Wednesday, November 27, 2013

Why you need a loan preapproval

Get to know the different between a prequalification and a preapproval and what a lender needs from you.

 By Michele Lerner, realtor.com


Few experiences are more frustrating than falling in love with a home that's for sale and then discovering you can't afford to buy it.

The majority of first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the home buying process because you need to understand your purchasing power before you begin to look at homes.

Lenders offer borrowers a prequalification letter or a preapproval letter, but most real estate agents recommend that you get a preapproval before shopping for a home. A prequalification letter will state the amount a lender thinks you can borrow based on your income and your credit profile without any actual documentation. Mortgage-lending standards have tightened since the housing crisis, and all loans now require full documentation and verification of income and assets, so most sellers will only accept an offer from a buyer with a full preapproval letter that’s based on verified information.

Sellers aren't the only ones who benefit from you obtaining a loan preapproval, though. You're better off with a preapproval for two reasons:
  1. You'll have gone through the credit check and paperwork requirements for a mortgage, so you’ll have clarity about your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.
  2. Because your documentation will already be in place, a loan preapproval based on everything other than the actual value of the home you’ll purchase will speed up the process once you make an offer.
How to find a lender
Your real estate agent should be able to recommend a lender or two for you to interview, but you should also ask friends and colleagues for someone they trust. You can check for a loan officer's license and read reviews online to be sure you're working with someone reliable. As a first-time buyer, you should call a few lenders to find someone experienced with first-time buyer needs who can possibly help you identify special loan programs in your area that could help you get into a home.
What to expect from your lender
The best lenders take a collaborative approach with borrowers and explain all your loan options. When your lender checks your credit report, you should get feedback about ways to improve your credit profile and recommendations for how to handle your money between the time you apply for a loan and settlement day. Your lender should provide advice about when to lock in your loan rate and discuss the pros and cons of various loan programs.
What your lender expects from you
Your lender needs you to be honest about your finances and responsive to all requests for additional information, no matter how unimportant it may seem to you. The more cooperative you are with a lender, the easier the loan process will be. You should be prepared with tax returns, W-2s, bank statements, employer names and addresses and your current landlord's information.

Your lender will generate a loan approval based on your debt-to-income ratio and credit score, but you should also consider your budget and your own comfort level with a payment. There’s no need to borrow the maximum amount you qualify for, particularly if you know you plan to spend money on items that don’t show up on your credit report such as greens fees or ski trips. Your careful planning and preservation of your emergency fund are important for responsible, long-term home ownership.

Monday, November 11, 2013

HARP changes put refinancing in reach of more homeowners

(BPT) - When the federal Home Affordable Refinance Program (HARP) launched in 2009, millions took advantage, but many other homeowners found they couldn't qualify to refinance their underwater mortgages. Today, significant enhancements have made the program more accessible for homeowners and a great opportunity to lower payments or build equity faster.
If you owe as much or more on your home than its current value, you're considered "underwater" or "upside-down" on your mortgage. For some homeowners, the situation has led to foreclosure. Others, however, have stayed current on their mortgage payments, and those are the people HARP is intended to help.
You may be eligible for HARP if:
* You are current on your mortgage.
* Fannie Mae or Freddie Mac backs or owns your mortgage, and they acquired your mortgage on or before May 31, 2009. Use Fannie Mae's and Freddie Mac's online tools to find out.
* The mortgage is for your primary home, a single-family second home or a one- to four-unit investment property.
If you're underwater but still able to afford your current mortgage payment, you may wonder why you would want to refinance. Refinancing a higher interest rate mortgage is a great way to obtain a lower rate that saves you money over the life of the loan. Unfortunately, traditional refinances are not designed to help people whose current home debt exceeds their home's value. For underwater homeowners, qualifying for refinancing is virtually impossible without HARP.
When you refinance through HARP, you'll likely end up with a lower monthly payment, a shorter-loan term or you can even refinance an adjustable rate mortgage into a 30-year fixed rate mortgage. You can invest those savings in other areas, such as home improvements, retirement savings or college funds. Home improvements, in particular, can be a great investment because they can increase your home's value, even as you continue to pay down how much you owe on it.
With mortgage interest rates still historically low - but likely to rise - and the changes to HARP, it's a good time for underwater homeowners to consider applying for the refinancing program. More homeowners will qualify under the new provisions, and some who were previously declined for the program may now be able to qualify for it.
Key HARP changes include:
* No underwater limits - Borrowers will now be able to-refinance-regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent. For example, if your home value was $100,000, your mortgage couldn't exceed $125,000 in order for you to qualify for HARP. That limit has been lifted, so now you may qualify even if you owe much more than your home is worth.
* No appraisals or underwriting - Most homeowners will not have to get an appraisal or have their loan underwritten, making their refinance process smoother and faster.
* Modified fees - Certain risk-based fees have been reduced or eliminated altogether for borrowers who refinance into shorter-term loans.
* Less paperwork - Lenders have the option of qualifying a borrower by documenting that the borrower has at least 12 months of mortgage payments in reserve.
Perhaps most important, the deadline to apply for refinancing through HARP has been extended. Homeowners now have until Dec. 31, 2015 to apply, but take advantage of current low mortgage rates. To learn more about the new HARP and if you may be eligible to participate, visit www.harpprogram.org

