Friday, April 23, 2010
Tuesday, March 16, 2010
Buying an Investment Property
What does it take to become a Real Estate investor? Lots of Money? Construction knowledge? WE BUY HOUSES signs to put on every street corner? Cash to buy a sweet deal at an auction? The answer to all of the above is NOT NECESSARILY.
While the days of stated income -which allowed anyone with a pulse to get a mortgage- are over, there are still opportunities to become an investor without having 20% down and years of experience. One of the best places to be right now, is as an apartment dweller/renter/living with parents, etc. SERIOUSLY! If you have a steady source of income (most likely in the form of a j-o-b), a modest savings (about 5% of the purchase price for Down Payment & closing costs), decent credit, an good idea of your budget, and plan to stay in your next home for at least 3 years-you're off to a great start. With the help of an agent with an investment mindset (I happen to know a great one) you can begin your career as an investor and have someone coach you along the way-FOR FREE!
What's the first step-- MAKE YOUR MOVE! One of the worst mistakes you can make is to wait until "we hit the bottom of the market." FYI, you only know when the market hits bottom by the fact that prices are now INCREASING-then you've missed the bottom. Prices are great right now, sellers are motivated, and the government is GIVING you money to get started (if you qualify). Also--waiting for interest rates to decrease or waiting to save 20% down while paying $800/mo ($4800/yr) in rent isn't the wisest idea for many people either.
Once you know you're ready to quit thinking and start doing, you should consider that an investment mindset can be entirely different from the average homeowner. Many homeowners buy a home that makes them happy and fits their needs. An investor buys a home thinking about the probability of profitability. Some things to consider are future values, current cash flow (or potential cash flow), future rents, current equity (or potential sweat equity). A qualified real estate professional can help you determine some of these facets.
For example, a duplex might not be appealing to the average home buyer, but if you're looking for investment potential, you can make sense of a home as seen in the following example:
Purchase Price- $75000
(Min) Down Payment-$2625, Loan Amount- $72375
at 5% interest on a 30 year note, your payments will be close to $388.52. (not including taxes and insurance-with an estimate of $1000 each, this brings payments to $555.19).
On this particular example, each 2bdrm/1bath unit currently rents for $550. If you live in one side, you can possibly get FHA financing (which allows the lower down payment) and the tax credit- and get $550 from your neighbor-bringing your monthly mortgage payment to.... $5.19!!!!! .
Then, after your minimum of 3 years (if you take the tax credit) of living here, you can decide to rent out your side, hire a management company if you would rather not be a landlord, and make 205% Return on your investment- NOT COUNTING THE $8000! -with a low risk asset and little work, you can be on your way to building a real estate portfolio.
If you prefer to live in a single family home, then you can do the same thing with a detached garage apartment, guest house, or basement apartment without sharing the same building.
This is just one example of how you can get started in Real Estate investments by taking advantage of today's opportunities. If you would like more information, or a FREE personal consultation to discuss your options. Contact me today at 423-521-0071 or info@carahicks.com.
Click here to search for available homes or for more info
While the days of stated income -which allowed anyone with a pulse to get a mortgage- are over, there are still opportunities to become an investor without having 20% down and years of experience. One of the best places to be right now, is as an apartment dweller/renter/living with parents, etc. SERIOUSLY! If you have a steady source of income (most likely in the form of a j-o-b), a modest savings (about 5% of the purchase price for Down Payment & closing costs), decent credit, an good idea of your budget, and plan to stay in your next home for at least 3 years-you're off to a great start. With the help of an agent with an investment mindset (I happen to know a great one) you can begin your career as an investor and have someone coach you along the way-FOR FREE!
What's the first step-- MAKE YOUR MOVE! One of the worst mistakes you can make is to wait until "we hit the bottom of the market." FYI, you only know when the market hits bottom by the fact that prices are now INCREASING-then you've missed the bottom. Prices are great right now, sellers are motivated, and the government is GIVING you money to get started (if you qualify). Also--waiting for interest rates to decrease or waiting to save 20% down while paying $800/mo ($4800/yr) in rent isn't the wisest idea for many people either.
Once you know you're ready to quit thinking and start doing, you should consider that an investment mindset can be entirely different from the average homeowner. Many homeowners buy a home that makes them happy and fits their needs. An investor buys a home thinking about the probability of profitability. Some things to consider are future values, current cash flow (or potential cash flow), future rents, current equity (or potential sweat equity). A qualified real estate professional can help you determine some of these facets.
For example, a duplex might not be appealing to the average home buyer, but if you're looking for investment potential, you can make sense of a home as seen in the following example:
Purchase Price- $75000
(Min) Down Payment-$2625, Loan Amount- $72375
at 5% interest on a 30 year note, your payments will be close to $388.52. (not including taxes and insurance-with an estimate of $1000 each, this brings payments to $555.19).
On this particular example, each 2bdrm/1bath unit currently rents for $550. If you live in one side, you can possibly get FHA financing (which allows the lower down payment) and the tax credit- and get $550 from your neighbor-bringing your monthly mortgage payment to.... $5.19!!!!! .
