I am focusing this morning on heros. Not the TV show, by the way. A few of my personal heros are Warren Buffet, Jimmy Carter (for his humanitarian efforts), Chris Christie (Governor of NJ), Tony Robbins (Motivational Speaker), Hillary Clinton and Harvey Milk to name a few.
However, those heros are public celebrities more or less. I have many heros in my life who aren't celebrities. For instance, I know several ladies who are fighting or have overcome cancer. While these people aren't on the TV everyday, their brave fight inspires me and makes me appreciate how precious life is. They are brave beyond my imagination; they are stronger then even they knew. I am proud and grateful to call them my friends.
Yes, there are heros all around us. From the men and women fighting for our country to the folks fighting an aggressive illness; heros are everywhere. Although they do not ask for admiration, they most certainly deserve it.
While this blog is typically about real estate, sometimes I find it more important to remind the heros in my life how much I admire them. If you have a hero in your life, you should tell them so. Sometimes, it may come when they really need it.
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Home Buying
When I was a youngster, I remember new home signs all over Houston that read "From the 40's". Now, that was more than a few years ago and you can't buy a new home in the forty thousand dollar range any longer, but there are still great deals out there.
Remember, when homes were that low, the interest rate was around 15% and folks were still buying like crazy. Now, interest rates are staying low (around 5.75%). Although credit is a little harder to get than before, but if you have a fairly good credit rating 620 or above, you can buy and pay about the same or less than you would renting.
I believe folks are more cautious about buying than ever before. I suppose it has a lot to do with our somewhat sketchy economy and the lack of stability in the job market. I usually recommend to my clients to buy less than they can afford so that they can not only build wealth, but be prepared for emergencies. Too often I see a person that has been approved for $200,000 but wants to spend $220,000.
The bottom line is spend wisely, but remember buying a home is still a great way to add stability to your life and your financial portfolio.
Remember, when homes were that low, the interest rate was around 15% and folks were still buying like crazy. Now, interest rates are staying low (around 5.75%). Although credit is a little harder to get than before, but if you have a fairly good credit rating 620 or above, you can buy and pay about the same or less than you would renting.
I believe folks are more cautious about buying than ever before. I suppose it has a lot to do with our somewhat sketchy economy and the lack of stability in the job market. I usually recommend to my clients to buy less than they can afford so that they can not only build wealth, but be prepared for emergencies. Too often I see a person that has been approved for $200,000 but wants to spend $220,000.
The bottom line is spend wisely, but remember buying a home is still a great way to add stability to your life and your financial portfolio.
Thursday, July 22, 2010
Foreclosures
As many of you may know, I handle foreclosures for several major banks. Foreclosures can be a great value as they are typically priced below non foreclosures. However, there seems to be some confusion over foreclosure pricing.
Foreclosures are also known as REO properties. It seems many buyers think that an REO (Real Estate Owned) property listed at $100,000 by the bank will sell for $70,000 or below. This is not the case. REO's are already usually priced below their market value and the bank has had their REO Broker, in this case me, due a BPO (Broker Price Opinion) to help set the price. Then they follow up on my BPO with an appraisal. They use the experience of the real estate Broker to aid in pricing the property where it will sell within 90 days or less.
So, I regularly see offers from investors for pennies on the dollar that the bank flat out rejects. These investors are under the impression buying a foreclosed property listed with a Broker is the same as buying one from a tax sale, let's say. At a tax sale, investors can sometimes buy REO's for pennies on the dollar. This is a very common mistake.
If you are in the market for a foreclosure, you can get a very good deal. However, your agent should always do a market analysis prior to your offer so you are assured you are getting the good deal it appears to be. After all, there are overpriced foreclosures, just like any other home. Sometimes, the bank has been given bad pricing advice from their agent and therefore the price is off. It is difficult to get a bank to accept less than what their agent has said it is worth. In those instances, you are probably better off looking for another property.
