Home Buying – Bring On The Nerves

May 29, 2012 – 7:56 am

Real estate. Those two words have always made me nervous. My partner and I are getting married in the fall and wedding preparations don’t bother me half as much as the shenanigans that surround the buying of a new home.

As couples go, we’re the older kind, and both of us have been married before. We decided that, pre-marriage, we’d ‘amalgamate’, in more ways than one. We both owned our own homes before we met. After dating for so long, we both naturally ended up spending more time in mine than his. However, both homes were of an equal size, meaning that neither were 100% suitable (were – we sold up and rent for now).

Being in our 40,s no young children (or grandchildren on the horizon) we thought it better to downsize. And that’s what we’re doing. And I know we’re having to get on and ‘do it’ because we just spent the last week looking at bridal sets. In fact we bought one. Which means the wedding is definitely happening!

Silly I know, and maybe the house buying thing, on top of the wedding, is stretching our coping abilities a bit thin but … needs must. We are both old romantics, and both want the house bought and ready to move into after we return from our honeymoon in Cancun. We’ve even got friends ready to go and ‘air’ the house a day or so before we come home. We just need to get all the details sorted out … like buying it!

So far (as the house buying process goes) we’ve got a realtor sorted, and credit, well, we don’t need it. As we’ve both sold our homes we’ve got money in the bank to buy cash, so that’s one aspect of the process we’ve not been subjected to. We did have a list of homes to view, and narrowed it down to two. We’re now (at the time of typing) at the stage whereby we’ve made an offer one our favorite property which means that we’re waiting to hear one way or the other.

I’m pretty sure we won’t get it but that’s possibly because I’m one of life’s realists in that usually things are not quite so simple! Anyway, even if our offer is accepted, we’ve still got a few more steps to take prior to completing the purchase. We should know – as sellers we’ve been through it twice from the opposite side of the fence.

If, like us, you’re in the middle of the process, good luck! If not and you’re thinking about it but need more information, click here. The link takes you to a nice, concise step-by-step guide to what you can expect before, during and after the home buying process.

The visual step-by-step home buying process

By Benny Godwin | Posted in Real Estate | Tagged , , | Comments Off

7 steps to increasing the selling value of your home

May 14, 2012 – 8:21 pm

Ten years ago, it was easy to get a mortgage. Homes were selling fast, and often for much more than the asking price. Buyers were looking for potential rather than perfection and not how well luxury beds would sit in each of the bedrooms or if their antique furniture would fit in the living room. Sellers were sitting pretty. In most real estate markets today, that’s no longer the case.

Many people think they need to spend a lot of money in order to make their house more marketable. However, it isn’t necessary to spend thousands on a new kitchen or new windows in order to make a home more attractive to prospective buyers. Sellers who do these seven things will see clearly – perhaps for the first time in years – what they already own. They may even reconsider selling.

1. Declutter
2. Organize
3. Clean
4. Consult
5. Repair
6. Decorate
7. Evaluate

The clutter needs to go. Hold a yard sale or sell underused items in an online auction or on a classified site. Rent a storage unit if it’s needed. There should be nothing on the kitchen counters that isn’t clearly part of an organizational scheme. When the laundry is all clean, it should fit into the closets and dressers. Print and electronic media should be on shelves or in cabinets.

Once the house is organized, it should be blitzed. Now is the time to clean under and behind the appliances and furniture, to steam clean any rugs or carpets, and to fix anything that’s broken. Make sure that old appliances, doors, windows, and lights look and work like new. A functional component or appliance doesn’t necessarily need to be thrown away just because it’s old, but if it isn’t working properly or can’t be made to look good, then seriously consider replacing it. Real estate professionals can give advice on what changes and replacements will give you the best value for your money.

Next, take a look at the decorating. Are the paint, wallpaper and trim attractive and in good condition? A new paint job will make a house look clean and bright and also creates an opportunity to patch flaws in the walls and ceilings. Sometimes a stylish interior can help sell a house, but many buyers prefer to see a neutral decorating scheme that they can personalize. If the house is older, then consider using historically appropriate colors.

Finally, review the entire house and yard. Don’t neglect the basement, garage, and exterior. Everything should look neat and well cared for. If the roof is noticeably worn, then this is the expensive repair to invest in. Nobody wants to buy a house that needs roof repairs.

