United Country Real Estate Affiliates Raise $25,000 to Aid People of Ukraine

/in /by

Image from Pixabay

Live Auction Raises Total of $50,000 for Multiple Charities

United Country Real Estate affiliates raised more than $50,000 during a live auction at their annual Training and Awards Convention on March 11. The company is pledging $25,000 of that to aid the people of Ukraine while the rest will be donated to The Rocky Mountain Elk Foundation, Marine Mammal Center and the Remember-A-Vet Wreath Project.

“United Country affiliates have made and continue to make huge differences in the communities they serve, across America and now across the globe. In the last 5 years alone, United Country affiliates have raised an amazing $35 million for charities and causes across the nation,” said Mike Duffy, president of United Country. “Last week, the unique items that were donated and auctioned furthered that effort and will importantly aid the people of Ukraine. I am proud of the leadership and generosity of our team and am in awe of their accomplishments.”

Among the unique items that were auctioned off were a Henry Rifle custom engraved with the UC Ranch Properties and Realtree United Country logos in a 24-karat gold inlay; a custom, beautiful “Ride the Wave” Charcuterie Board by Vierra Design Group; an original duck hunting American flag painting by Jackie Stocking; and a trip to the San Juan Islands in Washington. The items can be viewed on the United Country Real Estate Facebook and Instagram pages.

As the largest network of auction real estate professionals nationwide, United Country had professional auctioneers and ring men conduct the live auction. All proceeds from the sale went to charities selected by the donators. Each winning bid was then matched by United Country to aid efforts in the Ukraine.

“The United Country auctioneers assist with a tremendous number of charitable auctions each year,” said Jimmie Dean Coffey, auctioneer and director of business development for United Country. “Benefit and charity auctions have a long history in the world of auctioneering and with United Country auctioneers in local communities across the nation. I am very proud to see that our United Country affiliates have stepped up once again and raised more than $50,000 at our annual convention for some great non-profit organizations and causes.”

Learn more about United Country Real Estate at www.UnitedCountry.com or United Country Auction Services at www.UCAuctionServices.com.

Financial Freedom: Embracing Passive Income Investing

/in , , /by

Image from Pixabay

By Dr. Chandra Mishra

Financial freedom is crucial at any age. The genre of intelligent millenniums knows how to create variable income sources to gain financial freedom as soon as possible.

Passive income is the top contender for financial freedom which means no more worries about your ongoing bill payments or making rent. Once your basic needs are met you are left with enough to fulfill your desires; paying off debts, going on a long vacation, or indulging in luxurious recreation facilities.

Today we are clearing the dubious air about financial freedom as people have a misconception about investment fundamentals.

If you think working tirelessly and continuously is making you rich and financially free, you are mistaken. As being rich need not necessarily mean your financial freedom. Also you are losing time which you can’t buy.

Financial freedom comes when you build yourself multiple sources or streams of passive income that can pay for your expenses and leave you to live your life on your terms with minimal need to indulge in strenuous work.

Ways of Creating Passive Income

You are generating passive income when money keeps flowing in irrespective of your active working status.

Image from Pixabay

It may sound strange, but it does make a lot of sense as passive income can be made in two primary manners:-

1) Your Investment Works On Your Behalf

You invest strategically in projects that create monthly income with a fixed or standard rate of return.

The option here could be investing in instruments like bank and government bonds, corporate bonds, rental property income, multifamily/apartment investing that can quickly help you get out of the rat race.

2) Your Business Working On Your Behalf

Under this method of generating passive income, you indulge in a passive business income-making strategy. As a smart business person, you create a business that has the potential to run without your active participation. You hire and create processes to run the business. Following this strategy will offer continuous cash flow, whether you are parting hardship to your business venture or not.

Both investment and business work in synchronization for passive income generation for an entrepreneur.

Multifamily investing for busy professionals is one noticeable option that can create a consistent income without too many risk factors involved.

For busy professionals who cannot spare time consistently to keep track of their diversified investment portfolio, their entire investment portfolio can be constituted around multifamily real estate investments. It is a great foundation with very low volatility and opportunity to capitalize on passive income.

Why Multifamily Real Estate Investment Is A Sound Decision For Passive Income?