In closing, my team and I are happy to help you in your home search including bank owned properties. Part of our standard practice is to make sure the home you are buying is priced correctly whether it is a foreclosure or not. We are locally owned and operated and specialize in the Pearland and surrounding areas. If you have questions prior to buying, give us a call anytime as we welcome your questions either through email or phone. The road to home ownership is not as long as you think...we can help. Thanks for reading my blog.
Foreclosures are also known as REO properties. It seems many buyers think that an REO (Real Estate Owned) property listed at $100,000 by the bank will sell for $70,000 or below. This is not the case. REO's are already usually priced below their market value and the bank has had their REO Broker, in this case me, due a BPO (Broker Price Opinion) to help set the price. Then they follow up on my BPO with an appraisal. They use the experience of the real estate Broker to aid in pricing the property where it will sell within 90 days or less.
So, I regularly see offers from investors for pennies on the dollar that the bank flat out rejects. These investors are under the impression buying a foreclosed property listed with a Broker is the same as buying one from a tax sale, let's say. At a tax sale, investors can sometimes buy REO's for pennies on the dollar. This is a very common mistake.
If you are in the market for a foreclosure, you can get a very good deal. However, your agent should always do a market analysis prior to your offer so you are assured you are getting the good deal it appears to be. After all, there are overpriced foreclosures, just like any other home. Sometimes, the bank has been given bad pricing advice from their agent and therefore the price is off. It is difficult to get a bank to accept less than what their agent has said it is worth. In those instances, you are probably better off looking for another property.
In closing, my team and I are happy to help you in your home search including bank owned properties. Part of our standard practice is to make sure the home you are buying is priced correctly whether it is a foreclosure or not. We are locally owned and operated and specialize in the Pearland and surrounding areas. If you have questions prior to buying, give us a call anytime as we welcome your questions either through email or phone. The road to home ownership is not as long as you think...we can help. Thanks for reading my blog.
Tuesday, July 20, 2010
My Political Opinions
Let me preface this blog by stating I am a Democrat, however I am on a tear this morning...
I am very frustrated with this administration at the moment. First of all, who really knows what is in the new health care package that has been implemented? It is over 2000 pages which seems a little ridiculous to begin with. I am a Independant Contractor so I pay for my own health care, and I was somewhat optimistic at the beginning. However, this is starting to seem like a nightmare now. We were promised by this administration that we would be able to keep our own doctor, however, that is not looking to be the case at the moment. We still aren't sure how much this is going to cost each of us, then on top of that, there were several bills that made it into law by "piggybacking" onto this bill. One of the craziest is folks like me will have to 1099 each vendor if we spend $1000 or more per year. That means if I buy a thousand dollars worth of copy paper over the course of the year, I will have to 1099 Office Depot. Talk about an accounting nightmare! Oh, then, members of Congress have made themselves exempt from the Healthcare Reform and they can retire after one term and keep the same pay for life! What?? We weren't given a vote on this of course.
Another issue that bothers me is the Stimulus package. I am still not sure how a few hundred dollars was supposed to help those in need. In my opinion, that was a huge waste of money. The old adage 'Give a man a fish, he eats for a day...teach a man to fish he eats for life" would seem to apply. That money should have been used to re-train those out of work, not give them enough money for a couple of days. Spending seems out of control and the economy has certainly been better. You can feel that there is less optimism now than before about the future. That has me worried...
I also realize the budget will never be balanced while there is a war going on...no to mention two wars. However, I believe we are heading in the wrong direction. This makes being a Democrat a little difficult at the moment. I am hopeful that either we will get a new person in the White House next term, or we see a radical shift in policies. This is my opinion and you are welcome to submit yours or make comments about this blog as I welcome all.