Then, after your minimum of 3 years (if you take the tax credit) of living here, you can decide to rent out your side, hire a management company if you would rather not be a landlord, and make 205% Return on your investment- NOT COUNTING THE $8000! -with a low risk asset and little work, you can be on your way to building a real estate portfolio.
If you prefer to live in a single family home, then you can do the same thing with a detached garage apartment, guest house, or basement apartment without sharing the same building.
This is just one example of how you can get started in Real Estate investments by taking advantage of today's opportunities. If you would like more information, or a FREE personal consultation to discuss your options. Contact me today at 423-521-0071 or info@carahicks.com.
Click here to search for available homes or for more info
Thursday, February 25, 2010
Tax Credit Reminder from Jax
Tuesday, February 23, 2010
Thursday, February 11, 2010
Thinking about Buying a Home. Read here to get started
You're considering buying a home and you're ready to hit the roads and a house. While driving around can be a fun adventure, doing a little prep work beforehand can get you started off on the right path to getting the best home for your needs, and avoiding home-shopping burnout.
Buying a home can be a complicated process-even for repeat buyers. Many people don't realize that you can actually hire a personal assistant to walk you through the process for FREE. That's right, you can have someone that will answer your questions such as the ones listed below:
- Is renting or buying better for you?
- How much can you really afford?
- How to qualify for a mortgage.
- How much cash you should put down.
- What it takes to get approved for financing. What banks & other lending institutions are looking for.
- How much your payments will be.
-What current Tax Advantages and other incentives are available.
And any other question you may have...
As a Realtor, it's my job to simplify the process. I can assist you with the home buying preparation, and once we identify your ideal home needs, I can show you any house that is currently listed-no matter which company/Realtor has the house for sale.
Once we find the right house and you're ready to make an offer, I can help you prepare a fair offer & negotiate on your behalf and guide you through the closing process to make sure you get the most out of your experience.
Contact me today if you're thinking about buying now or in the future, have any questions, or if you would like to set up a free consultation.
Also, I'm never too busy for referrals. If you have friends, family, or coworkers that could use help buying, selling, or renting a home- I would love to have the opportunity to serve them.
Buying a home can be a complicated process-even for repeat buyers. Many people don't realize that you can actually hire a personal assistant to walk you through the process for FREE. That's right, you can have someone that will answer your questions such as the ones listed below:
- Is renting or buying better for you?
- How much can you really afford?
- How to qualify for a mortgage.
- How much cash you should put down.
- What it takes to get approved for financing. What banks & other lending institutions are looking for.
- How much your payments will be.
-What current Tax Advantages and other incentives are available.
And any other question you may have...
As a Realtor, it's my job to simplify the process. I can assist you with the home buying preparation, and once we identify your ideal home needs, I can show you any house that is currently listed-no matter which company/Realtor has the house for sale.
Once we find the right house and you're ready to make an offer, I can help you prepare a fair offer & negotiate on your behalf and guide you through the closing process to make sure you get the most out of your experience.
Contact me today if you're thinking about buying now or in the future, have any questions, or if you would like to set up a free consultation.
Also, I'm never too busy for referrals. If you have friends, family, or coworkers that could use help buying, selling, or renting a home- I would love to have the opportunity to serve them.
Monday, February 8, 2010
Free Job Training-Green Designation Course
Urban League of Greater Chattanooga is offering a new green construction and weatherization training that leads to the nationally recognized Green Advantage Certification.
At the completion of the 10-week program, participants will have three certifications: Lane Control & Flagging, OSHA 10 and Green Advantage. This can be valuable to individuals who have an interest in pursuing a career in green construction. More information about the Green Designation can be found here.
Limited space is available in the class. Applications must be received by Feb. 12th & will be subject to a selection process. Classes start Monday, February 15th & will be held in the evenings from 5:30-7:30p. Funding for the class is provided by the Government Economic Stimulus program, so there is no cost to attend.
Participants must be bondable and preference will go to individuals who are 18 or older and experiencing barriers to employment. Participants must have a high school diploma or GED.
Apply for the program in person at the Urban League of Greater Chattanooga, 730 M.L. King Blvd., Chattanooga, TN 37403. Call Julia Anderson at 756-1762 for information.
At the completion of the 10-week program, participants will have three certifications: Lane Control & Flagging, OSHA 10 and Green Advantage. This can be valuable to individuals who have an interest in pursuing a career in green construction. More information about the Green Designation can be found here.
Limited space is available in the class. Applications must be received by Feb. 12th & will be subject to a selection process. Classes start Monday, February 15th & will be held in the evenings from 5:30-7:30p. Funding for the class is provided by the Government Economic Stimulus program, so there is no cost to attend.
Participants must be bondable and preference will go to individuals who are 18 or older and experiencing barriers to employment. Participants must have a high school diploma or GED.
Apply for the program in person at the Urban League of Greater Chattanooga, 730 M.L. King Blvd., Chattanooga, TN 37403. Call Julia Anderson at 756-1762 for information.
4 Reasons to Sell Your Chattanooga Home Now
4 Reasons to Sell Now
Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.
* Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
* Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
* Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
* Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
Click here to see original article-REALTOR® Magazine-Daily News-4 Reasons to Sell Now
Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.
* Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
* Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
* Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
* Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
Click here to see original article-REALTOR® Magazine-Daily News-4 Reasons to Sell Now
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