Building your Rental Portfolio: Part 2 Buying Property

For this post we will assume that you already own a property and it may or may not meet your families current needs.

First let’s talk about a good option if you have started to outgrow your current house or  you are ready for an upgrade for any other reason. What do you need to know to get the next house purchased?  Well for a home purchase we always start at the same place, financing.  How do you get the money to purchase the house.  Well, it’s pretty similar to the way you bought your first house with a few exceptions. The largest one being that you will need to be able to, on paper, afford the loan on both properties.

Well dah, but what does that really mean?  It means that your debt to income ration has to be such that you have enough monthly income to pay both loans. This can be a little more complicated than it first appears but the best thing to keep in mind to help your self be ready to buy is to keep your monthly revolving debt bills as low as possible

I personally HATE “bad” debt.  What that means to me and most lenders is debt that that is not backed by an appreciating asset.  This dept is car payments, student loans, credit card payments, etc.   I have never had a car payment in my life and I probably never will.  If you know me you know I do not drive an expensive car like most realtors.  I just can’t stand the debt on a non-appreciating asset.  I feel a bit different about student loans because education is important and it often means that you have the ability to make a larger income and that is a good thing because it adds to your ability to purchase anything including “good” debt. So what is good debt? Well for me it is debt on an asset that has the ability to appreciate in value. REAL ESTATE!

For most borrowing purposes the amount you can borrow to purchase a home is based on the loan type and your credit score. Lately your total monthly debt can not exceed 45% give-or-take.  The kicker hear is that it includes the dept you intend to incur to purchase the new property. So the math on this is, if you make $4,000 dollars per month than ALL your monthly debt can not exceed $1800 per month.  Well that’s not all that much if we are talking about the cost of two houses.  The good news is there can be a bit of a loophole here.

For the last few years mainly the years we were in, and recovering from, the Great Recession this loophole was closed to us but now it’s back.  So what is this magical loophole that can fix this potential stumbling block?  It is a lease on the house you already own.  If you can get your current home leased while you are in the process of buying your next house it can help offset the debt of the currently owned property.  So let’s say that your current home has a $1200/month mortgage and you can rent it for exactly $1,200/month.  Well that does not sound that great (and by the way it will likely rent for more than that, but like it often is, that’s an entire post all in itself and we will not cover it here and now) but with the loophole it is great!  So most lenders will allow the amount of the lease to “cancel out”  75% of the debt it covers.  What’s this mean?  It means that the $1200 lease will cancel out $900 of debt. So instead of being able to buy a property that is $600/month you now can buy a house that is $1500 (this math is assuming you have no other monthly debt). **This information is only semi-accurate because of recent changes made to lending guidelines but is still the best and easiest way to get the point across**

So now you have your current house leased and you get to buy a new house that is a bit larger and nicer. That’s what I call a win! If you read or watched my last post you will also realize that you will get to buy your new place with an easier to get and lower interest rate owner occupant loan. Another WIN!

Now if you do not want to move out of your current house, no big deal. You just will not get to “cancel out” the debt as above and you will not get to use owner occupant financing.  The big difference there is you will need a lot more money down, usually 20%-25%.

The other thing that is true of either situation is you will need reserves, usually six months. Reserves is just a lender way of saying enough money in savings to pay both mortgages for a given time period, again, usually six months.  For our hypothetical situation above you would need $16200 in reserve.  You will also need the amount of money for the down payment on the purchase.  That will vary from $0 to many thousands depending on the loan type.  Most people will be able to get a conventional loan with as little as 3% down but 5% is more likely.  So on a $300,000 house that is $9000-$15000.

I love helping people get started on this path. It really is a great way to start building wealth, retirement, a college fund, you name it!

 

 

All information above is for educational purposes and will need to be verified with your realtor, hopefully me, and a good lender!

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

June Real Estate Advisor

Real Estate Advisor: June
Real Estate Advisor: June 2016
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Finances and Buying a Home
Home ownership has always been a top dream for millions of Americans, and with the many television shows, magazines and other media geared toward owning a home in the U.S., buying a home is very much a reality in our country.

