Sunrise Homes & Renovations, Inc.

What Are The Different Types Of Investment Properties You Can Purchase?

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What Are The Different Types Of Investment Properties You Can Purchase? If you are looking for a way to diversify your investment portfolio, there are different options available. One option is to invest in real estate. With so many different choices, how can you select the right one for your needs? There are a few key points to keep in mind.

A Single-Family Home

One of the first options you might be considering is a single-family home. This is a versatile option that you can use to host long-term renters or vacation visitors. Single-family homes come in many shapes and sizes, but the variation can also make it a bit of a challenge. You need to think about landscape maintenance, potential repairs, and real estate taxes. Single-family homes can also be expensive, so they might require more upfront cash to purchase.

A Duplex

Another option you might want to consider is a duplex. A duplex is a house that is essentially divided into two parts. This option provides a number of advantages. You could potentially live in one side of the house and rent out the other, possible covering your mortgage, if you are comfortable living near your renters. Furthermore, living close to the renters could make it easier for you to manage the property. Because you could live in one side of the house, this option could be more affordable.

A Condo

In addition, you might be thinking about purchasing a condo as a rental property. A condo could be a nice option because you don’t have to worry about exterior maintenance. There is usually an HOA that is responsible for managing the landscape. The downside is that a condo typically comes with expensive HOA fees that could eat into your profits. Condos come in all shapes and sizes, so you should think carefully about whether this option is right for you.

Find The Right Investment Property For Your Needs

If you are thinking about purchasing a rental property, these are a few of the top options available. Each choice has its benefits and drawbacks, and you need to think carefully about which one is right for your style. If you have questions about investment properties, you should reach out to an expert who can help you.

4 Mistakes That Plague First-Time Home Sellers and How to Avoid Making Them

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4 Mistakes That Plague First-Time Home Sellers and How to Avoid Making ThemAre you thinking about selling your home? If this is your first time going through the selling process, you may be wondering just how well things are going to go. Selling a home is usually a smooth process – there are thousands sold each day – but issues can arise if you’re not careful. Let’s explore four mistakes that are commonly made by first-time home sellers and how you can avoid them.

Trying To Sell Without Experienced Representation

The first and most significant mistake that some first-time sellers make is to try to go it alone. Selling a house is a major financial and legal transaction and one where experience is crucial in getting things right. Invest in an agent who has a track record of quick, efficient sales and you’re going to have an advantage.

Choosing Emotion Over Reason

Next, you’ll want to avoid letting your emotions control how you react or respond during the selling process. Many homeowners become emotionally attached to their homes, which is fine while you’re living there but can be a problem when you’re selling. It’s important to let logic and reason guide the sale. Don’t let yourself get caught up emotionally or you may make a critical mistake.

Pricing Outside Of A Realistic Range

Asking too much – or too little! – for their home is another common mistake made by first-time home sellers. It’s critical to understand that the local real estate market has a lot of influence on the correct asking price for your home. Current listings and recent sales of similar homes in the area tend to set a price range in the minds of buyers so these will need to be observed. Your real estate agent will be a big help in choosing the right sale price.

Selling At The Wrong Time

The final mistake we’ll cover today is listing your home for sale in the wrong environment. The local real estate market is in a constant state of change due to a variety of factors. The seasons, other local home listings, interest rates, new home construction, local municipal zoning changes and all sorts of other factors can influence your sale. Unless you are under a time constraint, it’s best to let your agent advise you when it’s a good time to list your home.

Selling your first home can be a daunting experience, but with the right frame of mind and professional representation, it will go smoothly. To learn more about the home selling process or to list your home for sale, contact us today. We are happy to assist you.

Downsizing? Here’s What You Can Expect When You Move From a House to a Condo

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Downsizing? Here's What You Can Expect When You Move From a House to a CondoWhether the kids have moved out or you just aren’t using the extra bedrooms, having a house that feels ‘too big’ is rarely fun. In today’s post, we will share a few changes you can expect when you downsize from a large house to a smaller apartment or condo.

Why Downsize At All?

As you might imagine, having too much space is the primary reason that couples and families downsize. Larger homes cost more to maintain and can feel empty if it’s just one or two people living there. In many cases, old items and clutter tend to build up as there is so much storage space. Downsizing to a smaller home helps to maintain a lifestyle that is more efficient but no less luxurious.

Ask Yourself: Are You Ready?

Another consideration that you will need to make: are you ready to move? If you are retired from work, then you likely have enough time on your hands to manage a move. Conversely, if you and your spouse are both working full-time and live near your workplace, you may want to source a smaller home nearby.

Don’t forget that if you own the house you are living in now, this might mean having to list and sell it while buying your new home. This is a common situation and isn’t a significant problem, but it will require a bit of scheduling and financial planning.

The Hardest Part: Choosing What To Keep

Ask any couple or family that has downsized their home about the toughest part, and many will share that it was choosing what stays and what goes. When space is at a premium, everything from shoes to appliances needs to be considered.

Spend some time going through each room in your house, taking an inventory of what you have. Are there any family heirlooms or other emotional items that you can’t part ways with? After that, is there anything that will be usable in your new home? Everything else should be considered fair game. Sell it, donate it or toss it out.

Moving to a smaller home can seem challenging at first, but it is a lifestyle choice that can pay significant dividends. When you are ready to make a move, contact our professional real estate team. After discussing your wants and needs, we will be happy to recommend some perfect local listings.

