by Ashley Hammons | Jan 7, 2019 | Buying & Selling, Buying a Home, Home buying & selling, Homeowner Financial Prep, Income Property, Real Estate, Uncategorized
Did you know there’s more than one way real estate investors find homes? There are a lot of homes for sale in Hunt County and surrounding areas. Most of those homes for sale in Hunt County are found because they are listed by a local real estate agent, placed on the MLS, and syndicated to real estate websites.
But if you’re thinking about becoming an investor, that shouldn’t be your only avenue to find distressed homes. The best deals are not necessarily advertised as homes for sale. Here are a few ways seasoned investors find homes. Usually, investors focus on one or 2 ways and make that their niche.
Trustee sales:
All homes in Hunt County in the foreclosure process must go to the trustee sale according to state law. The trustee must auction off the property on the county courthouse steps. The mortgage holder, usually the bank, place the minimum bid which is the amount of payoff for the mortgage. The bank will then place these homes with an asset manager and sell them with an agent or online auction. The auction on the courthouse steps is your opportunity to purchase the property before it becomes a home for sale in Hunt County! You will only be bidding against other investors as the bank will not place a second bid.
Tax sales:
Tax sales can be quite tricky, but there are a lot of investors who make their money here. You can get homes and land often for 1/2 the price BUT these homes are subject to a redemption period by the homeowner, might have clouds on their titles, and may not be able to have a title policy for 2 years. But if you do your research and team up with a great title company you could make some good money specializing in tax sales. We also recommend having an attorney you trust to look things over to ensure you’re covering your assets!
Auctions:
After a mortgage holder gets a home back from foreclosure they will often list them for sale on auction web sites before listing with an agent to the general public. These homes for sale in Hunt County are placed on these websites with a reserve bid and if it doesn’t sell in the allotted time it will usually get listed by a real estate agent. Here are a couple websites where you could find auction homes for sale in hunt county not yet with an agent HudsonandMarshall.com, Hubzu, HudHomeStore, RealtyTrac, and many many more. In fact, there are HUNDREDS of real estate auction websites.
Driving for dollars:
A lot of newer investors start out driving for dollars to find their first few homes and grow their portfolio. It’s a time-consuming way to find homes. It entails driving the neighborhoods you want to invest in, writing down addresses for homes that look vacant or distressed, getting on your computer and researching ownership, sending a letter, calling, knocking, etc… and trying to reach the owner to see if they want to sell.
Bandit signs:
Do you ever see those signs on the side of the road saying “we buy houses”? Those are called bandit signs and a lot of wholesalers use this technique to get the phone ringing. The signs are cheap and if you put out 100’s or 1000’s out in your target neighborhood just one home purchased could be worth the time and investment.
Using a Realtor is still the number one way to find homes for sale in Hunt County, even for investors, according to the National Association of Realtors. These are just a few examples of how to find homes for sale in Hunt County that are distressed and ready for an investor that may not have made their way to the MLS just yet.
by Ashley Hammons | Apr 5, 2018 | Uncategorized
Home Buying Process
Buying a home might seem like a huge undertaking. It’s not something you do every day, so
you might not know what to expect. Most buyers don’t. Learning the home buying process can
take the mystery out of buying a new home and allow you to approach each step with
confidence.
1. Identify your real estate agent and mortgage broker; these professionals will be your
guides though the process
2. Get a loan pre-approval; learn your budget and terms
3. Go house-hunting
4. Negotiate the price and terms
5. Enter the contract period and place a deposit
6. Perform home inspections
7. Receive the appraisal and obtain final loan approval
8. Review all information and remove contingencies if satisfied
9. Close on the new home
As you can see, buying a home is really a series of small decisions. As long as you continue to
find the information you receive acceptable, you will move through the process towards the
close. If not…then you will cancel and start over with another property. Buying a home is
exciting and understanding the process can help you avoid unnecessary stress.
by Ashley Hammons | Apr 3, 2018 | Uncategorized
The Difference between a Short Sale and a Foreclosure
Fortunately we are starting to see less distressed properties for sale in most markets across the board. Distressed properties are defined as homes whose owners cannot maintain them. Typically these properties suffer from neglect and are in poor condition.
Distressed homes statistics are different in every market. Our local market, Dallas, Fort Worth, has seen a slight decrease in the number of these homes available on the market. Often buyers are confused about the common terms used; short sale, foreclosure, distressed are all terms found in listings and can be confusing.
First of all, the term “distressed” is a catchall term for any property that is not being sold in a more traditional manner. It certainly includes both short sales and foreclosures, but can also be used to describe a severely damage property which might not be able to obtain conventional financing due to lack of livability.
Short Sale
A short sale is a home where the seller owes more than the home is worth and is asking their mortgage holder to accept less than they owe in the sale. The purchase price must have their lender approval.
Foreclosure
A foreclosure is a home which was lost by the previous owner and is now being offered for sale by the bank that held the old mortgage note.
by Ashley Hammons | Apr 2, 2018 | Uncategorized
One of the most common real estate investment transactions is the 1031 Exchange. Simply
put, a 1031 Exchange (also called a “like-kind” exchange) is the swap of one investment asset
for another which defers capital gains taxes on profits.
A like-kind asset refers to selling one class of investment for a similar type of asset. For
example, an investor currently holds several multi-family properties, such as duplexes, and
wishes to sell them all in order to purchase a larger multi-family property, such as an
apartment complex. This would qualify as a like-kind exchange.
There are specific IRS rules which must be carefully adhered to in order to qualify for the
deferred capital gains tax. The sale must take place through an intermediary. Title companies
are one such option and when coupled with the use of a real estate agent, the easiest. The
new asset must also be identified within 45 days of the sale of the current asset and the sale
must conclude within 180 days. Finally, the asset must be held for over 1 year before it is
eligible for use in a 1031 exchange.
