Entries for the 'Real Estate Resourcing' Category
LOOKING FOR REHAB INVESTOR – $20K Cash + 680 Credit Score
March 5th, 2009 categories: Real Estate Resourcing
I picked up a brochure the other day from a mortgage company catering to Re-Hab Investors. The terms are as follows:
They will fund the purchase price, all rehab costs and closing costs SO LONG AS all of those costs don’t exceed 75% of the final appraised value. There are 2 appraisals done – One at the Purchase and One at the time of the Take Out Loan.
Pre-qualification is for both the Re-Hab Loan and the Take-out Loan (permanent financing once repairs are done). To be eligible for the Re-Hab portion of the loan, you must have at least $20,000 in available cash assets and a 680 Credit Score. The Permanent Loan generally follows FNMA guidelines.
You are your own contractor and up to three draws can be taken during the 90 day Re-Hab period.
Obviously, I am not guaranteeing these terms as this is the information that I was told from the loan officer … but thought I’d pass it on as good information. For more information, email and I will give you the referral.
We have a listing that would be great for this type of loan. To see it, Click Here.
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Who Wins with Obama’s New Homeowner Plan?
February 24th, 2009 categories: Real Estate Resourcing
1. Those who want to refinance their home to take advantage of lower interest rates but have been refused because their home value has declined and does not meet the lender’s required Loan to Value Ratio.
2. Those who have a reduced income flow and are “at risk of imminent default” (e.g., either they are already delinquent or can show that they can not pay their current mortgage) may qualify for a loan modification (reduction in interest rate and/or principal).
3. New Homebuyers (e.g., first time homebuyers or those who have not purchased a home in the last 3 years) may qualify for a $8,000 Homebuyer Tax Credit.
For more details, check out the following articles:
First Time Homebuyer Frequently Asked Questions
We specialize in helping both new homebuyers and those who are in trouble. Give us a call at 830-995-2511 and we’ll see what we can do for you.
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WHAT’S IN DEMAND – LOW RENT HOMES – OPPORTUNITIES FOR REAL ESTATE INVESTORS
February 13th, 2009 categories: Real Estate Resourcing
Everyone knows that the market is soft right now – BUT where are the opportunities out there? We’ve discovered a high demand market by accident.
A little over a year ago, we bought a home and totally renovated it, thinking that there was a void in the $150K-$175K price range in our town which our investment would fit right into. Unfortunately, the market slowed and that category of buyers was hurt the most … so onto the rental market it went. We started out at $1150 per month and are currently at $950.
What has been interesting to me is the number of calls that we have gotten (and I mean A LOT!) from people who are looking for rentals in the $500-$750 range. Our general rule of thumb is that a tenant must make at least 3 times the rent … So that would require that their wages be at least $1500-$2250 per month. That’s an annual salary of $18,000 to $27,000 per year. Depending on the family size, that’s pretty close to the poverty level.
2008 Poverty Guidelines are $10,400 for a family of 1 person, $14,000 for a family of 2, $17,600 for a family of 3, $21,200 for 4, $24,800 for a family of 5 (SOURCE: Federal Register, Vol. 73, No. 15, January 23, 2008, pp. 3971–3972).
Kindof a sad situation … as many of the people were hard working people … who I would not have a problem renting to if they just made more money. The truth is that everyone needs a home to live in.
So, how does one meet this niche market that is in demand? In my way of thinking:
For a $750 per month rental, an investor who wanted to start out at “break even” would need to have between $83,000-$93,000 total investment in a home. (I divided $750 by a factor of 8 and 9 which covers the range of what monthly Principal, Interest, Taxes & Insurance should cost depending upon whether you are in the city or out, tax rates, mortgage rates, etc. That does not take into consideration the tax benefits of investment property so it’s a safe number to work with).
For a $500 per month rental, the “break even” for total investment would need to be between $55,000-$62,500.