What Are the True Costs of Selling a Home? Let’s Take a Look

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What Are the True Costs of Selling a Home? Let's Take a LookAre you thinking about selling your house? Before you decide to list your home up for sale, it is helpful to get a clear picture of how much it’s going to cost. Whether you are sprucing things up with a fresh coat of paint, replacing the roof membrane or just covering your taxes, there will be a few bills to pay. Let’s take a quick look at some of the true costs that you’ll incur when selling your home.

Is Your Home Ready To Sell?

The first question you will need to answer is whether or not your home is ready to sell. Unless your house is relatively new, it will likely need repairs and maintenance. Depending on the age and condition of your home, you may also decide to invest in a full home inspection. Having a professional inspector look things over is a good investment – especially if they find problem areas that require immediate attention.

Invest In A Good Real Estate Agent (And Their Commission)

To get the best price for your home, you will need to be represented by a great real estate agent. Of course, they are not going to work for free. Once the home sells, the agent is compensated with a percentage of the sale price, which is known as a commission. In some cases, the home seller also pays the commission for the buyer’s real estate agent as well.

Factor In Costs During The Sales Process

The selling process will also have its costs. From lawyers’ fees to excise taxes, there is no shortage of small costs that can start to add up. You may decide to invest a bit in your open houses in order to make them more welcoming. Or you might need to close out your mortgage. Whatever the case, be sure to leave some space in your budget for these costs.

Moving Out Will Cost You Too

Finally, don’t forget to factor in the cost of moving to your new home. Many families fail to budget for moving expenses, which can be significant if you are moving out of a large home with a lot of furniture.

As you can see, selling a home is a major financial transaction and one that should be led by an experienced professional. When you are ready to begin the process of selling your home, give us a call. Your trusted real estate professional can advise you of local market conditions and ensure that you receive top dollar when you sell.

A Non-QM Mortgage: What Does This Mean?

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A Non-QM Mortgage: What Does This Mean?If you are interested in purchasing a house, you need to review all of the offers available. The vast majority of loan officers are going to talk about something called qualifying mortgages, which is usually shortened to QM. You may be asking, what is a non-qualifying mortgage? This is usually shortened to Non-QM, and it simply means that the loan does not conform with the rules and regulations put in place by the Consumer Financial Protection Bureau, usually shortened to CFPB. What are the differences between a QM and Non-QM mortgage, and which one is right for your needs?

A Qualified Mortgage Generally Provides More Protection

In general, a qualified mortgage (QM) typically provides you with a greater degree of protection. The loan has to conform to certain standards. This means that the loan cannot last longer than 30 years, there cannot be any prepayment penalties, it cannot be a balloon loan, and it should not have any negative amortization features. At the same time, qualifying for a QM mortgage can be more difficult, as lenders have to follow all of the rules and regulations set forth by the government. This includes verifying bank statements, income, W2s, and numerous other examples of documentation.

A Non-QM Mortgage May Provide More Flexibility

You may want to take a look at Non-QM mortgages because they might offer more flexibility. These are very useful for gig workers that do not qualify for QM loans. Another reason is, you might want to lengthen the loan term to 40 years. Or, you might be interested in a loan that only requires you to pay interest, particularly if you are a real estate investor. This is also an option available to foreign nationals who would like to buy property in the United States. On the other hand, you should talk to a professional who can review the risks of a Non-QM mortgage as well.

Find The Best Loan Option For Your Needs

Ultimately, it is critical to review the benefits and drawbacks of each option before you make a decision. The right loan for one person might not necessarily be the right loan for you. If you talk to an expert, you can review all of the options available and put yourself in the best position possible to qualify for a home loan. 

 

Let’s Talk Buyer Qualification: How to Ensure You Sell Your Home to the Right Buyer

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Let's Talk Buyer Qualification: How to Ensure You Sell Your Home to the Right BuyerAre you listing your home for sale? If so, it is time to get ready to meet with buyers and their real estate agents. And while you surely want to sell your home as quickly as possible, you will also want to do your homework to make sure you’re selling to the right person. Let’s explore the process of buyer qualification and why it’s important to do a little digging into potential buyers of your home.

Is Your Buyer Pre-Approved For Mortgage Financing?

First, you’ll want to check with your buyer to see if they are approved for mortgage financing. The last thing you want is to agree to an offer only to have the buyer rescind it because they can’t afford your home. If the buyer is not already approved, suggest that they take that additional step before submitting their offer. Otherwise, you may end up experiencing significant delays in the closing process.

Ensure Your Buyer Has Their Earnest Money Ready

Next, you’ll want to check with your buyer to make sure that they have their earnest money ready. These funds are a deposit, typically one or two percent of the purchase price, which is held in escrow once you accept the buyer’s offer. Earnest money is a way for the buyer to prove to you that they are serious about purchasing your home. Once they have placed the deposit down, you can be confident that the buyer intends to close.

Note that the terms of your agreement should ensure that if the buyer backs out of the deal, you get to keep some or all of their earnest money. This is especially important if you’re fielding multiple offers for your home as you may lose the chance to sell if the buyer backs out.

Be Wary Of Offers That Seem Too Good To Be True

If an offer seems too good to be true, that may just be the case. Be wary of any offers that are significantly more than your asking price, or if the buyer is willing to buy your home without so much as an inspection. Rest assured that any serious buyer is going to do their due diligence to ensure they’re getting a good deal.

Buyer qualification is a bit of a process, but it’s an important step that ensures your home sale goes smoothly. When you’re ready to list your home for sale, contact your local real estate professional. We will be happy to assist you with finding the right buyer.