Tuesday, October 29, 2013

Fall back: Change clocks, change smoke alarm batteries





This weekend marks the end of daylight saving time and the beginning of standard time, with residents setting their clocks back one hour. The time change occurs officially at 2 a.m. Sunday, Nov. 3.
It’s that time of year again, time to change your clocks and change the batteries in your smoke alarms. Set your clocks back one hour before you go to bed on Saturday, Nov. 2, and while you’re at it, please take a few minutes and change the batteries in your smoke and carbon monoxide alarms, then you can rest easy knowing your loved ones are being protected.
According to the national statistics, 75 percent of fire deaths in residences occur in homes that either do not have smoke alarms or do not have working smoke alarms.
It is the cheapest insurance to safeguard you and your family in the event your home has a smoke or fire condition. Bottom line, a working smoke alarm greatly increases your chance of surviving a house fire.
Smoke alarm and carbon monoxide alarm tips:
• At a minimum, install a smoke alarm and a carbon monoxide alarm outside each sleeping area.
• It is also prudent to install smoke alarms and carbon monoxide alarms in each bedroom/sleeping area.
• Install smoke alarms on each level of your home including the basement.
• If your alarms are plugged into an electrical outlet, don’t forget to change the back-up batteries if they have them.
• If you have children consider purchasing the smoke alarms with recordable voice announcements.
• If you or someone in your home is hearing impaired, there are specialized smoke alarms systems available.
• Make sure all the alarms are linked so that when one goes off they all go off.
• Test your smoke alarms once a month.
• Clean smoke alarms by vacuuming them. This removes dust and bugs that can cause them to malfunction.

Tuesday, October 22, 2013

Secrets of a solid home inspection

Nearly two-thirds of surveyed homeowners report that a home inspection during the selling or buying of a house saved them money.

Nearly two-thirds of surveyed homeowners report that a home inspection during the selling or buying of a house saved them money.


Selling, buying or just putting a house on the market may raise many questions. Can I get a good price? Are there any problems I should fix prior to listing my house? If I buy this house, will I encounter problems that may make me regret my decision?
The sale price of a house depends on many factors, including the market, location, size of the property, age of the house, condition of the structure, what appliances might be included in the sale and even how nicely the property and building were landscaped and decorated – just to name a few.
Having a qualified professional inspect your house prior to putting it on the market – or for prospective buyers, before closing on a sale – can help guide your decision. But many homeowners and prospective buyers are unsure what’s included in a standard home inspection, according to the American Society of Home Inspectors (ASHI). A qualified home inspector will review these aspects of a property:
  • Roof, attic and visible insulation
  • Foundation, basement and structural components
  • Walls, ceilings and floors
  • Heating and central air conditioning systems
  • Windows and doors
  • Water fixtures and faucets
  • Decks
Nearly two out of three homeowners recently surveyed by ASHI reported they saved a lot of money as a result of having a home inspection during the selling/buying of a house. Sellers use inspections to help determine potential problems that can be repaired or replaced prior to listing – potentially getting them a higher sale price. And buyers use the inspections to determine if they want to invest in the property, or help negotiate for a better price that would include the repair and replacement of potential problems.
Not all home inspectors are certified and licensed. ASHI’s “Find an Inspector” tool allows homeowners to locate an inspector in their area. Always check with your local inspector for a complete list of services provided.
“It’s important for homeowners to do their homework before hiring an inspector,” says Kurt Salomon, ASHI president. “Look for a home inspector certified through the ASHI Certified Inspector Program, which is the only home inspection association program approved by the National Commission for Certifying Agencies.”
The following elements are not included in a standard home inspection:
  • Septic system
  • Electrical wiring and plumbing that is not readily accessible (for example, behind drywall or plaster)
  • Water conditioning or softening system
  • Swimming pool
  • Backyard fences
  • Lawn irrigation system
  • Household appliances
  • Compliance with local codes
  • Appraisal to determine market value
Before hiring a home inspector, inquire about what is covered in the inspection and ask to see a sample report. Although some inspectors provide ancillary services, it may be necessary to consult a specialist for concerns that extend beyond a standard inspection. Often your inspector will help you make this determination.
Hiring a certified home inspector and having questions answered before putting your house up for sale – or before finalizing a purchase price – can not only help save money, but also allow you to go through the process with more peace of mind.
Courtesy of BPT

