Traditional Financing

If one of your strategies is to buy, hold and rent, then using banks may be a safe bet for some of your investment properties. This is a source that can be considered up front when a property is in considerably good condition. Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.
Therefore, you may need to spend a little extra time searching for those diamonds in the rough. Traditional financing is extremely favorable, because you can usually get some of the best interest rates, terms and closing costs when approved. The process certainly will take longer than using cash buyers or hard money lending for example, but it can be worth the wait.

Hard Money Lenders

For those who will either be flipping a property or would need to conduct significant repairs in order to refinance may want to consider building a relationship with a hard money lender. It is advisable to shop around to at least 2 or 3 in your area when possible to see which terms you find to be most favorable.
These loans will come with much higher interest rates (typically 12% or more), points and some type of balloon payment near the end of the agreement. Hard money may be offered for 6 months to a year while the repairs are made, until the home is ready to be sold or refinanced for better rates.
It is important that investors are prepared to either rent out or lease-to-own their property if perhaps the home is unable to sell on the market quickly enough. Also, newbie investors beware! Flipping houses can be more difficult that it may seem, and you must have a solid plan in place so that you are not forced into a tight financial situation.

Private Lending

Before ever considering this option, it is strongly encouraged that you talk with a local attorney that specializes in SEC policies. Laws can vary on a state by state basis, so it is important that you have a good understand of those guidelines before building any relationships with private lenders.
However, when done correctly this can be a powerful resource available to you, that doesn’t require credit checks or adhering to all the strict guidelines enforced on mortgage companies. Private lenders can be nearly anyone who has access to the necessary funds for your purchase (i.e. your doctor, friends, family, or investor club).
Typically private lenders can receive anywhere from around 9% and up for their investment, which is secured by the property and can be a great investment for them based on today’s rates. Loans can be negotiated on a property by property basis so that each investor only funds the deals that they are comfortable with.
With these 3 examples alone, you may have all that is needed to start funding real estate deals. Therefore, take action now and begin building the relationships and networks of lenders that you will need in order to start investing.
Are you in need of referrals? Contact us today to access a list of preferred lenders that we will recommend for your investment business.

Additionally, this is where a financial planning specialist may offer useful insights as well. You may have heard the advice to not put your eggs all in one basket. Therefore, it may even be beneficial to consider pursuing both forms of investments to better leverage your profits.
So our goal is to offer an overview of both sides of the coin in order for you to start forming your own opinion. All in all, it is most important that you proactively take your financial future into your own hands and only pursue the path that you feel will be the best for you and your family.

Benefits of Investing in Land or Real Estate

Many very successful people started out their investing careers in real estate. Plus regardless of what happens in the economy, it is factual that people will always need a place to live. Homes very rarely decrease in value when they are well maintained and purchased correctly.

In addition, land can be an extremely lucrative investment since the world’s population continues to increase, and as a result the demand for land used by residential, commercial and retail entities is always on the rise as well.

With real estate you are offered something that is tangible and can be easier to calculate your due diligence. In other words, after reviewing the property specs with appraisers and inspectors, you have a fairly good idea of what you are getting into.

Downside of Real Estate Investments

First of all, there is typically a lot more time and energy invested in managing your investments. Whether you are renting your property out to tenants or keeping your lots clean and free of debris and coding violations, this is something you will be much more actively involved in.

Next, real estate always has some sort of cost involved. Regardless of what you decide to do with your properties, you will still be responsible for taxes, insurance, utilities, repairs/maintenance and possible a host of other expenses. Plus you can end up overspending and losing your shirt.

Finally, you have to have the proper investment strategy in place. Although real estate has historically been a strong hedge against inflation, you always need to consider your own local trends so you can properly leverage your investments to realize a strong ROI.

Benefits of Investing in Stocks

Unlike real estate, this is an investment that can be essentially placed on autopilot. Aside from keeping an eye on your portfolio for rises and dips, you can leave the management and operation of each entity up to the professional staff. You own a piece of each company without having to work for it.

