Dc Fawcett Real Estate Tips – 4 ways to sell an inherited property

 

Introduction

4 ways to sell an inherited property

Dc Fawcett real estate reviews about the different ways to sell an inherited property, rental benefits and drawbacks of inherited property.

The heirs of the deceased parents get the entire power to own the inherited property and it is his/her wish to either sell or rent or occupy by themselves.

Dc-Fawcett-Real-Estate-Tips---4-ways-to-sell-an-inherited-property

Owning a rental property is the best way to earn passive income. For investors with different mindset, like absentee landlord can sell off the inherited property and make great deals of money at a time. In case you are renting, you get a steady flow of cash every month. At the same time, you need to be careful about the debts; you cannot sell or rent the property if there are debts to be paid to the mortgage lender. Furnish the house and make all the paper work ready if you are about to sell the house. You need to meet a local attorney and ask how to sell and when to sell and then proceed.

There are four options if you are selling your inheritance property:

  1.  Auction
  2.  Sell on your own
  3.  Sell to an investor
  4.  Sell with an agent

How to sell off the property through auction?

This is the quickest way to sell off an inherited property,  sellers who want to do quick home sale can prefer this option as you need not spend on repairs and property is sold “as-is”. It is the sellers’ choice to leave or take the belongings and buyers can either use or sell off once they occupy the home.

On the other hand, you have some issues like you need to find an auctioneer, the price can be more or less than you expected.

Dc Fawcett Real Estate Reviews – :

Selling inherited properties by FSBO

You need not find an agent or pay any commission and all the profit is yours.  If you need to save, you need to work. The seller should shoulder the responsibilities of an agent in this method to do a home sale. The duties, pros and cons are discussed in another article; you can check it out in Dc Fawcett’s virtual real estate investing club.

Selling the property to an investor

You can expect a fair market value price for your property and you need to be ready for home inspection. You can avoid some unnecessary expenses when you deal with an investor as he know which are the expenses to be cut short and avoided. The investor can protect you from  scammers  as he knows about the  real estate scams  that are happening currently.

Selling the property to a real estate agent

You are under a proper guidance as he knows the entire home buying and selling process. The process will be streamlined and you will have better advertising service and get to know many professionals through him. You can also get potential contacts for future which can be helpful in selling the properties. At the same time, you need to make repairs and pay commission for his service.

Investors complaints about owning an inherited property, in most of the cases there would be mortgage, tax and other insurance to be paid which exceeds the life insurance of the deceased person. Eventually you tend to spend money from your pocket or in other words it starts consuming your savings. In such situations, Dc Fawcett advises his investors to refuse the inheritance power.

Dc Fawcett Real Estate – Home Loan Schemes For Investors With Low Credit

 

Introduction

What are the home loan schemes for investors with low credit?

The real estate professional, DC Fawcett Real Estate mentions different solutions for the investors with low credit on how to apply for a home loan and get approval.

Many investors is assuming that they cannot qualify for a home loan if their credit score is low , but the myth is broken and there are various home loans schemes offering money with nominal rate of interest.

Dc-Fawcett-Home-Loan-Schemes-For-Investors-With-Low-Credit

DC Fawcett Real Estate Reviews on Home Loans

FHA home loans :

The investors usually try out FHA home loans which are offered by lenders who are supported by FHA and these loans are not directly provided by Federal housing administration. These loans are insured and investors can avail easily, even new investors can try out this scheme as it is the safest way to apply for home loans. The risk factor is less and minimum credit score is 580 and may vary depending on the lender and he has th e rights to set the minimum credit score.

VA loans :

The second type of home loans is offered by governments which are called the VA loans. The USDA housing programs and many schemes exclusively for investors with low credit are offered with reasonable rate of interest. VA home loans are offered by private lenders for ex-military officer, veterans and for community of retired investors. The biggest advantage is that investors can buy a home without making the down payment as long as there is appreciation in the property value as well as PMI (private mortgage insurance) premium is excluded.

Investors can browse about housing loans in detail by reading the blogs written in DC Fawcett virtual real estate investing club.

