Do you know about the reserve requirement for people who are buying any home beyond your primary residence? I am sure you know that the mortgage process is complicated and full of paperwork. Unfortunately, I have to tell you it only gets worse with the more houses you buy. Not only do you have to qualify for the new house, you have to prove that you can still be responsible for the old houses. Some of the requirements are easy such as just … [Read more...]
4 Questions to Ask BEFORE You Sign the Dotted Line
There are some questions to ask during your first interview with a potential lender, bank, or broker when you are looking to get a loan. I would suggest printing off this list and writing all the answers down as you ask them. It is hard to keep everything straight once you call more than one bank. Questions to Ask Before Signing 1. Rate/APR. APR stands for annual percentage rate. It is the TOTAL cost of the loan. This is the best figure … [Read more...]
Shopping for a Broker: Cheapest isn’t Always Best
Are you looking for a broker? One thing you need to realize is every institution is different, so you need to shop around. Everyone always tells you to shop around for price. They will tell you that bank and credit unions are cheaper so make sure you check them out. What people don't tell you is that the rules and regulations are ALSO very different. Tips for Shopping for a Broker Unless you have the perfect 760+ credit score, a HUGE … [Read more...]
Mortgages De-Mystified
For most people including myself the first time I bought a house, the mortgage process was so overwhelming and stressful, it became scary. You feel like you are literally signing your life away to documents in a foreign language, albeit the words are in English. The thing that I still find funny about my first loan was that I had a background in business and I still walked away with a huge headache. I was confused, irritated, and honestly … [Read more...]
Don’t Fall Into the Cheap House Trap!
Beyond, taxes, insurance, and HOA fees, there are many other costs to living such as commuting and education. I have known many people both directly and through friends that have bought cheap houses with long commutes or in poor school districts because that is all they could afford. For me, the kicker was they also had LARGE commuting and private school costs. Like every thing in life we make sacrifices if it is important. Therefore, if a … [Read more...]
Buying a New Build or a Resale: What’s Best?
Is buying a new build better? Or is the best option buying a resale home? Many ask the question, so let's determine the better deal. Now that the crisis is over and new houses are being built at all time low prices, there is a new dilemma occurring. The question is, "What do I buy: a new house or resale?" Developers are able to offer really low prices due to buying them at "fire sales" when the original developers went belly up. Therefore, … [Read more...]
How to Choose a House that is Not a Money Pit
Finding the right fixer upper that adds value and is not an utter money pit is very important! My inspiration for this article came from a conversation I had with a woman on Military Facebook page (a great and rich resource that I highly recommend). She asked me how I picked our houses since I told her we don't buy flips. We buy the ugliest house in the best location and school district. Location is key as that cannot be changed. While … [Read more...]
Why Distressed Property is the Best Kept Secret
Can you keep a secret? My favorite type of property is a distressed property. They are properties that are short sales and foreclosures. Even better is when it is undervalued due to cheap cosmetic damage. Quick fixes allow me to experience instant equity. What is a Distressed Property? My definition of cosmetic damage are properties that need unskilled repairs, new flooring, paint, appliances, etc. They are cheap non-structural fixes that … [Read more...]
The Down and Dirty on Short Sales
If you are anything like me, stories are great, but you want facts. Like everything else found on Reluctant Landlord, these facts, are based on my experiences, views, and markets. Use this knowledge to give you the power to know how to ask the right questions. What is a Short Sale? The Good No Haggling - Since there are no profit gains we had a lot more experience with the sellers taking "low" balls. Then it was up to the banks to … [Read more...]
Why We Buy Short Sales and Foreclosures
Short sales and foreclosures are great properties for everyone -- even the average investor. They can be a great investment platform even for a newbie. There are lots of stereotypes and "misinformation" from TV networks like HGTV to friends you admire and listen to. I know many people who will not even consider these types of sales due, in my opinion, to misinformation. The first thing people say when they find out our "type" is that we are … [Read more...]