We currently have TWO properties that, in our opinion, meet Investor Criteria:
1. 733 Broadway, Comfort, Texas. Purchase Price: $40,900. This is a 2 bedroom 1 bath home with good “lines” and very much worth renovating. It’s only 2 blocks from High Street. It is in the flood plain and it did flood several years ago. You can see the water lines at about the 3-4″ mark. Suggested repairs, in order of priority are as follows: it needs to be “raised” (it’s pier and beam and very “doable”), the porch is in disrepair and likely needs to be reconstructed, and and the interior (e.g., flooring, kitchen, etc) also needs to be renovated. It’s your call on finish out (varying from minimal for a rental or higher grade to live in). In our opinion, it likely could rent for $600-$700 per month which would allow between $25,000 – $35,000 worth of renovations.
2. 201 Post Oak, Comfort, Texas. Purchase Price: $38,500. This is a one room building with a 1/2 bath. It’s on a slab, has a central heat and air unit, a metal roof and it’s in a neighborhood where the homes sell in the $95K+ range. It’s clean (fresh paint, flooring, vanity, and light fixtures) and it’s very expandable. There is a former closet area that could easily be converted to a small kitchen, the bathroom needs a shower added, and 2 bedrooms could be added easily by just extending the back of the building by about 15′. Basically, you would need to double the space if you want to add bedrooms. For a $600-$650 rental, a person could invest another $25,000 – $35,000 into it. Call for more information. Broker/Owner 210-535-9463.
Rental Investments are a great way of creating monthly cash flow and low priced homes of this nature are very hard to come by. If you have interest, give us a call and we’d love to show you either one of these homes, or both. We encourage you to do your own financial analysis as we do not guarantee that these returns can or will be realized by any one.
We think you’ll be pleasantly surprised though. Don’t miss this opportunity to invest in Comfort, Texas, the “First TRUE Small Town West of San Antonio.”
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DO YOU WANT TO AVOID FORECLOSURE? NEW LOAN MODIFICATION PROGRAM ANNOUNCED
November 11th, 2008 categories: Real Estate Resourcing, Uncategorized
The federal government announced new regulations to take effect December 15th to help troubled homeowners by speeding up the process for renegotiating thousands of delinquent loans held by Fannie Mae and Freddie Mac.
To qualify, borrowers would have to
- Be at least three months behind on their home loans
- Need to owe 90 percent or more than the home is currently worth
Investors who do not occupy their homes and those who have filed for bankruptcy are excluded from this plan.
Borrowers would get help in several ways:
- The interest rate could be reduced so that a homeowner would not have to pay more than 38 percent of their income on housing expenses
- The loan could be extended from 30 years to 40 years
- Some of the principal amount could be deferred interest-free
We can help you negotiate a loan modification or forbearance plan, help you find a quick buyer for your property and/or work to negotiate a short sale solution with your current Lender. Fill out the form below and we’ll help you determine which scenario you can qualify for.
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HUD IS OFFERING $100 DOWNPAYMENT INITIATIVE ON HUD HOMES
November 4th, 2008 categories: Real Estate Resourcing
It’s a great time to Purchase a HUD Home with FHA financing!
HUD is offering a $100 Down Payment Initiative for owner occupants purchasing a HUD Home with FHA financing (with full price offers). This incentive is also available to owner occupant purchasers who obtain a FHA Home Repair loan (203K).
You must have a registered broker/agent in order to put a bid on a HUD home … so once you find one that you are interested in, give me a call and I can not only show you the house but help you through the entire process.
Here is the link to search for HUD homes.
Remember, Don’t forget to take down my phone so you can find your way back once you’ve found a HUD home your interested in!
Happy HUD Hunting!
Julie Kathryn Quest-Brooks
210-535-9463
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Daylight Savings Time Ends on November 2nd
October 28th, 2008 categories: Real Estate Resourcing
Beginning Sunday morning, it’s going to be lighter earlier and darker earlier as the clock will “Fall Back” one hour due to the end of Daylight Savings Time.
Personally, I enjoy what feels like a longer day and tend to think that is the REAL time? NOT SO!
