Coming up with a down payment can certainly be the hardest part about being able to afford a new house, especially if this is your first home. However, there are more than just a couple of was you can do this. We'll take you through the top 10 ways according to MSN. com that will enable you to come up with that down payment.
1. Ask for help. Parents, friends and relatives may be willing to give you a loan with favorable rates- with parents, that often means no interest rate, and no strict time frame. If a loan (or gift) doesn't seem feasible maybe the would be willing to co-sign the loan.
2. Use your other assets- either by selling them, or by borrowing against them. This can include things like cars, boats, bicycles, as well as stocks, or trinkets, such as heirlooms, or vintage trading cards.
3. If you have life insurance with any built up value, you could cash in that value, or possibly borrow against it.
4. If you are a first-time home buyer, you can take up to $10,000 from your IRA, penalty free, to put toward your home purchase.
5. You can also borrow against your retirement funds.
6. Sometimes, you can get help from a non-profit organization, such as a church. There are loans out there that will let you put a lower down payment down if a non-profit organization puts in part.
7. Increase your income - you can do this by getting a second job, or doing some freelance work.
8. If you can make it work, change your withholding taxes in anticipation of being able to deduct the interest. This will give you more take-home pay, which you can start saving!
9. Offer to give something other than cash for a down-payment. This could include offering the seller something like a car or a boat in lieu of the down payment, or it could be services; for example, you could offer to do some landscaping in the person's new home, or give them automobile services, or do their taxes!
10. Finally, you can look for options that don't require a large down payment. such options include loan programs such as VA or FHA. Another option is to purchase a foreclosure property, which can often be had with little or no down payment. You can also consider getting an 80:20 loan, where you essentially have two loans; one is the regular mortgage on the property and the other is a loan for the down payment- even though these are separate loans, they often come from the same lender.
Article from househunt.com
Monday, October 25, 2010
Wednesday, October 20, 2010
Increase Home Values : Easy & Cheap Improvements
10 Residential Renovations that Reap Rewards
Whether you are selling or dwelling, home improvements can add a pretty penny to the bottom line or can help you fall back in love with your abode. There are plenty of inexpensive tricks that can provide some incentive to perk up your investment, without a complete overhaul. We have compiled a list of the top 10 boosters to get the beautification process rolling.
1. Modernize the Mess Hall
As the hub of the family interaction, the kitchen is the heart of the home. Brighten the cabinets with a fresh coat of paint or some updated hardware. Add a new faucet or light fixtures to rejuvenate the space or change the window coverings for a more modern feel. Buyers are always interested in the kitchen, so try a quick face lift that will turn up the heat on your bottom line.
2. Spa Sparkle
Shine up the bathroom to offer a clean and calming spa-like refuge from the daily hustle. A quick fixture change, a new toilet seat and fresh accessories can be all you need to brighten up the bathroom. the bathroom is the second in line tot he kitchen to potential buyers, so use a discerning eye. A fresh coat of grout in the shower or maybe even a new prefabricated tub can do wonders. Open up the space with a pedestal sink and lay new vinyl sheeting or individual tiles right over your existing floor to inexpensively revive the floor.
3. Ardent Appliances
Hopefully the avocado green electric stove is long gone, but if your appliances come in a variety of colors, it may look just as unsavory. Experts agree that a mismatched kitchen may leave a bad taste with buyers. If new appliances aren't in the budget look to re-facing. Some appliances doors can be flipped inside out for the opposite color. so all you need is a screwdriver to update. you can also request new fronts and tops from the manufacturers to create a more seam lined look.
4. Room Conversion
If you have an extra playroom or den, consider yourself in line for a windfall. When selling your home, increasing numbers of bedrooms can significantly increase your profits. the only difference is between a den and a bedroom is a closet; so invest in the storehouse to up the ante.
5. Machine Clean
Spruce up neutral carpets with a professional cleaning, brightening the room and clearing any unwanted odors or stains. If your carpet is blemished, try placing area rugs over the worn spots. It may seem like you are hiding the problem, but most experts agree that replacing the carpet for a House on the market isn't worth the investment unless it is in really bad shape.
6. Lighten up Your Life
Lighting can dramatically affect your mood, so brighten things up! Breezy window coverings allow you to control how much natural lighting you'd like to let in. a strategically placed table lamp or a dramatic chandelier can add character while making your rooms appear larger and more open.
