Category Archives for Home Ownership

Why For Sale By Owner Is A Bad Idea

If you’re trying to sell your property yourself to a retail buyer, you’re in for a challenging ride.

When you choose to go the For Sale By Owner route it’s likely you’ll encounter a few (if not all) of these issues:

The Long Wait

It’s often the case that you won’t be able to finance another house before you sell the one you’re in. But when you sell retail, it takes time to find the right buyer. So you’re essentially stuck in limbo until the perfect buyer comes along.

Major Repairs

Retail buyers are picky when they’re looking for their next home. That means, if you want to sell your house, the repairs and upgrades are left to you to do. It can take weeks or months, and cause significant headaches. But, when you sell to an investor, you won’t have to do any of those repairs.

Open houses, Advertising, and Taking Calls

It’s your responsibility to bring the buyer to you, which means that you’re the marketing director for your house sale. You’ll have lots of people looking, and much fewer buying. It’s a total time waster, and an unnecessary one.

Paying Two Mortgages

You think you’ll find someone to buy your house quickly, but in reality it usually takes at least 3-6 months, and that’s if the buyer qualifies for the loan. So many traditional sales fall through because of financing. If you had to relocate for a job and you’re stuck paying two mortgages, that can become a huge financial burden, and fast.

Finding the CASH to catch up up on house payments, or back taxes.

If you owe any money or have any liens on your house, you will not be able to sell to a retail buyer, but you could sell to an investor.

As investors we can save you from all the frustrations above. We’re fair, fast, and knowledgeable. We’ll take the frustration and the fear out of selling your property. Contact us today for a quote.

Hidden Savings Secrets

Today’s interest rates are at their lowest levels. Home prices are more affordable today than they were in the entire past decade.

Owning a home is often less expensive than renting – even without looking at the biggest hidden secret to savings.

In fact, tax savings and benefits are often unknown to new and prospective home owners. Let me explain. When you pay mortgage interest on your primary residence rather than rent, you get to deduct these expenses on your tax return.

Claim More Exemptions Immediately

But not only that! Even as you move in to your own home, you get to claim more exemptions with your employer immediately. That means you will see an immediate increase in your monthly take-home pay, because less tax will be withheld from your monthly paycheck.

If you account properly for the tax savings, owning a home can cost up to 30% less than renting, and sometimes your savings can be even greater.

It Makes Sense to Own

The “Power of Ownership” and being able to do what you want in your own home without having to ask your landlord are just two great benefits. Add to that the actual savings through tax benefits, principal pay-down and low interest rates, and you will agree that it does not make sense to keep renting.

If you are still thinking that you can’t afford to own because you have been turned down for financing before, start the easy home ownership process with Eagle Home Buyers right now!

Knowledge is power and that is what we bring to you. Our program is specifically designed for you, because we believe in you and believe that you have a right to own.

Our job is to show you how put that plan in action.

Why Renting to Own is a Smart Choice Today

Like all great agreements, renting to own is beneficial to both the seller and the buyer.

But, let’s take a look at the advantages for you as the buyer.

In a rent to own agreement, you, as the buyer, freeze the price on the home for a year or two in advance of when you’ve agreed to close on the purchase. Since most markets appreciate, you’re locking in a good deal with built in equity.

During your time as a tenant buyer, you’re making payments that contribute toward the down payment of the sales price. It’s like a built in savings account that you cannot touch.

You also have the ability to test drive the house, the neighborhood, the school system, etc, prior to buying. If it turns out you were wrong about the whole thing, renting to own is a lot less expensive than purchasing the house outright and finding out you’re stuck with it later.

The extended closing date allows you the time to clear up any credit issues, save down payment money, and get pre-qualified for a loan. When you meet with a mortgage broker you’ll understand the amount of debt you can shoulder each month and still be approved for a loan. You’ll also discuss down payments and loan types, making you a well informed future borrower.

Essentially, renting to own gives you the time to get your finances in order while you’re living in your dream home.

If you’re ready to see how this could work for you, contact us and we’ll answer all your questions.

What You Need to Know About Buying A Foreclosure

Foreclosures can be home run investments, but, if you don’t do your due diligence, they can just as easily be the investment you regret.

First, consider the source.