Daylight Savings Time is the modified time as clocks are advanced during the Spring to add more daylight in the afternoon and then are returned back in the Fall. The changing of the clock for Daylight Savings began after World War I as a wartime production-boosting device and has continued since that time in some fashion.
SO, DON’T FORGET TO CHANGE YOUR CLOCKS ON SUNDAY MORNING! FALL BACK ONE HOUR!
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Why Aren’t Buyers Buying?
October 14th, 2008 categories: Real Estate Resourcing
Here’s a REALLY interesting article explaining why Buyers aren’t buying:
Can’t Anyone Afford My Home?
Money Money Magazine’s Stephen Gandel and Amanda Gengler, Sept 24th, 2008
Prices have dropped. A lot. But it’s still surprisingly hard to find buyers.
(Money Magazine) — Maybe you’ve started thinking that now you can finally find a buyer for your house. After all, this summer the National Association of Homebuilders asserted that houses were more affordable than at any time during the previous four years. Prices have slid so far that many homes are now within the reach of people who couldn’t buy during the bubble.
Other faintly cheery facts have emerged too. Sales of existing homes were 3% brisker in July than June, and in several metropolitan areas – among them Boston and Denver – the market seems to be turning around.
When examined closely, however, those glimmers of better times ahead seem to fade. Sure, lower prices can help you sell, but you also have to know whether there are enough people who can afford to pay the price you want.
That, in turn, depends on a mix of factors including the financing that buyers can get, whether there are enough of them who want to live where you do, their other housing options and how they feel about investing so much in an asset whose future appreciation is iffy.
“Price is just one of many variables that go into a decision to buy a house,” says real estate analyst Michael Larson of Weiss Research, a Jupiter, Fla. investment newsletter publisher. “Many other factors are overriding price right now. That’s why the market remains challenged.”
The long fall
Price, though, is still the primary measure of affordability for any buyer. And while the median price for an existing house has tumbled 8% from $230,100 to $212,400 since its peak in 2006, according to the National Association of Realtors, many potential buyers still see asking prices as expensive.
And they’re not wrong. That $212,400 house, after all, costs 39% more than it did back in pre-boom 2001 when it sold for about $153,100. Prices in red-hot markets such as Miami became even more inflated during the boom and are still up about twice as high as they were in 2001.
So while homes are selling at a discount, they’re not on clearance – not yet anyway. Peak to trough, the median-priced home nationwide is projected to fall as much as 20%, bottoming out around $185,000 by late 2009, according to a July report from Wachovia.
“Houses may be more affordable, but they will probably be even more affordable next year,” says Nigel Gault, chief U.S. economist at Global Insight, an economic forecasting firm. “So why buy now?”
Crunched credit
The price may be right, but if buyers can’t borrow enough, the house isn’t affordable. Difficulty borrowing is keeping many Americans from buying. “The industry went from little or no credit standards to credit standards on steroids,” says Marc Savitt, president of the National Association of Mortgage Brokers.
According to the Federal Reserve Board, about 85% of lenders, worried about falling prices and rising foreclosures, have stiffened requirements for borrowers in the past three months. Those with a credit score of 600 or lower cannot get loans at all, says Keith Gumbinger of HSH Associates, a mortgage information publisher.
The upshot: 21 million, or 13% of those who have credit records, many of whom would have qualified for mortgages during the bubble, can no longer do so.
Those whose credit scores are high enough to qualify for a mortgage will likely pay more. Fannie Mae and Freddie Mac, which set the lending criteria for most loans, in November will require a 740 score, up from 680 for buyers to escape a surcharge that ultimately increases their interest rate.
As a result, the 33 million Americans whose scores fall between 680 and 740 (roughly 20% of adults with credit histories) may have to pay half a percentage point more to borrow. On a $300,000, 30-year loan, that would add about $100 to a buyer’s monthly payment.