7. Straighten Out Your Storage
Older homes present the ever present storage problem. Crate space by utilizing closet organizers or wire and laminate shelving in the pantry, closet and garage. Purging some old junk in the yard sale or through donations can remove clutter, while making the space look bigger.
8. Nut and Bolts
Potential buyers sometimes take a look under the hood o assess there amount of wear and tear a house had endured. Hiring a professional to check, fix and update electrical wiring and plumbing can confirm to the purchaser that your house is healthy inside and out.
9. Opportunity Knocks
Still opening the front door with a flimsy standard issue door know? Choose a hearty piece of hardware that emphasizes sturdiness, while a bold color says "look at me!" Refinish the front door with a bright hue or faux finish a steel door to look like wood for a refreshing first impression.
10. Groundwork
The front yard is the first thing that potential buyers see, so don;t miss out on your chance to pique their interest. focus on a clean cut, straighten up the lawn edges, freshen the landscaping and add some color spots or striking shrubs for impact.
Article from www.househunt.com
Thursday, October 7, 2010
5 Tips for Choosing a Neighborhood
You're not just buying a house, you're also buying a neighborhood. Sometimes, though, one resident's "neighborhood glories" are another resident's "neighborhood warts".
There is more to weigh than just crime, prices and commute.
4. The Internet can be a boon for researching the nitty-gritty. Neighborhoodscout.com, for example is a subscription service that offers in depth look at such considerations as crime statistics (for 17,000 law-enforcement jurisdictions), school performance data, and quarterly price-appreciation records of area homes. The service costs $ 29.99 a month or $14.99 for a six month subscription.
5. Some neighborhood characteristics can be hard to cram into numerical categories or scores. Nabewise.com has taken 65 "quality of life" characteristics and set them up as criteria for neighborhood-hunters. You can actually search for "trendy" or "clean" neighborhoods. Perhaps you want to live around liberals, or conservatives. Maybe you want to be near a farmers market, public transit, night life. Currently this company only does this for New York, Chicago, Boston and Los Angeles. More Cities are coming soon the company says.
Article from inmannews.com By Mary Umberg.
There is more to weigh than just crime, prices and commute.
1. The time of day when you first lay eyes on a prospective house can affect your impression of the neighborhood. Make sure to visit at various hours. A property can be totally different at night. The same can be said for neighborhood traffic, which can change dramatically at rush hour, or traffic ona Saturday can be completely different than on a Tuesday.
2. Neighborhood choice can be a pocketbook issue, and not just because of house prices and property taxes. Commuting costs, of both time and money are critical.
3. Ask questions of people who already live there. The locals usually freely offer their opinions of neighborhood safety, noise, school performance, commuting times, etc.4. The Internet can be a boon for researching the nitty-gritty. Neighborhoodscout.com, for example is a subscription service that offers in depth look at such considerations as crime statistics (for 17,000 law-enforcement jurisdictions), school performance data, and quarterly price-appreciation records of area homes. The service costs $ 29.99 a month or $14.99 for a six month subscription.
5. Some neighborhood characteristics can be hard to cram into numerical categories or scores. Nabewise.com has taken 65 "quality of life" characteristics and set them up as criteria for neighborhood-hunters. You can actually search for "trendy" or "clean" neighborhoods. Perhaps you want to live around liberals, or conservatives. Maybe you want to be near a farmers market, public transit, night life. Currently this company only does this for New York, Chicago, Boston and Los Angeles. More Cities are coming soon the company says.
Article from inmannews.com By Mary Umberg.
Tuesday, August 24, 2010
1% Flip Tax
http://money.cnn.com/2010/08/23/real_estate/home_resale_fee/
This resale fee is pretty interesting. I understand a fee for service or transfer fee from work performed. Banks charge an origination fee every time they do a loan. then again they assume the risk and have to process the entire loan every time they do it. Whatever you do, read the fine print, review the title report, and be sure to look at all informaton on the CC and R's.
This resale fee is pretty interesting. I understand a fee for service or transfer fee from work performed. Banks charge an origination fee every time they do a loan. then again they assume the risk and have to process the entire loan every time they do it. Whatever you do, read the fine print, review the title report, and be sure to look at all informaton on the CC and R's.