Even with the Great Depression and other scares that we have witnessed over the last century, stocks have historically proven to be the best return on investment for those who hold on through the tough times and invest their returns properly.

Additionally, it typically doesn’t take a huge upfront investment to get involved in the market, and this is very beneficial for those who don’t have a lot of cash on hand. As long as you choose the right companies, earnings will continue to increase. Selling your stocks is also infinitely easier than listing a property or land for sale as well.

Downside of Stocks

On the other hand, the greatest benefits of stocks can sometimes be the most detrimental weaknesses. For example, though you do not need to actively invest sweat into each company, you are also leaving your finances in the hands of a management team that dictates how things operate.

Therefore, if business takes a nosedive so do your stocks. Some will recover while others may crash and burn. Also, this can be a very emotional game. Especially for those who are getting closer to retirement, the couple scares that we have witnessed in the last decade caused many people to pull out at huge losses.

Finally, stocks can be a lot more unpredictable, especially if you are jumping on the bandwagon of rising trends or promising starter companies. Though some may end up being a homerun, you are always listening to the speculations of gurus or your own gut feeling. Alternatively, real estate can typically be more accurately measured.
In conclusion, it important that you take the time to assess the investment opportunities that are available to you before making any decisions. It is important to look out for your financial future and well being, and we’re here to support you along the way.

If you need more information about how you can get started investing in real estate or land, and want to discover the options available in our local area, take the time to contact us today. We look forward to doing business with you!

However, if you are considering a foreclosure property for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. Let’s review some areas to be aware of before making any serious offers.

1.  Avoid Making Emotional Offers: When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.

Too many buyers will think that they found a slamming deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2.  Estimate Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make:

• Is this neighborhood a desirable location and how are crime rates?
• What schools would be available for my kids or future buyers?
• Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
• How long do I plan on living there and how could that affect things?
• What type of appreciation should I expect?

3.  Get Pre-approved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!

4.  Get Professional Help: Not only should you seek the expertise and of an experienced real estate agent, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure.
Therefore, we encourage you to give us a call today to get started. Our agents have years of experience assisting other clients with buying foreclosures for their next home or investment property. Discover how we can help you to make a smart and profitable investment as well!

What is a short sale?

A short sale means that you sell your home for the best price available in the current market, and ask the lender to accept the lower amount in full settlement of the mortgage debt.

The short sale process can be confusing, but it basically comes down to three key stages:

1. Prepare Your Case: Although there are signs that changes may be in the offing, at the moment it is necessary to prove to the bank that you are suffering “hardship”. This may be due to a number of reasons, including the loss of a job, illness, death in the family or a divorce. You must also prove this hardship to the lender, so you need to gather a number of documents such as pay slips, tax records and bank statements, and write a letter describing your circumstances. Most lenders have a package that they can send you, detailing their specific requirements.

2. Start the Process: You need to submit all the documents to the lender and list your home for sale. The listing agent will prepare an assessment of current market value, called a BPO (Broker’s Price Opinion) and will add that to the details provided to the lender. The lender will also carry out a BPO to confirm an appropriate selling price.

3. Sell the Home: Your listing agent will market the home and bring your any offers that are received. Once a contract has been ratified it will be sent to the bank for approval. Although the sale has to be
agreed by the seller, it cannot be completed until the bank has signed off on it. This stage, lender approval, can take up to 2 or 3 months, so potential buyers need to be prepared to wait.

So, the short sale process is not easy, but in many cases it is the best answer for anyone who is upside-down on their loan. The key is to use an agent with local knowledge and who understands the special needs of the short sale process.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you. Chris (540) 538-9928.

This time of year is celebrated by the annual Redbud Festival in Browntown, VA. The festival starts at 9:00 a.m. on Sunday, April 22, 2012, and it has something for everyone.

One of the biggest attractions of the day is the silent auction, offering gift certificates from local businesses, antiques and new items. There will also be stalls offering hand-made local craft items as well as a bake sale with delicious homemade cakes, cookies and desserts.