Image from Pixabay

Multifamily real estate can act as a catalyst for your investment career. And, this is not without the reasons:-

1) Easier Availability of Finance

If you think the enormous size of multifamily properties will call for difficulty in arranging finances, don’t let their size befool you. Multifamily properties are more accessible to finance than single-family homes. The price of multifamily properties is not the deterrent in fetching easy financing options. These properties are more likely to be approved by financial institutions like banks for a loan because these are more likely to generate cash flow month after month. This guarantees timely loan repayment.

2) A More Fabulous Kick Start

Acquisition of multifamily real estate is a better investment with low volatility which could be your fantastic end-games strategy too. You will retire with multiple streams of income. If you want to start small, A small multifamily property acquired, you can live in one of the units and pay down the mortgage you receive from the tenants residing in other units. Besides rent, you will earn appreciation on your investment capital.

3) Light Years Ahead Of Stock Market Return

Multifamily syndication returns have significantly gone down in the last two years. Yet you can lay hands on a 12-13% average annual return which is significantly higher than stock market returns.

Additionally, you are not even paying taxes (decreased taxes are the most extraordinary relief anytime) which means you are light years ahead of stock market returns.

4) Enjoy Cost Segregation Benefits

Image from Pixabay

Under the cost segregation, multifamily real estate investors enjoy reduced current tax liabilities which imply upfront cash flow. Without cost segregation, multifamily rentals are depreciated straight line for 27.5 years.

However, with cost segregation, the depreciation on specific real estate rentals’ components is faster (like in five, seven, or 15 years). The faster depreciation means you can save/make more money with depreciation and cost segregation applicable in multifamily investment projects.

Additionally, the government taxes income from multifamily investment properties at a passive income rate. This means no employment taxes.

Conclusion

Hope our little effort will help you embrace passive income investing for attaining financial freedom the soonest. Time is to start today, you can easily partner with someone or invest passively completely. What steps will you take in the coming weeks to create passive income?

For more information, contact your financial/legal advisor or financial counseling firm before investing.

Breaking News: Proposed CA Bill Would Impose 25% Gain Tax, Plus Time Restrictions on House Flippers

/in /by

Image from Pixabay

By Stephanie Mojica

Alleging that house flipping is preventing average people from buying a home, a California Assembly member has proposed a law that would require short-term real estate investors to pay a 25% gain tax, according to CBS 8.

If passed, the California Housing Speculation Act would start on January 1, 2023. The Assembly member behind the bill is Democrat Chris Ward from San Diego County’s 78th District.

There is an “influx of short-term investors trying to get into the market, outbid San Diegans and Californians with all-cash offers, and drive the prices up for everyone,” Ward told CBS 8.

The Assembly member also cited concerns with California housing shortages making it difficult for people to find affordable housing.

Norm Miller, a real estate professor at the University of California, San Diego, said even if the law passes the odds are still favorable for real estate investors.

Investors will still get “unlimited tax write offs from the mortgage interest and the property taxes,” Miller said. “[They’ll] also get depreciation, which is something an owner does not get on their own personal residence.”

To voice your opinion on Chris Ward’s bill, call his office at 619-645-3090. Visit https://findyourrep.legislature.ca.gov to find the contact information for your representative and call their office as well.

Higher Chicago Foreclosure Activity Not A Problem

/in /by

Image from Pixabay

By Gary Lucido

I’m going to stay out on this limb that I crawled out on but apparently I’m not alone out there. According to ATTOM Data Solutions February Foreclosure Market Report the nation saw a 129% increase in foreclosure activity from a year ago. However, that percentage is kinda meaningless given that foreclosures were basically shut down last year. The graph below puts this dynamic in perspective for Chicago where there was a 328% increase over last year and a 29% increase over January. As you can see activity is probably no higher than it would have been had the pandemic never happened. As Rick Sharga, executive vice president at RealtyTrac which is owned by ATTOM, said:

This isn’t an indication of economic turmoil, or of weakness in the housing market; it’s simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially-impacted homeowners from defaulting.

In this foreclosure report both the Chicago metro area and Illinois got honorable mention for being among the top 5 metro areas and states respectively with high foreclosure rates. Of course, that’s because the rest of the country’s housing markets are so damn strong right now.