Monday, June 28, 2010
Foreclosures Still on the Rise:
Utah's foreclosure rate continue to climb in the first quarter to 3.43% , up from 2.36% a year ago during the same periods, according to the Mortgage Bankers Association. 19 other states posted higher foreclosure rates in teh fristy quarter compared to Utah, Nationally, the foreclosure rate rose to 4.63%, up from 3.85% a year earlier.
Tuesday, March 30, 2010
How Overpricing Kills Home Sales.
If there is one thing that will kill a sale- it is overpricing! Everyone know the logic, we think, "lets start high and then we can negotiate". Wrong! How can you negotiate when people are not willing to look at something that is overpriced?
Reasons overpricing will kill your home sale:
You WILL have fewer showings.
Less internet activity, fewer property tours, less activity.
It helps sell your competition.
Rather than having a bidding war, there are no offers to negotiate.
You are not creating VALUE in the eyes of a buyer.
Therefore, let's get serious and price it right. You will find that you are not following the market down. You save money in monthly payments. You take advantage of the low interest rates.
Like my Grandpa used to say, "Pigs get fed, Hogs get slaughtered." Don't be greedy but get what you can.
Reasons overpricing will kill your home sale:
You WILL have fewer showings.
Less internet activity, fewer property tours, less activity.
It helps sell your competition.
Rather than having a bidding war, there are no offers to negotiate.
You are not creating VALUE in the eyes of a buyer.
Therefore, let's get serious and price it right. You will find that you are not following the market down. You save money in monthly payments. You take advantage of the low interest rates.
Like my Grandpa used to say, "Pigs get fed, Hogs get slaughtered." Don't be greedy but get what you can.
Wednesday, March 24, 2010
Salt Lake 2010 Market Forecast
Between 2007 and 2008 home sales dropped 42 percent, falling from 15,300 homes sales to 8,800 home sales.
However, in 2009 home sales increased 9,100 sales, a 3 percent increase compared to 2008. The increase in home sales in 2009 suggests that 2008 was the bottom of the downturn. In 2010, as many as 10,000 homes could be sold in Salt Lake County, a nearly 10% increase compared to sales in 2009. Since the peak, single-family home prices have retreated 13%.
Local housing prices will continue their drift downward in 2010, falling another 3% to 5%, the report noted.
At the end of the fourth quarter, the median price of a single-family home in SL County was $222,000, down 13% compared to $255,000 at the peak of the market (third quarter 2007).
However, in 2009 home sales increased 9,100 sales, a 3 percent increase compared to 2008. The increase in home sales in 2009 suggests that 2008 was the bottom of the downturn. In 2010, as many as 10,000 homes could be sold in Salt Lake County, a nearly 10% increase compared to sales in 2009. Since the peak, single-family home prices have retreated 13%.
Local housing prices will continue their drift downward in 2010, falling another 3% to 5%, the report noted.
At the end of the fourth quarter, the median price of a single-family home in SL County was $222,000, down 13% compared to $255,000 at the peak of the market (third quarter 2007).
Thursday, January 14, 2010
Power of Curb Appeal
I had to laugh when I heard the following story from a good friend and investor client. He told me a story about his first investment property that sat on the market for 6 months with zero activity. "I never realized all I had to do was mow the lawn and give it a little curb appeal and waaalaaah! One lawn mow and it sold in a week!"
There is too many properties and too much competition. Your property must stand out whether it have better rents, more ammenties, and further more have curb appeal.
Here is a watered down version of my investor to do list.
There are four rules with investing in Residentail Real Estate
1. Curb
2. Kitchen
3. Baths
4. Sizzle features
Curb appeal captures buyers. First impressions are everything. It makes people want to stop the car. Over 90% of buyers find their home on the internet. If the front view of the house is not inspiring, they will NEVER get to your online property Tour. No matter what the inside of the home looks like, if the outside is not enticing, they will move on.
Curb appeal changes could include changing a front door, adding shutters, or even just mowing the lawn! Trim or remove trees or shrubbery, add a picket fence, or just add some water to the dead grass just do something. Be creative but keep in a budget. It is easy to go overboard on anything without a budget in mind.
