Sunrise Homes & Renovations, Inc.

5 Ways Bridge Loans Help Real Estate Investors Increase Profits

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5 Ways Bridge Loans Help Real Estate Investors Increase ProfitsBridge loans, which are also commonly referred to as interim financing, gap financing or swing loans, help a motivated home buyer to secure financing before their home or investment property sells. Lenders can usually modify these flexible loans to accommodate a person’s unique needs.

Current real estate market conditions allow savvy investors to make big profits as long as they can move quickly on good opportunities. Low inventories of existing homes and slower than normal construction developments have combined to drive the median home price across the US to $223,900. This represents a 7.6% national average increase through 2018. Market experts expect prices to rise by another 6.3% over the next 12 months which may present very good opportunities for home buyers. 

Bridge loans are a short-term funding solution with some unique features.

  • They usually include payback terms between 2 months to 1 year.
  • Most bridge loan options gain approval in about 15 days.
  • May receive up to 70% of the property’s value in the loan.

Bridge loans are a tool real estate investors can use to increase their holdings in this hot market. How can these funds be used to help you make more money from your properties?

  • When prime properties come up for sale, investors need to be ready to take advantage. If most of your cash is already tied up in other properties, a bridge loan is a perfect way to get the quick cash you need to win the bid.
  • While a property is up for sale, investors can use bridge loans to continue financing new projects. When the sale is complete, the funds can be used to pay off the bridge loan.
  • Hard money loans are a popular option for real estate investors who can’t wait for the normal bank loan process. However, these funds usually come with higher interest rates. Bridge loans are a lower cost alternative, as lenders generally charge less interest for these accounts.
  • Not sure what you’re going to do with your new property? If you wait too long to make your decision, chances are good that the property will be gone. Use a flexible bridge loan to secure your property. If your plans change, it’s simple to convert the funds into a more conventional loan structure.
  • For flippers who buy properties, perform renovations, and put the properties back up for sale for a profit can use bridge loans to quickly increase their holdings without sacrificing the liquid assets they need for material, labors, and other renovation costs.

In order to qualify for these funds, investors need to prove that they can afford double mortgage payments, present a clear plan on how they intend to pay for the loan (either through resale or refinance), and have a property that can be used as collateral with at least 20% existing equity.

When used as part of an overall investment plan, bridge loans help real estate investors buy more properties, which can mean more money in their pockets. Call your trusted home mortgage professional to discuss bridge loan and other financing options that best suit your personal situation. Most importantly, be sure to utilize the skillset of your trusted real estate professional to find ideal investment properties in your area. 

 

 

The 2019 Housing Market, While Still Risky, Isn’t All Bad for Buyers

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The 2019 Housing Market, While Still Risky, Isn't All Bad for BuyersMany new buyers start looking for homes in the spring. The question in 2019 is whether buyers can afford available inventory or want to buy given changes to the tax code and increase in natural disasters. 

Interest Rates

The 30-year-fixed interest rates have been trending lower recently. This reduction in interest rates, coupled with a slowdown in the resale housing market, is working in the buyer’s favor in some areas. Talk with your trusted real estate professional and mortgage lender to get the specifics for your area and situation. 

Affordability

Inventories of available homes are on the rise, but still out of reach for many Millennials and other first-time buyers. This has been the case for the past five years. One of the biggest factors some buyers second guess in a home purchase is the commission fees paid to real estate agents. Remember, the real estate commission is paid for by the seller of the home, not the buyer.

With advances in technology, the role of the real estate agent is changing. Many customers think they might be able to their own home online. However, agents still have valuable expertise in individual markets which may lead to a more competitive sales process. They also have helpful experience with the closing process which can significantly lower the anxiety throughout the home buying process.

Tax Code Changes

The 2018 tax code changes have big implications for current and prospective homeowners. The cutoff on home mortgage interest deductions dropped from $1 million to $750,000, and there’s a new $10,000 cap on state and local tax deductions.

It may take a few years for the full impact to play out. However, it could mean an unfavorable combination of higher taxes, higher interest rates and higher prices. One favorable solution to this trifecta is new home construction. An increase in the number of homes could help to bring down housing costs, but zoning laws hinder a fast ramp up in many areas.

Hurricanes And Other Natural Disasters

In 2017, Hurricane Harvey decimated the Houston area and revealed a lack of adequate coverage for many homes. This should serve as a wakeup call since natural disasters seem to be on the rise. 