While we can get caught up in the very fun aspect of looking at homes, browsing the many websites dedicated to real estate, looking for a home or property is just one aspect in the entire home buying process. One part, of which is fairly important and might be casually looked over at the beginning, is that of getting one’s finances in order to begin a home search. Finances are a huge part of buying, especially if you’ll be applying for a mortgage loan. To put yourself in a great position before you begin your home or property search, use the tips below regarding credit, a home budget and having cash for a down payment and closing costs to help you ensure you have your bases covered before you begin your property search.

Credit

One of the most important aspects of your finances when it comes to buying a home, or even in general, is your credit. Your credit is your ability to obtain goods or services before payment. Credit, when it comes to home ownership, generally means a mortgage loan. The majority of buyers in the United States will have to obtain a mortgage loan in order to purchase a home or property, and that’s ok. Mortgage loans have been around for decades, helping buyers who might not have a cash payment be able to afford a home. If you are one of the thousands of home buyers that will need to look into a mortgage loan, getting your credit in order before looking at homes is an excellent step to take in getting your finances in order.Your credit is made up of your credit score and your credit report. A credit score is a three digit number that is generated based on what is in your credit report, and it basically tells banks and other lenders what your creditworthiness is. In general, a higher credit score means better creditworthiness. Your credit report is a detailed report of your credit history, and the information is used to generate your credit score.

When most people consider buying a property, one of the first things that’s suggested is to get one’s credit in order. This can mean a number of things, but it includes running a credit report, checking a credit score, and paying off or paying down any debts that might be outstanding in order to have a better credit score and higher creditworthiness. If you’re looking at buying, run your credit report to make sure it’s current, up-to-date and that there’s nothing ‘off’ on the report. You want to make sure all the information that’s listed is true and only pertains to you.

Budget

We all can get wrapped up in the fun and excitement of property searches, and many times our wants and likes go beyond what our budgets can afford. Once you have your credit in check, the next thing to do is determine your budget. The best advice to heed when thinking about a budget: you want to be financially comfortable. You already know your monthly expenses as a non-homeowner, but if you don’t, dedicate some time to sitting down and writing out all your monthly expenses to get an idea of how much you or your household spends each month. Compare this number to the amount of money you bring in each month. If you’re already renting, you know how much of your income goes toward your rent, renters insurance, and any other expenses that come along with your rental unit.If you don’t rent, once you have all of your spending written out, you’ll have a good understanding of how much you have left each month that can go toward a mortgage payment or toward a down payment. An excellent tool that can be found on the Internet is a Home Affordability Calculator – this helps to determine a comfortable monthly payment based on all of the other recurring expenses a household might have.

Cash for a Down Payment and Closing Costs

Another part of finances when it comes to buying a home or property is a down payment and closing costs. You’ve made sure your credit is in order; you’ve figured out a comfortable budget for a monthly home payment; now is the time to set some cash aside. A down payment is generally required when taking out a mortgage loan. Most lenders require a down payment and it goes toward the total amount of the mortgage loan. Your down payment is going to be based off of the type of mortgage loan you get – which, percentage wise, can range all the way up to 20% of the total purchase price. There is no limit to the down payment, as you can pay as much as possible toward it, but for the majority of home buyers the down payment will be anywhere up to 20% of the final price.Another cash expense of home buying is closing costs. Closing costs are fees that are associated with the closing of a real estate transaction, and they are paid either by the buyer, seller, or both parties together. The costs are based on the type of property that is purchased, the location of the property, and a number of other things, but for the most part closing costs can range anywhere from 2 to 5 percent of the purchase price. Closing costs, just like a down payment, are made in cash, and sometimes buyers can negotiate for a seller to cover closing costs. To be on the safe side, have enough cash set aside to cover both a down payment and closing costs when buying a home or property.

Buying a home is an exciting life event, but it’s also a large financial event. Before you begin your home search, have all your bases covered when it comes to finances and the home search will be much more rewarding and less stressful in the long run.