Keys to curb appeal. Improve your buyers first impression of the home from the street. Be sure the porch and entry are clean and updated, feels comfortable, and safe. Minimal landscaping is necessary from adding additional mulch and making sure the grass is green. Finally, be sure there is some design elements (this could include front porch light, mailbox, door color, shudders, front entry, picket fence, front door knob....this list goes on). Finally, a fresh coat of paint never hurt anything.
There is too many properties and too much competition. Your property must stand out whether it have better rents, more ammenties, and further more have curb appeal.
Here is a watered down version of my investor to do list.
There are four rules with investing in Residentail Real Estate
1. Curb
2. Kitchen
3. Baths
4. Sizzle features
Curb appeal captures buyers. First impressions are everything. It makes people want to stop the car. Over 90% of buyers find their home on the internet. If the front view of the house is not inspiring, they will NEVER get to your online property Tour. No matter what the inside of the home looks like, if the outside is not enticing, they will move on.
Curb appeal changes could include changing a front door, adding shutters, or even just mowing the lawn! Trim or remove trees or shrubbery, add a picket fence, or just add some water to the dead grass just do something. Be creative but keep in a budget. It is easy to go overboard on anything without a budget in mind.
Keys to curb appeal. Improve your buyers first impression of the home from the street. Be sure the porch and entry are clean and updated, feels comfortable, and safe. Minimal landscaping is necessary from adding additional mulch and making sure the grass is green. Finally, be sure there is some design elements (this could include front porch light, mailbox, door color, shudders, front entry, picket fence, front door knob....this list goes on). Finally, a fresh coat of paint never hurt anything.
Tuesday, September 15, 2009
$4000 Home Run 2 Grant
$4000 Home Run Grant is nothing but cash in your pocket! An Amazing opportunity to contract a property to build or purchase existing property that has never been occupied. Be sure to go through an approved lender, watch your deadlines, and apply EARLY!
Currently there are 500 new construction properties that will qualify for the home run grant in the Wasatch Front and nearly 200 in Davis County. For more details on these properties, email me at judy@rexut.com, or call 801-573-1601.
Web link:
http://b2b.utahhousingcorp.org/cgi-bin/R?P=HOMERUN2_INFO
HOME RUN GRANT 2 DETAILS
The property must be your primary residence. You DO NOT have to be a first time home buyer. Purchase a SFR, condo, PUD, Twin homes, town homes and even mobile (see details).
Homes that qualify:
1. Purchase a home contracted for construction, partially finished, or contracted for completion- be sure to reserve your Commitment by November 30 , 2009 and it must be completed by June 30, 2010.
2. Purchase a new construction home that has never been lived in.
Eligibility:
Single person with maximum income of $75000, couples $150,000
Cash buyers can qualify.
Good luck
Currently there are 500 new construction properties that will qualify for the home run grant in the Wasatch Front and nearly 200 in Davis County. For more details on these properties, email me at judy@rexut.com, or call 801-573-1601.
Web link:
http://b2b.utahhousingcorp.org/cgi-bin/R?P=HOMERUN2_INFO
HOME RUN GRANT 2 DETAILS
The property must be your primary residence. You DO NOT have to be a first time home buyer. Purchase a SFR, condo, PUD, Twin homes, town homes and even mobile (see details).
Homes that qualify:
1. Purchase a home contracted for construction, partially finished, or contracted for completion- be sure to reserve your Commitment by November 30 , 2009 and it must be completed by June 30, 2010.
2. Purchase a new construction home that has never been lived in.
Eligibility:
Single person with maximum income of $75000, couples $150,000
Cash buyers can qualify.
Good luck
Thursday, June 18, 2009
Real Estate and Rents
I recently had a a tenant request a $50 reduction in rent. They have been renting for over 18 months with no late payments. Every quarterly walk through the property is super neat and clean. I signed a new lease agreement and they will continue to rent.
By keeping my steady income stream from properties it allows me to continue to fish for new properties in the market. I can show low vacancy rates and consistent income. In addition, it allows me to keep the property cash flowing even if more residential homes are to be leased, I am still competitive.
If I decide to refinance, I can show the income. In the end, it is a long term investment. As long as it cash flows, I plan on this property being very lucrative.