The home equity is calculated by property value and outstanding debts. These loans are easy to avail than a conventional home loan having strict guidelines. Lenders usually offer equity loan if they are offering a conventional home loan. Just like VA loans, equity loan’s minimum credit score can be set by the lender according to his wish.

The 203(K) loan and home improvement loans can be availed to do home renovation. They require 5 percent down payment is required when you avail home style loans and the minimum credit score is 680. The other features are similar to FHA loans. These loans are not suitable for home upgrade, but structural modifications are allowed. The 203(k) loans are of two types –standard and streamlined. The standard version is used for rehabilitation loans. Minimum loan amount of 5000 dollars can be availed.  Purchase loan can be applied if house needs major repair and structural changes. Streamlined loans are for smaller fixes like cosmetic light rehab. Maximum of 35,000 dollars can be availed for white washing etc.

Program Supports By Offering Loans

Some investors may like to invest on the outskirts of the city, the USDA  program supports by offering loans for low income community and first-time homebuyers, this also includes investors with bad credit. There is an assurance that 90 percent of their loans are sanctioned and no down payment is required.

The 502 direct loans are exclusively for rural home buyers, it has no down payment and these loans are offered only if the buyer needs a primary residence.

Mobile and manufactured home loans can also be purchased through loans, the conventional home loans can be availed, apart from that mobile and manufactured home loans are also offered by several lenders. The qualifications are same as FHA loans.

Make proper research before you borrow money, there are several incidents happening which are caused by scammers who pretend as lenders but are actually fraudsters.

Dc Fawcett Real Estate – Fundamentals of a credit report

 

Introduction

Fundamentals of a credit report

Credit denotes the amount borrowed by the investor and it is the deciding factor whether he/she can borrow or not as the lender checks for the credit score. DC Fawcett Real Estate presents a reviews on the basic elements of a credit report in this article.

Dc-Fawcett-Fundamentals of a credit report

Credit report contains

  • Loans that you have applied, borrowed past 7 years (there are few exceptions on the term )

  • Existing loans and amount borrowed

  • Monthly mortgage payment details
  • Payment report: mentions the date of the payment, this will show whether you have paid on time or not.

  • In case of bankrupt or foreclosure , those details are mentioned

  • Default loans

There are different types of default

  • Small: When a loan worth 500 dollars or less is repaid 6 months ago.

  • Medium: When a loan worth 1000 dollars or less is borrowed from financial institution or organization and repaid.

  • Large: When a loan worth 3000 dollars or less is borrowed and repaid.

  • High: When the loan default exceeds 10,000 dollars or more, the lender segments the default into several small defaults.

  • Unpaid defaults: These loans are yet to be repaid.

Credit bureaus collect the information of every investor which appears on the credit report. They are also called powerhouse of information. The source of information is through public records and databases. The information is distributed to the lenders when the investor approaches him for seeking a loan or whenever credit report is asked.  E.g. seller

Credit score refers to a number that is generated by a computer program, they generally check for particular patterns or red flags in your credit history. So after scrutinizing, your credit score is calculated and displayed.

The lender makes use of the credit score while you apply for a loan. Based on the credit score, the lender assigns the rate of interest.

Credit scores are used widely for borrowing money, applying insurance, renting, at times during the employment. It is checked so as to know how responsible and punctual you are in your payments.

When you need utility services, the credit score is checked, if the score is low; large deposit is required.

Dc Fawcett Real Estate Reviews – How to get financing?

Credit unions

In case your credit score is pretty bad, consider credit union as your first choice as they are willing to provide loans. Individual attention is given each investor.

Peer-to-peer lending services

They also provide loans for investors with low credit score.

Online lenders

Similarly, you can make use of online lenders who are not attached to any bank. Associating with such lenders increases the chance of getting loan.

Using collateral

It is yet another option where you need to pledge something of high value and borrow money. Mostly people pledge their land in case of collateral.

There are scammers who target these desperate borrowers, they pretend themselves as non-conforming lenders and get all the information from these investors. Later, the investor realizes he has been cheated.

Conclusion

To know more about credit scores and how to prevent from fraudsters, check out the articles in DC Fawcett virtual real estate investing club.

