Four Ways To Keep Cool When Your Real Estate Business Is Heating Up

Choose Your Attitude You can choose how you feel and how you react to situations. Research has found spending time in nature can help alleviate mental fatigue by relaxing and restoring the mind. Additionally, spending time outdoors can also improve your problem-solving skills. It can be hard to step away from the screen and put down the phone when your clients or employees require your attention. I value spending time outside, and I go hiking with my family every Sunday. Practice Meditation Meditation is a simple, effective method that can help you to improve your productivity. The study also found the distress-reducing effects of meditating can be recalled when someone is not in a meditative state, which can help with stress management. If you are completely relaxed and stress-free, then your mind will also work more effectively. Find someone better than you at the job and work to try to reach their level. While staying focused on business, apply helpful practices like these to enjoy the process.

How To Turn Your Primary Residence Into A Wealth Building Machine

House Hacking is a term used to describe the strategy of using parts of your primary residence to produce revenue that will offset your monthly housing expenses. Multi-family properties Multi-family properties are two, three, and four unit properties. Houses with Multiple bedrooms Houses with multiple bedrooms make better House Hacks because bedrooms are what generate revenue. Areas that can easily be converted to bedrooms If a property doesn’t have more bedrooms, look for ways to make more bedrooms. Houses near public transportation If you’re going to be renting to tenants that work in large inner cities or expensive markets, odds are they will value being close to public transportation. Find a 2, 3, or 4 unit property with more than one bedroom per unit, then rent out the units you aren’t living in on monthly leases to other families. Look for ways to rent out the space you aren’t living in to short term tenants. Find Homes With Lots of Square Footage and Adapt It For Your Purposes When you find a home that is bigger than the number of bedrooms it has, you find the potential for a great deal. You can also wall off part of the home and create completely separate living spaces that can be rented out to individuals or families-allowing you to live in one area and have zero interaction with your tenants. They buy a property to House Hack then live in it for a year, saving the money they would have spent on housing costs.

What Is A Home Equity Line Of Credit And How Does It Work?

If you own a home, you've probably heard of a home equity line of credit before. It will cover what a home equity line of credit is, how it works, and how to qualify for one of your own. What is a home equity line of credit? Since HELOCs are secured by your home, meaning that the lender can foreclose on you if you decide not to pay back the loan, they often come with better interest rates than most traditional credit cards. You also will likely only have to make payments on the interest accrued by the amount that you borrowed. Now, your monthly payment will likely go up substantially because you'll be responsible for repaying both the principal and the interest on whatever money you borrowed during the draw period. Most lenders will only let you borrow against up to 85% of the equity you have in your home. Finding your maximum credit limit works like this: It's the amount your home is worth x the percentage of home equity you're allowed to borrow - how much you owe on your home For example: Let's say your home is worth $300,000 (according to a recent appraisal) and you're allowed to borrow up to 85% of your home equity, but you still have a $100,000 balance on your mortgage. $300,000 x 0.85 = 255,000 $255,000 - $100,000 = $155,000 In this case, you'd be approved for a $155,000 line of credit The difference between a home equity line of credit and a home equity loan Home equity lines of credit and home equity loans are similar in that they are both second mortgages on your home, but they function in different ways. Unlike the continuous line of credit that comes with a HELOC, home equity loans work in much the same way as your first mortgage.

5 Reasons to Buy a Fixer-Upper Instead of a Perfect Place

“Location, location, location” is the mantra when it comes to where to buy a home. But when it comes to what to buy, it gets a little more complicated. There is definitely a contingent who would insist that you would buy the best home you can afford. You don't have to go all Chip and Joanna here, but buying a fixer-upper makes sense for so many reasons .It costs less “Fixer-uppers list for an average of 8% below market value,” said LearnVest. “Fixer-uppers in Phoenix have the smallest cash discount, saving buyers just $1,000 off list price. Fannie Mae’s HomeStyle loan and FHA’s 203(k) loan both bundle a mortgage and funds for renovations. It gives you the opportunity to build value With an already-updated home, “If a seller has redecorated or improved the whole place, that seller is reaping the benefit,” said Forbes. Also, consider this reality: A seller who re-does a whole house in order to sell is not likely putting in the highest-quality materials. Taking your time to make updates as you’re able gives you the opportunity to save money and recover from all the expenses of buying the home and moving in. If you buy a house with the intention of fixing it up, you get to update and upgrade it to your standards, and you have the money to do so.