New buyers are more concerned with what the interests rate will be and whether they can afford the down payment. Many don’t even ask if the property is in a flood zone. That may change if the streak of hurricanes, floods, wildfires and other natural disaster events continues.

Even with all of these considerations, 2019 continues to look like a great time to invest in a new home. Contact your trusted real estate professional to discuss these issues and how they might affect your local area and personal financial situation.

 

What’s Ahead For Mortgage Rates This Week – February 19th, 2019

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What’s Ahead For Mortgage Rates This Week – February 19th, 2019Last week’s economic reports included readings on the Consumer Price Index, Core CPI, Retail Sales and Retail Sales excluding autos. The University of Michigan also released its Consumer Sentiment Index. Weekly readings for mortgage rates and first-time jobless claims were also released.

Retail Sales Slip in December, Inflation Holds Steady

December retail sales were 1.20 percent lower in December; analysts expected no growth as compared to November’s retail sales growth of 0.10 percent. Readings for retail sales excluding the automotive sector were also lower in December with a negative reading of -1.80 percent. Analysts expected a negative reading of -0.10 percent.

November’s reading of -0.20 percent. December’s reading for retail sales was the lowest since September 2009, which was a few months after the Great Recession ended.

Retail Sales excluding Autos also had a negative reading of -1.80 percent; Analysts expected a reading of -0.10 percent based on November’s reading of -0.20 percent. Retailers traditionally rely on December’s holiday season to cover sales shortfalls throughout the year, but the government shutdown and fears of economic slowing kept shoppers away in December. January’s retail sales reports were delayed by the shutdown according to MarketWatch.

January’s Consumer Price Index was unchanged from December’s reading of 0.00 percent; analysts predicted an increase of 0.10 percent, but inflation stayed flat. Lower gas prices were credited with keeping inflation low; the reading for the Core CPI was positive with a 0.20 percent increase that matched expectations and December’s reading. The Core CPI reading excludes volatile food and energy sectors and did not include lower gas prices.

Mortgage Rates, Lower; New Jobless Claims Rise

Freddie Mac reported the lowest mortgage rates in a year. Rates for a 30-year fixed rate mortgage averaged four basis points lower at 4.37 percent. Rates for 15-year fixed rate mortgages averaged 3.81 percent and were three basis points lower.

The average rate for a 5/1 adjustable rate mortgage also dropped three basis points to 3.88 percent. Discount points averaged 0.40 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 239,000 claims as compared to expectations of 225,000 new claims and the prior week’s reading of 235,000 new claims filed.

The University of Michigan’s Consumer Sentiment Index rose in February rose to 95.5. Analysts expected a reading of 94.00; January’s index reading was 91.20. The increase in consumer sentiment could help boost the housing market as uncertain economic projections can sideline home buyers. Housing markets improved somewhat as supplies of homes rose and buyer demand eased.

What‘s Ahead

This week’s scheduled economic reports include the National Association of Home Builders Housing Market Index, Minutes from the most recent meeting of the Fed’s Federal Open Market Committee and Existing Home Sales reported by the National Association of Realtors®.

Commerce Department reports on housing starts and building permits issued will be delayed according to MarketWatch.

Garage Organization Ideas For Your New Home

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Garage Organization Ideas For Your New HomeNow that you have a beautiful new home with a garage, the fun of organizing can begin. When your garage is well organized, everything is much easier. You can get home projects finished faster, get out the door quicker and better enjoy all your sporting activities.

Here are some tips to organize your new garage. 

Make Use Of The Walls

A lot of homeowners overlook the wall space when organizing the garage. If your garage has exposed studs, this is actually a benefit in terms of storage space. You can easily create shallow shelves in between the studs using 2 x 4 and shelf brackets. Use these shelves to store smaller items that tend to get lost on larger shelves. You can also create an effective space for hanging garden tools. Screw extra large hooks onto the outside edge of one of the 2 x 4s. Hang brooms, rakes and shovels from the hooks.

Utilize The Ceiling

You can also utilize the back area of the ceiling, beyond the area where the garage door stops when it’s raised. Install hanging systems that you can source from a local hardware store. You’ll be able to hang things like bicycles, skis, kayaks and more. Some homeowners even hang small lawnmowers and spreaders during off-season.

Invest In A Workbench

Even if you don’t do carpentry, a garage workbench is a useful part of an organized garage. This is the place where you can do small repairs on household items or add to your garage organizational systems. You’re more likely to repair an item when it’s sitting on your workbench and you have all the needed parts within reach. Install some smaller clear storage drawer units above the workbench to hold screws, nails and nuts and bolts in various sizes.