Adios, easy money
Back in the go-go years, lenders fell all over themselves to make no-down-payment loans. Those are gone, and lenders want some skin in the game, at least 5%. But to avoid paying extra, most buyers need the full 20% demanded in days of yore. To buy a $400,000 house, a family would now have to amass $80,000 in cash, up from $20,000 or less a few years ago.
Buyers also face higher interest rates, which allow them to borrow less. In mid-2004 a borrower with good credit could have qualified for a rate of 5.87% on a 30-year fixed $300,000 loan. That translates to a monthly payment of $1,774. Now, with the rate for the same loan at 6.57%, the same monthly payment could support a loan of just $278,500.
Back in the day, option ARMs and other exotic mortgages with low teaser rates helped struggling purchasers stretch to buy houses that they could not otherwise afford. Those deals have largely disappeared.
And while banks once allowed a homeowner’s monthly principal, interest, taxes and insurance (PITI) to make up as much as 45% of a family’s before-tax income, now buyers are restricted to using only 32% for a house payment. If PITI rises beyond that limit, banks consider the loan unaffordable and the family cannot receive a mortgage.
That limit boosts the amount of income a homeowner needs to purchase. Say your house has dropped from $425,000 to about $395,000. A couple of years ago a family needed an income of only $80,000 to buy. Now, even though the house costs less, a prospective buyer must have an income of $92,000.
Less expensive options
Rental prices are looking good in many areas. Christopher Mayer, a Columbia University real estate professor, recently found that in 11 of 16 top cities, renting is a better deal compared to buying than it has been historically.
The extra expense of owning was offset by rising house values – at least a few years ago. Now that new buyers can no longer count on steep appreciation, they have less incentive to buy.
And it’s not as if rents are standing still while your house’s price falls. “Competition from vacant houses or condos that people can’t sell is driving down rental rates,” says Hessam Nadji, managing director of research at Marcus & Millichap Real Estate Investment Services in Encino, Calif.
The big pinch
A house is only affordable if a homeowner can meet its monthly payment and have enough left over to live on. Incomes rose by about 5% in the first half of the year, but few people feel as though they’re better off.
Americans spent an extra $165 billion, or 26% more, on gasoline and oil in the first six months than over the same period last year, and food bills rose by 7%. Without a doubt, most Americans feel pinched.
If you live in an area dominated by financial companies or car makers, two sectors shedding jobs in the current downturn, you may encounter even less appetite to buy.
If the economic turmoil continues, vacation destinations like Las Vegas or Orlando could suffer a drop-off in business that would leave prospective buyers with less in their pockets.
“Not only is the amount of money people have to spend on housing in decline but because a house is a risky asset, the amount they want to spend on it is falling too,” says Michael Englund, chief economist at Action Economics, a forecasting firm.
Buyers being wary
That fear may be the biggest obstacle keeping buyers from knocking on your door. During the boom, people were willing to spend as much as they did on housing because they thought that they were putting away money for retirement or college. And they could draw on their equity for renovations or other goodies.
If homes rose in value faster than stocks, as they did for a few years, homeowners could console themselves that forgoing 401(k) contributions for high mortgage payments was a sensible strategy.
Few these days think of real estate as a safe place to invest, however. According to Gallup, only 27% of the population believe a home is their best long-term investment, down from 50% in 2002.
“Nearly a quarter of potential buyers are on the sidelines waiting for some form of encouragement,” says Walter Molony, spokesman for the National Association of Realtors. Maybe they’re looking for some sign that houses have truly become more affordable. The price declines haven’t done that yet.
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HOW TO SAVE MONEY ON YOUR PROPERTY TAXES
September 18th, 2008 categories: Real Estate Resourcing
Do you want to lower your property taxes and your overall housing budget?