Monday, October 7, 2013

10 tips to help you save home energy

Before you spend money on the latest energy-efficient gizmo that’s supposed to save you money let’s look at some energy saving ideas that will really help you save home energy. The strategies that we will look at maximize the effort you put in and help reduce your home energy consumption.
First sit down and think about all the different ways your family uses energy around the house. Now put an approximate type and cost of energy used. You may have trouble breaking down the cost but try to do it. Now all you have to do is find ways to save on your resources at the same time cut your costs. You may have to think creatively but it can be done.
So here are some tips to get you started:
- Turn the lights off when you’re not using them. This is really simple and easy to do. Do you really need your bedroom light on when you’re in the living room? Do you leave lights on when you leave the house? Do you even need more than one light on in a room for what you are doing? Believe it or not it makes a big difference.
- Turn all electronics and other appliances off when you’re not using them. No one can do everything at the same time. Can you really listen to a radio watch television and use your computer all at the same time?
- Set your thermostat down a couple of degrees in winter or up in summer, to conserve energy. And dress appropriately indoors for the time of year it is. For instance in winter, put on a sweater or some extra clothing, or may snuggle under a blanket to stay warm. In the summer, wear less and stay cooler naturally.
- Only turn an appliance on when you have a full load. This is true especially for the washing machine, dryer and even the dishwasher. It is amazing how much extra energy is used doing multiple small loads in comparison to one full load.
- Do regular maintenance on your appliances. Keeping them clean means they don’t have to work as hard. Changing filters reduces the energy needed to accomplish a task. Regular care will also mean any maintenance bills that you might come up against may well be cheaper.
- Be careful how you use your water. Like when brushing your teeth or washing your hands, use only the water you need. Don’t let the water run the entire time. Also, try and use less water if you take a bath, or control your shower times.
- Simply let your hair air dry, instead of using a blow drier every day.
- Lower the temperature on your water heater to 120 degrees F.
Don’t forget the bigger projects as well.
- Seal the cracks around your doors and windows. You are paying for your hot air that escapes through cracks all around your house. You need to make sure you are doing all you can to keep the warm air you’re paying for inside your house.
- You also need to check your house’s insulation. Though this has been done by many homeowners nevertheless you still need to do it before you pass it over. It is probably the biggest thing in reducing heating costs.
Now some of these things may seem trivial to you but let me assure you that even the small things add up over time. And really most of them you won’t even notice the difference to your life except your bills.
These tips and suggestions will make your home more affordable, and take some strain off of our world’s resources. Just think if all of us would just made a few of these changes to how we do things on a daily basis it would make a huge difference.
By: Dave McIntosh