Hang A Pegboard

A pegboard provides a central place for your garage tools. Hang the pegboard on the wall within reach of your workbench. Outline the spaces on the pegboard for hammers and screwdrivers so they always get put back where they belong.

It’s never fun to have to endlessly search every time you need something from the garage. These garage organization ideas will make your new home and garage even more enjoyable.

Your trusted real estate agent is a great resource for information about organizing and staging your home in a way that will appeal to buyers. If you are interested in putting your home on the market, be sure to set up an appointment as soon as possible.

5 Simple Tips To Make Your Home Showings Easier

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5 Simple Tips To Make Your Home Showings EasierYour real estate agent will likely give you 24 hours’ notice before bringing over interested buyers to see your home. Sometimes eager buyers may request less of an advance, or even ask for a last minute showing.

Since you’re eager to be accommodating, you may agree to consider such requests. Whether you have 24 hours to prepare for a showing or 15 minutes, these tips will make showings easier for your family.

Keep The Family Pet Carrier By The Door

Real estate agents advise not leaving your family pet at home during showings. Make it easy to bring along Fido or Fluffy by keeping their carrier right by the door. You’ll be able to quickly place him in the carrier and carry him out to the car with you.

Use Under-Bed Storage

The one place homebuyers won’t look is under your bed. Equip each bedroom with a large under-bed storage container; get the kind with wheels if possible. When you receive notice of a showing, just place any loose odds and ends, clothing, magazines, etc. into the tote and hide it under the bed. 

Have Extra Laundry Baskets On Hand

Invest in two or three extra laundry baskets and keep them near the door. When you have to leave for a showing, have each family member scour the kitchen and living room for things that are out of place. Fill the baskets and just bring them with you in the car.

Stock The Kitchen With Cleanup Supplies

The kitchen is the biggest challenge with showings. It’s both the place that gets messiest and the room that can sell your home. Get it spotless in a jiffy with popup wipes. Make it a habit to clean the kitchen immediately after meals, including sweeping the floor. Consider using paper plates to dine on while your home is listed. Keep a scented jar candle in the kitchen that you can light to mask odors.

Make The Car Comfortable

Your family will likely take a drive or go to a movie while the house is being shown. Stock it with a few snacks and bottles of water as well as any medication that a family member may need.

These tips will make house showings much easier no matter how large your house is, or how many family members you have. And one day, you just might return to find that you have a great offer on your house!

Your trusted real estate agent is a key partner in your successful home sale! 

3 Ways To Help Your Kids Deal With The Move

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3 Ways To Help Your Kids Deal With The MoveKids of all ages often have a hard time dealing with moving. They may not be able to understand why the family can’t stay in the same place forever. Even with explanations, children often can’t readily envision how amazing the new place will be.

Here are some ideas for helping your kids deal with the move.

1. Make It Easy To Stay In Touch

For a lot of kids, a big sore spot with moving is having to say goodbye to friends and schoolmates. They may even feel like you’re intentionally wresting them away from their friends. To demonstrate how much you understand the sacrifice, make a gift of a cute set of note cards, stamps included. Even if your child chooses to text or email old friends instead of write, they’ll appreciate your gesture.

2. Visit The New Community

If possible, bring your kids to visit the new neighborhood where you’ll be moving. Encourage positive anticipation by signing them up for things like a library card, pool membership or a community event such as an Easter egg hunt, relay race or something similar. Consider enrolling them in a fun local class such as pottery, horseback riding, or something else they would enjoy. This helps your kids to focus on the upcoming activities instead of leaving their friends behind.

3. Strive To Keep Old Routines

When you’re busy packing and readying for the big move, old routines often fall by the wayside. But children need routines to feel safe. Strive to keep as many old routines as possible in the preliminary days and weeks before the big move. For example, if Wednesday is always family game night, stick to the plan. Your kids will feel more secure knowing that some things will stay the same, even in a new location.

Above all, make the time to listen. Your child might have concerns that you hadn’t thought of, like having to give up their dog or cat in order to move to the new house. Don’t worry, though. Kids tend to adjust very well to new situations. With your support and a few tips like the ones mentioned above, your children will make a happy transition to your new home.

A trusted real estate agent can be a wonderful resource who can point you toward family activities in the area of your new home. Be sure to make contact as soon as you are ready to start your new home search.