House Flipping Opportunities are Back!

After the market declined, many investors found it very difficult to find flipping opportunities. Since home values had reduced by over 50% in many markets, investors were forced to rent their properties until the right time to sell returned.

ATTENTION Investors, release the property managers and hire me as your Realtor. Resale property inventory is extremely low and eager homes buyers are jumping at the chance to snatch turn-key homes within the first few days of being listed. Not only can you sell your rental inventory, there is still an opportunity to purchase distressed, fixer uppers at low price points, and remodel to sell at higher price points. Yes, that scenario I just explained is called Flipping.

Flipping is back. Only for a limited time, so take advantage while it lasts.

Hire a Buyer’s Agent Even for New Construction

 

I love receiving referrals from my past clients. I often receive phone calls from potential clients stating, “my friend spoke highly of you, he/she recommended you as a Realtor to help us with our home search.” Elated that my clients continue to think and speak of me when it comes to Real Estate, is not only a compliment, but an indicator that I have exceeded my client’s expectations.

This call was very similar. My past client gave me a ring, which I thought was a “just touching base” phone call. However, as it turned out, one of his co-workers were stressing about getting into a new place by December. He said my Realtor will take care of you. Within the same phone call, my past client asked me to hold on. Not knowing what to expect, I heard another person speaking on the phone. Hello she said. My co-worker spoke highly of you and said I should speak to you about helping me find a home. She said, “I looked at resales but wanted to take advantage of the new construction incentives while they last”. She then explained to me that she has worked with another Realtor that was recommended, but she was not very response and that she has been to a few builders already to look into the option of new construction.

Armed with the information I needed, I asked that she gave me a couple days to do some research and see what I can come up with. I emailed her two options that would be best. An option A and option B. She loved both, but thought option A would be best. We visited the site and she loved the new construction community. After meeting with her, she got a second opinion from family members then contacted me the next day and said that she wanted to sign a contract. I was able to work with the builder to get my client a great down payment to get the process started. After a month of frustration, I was able to turn it around for this hopeful buyer in just two days. This is why it’s best to hire a Buyer’s Agent even when considering new construction homes. They can narrow in on your needs and provide the best options that meet your needs, saving you time and frustration. Contact me today to begin your home search.

Dupree Lakes New Construction (Land O’Lakes)

Lot	Plan Name	Elev	SqFt	Price WAS	Price NOW	Description	Ready
1802	Mystic II Floor plan	MEM	2621	$274,355	$259,990	4BR/2.5BA/ext lanai 2-car/2-story	NOW
1822	San Jose Floor plan	MEA	2206	$250,018	$229,990	4BR/2.5BA 2-car/2-story	NOW
1817	Captiva Floor plan	MEL	2886	$284,644	$269,990	5BR/3BA/3-car	September
2004	Newbury II 3 car Floor plan	SCL	3197	$327,030	$317,990	5BR/3.5BA/3-car/2-story/40x10 lanai	September
2057	Windsor Floor Plan	TUL	4471	$379,150	$369,990	6BR/4.5BA/3-car/2-story/18x10 lanai	September

Hire Me as your Buyer’s Agent and get a $500 Gift Card at closing when purchasing any of these homes, or any new construction over $175K in Hillsborough, Pasco or Pinellas Counties.

4 Down Payment Assistance Ideas

 

 

Are you wasting thousands of dollars on rent and dreaming of becoming a homeowner? You can already make a monthly house payment (you’re already paying rent), but the problem is coming up with money for a down payment.  It’s not as difficult as you might think. Here are ways to get a down payment with little out of your own pocket.

1. Look Into Local or Federal Government Programs.  You may qualify for special government programs, such as those for first-time homebuyers and members of the military.  You also may have access to aid from Fannie Mae and Freddie Mac (government-sponsored mortgage programs).  Additional resources are non-profit and community groups and state agencies.  There are too many programs to list here and they expire or change frequently. 

2. Have the Seller Finance You. Some sellers may be willing to help you buy their homes. In a “seller take-back,” the seller holds a second mortgage for you and becomes your lender.  You would make your monthly mortgage payments to the seller.

3. Use A Tax Refund. There are options for you to borrow money for certain investments to a specific level and use those investments to generate a significant tax refund.  Obviously, the timing has to be right to so you can use it as a down payment on a home.

4. Ask A Relative or Friend. Tax law allows gifts of up to $13,000 a year to be given without tax consequences to the giver or recipient. This gift-exclusion amount is adjusted annually to reflect inflation (see IRS publication 950 for the current amount).  You can even get a gift from each of your parents or two friends without them having to pay a gift-tax, which bring it up to $26,000.   