Student Loans Keeping You From Buying A Home? Think Again

Student loan debt has long been cited as one of the Millennial generation’s biggest barriers to homeownership. But it seems the hurdle might not be as insurmountable as many think. Odeta Kushi, a senior economist for First American, said that extended loan terms, higher incomes and the lower payment-to-income ratios that result from these factors are helping minimize the impact student loan debt has on homeownership. “Millennials in their 30s have higher median incomes compared with Baby Boomers when they were in their 30s and are on track to surpass Generation X.” First Am’s recent Real Estate Sentiment Index shows that inventory levels and overall affordability are the biggest barriers to homeownership for today's buyers. “Persistent myths regarding down payment may be discouraging would-be Millennial homebuyers,” she said. “Many millennials could qualify for a mortgage and may indeed have the income to afford a house, but misperceptions regarding down payment may be holding them back.” Kushi said many Millennials believe that a 20% down payment is required to buy a home. Want to buy a home but have thousands in student loan debt? Here’s what Freedom Debt Relief’s Michael Micheletti recommends: Understand your entire debt portfolio, your debt-to-income ratio and your FICO. Investigate local, municipal and national down payment assistance programs. Looking into a shared equity program for the down payment.

5 Reasons 2019 Is The Most Important Year For Housing In 10 Years

A number of global economic sectors took a hit in 2018, while the US real estate sector only cooled in certain markets, though it did not crack. The global economy would surely be in trouble if the real estate market became a broad concern. Given this potential for volatility, 2019 will be the most pivotal year in US housing and commercial real estate since the Great Recession. How investors are able to manage through the Opportunity Zone program and its forthcoming guidance from the IRS will be critical to the US housing and commercial real estate market for 2019. Changes To Mortgage Interest Deduction (Negative) American families will receive their W-2s over the next few weeks and prepare their taxes before April 15th. Volatility In Interest Rates (A Toss-Up) There's been a stock market correction within the first year of every new Federal Reserve Chair's tenure in the last 40 years, with the exception of one: Dr. Janet Yellen. However, ten-year treasury rates have dropped from a high of 3.23% in October 2018 to approximately 2.70% last week. Slow-down In Home Price Increases In Coastal Markets (A Toss-Up) The extreme home price increases that have occurred over the last ten years in markets like New York City and San Francisco took a breather in 2018. If consumers become very slow to purchase, a highly motivated seller can drop prices in a knee-jerk reaction. Conditions vary with each economic cycle, but the government shutdown and other economic sectors are already affecting real estate, setting 2019 up to become the most pivotal year the US housing market has seen in the last decade.

4 Vital Tips for Tapping Into the Lucrative Niche of Student Housing

Instead, the student typically continues to live at home while commuting to school just as one would commute to a job or other commitment.” The problem with such schools is that since the students aren’t making any special commitment to live near the college, there is no premium on student housing near the campus. Large universities with a lot of full-time students (such as the University of Oregon), on the other hand, are perfect for student housing. Many are full-time students, but many are not. The University of Oregon is, unfortunately, one of these universities. On the other hand, if you don’t see rental ads for properties near campus that highlight that it’s near campus, the school is probably a commuter college. As students start looking at your properties more, it’s easier to advertise properties that are further away. The great part about student rentals is that you get to rent the property out by the bedroom instead of as a whole. That means that a 1,500-square-foot, 3-bedroom student rental house may rent for $600 a bedroom ($1,800), while a 1,500-square-foot, 4-bedroom student rental may rent for $550 a bedroom ($2,200). If you can cut a large bedroom in two or take part of a large living room and make it a bedroom, I recommend doing it. First, as noted above, student housing (especially houses, but apartments as well) are rented by the bedroom.

What to Know if You’re Beginning to Invest in Real Estate Later in Life

Because, in real estate investing, time is far more valuable than money. Or put differently, money will naturally flow to where it can earn a return. Also, if you can scale your opportunities, you can always find money to pull them off. If you don’t, your strategy is limited to investing for immediate or short-term yield. Risk Profile Naturally Shifts to Conservative Later in Life As we age, our risk profiles naturally shift toward the conservative end of the spectrum. Whatever move you make, you have to weigh it well and make sure that it will produce the results you need. From a long-term investing standpoint, the only ways to get a higher return on your investment is to either get more cash flow for the same investment or pay less for a cash flow stream. Related: Inspirational Success Stories Are Great—Unless They Lead to Goals You Never Wanted In Conclusion Age impacts how you invest in real estate later in life because it impacts two critical elements of any investing strategy: time and risk profile. Since real estate strategies are like making alloys, your goal is to produce the best results with the ingredients available. Buy quality properties, play to your strengths, and you can put together a real estate investing strategy that works for you.