Thursday, September 26, 2013

How to make your home stand out in a hot real estate market

  (BPT) - The residential housing market is heating up, but before you post that for-sale sign, consider making upgrades that add style and value to your home. With many buyers seeking wood floors, kitchen upgrades and other add-ons, it's important for homeowners to highlight these features so their property stands out from the competition in today's market.
"It all comes down to dollars and 'sense,' " says Linda Jovanovich of the American Hardwood Information Center. "In addition to warmth, beauty and durability, hardwood features increase your home's resale value. Even with a modest budget, if you take the time and price your options, updating worn floors, dated cabinetry, and lackluster walls will make a significant difference. And it's easier and less expensive than you think."
Survey says hardwood floors sell
When it's time to sell, hardwood floors not only add good looks, they increase the value of your home. According to a nationwide survey of real estate agents commissioned by the National Wood Flooring Association in 2012, 99 percent of respondents agreed that homes with hardwood floors are easier to sell. In addition, 90 percent said these homes sell for more money.
"Absolutely true," says Bob Strader, a real estate agent with The NORTH Group of Keller Williams Realty in Atlanta. "Between two similar properties, buyers will gravitate toward the home with hardwood floors, and that home will sell in half the time."
Debbie Gartner, known as "The Flooring Girl" by customers at her New York-based flooring store, agrees and says quality increases value. "Hardwood sells," notes Gartner, adding that you're in luck if you already have a hardwood floor under a carpet. "Clients are shocked when I tell them it's almost always less expensive to refinish a hardwood floor than it is to re-carpet a room."
What about the kitchen?
Real estate agent Strader advises sellers to "upgrade their kitchens prior to going on the market because buyers see kitchen upgrades as being rather expensive." He adds that, "Homes without updated kitchens will take longer to sell, and will sell for less."
Gerry Henley, president of Kitchen Solvers, a national kitchen and bath remodeling franchise, suggests simple cabinetry updates that won't break the bank but will result in a higher return on your investment. And hardwood products offer plenty of options.
"Many homeowners overlook the low cost and high impact of re-facing their existing kitchen cabinets," he says. "By swapping out dated doors and drawer pulls, a homeowner can get the look of a newly updated kitchen and save up to 50 percent of the cost of a complete overhaul. Cabinet re-facing is a quick-moving project and the kitchen remains functional throughout installation."
Value in the details
Architectural details - hardwood crown moulding, baseboards and other millwork - add depth and character, provide a finished look, and change lackluster to extraordinary, so much so that according to the 2012 National Association of Home Builders' "What Home Buyers Really Want" study, crown moulding ranks higher than other luxury features such as fireplaces, kitchen seating and window seats.
Strader agrees. "From my experience, millwork adds the 'wow' factor that stays in a buyer's mind. And most sellers are unaware that a custom look can be obtained relatively inexpensively with off-the-shelf moulding patterns available at home improvement stores."
The American Hardwood Information Center offers some additional tips to keep costs low. For crown and other decorative ceiling mouldings, consider using a less expensive species such as poplar. Where durability is a must, such as baseboards, door casings and chair rails, consider a harder species, like white oak.
Make it a win-win
Upgrade with American Hardwoods to maximize your home's value. Visit the American Hardwoods Information Center, www.HardwoodInfo.com, or visit American Hardwoods' Pinterest page to browse budget-friendly ideas on updating with American Hardwoods flooring, cabinetry and millwork.