By keeping my steady income stream from properties it allows me to continue to fish for new properties in the market. I can show low vacancy rates and consistent income. In addition, it allows me to keep the property cash flowing even if more residential homes are to be leased, I am still competitive.
If I decide to refinance, I can show the income. In the end, it is a long term investment. As long as it cash flows, I plan on this property being very lucrative.
Thursday, June 4, 2009
Decrease Has Upsides, Home Run Grant and Tax Credit.
Buying a home right now may be the best decision you can make! Reasons you should be buying today:
This week I sold 3 town homes and one residential home. Two were successful in qualifying for the $6000 Utah home run grant program and three received the $8000 tax credit. Not to mention the properties were great deals and the seller covered all their closing costs. These buyers were absolutely ecstatic.
This market really excites me. The market provides more inventory than ever before to pick and choose the home or rental property that absolutely fits. Sellers are willing to be creative in carrying contracts, cover closings costs, and even provide creative incentives.
However, if you want to take advantage of these opportunities you better move quick. According to City Weekly, of the 1600 home run grant programs, there were only 600 available 2 weeks ago. If you want to confirm you qualify, go to
http://www.utahhousingcorp.org/Homerun.htm.
The Tax Credit from the Government is available until November.
Today's opportunities are plentiful. The stars have aligned, all lights are green, its time to make a move. If you have been holding back because you have not found the absolute best deal then you are not looking hard enough. I look forward to assisting you and showing properties I have on my radar. It's exciting! Hope to talk to you soon.
- Interest rates are low
- Rents are going up
- High property inventory
- Concessions are plentiful
- Free money is available (Grants, Tax Credits, local incentives)
- Creative financing available like never before
- Banks, Credit Unions, and Corporations are realistic
- Sellers are motivated
This week I sold 3 town homes and one residential home. Two were successful in qualifying for the $6000 Utah home run grant program and three received the $8000 tax credit. Not to mention the properties were great deals and the seller covered all their closing costs. These buyers were absolutely ecstatic.
This market really excites me. The market provides more inventory than ever before to pick and choose the home or rental property that absolutely fits. Sellers are willing to be creative in carrying contracts, cover closings costs, and even provide creative incentives.
However, if you want to take advantage of these opportunities you better move quick. According to City Weekly, of the 1600 home run grant programs, there were only 600 available 2 weeks ago. If you want to confirm you qualify, go to
http://www.utahhousingcorp.org/Homerun.htm.
The Tax Credit from the Government is available until November.
Today's opportunities are plentiful. The stars have aligned, all lights are green, its time to make a move. If you have been holding back because you have not found the absolute best deal then you are not looking hard enough. I look forward to assisting you and showing properties I have on my radar. It's exciting! Hope to talk to you soon.
Saturday, April 11, 2009
Residential Rental with Cash Flow
What an amazing market to be creative. Fortunately, we can really help those that haven given up and are ready to walk away from their property. I know you have heard it before but, "Dont wait to buy real estate, buy real estate and wait." I just submitted an offer yesterday to purchase a single family home for my business portfolio. The owner wants out and will seller finance the property. After negotiating details on the phone, I am putting $5000 down and the price is $135,000. It is a 5 bedroom that rents at $1000 a month. This will be a long term hold with great cash flow.
My goal is keep this property and use it to 1031 into a larger multi-unit, development project, or another income producing property.
My goal is keep this property and use it to 1031 into a larger multi-unit, development project, or another income producing property.
Commercial Deal with Great Terms
We closed on a property last week. The property was a For Sale By Owner Commercial building on State Street with 8000 square feet of commercial space and an additional 3000 square foot garage. We purchased the space for $410,000! Price per square foot is amazing and great ability to lease. Don't stop reading. We put $25000 down and the seller is financing the note for 7.5 yrs at a rate of 6%. Now thats a deal.
Friday, April 10, 2009
Value in Property
When establishing value with property we look at the features and benefits of a given property vs. the current competition. With properties sitting on the market, foreclosed homes increasing, and sellers getting more motivated- there is more and more competition.
My properties are selling simply by providing easy terms, understood incentives, and sticking to a bullet proof marketing plan. "VALUE" does not mean PRICE. Creating phenomenol terms, knowing how to provide funds, and keeping a disciplined schedule may be the difference. Call me, let me show you what I mean.
