Thursday, March 27, 2014

Wealthy People Own Real Estate

I was going to write about the many reasons I believe everyone should own real estate and then I came across this article by Hasani Pettirod. I'll save myself a few hours and just share what he wrote. -Natasha

The eleventh habit of wealthy people is that they own real estate. For wealthy people who have found their path to financial independence, it can be summed up in two words: Investment property. FYI- Owning a home is an investment in property. 

Theodore Roosevelt said, “Real estate is the basis for all wealth.” In fact, all wealth since the beginning of time has been founded in real estate. Over a third of the world's wealth is tied up in real estate. Fortune Magazine states, 97 out of 100 self-made millionaires made their fortune through Real Estate Investing. 

Wealthy people own real estate because it is an ideal investment.  Real estate is ideal because it provides: 1) passive income/cash flow, 2) appreciation, 3) tax advantages, and 4) leverage. Real estate is the only investment where you can have all of these working on your behalf within a given investment. It is these very attributes of real estate that cause you to become wealthy as a real estate investor because all the right components are present.

1. Real Estate ownership can provide a foundation for positive monthly cash flow and permanent passive income. The moment your rents exceed your monthly expenses you have cash flow. There is no limit on the amount of years that you can collect rents on any given property.

2. Over time property values rise. With our expanding population we know that demand for property will increase, and demand drives appreciation.

3. There are huge tax savings associated with real estate (deductible interest, expenses, etc.). The tax laws in our country were written by wealthy land owners. Therefore, that is whom they benefit. As an investor you own a property, the tenants pay the mortgage, you build equity and potential long term passive income and get all the tax benefits.

4. Leverage is the effective use of borrowed money to finance an investment. By utilizing the bank’s money you can leverage your resources, however limited they may be.

Real estate investing has been the foundation for many of the wealthy people around the world. Even if they made their fortune elsewhere, they definitely protected it in their property portfolios! Real estate is an asset and wealthy people own assets that produce income. It’s one of the easiest ways to make money. Jock Barker says "Tell me where else besides real estate where you can buy an investment for $10,000 down and renters pay off the rest of the investment for you. Where else can you make a 60 percent return on a $10,000 down payment in one year and have it be tax deferred. Isn’t that wild?"

In fact, real estate has outperformed the stock market for several years and it looks as if there is no end in sight. Money Magazine’s Martine Costello said, “You learned your lesson with stocks: Don't assume any investment can make you rich over night. But with smart real estate investing, you can earn a profit of 50 to 100 percent.”
As you can see, real estate is a lucrative investment to get involved in whether it be the acquisition of property or ownership through a real estate investment trust. Wealthy people have made millions in real estate for many years. Now it’s your turn. Do what wealthy people do and own real estate!


If you are interested in BUYING a home or investment property, contact me at (404) 857-2508!

Start your search now at, download MY Mobile App, or scan the code below.

Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners 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 Email - Facebook - Twitter - YouTube

Tuesday, March 25, 2014

What's the Point?

Prepaid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence.  When points are paid on a refinance, they are not a current deduction but have to be taken prorata over the life of the mortgage.DEDUCTIBILITY.png

For instance, if $3,000 in points were paid on refinancing a 30 year mortgage, a deduction of $100 per year is allowed.  When the loan is paid off or replaced by refinancing again or the home is sold and the mortgage paid off from the proceeds, the balance of any un-deducted points may be taken in that tax year.

Your tax professional needs to be made aware of any of these situations so that he or she can accurately reflect the deductions in your return.  Currently, the most common situation is homeowners may be refinancing their home for the second, third or even, fourth time. If there are points that have not been completely deducted, they need to be treated in the year of refinancing.

For more information, see points in IRS Publication 936; there is a section on Refinancing in this publication. For advice considering your specific situation, contact your tax professional.

Saturday, March 22, 2014

Foreclosure, Short Sale, Bankruptcy? Buy a Home NOW!