After a dramatic plunge following the pandemic foreclosure moratorium Chicago foreclosure activity has just now begun to resurge now that the moratorium has ended.[/caption] One of the reasons for our optimism is that delinquencies have dropped down to pre-pandemic lows as shown in this graph from Black Knight’s January Mortgage Monitor Report. That shouldn’t be much of a surprise given the strength of the job and housing market.

The nation’s mortgage delinquency rate continues to improve and seems to have recovered from the pandemic.

Chicago Shadow Inventory

The number of homes that are in the foreclosure process is holding pretty steady with only a 71 unit increase over last month. This pipeline of homes that might find themselves on the market sometime soon is ever so slowly trending up but it remains extremely low by historical standards.

The number of homes in foreclosure in Chicago declined with the moratorium during the pandemic and doesn’t seem to be rising since.

Gary Lucido is the President of Lucid Realty, the Chicago area’s full service real estate brokerage that offers home buyer rebates and discount commissions. If you want to keep up to date on the Chicago real estate market or get an insider’s view of the seamy underbelly of the real estate industry you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.

Tokyo’s Urban to Suburban Migration

/in , , /by

Image from Pixabay

By Priti Donnelly

For years, Japan has tried to prevent its population from being overly concentrated in Tokyo, a city sprawling with nightlife, work life, and a tourist hotspot. Economic and social shifts of the pandemic developed into the start of a natural progression of migration out of the capital. Although the greater Tokyo area grew in 2021 by 26,323 for a gain of 0.07%, that figure was down roughly 110,000 from a year ago. In 2020 net migration by locals into Tokyo shrank by 27,000, or roughly one-third from previous years as people embraced telework and crowd distancing.

Initially, at the start of the pandemic, to avoid commuting, Japan adopted the work-from-home concept already popular in many parts of the world. As employers learned to adapt to matters of productivity and controlling hours of work, employees discovered the concept value in work and family balance plus the benefits of saving time from hours of commuting. Then, ongoing lockdowns turned flexibility into a lifestyle leading to the realization of the potential to settle outside urban centres. And, so began the urban to suburban or even rural movement.

Image from Pixabay

One Tokyoite, Kanamori sought to leave his luxurious life and job of the Roppongi Hills complex in Tokyo’s Minato ward for solace in the city of Yamagata. A place familiar to him as the place of business of his parents’ long established sake store. Initially he moved to Tokyo to attend university, then joined an IT company in 2017 selling computer tablets with an application that helped retail operators keep track of sales. But, after three years, the business took a couple of hits. First, the consumption tax was raised to 10% in October 2019. Then profits were hit harder after Covid. This, in addition to the long working hours and overtime deeply rooted in Japan’s industrial ethics. It is not unusual for employees to work more than 80 hours of overtime a month, according to a 2016 government survey and those extra hours are often unpaid. Kanamori’s lifestyle became all about work and he didn’t like who he was turning into.

Recognizing that those long work hours translated less into productivity and more into exhaustion, he left his job for a change in lifestyle and moved to Yamagata. There he became a member of the city’s community development team that aims to make better use of vacant homes, working four days a week, no overtime. On his days off, yes, he has days off, he goes camping with his friends. Peaceful living.

Image from Pixabay

Kanamori is not alone. The mountain resort town of Karuizawa in Nagano prefecture added 595 people via migration, the largest increase of any town. For the first time since July 2013, the number of people moving out of Tokyo outnumbered the number of people moving in by 1,069. In June 2020, inbound migration topped outbound migration once again, but from July 2020 through February 2021, more people moved out of Tokyo than people moved in and the trend has continued, with the exception of the months of March and April when more people generally move into Tokyo because of starting new jobs or enrolling at university, at the beginning or end of the fiscal year.  

Should I stay or should I go? Although Tokyo is attractive for its job opportunities, thriving business hub, and growth-focused initiatives for start-ups, people are discouraged by the high cost of living. The nationwide average monthly rent, not including utilities, for a one-room apartment (20 to 40 sqm) is between 50,000 and 70,000 yen. Rent for similarly sized apartments in central Tokyo and popular neighbourhoods nearby usually start from around 100,000 yen.

Image from Pixabay

But, the high cost of living is just one deterrent from permanent settlement. Where people once enjoyed the ease of fast food to satisfy the palate and the belly, they are now finding solace in places surrounded by greenery with access to fresh seafood, fruits and vegetables. For the sole purpose of slowing down to take care of oneself, the concept of growing and preparing foods for its freshness, nutritional value including low sodium and carbohydrates by comparison to fast-food, has been revived.

