Posted by Paul Sian on Thursday, April 30, 2020 at 7:00 AMBy Paul Sian / April 30, 2020Comment
What To Consider With Updates For A Home
With the change in economic conditions some who were previously considering selling their home may decide to stay put and instead update the home. Others who still want to sell their home might be considering what updates can help them obtain the best value for their home. This article explores the types of updates homeowners may want to consider and what makes sense for homeowners who want to stay put versus homeowners who want to sell soon.
Updates For Those Wanting To Sell
For those homeowners who want to sell their home the updates done should be ones that bring the home up to a modern look and function. Homes with old appliances, outdated cabinetry and fixtures can easily get a good return on investment (ROI) without going to extreme lengths in terms of spending on the updates. Since the homeowner plans on selling their home it does not make a lot of financial sense to overspend as the short-term ROI will not be positive especially if they plan on selling within 6-12 months. Instead homeowners should be looking for cost effective updates that make the home look better than it already is and will satisfy buyers who are looking for modern features.
Kitchen appliances are one of those areas where home buyers look to right away when they are touring homes. People spend time in the kitchen on a daily basis and having modern updated appliances are something they expect to have when buying a home. Homeowners...
Posted by Paul Sian on Thursday, April 23, 2020 at 7:00 AMBy Paul Sian / April 23, 2020Comment
Why Now More Than Ever It Is Important To Have A Mortgage Pre-Approval Letter When Buying A Home
With the impact of the COVID19 shutdowns still echoing throughout the economy many home buyers are wondering whether now is the right time to buy a home. Many still desire a home of their own for building equity, laying down roots or simply being able to say they own a home. With most home purchases happening with a mortgage it is very important that home buyers understand the process of getting a mortgage and get their pre-approval before they start looking for a home. Getting a pre-approval lined up ahead of time is critical due to the changes brought about as a result of the virus. This article explores some of the impact of those changes.
What Does A Pre-Approval Letter Do?
First and foremost, the process of sitting down with a lender for getting pre-approved should involve asking the lender what types of mortgage loans do they have and what will work best for you. Mortgages come with different down payment options and different payback options that buyers need to understand so they can fit the mortgage payment into their budget. Most home sellers will not take an offer seriously without a pre-approval letter and even more so during this time frame of the virus many home sellers will not allow buyers into their home without the same letter.
A pre-approval letter means a mortgage lender has analyzed a home buyers credit, debts and assets and determined they qualify for a mortgage loan to buy a home for no more than a certain amount. The pre-approval letter is basically a good to go decision by a lender that they will lend to a home buyer so they can buy a...
Posted by Paul Sian on Thursday, April 16, 2020 at 7:00 AMBy Paul Sian / April 16, 2020Comment
For this podcast about insurance I chatted with Matt Kincaid of Meridian Captone. In the podcast we discussed insurance for homeowners and real estate investors. Topics included first time homebuyer tips for arranging insurance, insurance for real estate investors with long term tenants and insurance for investors working in the short term rental space.
I hope you enjoy the podcast and find it informative. Please consider sharing with those who also may benefit.
Posted by Paul Sian on Thursday, April 9, 2020 at 7:00 AMBy Paul Sian / April 9, 20204 Comments
How Real Estate Investment Owners Should Be Dealing With The Lack Of Rent Payments
With the recent closure of many businesses that were considered non-essential due to the COVID-19 (corona virus) many people find themselves without work and without pay. As a result real estate investment owners are also facing challenging times due to their tenants being unable to pay the rent. Many governments are also banning evictions during the time of the virus. This article looks at some of the ways landlords can deal with their rental income being reduced during this time of COVID-19.
Cash Reserves Are Important
This tip is an often repeated one but still important to talk about here. Those who are investing in residential real estate need to maintain cash reserves in order to cover for times when major repairs are needed or during times like these when the rent may not be coming in. Buying investment real estate requires the owner to have cash on hand to make the down payment and pay for closing costs. Investment owners also need to have a reserve fund while owning rental property and those funds need to be easily accessible. Funds located in IRAs, 401(k)s, life insurance policies that are not that easily accessed can work as reserves for mortgage purposes, but they are not the right type of reserves the investment owner should have for their rainy day fund.
Investment owners need to have a separate bank account where their cash reserves are held for a time of need like during recent shutdowns due to the virus. Virus issues aside cash is still needed in cases where large repairs may be needed (HVAC, plumbing, fire issues etc), where...
Posted by Paul Sian on Thursday, April 2, 2020 at 7:00 AMBy Paul Sian / April 2, 2020Comment
Tips For Avoiding Foreclosure
With the recent troubles caused by the COVID-19 virus (also known as Corona virus) many homeowners find themselves stuck at home with no ability to go to work. While some may be able to work from home and still get paid, those who cannot work from home may start to find their financial resources under pressure. This article provides tips for homeowners to help prevent the possibility of a foreclosure on their home.
Communication With Lenders Is A Must
Whether a homeowner is expecting to be late on a credit card payment or their mortgage it is always best to contact the lender before the payment is due and find out what options are available. Simply missing a payment without communicating with the lender is more likely to end up with the lender sending a late payment notice to the credit reporting agencies and tacking on late penalties. Due to the extreme nature of the virus situation many lenders are understanding of situation homeowners find themselves in and are offering to waive late fees and offer payment options. Without contacting the lender though they have no idea of an individual situation and will proceed with business as usual.
Many lenders are offering forbearance on bill payments in the short term which basically means they will accept that debt payments cannot currently be made and are willing to work with homeowners in order to avoid foreclosure. An important thing to note though is if a homeowner can afford to pay their mortgage because they are working and getting paid then they should continue to do so. Do not consider this as a mortgage or debt payment holiday. Forbearance simply means the lenders...