8 Habits All Successful Home Sellers Have in Common

So if you've resolved to sell your home this year, listen up: Here are the best habits you can adopt to proactively maintain your home all the way to a successful sale. Daily: Tidy up When your home is on the market, it's best to always have it “show-ready,” which means in tiptop shape, since buyers love an impeccably clean house. Daily: Respond to offers Successful sellers are in the habit of responding to offers quickly. Weekly: Do a deep clean inside and out Pick a day each week to do a deep clean of your home, to keep the daily maintenance to a minimum. Monthly: Purge your closets and cabinets "When a client approaches me about wanting to list their home, the first thing I tell them to do is go through closets and get in the habit of donating unwanted items every month," says Beverly Burris at William Means Real Estate in Charleston, NC. "Closet and storage space is extremely important to buyers, and a seller needs to make them look as spacious as possible." Getting into the habit of eliminating clutter will make it easier for you to keep your closets show-ready. Monthly: Sit down with your real estate agent Even though you'll regularly be in touch with your real estate professional on the progress of your home sale, get in the habit of having a monthly review. The routine of checking in can also help drive an overall strategy to sell your home. Annually: Make sure your home is in good repair Once you know a sale is in your future, it's time to get a presale home inspection, so you can get in the habit of keeping your property in shape until you list it.

How to Handle Inherited Tenants: Reviewing Leases, Raising Rent & More

When you purchase a rental property, it may come with tenants in place, and those tenants will suddenly become YOUR tenants. These tenants are known as “inherited tenants.” Inherited tenants can be beneficial, as you will not need to immediately spend time filling the vacant unit, and you’ll be receiving income from day one. However, inherited tenants can also be risky, as they were not put in place by you, and you don’t have a clear indication of how well they were screened or what type of tenant they are. For example, if you purchased a property and the existing tenant was three months into a one-year lease, you would be required to abide by the terms of their lease for the next nine months. Again, the leases go with the property. If the seller of the property will not let you speak with the tenants and get Estoppel Agreements, you might be dealing with a seller who is trying to hide something. In this letter we like to let the tenants know about some of the improvements that will be taking place at the property in the coming months. Related: What to Do as Soon as You Deny or Approve a Prospective Tenant Raising the Rent on Inherited Tenants Perhaps you purchase a property with existing tenants and you know that the rents are far too low. All the tenants were on month-to-month agreements, so we could raise the rent with just a 30-day notice. If we suddenly raised the rent on all the tenants, it’s likely many of the tenants would move, and we’d be left with a lot of units that needed to be rehabbed and very little income coming in to help with those expenses.

TRENDING

Home Prices Still Increasing Despite Fall In New Homes Sales

New One Family Home Sales The number of new homes sold began to fall a year or two before six out of the last seven recessions. (Home sales did not fall before the 2001 recession.) If more luxury homes sell because the stock market is hot, that would increase the median and average home prices in a city even if home prices haven’t actually changed at all. The latest Case-Shiller numbers show that home prices were still increasing in all 20 cities covered by the index and in the U.S. as a whole, but price increases were getting smaller. Hot: Las Vegas home prices (up 13.9% in August compared to the previous August), San Francisco (up 10.6%) and Seattle (9.6%) had the highest annual home price appreciation in the 20 cities covered by Case-Shiller. Cold: New York (up 2.8%) tied Washington D.C. (up 2.8%) for the least home price appreciation in the 20 cities. Home Price Momentum Las Vegas and San Francisco had by far the largest increases in home price momentum comparing their price increases the last 12 month to the previous 12 months. Seattle's price momentum slowed the most, down 3.6%, but Seattle still had a very high 9.6% appreciation rate over the last 12 months. U.S. home prices increased 5.8% in the last 12 months and 5.9% the previous 12 months. Half the 20 cities covered by Case-Shiller saw increasing price momentum and half saw decreasing home price momentum.