My properties are selling simply by providing easy terms, understood incentives, and sticking to a bullet proof marketing plan. "VALUE" does not mean PRICE. Creating phenomenol terms, knowing how to provide funds, and keeping a disciplined schedule may be the difference. Call me, let me show you what I mean.
Saturday, January 24, 2009
Foreclosure and Bank Owned Properties
We missed a bank property this week by offering $5000 too low on a $600,000 property. One of my daily tasks is to know of every foreclosure and bank owned property that hits the market. By networking with local banks, agents, and loss mitigators, I find out more about properties that will be coming. This provides my clients the best deals before they are on the market or the day of. Good deals go and others may see them too.
Well...get ready for it. More foreclosures are coming. If you have note read it yet check out the story at: http://www.sltrib.com/realestate/ci_11454615.
Daren Blomquist, RealtyTrac's marketing communications manager said, "Utah now ranks 13th in terms of foreclosures, compared with 20th place a year ago. Foreclosures appear to be rising at a faster pace now because the housing boom in Utah came later than other states, so the bust is coming later, too," She went on to say "We have some tough times ahead of us. Even though we're approaching record-high levels of foreclosures, we're still in a better situation than most other states," she said.
As many of you know, my goal is always to find 'MOTIVATED' Sellers. Although REO's are motivated, they are not my favorite. In fact, I am not a huge fan of foreclosures of bank owned properties for the following reasons:
Well...get ready for it. More foreclosures are coming. If you have note read it yet check out the story at: http://www.sltrib.com/realestate/ci_11454615.
Daren Blomquist, RealtyTrac's marketing communications manager said, "Utah now ranks 13th in terms of foreclosures, compared with 20th place a year ago. Foreclosures appear to be rising at a faster pace now because the housing boom in Utah came later than other states, so the bust is coming later, too," She went on to say "We have some tough times ahead of us. Even though we're approaching record-high levels of foreclosures, we're still in a better situation than most other states," she said.
As many of you know, my goal is always to find 'MOTIVATED' Sellers. Although REO's are motivated, they are not my favorite. In fact, I am not a huge fan of foreclosures of bank owned properties for the following reasons:
- All homes are sold 'as is'
- No Sellers Disclosures
- A normal home inspection may not be enough
- Any internal damage, mold, or methamphetamines are unknown.
- Builder mistakes may be severe
- Our extreme climate may have caused damage and property may not be winterized correctly.
- The deal of the decade may be a money pit.
Although there are lots of deals available. Be sure to plan on spending more than the average $350 home inspection. Spend the time and money to get mold testing, meth testing, engineering reports, details from neighbors, and anything else you can. Consider hiring a professional contractor in addition to your home inspector. Better safe than sorry. Calculated risk is key when purchasing these types of property.
Friday, January 9, 2009
There is Hope
The great thing about our market isthere are opportunities. There are motivated sellers, people will carry financing, and renters want to stay somewhere nice. My dad always told me there are 3 things people always need: food, clothing, and housing.
I admit, it is not fun to see equity going down, jobs being lost, and people losing their homes. It's not fun taking a call from a client asking why their property has not sold and you have to explain that the price reduction you requested is a must not a suggestion. It's not fun seeing my parents heart sink every time the stock market drops.
However, there is hope. Even the people that have lost everything they have worked for can start moving forward and they do not need to wait years for a market recovery. In fact, many have said they will just start renting and try to qualify for a loan in 3 to 5 years. So here is what these people need to understand. No credit...No money...No problem.
While prospecting THIS WEEK I found 3 great deals that would benefit such a situation.
1. Owner has had a rental for 20 years. He wanted 10% down and then actually said he would take no money down if he got his price. This is in a good are in Salt Lake! He will carry the note for 20 years at 6%.
2. Seller rents property in Utah County and really just wants to stop land lording. Will carry financing.
3. Seller willing to sell their fixed up property at any price to get into their dream home. Yes, carrying the note is an option.
Lets keep pushing. There is hope. The harder we work the luckier we get. Call me, let me show you how.
I admit, it is not fun to see equity going down, jobs being lost, and people losing their homes. It's not fun taking a call from a client asking why their property has not sold and you have to explain that the price reduction you requested is a must not a suggestion. It's not fun seeing my parents heart sink every time the stock market drops.
