Financial Considerations Of Home Ownership

While we often, refer to, home ownership, as a core component, of the American Dream, it’s important, for us, to take a realistic look, at the obligations, and necessities, involved, if this is, to truly be a dream, instead of a potential nightmare! Before embarking on this house – hunting, process, carefully, introspectively, objectively, examine and consider, your personal reasons, persona, what makes you happy/ satisfied, and whether, it’s a good course, for you. After, you’ve determined, what’s best, for you, and know, what you want, it’s essential to clearly consider, and examine, what you might be able to afford. This means, proceeding, in a responsible, well – planned, and considered manner, focused, on preparing for the many contingencies, of home ownership. With that in mind, this article will attempt to briefly consider, review, and discuss, a few steps, which should, both reduce unnecessary stress and hassle, and maximize the potential enjoyment!

1. Reasons for buying that house: Why do you want to buy, any specific house? Does it meet your present needs, and into the future? Or, are you looking, at a shorter – term, and want to live, there, for a shorter – span, and, then, relocate, when needed and necessary? Are you the type of person, who enjoys moving, or would you rather, remain in your present quarters? What are your needs, goals, and priorities, in terms of location, neighborhood, schools, costs, transportation, conveniences, etc? Why, this house?

2. Down – payment: Do you have the necessary funds, to have the down – payment, while avoiding, placing too much stress, on yourself, because of using these funds? Smart homeowners prepare, and make their journey, far less stressful!

3. Needed reserves: The best way, to proceed, is to put together, several reserve funds, in order to ease your way, forward! Once, you’ve purchased your house, most people face monthly fixed expenses, which includes mortgage payments (including principal, taxes, and escrow items, such as insurance, etc), utilities (electric, heat, telephone, television, internet, etc). Realize, owning a house, requires preparation, for affording the costs of regular repairs, including appliances, heating, water, etc. Create a reserve fund, for this specific area. Also, realize, houses require attention, and certain items, have useful lives, and will need replacing, such as roofs (rated from 20 – 40 years), appliances (including washer, dryer, refrigerator, oven/ stove, dishwasher, etc), painting or power – washing, etc. At some point, many realize, their house needs certain upgrades, renovations, etc. The better prepared, the easier this process!

Transaction of Property Through a Real Estate Company

When it comes to transaction of property, even the wisest, boldest, smartest and the ‘know it all’ becomes nervous. After all you wish to make either a great investment or a profitable sale. Property matters are always stressing. Yes, they do cost your peace of mind. The process of selling and buying of property is complex as well as tiring. There are subtle fears and doubts’ regarding everything till the deal is not done. When selling a property your ultimate goal is to complete the sale at a profitable price and hand over your property in the right hands. When buying a property you aim to get a property which satisfies your needs at an affordable and right price. But how to do that?

The long and tiring process

Lets us first talk about how to sell your property yourself. The first obvious step is to know the market value of your property and then set a price which is convenient to you. The next move is to get a buyer. But, how? Put hoardings, pamphlets and banners to advertise your property and tell people it is for sale. Inform your acquaintances that you wish to sell your property as they might get you buyers in their contact. Buyers will approach you when they get to know that your property is for sale. They will check your property and if they are impressed by your offer they will buy your land/ house. Then comes the paperwork which concludes the deal. When buying a home, you need to collect info about properties for sale either from advertisement on different platforms or from friends and family. Visit the property and check it in the next step. Then comes the negotiation for price with the seller and the purchase concludes with paperwork.

Why you need an agent?

Well! All this might sound easy, but it is not buyers have to wait for the type of property they want for long. Sellers too have to wait as long as 6 months on average to find the right customer. Even the legal work required in papers makes it mandatory for you to visit Law attorneys dealing with property matters, making the process all the more cumbersome. It is exactly here real estate companies and agents come to your aid.

Perks of contacting a Real Estate Company

Many a times you need to buy/ sell homes in a hurry. Like if you have got transferred to a new place you would like to sell your previous home quickly and buy a new one as soon as possible. As already mentioned the process of transaction of property is complex and time taking. But this tiring burden can be reduced to a great extent when you contact and associate with a real estate company or agent. They have all information about which house is for sale at what price and who are people looking for a house in what location and at what price. So you see the first work of finding and waiting for customers when you wish to sell your property is eliminated. When looking to purchase a house you don’t need to hunt anymore. Your property agent will let you know. Not only they end the hunt, but also assist you with legal paperwork relating to the deal.