The attraction to the suburbs or rural areas is real, but it is hard to tell if it is more of a sabbatical, or a trend as we strive to stay safe. Either way, Tokyo is not entirely out of the picture. Even Kanamori still thinks he might return to Tokyo in the future for business opportunities. The city is after all a thriving international hub and continuously evolving for entrepreneurs to launch and be successful. As the old adage goes, “You can take the person out of Tokyo but you can’t take Tokyo out of the person.” But, this time on healthier terms.

Sources: The Japan Times, Nikkei Asia, Japan Guide

Priti Donnelly

Priti Donnelly is the sales and marketing manager at Nippon Tradings International, a Japanese proxy helping foreigners access the second largest real estate economy in the world. As a Canadian with a background in mortgages and marketing, Priti keeps foreigners informed of the latest trends, business news and featured properties in the Japanese real estate market. Her articles have been featured in REtalk Asia, REthink Tokyo, REI Wealth, and Asian Property Review.

BEWARE: Social Media Fakes Make Poor Tenants

/in , /by

Image from Pixabay

By Stewart Levine

Are unprecedented legal changes and scam tenants making it time to rethink rentals as investments?

Even for long-time real estate investors with decades of experience, things have changed.

Social media platforms like TikTok and Instagram seem to be spawning an increasing number of phonies and scams from cryptocurrencies to NFTs, tech startups and real estate gurus.

Image from Pixabay

For the average investor, becoming entangled with just one of these scammers can bankrupt them and rob them of their life’s work.

So, how are they operating? Who do investors and property owners, in general, need to watch out for? How have recent policy changes negatively impacted things?

NOT “As Seen On TikTok”: Scam Tenants Will Cost You Huge

One of the new catchy fads has been things being advertised “As Seen On TikTok.” It has replaced the old “As Seen On TV” infomercial controversies. For better or worse, the highly controversial TikTok platform surpassed Google as the most popular website in 2021.

One retired doctor and long-time investor recently found out just how dangerous it can be.

This is a medical professional who has been investing in real estate for decades. It enabled him to retire at just 51 years old after running a successful dental practice.

He bucked common advice and the tradition of investing in public stocks with stockbrokers that don’t have their customers’ best interests in mind.

Image from Pixabay

During a recent interview he shared some of his early lessons in real estate. He did well, and it enabled him to take control of his own future, along with gaining many tax breaks. Yet, he ran into early issues when actively investing in rentals. He discovered the headaches of vetting deals, the costs of management, and both cash and Section 8 tenants that didn’t perform.

Eventually, he graduated to the point where he had built up enough capital that he wanted to spend more time actually relaxing and enjoying life, and began investing through private funds, private money lending, and other passive real estate strategies.

Still, when it recently came time to move from the Northeast to Florida, he ran into a combination of new and old problems.

Like many others he decided to put his home in the Northeast up for sale right during COVID.

It was a great home in Colts Neck, NJ. Boasting 7,000 square feet, and which this doctor had enjoyed living in for many years himself. However, it was September 2020. Lockdowns meant that real estate agents were hardly working, and most buyers couldn’t get to viewings or were too scared.

An agent representing the tenants brought them a prospective renter as an alternative. The agent sold their clients hard. They included a ‘wealthy DJ’. An online ‘influencer’ and entertainer, who supposedly has 3M followers on TikTok, where he recently bragged about being put in jail by his ex-girlfriend, and 275k on Instagram where he likes to show off fake money, and even promote NFTs.

Image from Pixabay

He was presented under his real name as Anwar Gavilanes, aka DJ Diddy. Along with Adam Zakaria under his business name Pizza Crave, and Frank Baldassare. They were supposedly rich and successful and had a nice car.

After signing the lease, this landlord told us that he never received any rent, after the first payment. On which was supposed to be a two-year lease for $7,300 per month.

Normally, that wouldn’t be a huge issue. Tenants don’t pay, you get an attorney and have them kicked out.

Unfortunately, the government went to the extreme of issuing an eviction moratorium, and shutting down the courts. His attorney simply couldn’t process the paperwork to get them removed. While the president went to extreme lengths to protect rogue occupants like this, landlords paid the price. He says he felt they ruined his life’s work on this property and jeopardized his finances. Those moratoriums were eventually overturned by judges who found them unconstitutional, but many may be asking where the compensation is for landlords.

