Sarah Messali Should you get a starter house right now — or should you wait until you can afford your “forever house”? Here are the pros and cons of each choice.
Living in a multi-family home while renting other units is a great way to build wealth, but it’s not as simple as some make it sound. Read this before you even consider buying a duplex or other multi-family unit.
What is a seller carry back, anyway? A seller carry back is simply owner-provided financing. You may also see this advertised as seller financing or owner will carry (OWC).
This strategy—carrying back a note—can be a useful real estate tool for both the seller and buyer. Seller carry backs are becoming increasingly popular in today’s economy as getting traditional home loans from banks becomes more challenging. Here’s how it works:
To become a real estate agent, you’ll need to enroll in real estate courses, get your license, find a brokerage to work under, and pay for start-up costs. While real estate can be a rewarding and lucrative career, make sure you know what you’re signing up for — before you dive in.
You’ve heard the stories and seen the ads. Perhaps you even know somebody who bought a home for cheap at a foreclosure auction.
Now, you’re thinking about buying a home of your own.
You have CASH from savings or an inheritance.
And you’re tempted by foreclosure auctions (where banks sell foreclosed homes to quickly get rid of them). After all, you see the opportunity to get a lot more houses for a lot less money.
If this sounds like you, let me give you an honest introduction to buying houses at auction.
First, let me be clear: buying a house at an auction IS NOT right for everyone.
You must either have the cash or be willing to take on a risky, high-interest “hard money” loan to buy the property.
You must be careful.
You must know what you’re doing.
And even then, it’s risky.
But if you can pull off buying a house at auction, you can get into a home for as much as 50% off list price.
THE FORECLOSURE MARKET
Foreclosures still abound in the U.S. real estate market, although some areas (think Florida and Las Vegas) have way more than others.
ForeclosureRadar, a comprehensive auction-tracking tool for real estate professionals, states that 80% of homes that were auctioned in California in February of 2009 were sold at an average of 36.3% below listing price and 40% of the homes sold at auctions were sold for 50% or a greater discount. Yes, that is data from February of 2009, but your chances of getting a killer deal on a home at the auctions are only increasing.
Lender Processing Services (LPS) explains that the number of foreclosures in the United States has steadily risen for five straight months in a row and that the current foreclosure inventory in the United States is about 7.7 times the historical average.
The foreclosed homes are out there, but if you want your chance at a foreclosure deal, you’d best be prepared to spend not only money, but a lot of time preparing…
PMI can easily add several hundred dollars a month to your mortgage payment, but you can get rid of it as soon as you have 20% equity in your home. You can reach 20% equity by paying extra on your mortgage, have the value of your house increase due to market conditions, or add value yourself through remodeling.
A short sale is a real estate transaction where the owner’s lender agrees to accept a purchase offer from a new buyer, short of what is owed by the original owner. This could be great for you, the buyer, but it could take a long time to move into your home.
Wait, can my landlord REALLY do that? Maybe not. All states give renters rights. If you rent an apartment, understand the basics of landlord-tenant law.
Finding the right home can mean separating what you want from what you need. Here’s how to think about the difference — plus a checklist to help your house hunting.