Q & A Saturday – How Will the Brexit effect US Real Estate?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Will the Brexit effect US Real Estate?

In this video Shaun talks about some of the recent and long term effects of the “Brexit” in the USA.

 

Some of the main points covered in this video are:

1)      What is the “Brexit”?

2)      What were the short term effects?

3)      How does it affect US Real Estate?

4)      What might be the long term issues?

 

The Brexit was the recent vote by the citizens of the United Kingdom to leave the European Union.  The immediate aftermath of the vote spooked people and there was a sharp decline in the equity markets worldwide, for a couple of days.  People quickly stopped freaking out and they returned to where they had been quickly and are actually higher than before the vote already.

In terms of real estate in the USA mortgage rates did dip after the vote and those have stayed a bit lower than they had been.  This could persist for a while and keep money cheap.  If nothing else it will be another excuse for the FED to keep interest rates low rather than raise them as the assured everyone was the plan starting back around this time last year.  The other possible real estate related consequence is there is a theory that foreign money might not flow into London real estate the way it has been and some of that could flow into various US markets.  It is to early to say for sure on that one but it is a very plausible theory.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and had been hoping to get British Pounds for it?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

  

 

 

(Image credit: Hand Holding Brexit Sign via Times Higher Education)

 

Q & A Saturday – When Do I Need Flood Insurance?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “When Do I Need Flood Insurance?

In this video Shaun talks about when you will need flood insurance for your house.

 

Some of the main points covered in this video are:

1)      What is Flood Insurance?

2)      What is my risk?

3)      When do I have to get it?

4)      Should I get it if I do not have to?

 

The National Flood Insurance Program (NFIP) was created by Congress in the 60s to help with people that were victims of floods since most homeowner’s insurance policies did not cover these events.  The program is run by FEMA and rates are based on risk levels for a given property based mostly on the location and the expected probability of a flood occurring.

Unfortunately there is a lot of controversy as to how accurate the flood maps are and if these probabilities are realistic.  Also in the last few years many maps have been redone, putting many properties in flood zones that were not before, and rates have increased, sometimes significantly.

The short story is if you are deemed to be in a “High Risk” zone and have a mortgage held by pretty much any back you will be required to have flood insurance.  If you have a mortgage through a private they may require it as well but might not.  If you own the property outright it is your choice to have the coverage or not.  There can be good reason to have the coverage but you also may feel it is a waste of money and would rather self insure (as in pay for any flood damage yourself with money you have set aside for repairs).

Flood insurance has become a much bigger concern the last few years as it can be very expensive now so those costs have made some places very unaffordable for people to buy.  Some changes were made that made things a little easier on people but it has still become a much more important consideration when buying a property than it was even a few years ago.

 

 

Do you have a house in a Flood Plain?  Do you need to sell a house in Massachusetts or New Hampshire and can’t afford the flood insurance?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          The Governments “Flood Smart” website to learn more and see your risk.

          Our main article on Selling a House As Is.

          Our Video on Selling a House As Is.

          All of our posts on Selling a House As Is.

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

 

(Image credit: Japanese Floods via RT.com)

 

Q & A Saturday – What is NOI for Rentals?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is NOI for Rentals?

In this video Shaun talks about what the Net Operating Income (NOI) for rental properties.

 

Some of the main points covered in this video are:

1)      What is NOI? = Net Operating Income.

2)      But what exactly does that mean?

3)      Why is it important to know this?

4)      What should you shoot for with your NOI?

 

The Net Operating Income (NOI) for a rental is basically the Net income after taking into account all expenses other than financing costs.  By financing costs this would be the principle and interest payment part of your mortgage payment, not taxes and insurance if those are included in the mortgage payment.  Those two items would be included when calculating the NOI.  For a quick synopsis you take the Gross Rental Income less vacancy and credit losses (i.e. non-payment of an occupied unit) less all of the non finance expenses such as property taxes, home insurance, maintenance and repairs, management, owner paid utilities, other municipal fees, any kind of rental registration fees and then any other expenses that you need to pay for your rental.

Why is this number important?  For commercial sized rentals (Apartment buildings with 5 or more units and any non-residential or mix use building) this number is directly used to determine the value of the property for resale and bank financing.  Obviously in those cases it is a vitally important number since the “Sold Comps” appraisal method used for small properties is not used.