Reasons Some Rent, Instead Of Own

Although it is generally, considered, to be the American Dream, owning a home, of their own, is not, for everyone! Although studies indicate, in the longer – run, it is more cost – effective, to be an owner, than renter, there are certain individuals, who, it is often, not for. With that in mind, this article will attempt to briefly, consider, identify, and discuss, some of the items, which might make someone, a less, than stellar, candidate, for home ownership.

1. Down – payment: There might be several reasons, certain individuals, lack the necessary down – payment, needed, to put down, in order to purchase a house. Some lack the necessary discipline, while others might not have the financial necessities, or have experienced major obstacles (economic/ financial, etc), which have made it challenging, to put together the funds. Others are afraid, to proceed, because they lack the self – confidence, etc, which makes them, ready, willing, and able, to handle the stress, etc.

2. Reserves: In addition to having the needed, up – front, funds, there are many other financial obligations. and preparations, needed and necessary! Wise individuals put together, at least 6 to 9 months, equivalence, in case of any interruption in earnings, etc. In addition, there should be separate reserves, for initial changes, or modifications, most new homeowners, perform. Then, money should be put aside, for regular repairs, upgrades, modifications, renovations, and unforeseen issues.

3. How much do you want it?: Are you prepared for home ownership? When you rent, your landlord is responsible for necessary repairs and maintenance, but when you own, you not only have to pay for it, but be responsible for either, performing the task (if you are capable) yourself, or bringing in a professional, to take care of it. This includes: electricians; plumbers; painters; concrete workers/ masons, etc.

4. Confidence: Do you have the necessary degree of self – confidence, to trust yourself, and your abilities, to handle the stresses and tensions, involved, in owning, a home, of your own? If the stresses and tensions, are things, you don’t want to get involved in, and/ or, handle, then, owning a house, may not be, for you.

While I personally, enjoy owning my own home, it is not for everyone. One should seek, to better, know, what makes him happiest, most satisfied, and serves his personal self – interest, etc.

Overturned Mortgage Rulings Creates Chaos at the Supreme Court and Bank Stock Falls

This week has seen unprecedented Supreme Court action that has unleashed all kinds of mayhem on an internal level, not to mention the consequences this has had on the financial sector. Over the past few years we have seen thousands of court cases revolving around the financial sector and their methods when it comes to granting mortgages. The primary issue was in relation to the infamous Floor Clause inserted in mortgage agreements (in many cases without advising the mortgage holder!) but a Supreme Court ruling in favour of mortgage holders obligated banks to reimburse any benefits obtained which could be a few thousand euros per case. The secondary issue and the one this article refers to has to do with reclaiming the Stamp Duty paid on the Mortgage Deed.

In February of this year, the Supreme Court by means of its Civil Court issued a ruling that stated the mortgage holder is responsible for payment of the corresponding Stamp Duty, however, this same ruling was OVERTURNED by its own Court for Contentious-Administrative Proceedings in an unprecedented action last Tuesday 16th October 2018 and recorded under Ruling Number 1505/2018. This ruling corrects the existing ruling that was passed only a few months ago and determines that in fact the BANK and not the client/mortgage holder is responsible for payment of any Stamp Duty due when a Mortgage Deed is granted before a Notary Public. How has this come about and what was the reasoning given for this surprising turn of events?

Mrs Lourdes Amasio Díaz, a barrister who represents the company known as “Empresa Municipal de la Vivienda de Rivas Vaciamadrid S.A.” initiated an appeal to reverse a ruling against her client as recorded under Recurso de Casación 5350/2017 and this is what was considered at the Court for Contentious-Administrative Proceedings. As stated previously, this appeal made Magistrate Jesús Cudero reconsider the Supreme Courts previous ruling and side with her client. The criteria used to arrive at this decision was the fact the only interested party in registering a mortgage loan at the Land Registry Office is the bank because it is the only way they can make claims against the mortgage holder in the event of non-repayment of the loan, therefore the bank should be liable for the resulting tax.