However, there is hope. Even the people that have lost everything they have worked for can start moving forward and they do not need to wait years for a market recovery. In fact, many have said they will just start renting and try to qualify for a loan in 3 to 5 years. So here is what these people need to understand. No credit...No money...No problem.
While prospecting THIS WEEK I found 3 great deals that would benefit such a situation.
1. Owner has had a rental for 20 years. He wanted 10% down and then actually said he would take no money down if he got his price. This is in a good are in Salt Lake! He will carry the note for 20 years at 6%.
2. Seller rents property in Utah County and really just wants to stop land lording. Will carry financing.
3. Seller willing to sell their fixed up property at any price to get into their dream home. Yes, carrying the note is an option.
Lets keep pushing. There is hope. The harder we work the luckier we get. Call me, let me show you how.
Wednesday, December 3, 2008
Do What Others Are Not Willing To Do
The last few weeks I have had peers ask how I am selling property, finding good investments for clients, or how I am finding new business. "How are you closing deals?"
The answer...I continue to scratch at the concrete. I put my head down and go to work. I cold call, I knock doors, I call ads on the internet or newspaper, I have my assistant create lists for me to call and I do whatever I have to make more contacts, set more appointments, and sell my clients properties or find new properties for my buyers. I continue to spend money on marketing. I make sure I follow up on every interested call. It is the constant daily effort of finding, marketing, and being in front of people and properties. Its the daily routine and doing things constantly and consistently that has created some deals that would have never happened. I seem to get luckier the harder I work. The more consistently I do it, the more deals come about. How did the tortoise win the race, one step at a time.
The answer...I continue to scratch at the concrete. I put my head down and go to work. I cold call, I knock doors, I call ads on the internet or newspaper, I have my assistant create lists for me to call and I do whatever I have to make more contacts, set more appointments, and sell my clients properties or find new properties for my buyers. I continue to spend money on marketing. I make sure I follow up on every interested call. It is the constant daily effort of finding, marketing, and being in front of people and properties. Its the daily routine and doing things constantly and consistently that has created some deals that would have never happened. I seem to get luckier the harder I work. The more consistently I do it, the more deals come about. How did the tortoise win the race, one step at a time.
Monday, November 3, 2008
Be Creative and Make It Happen
This last week we were able to close on two deals that likely would have never consumated and closed. This market is fabulous for creating win win transactions with creative techniques that benefit all parties. In addition, it makes deals close in a market where they would likely sit and never sell at all. That is why we are selling properties and our deals are closing.
Examples from THIS Week:
1. Our fixer upper property was under contract for $158,000. After all evaluations were complete and the day of closing arrived, we found that the buyers partner did not have his half of the money. Therefore, IT WAS DEAD. So rather than take the buyers earnest money and put it back on the market with 8,600 other homes I asked the question. "How much money was promised by your partner?" "What if I could provide you the money you need to make up for your partners lack of funds, would you still close?" Therefore, he came in with 30% down as required by the bank and we did a 10% carry back for 3 years. He was happy to save the additional 10% and my seller was ecstatic to earn a higher percent on her money than the bank would or money market would yield her.
2. We had a buyer that had $40,000 cash down but no credit. Also, they did not want their payments to exceed $2000 AND wanted a $500,000 home. Is this reality or fantasy land? Well...this is what we did. We searched the MLS and found a builder/agent wanting to sell. I proposed a few options and our goals, in the end we closed at $470,000 at a 5% rate for 5 years!!! No mortgage insurance and $40,000 down. Not only is that a good deal, the TERMS are powerful!
3. I am currently negotiating on an income producing duplex for myself. The term would be for 4 years at 8%. Sounds a little high but in reality by the time I am saving the cost of no mortgage insurance, no closing costs, and the ability to raise low rents to market rates, it really is the deal of the decade.
My point is this. This market has some deals that people really think would never happen or are simply over looked. So, just remember there is sunlight through the clouds and there are deals everywhere. Just think about it a little longer and be creative and ask, "how could I make this happen?"