For smaller rentals like condos, single family houses, duplexes, as well as 3-4 unit places.  In these cases the familiar appraisal methods are used so they are not directly used for financing.  However for selling the property to investors the income and expenses will be of paramount importance.  For single unit properties many of the potential buyers will be resident owners and this will not be important but if the property is in a heavy rental area it will be an issue.  It also will be important for anything over 1 unit the person will be at least a partial investor, even an owner occupant in a duplex. 

 

 

Do you need to sell a rental house in Massachusetts or New Hampshire and don’t know what your NOI is?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          Our Video on using The 50% Rule for Rentals.

          All of our posts on Land Lording Topics.

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

(Image credit: Net Operating Income via Property Metrics)

 

Q & A Saturday – What is The Right of 1st Refusal?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is The Right of 1st Refusal?

Real Estate Contract - Right Of 1st Refusal Clause

In this video Shaun talks about what a right of 1st refusal clause is and when you might see it when selling your home.

 

Some of the main points covered in this video are:

1)      What is The Right of 1st Refusal clause?

2)      When a retail buyer might use it.

3)      What some of the advantages are of using one are.

4)      What some of the disadvantages are of using one are.

5)      Why an investor might offer one.

 

A right of 1st refusal clause is not a widely seem technique in real estate transactions.  However it is not particularly rare either so it is good to understand what it is and when it might come up.  When dealing with real estate agents and transactions on the retail market you do not see it very much.  When it does come up is when a buyer puts in an offer with some other contingencies that the seller is not crazy about.  When this happens they might agree to add this type of clause to smooth out the differences.  Basically what a right of 1st refusal does is add a clause saying that the seller can still accept other offers on the property but the buyer has the right to exercise their right to buy the property, but will waive the other contingencies.  For the seller it gives them the ability to accept an offer that they mostly like without being totally bound by a contingency that might not play out.  The most common situation to see this is when the offer is subject to the buyer selling another property.  The buyer is helped since their offers may otherwise be rejected since people will worry that this contingency will not be met or at least not met for a long time and it will drag out the process. 

While the exact clause can take any form usually the basic form will state that the buyer has the right of 1st refusal and spell out what they need to do to exercise that right.  Usually it will involve waiving the clause in question and often all other contingencies.  Also the usual consequence will be forfeiting the deposit if they cannot buy the property, which this means as a seller you would want a pretty sizeable deposit when accepting this kind of clause in this type of situation.

With an investor the situations are usually a little different.  Most of the time this will only come up in situations where they offer an Option or Lease Option type of contract on the property.  In these cases they are only asking for the right to buy the property already.  With a lease option often a seller might want to just sell buy is willing to rent if they eventually can sell.  Sometimes a right of 1st refusal might be given so they can continue to try to sell the property while the investor is looking to secure a tenant for the property.  Usually if the seller gets another offer prior to the investor fully executing their contract they can sell it unless the investor is willing to execute the deal and pay the rent without having a tenant in place.  The less complicated situation would be an option to purchase where the investor might not have the cash on hand to purchase the deal but wants to have a contract on it to be able to try to secure financing, or a partner, or a wholesale buyer or just do more complete due diligence on the property.  In these situations the buyer would have to decide if the seller had another offer if they felt it was a good enough deal that they would be able to solve these problems quickly and exercise the option or if they will just let it go.   

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure if you want to entertain a right of 1st refusal clause?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on using What is a Lease Option.

–          Our Video on using A Real Estate Agent when buying.

–          Our Video on Selling FSBO.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

  

 

 

(Image credit: Real Estate Contract via setestate.net)

 

Q & A Saturday – What is an Assumable Mortgage?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is an Assumable Mortgage?

Assumable Mortgages - Creative Real Estate

In this video Shaun talks about what is an Assumable Mortgage and how they work.

 

Some of the main points covered in this video are:

1)      What is an Assumable Mortgage.

2)      What are the advantages.

3)      What are some of the drawbacks.

4)      What types of mortgages are most likely to be assumable.

 

An assumable mortgage used to be a pretty common way to purchase a house until the early 1980’s.  Sellers would offer their houses up with possible financing in place and there was not much to taking over a mortgage and the seller no longer being obligated to paying the loan, the new owner would be.  However at that time banks realized they were losing a lot of potential income as rates were in the double digits for home mortgages and the loans being assumed were far less than this.  At this time the “Due on sale” Clause started being very common and soon would be found in all conventional mortgage loans.  Typically today the only loans that can potentially be assumed are FHA and VA loans.  Even with those the new borrower will have to go through a qualifying process that is not much different than the one needed to get a new loan.