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5 Things to know about your neighbors before you sell

5 Things to Know About Your Neighbors Before You Sell

Considering selling your home? You may be competing against your neighbors. Here are some things to look at with an agent before you list:

1. Who’s remodeled?

Tap into the neighborhood grapevine to find out who’s remodeled their kitchen and upgraded their bathroom. An agent can look up the listing and sale price of those homes to find out if updates made a difference.

2. How fast are homes selling?

Keep an eye on how quickly neighborhood homes have been moving off the market. A low inventory may mean you can set a higher listing price. Your realtor can add valuable pricing insight.

3. Take inventory of the inventory

It’s difficult to fetch a competitive price when you’re competing for buyers. If several homes are for sale on your street, waiting a season may prevent your home from languishing on the market. Talk to your Realtor about market trends in your area.

4. Stay current on planning and zoning news

Keep tabs on upcoming public projects that could impact the timing of your sale. Is major road construction planned that may deter buyers? An agent can discuss selling strategies to work around issues.

5. Get the scoop on your hood from an expert

A Realtor familiar with your unique market can put it all in perspective if you’re considering a sale.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

7 Tips for Using Flowers to Boost Curb Appeal

7 Tips for Using Flowers to Boost Curb Appeal

Used strategically, flowers can be a powerful tool for increasing your home’s curb appeal. There’s a method to leveraging all those petals to help your property bloom. Follow these tips.

1. Buy a color wheel
Spend a few bucks at your local paint or art supply store on a color wheel to help you understand how different colors relate to one another. Choose flowers with colors close to one another on the wheel for a more harmonious scheme, or colors on opposite sides of the wheel for a complementary color theme. To really mix things up, choose three colors that are equidistant from each other on the wheel.

2. Use color to “enlarge” your yard or garden bed
A monochromatic color scheme can help create a feeling of spaciousness because the eye is not interrupted by other colors. To mix things up, add lighter and darker versions of the same color flowers.

3. Highlight favorite features
Have a fabulous front door? Draw eyes to it by planting brightly colored or white flowers around it. Flowers can be an effective way to accent the architectural features you – and prospective buyers – love.

4. Use white
White can be the most attention-grabbing color in landscaping. White flowers and foliage serve as terrific focal points, make other colors look richer and create a sense of depth in a garden.

5. Don’t forget green
There are so many vivid shades of green to use when highlighting your home. Combining different shades and a variety of foliage textures can add depth and excitement.

6. Anticipate changing seasons
Remember to plan for how the colors of the plants you choose will change with the seasons. Add in some year-round perennials so your yard is still vibrant when flowers wilt in cooler seasons.

Tired of having your green thumb limited to container gardens on your patio? Find out what kind of yard you can afford by talking to a Realtor who knows your neighborhood. Find an agent here.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

7 Tips for Pet Owners Selling a Home

7 Tips for Pet Owners Selling a Home

Lingering animal smells and fur can be a turn-off for would-be buyers. Be sure to remove all signs of your furry friends before showings. Here are some tips.

1. Holey backyard, Batman!
Does your dog bury more bones than they munch on? Start at the perimeter of your yard and circle inward to find your pup’s landscaping efforts and fill them in.

2. Scoop the poop
One misstep can ruin a buyer’s impression of your yard (and possibly home). Make sure your property is clear of any pet-related landmines.

3. Mend fences
Check your fencing, deck and porch for any marks from scratching or chewing. Most can be erased with elbow grease and a bit of sandpaper.

4. Stash the evidence
Collect your pet’s toys, bowls, beds and litter boxes and keep them out of sight. Hide pet photos for now, too.

5. De-scents-itize
Have a friend or Realtor come by to sniff out any animal scents you may have become accustomed to. Light candles, open windows or hire a professional carpet cleaning crew to deodorize your home.

6. Need a buffer?
Have claws scratched up your lovely hardwood floors? Ask your Realtor if professional resurfacing might be a good idea.

7. Don’t leave pets home during showings
Not only is there a chance they may bolt through an open door when strangers stroll around, there’s also a liability issue. It may be a good idea to temporarily relocate exotic critters, such as snakes or tarantulas.

