There are endless tips and tricks out there claiming to help make your property look attractive. But when you need a quick, effective boost before viewers start rolling in, consider this: how does your property smell?
For 2018, the real estate market in most parts of the country saw significant, sustained growth. Some cities even experienced double-digit appreciation with houses selling well over asking price.
While owning property can certainly be lucrative, it comes with a lot of potential downfalls too. What if your apartment complex needs a new roof? Will that office building require more management than you have time for?
Fixing and flipping a house is always an exciting prospect. If the property you’re buying requires a lot of attention, it’s easy to get stuck into projects that waste your time and money. Fortunately, knowing a little more about what not to upgrade during your fix and flip will ensure you stay on track for making a profit.
In the early and mid-2000s, mortgage lenders were handing out loans without the notion that they would ever be successfully paid in full. This, along with other factors, created the mortgage crisis that followed. In response to the crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act allowed the Consumer Financial Protection Bureau (CFPB) to implement new rules to protect consumers who are borrowing money to purchase a home. One of those rules was the Ability to Repay requirement for closed-end residential mortgage loans.
Over the years, First Capital Trust Deeds has received this question, “How much down payment is required to flip a house with a hard money loan?” This blog post answers that question for the first-time house flipper and the experienced house flipper who has done 10+ projects.
Hard money loans, also known as private money loans, are most commonly 6-24 month bridge loans used by real estate investors for fix and flip projects or the acquisition of investment properties. These loans are mostly issued by individual trust deed investors, family offices, or pooled investment funds operating as a lender. This article answers the question, “What is a hard money loan?” and in addition to answering that question, it provides the advantages and disadvantages real estate investors experience when utilizing hard money loans to finance properties.
Some private lenders use a method of interest accrual known as “Dutch interest” for a hard money construction loan which calculates payments based upon the entire loan amount rather than payments on partial advancements in a construction loan.
First Capital Trust Deeds works with a few hard money lenders in California, Oregon, Washington, and Florida that use Dutch interest. Most construction focused loans originated by FCTD, however, feature “New York interest”, where interest accrues on construction reimbursement advances rather than on the entire loan.
Buying a luxury home is quite unlike purchasing a conventional property. From the location to square footage, you’re paying for a premium, high-end asset. However, just because you’re purchasing a luxury property doesn’t mean you want to offer a large down payment—or perhaps you don’t have the free capital to do so.
Following the biggest economic crisis of the 21st century, federal and state regulators tightened the laws around mortgage lending. In response to a crash that largely due to activities in subprime lending, the government introduced the Ability to Repay rule. In short, this rule sets strict criteria outlining who is likely to repay a mortgage successfully. Those individuals then qualify for a loan called a qualified mortgage (QM).