Tuesday, September 17, 2013

7 real estate investing lessons we can learn from Steve Jobs


I recently read the book “Steve Jobs” by Walter Isaacson. As brilliant as Steve Jobs was, I came away from the book not with a sense of awe about the man who Steve Jobs was, but how despite his incredible success, how idiosyncratic and deeply flawed a human being he really was.
Yes, he was a certifiable genius, although in some ways “certifiable” as well.
Yes, we’ll never see anyone else exactly like him, although Apple’s stock price has done quite well since his death
Yes, in American business, he will live in the pantheon of Edison, Einstein, and Ford, and he really thought he belonged there.
Yes, he did leave an indelible mark on our society – in fact, totally revolutionizing five separate industries nearly simultaneously…but he deeply hurt many people on the way in his rise to near mythic status.
Despite his greatness, he made tons of mistakes, cruelly alienated lots of people including his own daughter, and did some curiously unethical things in his relatively brief time on this earth. No doubt, the further you probe into the true personal lives of your “heroes” oftentimes the more you find, the less you like.
I came away from reading the book in a word – exhausted, but exhilarated at the same time. In fact, it was refreshing in a way to know that although Jobs was “Steve Jobs the icon”, he’s just a guy like you and me. I realized that you don’t have to be perfect to be great. And although there are many traits of Jobs I would never emulate in my own life, I felt like there were so many brilliant lessons that can be learned from him not only as a businessman and real estate investor, but as many lessons in what not to do as a father, a husband and a human being.
The bottom line is this: you, I and anyone can be great. There are multiple paths to ultimate success in life and in real estate investing, and there are multiple lessons Steve Jobs can teach the real estate investor and which can be learned by you.
The Top Seven Real Estate Investing Lessons Steve Jobs Taught Us
1. Fear Not
Jobs was plagued by strange idiosyncrasies. His diet, his odd personal habits, his driving without a license plate, his parking in handicapped zones just to name a few. But one thing he was blessed with was a total and utter lack of fear. Lack of fear comes from many things; self-confidence, optimism, even delusions of grandeur (checkmarks on all three for Jobs here). One thing’s for sure, he had enormous amounts of self-confidence. He felt he was special and that he was put on this earth to do great things by creating the technical marvels which ultimately influenced and bettered the lives of millions of people. Those innovations still affect us all each and every day.
Even in the face of terminal pancreatic cancer, he seemed to have an almost irrational sense of self-confidence and lack of fear. His self-confidence was so great; he actually thought that he could cure himself with oddball diets and rituals, while shunning traditional medicine – medicine that just may have saved his life. Incredibly, he seemed to have a complete absence of fear of the one thing that most of us are deathly afraid of…death itself.
It’s terrifying to buy your first house flip, for sure. But is it as fearful as death? Keep things in perspective in order to control fear. Think of the worst case scenario if you do what you’re fearful of. If you can handle the worst case pain and aggravation, then do it. If Steve Jobs could fearlessly stare down death, you can do the same.
If you’re just starting, then make your first real estate purchase. If you’ve been around the block a few times, try a new investment strategy you’ve never done before. When you face your fears and do what you fear most, you end up controlling your fears.
2. Pick Yourself Up Even After Your Failures
Can you imagine the humiliation of being fired by the guy you picked to run your company? In one of the most public firings in corporate history, Steve Jobs was fired. This was big news when it happened, sending shockwaves throughout Silicon Valley and the rest of the corporate world. Jobs did wallow for a short period of time, sure. But he picked himself up and created a new company that was ultimate bought by the company and the successor he was fired by.
If you are new to real estate investing and you lose a few thousand on your first deal because you overestimate your ARV, didn’t stick by the 70% Rule or failed to tightly manage your general contractors, then provided the few thousand didn’t bankrupt you, pick yourself up and try again.
It’s not how many times we fail; it’s how many times we get back up after failure that counts most.
3. Marry Art and Functionality
Many of us have iPhones. If you have one nearby while reading this or on the desktop beside you, pick it up. Feel the weight, notice the elegant stainless steel wrapping, the Gorilla glass screen, the smooth back. Swipe a few apps from side to side, browse the Internet, touch an app and see how they all gently jiggle to be deleted or modified. If you think all these enhancements and subtle artistic nuances of the device (since copied by the Google platform) are random, think again.
Jobs dissected each of these features and weighed them for weeks and months prior to being introduced by Apple. And each feature indelibly bears his thumbprint – his signature. He married art and functionality to create everlasting products and innovation that will affect generations to come.
There are lots of posts on this website that discuss the “steps” to real estate investing, house flipping, wholesaling, you name it. Follow these steps here and learn as much as you can. But then, put your own thumbprint on each of them – just like Steve Jobs did with each of his creations.