Making an existing, occupied house attractive to buyers takes work, but attention to detail is more important than a big monetary investment.

By Benny Godwin | Posted in Property | Tagged , , | Comments Off

How Ownerwiz Can Help You Rent to Own a Home

April 29, 2012 – 3:45 pm

Most people know about a rent to buy option on real estate. The seller agrees to a set rent payment with an option to purchase the property at a later date. The problem with these arrangements is that if a buyer cannot come up with the down payment to begin with, chances are that he/she will not be able to do so at the time of purchase. Add to this the strict lending standards set forth by banks and the renter is all but locked out. He/she will not be able to get the down payment nor the mortgage and the deal falls through.

Now enters a company called Ownerwiz. Ownerwiz is unique in the way they take the same concept of rent to own and structure it so that the renter can actually make the purchase at the end of the lease. Here is the way it works. The program starts with a $2,500 down payment. The buyer and seller agree to the terms of the contract. The “rent to own” agreement is similar to a lease agreement. The amount of the monthly lease payment is stated. As well, the term is specified. At this point there is marked departure from the standard rent to buy option. The agreement states that a portion of the lease payment shall be held toward the future down payment of the mortgage. The balance is forwarded to the landlord or seller. This single arrangement takes away the renters need to come up with a down payment when the lease expires. In the meantime, the renter is building up his/her credit rating. 

Lease to Own a Home

Another unique feature of the lease involves repairs. Traditionally the landlord or seller must make all repairs. In this lease, the renter is responsible for repairs, except for big items like electrical, plumbing and heating. This gives the renter a greater sense of ownership to the property.

The lease also specifies the description for the property, including a clear Title to the property, land, and easements. Here again, the way is paved in advance of the closing.

What this program does is to make the transition from renting to buying smooth and effortless. It enables persons who otherwise would not be able to own a home to purchase one. Learn more about Ownerwiz here. 

By Benny Godwin | Posted in Real Estate | Tagged , , , , , , | Comments Off

Rehab Lenders 101

April 24, 2012 – 10:17 pm

Real estate investors who are looking to flip houses often find it difficult to find financing through normal channels. Since most of these “flippable” houses need extensive renovations, traditional banks and lenders will not offer mortgages. Successful investors build up a cash reserve over time and use that to purchase and fix up houses, while others look to relatives to help with the financing. There is a special class of lenders, known as rehab lenders, whose primary function is to loan money to investors who plan on rehabbing and then selling the properties they purchase.

Most rehab lenders work in a specific niche, called a “sandbox.” They may specialize in commercial properties, development projects, land deals or residential homes. The majority that deal in home rehab loans only offer financing for single-family homes in the $250,000 price range and lower, since these homes appeal to a broader market and tend to sell more quickly.

When you approach one of these lenders for a rehab loan, get ready to do some significant paperwork. You will be asked for the following, at minimum:

  • Credit score
  • Job history
  • W-2 forms
  • Recent bank statements
  • Verifiable job history
  • Tax returns

Before signing on the dotted line, make sure that you are fully aware of the amount of the note, the interest rate, amount of payments and consequences should you need an extension.

With the glut of foreclosure homes on the market, there is a new breed of buyer who is taking advantage of the low prices. These people are looking for a fixer-upper home in distress or foreclosure that they can pick up at a very low cost, allowing them to fulfill their dream of home ownership. Depending on the extent and type of repairs that need to be done to make the home habitable, they may not qualify for a traditional mortgage.

Instead of approaching a rehab lender, these buyers should learn more about the 203(k) rehab loans offered by the Federal Housing Administration (FHA). This type of loan allows the buyers to roll the costs incurred in fixing up the home directly into the loan. They offer streamlined loans with a cap of $35,000 on rehab costs, designed for homes that need mostly cosmetic repairs, and standard loans designed for people purchasing homes that need significant repairs to be habitable.

No matter whether you are an investor looking to make some quick money or a private buyer looking to purchase an inexpensive home, there are several financing options available that should fit your needs quite nicely.

By Benny Godwin | Posted in Loans | Tagged , , , | Comments Off

Advice For Real Estate Developers In Central America

March 1, 2012 – 3:14 am

The past few years have been difficult for real estate developers in Central America who market primarily to US buyers.   Ever since the global financial crisis took hold and the demand for investment real estate shrunk, local developers have had to adjust to a new business reality. It’s safe to say that some have fared better than others. Looking at the Nicaraguan marketplace for example we’ve seen evidence of some projects stalling completely while others have managed to continue with the build out of their master plan.