FHA “Back to Work” Program

About the Program

Under the new federal program called “Back to Work – Extenuating Circumstances”, if you have had a foreclosure, short sale, deed-in-lieu of foreclosure, or have declared bankruptcy you may qualify for a new home loan if you are back to work and can document the extenuating circumstances.

Do You Qualify?

FHA will consider you for eligibility if you had a financial hardship in the past but can now document the following circumstances about yourself:
  1. You meet FHA loan requirements
  2. You can document the mortgage or credit problems resulted from a financial hardship
  3. You have re-established a responsible credit history
  4. You have completed HUD-approved housing counseling
A lender will first have to determine if you meet the FHA loan requirements before you can apply for a FHA loan under the Back to Work program. You will need to explain how the financial hardship was something beyond your control that reduced your income or caused you to lose employment. If your household income dropped by 20% or more for at least six months, it may count for this type of financial hardship.
To re-establish credit you must have a 12 month record of on-time rental housing payments with no delinquencies, and not have been 30 days late on more than one non-housing loan payment. If you still have any open collection or judgment accounts, then a “capacity analysis” will be done to see if you can repay those creditors.

How to Get Started... Contact me at (404) 857-2508!

Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners 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 Email - Facebook - Twitter - YouTube


Tuesday, March 18, 2014

How's Your IQ on the QM?

Qualifying Guidelines.pngThe Qualified Mortgage Rule came into effect on January 14, 2014 as one of the results to the Dodd Frank Reform Act to protect consumers from predatory lending practices.  This will affect the underwriting standards that the majority of lenders will use to qualify borrowers.

The ability to repay rule states that financial information must be supplied by the borrower and verified by the lender.  The borrower must have sufficient assets or income to pay back the loan which limits the maximum debt-to-income ratio of 43%.  In an effort to present a more accurate picture of the costs to the borrower, teaser rates can no longer hide a mortgage’s true cost.

A maximum of 3% in upfront points and fees can be paid on behalf of the borrower.  There can be no negative amortization, interest-only or balloon payments and the loan term limit cannot exceed 30 years.

While there are more requirements, most deal with good underwriting practices that are followed by reputable lenders such as considering and verifying things that affect the ability to repay the mortgage like income, assets, employment status, simultaneous loans, debt, alimony, child support and credit history.

Tuesday, March 11, 2014

Every Homeowner Needs One

water meter key.jpgA water meter key is like insurance; buy it before you need it.

Imagine a pipe has burst and there is water flowing like a river through your home.  There may a cut-off valve to each sink if it works and if that’s where the leak is coming from. Your home may have a master cut-off valve but if you haven't used it before, you might not know where it is. The last resort is to cut off all the water to your house at the meter.

In most cases, you'll need a key to get into the meter.  With water starting to rise in your home, concern over the damage being done may add to your anxieties.  You don’t have time to call a plumber or even go the store to buy a water meter key.

Emergencies are handled much better when you plan for them in advance and practice, even though you hope you’ll never need it.

1. Determine what kind of key you need to open your water meter.
2. Purchase it at the home improvement or hardware store.
3. Practice opening the meter to be able to do it quickly and easily.
4. If your meter key doesn’t have a wrench on one end, you need a wrench to turn the water valve.
5. Practice turning the water off just to see how it works and feels.
6. Put the key in an obvious and conspicuous place.
7. Have the phone number of an emergency plumber, just in case you need it.

While you’re planning for the unexpected, it might be a good idea to show some of the other family members how it works and where you keep the key.

Thursday, March 6, 2014

Getting a Mortgage in Snellville, Georgia

Check out this property: 

Price reduced to $221,900 
HURRY!  It won't last!

Watch the Video Tour

See the MLS listing


If you are interested in BUYING this home, contact me to get pre-approved for a mortgage loan and schedule a showing.

If you want to SELL your home, contact me to find out how much you can get in today's market. 

Give me a call at (404) 857-2508!

Natasha Liburd Bazile is a Realtor with Keller Williams Atlanta Partners 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 Email - Facebook - Twitter - YouTube