Dc Fawcett Reviews- Reasons for Real Estate Market Fluctuations

 

Introduction

Reasons for Real estate market fluctuations

Though real estate market fluctuates often, the need for multi-family homes continues to attract investors. The prices of these homes have really gone up and there is a huge demand among the buyers. Ultra-luxury condominiums are creating new dimensions in the spheres of the real estate market.

2016 seemed to be really unfavorable for investors as there were frequent fluctuations both economically and politically. But on the other hand, there was a high decline in rate of unemployment and there was rise in home price as well as in home sales.

Dc-Fawcett-Real-Estate-Tips---4-ways-to-sell-an-inherited-property

2017 spring and summer sales went on a high note, but the professionals have predicted that the market may slow down in 2018 and 2019.

Virtual real estate investing club is one of the ways to learn about the process of wholesaling or even you can start your career by virtual wholesaling to stay scam-free. 

Causes for fluctuations in the real estate market

  • The rise and fall of the economy

The economy of the nation determines the stability of the real estate market. If the economy is good, the demand for retail, commercial, residential space increases. This in turn, leads to expansion of office space and increase in rental price. On the other hand, a poor economy results in fluctuating market. It is not wise to invest in a market which concentrates on a single industry alone, as it may see a downward trend very easily.

  • Interest rate

The increase and decrease in interest rate also affects the market and causes fluctuations. The recent rate hikes have made the property values to fall. The borrowing rate increases and demand for properties decreases. The fluctuations will affect mortgage rate, so people availing home loan decreases. From sellers’ point of view, the fluctuations are bad as mortgage rate and property value decreases, but buyers make use of this opportunity and purchase real estate properties.

  • Government policies

The government policies will help the market to gain its stability; it is used to control both economy and rate of interest.

  • Demographics

Age, income and population will have a great influence in the market fluctuations. For e.g. if people start sharing their household instead of living in an individual apartment, it is a sign that market has started fluctuating and people cannot afford single-family homes.  E-commerce, one of the reasons while retail market rates have drastically reduced. Consumers purchase most of the goods online which led to the owners of the retail market face a financial loss off late.

To overcome these fluctuations, investors should master the art of real estate wholesaling says DC Fawcett.

Conclusion

DC Fawcett advises his investors to make long term investments as you can fetch high returns and find specific area to invest.  Real estate inventory also plays a pivotal role, if the inventories are more, then it is said to be sellers market else property value decrease causing high demand and low supply.

Dc Fawcett Real Estate – Methods of calculating NOI ,Profit Earning,Tips On Saving Money

 

Introduction:

Net operating income is used for the purpose of analyzing the income generated from real estate investments.Dc-Fawcett-Methods-of-calculating-NOI-Net-operating-income-768x543

NOI can be found on cash flow statements and property income. If the end result is negative, then it is called net operating income loss. It can be increased by hiking the rental payment or by decreasing operating expenses. Operating expenses are insurance, property management fees, utilities, property taxes and repairs.

Dc Facwett Real Estate formula

NOI is non-taxable income and it helps in calculating cap rate,  ratios like debt coverage ratio (DCR) which t

ls whether the property income includes debt and operating expenses or not. It measures the ability of income generation of a property. Lease analysis is the initial step to analyze how income is generated; it helps out the investors as it indicates both who has paid as well as the source.

Dc Facwett Real Estate formula 1

DC Fawcett Reviews further explains how to calculate NOI.

NOI formula

Potential rental income- vacancy and credit loss = effective rental income

Effective rental income +other income =gross operating income

Gross operating income – operating expenses = net operating income

Net operating income is positive when operating income exceeds gross operating income.

Dc Facwett Real Estate formula 14

Lets breakdown the formula of real estate

  • Potential rental income is also known as PRI is cumulative of rental payments if occupied entirely. If not, market based rents is used.
  • Vacancy and credit loss means income lost due to renters vacating the property or when they don’t pay their rent every month.
  • Effective rental income is the amount that the seller /owner gets in hand
  • Other income refers to laundry, parking etc.
  • Gross operating income is sum of all income generated from a property.
  • Operating expenses include personal and property taxes, insurance, management fee etc.