In this article our goal is to determine what made the difference between the real estate developments that has managed to weather the financial storms and the developments that have not.  We’ve drawn on articles such as this one from the International Property Journal and this one from the New York Times and distilled what we think are the key factors common to a successful development and have included them in a set of bullet points below:

  • Real estate buyers now require a higher degree of openness than ever before. The result is that developers who are very transparent about their project timelines and other aspects have managed to build a high level of trust with prospects.
  • Times have been particular trying for developers selling off-plan property. The ones that have managed to continue with this business model are those that have been better able to convince buyers of their financial viability. When developers are able to demonstrate a track record of completed construction projects this argument is easier to make.
  • A new demographic of buyers often called “lifestyle buyers” are arriving in Central American countries. These are not the speculative investors of the past but people looking at Central America as a place to live now or retire to in the future. Those developers who have managed to recognize this demographic – and respond to it – have suffered less in these turbulent years for international  real estate.
  • Developers who’ve shown flexibility in the design of their master plan has been better able to respond to changes in the marketplace. For example we’ve seen some developers in Nicaragua do very well by launching highly functional, entry-level properties for sale and moving away from larger, more elaborate offerings.

For more context about how the market works in Nicaragua check out our previous article on this site.

By Benny Godwin | Posted in Real Estate | Tagged , , | Comments Off

This Can Increase Your Homes Value

January 7, 2012 – 10:20 pm

Every one wants to get the top price for their real estate whether they are trying to sell it or rent it out. To do so they will usually do some repainting and some decorating to give that house a new and clean feel to it. Having an up to date kitchen and bath will also add value to a home.

But with today’s energy prices, showing that you can save the new homeowner that they can save money on home oil prices or propane price will also help increase the value of your home.

Now you don’t have to go out and spend a fortune on improving the insulation of your home. In fact these are basically do it yourself projects that you can do over a weekend.

For example if your attic isn’t insulated or doesn’t have enough, you can simply add new insulation to it. It is a simple job. The only tools you will need are a knife, a tape measure and a staple gun.

Carefully measure how long you need the insulation to be. Cut it at the appropriate mark and then staple it to the studs. It can be time consuming, but thing how much money you will save doing it yourself and how much money you will save in energy costs too.

Doing the above can possibly increase the value of your home.

http://youtu.be/JyZt3nZo7Ao

By Benny Godwin | Posted in Real Estate | Comments Off

Home Based Real Estate Business

December 23, 2011 – 11:57 am

A few years ago, tons of people were walking around with a big smile on their face. They were one of the many who invested in a second home because they heard house prices were on the rise and it will keep rising. Lenders wanted to get in on the action and gave out loans like crazy even to people who wouldn’t normally qualify for one. With the rising home values, some were thinking of starting some home based businesses with the money they were building up. Then it came, the housing crash. Within a year, home prices plummeted. People were having a hard time selling their house. Many ended up in foreclosure. To make ends meet, some even searched for legit work from home jobs to help with their expenses.

housing

Who’s to blame for this crisis? Some blame the lenders for making it too easy to get loans. Others blame the home buyers for being too greedy and buying homes they couldn’t afford. Although years has passed, the problem hasn’t gone away yet. People are still defaulting on their loan payments and foreclosures continue to occur each month. If you happen to have money since you didn’t join the crowd a few years back, perhaps now would be a good time to buy some properties since they’re so cheap.

By Benny Godwin | Posted in Real Estate | Comments Off

Is It Time Now To Invest In Real Estate?

December 16, 2011 – 9:25 pm

There was an article not too long ago on the Wall Street Journal, talking about all the negative things that can come from being a landlord. Surprisingly, while the article was titled “Are you ready to be a landlord” and subtitled “Buying investment properties can be risky. Here’s how to do it smartly”, there were literally no positives! It seemed to be as if it were written by someone who either had personally lost money in real estate or had been personally affected by one or more real estate deals that had gone south.

I happen to think that this current economy is the best time to invest in real estate, because we have a number of things that are playing in favor of any prospective investor.