I am very frustrated with this administration at the moment. First of all, who really knows what is in the new health care package that has been implemented? It is over 2000 pages which seems a little ridiculous to begin with. I am a Independant Contractor so I pay for my own health care, and I was somewhat optimistic at the beginning. However, this is starting to seem like a nightmare now. We were promised by this administration that we would be able to keep our own doctor, however, that is not looking to be the case at the moment. We still aren't sure how much this is going to cost each of us, then on top of that, there were several bills that made it into law by "piggybacking" onto this bill. One of the craziest is folks like me will have to 1099 each vendor if we spend $1000 or more per year. That means if I buy a thousand dollars worth of copy paper over the course of the year, I will have to 1099 Office Depot. Talk about an accounting nightmare! Oh, then, members of Congress have made themselves exempt from the Healthcare Reform and they can retire after one term and keep the same pay for life! What?? We weren't given a vote on this of course.
Another issue that bothers me is the Stimulus package. I am still not sure how a few hundred dollars was supposed to help those in need. In my opinion, that was a huge waste of money. The old adage 'Give a man a fish, he eats for a day...teach a man to fish he eats for life" would seem to apply. That money should have been used to re-train those out of work, not give them enough money for a couple of days. Spending seems out of control and the economy has certainly been better. You can feel that there is less optimism now than before about the future. That has me worried...
I also realize the budget will never be balanced while there is a war going on...no to mention two wars. However, I believe we are heading in the wrong direction. This makes being a Democrat a little difficult at the moment. I am hopeful that either we will get a new person in the White House next term, or we see a radical shift in policies. This is my opinion and you are welcome to submit yours or make comments about this blog as I welcome all.
Sunday, July 18, 2010
OPEN HOUSES TODAY
11501 Bay Crossing - $284,900
I wanted to take a moment and invite all of you out to my two open houses today from 2pm until 4pm. The first is a beautiful home in Shadow Creek Ranch. This Meritage home was built in 2005 and features a 3-car garage and has over 2900 sq ft. In the back yard, this home has a heated in-ground pool and spa and still has a full back yard because the lot is over 11,000 square feet.
3326 Southdown - $164,900This home is located in Southdown and has over 2300 sq ft. Nice landscaping as well as a great corner lot, this home was built in 2000 and has an upstairs gameroom as well as 3 bedrooms with the master downstairs. This home has fresh paint and carpet and is ready for move-in. Come tour this home today from 2pm until
4pm; hope to see you there.
Friday, July 16, 2010
Saving $$ on Your Mortgage
I know I speak quite a bit about how to save money, but this is a topic that seems to interest most folks. Many of you that own homes have a 30 year mortgage. Did you know that if you have your mortgage company set up bi-weekly payments instead of monthly, you pay one full extra payment towards your principle each year? This is a great way to pay down what is probably your largest debt. Not to mention you will save yourself thousands of dollars over the course of the loan.
The way this works is your payment is broken into two separate withdrawls (2x month) that total your monthly payment you are already paying. To get started, contact your lender and tell them to get you want to start paying bi-weekly payments. Sometimes lenders charge a fee to set this up for you, but this cost would certainly be worth it for all of money you will save.
The way this works is your payment is broken into two separate withdrawls (2x month) that total your monthly payment you are already paying. To get started, contact your lender and tell them to get you want to start paying bi-weekly payments. Sometimes lenders charge a fee to set this up for you, but this cost would certainly be worth it for all of money you will save.
Tuesday, July 13, 2010
Investing Part 2
I am going to touch on real estate investing this morning. I am thinking about putting on a class about buying your first investment property, but for now, my blog will have to do.
Nowadays it costs a little bit more upfront than it did before to buy an investment home, as banks and mortgage companies want more down to secure the note. About the minimum I have been able to find is 10% down. Now, this doesn't cover everything...only your down payment, but you can finance in the rest.
The first thing to do when looking for a rental property is figure out how much you will make factoring in for at least 1 month per year vacancy. That is where I come in. I will run all of those numbers for you and together, we will find the best house (or condo) to fit your needs. I recommend looking into foreclosures as you could do (or have done) the repairs if needed, to make it ready for occupancy. Foreclosures also are usually a better value and are great for a first-time investor.
