There are many different ways to invest in real estate. The more common known due to some of the DYI shows on TV are the rehabbers/flippers and the income/rental properties.
Another way to invest in real estate is tax sales. Continue reading Buying homes through a tax sale
No matter how you twist and turn it, starting over after a divorce is not easy. Not only will be the assets divided but also the liabilities most of the time. Many times, it will hit a woman much harder than a man. Traditionally the man is the one who holds all the credit because traditionally they are the ābread winnersā of the household. This does not hold true 100% of the time but it is close to 95% of the time.
Continue reading Facing the financial aftermath of a divorce, Part 1
Before I continue with this information let me give you a disclaimer; I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.
In one of my blogs I discussed how to keep your home insurance low, but have you ever thought about what should be listed in your policy?
I get it. Some of the polices are written with such fine print that it would take a microscope to read it. How many layman really understand the legal mumbo jumbo contained in their insurance policy. A great Insurance agent can help you navigate the legal wrangling of your insurance contract.
Some things you should look for when you compare insurance policies.
Flood insurance: Many insurance policies do not cover floods of any kind. Even when you are not in a flood zone you might consider adding flood insurance to your policy. Floods not only happen naturally but also could be side effect of developments or construction in the general area.
Does your policy cover to ābringing your property up to codeā in case of damage? Why is that important?
If your home was built 10 to 15 years ago it is possible that it may not meet current local code requirements. During the last 10 to 15 years many zoning ordinances and building codes have changed. To bring a home back up to zoning ordinances and building code standards could be a very expensive out of pocket expense when it is not covered by insurance. Typically, during the rebuilding process, buildings must be rebuilt to the new codes.
Another thing to look for in your policy is liability coverage that covers not only accidents, but also assault and battery. Regardless of how much we like our neighbors, friends, and family, when we invite them over to our home they may bring with them their personal life we might not know about. If they decide to duke out their disagreement on your front lawn you could be liable for damages or injuries they sustain. You need to make sure you are covered.
I would like to add another thought. Just because you paid off your mortgage does not mean you should drop your insurance coverage. What you should do is send a āpaid in full letterā from your mortgage company to your insurance company so they can take your mortgage company off the policy. In some cases they will reduce your payment as long as you are personally occupying the house.
For more information on insurance related items contact your insurance agent or when you are looking to lower your rate contact one of the agents listed on our resource page. For any Real Estate related questions or concerns contact the Settles Team. We are never too busy to answer any of your questions or address any of your concerns.
When you are faced with being forced to sell your home and you do not have the money to invest in repairing it, you may then have to sell it āAS-ISā.
Here are several things you can do to give your home the best chance to sell quickly even if it needs repairs.
Think of what you can do and not what you canāt doā¦ā¦
None of these ideas cost you money and it is possible they may make you some money! (OK one maybe will but only if you have no other option)
In the sellers disclosure identify what needs to be repaired. Better to disclose than to hope the buyer will not see the areas that need attention.
All these ideas, except for putting some of your items into storage, will cost you no extra money you would not be spending anyway. What you will be spending mostly is your effort to get it done.
The faster you can sell your home, the faster you can get back on track, and the faster you might be able to get in to a new home. The longer it takes, the larger the shortfall will be. In this case time is money!!!!
My preferred way to invest in real estate is cash. Many investors do not have that option or they do not have enough cash on hand to finance their investment. For investors like that there are other options out there to make their real estate investment dreams happen.
I am sure you have heard the saying āusing other peopleās moneyā to invest in real estate and that is what I am talking about. Many of you would think of using the banks or credit unions money but creative financing has been a long time a tool in the investorās tool box. There are other ways out there to finance your investment dreams.
Keep in mind that any form of investing comes with risk and before you begin investing you should educate yourself about the different forms of financing. With any real estate transaction it is also advised to contact an experienced and competent real estate attorney and CPA.
When you have found a property to invest in, and you have already found a buyer for the property, before you closed on it you might consider doing a double closing before you get a loan. During the double closing you buy and sell the property at the same time.
One of the options could be seller financing. During the closing not all of the money is collected that is due to the seller. The seller is taking a promissory note and the title is still transferred to the buyer.
Another option is to take over the seller mortgage. Where the buyer agrees in writing to make the sellers mortgage payment directly to the sellerās mortgage servicer. The mortgage servicer has to agree to the arrangement.
You also can use private money to finance your investment. With all of the restrictions that are put on a mortgage servicer for them to be able to write loans, a source of private money would come directly from wealthy investors who are looking for another way to invest their money other than a bank or the stock market.
Another form of investing is the lease option. The key to this form of financing is to already have a second lessee lined up before you finalize your original lease option agreement. This will keep your money out of the deal. How it works is that you lease the property with an option and you turn around and lease the property to another potential buyer. Both of you have the option to purchase the property for a set price within a certain amount of time. Some investors also call this having a note.
When you already have other investment property you might be able to leverage the other property to get a loan to purchase your investments. It has been very popular in the past and not so much in todayās market.
When you have any question about investing in real estate feel free to contact the Settles Team