Today there are tons of online resources for foreclosure lists, but they are not all made equal. You want to make sure that the list you’re using (especially if you’re paying for it) isn’t an old list. All foreclosures are public record, and if it’s public knowledge for some time, then you’ll be far down on the list of letters those owners will be receiving.

The courthouse records will always be the most accurate, but if you don’t want to spend your days thumbing through records, find an online resource who provides you with fresh lists.

You want to the be first one in the door, and the last one to leave.

Next, know what you’re looking for.

Sure, a property can look like a great deal from the initial number, but it could just as easily be a dud. Knowing your criteria means you won’t invest in a property that’s not a fit for you.

Not every property’s going to be a fit, so don’t be blinded by what looks like a screaming deal, when, in fact, it’s not a deal for you.

Finally, investigate.

When you find a property that matches your criteria on paper, we highly suggest you go take a look at the house, especially if you don’t have a lot of experience buying foreclosure properties.

Although you might not be able to get inside, you’ll want to get a feel for the area, the neighborhood, and you can get a good idea of the property’s condition just by checking out the exterior.

It also helps to know the history of the foreclosure – how long has it been sitting, how long were the occupants behind. This information will give you another glimpse into how the property may have been treated.

And always overestimate the repairs, especially with a foreclosure.

People who aren’t paying their mortgage, aren’t keeping up the property either.

Foreclosures can be great investments, as long as you walk into them with eyes wide open.

How to Spot A Real Deal

When it comes to real estate, how can you differentiate the deals from the REAL deals – you know, the one’s that graduate you from dabbler, to legitimate investor?

Here’s the thing, successful investors have one thing in common; they don’t buy everything that comes across their desk.

They shop for the deal that makes sense to them.

See, the secret is there’s no single definition of a real deal. A real deal is completely subjective.

There are two parts to determining if you’ve got a great deal in front of you.

First is, know your criteria.

You’ve got to define the standards of your great deal.

There are four questions you must ask yourself:

  1. Am I looking for lump sum or cash flow? This will greatly affect your purchase price and deal type.
  2. Why type of property do I want? Are you looking for commercial, single family, duplex? You’ve got to know.
  3. Where am I looking? Don’t say anywhere. Narrow your hunt down to specific areas; you’ll be more successful that way.
  4. What am I willing to pay? You need to know your price, and stick to it.

You need to write down the answers to those questions and have them on your desk at all times. Then, when something comes across your desk, you’ll know if it’s a deal for you.

It’s easy to stray from your standards and chase shiny deals around if you don’t have your criteria cemented in your mind.

Another secret we’ll let you in on, great investors always master one deal type at a time. Focus, master, repeat.

The second part to finding a great deal is know your terms.

Your terms could be an specific dollar amount you need to make, or a percentage, or a time frame.

For example, maybe you only do flips where you profit a minimum of $30,000, or maybe you need a 18% return on your money and to be out of the deal in 90 days.

When you know your terms, you can better evaluate your deal. If it doesn’t meet your terms, then it’s not a deal for you.

Solid criteria and terms are what separates the buyers from the shoppers, the dabblers from the pros.

Don’t be a dabbler, don’t gamble with real estate. Gamblers tend to lose. Know your parameters and stick within them.

Not only do they keep you focused and make it easy to spot a deal when you do see it, they set you up for success in a way that most people never achieve.

Two Truths About Closing Deals

Obviously everything we do as investors is geared towards closing deals. It’s obvious because if a deal doesn’t close, the money isn’t made.

So we’ve got to close deals right?

Right.

But here’s one insight that, if you pay attention, will save you much grief.

When it comes to closing a deal there’s no magic bullet, there’s no perfect script. No deal is ever the same because, in real estate, you’re dancing with people, and everybody is unique.

So the two truths that you must understand when you enter into negotiations are these:

Not every prospect is going to result in a deal.

In fact most properties under negotiations won’t turn into deals. So accept it, and don’t make the mistake of trying to turn a jalopy into a Ferrari. It’s not going to happen, you will lose.

If the seller is not motivated enough, it’s not a deal.

The seller’s motivation is the one thing that will make or break your deal. If they’re not motivated, you’re paying full price, and paying full price is not recommended in this game (if your entire investment strategy depends on appreciation, you’re gambling, don’t do that).