These tenants continued to occupy the property, without paying any rent for a whole year!

It wasn’t until late 2021, when he was finally granted a Zoom court meeting to get the tenants evicted.

When the landlord was finally able to access the property again, it was a disaster.

Image from Pexels

There was a soccer goal set up in the living room. No basic maintenance had been taken care of on the property in a year. The garage door was busted. Plus, broken fencing, damaged landscaping, and scratched and broken wood flooring which had to be completely replaced. The destruction ended up costing Levine $80k in repairs to restore the property to prepare it for sale. They found fake $100 bills in the property and all types of other craziness leftover from parties.

They even found out the occupants had been renting out the house to others on Airbnb, with no permission to sublease the property in their contract, taking their money, and still not paying the rent. They had even been advertising parties on the home on Eventbrite, at which they had been found serving alcohol to the underaged, and possibly drugs, which resulted in a summons from the police. It is unknown whether they have disclosed the income they illegally made from this operation to the IRS or not.

To make it worse, the utility companies started coming after him as the property owner. The occupants had never paid any utilities, and the utility companies had never bothered to cut them off or bill them, because of ‘COVID’.

WANTED: Social Media Con Artists & Real Estate Fraudsters

Thankfully this property owner’s attorneys have been able to track down two of the perpetrators, and have served them legal papers. He estimates they owe $125k in back rent and legal fees. Not including the actual damages, and utilities. He says he doubts the courts will accept those phony $100 bills as payment.

Image from Pixabay

Anwar, aka DJ Diddy, who turned out to just be a fraud, is still at large, and “hiding out like a rat.” He is still posting on social media, promoting a virtual party online each week on Sundays. The attorneys are very interested in any information that can be provided to track him down, and ensure he is served and brought to justice.

They are also looking for the renters’ real estate agent involved for their role in misrepresenting and failing to vet the tenant. They have been served, but have since been hiding out, without a response.

The Big Takeaway: Things Are Different Now

Most of all this landlord agreed to share his story with us as a warning to all other real estate investors, landlords and homeowners out there.

Be on the lookout for these fraudsters. Don’t become their next victim.

Image from Pixabay

Be sure you are on the alert for other social media phonies as well. In addition to questioning some of those promoting scams like these, and encouraging others to Airbnb out homes they don’t own, or to try and pull scams to take over people’s properties.

He says he is not excited about renting out his personal homes again.

There is just too much risk. Too much fraud. With the new dictatorship we appear to be living in, there is no more security, and very little private property rights and protections.

If you are going to rent out a property, we strongly suggest using a well-vetted, third-party property management company, and having a great real estate attorney on retainer.

However, he is not giving up on real estate as an investment at all. Though he is certainly doing it differently, and more carefully vetting those he works with.

If you spot these fraudsters, let someone know, and share your stories, and alert others in the business to scammers, so they aren’t the next victims.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Join Us for a Wealth Through Real Estate Event

/in , /by

Ladies, Please Join Us at this Unique Investor Event. Gentlemen, Please Forward this to a Special Lady in Your Life.

Hello Investors,

You know I always love to share amazing opportunities when I find them.

My friend Monick is hosting a powerful all-women 3-day event and she’s bringing together an INCREDIBLE group of superstar women to teach you how to build wealth through real estate — wherever you are starting from.

What You Can Expect To Learn:

  • Learn How You Can Acquire Your First Real Estate Property in under six months even as a busy professional woman.
  • Learn The Formula on How to Develop Wealth through Real Estate even if you are Starting from Scratch.
  • Discover the Unique Strategies Monick used to acquire over 1,000 doors in less than 1 year.
  • Discover the Most Lucrative Investments that require the least amount of your time and management.
  • Learn how to Avoid the Mistakes that Plague many New Investors by investing in passive and turn-key opportunities.
  • Learn from other women who have done it and why now is the perfect time to begin investing.
  • Get the mindset and tools you need to invest successfully and win every time.
  • … And so many more useful tools for growing your wealth and improving your life that are caught not taught.

Women will be joining us from all over the country and beyond! The caliber of goddesses to meet and network with is going to be incredible!