First off, there has been a very severe market correction, meaning that houses are now cheaper than they have been in a very long time. What does that mean? The barriers to entry have been lowered.

Secondly, rates are at or near historical lows. That means that the cost of money is very low, and best of all, you can lock it for 30 years so that you’re unaffected by any future rate increases. This is especially appealing when you consider that history suggests that rates are not going to stay at that level, they’re going to go up.

Finally, with the wave of foreclosures since the recession hit, there’s no shortage of homes on the market, at every price point and in every sector of the real estate market you would like to invest in.

The biggest obstacles to anyone launching a successful career as a real estate investor are knowledge and access to capital. The knowledge is there: as long as you have enough common sense to avoid anyone that claims to make you millions with no out of pocket money, you should be alright. There are risks, but every business has risks.

As for access to capital, well this is something that you will want to address before you get started. A few percentage points will make a big difference in the cash flow you can derive from a property.

I really think it’s one of the best times to get started in real estate investing.

By Benny Godwin | Posted in Property | Tagged , , , | Comments Off

Home refinancing tips

December 8, 2011 – 6:56 pm

Beginner investing generally implies that you do not have much financial knowledge or experience and this is true of any form of financial activity. If you are new to home refinancing, you should remember that refinancing your home to reduce your personal debt such as credit card debt [which is invariably expensive] is a good idea to save money. If, however, you are refinancing to raise cash for other forms of expenditure such as an expensive holiday, you should be careful not to leave yourself overstretched financially. It also makes sense to refinance to save money if your existing mortgage carries a higher interest rate than the rate prevailing in the market today.

http://youtu.be/MWt1SitxU-w

You should examine the terms and conditions of your present mortgage to assess what it is going to cost you in terms of penalties and fees for prepayment. This will tell you whether refinancing makes financial sense. Before approaching potential lenders, you should check your credit score. Remember that the lender is under no obligation to do the best possible terms and it is up to you to negotiate based on your credit score. If your refinancing is still in the future, you can take steps to improve your credit worthiness by paying down some of your current debt.

Obtaining a refinancing for a shorter period is another way to get better terms and conditions. If you feel that you can handle the higher repayments, you will put yourself in a much stronger negotiating position. You should also consider buying points because this upfront payment will result in a reduction in your interest rate. Buying points are only worth your while if you plan to stay in the house long enough for the reduced interest payment to compensate for the upfront point payment. You should also try to maintain the same income levels so that lenders would consider your case

favorably.

By Benny Godwin | Posted in Mortgages | Tagged , , , , | Comments Off

Picture Perfect Properties, a Trademark of Myrtle Beach

November 22, 2011 – 1:47 am

Myrtle Beach real estate is on the rise, and that does not come as a surprise to those who have been there.  A surfside beach is just one of the many things Myrtle Beach has to offer. A South Carolina coastal location also stands for ideal weather many months every year.  That is one benefit no prospective buyer, re-locator, or investor should overlook. Not only surfers appreciate Myrtle Beach. It is also the American golf paradise. It is the dream of every golfer to take that ballgame to the incredible golf courses at Myrtle Beach.  Myrtle Beach stands for a 60 mile shoreline with unlimited vacation possibilities.

Once you are as they say “over the hill” it is time to consider the future.  Do you see yourself living  in the same area as where you are now once you reach retirement age? Even if you answer affirmatively, don’t you think you want to break loose from time to time and spend some time near a surfside beach? But why would you want to wait to explore your retirement options until the moment you retire? There are some great opportunities that you can start considering now, and the benefits of that are of a nature you will not regret.

Even if you are in your thirties or forties and are undetermined about how and where you want to be once you retire, you will not regret looking into purchasing Myrtle Beach real estate. Rental properties near a surfside beach are easy to rent out short term. You and your family can enjoy staying at your property in between renters. Your kids can build sand castles and go swim.

Maintenance of a property like those in Myrtle Beach is generally quite simple and can easily be outsourced to one of the high qualified property managers. The property manager of your choice can also provide you with carefully screened short term renters. The income that is generated that way will take care of most or all of the financial responsibilities, including a mortgage. By the time you reach retirement age the property can be paid for with the revenues. As a bonus, you will remember great family vacations that did not cost you an arm and a leg.

By Benny Godwin | Posted in Real Estate | Tagged | Comments Off