Once we find the property, I will refer you to to a mortgage company or bank that will be able to help you. I recommend starting out small, so $50,000 to $70,000 would be about the best number to spend on your first rental home. Another good reason is you would only need to have $5,000 to $7,000 to put down and you can finance in the rest. The rest would be the prepaids, insurance, tax prorations, etc. If you have a bank that you work with, you can probably get a better deal as you won't have to pay closing costs.
Finally, once all of this is complete, now you are ready to put the home on the market for lease. I can help with that as well. My firm will run a credit and background check to make sure you aren't getting a dud. Once that is complete, you and the new tenant sign the lease and voila...you are a landlord. The best part is, you have someone else making your payments for you. If you only do a 15 year note, then in 15 years you own the property outright with no mortgage! Can you think of a better way to build wealth?
Lastly, real estate is a solid investment opportunity and over time will help you build wealth. I will be there to guide the through the entire process and make sure all of your questions are answered.
Nowadays it costs a little bit more upfront than it did before to buy an investment home, as banks and mortgage companies want more down to secure the note. About the minimum I have been able to find is 10% down. Now, this doesn't cover everything...only your down payment, but you can finance in the rest.
The first thing to do when looking for a rental property is figure out how much you will make factoring in for at least 1 month per year vacancy. That is where I come in. I will run all of those numbers for you and together, we will find the best house (or condo) to fit your needs. I recommend looking into foreclosures as you could do (or have done) the repairs if needed, to make it ready for occupancy. Foreclosures also are usually a better value and are great for a first-time investor.
Once we find the property, I will refer you to to a mortgage company or bank that will be able to help you. I recommend starting out small, so $50,000 to $70,000 would be about the best number to spend on your first rental home. Another good reason is you would only need to have $5,000 to $7,000 to put down and you can finance in the rest. The rest would be the prepaids, insurance, tax prorations, etc. If you have a bank that you work with, you can probably get a better deal as you won't have to pay closing costs.
Finally, once all of this is complete, now you are ready to put the home on the market for lease. I can help with that as well. My firm will run a credit and background check to make sure you aren't getting a dud. Once that is complete, you and the new tenant sign the lease and voila...you are a landlord. The best part is, you have someone else making your payments for you. If you only do a 15 year note, then in 15 years you own the property outright with no mortgage! Can you think of a better way to build wealth?
Lastly, real estate is a solid investment opportunity and over time will help you build wealth. I will be there to guide the through the entire process and make sure all of your questions are answered.
Thursday, July 8, 2010
Investing 101
While the talk of investing makes some nervous, I thought I would touch on the subject today. Warren Buffet is one of my heros and one of his mottos is to have an earnings bucket and an investment bucket. I like that idea.
First, many ask "What is the difference between a stock and a bond?" Well, a stock is a share of a company and a bond is a debt investment to which an entity borrows money for a specific amount of time at a certain interest rate.
Now, with that said, how to start investing is what I am going to speak about today. I have discovered a company called "Foliofn" that is one of the best I have seen. It allows you to buy percentages of stock at what ever rate you can afford. Now, that is not all that new, but the best part is they have "ready to go Folios" that are preselected based on their performance and the risk level you want. Because the Folio has approxmately 20 stocks, your investment is diversified which allows to you minimize your risk.
One thing to remember, the money you invest in the stock market is not protected by FDIC like it is in the bank. A good idea would be to start slow and build up as your confidence increases. Remember, you can start by investing $20.00 per month or something until you feel you have a little more experience.
The stock market is just one way to invest your money. If your company offers a 401K, this is one the best ways to invest especially if they have company matching. Tomorrow I will cover investing in real estate which is a topic near and dear to me and the ways I can help you build wealth over time by buying a rent home.
First, many ask "What is the difference between a stock and a bond?" Well, a stock is a share of a company and a bond is a debt investment to which an entity borrows money for a specific amount of time at a certain interest rate.