So WHEN and WHERE is the event going to be held?

We are coming together on March 4-6 at the LAX Westin in Los Angeles, CA. (Once you register you will get an email with all of the details)

What is the Investment to get in?

Tickets for this 3-day event are just $997, but use the code REALTY411 to drop the price 50%!

Do you want to go even deeper? Is this opportunity for growth and connection that you need to take the next step towards your investment goals???

And if you’d like a VIP experience, you can join for just an extra $297. The VIP ticket will give you:

  • Special front of the room seating
  • Deluxe swag bag
  • Dinner and Q&A with the speakers and other VIP ticket holders

The VIP tickets are very limited. I suggest registering now before they’re sold out!

To visit the site and register click here: https://www.realestateinvestorgoddesses.com/march2022

Make sure to grab your spot before it sells out. It’s going to be an epic event.

Have questions?

Email [email protected] or call 888-352-4412.

Strength in Numbers: Victor Cuevas Gives us Advice About Crowdfunding as a Tool for Investments

/in /by

By Victoria Kennedy

An important caveat to real estate investment, quite simply, it’s expensive. It requires more capital upfront to get going, and for a lot of potential investors, it just isn’t feasible. But Victor Cuevas, founder of Griffin Crowd and Capital, just might have the answer, and it’s a surprising, but innovative one. He suggests using crowdfunding!

When we typically think of investments, the stock market comes to mind. However, real estate is emerging as a competitive alternative to stocks, one that is safer and can often yield higher returns. But like so much else in business, real estate investments lead to portfolio diversity.

“Borrowers using a crowdfunding portal have an advantage because they can get funds from a wider pool of investors,” said Cuevas. “While they typically have to accept a higher interest rate in order to get additional funds, the access to those additional investors is typically worth it.”

Whatever side of the fence you are currently on, as either a borrower or investor, see below for a few tips from Cuevas to get you started.

Learn about Splitting the Bill

Image from Pixabay

As it turns out, investing in real estate may not be as costly as it seems. With the rising popularity of crowdfunding—online platforms for sourcing capital for a given project—a creative new approach has emerged for breaking into the prohibitively expensive, but wildly lucrative field of real estate investment. With a little help from crowdfunding, you could soon be on your way to making big bucks, while at the same time, shaking things up along the way. Cuevas recommends crowdfunding as a way to expand your possibilities and adapt to the rising cost of homes. In the past year alone, Griffin Crowd and Capital has crowdfunded over 100 residential apartment complexes totaling tens of millions in profit as a result.

Find Strength in Numbers

David and Goliath was a close one, but ultimately, the “little guy” triumphed by sheer ingenuity. Now imagine if it had been 10 Davids, all equally resourceful, taking on that single Goliath—it would almost be unfair. And that’s the idea here.

Cuevas recommends using crowdfunding as a way of teaming up and pooling resources to collectively achieve what is too often reserved for the already-wealthy. It is a great way to challenge the longstanding dynamic of the “fat cat” being the one at the top.

A Man’s Game? Don’t be So Sure

Any number of factors can explain the demographic disparity of real estate investment, and investment in general. From systemic and interpersonal sexism and racism, to toxic notions surrounding women and investment in general, there’s no question: it’s an uphill battle for women and minority investors.

But one thing is for sure, regardless of this inadequate representation, there’s zero truth to any notion that non-male, individuals are in any way, shape, or form “less fit” for the field—the truth is, there’s just more to work against. While this may seem so obvious, nevertheless, the myths floating around can still be damaging. The key is to try not to be dissuaded by all these ‘tall tales’—you know what you’re capable of. As Cuevas said, “it’s a fast-growing market” and now is the best time to get involved!

Learn Where to Invest Sensibly

Image from Pixabay

Real estate is a huge field encapsulating all sorts of different sub-categories within it. If you’re seeking to maximize your returns all while keeping your overhead to a minimum, Cuevas recommends looking at multi-family residentials. These have emerged as popular living arrangements, and they’re generally cheaper and easier to invest in than larger properties. Between collecting rent and easier mortgage terms, there are numerous advantages that should put the multi-family residential towards the very top of your list when it comes to prospective real estate investments.