This about-turn can seem conflictive but as it turns out when the matter was apparently resolved in February 2018 at Civil Court, the same issue was already on the table at the Court for Contentious-Administrative Proceedings which now does not hold the same point of view.

The result of last Tuesday’s ruling is a massive dip in the stock market which has affected Spain’s major banks, primarily, Bankia, Bankinter, BBVA, CaixaBank and Banco de Sabadell. The one major factor that has not been detailed in the ruling is whether the Stamp Duty for mortgages signed over the past four years can be reclaimed or whether it only applies to new mortgages. Of course, the banks interpret the ruling to apply only to new mortgages, so this point must be clarified.

It would appear the Spanish banks’ reign of tyranny is over and they are being made accountable for their one-sided dealings with their own clients, however, this ruling has stirred up a hornet’s nest and it is far from over… Not even 24 hours after this latest ruling was passed, the Supreme Court has made yet another astonishing decision to review this sentence. Mr Luis María Díez-Picazo, President of the Court for Contentious-Administrative Proceedings has decided it would be prudent to delay this ruling until other considerations can be examined. By this he is referring to the effect this has had on the stock market and what it would mean if the banks have to reimburse what experts estimate between 6.000 and 24.000 million euros.

A Plenary Session of the Court must be held within the next few weeks in which 31 magistrates must decide whether the latest ruling that determines the banks are responsible for any Stamp Duty that arises from mortgage deeds will be accepted or not. What is going to happen in the meantime? Well, in theory, a legal ruling was passed so notaries will continue to advise that according to the ruling of the 16th October 2018 and applicable from Thursday 18th October 2018, it corresponds the banks to pay the tax. The shock attempt on Friday to reverse that sentence is a mere Memo but does not qualify as legislation until such a time the plenary session decides which ruling stands.

Some clients who were due to sign for mortgage loans at Notary that Tuesday postponed their appointments until the outcome of the court case was known but even though the ruling is now debatable, Stamp Duty in the Canary Islands for example is payable within 30 days of signing the deed (in other autonomous regions the deadline is 60 days) so I expect the banks will until the last moment before paying in case they can pass that expense back to the mortgage holder.

What we have here is a split decision within the Supreme Court itself with two very different rulings issued by two different chambers. My personal opinion? A matter of this magnitude should have been determined at a Plenary Session in the first place instead of allowing two chambers to pass a sentence on different cases which has allowed this gross conflict to occur. We’ll have to see what the outcome of the Session is and hopefully it will be in favour of the little guy to help put an end to what I call the Banks’ Reign of Tyranny.

Five Keys to Real Estate Flipping Success

Make your fortune in real estate. It is not that hard once you get the hang of it. Real estate flipping can be an extremely high paying career, but I see way too many people give up on it. The turnover in this industry is exceptionally high. I noticed the high turnover early on and have watched to learn why some people kill it while others disappear. This has been important to monitor to help myself and my clients last in this amazing business.

I have been in the real estate field for the last 16 years and my hard money lending company finances around 150 deals a year. Here is what that experience has taught me about being a successful fix and flipper.

Mindset: This is where it all starts. For the last 3 years, I have felt myself fall into a little lull and have realized that this occurred because of my mindset. Your mindset could be a lot of things, but the basic concept is that what you believe will happen… does. Sometimes just convincing your mind that you will hit a goal takes work. Not to mention the work that it takes to actually hit that goal.

Focusing your mind on positivity is a great start, but you really need to believe you deserve the success you desire. Meditation and affirmations are fantastic ways to accomplish this.

Hustle: Nothing is going to be given to you. When I was going through my struggles to hit some financial goals, I had to keep reminding myself of this. Times can get hard and things can feel unfair, but the reality is, no matter how much you don’t want to believe it, you are the only one responsible for your success. I would tell myself this over and over. “If I want it, I need to earn it” I had to get up in the morning. I had to deal with the problem on my plate. I had to stay up late or work on the weekend. I had to put in the work to get the results. Because I decided to be successful, I decided to work hard.

Network: As we have learned. It is not what you know, it is who you know. I constantly try to team up with people smarter than me, that can both help me learn and help me get results. This has resulted in millions in profits. I also feel very lucky to have a network that can solve just about any problem I run into. If I am rehabbing a house and run into a problem, I have a list of people I can call for help. If they don’t know how to help they will know someone who does. I lean on my attorneys, my CPA, partners, wholesalers, and other professionals on a regular basis.