Is there only one way to rehab a house for maximum resale? No way.
Is there only one way to round up funding for your next apartment building? Not a chance.
Virtually anyone can become a real estate investor as long as they have the desire and the ambition, but to become a massive success, it’s going to take more than just what you learn from others. Its going to require you to put your own indelible stamp on every deal you do. Think like Steve jobs in how you can make your flip or rental a little bit different, enhanced or beautiful…marry art with functionality.
4. Listen to Your Inner Voice
When you are new to real estate investing, you have no voice in your head. If you do have one, that voice is usually screaming to you “don’t do it!”
However, the more deals you do, a different inner voice starts to appear. This is the voice of experience.
Maybe you are thinking about becoming a real estate investor and there’s something that has stopped you from doing it. You went to school, you got a good job in finance or sales or maybe you’re a doctor or a dentist – but there’s something missing. When we don’t listen to our inner voice, we mail it in, we do what we do on autopilot.
You’re reading this blog most likely because you want something more. You want to create the life you’ve always wanted. THAT is the inner voice calling you.
Ignore it at your own peril.
Jobs’ inner voice screamed “change the world” – a pretty dramatic vision and a pretty big voice. He built computers to do it. That was his plan.
What’s yours?
One thing that’s abundantly clear with Jobs is that despite his many imperfections, he lived his life with very few regrets. He followed his inner voice. Whatever that voice is telling you, it would be smart to listen to it.  Even if it tells you to quit your job, become a full-time real estate investor, move to Tibet or become a gourmet sushi chef, listen to it.
Live life with no regrets.
5. Expect More from Yourself and From Others
Jobs was a real prick sometimes. He would berate people. He would yell at people. He would throw little temper tantrums. He was a totally obsessive control freak.
And of course, he was an absolute perfectionist.
He demanded this from himself and he demanded the same from everyone who worked for him. I am not saying that the WAY Jobs did it was right, far from it. He seemed like a real jerk to work for.
But one thing’s for sure, he pushed people to places where they never thought they were capable of going. He expected this of himself and he expected it from everyone who worked for him.
Do it in your own way and do the same thing in your real estate investment career. If you need to get upset, do it. Don’t overdo it or you will find nobody will want to work with you, so be careful. But shoot for perfection and settle for excellence at the very least.
Jobs built products that revolutionized the world using this philosophy and he did it in his own way…so you do it in your own way. But don’t try to be him. Be yourself and expect a lot from everyone and most importantly expect the absolute most from yourself.
6. Surround Yourself with the Most Talented People You Can Find
Steve Jobs gets all the credit when you think of the legacy of greatness at Apple. Sounds good, but it’s simply not true.
Yes, Jobs made the ultimate decisions in all matters Apple from the type of sandstone used in Apple stores to the kind of glass used on iPhone screens. But what’s less known is that he surrounded himself with some brilliant minds that simply made him and Apple better.
Jobs surrounded himself with serious talent: the true mastermind behind the iPhone and iPad design Jony Ive, now CEO Steve Cook, Apple co-founder Steve Wozniak, Toy Story creator John Lesseter, just to name a few. These super-talented people (not the faceless minions kowtowing to Jobs every whim as we may want to believe) don’t get the credit they rightfully deserve.
In real estate investing, surrounding yourself with an incredibly talented and knowledgeable team, including lawyers, real estate agents, general contractors, etc. – people in many cases who know far more than you – is just as important in real estate investing as it was in building one of the great companies of our generation. Steve Jobs realized that he couldn’t do anything without great talent around him.
How about you?
7. Stay Hungry. Stay Foolish
Success in anything in life is consistently looking to improve, to grow, to build and also to have fun. If you’re going to do it for the majority of the time you have in any given day, shouldn’t it be fun too? Jobs summed up this philosophy of innovation, creativity and fun in his memorable 2005 Stanford commencement address (check it out on YouTube if you haven’t):
    “When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960′s, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and Polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.
    Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: “Stay Hungry. Stay Foolish.” It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.
    Stay Hungry. Stay Foolish.”
We can be just as special as he was and although we may not all build the next Apple; we can build excellence in what we do every day as real estate investors. As was previously reported on this blog, we as real estate investors not only enrich the lives of thousands of people every year with quality housing, but we create jobs and opportunities to the tune of $9.2 billion per year as well.
What we do as real estate investors matters. Jobs would agree that is a worthy dream to pursue. And we all can learn much from him – both the good and the bad. But best of all, you don’t have to be perfect in to be wildly successful like Steve Jobs.
In fact, anything’s possible in life if you continue to follow the simple lessons laid out above.
Author: Mike LaCava

