Everything You Need to Know About Subdividing Your Land

What is a Subdivision? These legal definitions are important, because they will also define the rules that one must follow to legally complete a subdivision. How to Subdivide No matter where you are, the beginning of any subdivision process is going to begin with a description of the land being subdivided. Next, check your local regulations. One is zoning, and the other is subdivision regulations. No matter what they are called, these regulations are specifically designed to regulate the subdivision of land. If you find that no regulations exist, as may be the case in many rural areas, you can simply write up a legal description of the area you wish to subdivide — often using the legal description described above, place that description on a deed and have it recorded at your local courthouse. If the land you want to subdivide is zoned for one acre minimum lots, you are not going to be able to subdivide into 10,000-square-foot lots. These regulations as you may have guessed will spell out the legal requirements to subdivide your land. Once your plat is approved and recorded at the local courthouse, then you can write deeds and sell of the new tracts.

How To Invest In Passive Real Estate With Your IRA

I'm all about keeping more of all things that are good, especially when it comes to my hard-earned money. I also know that even the best financial advisors can't offer their clients, or have expertise in, every type of investment. Many financial advisors won't always tell you about a strategy for retirement is that is growing quickly in popularity. It's called a self-directed IRA, sometimes a checkbook IRA, and by having one, you are able to take advantage of a myriad of opportunities that may be outside of the options that your financial advisor is able to offer. Basically, with a self-directed IRA you can take all or part of your retirement account and roll it over into an account where you control the investments instead of the company that handles your IRA. I first converted some of my IRA holdings to a checkbook IRA about six years ago, and it’s how I began investing in passive multifamily real estate syndications. In addition to real estate, you can also invest your IRA in precious metals, oil and gas, private hedge funds, the list goes on and on. Whenever you are presented with an investment opportunity for which you might like to use your IRA, the very first thing you should do is consult your tax advisor. He or she can first determine if what you want to do is allowed by the IRS, and then advise you as to whether it would be better to use non-IRA funds or your self-directed IRA. Using my IRA to make my first couple of passive real estate investments took some of the risk out of taking those baby steps into real estate syndications, and it consequently opened up a whole new investing world that I didn't even know existed.

Why Has Housing Supply Increased as Sales Have Slowed Down?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months. “The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” said Fannie Mae’s Chief Economist Doug Duncan. Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s! Mismatch of Inventory Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.” Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Natural Disasters Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact. Members: Sign in now to set up your Personalized Posts & start sharing today!

Millennials, Gen Zers Have Changed The Real Estate Landscape: How The Industry Must Respond

According to the Urban Institute, in 2015 37% of millennials were homeowners, an 8% decrease from Gen Xers' and baby boomers' homeownership rate at the same age (25–34). Millennials And Gen Xers While demographic and lifestyle choices, as well as a desire for nonconformity, have contributed to the high rates of renting over owning among millennials, one of the main factors pricing millennials out of homebuying is, ironically, high rents. While baby boomers and Gen Xers saw homeownership as an opportunity to build wealth and as a place to settle down, millennials do not. Millennials are often unable to forgo renting in favor of homeownership, in part because of the high cost of living in the cities they choose to live, as well as the high debt load they carry following graduation. It is a double-edged sword in a manner of speaking: Low single-family housing supply is contributing to lower homeownership rates among millennials because developers did not see millennials demanding single-family homes. Changes Are Coming (Again) Although so much time and effort have been spent on understanding the millennial generation and their homebuying preferences, the market is on the cusp of yet another shift in homebuying trends as Generation Z (commonly defined as those born after 1995) prepares to enter the market and make their own mark. While millennials have suggested that developers and owners become more environmentally and ethically conscientious, it is Gen Z that is expected to enforce the ESG investment practices. It is important for property owners within the workforce housing space to familiarize themselves with their residents. Rather than assuming that what worked for one community will work for another, widen your outreach program to include roundtable discussions or focus groups that garner direct feedback from your residents. For now, millennials remain in the driver's seat, as they are currently the largest market and the right age to buy and rent homes.

5 Tips When Buying a Newly Constructed Home

When you buy a newly constructed home instead of an existing home, there are many extra steps that must take place. These inspections are important because the inspector will often notice something that the builder missed. If you are an out-of-state buyer, will you receive weekly pictures of the progress via email? Look for builder’s incentives The good thing about buying a new home is that you can add the countertop you need, the mudroom you want, or an extra porch off the back of your home! Schedule extra time into the process There are many things that can impact the progress on your home. Rain can delay the pouring of a foundation as well as other necessary steps at the beginning of construction, while snow can freeze pipes and slow your timeline. Most builders already have a one-to-two-week buffer added into their timelines, but if you are also in the process of selling your current home, you must keep that in mind! Visit the site often As we mentioned earlier, be sure to schedule time with your project manager at least once a week to see the progress on your home. If you are ready to put your current home up for sale and find out what new construction is available in your area, call a local real estate agent who can help you with the sale of your current home and the search for your new one. Members: Sign in now to set up your Personalized Posts & start sharing today!

Real Estate vs. Stocks: Which Has Performed Better Over 145 Years?