Examples from THIS Week:
1. Our fixer upper property was under contract for $158,000. After all evaluations were complete and the day of closing arrived, we found that the buyers partner did not have his half of the money. Therefore, IT WAS DEAD. So rather than take the buyers earnest money and put it back on the market with 8,600 other homes I asked the question. "How much money was promised by your partner?" "What if I could provide you the money you need to make up for your partners lack of funds, would you still close?" Therefore, he came in with 30% down as required by the bank and we did a 10% carry back for 3 years. He was happy to save the additional 10% and my seller was ecstatic to earn a higher percent on her money than the bank would or money market would yield her.
2. We had a buyer that had $40,000 cash down but no credit. Also, they did not want their payments to exceed $2000 AND wanted a $500,000 home. Is this reality or fantasy land? Well...this is what we did. We searched the MLS and found a builder/agent wanting to sell. I proposed a few options and our goals, in the end we closed at $470,000 at a 5% rate for 5 years!!! No mortgage insurance and $40,000 down. Not only is that a good deal, the TERMS are powerful!
3. I am currently negotiating on an income producing duplex for myself. The term would be for 4 years at 8%. Sounds a little high but in reality by the time I am saving the cost of no mortgage insurance, no closing costs, and the ability to raise low rents to market rates, it really is the deal of the decade.
My point is this. This market has some deals that people really think would never happen or are simply over looked. So, just remember there is sunlight through the clouds and there are deals everywhere. Just think about it a little longer and be creative and ask, "how could I make this happen?"
Thursday, September 11, 2008
It Can Happen, Anytime.
Two weeks ago we were bid out on an investment. The day of closing the deal did not go through for the other party. Although there were better offers on the table, we could close quick and they called us to close for our offer $20,000 less than competing offers. What an amazing deal. As I stated before, 50% of the time those deals go through. Always be the back up.
Since then I found a property with foundation problems for $99,000. What a deal right? But here we are two weeks later and it is still sitting on the market as investor after investor cannot seem to justify the price with the major foundation issues. Remember, I am not interested in what a property is but what it can be.
This property can actually be split into 3 lots and 3 townhomes built on the property. This property is not getting justice. I would take 20 minutes to have a preliminary plan approved and market it has a possible 3 unit development for $135,000. Would you rather have one junky house for $100k or a possible unit for $45,000 a door?
Since then I found a property with foundation problems for $99,000. What a deal right? But here we are two weeks later and it is still sitting on the market as investor after investor cannot seem to justify the price with the major foundation issues. Remember, I am not interested in what a property is but what it can be.
This property can actually be split into 3 lots and 3 townhomes built on the property. This property is not getting justice. I would take 20 minutes to have a preliminary plan approved and market it has a possible 3 unit development for $135,000. Would you rather have one junky house for $100k or a possible unit for $45,000 a door?
Monday, August 25, 2008
A fixer upper found this week
We located a real fixer upper this week for $185,000. It needed about $50,000 and would be worth $280,000.It was really a dump and needed significant rehab. There were 6 offers and It went for full price the first day on the market.
Interestingly enough, our offer was $20,000 less. When I asked the agent if we could be in a back up position, they agreed.
This is my favorite type of deal and this is why. Lessons to be learned:
1. Always stick to your numbers. A feeding frenzy can sometimes make you feel pressure that get you away from your numbers. Put a pencil to it and stick to it.
2. Always be in a back up position. I do not care if the next deal is cash. Anything can happen! My ratio of success is roughly 50% of back up offers go through. You do not get all of them but when they go through it is awesome.
3. There are more fish in the sea. This deal came up this week there will be another next week. It was just fun to see how many offers came in on the deal and how active this market really is. Like I said, this market is a great opportunity to get some good deals.
Interestingly enough, our offer was $20,000 less. When I asked the agent if we could be in a back up position, they agreed.
This is my favorite type of deal and this is why. Lessons to be learned:
1. Always stick to your numbers. A feeding frenzy can sometimes make you feel pressure that get you away from your numbers. Put a pencil to it and stick to it.
2. Always be in a back up position. I do not care if the next deal is cash. Anything can happen! My ratio of success is roughly 50% of back up offers go through. You do not get all of them but when they go through it is awesome.
3. There are more fish in the sea. This deal came up this week there will be another next week. It was just fun to see how many offers came in on the deal and how active this market really is. Like I said, this market is a great opportunity to get some good deals.
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