Pick a Winner: Choose the Right Bank

Image from Pixabay

When investing in real estate, it’s essential to choose a bank that’s a good fit for your investments. Cuevas suggests paying close attention to the experience and track record of the institutions you consider. It’s important to be certain that the bank you go with has enough experience in the area you’re investing in to best assist your specific needs. For example, at Griffin Crowd and Capital, Cuevas puts his 30-plus years of specific experience in the field at the disposal of his clients—all the knowledge, know-how, and vital industry connections go into helping clients ensure the maximum possible return on their investments.

It can be a daunting prospect, but with the right approach, investing could become your next successful venture. With crowdfunding, it doesn’t have to cost an arm and a leg, and by focusing on real estate, particularly multi-family residentials, you can start generating wealth easily and with little risk. While there may indeed be some obstacles standing in your way, with the help of creative solutions, careful planning, and a little teamwork, it might not be such a distant dream.

About Victor Cuevas

Victor Cuevas is an industry professional with over 30 years of mortgage finance experience, including extensive knowledge in both residential and commercial properties. He is a successful serial entrepreneur with a multitude of accomplished companies and ventures. Among them, Victor built a mortgage empire, spanning 36 offices in several western and central states. He currently serves as the founder of Griffin Crowd & Capital, the next chapter in an already illustrious career. For more information, visit griffincrowdcapital.com

How Much a Home Equity Loan Can be Useful to Pay Off Credit Card Debts?

/in , /by

Image from Pixabay

By Catherine Burke

You are not alone if you have recently faced financial challenges, such as a loss of employment, significant medical bills, or a tragic incident. The majority of the world’s population is affected by the COVID scenario. Over 57% of American adults, for example, are unable to pay medical costs, which are the leading cause of personal bankruptcy.

Some people may attribute their financial difficulties to illogical spending or bad saving practices. If you’re one of them, and you have a significant outstanding balance on one or even more credit cards, you might be finding it difficult to get out of debt. If you can only afford to make minimum monthly payments, paying off your credit cards might take several years, if not decades.

If you own a home, you might apply for a home equity loan and use the funds to pay off your credit card debt. You might be able to handle high-interest unsecured debts like credit card debt or payday loans using a home equity loan. Let’s look at the best ways to do that through a home equity loan.

But before going further, let’s know a bit more about Home Equity loans.

What is a home equity loan?

A home equity loan helps you borrow against the value of your home that has grown over time. If your home is currently worth $500000, but you owe $200,000 on your home loan, you have $300,000 in equity.

A financial institution, credit union, or other lenders might be willing to give you a home equity loan equivalent to a percentage of your equity, depending on this information. Other criteria, such as your credit score, will influence how much you may borrow and if you can get a loan at all.

Requirements to borrow from home equity

Image from Pixabay

Analyze your requirements, how they would fit into your finances and style of living before taking out a home equity loan. The criteria differ depending on the lender, but in general, you’ll need:

  • A specific amount of equity in the house (15 percent to 20 percent)
  • Creditworthiness
  • Low debt-to-income ratio (DTI)
  • Having enough income
  • A decent payment history

The balance between the amount you owe on your home loan and the home’s market value is known as equity. Lenders use this number to compute the loan-to-value ratio, or LTV, which determines whether you meet a home equity loan criteria.

How can you qualify for a home equity loan?

Image from Pixabay

You would be able to qualify for a home equity loan too easily before the COVID-19 issue. It was simple to obtain one if you had a consistent salary, a good credit score, and a home with sufficient equity. It’s now more difficult but not unachievable.

Building on sustained gains since the conclusion of the Great Recession a decade earlier, U.S. homeowners increased their equity share by $590 billion to a record $19.7 trillion during the first qtr of 2020, up 6.5 percent from a year ago.

While lenders’ criteria and risk appetite vary, their authorization processes are based on fundamentally the same factors.

Borrowers must typically maintain 20% ownership interests in their homes after taking out a loan, with few exceptions. Only $60,000 will be accessible for borrowing in the given scenario (if the house value is $200,000, with $100,000 equity).

This minimizes the risks for lending institutions. A borrower who has engaged at least $40,000 in a property is unlikely to abandon it. Homeowners would also be prohibited from renting their property to someone who would damage the property. This $40,000 also protects lenders from losing money if the borrower surrenders the assets during a market slump.