Education: To make my top five list you know I believe this is important in your success. Constant improvement is essential and the exciting thing about this, especially early in your career, is that growth is exponential. As you learn and implement ideas into your business, your business grows at a faster and faster pace. Obviously, for this to work you will need to learn AND implement. Many people learn all about investing and never invest. That comes down to the investor mindset. That’s why, I believe, you need all five of these essential keys to be a great fix and flipper. The good thing is this is possible for everyone, including you.

Access to Money: So, this one might be self-servicing because I am a lender, and this could fall within the Network category but let’s face it, if you don’t have money you don’t do deals. Money can come from many sources including cash you have in the bank, money you borrower from institutions, partners, private and hard money loans. Many times, you will need a combination of these sources to get a deal done or to maximize profits. This can all be learned as part of your education or you can choose to work with a professional that can advise you on the best way to navigate this complicated subject.

Owning a Classic Craftsman Home in Northeast Los Angeles

NELA home architectural styles vary widely: Modern, Art Deco, Victorian, Tudors, and others. But perhaps the Craftsman residences get the most attention.

Craftsman homes are among the most sought after real estate in Northeast Los Angeles neighborhoods. One of the many reasons why homes for sale in Pasadena, Eagle Rock, Hermon and elsewhere have become hot commodities is a renewed interest in so-called “character homes”. But Craftsman homes come in significant variations, sizes, and conditions – opening up opportunities for homebuyers in a range of prices.

The high value – i.e., prices ranging from $400,000 on past $2 million – being placed on Craftsman homes in NELA is an interesting turn of historical events. These solid structures were originally designed for the advent of middle class home ownership in the late 19th and early 20th century. Gone were the features of Victorian homes that included butler’s quarters and kitchens only used by household staff. Instead, the family prepared their own meals while some features of kitchens blended with dining rooms – which are why there are those built-in, glass-front cabinets for dishware that was previously stowed out of sight from formal dining rooms.

The characteristics of Craftsman homes range from low-pitched roofs to deep eaves, exposed rafters (usually with distinctive decorative knee braces), dormers, one- to one-and-a-half stories, large fireplaces (often flanked by built-in cabinetry), and double-hung windows. Outside, Craftsman bungalows had large porches that welcomed newcomers to the California lifestyle, which offered a longer outdoor season for people arriving from the Northeast and Midwest.

Note that Bungalow and Craftsman style homes are often – but not always- the same thing; Bungalows always have that front porch (“veranda” if you prefer), while Craftsman sometimes do not. (If looking at homes for sale in Glassell Park, Garvanza or Mt. Washington, you might nerd out with your realtor by looking for the distinction.)

A further distinction might be made between Craftsman homes designed by certain architects (Greene & Greene built the trend-setting larger versions, which drew from Spanish mission and Japanese aesthetics), while Craftsman-style homes had a lower cost and were more modest in proportions and features. Craftsman-style homes may have shipped by train in a kit (e.g., “Sears homes”) or been a much-replicated design used by 1920s developers who knew a popular style when they saw one.

What made Craftsmans so popular when first built is what makes them equally popular today. These solid buildings have a relaxed style, one that accommodates an easy flow between rooms and activities. Mothers and fathers making meals in the kitchen can take a break to help children with their homework while keeping an eye on something cooking on the stove. Throw a party on the veranda but some guests might easily drift inside to admire the Arts & Crafts detailing of the cabinetry, fireplace surround, or wainscoting. They are healthy, unpretentious and sturdy: anything standing today has withstood a century of seismic activity, testimony to the sturdy craftsmanship of these Craftsman homes.

Tips for Getting New Clients As a Realtor

Admit it or not, finding clients on the vast real estate market is very challenging. It is challenged by the existence of big real estate firms which employ hundreds of experienced real estate agents on their teams. If you are a newbie, you could easily be swallowed by the efforts exerted by the established firms. But have you ever think that they also started out as rookies in the field? If you are in this situation, here are some tips to at least give you a leverage on finding the right clients for you.