What’s a better investment, stocks or real estate? If each asset requires $20,000 in cash to purchase it, then it takes a lot of money to build a broad, diverse portfolio. But residential real estate? For everyone who didn’t like the look of how real estate returns have compared to stock returns over the past few decades, consider that the Sharpe ratio for real estate has only grown stronger over time. Another way of looking at it is return per unit of risk – here’s how equities have compared to real estate in each of the 16 countries studied: Returns & GDP Advanced economies tend to have slow economic growth, right? On average, equities and real estate perform several times better than GDP growth. But Wealth Wise Wendy, who’s not nearly so average as Joe, invests as much money as she can in equities and real estate. Want a few reasons why rental properties are better investments than bonds? Should I Stop Investing in Equities and Just Buy Rental Properties? Residential rental properties offer excellent returns with low volatility.

How to Raise Money for Your Next Deal—Without Legal Issues

And in another two days, we’ll see another good friend, Brandon Turner. To Preface This Discussion In the world of real estate investing, we have two main hurdles to clear: finding deals and finding money to finance those deals. How to Raise Money This is where I tell you that I am not a licensed professional and cannot offer specific legal advice. Well, asking for money is solicitation. What is general solicitation? General solicitation is you asking for money from people with whom you do not have a standing relationship. Now, since you don’t really know the person you are speaking to, this relationship should most likely be considered general. Related: 7 Life-Changing Lessons I Wish I Knew as a Real Estate Newbie Remember, what gets you in trouble is the “General + Solicitation.” You can have general conversations without soliciting, and you can solicit from pre-existing relationships. But, next time you are about to ask, or about to make that post on a social network, just remember—what gets you in trouble is general + solicitation. Any questions about general solicitation?

7 Painful Lessons I Learned While Tearing Down and Rebuilding My House

When my husband and I bought our first home 11 years ago, we knew it needed some work. We loved our neighborhood, and we wanted to stay. Figure out exactly what you want before you start At the outset, we'd met with our building contractor about a bathroom remodel and possible extension—because that's all we thought we needed. That way, we could have done just one building plan rather than two. Make as many decisions as you can early in the process, and that will give you a better idea of how much the project will cost. However, the neighbors a few doors down, whom we didn’t even know, would let their daughter, who was maybe 6 or 7, play on our construction site. In our build, the quote for doorknobs included the wrong count, and the window quote listed windows with the wrong grid pattern. My advice: Start contacting them early in the process, verify what they tell you, and follow up a lot. Work with your partner, as best you can The stress of building a house can’t be emphasized enough. But that meant having to relay information back and forth and then having to delay actual decisions until I could talk to him.

American Homeownership Increases Again as Housing Market Looks for Balance

More Americans became homeowners in the summer months, fresh evidence of a housing market that’s finding some stability after several rocky years. That’s a half-percentage point higher than a year ago. At the same time, many Americans who would ordinarily become buyers were locked out of the market by stringent lending rules, a lack of affordable inventory and a challenging economic backdrop. All that has made the post-crisis housing market not just less accessible, but less dynamic. It’s possible the moderation in home prices over the course of 2018, which some analysts believe came from would-be buyers pushing back against hefty price gains, helped many of them finally become owners. The homeownership rate can be controversial. Some analysts believe that government policies that helped enable ownership more broadly were responsible for the housing crisis, although many others believe there’s blame to go around. Still, the meager recovery to this point puts the homeownership rate only back to 1995 levels, well before the run-up to the bubble. That suggests it may be possible for many more Americans to become owners, if housing market conditions ease further. The vacancy rate for owners was just 1.5% for the second month in a row, tighter than the 1.6% it averaged throughout 2017.

Student Loan Debt Impacts Millennial Buyers

Student loan debt is impacting some first-time Millennial homebuyers. According to the MagnifyMoney team, “Millennials with student loan debt tend to have larger mortgages on lower-value homes. About 34% of millennial graduates with student loans are homeowners, while 36% of those without student loans are homeowners.” Where the equation changes are the price of homes bought by Millennials with student loan debt. “The difference is those with student loan debt are buying homes priced about 5% less than those without. As housing prices have risen dramatically around the country, Millennials making that first home purchase are seeing the long-reaching impact of student debt. Beau Hodson founder and senior mortgage loan originator of San Diego-based Transparent Mortgage works with first-time Millennial buyers. “As we think about student loans on the back end, we focus on students responsibly borrowing on the front end.” Covel’s national association represents college and university financial aid administrators. “Every year a student takes out a new loan, they have to know what the total accumulated debt will be. The Federal government gives students six months after graduation before they have to begin repayment,” she adds. “With 42% of home buyers being first-time buyers and 71% of those under 37, student loan debt is a major factor in the housing market.” As interest rates are hovering at 5% and predicted to go higher it’s no doubt qualifying will become tougher.


3 Strategies We Used to Live-In Flip Our Way to Success...

Get educated and execute when the time is good for you. The house was listed at a price we thought we could barely afford, almost the cheapest home on the market at the time. But we also knew the market was appreciating, and it was in a great neighborhood with good schools. So, we secured a VA loan and offered full asking price the same day we saw it. With House #1, we ended up using the two-year hold, full market appreciation strategy. After two years, House #1 had appreciated 36 percent, which we then invested directly into House #2. House #2: Beach House (Less Than One-Year Hold, Forced Appreciation) As we were in the process of selling the Silicon Valley Suburb house, we happened across an open house in a nearby little beach town on the North end of Monterey Bay. In California, that would have ended up being close to 34 percent of all net gains! House #3: Good Schools Suburb (366-Day Hold, Both Forced & Market Appreciation) Third time’s the charm, right? It was not easy, but I hope this testimony emphasizes to you that the VA loan is a gift — a gift that WE earned.