Sunrise Homes & Renovations, Inc.

Tips On Making Friends In Your New Neighborhood

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Tips On Making Friends In Your New NeighborhoodIt’s often harder to make friends as an adult than it is when you’re a child. It’s even more challenging to make adult friends when you move into a new neighborhood. You may feel like people already have their own group of friends and aren’t looking to include newcomers. Of course, that’s just an illusion.

Here are some easy ways to implement tips for making friends in your new neighborhood.

Put Out The Welcome Mat

Make your front door inviting to the neighbors. Place some cheery flower pots near the porch and buy a nice welcome mat for the front door. Be sure to put fresh light bulbs in the porch lanterns, too. These small touches will show neighbors you’re setting a friendly tone.

Have Coffee And Lunch Out

Make a point of having your coffee breaks and lunch at the nearby cafes as often as possible. Mention to the servers or owner that you’re new in town and this is your first time trying out their menu. They’ll likely take an interest in you and ask what house you bought, and so on. As you continue returning, you’ll be on a first-name basis, which will probably lead to some casual introductions to other locals who are stopping in for coffee.

Host A Housewarming Party

Housewarming parties are a fantastic way to welcome old friends and meet new ones. They are also a great excuse to knock on your neighbors’ doors and personally let them know they’re invited. If you feel uncomfortable having strangers in your new home, make it a backyard BBQ housewarming. In no time at all, you’ll have a new collection of local friends and acquaintances.

Join The Local Clubs

Membership clubs offer a natural way to meet new people without appearing overtly friendly. Look for some local clubs you’re interested in, such as gardening, exercise and book clubs. When you start attending on a routine basis, friendships will organically begin to develop.

Volunteer

If you have an extra hour or two in the week, consider volunteering as a way to help the community and to make new friends. Places that typically need volunteers include theaters, schools and athletic programs.

Making friends in your new neighborhood will enable you and your family to feel more at home sooner. One or more of the above-mentioned tips is likely to work for your personality and preferences.  And don’t forget your real estate and mortgage professionals! They’d be happy to help get you connected as well!

Join Or Create A Real Estate Investors’ Pool For Fun And Profit

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Join Or Create A Real Estate Investors' Pool For Fun And ProfitMany baby boomers are reaching retirement age. If they set up their financial planning well, while younger, they should have accumulated enough wealth to have some discretionary money available for making investments.

Others, who may be just starting out, have some investment capital but not necessarily enough to buy a piece of commercial real estate on their own. These investors might enjoy a real estate investment pool, also called an investors’ club.

Pooling Resources

One way to get some investment participation in real estate is to pool investment funds needed to have enough for the down payment on a piece of real estate.

For example, if the down payment for acquiring a single-family rental home is $40,000 and four investors chip in, this means the contribution by each one will be $10,000. Each investor will own 25% of the deal. Many can come up with $10,000 for investment but it may not be as easy to find a spare $40,000.

Real Estate Investment Clubs

An investment club is where people get together to review the summary of a real estate deal to discuss its merits as a group investment.

To find a local group there is a nice system called Meetup online, which is a good resource. If there is no real estate investment club in a particular local area, consider forming a new one through that system.

Legal Structure

For real estate purchased by an investors’ pool, the best legal structure is to acquire the property by a newly-formed limited liability company (LLC). An LLC is very easy to create online. The LLC structure limits the liability of its owners (members) to the amount they each invest in the LLC.

It is best to set up a new LLC for each closing of a real estate acquisition. In this way, the owners can be different and to separate the deal from the successes or losses in other deals. Investors in an LLC buy units of the LLC, not shares.

When an LLC starts, it is authorized to issue a certain number of units. Each investment gets a proportional percentage ownership share of the LLC. The investor gets the number of units that represents the percentage value of the investment compared to the total investment.

Work with a real estate agent to help find deals. Use competent legal counsel and a professional accounting firm to set up and manage the LLC properly.

Summary

Investment clubs can be very fun. There may be considerable discussion and disagreement about each potential deal. This is a welcome thing. It is excellent practice to learn how to conduct proper due diligence.

Investors who are just learning about what to look for in a real estate deal gain insights from more experienced investors. Experienced investors stay active and get a chance to pass on their knowledge to the less-experienced ones. Everyone enjoys socializing together and that is a nice extra reward.

What’s Ahead For Mortgage Rates This Week – August 12th, 2019

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What’s Ahead For Mortgage Rates This Week – August 12th, 2019Last week’s economic releases included readings on consumer credit, job openings and weekly reports on mortgage rates and first-time jobless claims.