Create your own circle of offline connections and influences. As much as the online world is essential to widen your connections, the offline connections and influences is equally essential. Start with your family and friends. Then add your past classmates even those from your elementary days whom you still remember. Your teachers can be great additions. Move on to those whom you are tapping services as professionals such as your doctors, dentists, hair stylists, pet groomers and fitness coaches. The parents of your children’s classmates and friends can also expand your offline connections. If you have business contacts, add them as well. Don’t forget your neighbors. They can be great sources of referrals.

Build a better online network of friends. Through social media, you, as a real estate agent is bestowed greater power to enhance online connections. Your network can be a greater web of interconnected persons starting with your family members down to their own friends, acquaintances, friend of friends, and so on. Before you notice it, your network has expanded to include professionals of diverse titles not only in your locality but also in adjacent towns and nearby cities. If you think they are not relevant, you may be wrong with the impression. Anyone in your online network of friends can always be a great source of referral even those who you seldom see to be adding activities in their social media accounts.

Send mailers, both online and offline. Now that you have established both your online and offline connections, it is time to introduce yourself as the rookie real estate agent. For offline mailers, be sure to have a formal tone. Give your full name, license number, the firm you are connected too, its address, and contact numbers of you and the firm. Inform them of the services you are offering.

For online mailers, the same can be followed. But since it is an electronic form, you may want to add some enhanced graphics and video.

Create your own website. For personal branding, having an own website is an essential. This is where you can provide listings, value added services, frequently asked questions, and even informational articles that can help spark the interest of your potential clients. Support it with a blog, and connect it with your social media accounts in different real estate online platforms.

Choosing the Best Green Home Builder

Today many people are “going green”, which means that they are becoming environmentally friendly in how they live their lives and minimizing the harm done to the earth. When some people decide to build their home from the bottom up, they decide to have a green home builder build their home. This contractor would build their home with low environmental and energy efficiency in mind. To find a green home builder you should talk to the contractors in your area. Some that will travel to your area to build your home but their services will add more expense to the cost of your home.

To ensure that you will have the best green home builder ask them what type of building material they will use. You should also inquire about their disposal methods to make sure they are in compliant with sustainability practices. The materials that they should use are non-toxic when possible, and environmentally friendly. They should also be materials that come from renewable sources, or sustainable material. This can include materials from homes that have been knocked down. This material can include old doors, cabinets, some of the wood to accent the home such as using the material for ceiling beams, and more. They should try to avoid using plastics and choose their wood carefully. You should ask to see examples of the green projects they have completed. Their construction philosophy should focus on green building. It should not just focus on using green techniques as a secondary technique. Make sure that the contract you sign states that it will be constructed from sustainable and green material.

A home builder may tell you that they are using green building techniques but it could be easy for them to start using less environmentally friendly techniques and designs to save money on materials so they can put more money in their pockets. This is why you need to be sure that they are a reputable home builder and have good references as a green construction company. They need to be knowledgeable about green techniques and processes and committed to green construction and design. If you want your new green custom built home to be built using unconventional techniques make sure the home builder can demonstrate they understand the techniques you want and can do them correctly.

Before you choose a green home builder, you should educate yourself on what constitutes a green home and the process to build one. This will help you to determine a good green home builder and to know if they are cutting corners using non-environmentally friendly material. Having a green home can save you money on heating and cooling costs, and if sustainable material is used it can save these materials from being disposed of improperly.

Green Homes for Sale

If you were looking at real estate ads and saw one that stated “green homes for sale”, you may at first wonder why anyone would a listing stating the color of their home. This is not what this type of ad means. It is just stating that the homes for sale are earth friendly and energy efficient. Green homes for sale are being built in an effort to less the carbon footprints we leave behind.

When you purchase a green home they will contains all or some of the following features that are earth friendly.

• Fiber cement siding
• Alternative power system like wind and solar
• Recycled building insulation
• No VOC stains and paints, which stands for volatile organic compound. It is any compound that is carbon-based and will vaporize at standard room temperatures. Some of the more prevalent ones are formaldehyde, acetone, and methane.
• Solar powered hot water heating

Even if you do not live in a green home, there are things that you can do to increase your energy conservation. It will even help contribute to saving our environment. Making your home a green home can help to reduce global warning and save the homeowner money. It will significantly better the environment and require little effort for the homeowner.

