Jennifer Raney Herriage: Broker and Investor

Turning Properties into Profits, Homes into Dreams

Rockwall Homes

Getting Ready to Sell….Don’t make these costly mistakes!

When you’re getting ready to sell your home, you don’t want to make any mistakes that can decrease the value of your home. However, sometimes sellers unintentionally do.

I always tell my clients the way you live in your home is very different than the way you sell your home…with that in mind, if your thinking about doing any “improvements” AND/OR could possibly sale in the near future, keep these tips in mind:

 trendyFollowing trends.This is a tricky one because we all can get caught up in liking designs that are trendy, but if you follow a trend that quickly dies, you’ll find that you won’t be impressing buyers. If this trend is difficult to change, it could decrease the value when you put your home on the market. That’s because buyers will think about how much money they have to put into the home to fix the trendy mistake. So, certainly make your home your style, but if you have plans to sell it in the future, think about how renovations may impact the sale of your home.

 

Not maintaining appliances. Yes, you most certainly can sell a home “as is” meaning in the condition that the buyers initially see it. But having lots of issues and repairs needed will decrease the home’s value. Cleaning up appliances that will convey with the home is important. If they’re completely messed up, it’s worth replacing them. It should go without saying that not maintaining the entire home is a huge way to decrease its value.

Not keeping it cool. If you want buyers to hurry in and out of your home, overheat them and you’re sure to have them running for the door. Make sure on hot days that the home is aired out so that stale air can escape. Stifling, hot, muggy homes are not fun to tour. Turn the AC on to a comfortable temperature to ensure your potential buyers take their time to really see your home. If you don’t have AC and it’s blazing hot, using ceiling fans and open windows. Also, having some nice cold water or lemonade available will likely encourage buyers to stay a little longer at an open house.

Not sweating the small stuff. Okay, you don’t have to “sweat it”, but you do have to care enough to tend to even the smallest of issues such as fixing a faulty light switch or replacing burned-out bulbs. Buyers go through homes and turn on lights, flick switches, open closets, cabinets, drawers, and even look in medicine cabinets. Keep small things like these in good working order. It’s easy to do and it can help lead to an overall better opinion of your home.

Room Colors 005Going wild with color. You may like lively colors but, generally speaking, buyers like paint that is neutral. That’s because it’s like a blank canvas which, upon moving in, they can paint it the way they like it. Extra bright or non-traditional colors can scare them off. So opt for something other than funky purple walls and shag green carpet.

 

Remember, that avoiding some of these mistakes can help prevent buyers from thinking your home should be worth less than you do.

 

Reduce Claims and Repairs Costs

The video below presented by the National Real Estate Insurance Group is from the Claims Management Series and focuses on tricks you can use to prevent burglary, especially if you cannot afford an alarm system. Sometime it’s all about creating an illusion that the property is secure or occupied.

Tips to Maintain Foundation

Ten Steps for Maintaining Foundation

  1. Avoid trapping water against your foundation. Water can be trapped against the building by raised flowerbeds, using metal edging or other borders that do not have openings to allow water to escape, by sidewalks or other obstructions.
  2. Use the downspout extensions or splash blocks on all down spots.
  3. Place soaker hoses around your foundation to keep the soil damp during dry periods.
  4. If your sewer becomes blocked or backed up, have it tested for leaks. Many times sewer blockages are caused by roots, which means there are openings in your sewer.
  5. Keep the majority of the shrubs around your house under 3 feet tall. Large plants need large amounts of water, which can cause foundation problems.
  6. Leaking sprinkler lines and pool circulating systems cause foundation problems. Have your systems tested for leaks every 2 to 3 years.
  7. If you have large trees around your house, and the trees are closer to your foundation than the height of the trees, consider installing root barriers to keep the trees from pulling water out from under the foundation.
  8. Make sure that the soil around your foundation is graded so that the water flows away from the foundation. The soil should drop 4 to 6 inches in 4 to 6 feet.
  9. Make sure that all paved surfaces that border your foundation slope away from your foundation. This is particularly important for pool decks.
  10. Keep the soil around your foundation between 2 to 4 inches below the brick line or edge of your siding. The soil helps to hold the water in the ground and reduces seasonal settlement.

internetsiz oyunlar , bulmaca , hd video indir 

Thinking about Investing in Real Estate?

I get a lot of calls from clients who are interested in purchasing real estate as an investment, but don’t know where to start.  One of the first things to consider is how you will finance this investment.   There are many financing options available including a traditional lender, i.e. Wells Fargo or Bank of America, a hardmoney lenders like Bay Mountain Capital, and private lenders just  to name a few.  It is not as easy as it once was to get traditional financing.  Most institutions will require at least 20% down and want to see a 750 credit score or higher.  In addition, the traditional lender will not look at potential rental income.  As a result, you will have to qualify for this investment as if it was not generating any income at all.

Many investors choose to use a hardmoney lender to finance the acquisition and rehab of the investment and then go on to re-finance the property down the road.  This avenue costs more money, but re-financing a property that is already generating income eliminates the need to qualify all on your own income (without considering rent).

My favorite way to purchase rental property is through private money.  I have found that there are many people out there who want to diversify their wealth and be a part of real estate, but don’t necessarily want the head ache of dealing with renters and collecting rent.  For private lenders, they are happy to make 6-10% inerest because its a lot better than the alternative of .5% in the bank.  Finding private lenders, however, is not easy as they don’t exactly put an ad out in the paper.

The next thing to consider are your financial goals in regards to a particular investment property.  Do you want a property strictly for cash flow or do you want a property strictly for equity increase or do you want a combination of both?  Most people want a combination of both.  Knowing the keys to a profitable rental property is important!

You may be struggling with how much you should pay for an investment property.   Most investors will not pay over 85-90 times rent.  So in order to know what kind of deal you are getting, you need a good relationship with a Realtor so they can help you with what the rent rates are.  For example, if a home will rent for $1200 a month, then an investor shouldn’t pay more than $1200 (rent) times 85 equals $102,000 for the house.  $102,000 is the TOTAL investment which includes closing costs, any rehab costs and leasing fees.

I recently came across a great investment calculator on the AARP website.  It will help you look at an investment and understand the total return you possibly could make, it evaluates cap rates, possible equity increase and everything else you could think of.  Investor Caluclator.

Investing in Real Estate is a great way to take advantage of a depressed real estate market along with low interest rates, both of which we may not see again for 40-50 years!

Take a look at this interesting video to learn about Tips on Being a Landlord.

Happy Investing!