This is a great way to get a down payment for a home. In fact, one out of four first-time homebuyers use a gift to make the down payment.  Even if this isn’t your first home purchase you can still use a gift so you don’t drain your savings.  Usually lenders require you to have some money still left in your bank account after closing so they know you’ll make the mortgage payment each month.

Also, using a gift for a down payment allows you to buy the home you want even if it’s not Federal Housing Administration (FHA)-approved.  Some buyers are able to get FHA mortgages that have down payments as low as 3.5% of the purchase price, but others will have to put more down.  With a gift, you can put the typical 10% to 20% down that most lenders require. For example, if you had to put down 10% on a $150,000 home, that’s $15,000. Or, 20% would be $30,000. A gift from relatives and friends can get you there but some of the rules differ depending on the lender you choose. Contact me at 813-419-7009 for a buyer consultation. Together, we can make your goal of owning your first home a reality.

7 Reasons to Own Your Home

Buying a home is one of the biggest and most rewarding ventures of your life. Whether it be purchasing an investment property or your first home, it takes much consideration and planning. In today's market, I always recommend buying vs. renting. In many cases I see renter's paying almost $200 more to rent a smaller space, than it would be if they purchased. There are many reasons to own a home. Here are a few to consider.

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage,your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

Later Marriage Trends Don’t Postpone Homeownership

 

 

A study conducted by Harris Interactive for Coldwell Banker Real Estate looked a changing marriage trends in America and how they impact the purchase of a first home.

According to the study, the timing of a first-home purchase hasn’t changed a lot over the years, but an upswing in later marriages means more couples are buying a home before they walk down the aisle – if they ever do – or making a purchase earlier in the marriage.

About one in four married couples between the ages of 18 to 34 purchased their first home together before their wedding date, compared to 14 percent of those ages 45 and older. According to the survey, 35 percent of all married couples purchased their first home together by their second wedding anniversary; 80 percent of these married homeowners said it strengthened their relationship more than any other purchase.

“What we’re seeing is that young couples are switching up the order and purchasing their first home regardless of whether or not they have set a wedding date,” says Dr. Robi Ludwig, a psychotherapist and Coldwell Banker lifestyle correspondent.

“This is a huge movement within the American culture,” Ludwig adds. “While younger generations may be focusing more on their career, and in turn waiting longer to get married and have children, they are not delaying their dream of homeownership.”

Other survey trends
• 17 percent of all married couples surveyed purchased a home together before their wedding day.
• 72 percent of married Americans in the South waited until after they were married to purchase a home, compared to 60 percent of Americans in the Northeast.
• Only 16 percent of married U.S. adults have not purchased a home together with their current spouse.
Ludwig says the tasks involved with a home purchase can strengthen a marriage. “(Married couples) not only learn about each other’s wishes and dreams during this process, but they also learn how to be practical with each other and compromise,” he says. “Buying a home has more of an impact on a couple’s relationship than any other purchase they will ever make.”

Impact of home buying on a marriage
• 93 percent of homeowners who purchased their first home while married always planned on owning a home after marrying.
• 80 percent said purchasing a home with their spouse did more to strengthen their relationship as a couple and family than any other purchase they have made together.
• Over one-third of married homeowners (35 percent) wish they had taken the plunge (into homeownership) sooner than they actually did.
Ludwig offers the following tips for couples buying their first home together:

1. Decide “needs” vs. “wants,” and be willing to compromise. Ludwig says it’s common for a couple to uncover conflicting values, interests, likes, dislikes and tastes to come that create tension. But no one gets everything on their checklist, so it’s important to compromise to get a home that pleases both people. Patience, understanding, compassion and compromise are key.

2. Work together to prioritize what’s important in a home. Make an independent list and compare notes. Even the closest couples are still two people with separate ideas and agendas. Searching for a home can bring up a couple’s different priorities and ideas about life. Working together to decide what is best for a combined future strengthens the bond between individuals and prepares couples to effectively deal with future disagreements.

3. Be open, honest and organized with finances. This includes the ability to talk about personal savings, debts, budgets, and credit ratings. Money is one of the leading causes of marital discord.

4. Think about the future for three, five and even 10 years down the road. Before buying a home, talk about plans for careers, having a family, and what that means in terms of neighborhood and space. For some people, talking about their future needs creates anxiety. Support each other if it does.

