earlier. STEP-BY-STEP GUIDE TO REACHING YOUR FINANCIAL POTENTIAL Achieving financial success doesn’t happen overnight. It takes time, discipline, and a commitment to learning and growing. However, if you’re willing to put in the work, it is possible to reach your financial potential. Here’s a step-by-step guide to help you get started: ·   Set realistic goals. Determine what you want to achieve financially and develop a plan to get there. Remember to be realistic and patient; wealth accumulation takes time. ·   Stay disciplined. Once you have a plan in place, stick to it. Discipline is key when it comes to money management. ·   Make learning a priority. Financial success requires continuous learning and growth. Seek out resources (books, articles, courses, etc.) that can help you become more financially savvy. ·   Take advantage of opportunities. When presented with an opportunity that you’ve thoroughly researched and has the potential to boost your financial situation, don’t hesitate to seize it. ·   Be patient. Rome wasn’t built in a day, and likewise, a foundation for lasting financial success can’t be rushed. Couple patience with consistency; eventually, you will reach your destination. FAQs ABOUT THE F.I.R.E. PLAN AND FINANCIAL PLANNING IN GENERAL If

SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT?

Homebuilding is on the rise and, as a Real Estate Investor or homebuyer, you may be thinking about whether investing in a spec home, that is, a custom home that is built to your specifications, is a good idea. There’s no doubt that buying a that’s already built and pre-owned is cheaper than building one from scratch. However, there are a few compelling reasons why building a custom home might be a good investment after all. In this blog post, we’ll take a closer look at what spec homes are, and consider the question of whether to build one based on current market conditions. We’ll also discuss some of the pros and cons of investing in spec homes, as food for thought, should you be considering this path. So, if you’re thinking about becoming a spec home builder, or just curious about what they are, keep reading! MY SMART COUSIN provides expert guidance on how best to get started in Real Estate Investing today and every day. We all know that becoming a property investor is no easy task. There are so many things to be taken into consideration, and the process can often seem daunting for beginners! Whether it’s purchasing your very first home to live in or investing in a property to begin your dream of owning a portfolio of investments, MY SMART COUSIN has your back as your seasoned Real Estate Coach, guiding and assisting you every step of the way. Whether you’re thinking about what type of property interests you or how to establish your budget, we help aspiring investors, with a particular focus on Black and Brown folks and women, find and invest in properties. WHAT ARE SPEC HOMES, AND WHAT ARE THE BENEFITS OF BUILDING ONE? A spec home, short for speculative home, is a property built without a specific buyer in mind. Builders typically construct spec homes in areas where they think there will be high demand for new homes. When building spec homes, investors must move on two parallel paths, both deploying a strong sales force to sell buyers a concept of their soon-to-be dream home, and working with general contractors to quickly build homes that will be appealing as-is to future buyers. The name of the game with spec homes is to sell the home as quickly as possible after it is completed.

FAIR MARKET VALUE: DEFINITION & CALCULATOR

Home buyers and investors often hear the term “fair market value” when talking about buying or selling a property. But what does it mean? Fair market value is defined as “the price at which a property would sell between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.”  But if you’re thinking about buying or selling a property, it’s important to have an idea of what fair market value is. And luckily, there’s an easy way to calculate it.  We understand that buying a house can be stressful and overwhelming, especially if you don’t know what to do. MY SMART COUSIN is here for all your Real Estate needs! Whether it’s finding an affordable property or helping with financing options so the process goes as smoothly as possible – as a Real Estate Investment Coach, we’ve got just about everything covered at this one-stop shop. We offer tailored solutions to every individual, with a particular focus on Black and Brown folks and women, in every aspect of investing, and particularly for those seeking to Buy a House for the Price of a car, our personal favorite to buy a property!

ARE MANUFACTURED HOMES A GOOD INVESTMENT IN 2023?

FINAL THOUGHTS So, are manufactured homes a good investment? The answer to that question depends on your personal circumstances and preferences. But with all the new features and benefits available now, it’s definitely worth considering if you’re in the market for a new home. And as more and more people are choosing them over traditional housing options, it seems likely that the market for manufactured homes will only continue to grow in years to come. If you’re ready to invest, we can help you find the perfect home for you. Give us a call today! YOU CAN ALSO READ: WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?FOLLOW US: @MYSMARTCOUSIN

WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?