Looking for a home with a bigger yard for Fido, or more naturally-lit lounging space for Fluffy? Your Realtor can help you find properties with features all members of your family will love. Give me a call if I can help you find your new home.

#remax #real estate

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

May National Housing Report

May National Housing Report: What the Numbers Mean for You

The home-buying season was just starting in April, with a 7.5% sales increase over March and 3.2% increase over April of 2015, according to the May National Housing Report from RE/MAX. The Median Sales Price in April was $215,000, which was 5.4% higher than one year ago.

Buyers should note: While warmer months are traditionally known as the “home-buying season,” an average monthly year-over-year sales increase of 4.3% so far in 2016 means the market may remain competitive long after the kids are back in school. Work with an experienced agent to develop a buying strategy for the neighborhoods you’re interested in.

Sellers should note: The inventory of homes for sale remains very tight in many markets across the country, with April 2016 inventory 15.2% lower than April 2015. This may mean your house sells for a competitive price, but also that a competitive offer may be needed to buy your next place. Work with your Realtor to figure out a move-out, move-in timeline that doesn’t leave you in limbo.

Learn more about the current state of the market in the infographic below.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

6 Lessons Monopoly Can Teach You About Home Buying

6 Lessons Monopoly Can Teach You About Home Buying

1. Patience
MONOPOLY: So your family has decided to play Monopoly? Refill your beverage, grab a snack and change into comfortable clothes. You’re going to be there a while.

LESSON: Buying real estate is a process. There’s pre-approval for a loan, interviewing agents, searching for homes, submitting an offer, maybe submitting another offer, the home inspection, the appraisal, and final loan processing before you get the keys. Needless to say, buying a home can take some time. Instead of getting frustrated, focus on all of the great reasons you decided buying a home was right for you. Staying in close communication with your agent throughout the process will help, too.

2. Neighborhood matters
MONOPOLY: Everyone starts the game with one corner in mind: Boardwalk and Park Place. The highly priced properties have the best returns on investments, and the players who snag them first tend to do well in the game.

LESSON: Location is often a major consideration in real life as well. Home values, your lifestyle and so much more are factors in your neighborhood choice. Work with your agent to learn all you can about the neighborhoods that pique your interest.

3. Keep an open mind
MONOPOLY: Baltic and Mediterranean Avenue have a bad reputation because they’re the cheapest properties on the board, but they also present opportunity. Add a few houses and hotels and your return could be bigger than the one on nearby Connecticut Avenue.

LESSON: Keep an open mind when shopping for a home. An up-and-coming neighborhood may have appeal you didn’t see before, and more value for your budget.

4. Be prepared
MONOPOLY: You’re a Monopoly mogul! You have a handful of desirable properties and a steady stream of income from your houses and hotels. Then comes the Chance card: “Make general repairs on your property – for each house pay $25, for each hotel pay $100.”

LESSON: You never know what card you’re going to draw. But unlike Monopoly, the real world has home insurance available to help you prepare for unexpected repairs and disasters. A variety of plans, customizable to any budget, are available. Some homebuyers also opt for warranties covering potential appliance issues after move-in.

5. How to win a bidding war
MONOPOLY: Trading properties keeps Monopoly exciting. And there are no strict rules as to how a seller determines to accept an offer. Sibling rivalry, bribes involving candy or even business sense can play into a player’s decision.

LESSON: Sellers don’t always accept the highest offer. Writing a letter about why you fell in love with their home can sometimes sway their decision in your favor.

6. The importance of strategy
MONOPOLY: Monopoly is a game of strategy, but few players are inclined to study ways to win. What if you had a coach sitting next to you, advising how much to bid for a property, where to look next, and whether or not mortgaging a utility to buy Boardwalk is a smart idea? You would be unstoppable!