There are definitely some advantages to the seller if the loan is assumed vs. being taken “subject to”, which essentially is the same result except that the sellers name is still on the loan and they are ultimately still responsible if the new buyer does not pay it.  Therefore, MUCH less risk for the seller in this scenario.  On the opposite side it will be more risky for the buyer since in this case they are responsible for the loan when in a Sub To deal they can walk away unscathed (The ethics of this is a different story…).

The only real reason to want to take on as assumed mortgage would be if the terms are much better than the ones available to the new borrower.  Unlike a Subject To situation the borrower needs to qualify so the only reason to assume is if the rates and terms are very good.  Currently with the very low interest rates on mortgages there is not likely to be a big spread here.

In summary while assumable mortgages used to be very common they no longer are.  Only a small subset of mortgages generally have the possibility of being assumable and with the more stringent qualifying process needed (unlike back in the 70s and 80s) the advantages of the process is limited as well for the buyer.  So while still possible it is not a very useful method to sell a house and not a particularly advantageous method to buy one either.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure if you can sel with an assumable mortgage?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on Selling a House with Seller Financing

–          Our Video on Selling a House with Subject Too Financing

–          Our Video on The Due On Sale Clause

–          Our Video on Selling a House with a Wrap Mortgage

–         Our Video on What are the Different Types of Seller Financing

–          Guest post on 3 Reason to Sell with a Lease Option

–         Our Video on Selling a House with a Lease Option

–          All our articles/videos on Financing and Lease Options

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

 

(Image credit: Assumable Mortgages via PRMI)

 

Q & A Saturday – Should I Use Price Per Square Foot to Value My House?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Should I Use Price Per Square Foot to Value My House?

Price Per Square Foot Mistake - Massachusetts and New Hampshire Real Estate

In this video Shaun talks about how a price per SQFT number relates to the value of your house.

 

Some of the main points covered in this video are:

1)      What exactly price per square foot is.

2)      Limitations of price per SQFT.

3)      How price per SQFT usually changes with the size of a property.

4)      The situations where it can be useful.

5)      Some other methods for valuing that we’ve discussed before.

 

Valuing a property using the price per square foot method is usually a very poor way to find the value of a property.  This number generally will not account for the location of the property, the size of it, the current condition or any other number of important factors.  Even when using more targeted versions of the number that might only include places that sold within some parameters it still very rarely accounts for all the different factors.

One of the most ironic parts of using the price per square foot method is that even with everything else being the same; it is only good if the places are very similar in their square footage!  In general if you have places in the same area price per square foot will get lower as a place gets bigger.  So even once you adjust for everything else if the two places differ in size by a large amount price per square foot will still not give a very good estimate of the value.

So the only instances where this method works is when you have properties in the same location, with extremely similar condition and level of finishes that are also very close in size.  Anything else is just a poor representation of value.  As mentioned in the video one example that could use this is a condo association with a couple different size units that are still pretty similar.  The case we have was a situation where we have a place in a complex with 2 different sizes for small 2 bed room 1 bathroom units.  We have one of the bigger ones that are only about 5% larger.  So if we wanted to value our unit and none of that size sold but several of the slightly smaller ones sold.  If all the places were in similar condition there isn’t much else to adjust for other than the small size difference so the only adjustment needed would be a small bump for the extra space therefore this is not a bad way to do it.  That being said in the same complex using the 1 bedroom units that are only 60% as large would be of no value to use price per square foot because there are other important factors to consider.

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure how to value it?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Last week’s video on valuing property with The Assessed Values.

–          Our Video on how Inaccurate Zestimates are.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Price Per Square Foot Mistake via The Valley of Hearts Delight)

 

Q & A Saturday – Should an Investor have a Real Estate License?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Should an Investor have a Real Estate License?

License and Registration - Investors getting a Real Estate License

In this video Shaun talks about some of Pros and Cons of being an investor with a real estate license.

 

Some of the main points covered in this video are:

1)      Advantages of having a license.

2)      Drawbacks of having a license.

3)      The disclosure requirements.