Consumer Credit Use, Job Openings Slow in June

Consumer credit use slowed in June as credit card use lost ground. Non-revolving credit, which typically includes education and auto loans, grew at its slowest pace in three months. Mortgage loans are not included in the Federal Reserve’s report on consumer credit. Consumer credit use grew by $14.6 billion year-over-year in June as compared to May’s year-over-year reading of $16.0 billion.

Year-over-year credit use fell one percent in June to 4.30 as compared to May’s year-over-year reading of 5.30 percent. Credit card use fell by 0.10 percent in June, which suggested that consumers held off on large purchases. Fed Chair Jerome Powell said ,”households are in pretty good shape overall.” in reference to current economic conditions.

Job openings fell in June, but maintained a 15-month streak of seven million or more job openings. There were 7.35 million jobs open in June as compared to May’s reading of 7.38 million jobs open. Job openings rose in retail and real estate, but were lower in construction, leisure and hospitality categories.

Analysts said that shortages of skilled labor and fears over the effects of trade wars caused fewer hires. The trade war with China has not broken the longest period of economic growth in U.S. history, but escalation of trade disputes could further slow economic growth if trade wars aren’t resolved.

Mortgage Rates, Weekly Jobless Claims Fall

Mortgage rates dropped last week according to Freddie Mac. Rates for 30-year fixed rate mortgages averaged 3.60 percent and were 15 basis points lower. Rates for 15-year fixed rate mortgages averaged 3.05 percent and were 15 basis points lower.

The average rate for 5/1 adjustable rate mortgages dropped ten basis points to 3.36 percent. Discount points averaged 0.60 percent, 0.50 percent and 0.30 percent respectively.

Initial jobless claims fell last week to 209,000 new claims filed as compared to the prior week’s reading of 217,000  first-time claims filed. Analysts expected a reading of 215,000 new jobless claims filed for last week.

What‘s Ahead

This week’s scheduled economic news includes readings on housing market conditions, housing starts and building permits issued. Weekly readings on mortgage rates and initial jobless claims will also be released.

How To Find Hot Real Estate Markets

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How To Find Hot Real Estate MarketsA hot market in real estate is identified by a few things, which include higher prices, lower amounts of unsold inventory, and desirable neighborhoods. Neighborhoods can increase in value because of having an excellent location, high-paying jobs, quality schools, and a variety of attractive amenities.

Hot Markets Are After The Fact

Properties in a hot market may sell faster, for higher prices, and without needing to be in perfect condition or staged for sale. Real estate investors do not necessarily benefit from learning about a hot market unless they already own property in that market area.

It is nice to be an owner with a property for sale in a hot market. However, more success may come from identifying a market as potentially valuable before it becomes a hot market.

Hot Market Trends Before The Fact

Gentrification is a pattern that may start out slowly and then build until a market goes from cold to hot. With gentrification, renovation of rundown neighborhoods attracts new, wealthier residents. Many cities encourage the gentrification of deteriorating urban areas.

Streets with abandoned storefronts may convert into pedestrian-only shopping promenades. Old wharf warehouses may turn into a riverfront boardwalk. Artist types may move into a bad neighborhood because of the low rent and then turn it into an eclectic, hip area with art galleries, coffee shops, boutiques, and street murals.

One way to benefit from gentrification possibilities is to follow the long-term development plans of a community and be an early investor in those plans. Invest in property just on the outskirts of a planned gentrification zone.

Be careful to note any physical barricades, such as a wide street, which may stop gentrification from progressing further. A wide street may prevent gentrification from moving across it to the rundown area on the other side.

A similar pattern shows up when investing in real estate that is on the outskirts of a growing area or adjacent to a desirable neighborhood. Over time, if the growth continues, these outlying areas may become a nicely profitable investment for those who are patient.

Getting Out Of A Hot Market At The Right Time

It is important to know when to sell properties in a hot market and move on to find a different one. Continuing to re-invest in a hot market may ultimately disappoint when there is a market correction to the downside. Try to avoid this if possible.

Market indicators to watch include:

  • Year-over-year increases in listing prices compared to historical figures for the same area.
  • The percentage of listings showing a price reduction.
  • The average time a property is listed before being sold.
  • A comparison between the listing price and the sales price for sold properties.

Conclusion

Studying market growth and guessing the direction of growth helps identify a potentially strong market before it gets hot.

It is time to sell and move on, if the listing prices are not increasing each year or if price reductions are increasing. Other strong indicators that a market is cooling down are when the average listing time is increasing and the average difference between the listing price and sale price is widening.

If you’re in the market for a new home or interested in listing your current property, be sure to set up a consult with your trusted real estate professional.

