Thursday, June 21, 2018

5 Questions That Will Determine Which Home Upgrades to Make

To know which upgrades you should make to your home, there are five questions you need to ask yourself.

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Here are the five questions you need to ask yourself to know which home upgrades will give you the biggest bang for your buck: 1. Does it make sense? Does it make sense for you to invest money into your property? If your home is in an area you don’t want to live in anymore and you’re ready to move, it probably doesn’t make sense to invest any money into it other than what can be put toward getting it ready for sale. 2. Does it make sense economically? Do you have the cash on-hand to put into your property in order for the renovation to be a successful investment? Sometimes in this situation, homeowners take out a home equity line of credit at a typically low interest rate. If you do something like this, the goal is to pay off debt immediately. I don’t love second mortgages, so my advice is to not use one unless you don’t have the cash on-hand, you know you’ll be in the house long-term, and you know you’ll see a return on your investment.

Asking these questions can help you build wealth through real estate.

3. Will you see a return on your investment (ROI)? To know if a renovation makes sense, you need to understand the market you’re in and the type of property you have. Do you really need marble floors installed into your $300,000 home or would hardwood or laminate floors make more sense? 4. Will your upgrade(s) be sellable? Sometimes we want to make an amazing upgrade, but it just doesn’t make sense to do so. I’ve seen people make adjustments to their home where their space was so unique that it made it difficult for anyone else to move into that space 5. Will your upgrade(s) make sense long-term? Anytime you put money into a property, it has to make sense in terms of the general market. You might want to take out three bedrooms and two bathrooms on your main level and turn them into one master bedroom and one master bathroom, but your neighborhood might not be conducive to those upgrades. That neighborhood, for instance, might be in a price point more appropriate for first-time homebuyers or those looking for a move-up property. You don’t want to make upgrades to your home that will hurt its value. One of the goals I want to help you with is to build wealth through real estate, and asking these kinds of questions can accomplish this goal. If you have any questions about this or any other real estate topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

Tuesday, June 5, 2018

How Affordability Is Affected by Increased Prices

What do our current increased prices mean to you? If you are an owner, it means that you have more money without even doing anything.

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Today I want to talk to you about how the increase in pricing, interest rates, and affordability can affect you and your home. Many people have been asking about what the market is going to do and where are we going. Here are the facts. The market is growing. The prices are rising. And, interest rates are going up. These factors create an issue where someone that could previously afford a home for $1500/mo. is now looking at paying $1,700 to $1,800 per month. This is not just because the rates went up but also because the value of the home increased. People are running into the issue of how it affects them and their homes. Compared to last year, we are finding a couple of differences. One is that we have even fewer homes on the market, but we have more sales occurring in the market. This creates a supply and demand issue which pushes up prices.

Increased prices affect your home personally because your home is now growing in equity.

This affects your home personally because your home is now growing in equity. With that new equity, you can take it and sell your home, and buy a larger home. Also, if you are planning on upsizing, you have the amount you have paid off for your current mortgage which you can transfer to a new property. Or, you can use that new equity to get a home equity line of credit for updates. If you have the cash, I do suggest you use it. However, using this will allow you to make your home a better place for you and your family. Finally, you can keep the equity where it is and continue to own this same property. You can either continue to live there yourself, or you could also turn it into an investment property. If you can make it an investment property with a higher lease than your mortgage payment, this will create an amazing source of income. It also creates a part of a portfolio for future growth. So, just consider that when there are changes in the market and issues with affordability, it unfortunately creates a situation where some people who want to buy are pushed out of the market. They instead continue to rent. While the real estate market does go up and down over time, rents will continue to increase. Hopefully you can consider this as an opportunity to get in our growing market. In the event that it does slow, you wouldn't have an issue like you would with renting because you will already be locked in with a great rate. If you have any further questions or would like to speak to me about buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you soon.

Wednesday, May 16, 2018

How to Prepare for Your Next Real Estate Investment

If you’re thinking about investing in real estate in order to build wealth, you’re not alone. Here are some tips that will get you started off on the right foot.

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What does it take to buy a home? If you are someone who is looking to buy a new home or helping someone else through the process, there are some things that you should know. Today I have a quick list of things that you need to know: Before I was ever a real estate agent, I was buying and selling investment properties. This is something I’ve always enjoyed and something you should think about. Whether you’re thinking about buying your first property or your fifth, here are a few helpful tips for success with investment properties: 1. Always make sure your finances are in order. We are finding fantastic properties, but when one buyer’s finances fall through there are always three or four back-up offers from eager buyers waiting to pounce. The seller won’t hesitate to move to the next in line if you’re not prepared. 2. Be proactive about having everyone and everything ready to go. If we’re dealing with a development, that means we need engineers, geotech, soil testing, surveyors, and architects. We want to make sure that we have the proper forms, rent rates, and every other detail ready to go. We have all of these resources ready for you so that you can find success.

Investing in real estate is a fantastic way to build wealth.

3. Find the project. The market is great and I think it will go up for at least the next 18 months. There’s going to be an affordability issue at some point, and then you’ll see a leveling off. When it comes to what investors should be looking for in a property, there are three must-haves: 1. The property must have equity already.
2. There is an opportunity to maximize its best use.
3. There is a potential for cash flow. If you don’t have these three things, you’re facing an uphill battle. For example, if you don’t have a property that’s cash-flow positive, that’s when people go bankrupt and lose everything. Back during the mortgage crisis, my rentals went down significantly in value, but the rents remained the same. I was able to use that money to sustain my business during those tough times. There are so many opportunities involved with investing in real estate. If you have any questions or you want to learn more, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.