4)      Costs of maintaining a license.

 

Having a real estate license as an investor is a topic that gets continuously debated.  Recently I have been asked my opinions on the topic a couple times so thought it would be a good question to answer here.  To start off I do indeed have a MA real Estate license so know that my opinions are based on my experience having one while being an active investor.

My personal feeling is that is has been very useful for me as an investor.  There are some other benefits but the biggest advantages are having access to the MLS which makes evaluating properties much easier.  After that having the ability to schedule my own showings and putting in my owe offers on listed properties.  I often work with other agents and will have them represent me, but I am not restricted to only doing that if a property is on the MLS.  Final obvious advantage is the ability to collect commissions.  On these places I see and offer on without another agent I can often get the agent’s commission which allows for either a bigger cushion for the deal or the ability to offer more without changing our numbers.

Most arguments against it have to do with disclosures, legal actions, seller distrust and costs.  The first issue around disclosures I have heard people say that as an agent you have to disclose more things about the property you are selling than others.  Generally laws will require any known defects so this one does not really hold up.  If you plan on lying then being bound by a code of ethics will not stop you.  In regards to the other disclosure issue, letting the people you are working with know you have a license that again is not really a big deal.  You do have make sure once you start talking with someone about buying their property you let them know you are an agent and should have forms signed to that effect.  This goes to the argument that many people that want to work with investors do not want to work with agents.  This may be the case sometimes but for the most part it will not really matter and even when it does explaining you do not want to list the house but buy it will often be enough to negate these feelings.  Next the worry is that if you are sued or other legal action is brought against you that you will be held to a higher standard as an agent.  This is kind of true but if you are a professional investor that has done several transactions you will be held to a higher standard of knowledge regardless of if you have a license or not.  Maybe if this happens on your first transaction or two you might not get hit as hard but unlikely much after that.  Finally as to the cost of having a license, that one is a legitimate criticism.  While maintaining a real estate license is not super expensive there are definitely costs associated with that.  You will have to pay for coursework, pay to take the test and initial licensing fee, ongoing licensing fees and continuing education to get recertified, MLS fee, as well as fees to your broker that can vary widely.  If you are not going to get any use out of the license than this is a waste of money but if you are going to utilize the benefits above then it is not a big expense that should pay for itself fairly easily. 

 

 

Do you want to sell a house directly without listing your property?  Do you need to sell a house in Massachusetts or New Hampshire and don’t really care if the buyer in a real estate agent?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

(Image credit: License-Registration via foodsafeyhelpline.com)

 

Q & A Saturday – Can I Sell a House with Lead Paint?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Can I Sell a House with Lead Paint?

Lead Paint - Selling a House with Lead Paint: Massachusetts and New Hampshire Real Estate

In this video Shaun talks about some of the issues that come up when trying to sell a house that may have lead paint.

 

Some of the main points covered in this video are:

1)      Difference between known hazards and possible ones.

2)      Health issues involved with lead paint.

3)      Possible financing issues.

4)      What you have to disclose.

5)      The proper disclosure procedures.

 

Lead Paint poses a major health risk, especially for pregnant women and young children.  While there are a lot of regulations in place to protect people and force remediation selling a house with it is not one where, at least at this time, someone is forced to remove any of these hazards.  What is required is that any known issues are disclosed and if there are not any for the seller to state they do not know of any existing hazards.  This is a situation where ignorance is a good thing.  J

If you do not have any knowledge of lead paint hazards then you, or your agent, need to make sure that the buyer is given the 10 page EPA lead safe pamphlet as well as any other state documents that may be required.  It is fairly simple to meet the requirements.

A couple of other notes are that if the buyer tests for lead and they find hazards and do not end up making the purchase then you will then have to disclose the findings.  Also if you want to remediate, or do any other work in an area that could be expected to have lead you and/or your contractors need to follow proper lead paint procedures or be subject to significant fines.  Lastly if you are using the property as a rental if you have a tenant that is pregnant or has a small child you will be forced to remediate any hazards so keep this in mind if you are considering this.

 

 

Do you want to sell a house with possible lead paint issues that could hamper your sale?  Do you need to sell an older house in Massachusetts or New Hampshire and are not sure if these issues will kill your sale?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          All of our Articles and Videos on Selling a Home As Is.

–          Our Main Article on Selling a Home As Is.

–          Our Video on Selling a Home As Is.