How To Maximize The Resale Value Of Your Home

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There are a few things to consider, when selling a home, that will help you maximize your potential for a better sales price. Seasoned real estate professionals are one of your best resources for these tips.

The Buyer’s First Impression Is Emotional

The first goal is to improve the buyer’s first impression when they see photos or a video of the home, do a drive-by, or make an appointment to view the home. Work with a real estate agent on staging the home and pay particular attention to curb appeal.

Staging means that a home has no clutter. Remove any personal items (family photos, toys, pets, etc.). Make closets less than one-third full. Make sure the home is immaculately clean. Use nice decor and minimal furniture. 

Logical Backup For The Buyer’s Emotions

Once a buyer has a positive emotional reaction to the home, then to cement the deal at a good price, offer logical backup to support the emotional reaction. Create a handout that lists the amenities and positive attributes of living in the neighborhood, such as good schools. If possible, sell the neighborhood and the community along with the home.

Answer a buyer’s, often unspoken, question of “Why should I live in this area?”

Like-New Condition

Homes that are in perfect condition usually sell for a premium price and may attract multiple purchase offers. Make any repairs that are necessary to ensure all the systems in the home are in working order.

Another confidence builder for a buyer is when the seller reimburses the fees for the inspections needed, from the escrow closing. Let the buyer choose the inspection companies from a pre-approved list that is acceptable for the seller.

Kitchen and master bathroom upgrades usually have a positive impact on the sales price. New appliances can be included in the sale and covered by a home warranty.

Go Green

Homes that are energy efficient and have an alternative energy system, such as solar, are usually more desirable. This is especially true in parts of the country where the monthly utility bills are very high. Add information about the savings on the monthly utility bills, when compared to other homes that are not green, to the home’s selling brochure.

Summary

Top-selling real estate agents know that homes with these characteristics usually command the best prices, receive more offers, and spend less time for sale on the market. Another benefit is that agents get excited about listing high quality homes. They typically feature them prominently in their listings from the agency, on their website, and in all other marketing efforts.

What Are The Pros And Cons Of Covenants, Codes and Restrictions?

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What Are The Pros And Cons Of Covenants, Codes and RestrictionsThere is a joke about gated communities that says the walls are not just there to keep the people out but to keep the residents in. Living in a gated community that is subject to the rules of a homeowners’ association (HOA) can be a pleasant or a severely irritating experience, depending on the perspective a homeowner has about lifestyles.

The Good, Bad, And Ugly About CC&Rs

Gated and master-planned communities may have an HOA and also may have covenants, conditions, and restrictions (CC&Rs) that are part of the property rights (or lack thereof) that a home buyer accepts when they buy a property in those neighborhoods.

The developer records a registered copy of the CC&Rs with the county where the development is. Every homeowner is subject to the rules found in the official CC&Rs. A copy of the CC&Rs may look like an old-style telephone book with hundreds of pages.

Prospective home buyers should force themselves to take the time to read the entire CC&Rs extremely carefully. This may take many nights to read because reading the CC&Rs may put a person to sleep. However, failure to read them can cause serious problems in the future and extremely stressful levels of frustration.

What Can Be In The CC&Rs?

It is not surprising to see in the CC&Rs rules that prohibit a homeowner from filling the front yard with broken-down cars or having a pig farm on the property. In a nice, gated, community nobody wants to see a neighbor’s property in that condition. The benefit of having reasonable CC&Rs is that homes, which are eyesores, because the people do not maintain them properly, are prohibited.

So far, so good. However, what about when the CC&Rs state the maximum measurement of grass before cutting it is 1.25 inches. That is an odd number to use as a measurement standard but don’t be surprised to see stuff like this in the CC&Rs. In such a neighborhood, you can be cited for a grass height violation. It may seem funny to see the enforcers in the front yard measuring the grass with a ruler until a homeowner gets a fine for a violation. This is just a simple example of the many rules potentially found in the CC&Rs that are very easy to violate.

Want to put up lighted holiday decorations? Check the CC&Rs because it may not even be allowed to put a wreath on the front door.

Think it would be a nice idea to repaint the exterior of the house? Check the CC&Rs first because there are usually severe color restrictions. If the paint is one shade lighter or darker than an approved color, this may cause the need to redo the entire paint job.

Conclusion

Personal taste differs significantly between people. When buying a home subject to CC&Rs, be sure to read them carefully and be able to live with all the details. Otherwise, a homeowner may find it really frustrating to live in a neighborhood with so many controls over personal freedom and choice.

If you have any questions or concerns about a prospective HOA, be sure to discuss it with your trusted real estate professional before making an offer on a new home.