© 2013 Florida Realtors®

Cheaper to Own Than Rent Regardless of Mortgage Rate

 

 

Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For homeownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

In the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. They include:

Miami: 43% cheaper to buy
Fort Lauderdale: 53% cheaper to buy
West Palm Beach: 56% cheaper to buy
Cape Coral-Fort Myers: 45% cheaper to buy
North Port-Bradenton-Sarasota: 51% cheaper to buy
Lakeland-Winter Haven: 55% cheaper to buy
Palm Bay-Melbourne-Titusville: 50% cheaper to buy
Orlando: 51% cheaper to buy
Tampa-St. Petersburg: 55% cheaper to buy
Jacksonville: 54% cheaper to buy

Individual own-versus-rent savings will vary depending on details, but Trulia posed an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

Tips for Owning a Long Term Real Estate Investment

 

Understand What It Means to Be a Landlord

Investing in real estate provides three different ways to obtain a return on an investment. A return could be realized from the sale of a property, through rent collection, and through tax savings on items such as the mortgage interest. When looking to purchase a rental property, the ultimate goal is to ensure that the rental income covers the monthly mortgage, maintenance expenses, HOA fees, insurance, etc.

Secure a Rental Property in an Area with Strong Rental Demand

Communities near universities, hospitals, or schools typically generate a strong rental demand. Condominiums and townhome communities where the Home Owner Association (HOA) maintains much of the exterior are also popular. Please be sure to determine the rental restrictions of the HOA.

Consider Using a Property Management Firm

Determine if you want to manage the property on your own or hire a property management company to handle all of the tenant’s requests. Should you choose to manage the rental property on your own, you will be responsible for handling the tenant’s requests directly. You may have to complete the repairs on your own or hire a professional. If you choose to hire a property management company, the property manager will act as the primary point of contact for all of the tenant’s requests and coordinate repairs with the landlord’s approval. Property management fees may vary but typically includes one month rent for tenant placement and 10% of the monthly rent for property management.

The Numbers Must Make Sense

A good rental property is one that generates enough rental income to cover all of the property expenses and costs. It’s important to review your numbers and determine the gross rent multiplier or cap rate that works for you. Some landlords rent their units between 15% - 25% above the monthly mortgage and maintenance costs. Furthermore, it’s a good business practice to set aside 3% reserves for unexpected maintenance expenses and raise rent each year by 3% - 5%.

Screen Potential Tenants Thoroughly

If you hire a property manager or Realtor, they will handle the screening of the tenant which includes obtaining landlord references, running a credit check and looking at the criminal record. Should you pursue this endeavor on your own, there are a number of online resources to assist you with obtaining the information. Security deposits collected should be equivalent to one month’s rent and deposits should also be collected for any pet the tenant may own. The pre-occupancy walk-thru with the tenant is also important to minimize security deposit discrepancies at move out.

Understand the LandLord Laws

Two resources for rental rules are the U.S. Department of Housing and Urban Development’s Web site, and The Landlord Protection Agency. These sources include state-specific rental guidelines and standardized forms for rental agreements. An attorney or the Landlord Protection Agency also can help draft a lease and assist with evictions. A property manager will also have access to all of these resources.

Tampa’s real estate market has been very favorable when it comes to rental property opportunities. In 2012, many of my investors were able to secure at least five rental properties. Their rental portfolio continues to grow in 2013. If you are looking to buy investment properties in the Tampa Bay area, I can assist you with your investment goals. Start your investment property search today at www.gloriawalters.com.

2013 Projected to be A Great Year for Florida’s Buyers and Sellers

Florida Realtor’s chief economist, Dr. John Tuccillo predicts that Florida’s real estate market will improve in 2013, considering the stronger economy. Over the past two years, job creation has improved across the state. Better jobs, equals higher standard of living and better housing conditions.

Another positive sign includes the low mortgage rates. Some buyers may find it difficult to secure a mortgage, due to stringent credit criteria. However, it still remains an attractive incentive to secure a 30-year, fixed loan with an interest rate under 5%.

Cash is still King. Sellers are seeing more and more cash offers which prove to be very favorable in multiple offer situations. These cash offers are often from investors who will remain active throughout 2013.

Foreclosures, short sales and other distressed properties will also remain very much prevalent in 2013. Although in abundance, the foreclosures and short sales have stabilized and both real estate professionals and buyers have adjusted to this market. Foreclosures and distressed properties are so prevalent that they have become their own property type like condos, single family homes, vacant land, etc.

New home developers will also move forward with some projects this year. They won’t build in large volumes; however, there is enough confidence in this year’s market to build new homes in niche markets.

International buyers and investors are anticipated to continue to acquire homes in bulk. The largest acquisitions are said to be had by Canada and Latin American, specifically narrowed down to Brazil and Venezuela. Florida can also look forward to a number of new residents. Many retirees who lost money back in 2008/2009 are slowly regaining this wealth and are anticipated to move to Florida to retire.