When evaluating applicants with substantial collateral, Lenders have more flexibility, but they still rely significantly on credit ratings when determining the loan’s interest rate. A credit score of less than 600 is considered bad, and obtaining a home equity loan will be challenging.

Are you worried about your credit score? Consider seeking credit counseling from a non-profit credit counseling organization for advice on how to improve your score before applying for the home equity loan.

Information you’ll need to apply for a home equity loan

Image from Pixabay

Collect all of your financial records and essential papers ahead of time to make the home equity loan application as simple as possible.

The following is the list of information that you may need to submit with your home equity loan application properly:

  • The number given by the Social Security Administration
  • The alimony and child support documents
  • Proof of your previous work experience (at least two years), as well as the contact details for your last employer
  • Proof of your income for the last two years
  • Proof of ownership and house insurance declarations
  • A copy of your most recent pay stub
  • Statement of the current mortgage
  • W-2 statements from the previous two years
  • An appraisal or valuation of your home
  • Existing debts and liens on your home

You’ll also need to produce various signed paperwork that your lender would want. It’s time to approach a lender about filling out a loan application once you’ve gathered all of the necessary information. You’ll be on your way to closing once your banker has submitted your home equity loan application.

This period, however, varies from one homeowner to the next. The money will be yours as soon as all documents are finalized and closed.

How to pay off credit card debt with a home equity loan

To use a home equity loan to pay off credit card debt, you must be first eligible for a home equity loan. A home equity loan, often known as a second mortgage, will allow you to take a lump-sum payment on a portion of your $100,000. You can spend the money as you wish and repay it over up to 30 years.

The long payback period and fixed, lower interest rate can help you get out of debt quickly. Furthermore, if you stop taking new credit card debt, your home equity loan can assist you in making steady progress toward debt elimination.

If you get a home equity loan to pay off your debts, remove your credit cards from your wallet and put them away. This way you won’t be tempted to use them for impulse purchases.

Image from Pixabay

Many experts recommend cutting them up at this point so that they can’t be used. However, you should have at least one in case of an emergency, such as a significant medical expense or home repair or a backup while traveling. However, keep it hidden most of the time to avoid temptation.

The benefits of paying off debt with a home equity loan

The main benefit of getting a home equity loan and repaying high-interest debts such as credit card debt or payday loan is that you’ll typically get a lower interest rate than you would on those debts.

Unsecured personal loans have rates that range from little under 6% to 36%, based on factors like your credit score, yearly income, and debt balances. Consider an interest rate of roughly 20-25 percent if you have an issue in any of these areas. So, getting a personal loan to pay off debts like credit cards or payday loans will be difficult.

With the Federal Reserve’s 10-year-bond yield hovering around 0.6%, Jan 2022 home equity loans are available starting as low as 4%. The average interest rate on a home equity loan is just 5.96%, whereas the typical credit card is 19%, and the average interest rate on a payday loan is 391%.

When you utilize a home equity loan to pay off several credit cards, you’ll be able to consolidate your multiple credit cards through only one monthly payment on the home equity loan. On the other hand, you may also use that money to settle your credit card bills and pay them off with significant savings. If you similarly deal with your high-interest payday loans, you may get rid of them by choosing the payday loan consolidation method or payday loan settlement option. You can use money taken from your home equity loan in both cases.

But you should remember one important thing. The interest on a home equity loan a borrower paid to the lender was once tax-deductible. But this significant benefit of home equity loans has been stopped until 2026. Interest on home equity loans is now deductible only if a borrower uses the loan to “purchase, build, or substantially renovate” the home, according to the Tax Cuts and Jobs Act of 2017.

Author Bio: Catherine Burke is a financial writer for online payday loan consolidation. She provides information on successful cash loans and payday loan consolidation to help people get over a difficult patch. She lives in Kansas and has earned a frame in the matter of payday loans.

VIDEO | Overcome Low Inventory and List or Buy More Properties | Expert Training Series

/in , , , /by

Join national trainers, Christoph Malzl and Jonathan Metoyer, as they show agents and investors where to focus their time and energy in the current market to find more properties. They will provide actionable steps for consistent lead generation, discuss strategies, tools, habits, and systems that work right now, and show you how to create a constant stream of fresh buyer leads using technology and automation. You’ll get links to download free scripts and tools that are being used by top agents and investors to consistently get 3 to 5 more properties a month to list or purchase!