The Right Way To Rent

With the economy struggling, every one is trying

their best to stay abreast of what the unknown future

holds. Most people our rethinking their once secure

futures. Many tenants are opting to downgrade their

apartments size, location, etc.. For landlords the tough

part is keeping tenants to live up to their contracts,

and keep units from becoming vacant for any extended

period. A new useful tool which may help with current

estimated comparable rental values is  www.rentometer.com

 

This site will let you know if your current rents are

competitive to the surrounding market. On the downside

these estimates do not give the ability to compare amenities.

To compare amenities, call the listed rentals and ask what

amenities are included with the rent. By being competitive

 in this tough market you will lessen your exposure to losses.

Hector Gutierrez,  Real Estate Broker, Investor, Contractor C-10 Licensed

www.wespeakrealestate.com

REO, Bank Own- Buy it now!

It’s here, the time to purchase a bank owned property. There are much more active buyers bidding on a home. The need to wait for a short sale or an auction sale isn’t necassary. Banks are asking for at least 10% -down payment and properties to be sold in an as is condition. Make a trip to the city, where the property is located to see what are the pending violations, if any.

 

Most loans which are 10% down payment require Private Mortgage Insurance (PMI). The lender programs may have the option of including the PMI on the rate (in the form of a higher rate), or may include a seperate monthly private mortgage insurance premium along with the mortgage payment (its about aproximates .82% of the loan amount and varies by insurer). The difference is, adding it to the rate makes the payment lower. The downside is when you do have the 20% equity you would have to refinance the loan rather than on a monthly premium you would just call the bank and ask them to remove the monthly PMI premium. It would be wise to you ask your loan officer to give you the different payments and make your decision accordingly.

 

Be prepared, by being buyer ready in these times of multiple offers we suggest the following:

Consult a loan officer to give you a “good faith estimate” (make sure you get a copy of your credit report)

A good faith estimate will show an itemized estimate of all fees involved in closing the mortgage loan

Receive a qualification letter from the loan officer.

Do not disregard an “as is” purchase. Most purchase agreements allow an inspection time frame.

Bank owned properties in many occasions just need paint, carpet, and minor maintenance.

Building sweat equity is what matters.

 

 

 

 

 

 

 

Move in condition “Sells”

 

Many buyers are taking advantage of the low rates and lower home prices.  The Lowest priced homes are usually Lender Own properties which need some repairs.  Most buyers deplete all their investment funds leaving them with no funds for repairs .  This is where home seller can take advantage in doing the following suggestions to get the most for the sale of their property.  

 

• Clean it. Home buyers, it turns out, hate dirt more than just about anything else. So, give your home a thorough cleaning from top to bottom. Wash the walls, floors and windows. Rugs should be thoroughly cleaned unless you plan to replace them. Curtains should be washed by hand or taken to a dry cleaner. If you’re not up to the task, spend  a few bucks for a professional cleaning company to do the job right.

 

• Organize it. If your home looks too small for you, prospective home buyers are going to think it’s too small for them. So, take everything off of your kitchen and bathroom countertops, half the books off your bookshelves and the past season’s clothes out of your closet and pack them away. Not only will your home seem larger, but you’ll have made a good start on packing

for your future move.

 

• Repaint it.  You will get the biggest bang for your buck by repainting the interior of your home in bright white paint. White walls help home buyers imagine how their own stuff is going to look. If you have wallpaper that’s in good shape, choose a neutral shade of white or off-white to complement it. If your wallpaper is peeling or is dated, strip it off and

start over with paint.

 

• Mow it and plant it. Most home buyers today will spend about 10 seconds looking at a digital photo of your home on the Internet. If they like what they see, they’ll do a “drive-by” showing. You have approximately 6 seconds to impress them as they drive from lot line to lot line. Make the most of what you have by giving your landscape a power-lift. Trim hedges and trees, plant

colorful flowers, mow the grass and edge your beds. If you’re not up to it, hire a professional landscaper to get the exterior of your home into shape. Then, power wash, touch-up, or repaint the exterior of your home for an irresistible package.

 

• Fix it. If it isn’t working properly, you could pay dearly when it comes time to negotiate the price of your home. Today’s home buyer just wants to move in and get on with his or her life. So oil the squeaky doors, screw in the knobs, replace the rotting wood lintels, and repair the holes in the porch screen door. The better shape your home is in, the more a home buyer will pay for it

7 Ways to Accumulate a Down Payment.

Lenders are changing their guidelines again, and one of the biggest problems facing potential buyers today is coming up with enough money for the down payment and closing costs. The amount of money you have available can greatly limit or increase your purchasing and negotiating power. Rather than saving all of the money yourself, look at these options that may help.

Here are some sure ways to accumulate the necessary funds that are acceptable to most lenders. This can help determine the best loan program to suit your needs. There are still programs that require lower down payments and assist with closing costs. Check your city and county down payment assistance programs for availability. Many bank owned properties are helping buyers with closing costs.

1. Have your parents give you the money as a gift. 

Documentation will be required to prove that the money is actually a gift and not just a phantom loan. Any taxpayer is permitted to give up to $10,000 per year to another person without having to pay a gift tax.  Your mother could give you $10,000 and give $10,000 to your spouse. Your father can do the same. This would give you $40,000 for a down payment and closing costs. (NOTE: Unless you are putting down at least 20% or are obtaining government-insured loan, 5% of the sales price must be your own money.)

2. Borrow against your 401K or insurance policy. 

You can also cash out your 401K but you will be subject to withdrawal penalties and payment of taxes. If your borrow against it, the loan payment will be counted as a debt.

3. Sell or borrow against an asset. 

Sell an asset such as a car can help increase the amount of money you have available. Borrowing against an asset is also acceptable as long as you qualify with the additional debt.

4. Obtain a low point or zero point loan. 

This will reduce the amount of your closing costs substantially. In some instances, the lender can also pay all or a part of your non-recurring closing costs.

5. Ask the seller to pay for all or a part of your non-recurring closing costs. 

Your real estate agent can assist you with this when you make an offer on a home.

6. Ask the seller to carry back financing. 

If the seller does not need all of the equity in their property, they may be willing to carry some of the financing which will reduce the amount of your down payment

7. Consider different loan programs. 

 

 There are a wide variety of programs that require lower down payments and assist with closing costs. There are also city and county down payment assistance programs you can check into.

 

 

Just remember owing is always better than renting.