LESSON: Buying a home is an infrequent occurrence; for some it happens only once in a lifetime. Wouldn’t it be helpful to have someone on your side who was up-to-speed on laws for your state, knew which neighborhoods would best fit your lifestyle and offered to help you navigate a bidding war? That’s the value an experienced agent provides.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Colorado Springs Weekly Real Estate Report

Colorado Springs Weekly Real Estate Report

weekly report 05302016

 

Above is the weekly real estate report for the past week. We are slowly increasing the all actives which is a great thing. If you have any questions about the market give me a call I would love to chat with you about it.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Colorado Springs Weekly Real Estate report

Colorado Springs Weekly Real Estate Report

weekly report 05202016

 

The weekly report shows that the market is doing a bit better each month, but the inventory is still super low. We still only have a small amount of inventory compared to what we need to be a healthy market. Please if you or anyone you know is thinking of selling give me a call.  I would love to talk to you about this.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Social Media and Real Estate

Real Estate Advisor: May 2016
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Social Media and Real Estate
Social media has become a way of life in our country over the past decade. With more and more people using sites like Facebook, and applications like Twitter, Pinterest and Instagram, having a presence on social media is almost an absolute must. But what is social media? We hear that term a lot, especially on the news and in public places. Social media is those websites and applications that give users the opportunity to create and share content for the sole purpose of social networking, or communicating with others. Social media allows people and communities to connect in ways they were unable to in the past, paving the way for new or renewed connections.

While many think social media is only an option for those looking to share family photos or cat videos, social media has opened the door to new marketing opportunities, especially when it comes to real estate. Whether a buyer, seller, or real estate agent, social media is an excellent tool to get the word out about properties, and should you be considering a real estate search soon, don’t forget to look to social media for more ways to market your property or find your dream home.

Popular Social Media Sites

Facebook

What is Facebook? Facebook is probably the most popular social networking site on the Internet. Used by people around the world, Facebook allows users to make posts, share pictures and videos, and overall connect with friends, family and communities via the Internet. Facebook allows users to get direct access to information via posts by people in their groups. If you’re utilizing Facebook for real estate marketing, you have the ability to post listings, property pictures and other information that users will find immediately helpful. Not only that, but with the fact that Facebook users are all somehow connected via friends and groups, your listing can be shared beyond your immediate group of contacts, making Facebook a great word-of-mouth marketing tool.The most common age group of Facebook users is 25 to 34; many people who use Facebook will be interested in real estate or know someone who is. Facebook also allows users to share information about their communities and neighborhoods that might not be found on a website (because it comes directly from the people living in the community), so the amount of info that can be accessed via Facebook is almost limitless.

Twitter

What is Twitter? Twitter is an online social networking site that is also used by people around the world. The draw of Twitter is that it’s a rolling conversation: it’s fast-paced and posts are limited to 140 characters or less. Users have the ability to post pictures, videos and links to other media or websites that can be readily accessed by their followers. Twitter is also an excellent marketing medium because it has a great search function: if you’re looking for information about a certain city, community or neighborhood, it’s likely you’ll be able to find Twitter conversations (or ‘tweets’) with relevant information and responses.Marketing with Twitter requires a lot of engagement on both sides of the coin. Because Twitter conversations are constant, the more effort that’s put forth on Twitter means the greater the reach of your posts and the people who will receive your information. Twitter is a great tool in that users have the ability to attach hashtags, or #, to apply keywords or phrases to a post. This allows for greater reach, as anyone can search for a keyword or phrase, meaning the number of people that can find your post is only limited to the total number of Twitter users.

Instagram and Pinterest

Instagram and Pinterest are both online social networking services that rely heavily on images. Instagram users share photos and videos, either their own or those of others, and Pinterest is an application that allows users to share those pictures or compile them together into “pin boards.” The benefit in both of these social media sites is the ability for users to share media – whether it is pictures or videos. People in general crave visuals – we are visual beings, especially when it comes to homes and properties. Visuals have been found to create and boost user engagement, and both Instagram and Pinterest are an excellent way to showcase a listing’s pictures and information. Both are also great tools for anyone looking for ideas on curb appeal, ways to stage a home, or even those looking for ideas on updating a property to get it ready to sell.Social media has become a way of life in our ever changing, technological world. Real estate is a competitive market for both buyers and sellers, and social media is a great, readily available tool for anyone interested in real estate to utilize to their benefit. Check out some of these sites and see the endless possibilities of social media and real estate.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!