So, if there’s no motivation, there’s no deal. It’s simple, it’s straightforward, and it’s the truth.

When you understand and accept the fact that most prospects will not be deals, and that every deal is a directly tied to the seller’s motivation, you’ll save yourself a lot of future frustration.

Obviously these truths are imperative when you’re going about doing all the groundwork yourself. But here we do the heavy lifting for you – no jalopies, and high motivation. Contact us today to get priority access to the properties we have available.

How To Sell Your House Faster

There’s the traditional route of selling your house with a realtor, and there’s the fast route. Which do you want to take? If you really want to sell your house, avoid realtor commissions, get a fair all-cash offer, and have a variety of creative selling ideas, working with a real estate investor is the path of least resistance.

A realtor’s fee is in essence a marketing fee. You’re paying them to advertise and walk buyers through your property, but when you deal with the buyer direct, you get to pocket that 6% of the sale, not to mention saving significant time.

Maybe you don’t have time to let your house sit on the market for months, entertain insincere buyers, and fall out of escrow multiple times because the financing didn’t come through. When you sell traditionally, you rely on a lot of moving parts to sync up, and quite often, they don’t.

When you work with a real estate investor, you’re working with a professional who does this for a living. They typically don’t use traditional financing, and will often make you a cash offer.

Working with a realtor can take months for the sale of your house to close. The fastest typical closing is 30 days, but an investor can typically close in 7-10 days.

How relieved would you feel if you knew your house was going to be sold in a week?

Investors simplify the selling process for you, at no cost to you.

Real estate investors know the market just as well, if not better, than the realtors in the same area. They can and will give you a fair assessment of your home value, with the research and comparables to back it up.

Most investors will give you a couple offers to choose from: an all cash offer, and a terms offer. Traditional buyers are often limited to conventional financing.

An investor’s ability to creatively finance a property means that you get the money you want from the sale of your house, quickly, easily, and effortlessly. When you cut out the middleman, (realtors and banks) the process hums along smoothly. It’s the difference between walking outside and pulling a carrot from your garden, and driving to the store to buy one. Which is easier? Which do you prefer?

You don’t have to hire a home inspector. A lot of investors don’t have a home inspection contingency in their contract. In fact, most of the contingencies are waived – inspection and financing being the two top deal breakers.

You can avoid the hassle of advertising the sale of your home yourself, or paying a realtor to do it for you. Those for sale by owner signs are magnets for the inexperienced and non-serious homebuyer.

Imagine, not having to make a single repair either? Often times the condition of your home is of no consequence to the investor, whereas if you are trying to sell your property to a retail buyer the potential repairs would be overwhelming enough to kill the sale. Retail buyers don’t want to fix houses, but a real estate investor’s job is to fix houses.

Also, contrary to popular belief, most investors are willing and want to help you understand the buying and selling process. They’re in the know, and they want you to be as comfortable as possible during the process.

Investors understand that you don’t have time to idle around waiting for your house to sell. They’ll give you honest answers about the price and potential deal structure that will make the most sense for your situation.

Selling your house doesn’t have to be hard. It doesn’t have to be confusing, frustrating, or a waiting game. Release the stress and get the help you deserve by working with a professional buyer who does this every day.

If you need help or an honest assessment on the sale of your house, feel free to contact us. We will make you an offer within 48 hours.

5 Things To Expect When Meeting with An Investor

Most sellers are used to dealing with realtors but have never had an exchange with a real estate investor.

We’re going to take some of the mystery out of that for you today.

When an investor in interested in your property, they’ll want come see it. It’s best if you’re there to meet with them.

Here are 5 things you can expect when they meet you at the property.

They’ll ask for a tour of the property.
You’ll find a place to sit and discuss the sale of the property.
They’ll likely ask you questions about why you’re selling your home and what you’re hoping to get from it. They might even give you a standard questionnaire to fill out.
They’re going to ask you about the sales price.
Then they’ll discuss the terms of the sale. Now, investors have a lot of flexibility when it comes to structuring deals because most of them don’t work through traditional bank loans. Because of that you might hear options that you didn’t know were possible or available to you.

The beauty of working with an investor is you have creative options to get to your desired solution. An investor is usually the best (and only) person to present them to you.

If you’re looking for quick and creative solutions to the sale of your property, contact us today.

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