Dc Facwett Real Estate formula 2

Net operating income doesn’t include the following expenses

  • Debt: financing powers remains with owner /investor.
  • Depreciation: accounting entry alone so excluded
  • Home improvements: These changes are done according to tenant’s wish. So charges are not taken while calculating NOI.
  • Commission is paid to brokers and agents
  • Amount is allocated for repair and renovation work. Those funds are excluded.
  • Capital expenses are also part of repair work; it may happen in irregular interval.Dc Facwett Real Estate formula 15

NOI is used to

  • Measure the profit of an investment
  • Calculate underlying cash flows

Fake loan scam is a typical scam where scammers pretend to call from a renowned bank and say they offer a loan, some may get attracted and say yes meaning they are willing to avail the loan. You will know it’s a scam, when the amount deposited is with a low rate of interest.

Dc Facwett Real Estate formula 3

You can take help of the real estate professionals, tax advisors to calculate NOI for your property.

DC Fawcett Real Estate Tips – Methods Of Profit Earning

Real estate market helps the investors to earn profit in several ways. DC Fawcett, the founder of virtual real estate investing club has stated his reviews on how to earn profit. Let’s have a look at it.

Dc-Fawcett-Real-Estate-Tips-Methods-Of-Profit-Earning

  • Inflation in value

The property is considered to be an asset, it can appreciate in its value only if it is sold or refinanced. Refinancing can be calculated using mortgage.

  • Raw land

Purchasing a raw land and constructing buildings on it. If the land possesses mineral content, it adds value to the land.

Dc Facwett Real Estate formula 4

  • Location and furnishing

The location is one of the striking factors; the property value depends on the area in which you purchase the property. So having a land in the heart of the city with all basic facilities in the surrounding will attract the buyers. The value can be further increased if your property is renovated and furnished at proper intervals.
Dc Facwett Real Estate formula 5

  • Commercial investment and lease

Investing on commercial property fetches more profit than any other type of investment. Many startups and organizations are in need of space, giving out for lease will gain you profit steadily.

  • Types of income

Renting is the easiest way to gain profit but you can be a way ahead by splitting the apartment into different rooms which can fetch you more rent.

  • REIT and MIC

REIT and MIC are firms which owns, manage and represent real estate market. REIT provide source of income to commercial property owners whereas MIC acts as the source of funding for mortgage.

Dc Facwett Real Estate formula 6

  • Under market value

Investing in properties having under market value can earn you good gains in addition to that if you possess negotiation skills.

  • House flipping

House flipping may either hit or flop , refer DC Fawcett blog to know more about house flipping strategies on virtual wholesaling.

  • Fore closured areas

Lenders may sell the non-performing notes (fore closured properties) to investors at discount rate, but it involves lot of risk. You can proceed if you are confident in paying the debt, title fee etc and make the property free from fore closure which the borrower failed to.

  • Wholesaling

Find an undervalued home under contract; assign a buyer who has to find another buyer who is willing to pay more than the (undervalued) price which is almost similar to the job of a real estate agent.

  • Real estate brokerage

This is for real estate agents who want to level up in his career. You can become a broker and      appoint few agents under you in which half of the commission is all yours. You can also run property Management Company, buying a vacation property, becoming a home inspector, investing in short sales.

DC Fawcett Real Estate – Tips On Saving Money For A House

Purchasing a property is not an easy task; it requires lot of time and huge amount of savings. DC Fawcett Real Estate reviews on how to save money in order to purchase a property. They are as follows.

Dc-Fawcett-Tips-On-Saving-Money-For-A-House-300x191

  • Mortgage

Mortgage plays a vital role while saving money for your house. The investor must know how much he/she can afford before applying loan. In order to make accurate calculations, investors can approach tax advisors.

  • Credit points and other payments

If the credit points are high, interest rates will be low. Down payments are essential since 20% of the deposit should be paid to the lender by the borrower, failing to do so, he /she will be asked to pay private mortgage insurance (PMI). Along with the down payments, the closing cost and title fees requires huge amount of savings. Hence, the purchaser must start allocating money for these payments before buying a house.