You can also see old-time craft demonstrators such as a blacksmith, a potter, a chair-caner, a quilter and a basket-maker. You can also watch demonstrations of woodworking, penny rug making and hand-spinning.

Another popular event at the Browntown Redbud Festival is the annual house tour, which begins at 10.00 a.m. This year you can tour three private residences for $8 per person ($15 for two):

• “Mount Echo” at Boyd’s Mill. Originally built of logs around 1790, it was the home of John Hambaugh, who was thought to have built the grist mill later known as Boyd’s Mill.
• “Full Circle Farm”. Built in 1831 as the miller’s house at Boyd’s Mill. Original features include the wood siding, wide plank hearts of pine floors, a springhouse, and summer kitchen.
• “Brandy Patch Farm”. Constructed in 2005 by Warren Fairfax on a 50-acre tract once owned by his ancestor, Lord Fairfax. Every room offers panoramic views of the Blue Ridge Mountains and rolling pasture.

There are also free tours of the historic Dr. Updike/Browntown Post Office, and the South River Primitive Baptist Church (Agape Church).

Don’t miss the Gooney Creek Duck Race – you can buy the number of a rubber duck for $5, and the winning duck gets its owner a cash prize.

Admission to the Redbud Festival is free, and food is available throughout the day.

Directions:
From Front Royal: Route 340 South, left on Route 649, Browntown Road, for about 9 miles – the Community Center is on the left.
From Luray: Route 340 North, right on Route 613 at Bentonville, about 5 miles into Browntown, over the small bridge, turn left and the Community Center is on the right.

A FHA 203k loan can be anywhere from a minimum of $5,000 to a maximum of $35,000 and it can cover a wide range of updating and/or repairs to your home. It can also be used to buy a property that needs rehab work and therefore can’t qualify for a conventional loan.

These are just a few of the projects that could be eligible for a 203k loan (or a 203k Streamline loan – also called a FHA 203b loan):

* Roof replacement
* Kitchen remodeling and new appliances
* New flooring
* HVAC and mechanicals replacement
* Deck, porch or patio additions
* Siding, window and door upgrades
* Painting inside and out
* New sewer lines, etc.

You are not limited to only one of these projects at a time, as long as the total doesn’t exceed $35,000 you can do as many of them as you like, at the same time.

There are various requirements that must be met, but they are not onerous. You must live either live in the property, or intend to live in it, and you need to be able to put down 3.5% if it is a new loan or, for an existing loan, the total including repairs cannot exceed 96.5%.

Contact us for more details and a list of properties that would qualify for a FHA 203k loan.

One of the big advantages of buying HUD homes is that anyone can buy one; there are no limitations on income and in some areas there are programs that allow a down-payment as little as $100.

So what is a HUD home?

It will be a one-to-four unit, single-family home that has been foreclosed on at a court house auction that had a mortgage backed by the Federal Housing Administration (FHA) .

Because it is a foreclosure, it may need some renovation to bring it up to a good standard, but the price asked for it will reflect that and some real bargains can be found.

HUD homes can be particularly attractive to firefighters, EMTs, police officers and teachers because they qualify for HUD home discounts – what used to be called “The Good Neighbor” program.

Properties that need rehabilitation can also qualify for special loan programs to assist with the work, making these HUD homes very attractive propositions for owner occupants and investors.  Owner occupants have an advantage over investors in that bids are only accepted from owner occupants for the first 30 days.  After that time investors are also allowed to bid.

One of the big attractions to investors is that there is no limit on the number of HUD homes they can buy, allowing people to build up a portfolio of homes that offer a great return of investment.

To find out how to buy a HUD home at the best price, and to get a FREE list of those available right now, call Curtis Siever on (540) 671-6635, or click here –>Free HUD Homes Listings.

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage.

HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

The following information is provided as an introduction to the process through which HUD homes can be purchased.

Who Can Buy a HUD Home

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

How Do I Buy a HUD Home?

If you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. The broker must be registered with HUD and have an NAID certification number.

For more details call Curtis Siever on (540) 671-6635