Now, with that said, how to start investing is what I am going to speak about today. I have discovered a company called "Foliofn" that is one of the best I have seen. It allows you to buy percentages of stock at what ever rate you can afford. Now, that is not all that new, but the best part is they have "ready to go Folios" that are preselected based on their performance and the risk level you want. Because the Folio has approxmately 20 stocks, your investment is diversified which allows to you minimize your risk.
One thing to remember, the money you invest in the stock market is not protected by FDIC like it is in the bank. A good idea would be to start slow and build up as your confidence increases. Remember, you can start by investing $20.00 per month or something until you feel you have a little more experience.
The stock market is just one way to invest your money. If your company offers a 401K, this is one the best ways to invest especially if they have company matching. Tomorrow I will cover investing in real estate which is a topic near and dear to me and the ways I can help you build wealth over time by buying a rent home.
Wednesday, July 7, 2010
Value of Home Ownership
While the tax credit is gone, there are many reasons to buy vs renting. When you rent a home, of course, it isn't yours, but also there many additional advantages to home ownership as well.
Many folks are intimated by the whole process and rent rather than trying to buy. Of course, we can help with that too! However, when you rent a home you pay and pay but never gain equity. You also are certainly not building wealth by renting like you would if you were buying and paying on a mortgage. Every month when you make a payment, you are paying down your principle and over time your home also will increase in value. This certainly does not happen in a tenant situation...unless you are the landlord.
Also, since the property isn't yours, you follow someone else's rules instead of your own. When buying your home, if you stay in your home from five to seven years, you should be able to sell it for more than you paid for it. Also, should you decide to, you could always rent your home out and have your tenant make your payments for you by paying their rent.
I would love to speak with you about this and any topic listed in my blog. Remember, when selling your Pearland home, always use a Pearland Realtor. At The Top Properties is located right in the heart of Pearland, TX. We are your local "in town" real estate office ready to help you. Check us out at http://www.mytopagent.org/. 713-256-1297
Many folks are intimated by the whole process and rent rather than trying to buy. Of course, we can help with that too! However, when you rent a home you pay and pay but never gain equity. You also are certainly not building wealth by renting like you would if you were buying and paying on a mortgage. Every month when you make a payment, you are paying down your principle and over time your home also will increase in value. This certainly does not happen in a tenant situation...unless you are the landlord.
Also, since the property isn't yours, you follow someone else's rules instead of your own. When buying your home, if you stay in your home from five to seven years, you should be able to sell it for more than you paid for it. Also, should you decide to, you could always rent your home out and have your tenant make your payments for you by paying their rent.
I would love to speak with you about this and any topic listed in my blog. Remember, when selling your Pearland home, always use a Pearland Realtor. At The Top Properties is located right in the heart of Pearland, TX. We are your local "in town" real estate office ready to help you. Check us out at http://www.mytopagent.org/. 713-256-1297
Tuesday, July 6, 2010
Home Staging
Many folks ask me about staging when I list their homes for sale. Since this is such a common question, I decided to touch on a few points in my blog. You don't necessarily need a professional stager if you follow some basic tips.
1) Put up all personal pictures of you and your family. The buyer needs to be able to picture themselves in your home.
2) Put up all bric-a-brac and leave your home looking clean and neat with minimal personal items.
3) If you have dogs or cats, do not let them stay in the house while it is being shown. Many buyers have allergies and do not like the idea of an animal in their potential new home.
4) Make sure your home smells clean. The sense of smell is one of the first impressions your home will make, so make it a good one. Leave plug-ins around the house if possible to remove any stale odors.
5) Do a thorough cleaning of your home prior to it being shown if possible. The neater and cleaner it looks, the better your chances of selling it.
Finally, if you still feel you need a professional stager to come in, I will help you as I have contacts in that area as well. If you have questions about this or any other topic on my blog, call or email me anytime...I would love to hear from you.
1) Put up all personal pictures of you and your family. The buyer needs to be able to picture themselves in your home.
