Tuesday, November 26, 2013

Thanksgiving is Always in Season

Thanksgiving250.jpgMost school children would probably say that Thanksgiving dates back to the Pilgrims at Plymouth as early as 1621. By the late 1660’s, it had become traditional to hold a harvest festival in New England.

President George Washington declared the first nation-wide thanksgiving in 1789 “as a day of public thanksgiving and prayer to be observed by acknowledging with grateful hearts the many and signal favours of Almighty God.”

One hundred fifty years ago during the Civil War, in October, 1863, President Abraham Lincoln proclaimed the first national day of Thanksgiving.

William Seward, Lincoln’s secretary of state, drafted the proclamation: “No human counsel hath devised nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God…they should be solemnly, reverently and gratefully acknowledged as with one heart and one voice by the whole American People.”

Even though the country was in the middle of the costly Civil War, the people of America started an enduring tradition to give thanks. In 1941, Congress determined that Thanksgiving will be celebrated on the fourth Thursday in November.


Tuesday, November 19, 2013

Refinance to Remove a Person

refinance 250.jpgMost people are familiar with the various reasons a homeowner refinances their home which generally result in two major benefits: saving interest and building equity. 

There is however another reason to refinance which may not be as common which is to remove a person from the loan. In the case of a divorce, when one party wants to keep the home and the other party wants their equity out of the home, it is possible for the remaining party to refinance the home. If the equity is sufficient to justify it and the remaining owner can qualify for the new loan, the refinance can provide the proceeds to buy out the other spouse.

Refinancing to remove a person from the loan could also involve a situation where two or more heirs jointly own a property and have differing opinions on when to sell. The same situation could apply to a rental property with multiple owners and the refinance would provide a way to buy out a partner.

Sometimes, it’s not about taking cash out of the home to buy out the other party. If a person’s name is on the mortgage, they’re responsible if it goes to default. One party may be willing to deed the home to the other party but it doesn’t necessarily relieve them of the liability of the mortgage they originated.

Many times, once a person has made their mind to move on, they’ll take the fastest and easiest way out. Removing a person from the deed or a mortgage is a reason to consider obtaining legal advice to protect your interests. Refinance Analysis calculator.

Reasons to Refinance

1. Lower the rate
2. Shorten the term
3. Take cash out of the equity
4. Combine loans
5. Remove a person from a loan

Friday, November 15, 2013

The Skinny on Real Estate during the Holidays

 Check out this great advice from a trusted source... 

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Do you need to BUY or SELL?
Call me at (404) 857-2508 to see how I'll get it done!
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Natasha Liburd Bazile is a Realtor with Coldwell Banker Atlanta and the Lead Home Stager with Heart of Decor in Georgia (virtual services available). She prides herself in being a guide to her clients and finds fulfillment in helping them achieve their goals.

Direct Phone: (404) 857-2508 
www.NatashaKnowsATLHomes.com Email - Facebook - Twitter - YouTube

Tuesday, November 12, 2013

Who's Paying Your Mortgage?

who is paying your mortgageAs a homeowner, you obviously pay for your mortgage but as an investor, your tenant does.  Equity build-up is a significant benefit of mortgaged rental property.  As the investor collects rent and pays expenses, the principal amount of the loan is reduced which increases the equity in the property.  Over time, the tenant pays for the property to the benefit of the investor.

Equity build-up occurs with normal amortization as the loan is paid down.  It can be accelerated by making additional contributions to the principal each month along with the normal payment.  Some investors consider this a good use of the cash flows because interest rates on savings accounts and certificates of deposits are much lower than their mortgage rate.

In the example below, is a hypothetical rental with a purchase price of $125,000 with 80% loan-to-value mortgage at 4.5% for 30 years compared to a 3.5% for 15 years.  The acquisition costs were estimated at $3,000, the monthly rent is estimated at $1,250 and $4,800 for operating expenses. 

11-11-2013 7-42-16 AM.png

Notice that both properties have a positive cash flow before tax.  The cash on cash return is the revenue less expenses including debt service divided by the initial investment to acquire the property.  The 15 year mortgage will obviously have a smaller cash flow and lower cash on cash but the equity build-up is significantly higher.

If the goal of the investor is to pay off the property to provide the highest possible cash flow at a later date, a shorter term mortgage with a lower interest rate will help them achieve that.  A simple definition of an investment is to put away today so you’ll have more tomorrow.  Sacrificing cash flow now, during an investor’s earning years, is a reasonable expectation to provide more cash flow in the future when it might be needed more.

Contact me if you’d like to explore rental property opportunities.

Friday, November 1, 2013

7 Hardcore Tips for Finding a Rental Home

 If you are looking to rent a home, this info will help YOU tremendously!

Two Ways to Find a Rental Home

1) If you are finding a rental home on your own, call the agent listing the property directly (aka Listing Agent) to schedule a showing, to apply, etc.

2) If you are finding a rental home by working with an agent, ONLY WORK WITH THAT ONE AGENT.

DO NOT "work with" multiple agents (having them show you several properties) because only 1 of those agents will get paid! This is a HUGE frustration for agents and the reason many do not work with renters. Don't believe me??? Check out this post! Why Don’t Real Estate Agents call me back about a Rental?

Helpful Tips for Renters
1) Know what you want.
A rental should be relatively easy to find. If you are searching for months or have seen tons of homes, you should re-evaluate your criteria, motives for moving, and finances.

2) Be ready to apply.
Rentals go quickly, act fast.

3) Be realistic about what you can get for your price range. 
Good school districts and large homes come at a higher price.

4) Don't be too picky.  
This normally has something to do with #3. If you are not finding what you want, look into buying or building a home.  

5) In a multiple application scenario, offer more rent and/or security deposit. 
You have to stand out from the other applicants.  


Want a Real Estate Agent to Help You Find a Rental Home?  Keep this in mind!
The reality is AGENTS DO NOT MAKE MUCH MONEY ON RENTALS and if they worked with primarily rentals, it would be hard for them to stay in business and feed their families for long.   Honestly, it can take as much time and effort as it takes to work with someone buying a home and the compensation is very little (in some cases not enough to cover gas). 

Now that you know this, if you do find an agent willing to work with you, do your part to make the process a positive experience for the both of you!

Additional Tips When Working With an Agent

6) Do as much of the ground work yourself. 
Drive by the neighborhood and scope out the neighborhood and house to make sure it is a serious contender. Then contact your agent to set up a showing. This will save a lot of time & energy.

7) Be upfront, open, and honest.  
Keep your agent in the loop and disclose anything that may affect your ability to be approved for a rental. I have known agents to work with renters for months and show them tons of homes only to find out the renter couldn't get approved because of something they didn't disclose.


8) Prepare a letter explaining any credit issues or special considerations to accompany your application.  
Address potentials negatives upfront. You may not get another chance to do so.

I hope this was helpful. Good luck! 

Natasha Bazile is a Realtor and Home Stager. She prides herself in being a guide to her clients and finds fulfillment in helping them achieve their goals.

Direct Phone: (404) 857-2508 
www.SoldbyNat.com  Email - Facebook - Twitter - YouTube