Are you thinking of investing in real estate but aren’t sure where to start? A duplex might be a good option for you. But what is a duplex, exactly? And is it the right investment for you? A duplex is a type of property that is becoming increasingly popular with real estate investors. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this blog post, we’ll answer questions on how to purchase a real investment property and the pros and cons of duplexes. So keep reading to learn more about duplexes and whether they are a good investment for you. WHAT IS A DUPLEX HOUSE AND WHAT ARE THE BENEFITS OF OWNING ONE? A duplex is a two-family property that has two units, typically side-by-side or one on top of the other. Duplexes can be owner-occupied, with one unit rented out to generate income, or they can be purchased as investment properties, with both units leased to tenants. There are several benefits to owning a duplex. · First, duplexes offer an affordable way to enter the real estate market, since they typically cost less than the price of two single-family homes. · Second, they offer the opportunity to generate rental income, which can help offset the cost of ownership. · Finally, duplexes offer flexibility in terms of living arrangements: owners can choose to live in one unit and rent out the other, or they can rent out both units and live elsewhere. Ultimately, owning a duplex can be a smart financial decision for those looking to invest in real estate. HOW DO YOU KNOW IF A DUPLEX IS A RIGHT INVESTMENT FOR YOU AND YOUR FAMILY? When it comes to investing in Real Estate, there are many different options to choose from. For those who are looking for a solid investment that will provide income and appreciation over time, a duplex can be a great option. But how do you know if a duplex is a right choice for you? There are a few things to consider before making this important decision. · First, take a look at your financial situation. Do you have enough saved up for a down payment? Are you comfortable with the amount of debt you would be taking on? Be sure to consult with a financial advisor to get a clear picture of what you can afford. · Next, consider your goals for the property. Are you looking for an investment that will generate a rental income? Or are you hoping to live in one unit and rent out the other? Make sure that your goals align with the type of property you’re considering. · Finally, think about the location and condition of the duplex. Is it close to public transportation and other amenities? Is it in need of any major repairs or updates? These are all important factors to consider when making your decision. By taking the time to think about these things, you can be sure that you’re making the right choice for your needs and goals. A duplex can be an excellent investment, but it’s not right for everyone. Be sure to do your research before making any decisions. WHAT ARE THE RISKS AND CONSIDERATIONS ASSOCIATED WITH INVESTING IN A DUPLEX, AND HOW CAN YOU MITIGATE THEM? One of the biggest considerations associated with investing in a duplex is determining whether you prefer to live far away from your renters, or a door knocks away. In many ways, renting out a duplex is like having a roommate upstairs or next door. If you prefer privacy or even anonymity when it comes to renting to a tenant, then a duplex may not be a great option. A related consideration when investing in a duplex is the potential for tenant turnover. If you rely on rental income to make your mortgage payment for the property, you could find yourself in a difficult situation if your tenant moves out unexpectedly. To mitigate this risk, it’s important to have a good relationship with your tenant and to keep your property well-maintained. Also on the list of risks is the possibility of damage to your property. While this is a risk for any investment property, it hits especially close to home if the damage affects the unit you live in as well, causing both a major financial setback and disruption to your family life. To protect yourself, it’s important to vet your potential tenant and purchase an adequate amount of home insurance. Finally, it’s important to be aware of the potential for increased maintenance costs. A duplex is essentially two homes wrapped in one, which means that there are twice as many potential problems that can arise. By budgeting for unexpected repairs and setting aside money each month, you can help cushion the blow if something goes wrong. While there are some risks associated with investing in a duplex property, there are also ways to mitigate those risks. By being prepared financially and maintaining a good relationship with your tenants, you can help protect yourself from potential pitfalls. ARE THERE ANY OTHER COSTS ASSOCIATED WITH OWNING A DUPLEX THAT INVESTORS SHOULD BE AWARE OF BEFORE MAKING THEIR DECISION? When it comes to duplexes, there are a few things that potential investors should keep in mind. · First, duplexes typically require a higher down payment than a single-family home. This is because lenders view them as more risky investments. · Additionally, duplexes also come with higher monthly carrying costs, such as property taxes and insurance premiums. ·  And finally, if you’re planning on living