–          Our Video on Selling a House with a Bad Roof.

–          Our Video on Selling a House with Old Electrical.

–          Our Video on Selling a House with Unpermitted Work.

–          Our Video on Selling a Home with a Failed Septic.

–          Our Video on Selling a Home with Fire Damage.

–          Our Video on Selling a Home with Mold.

–          Our Video on Selling a Home with a Damaged HVAC.

–          Our Video on Qualifying Your House for an FHA Loan.

–          Our Main Article on Qualifying Your House (and Buyer) for an FHA Loan.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Lead Paint via Masek Consulting)

 

Q & A Saturday – What is going on with Massachusetts Foreclosures?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is going on with Massachusetts Foreclosures?

Bank Owned Foreclosed Home - Massachusetts Foreclosure Activity Rising

In this video Shaun talks about the continuing upward trends in MA foreclosures and what that means for the real estate market.

 

Some of the main points covered in this video are:

1)      The 2 year long steady increase in foreclosure petitions

2)      What that means for completed foreclosures

3)      The pattern of increasing completed foreclosures

4)      Where to find out where you can keep up on these numbers (Hint it is right here!)

 

Foreclosure activity is a good leading indicator or where the real estate market is going to go.  The more bank foreclosure properties on the market the inventory there will be (and that inventory is often at lower prices) which puts downward pressure on the local real estate market.  Massachusetts has seen a long steady rise in foreclosure petitions (the 1st step in the foreclosure process) and now is seeing the corresponding steady increase in completed foreclosures as they work their way thought the system.  Nobody can say when this will start to impact the market (though if you need our frequently Market Trend Reports you will see many instances where the market is not as strong as you might be lead to believe), but at some point if more and more REOs flood the market things will fall off.

 

 

Do you want to sell a house that is going into foreclosure?  Do you need to sell a house in Massachusetts or New Hampshire and want to do it before the market correction?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Last Month’s Foreclosure Report.

–          Our End of the year Foreclosure Report for 2015.

–          Our recent video on if we are in a Real Estate Bubble.

–          Our Foreclosure Trends Page with all our Foreclosure reports.

–          All of our Articles and Videos on Foreclosure topics.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

(Image credit: Bank Owned Home Foreclosure via World Property Journal)

 

Q & A Saturday – Can I Cash Out Refinance My Rental?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Can I Cash Out Refinance My Rental?

 Buying a House with Cash - Doing a Cash Out Refinance on a Rental Property

In this video Shaun some of the requirements usually needed if you want to do a cash out refinance of a rental property.

 

Some of the main points covered in this video are:

1)      The typical seasoning requirements

2)      Commercial vs. Residential loans

3)      What if I own it in my businesses name?

4)      Oh by the way you still have to do all the typical stuff to qualify for the loan as well!

 

A strategy many investors hope to use when building a rental portfolio is to refinance properties to get more cash to help purchase more properties.  In the past this was an easier proposition than it generally is these days.  While these loans can be done there are many restrictions on them, in the most common places to get them, which makes it difficult.

If you are getting a typical non-owner occupied residential loan (these are your 30 year fixed rate ones with good rates) you generally have to own the property in your personal name and cannot have more than 5 mortgages in your name already.  Beyond that you have a seasoning requirement that means you have to own the property for more than 6 months to be eligible, and many banks want closer to 12.  Even at that they will often only give you around 70% of your purchase price for that kind of loan.  That might be fine unless you bought something at a good price because it needed work and you spent a lot of the repairs.

For example you buy a house for $100K cash then put $50K in to it to get it in great shape and it then appraises for $200K.  In this case you would hope to get 70% (or more!) of that appraised value so you can get most of your capital our, and still have a lot of equity.  However often at the 6 month mark you might only get 70% of the initial $100K which means you have $80K still tied up in the property.  The issue there is if the exact same deal presented itself again the investor now needs to find an additional $80K beyond what they started with to be able to do it.

 

Do you want to sell a rental house with equity?  Do you need to sell a house in Massachusetts or New Hampshire and can’t get the money out of it you need?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Fannie Mae Cash Out Refinance requirements.

–           Freddie Mac Cash Out Refinance requirements.

–          Our Video on How Many Mortgages you can have.

–          Our Video on the Costs to Rehab a House.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Buying A House Cash via 702homebuyers.com)