Well, if that’s your goal, you might want to consider relocating to an area where property tax rates are lowest. Here’s a chart of the current (2007) tax rates in various locations within Kerr, Kendall and Gillespie Counties along with an estimation of what taxes would run for a $150,000 Home (no exemptions):
(Compiled from data provided by Kerr, Kendall and Gillespie Appraisal Districts)
Here are a few things to take note of:
The cheapest places to live (in terms of property taxes) in these three counties in the Hill Country is Outside the City Limits, in Kerr County, in the Divide ISD. If that isn’t where you want to be, check out the following list (moving from the lowest property taxes to the highest):
Top 10 Best Places to Live in Kerr, Gillespie and Kendall Counties
(If You Want To Save on Property Taxes)
- Kerr County in the Divide ISD
- Gillespie County in the Doss ISD
- Gillespie County in Harper ISD
- Kerr County in Medina ISD
- Kerr County in Harper ISD
- Kerr County in Hunt ISD
- Kerr County in Center Point ISD
- Kendall County in Comfort ISD
- Kerr County in Kerrville ISD
- Kerr County in Ingram ISD
All of these are outside any city limits.
If being far out of town is not what you are looking for, you’d be smart to look for a home close to town but just outside the city limits. Your savings on a $150,000 home would be as follows: $825 per year just outside of the Kerrville city limits, $663 per year just outside the Boerne city limits, and $362 per year just outside of the Fredericksburg city limits.
If being “In Town” is important to you (e.g, my definition of being “in town” is that it at least have ONE grocery store), Comfort has the cheapest property taxes, followed by Fredericksburg, Kerrville and Boerne, in that order.
Obviously, property taxes is just one element in the housing budget and may or may not be a determining factor in your choice of a home. Please let us know what is important to YOU and we’d love to help you find your “Hill Country Home.” Ask for Julie or Buddy, 830-995-2511.
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New County Inspections Required on Residential Construction Outside City Areas Beginning September 1, 2008
August 29th, 2008 categories: Real Estate Resourcing
Here is a news release from the Texas Residential Construction Commission about the new inspections required on new and remodeled construction projects outside of incorporated areas. 3 inspections are required by fee inspectors.
The purpose: “These inspections will provide homebuyers in unincorporated areas or in cities that do not offer municipal inspections with the protection that their home was constructed with the same standards as a home within city limits.”
Not sure how true that is … Better standards to protect home buyers or just more government? I’d love to hear your comments.
| FOR IMMEDIATE RELEASE | CONTACT: Claudia Perez or Magelly Castiblanco | |
| DATE: August 29, 2008 | (877) 651-8722 | |
| New Home/Remodeling County Inspection Program Law Takes Effect September 1 Inspections designed to catch problems before homebuyers move in |
(AUSTIN) — Starting Labor Day, builders and remodelers must have the fruits of their labor inspected at least three times, if the project does not require inspection by a city building official.
House Bill 1038, passed by the 2007 Legislature, created a County Inspection program for all homes built or remodeled if the work was performed in unincorporated areas or in cities that do not offer municipal inspections. In anticipation of the program’s Monday start date, the Texas Residential Construction Commission has been designing the program rules and signing up fee inspectors.
The three new inspections include a foundation inspection before concrete is poured, a framing and mechanical systems assessment before wallboard is installed and a final inspection upon completion.
The inspections must be performed by a fee inspector that is either a licensed engineer, a registered architect, a professional Texas Real Estate Commission inspector or a third party inspector certified by the Texas Residential Construction Commission. To access a list of fee inspectors that have already registered with the commission, visit http://cics.trcc.state.tx.us/login.aspx.
Commission Executive Director Duane Waddill said the new program works toward providing quality construction for Texans by bridging an oversight gap that, until now, existed for new homes or remodeling jobs where the home had no city inspector obligated to evaluate the work.
“This program will ensure that inspections are performed throughout the state of Texas, leveling the playing field for consumers. These inspections will provide homebuyers in unincorporated areas or in cities that do not offer municipal inspections with the protection that their home was constructed with the same standards as a home within city limits,” Waddill said.
For more information about the county inspections program visit the commission’s website at www.texasrcc.org or contact us at 877-651-8722 (TRCC).