2) Put up all bric-a-brac and leave your home looking clean and neat with minimal personal items.
3) If you have dogs or cats, do not let them stay in the house while it is being shown. Many buyers have allergies and do not like the idea of an animal in their potential new home.
4) Make sure your home smells clean. The sense of smell is one of the first impressions your home will make, so make it a good one. Leave plug-ins around the house if possible to remove any stale odors.
5) Do a thorough cleaning of your home prior to it being shown if possible. The neater and cleaner it looks, the better your chances of selling it.
Finally, if you still feel you need a professional stager to come in, I will help you as I have contacts in that area as well. If you have questions about this or any other topic on my blog, call or email me anytime...I would love to hear from you.
Monday, July 5, 2010
Mortgage Shopping and What You Need to Know
If you are shopping for a mortgage, here are some things you should know.
First, there are differences between mortage brokers and mortgage bankers. A mortgage banker actually lends the money, while the mortgage broker works with many banks to find the best deal but doesn't actually lend the money. Mortgage brokers work as middlemen of sorts.
Mortgage brokers work with many lenders and have better luck getting those with credit issues through since they have several lenders to choose from, where the mortgage broker only has one. The mortgage broker also can shop rates and find the best loan to fit your need. I have a mortgage broker that I work with that has been able to close loans that the banks won't touch.
However, aside from my contact, I see many more problems with loans where the borrower used a mortgage broker. But, needless to say, there are thousands of mortgage brokers out there and many aren't a reputable as my contact. And, if there is a problem at closing, I feel much more comfortable working with someone who directly lends the money rather than a middleman.
Finally, there is also a cost to working with a mortgage broker vs a banker. They typically charge more fees such as higher discount points and other fees than a mortgage banker. So, if I have a person who is credit challenged, I send them to my mortage broker as I know she can get it done where many mortgage bankers have denied the loan. However, if you have good credit, you are probably better off using a mortgage banker vs a mortgage broker.
Remember, My team and I will do our best to help you find the best lender for your specific needs...just go to www.topmike.com
First, there are differences between mortage brokers and mortgage bankers. A mortgage banker actually lends the money, while the mortgage broker works with many banks to find the best deal but doesn't actually lend the money. Mortgage brokers work as middlemen of sorts.
Mortgage brokers work with many lenders and have better luck getting those with credit issues through since they have several lenders to choose from, where the mortgage broker only has one. The mortgage broker also can shop rates and find the best loan to fit your need. I have a mortgage broker that I work with that has been able to close loans that the banks won't touch.
However, aside from my contact, I see many more problems with loans where the borrower used a mortgage broker. But, needless to say, there are thousands of mortgage brokers out there and many aren't a reputable as my contact. And, if there is a problem at closing, I feel much more comfortable working with someone who directly lends the money rather than a middleman.
Finally, there is also a cost to working with a mortgage broker vs a banker. They typically charge more fees such as higher discount points and other fees than a mortgage banker. So, if I have a person who is credit challenged, I send them to my mortage broker as I know she can get it done where many mortgage bankers have denied the loan. However, if you have good credit, you are probably better off using a mortgage banker vs a mortgage broker.
Remember, My team and I will do our best to help you find the best lender for your specific needs...just go to www.topmike.com
Thursday, July 1, 2010
Tax Credit Closing Date Extension
Well, it seems like the tax credit extension is going to pass afterall. All that is left now is the President to sign the bill which is expected as early as this morning.
This is great news for those who got caught in the red tape of tring to close their loan by June 30th and couldn't. FHA financing takes longer to close than before and many of those buyer's would have missed out. The new expiration will be September 30th.
If you are looking to move up or scale down, call us, we can help...mytopagent.org
This is great news for those who got caught in the red tape of tring to close their loan by June 30th and couldn't. FHA financing takes longer to close than before and many of those buyer's would have missed out. The new expiration will be September 30th.
If you are looking to move up or scale down, call us, we can help...mytopagent.org
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