Dc Facwett Real Estate formula 8

  • Monthly savings

Cultivate the habit of maintaining monthly budget; make a note of trivial expenses and cut down on unwanted expenses that are pushing forward the dreams of buying a house. Try to save on your electricity bills, restaurant bills, vacation and other leisure activities.

  • Creating account for savings

Maintain a separate account in your bank for saving money for the house. This will help you to track down how much you need more. Also don’t use any money for your personal purpose or emergency. While you are saving money for your down payment and closing cost, the capital can fetch you good amount of interest which is sufficient for future to make repair work etc. you can also make savings automatic by contacting your payroll department to make fixed deposit every payday. In case, you get any bonus, don’t spend instead transfer to this special savings account so the dreams of purchasing a house becomes easier.

Dc Facwett Real Estate formula 9

  • Rental saving

In case you live in a rented 2 or 3 bedroom apartment which cost you more and you feel luxurious for a small family, try to move to a smaller house which will help you to reduce your rental expenses.

  • Working in part time

In case you have more idle time, you can work overtime or join part time jobs which will fetch you more money.

While saving money, make sure you prevent from scam going around.

  • Credit card scam: Scammers obtain your credit card information by installing spyware and other methods.

  • Fake loan scam: Amount deposited with low interest rate

  • Phishing: This scam is very tough to even find out since they make use of official logos and create havoc to your bank account, send emails to your official mail address.

    Dc Facwett Real Estate formula 10

DC Fawcett Reviews – Overview on risks of overpricing Method

To earn profit in a short span of time, overpricing is not a good strategy in real estate. Every seller should set the right price as every property falls into a particular market value range. If sold at right price, the buyers will make an offer else it will remain in the market unsold for long period of time.

dc-fawcett-Overview-on-risks-of-overpricing

Dc Fawcett Reviews – The risks of overpricing a property which is as follows

  • Buyers lose interest on your property since they can judge that property has been overpriced as investors can make use of real estate blogs to know about the ongoing scenario and trends in the market. In return, you get a low offer for an overpriced property and you also eliminate the buyers who might be interested on your property.

    Dc Facwett Real Estate formula 11

  • Real estate agents are the first one to get price listing right after the property is on sale. Once he makes a realistic pricing, he will not offer you a deal with lower price, similarly if he overprice, it is clear that the buyer must ask a drop in the price. Negotiations are must when you deal with a real estate agent in order to save money from your pocket. Since the agents know about the property value, it is the buyer duty to make a proper assessment before purchasing a property. Many agents give an inflated estimation to the buyers; make sure you appoint ethical agents who can give the best estimates.

  • Listing services provide information about how long the property is on sale, if buyers notice that the property is unsold for long period of time, it creates a suspicion that something is wrong.

    Dc Facwett Real Estate formula 12

  • The price is determined finally by the seller, so the real estate agent or the purchaser cannot determine it. The returns don’t have any impact on market value. The market value is chosen to be the price the purchaser is willing to pay.

  • Overpricing creates an illusion that market is down, so they have overpriced it to earn huge profit.
  • It is must that the property should not be priced more than 20% of the selling price. Purchasers can research and make comparisons before they make an offer considering the factors like resale value, accommodation features.

  • Beware and not bargain, as buyers may turn down your offer. If the house is unsold for a long time, cleanliness and maintenance takes a backseat.

  • The seller must keep in mind that the buyers not only have a look on his/her property alone, he visits several other properties and can judge if it’s priced rightly or overpriced.

    Dc Facwett Real Estate formula 13

  • New laws have been enacted that if a property is overpriced; it will neither appreciate in its value nor will be eligible for loan.

Conclusion:

Dc Facwett Real Estate formula 16

Overpricing is considered to be a scam actually as realtors aren’t supposed to price their property more than the market value. In case you are looking out for a property and want to have an idea about pricing, DC Fawcett, founder of the virtual real estate investing club has written blogs on overpricing, investors can have a look at it before purchasing a property.

To know more about Net operating income, visit DC Fawcett virtual real estate investing club where several blogs has been written for the new investors. Virtual wholesaling is also recommended for new investors as it doesn’t involve money and no risk involved.

Save