If you are thinking about building in the Hill Country and would like more information about these guidelines or help finding a lot or even evaluating new vs. existing construction, please give us a call. We’d love to work with you. 830-995-2511.
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STAGING SERVICES – TEXAS HILL COUNTRY & SAN ANTONIO
August 14th, 2008 categories: Real Estate Resourcing
IN A SOFT MARKET, HOMES NEED THAT EXTRA EDGE TO GET SOLD!
Because there is so much competition, it is necessary to go that extra mile to make listings really shine. Homes need warmth and a little “pop” to draw buyers in and give them a reason to purchase it. The purpose of staging is to emphasize the positives and play down the negatives and to give a buyer a “visual” of what a home would feel like at its best. Staging dramatically helps showings and brings in more offers.
Many people are staging their homes prior to putting the home on the market to take advantage of the optimal time that a house enters the market. See my recent blog post:
HILL COUNTRY HOME SELLERS: WHY YOU ARE GIVING AWAY YOUR PROFITS?
Others are waiting to stage the home when the house stays on the market without offers! The cost/benefit test for whether or not to stage a home at this point is easier: “Is the investment in Staging less than the price reduction necessary to bring the property back in favor so as to get it SOLD?”
Most often the answer to that question is YES! Right now price reductions in the Hill Country/San Antonio area that are actually having an impact are in the $7,500-$10,000 range (based on a $150K-$200K home). As a Realtor who watches the market regularly, I have been seeing even $20,000+ price drops on $150k-$200k priced homes. There’s a lot of competition out there and homes really need to be “top notch” in order to get attention!
As a real estate stager, I work with both Sellers and Real Estate Agents. I am a licensed real estate agent working in the hill country market; however, when I work for other agents, I add a non-compete provision in my standard agreement providing other real estate agents with the assurance that I will not go after their listing. I have the following accreditations: I am a Home Staging Expert (centerstagehome.com) and an Accredited Staging Realtor (stagedhomes.com).
My fees are as follows:
Furnished Homes (under 2000sf):
$1000 for: Consultation, Home Analysis and Staging Labor, payable ONE-HALF IN ADVANCE, ONE-HALF UPON COMPLETION. If extra accessory/furniture items are needed, I charge an extra $100 per hour for my time. I can give an estimate as to how long that will take. I am a frugal buyer .. so it’s worth it for me to buy what you need! A purchase account will have to be established for those purchases as set out below.
Unfurnished Homes (under 2000sf):
$2000 for Consultation, Home Analysis, Purchasing and Staging Labor, payable ONE-HALF in advance, ONE-HALF upon completion.
PLUS A Purchase Account to be deposited into a VISA type card for items to be purchased for staging. A realistic estimate for a budget for a 1500-2000 sf home using medium quality new or good quality used furniture is $5000. This would pay for only the absolute necessities to stage a living room, kitchen, master bedroom, 2 baths, and 2 extra rooms. All rooms in a home do not have to be staged … only the main ones and any that don’t have a clear function. I will try my best to work within a homeowner’s budget buying only the most important items based on my evaluation of the home. With the budget, I will shop for the best buys of furniture, delivery, accessories and plants. The Purchase Account Card will give an absolute accounting of the items purchased (although I will also prepare a written accounting too).
Other Terms:
I will need approx. 1 week to gather and stage a vacant house, several days for a furnished home.
I prefer to work alone (or with my own assistant).
I will require that a short agreement be signed by all of the parties which will define what I will do, the payment terms and give me permission to actually stage the home.
With regard to the actual furniture once the home is sold, the seller can: Include the furniture with the home (which helps sell it) or sell the furniture afterwards to a Consignment Store bringing about approximately a 20% cost recovery (This is not a guarantee, just an estimate of what you might get). If you want to really be creative, you also can put purchase prices on the furniture for people to see during showings. Agents will often contact you (and put their names on lists to purchase the items) if they are priced right.
If you are interested, give me a call. Julie Quest-Brooks 210-535-9463.
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