Thursday, September 12, 2013

Five reasons why buying a home is still a good idea

You may be wondering if buying a home is a good idea. Whether you’re thinking about buying, or already have and just need some affirmation, you may find it comforting to know there are still plenty of good reasons for financially stable people to buy a house. Here are a few:
* Homeownership can help make good credit even better. If your credit is in poor shape, you’ll want to monitor it before seeking a mortgage. But if you have good credit, live within your means, and consistently make good financial decisions, a mortgage can be the kind of “good debt” that helps your overall financial health. Making regular payments on a mortgage shows potential lenders that you’re a less risky candidate for a home loan. Before you begin home shopping, it’s a good idea to check your credit. Enrolling in a product like freecreditscore.com can help you better understand and leverage your credit.
* A mortgage can function like an automatic savings plan. By now, you’ve read the news reports about how little we Americans save these days. Well, every year you pay on your fixed-rate mortgage, is a year of building equity, and equity is like money in the bank. When it’s time to sell – whether you’ve stayed in your home seven years or the full 30 year term – you’ll have created equity and should be able to sell your house for more than you owe.
* Homeownership comes with plenty of financial perks, including an income tax credit for property taxes you pay on your home. For detailed information on tax breaks check out IRS.gov. Buying a home also affords you the opportunity to halt your housing costs. Rent will always go up from year to year, but if you have a fixed-rate mortgage (avoid adjustable rates) your biggest annual expense – housing costs – will be locked-in.
* Mortgage interest is a good deal when stacked up against other types of interest that don’t do much for you – such as high credit card interest rates or low rates on savings accounts and CDs. Mortgage rates are low right now, meaning you can pay less over the life of a loan than at practically any other time in recent history. Plus, it’s the only kind of interest that you can deduct from your taxes.
* Prices are still relatively low and inventory is high. It’s been a buyer’s market for a long time, but that’s going to change. The question is: when will the market start to improve in your area, taking home prices with it? You’ll have to do some legwork and astute research to determine when is the best time for you to buy.
If you monitor your credit and are on a sound financial footing, buying a home can still be a good idea. And now is as good a time as any to make your purchase.


Courtesy of BPT

Wednesday, September 11, 2013

Study Confirms: RE/MAX Sells More Real Estate

DENVER, July 25, 2013 /PRNewswire/ – RE/MAX agents sell more homes in the U.S. and Canada than any competitor, according to a recent study of buyers and sellers in both countries.

In the U.S., RE/MAX agents are involved in more home sales than any competitor, more than No. 2 Coldwell Banker, No. 3 Keller Williams, No. 4 Century 21, or No. 5 Prudential Real Estate.
In Canada, RE/MAX agents sell more homes than No. 2 Royal LePage, No. 3 Century 21, No. 4 Sutton, or No. 5 Coldwell Banker.
“We’ve always believed that homebuyers and sellers prefer RE/MAX agents over our competition and the results of this survey confirm it’s true,” said RE/MAX CEO Margaret Kelly. “Year after year, our agents do more to help their customers realize their real estate dreams, and that’s why they trust RE/MAX.”
Marketing research specialists at MMR Strategy Group conducted the substantiation study from November 2012 to March 2013 for RE/MAX. It identified consumers who had bought or sold a home in the prior 12 months.
Results of the study in the U.S. are consistent with residential transaction totals released by RE/MAX and the five Realogy brands: Century 21, Coldwell Banker, ERA, Sotheby’s and Better Homes & Gardens. Not releasing their transaction data were Keller Williams and Prudential Real Estate.
In all, RE/MAX agents closed 828,960 residential transaction sides in 2012, 25% more than second-place Coldwell Banker, based on Realogy’s SEC Form 10-K.
RE/MAX agents have earned No. 1 market share in Canada every year since 1987, and every year in the U.S. since 1997.
Nobody sells more real estate than RE/MAX.
For more information about RE/MAX, to search home listings or find an agent, please visit: www.remax.com.
About the RE/MAX Network:
Celebrating 40 years of innovation, RE/MAX was founded in 1973 by Dave and Gail Liniger, real estate industry visionaries who still lead the Denver-based global franchisor today.
RE/MAX is recognized as one of the leading real estate franchise companies with the most productive sales force in the industry and a global reach of more than 90 countries.
With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $130 million for Children’s Miracle Network Hospitals®, Susan G. Komen for the Cure® and other charities.
For more information about the RE/MAX network, please visit www.remax.com or www.joinremax.com.