Making a green home

• Instead of using the standard incandescent light bulbs start to use compact fluorescent light bulbs (CFLs). When you switch to the CFL’s you can save per year over a hundred dollars. You can find these lights in the same aisle as your regular bulbs but they are little more expensive. In the United States, if every house switches the type of light bulbs they were using to CFL’s there would be a reduction in greenhouse gas emissions of one trillion pounds.
• Install a thermostat that is programmable-with this type of thermostat the homeowner can program the thermostat so that the air conditioner or heater is off when homeowners are not at home. The programmable thermostat can be programmed so that it will cool or heat your home shortly before the homeowner arrives home. This change could save the homeowner ten percent or more on cooling and heating costs
• Plug air leaks-this will help the homeowner save money and practice conservation. You can do this by installing weather stripping, keep the temperature in your home from rapidly fluctuating, and caulk windows correctly to stop air drafts.
• Energy Star® rated appliances-these reduce the amount of electricity that is needed to operate them so they have less of an impact on the environment. They will also save on your energy bill.

Improving Seller Calls

It was a fall Sunday morning before a Denver Bronco game. I was playing fantasy football and desperately wanted to watch the pregame shows to make the best decisions for my fantasy team. There were bragging rights on the line after all, but instead of going to the remote, I went for my phone.

I had a small office in the basement of the house I was living in located in Thornton, a northern suburb to Denver. It was basically a hallway outside of the laundry room and my roommate was busy washing her clothes. I had to stand at my desk in order to let her pass each time she needed to check on things. There were several other places I would have rather been and other things I wanted to be doing. I did not want to be in that hallway with a phone to my ear while laundry was blasting away, but I had a goal to reach. I needed to make 30 calls before the Broncos kickoff.

This was my routine every weekend and most week nights. I had a great phone script, but it was the tweaking to that script, making it mine, and the practice on the phone that helped me become successful. I purchased more than 50 houses by calling sellers directly, and over the years I learned what makes an investor successful on the phone. Here are three keys in cold calling sellers that will make you successful.

Have a script. Routine breeds success. This is nothing new, but it is worth mentioning. The most successful people in the world, in any area, have a routine for what they do best. This could be a professional golfer, a builder, a waiter or waitress, or a school teacher. In business, if you find something that works and you do it over and over, you will become rich. It is really that simple. A script is your routine, it helps you work your way through a call and should be used every time you make a seller call.

Make the script your own. Although a script is extremely important, it can also hurt you. If you follow a script that you are not comfortable with and read it word for word, you will sound nervous and rigid. This will make the motivated seller uncomfortable and make them want to end the call. It is best to find a script that you can change a little to fit your personality. It is also important to know that you need to be prepared to veer from the script and go with the call. Enjoy the conversation. That is why I like real short scripts with plenty of flexibility.

Don’t sell on the phone. When I was just starting, the script I was using had me make a creative offer on the phone. If the seller was open to the offer, I would set the meeting and negotiate the numbers. It took hundreds of calls to get an appointment with a seller, because I was over qualifying them by selling on the phone. Maybe someday your time will be way too valuable to meet with sellers that you might not do business with, but for most of us, getting the appointment with a qualified lead is the most important result. The way you do this is to qualify their motivation and then schedule a time to view the house; the goal is not to get a deal on the phone. If they ask for an offer you can simply say you need to see the house before you can discuss it and that they should invite you over. The qualifying question in my script is, “Sounds like a great house. Why would you even consider selling?” The answer to this question will give me enough information to schedule a meeting or not.

Focus on “no” oriented questions and never trap your lead. Many sales books teach “yes” oriented questions. Hearing the word no is scary, and as a sales person we are taught to get our prospect saying yes. This is done by asking questions that the only answer is yes. For example, you might say “Most people are looking for the best price for their home, do you agree?” Of course they are going to agree with that. Doing this can create some unease and make them uncomfortable with you. People want to feel like they have options and giving them the option to say no can be powerful. A question like “Do you disagree?” will be much more powerful than “Do you agree?”

Another strategy often taught in sales that makes people uncomfortable is giving them limited options. I think this can be extremely useful and is a great strategy, but you need to be careful. I had a solicitor call me the other day asking for a donation. His questions were, “Would you like to donate the normal $50 or would $25 be easier?” This is a great close when you have rapport with someone, so it could be very effective in a meeting, but it made me hang up the phone. I don’t know you!