Serious investors use the 1031 exchange to buy and sell assets as new opportunities present
themselves, while shielding themselves from immediate capital gains liability.
by Ashley Hammons | Mar 30, 2018 | Uncategorized
Greenville home for sale
Inventory Is Low?
You’ve heard the rumors; it’s a “Seller’s Market.” Well if you are actively
searching for a new home, you know that it’s true. The low inventory of homes
for sale has made things difficult for buyers. There just aren’t many homes for
sale out there and when a nice listing does come to market, it’s met with multiple
offers…..often with offer prices over asking.
If you’re a buyer in this market, you might feel overwhelmed but remember that
with a solid strategy, you can still find your dream home, even when inventory is
low.
The highest offer price in the world is worthless if the transaction doesn’t close.
Here are a few tips for buyers looking in a tight market:
• Talk to a lender before you shop so you’re prepared
• Be prepared to pull the trigger
• Write a competitive offer
• Keep contingencies to a minimum
• Write a clean offer; Make it easy for the sellers to just say yes
When inventory is low, it’s each to feel like the best homes are already gone, but
by working with your agent, you can put yourself in the best position to have your
offer accepted.
by Ashley Hammons | Mar 29, 2018 | Uncategorized
It’s never too late to begin investing in real estate…..it’s never too early either. Real estate offers a solid investment opportunity which can provide not only an income stream but long
term value appreciation as well. Regardless of the ups and downs of the market, people will always need housing, so real estate will remain a good way to create wealth.
By understanding some of the basics of real estate investing, you can begin to create your own plan. Here are 5 tips for first time real estate investors.
1. Use Leverage – . Learn about options other than your own savings for these costs.
2. Budget for the Unexpected – Have a fund available to draw on for the unexpected. Even the most carefully planned project can have unexpected costs.
3. Invest for the Long Term – Real estate investing should not be viewed as a “get rich quick” scheme.
4. Don’t Over Extend – After evaluating the risk, be honest about your ability to handle the negative possibilities the opportunity could present.
5. Be Patient – Wait for the right opportunity.
Real estate offers solid investment opportunities. A first time investor can realize profit and
positive cash flow with careful planning and research.
by Ashley Hammons | Mar 27, 2018 | Uncategorized
Why Millionaires Love Real Estate
Serious investors already know the value of a diversified portfolio. In addition to stocks and bonds, real estate should be included in your investment mix. One way to accomplish this is to purchase, hold, rent or flip actual physical property, as part of your investment strategy. Real estate is a solid asset which can provide annual income, asset appreciation and/or quick profit. Millionaires understand the value of real estate and how it can be used to increase wealth and as a hedge against the volatility of other investments, such as stocks and bonds. Real estate holdings can provide immediate and long-term benefits:
• Cash Flow – Rental income is one of the primary reasons investors purchase property.
• Asset Appreciation – Property value appreciation is another advantage of investment
property. While rents pay the mortgage and ownership costs, property values are on the
rise, increasing the asset worth.
• Fast Capital – Buy and flip properties are a great way to quickly add capital to your
portfolio.
Those who understand wealth-building strategies know the value of real estate as a part of a
balanced investment portfolio. Along with short-term opportunities, real estate can offer an
asset with cash flow and appreciation, unlike the volatile stock and bond markets.
by Ashley Hammons | Nov 11, 2017 | Selling your home
YOU ONLY HAVE 10-SECONDS TO IMPRESS A HOME BUYER!
No matter how great the interior of your home looks, buyers have already judged your home before they walked through the door. Potential buyers will form opinions before entering your home. And you never have a second chance to make a first impression. You can test this out by looking through our current list of Greenville homes for sale. Pay attention to your own impressions based only on the first picture. Curb appeal is very important!
How To Make A Great First Impression with Curb Appeal
It’s important to make people feel welcome and safe as they approach the house. The second a potential homebuyer pulls into the driveway the clock starts ticking. Before that happens take some time to spruce up your home’s exterior. Take notes on which part of your house is visible as you are pulling into your street and as you pull into the driveway. There are many ways to pump up your home’s curb appeal. For example, inexpensive shrubs and brightly colored flowers near the front door will help draw the eyes right where you want them to focus.
We all know the importance of having a clean home when trying to sell, but many people forget that this rule extends to the exterior as well. Power washing the outside of your home is a sure-fire way to boost your curb appeal. It will take off any dirt and grime on the siding and windows leaving everything clean and shiny. The before and after of a power washed home is shocking, it really makes a difference. When a potential buyer pulls up to a clean house with sparkling clean windows, they know the current owner has pride in ownership. Pay attention to the smaller details as well when cleaning up outside.
- Make sure the sidewalks in front, the driveway, and walkway entering the home are all well swept, or power washed.
- Taking an edger or weed Wacker around the perimeter of your front lawn will do wonders too.
- Remove any yard debris that may be collecting in corners around the home perimeter or fence line.
- Inspect the paint on the exterior of your home and touch up any weathered or dull areas.
Last but not least the front door, the cherry on top of your home’s curb appeal is the front door, so dress it up a little. Take the time to really clean the screen door if you have one, especially if the door has any glass. Clean the glass inside and out for a lasting impression when they walk in and when they walk out. Use a brightly colored wreath or welcoming plaque to stand out in a sea of homes for sale. Aside from location and specific details in the home, the homebuyer’s decision will be heavily determined by the look and feel they get from that first 10-second impression. So, make it count!
by Ashley Hammons | Nov 10, 2017 | Buying a Home
Do you have a budget? And do you know how to use it?
Owning your own place comes with a slew of new expenses. So good money-management skills are a must-have. If you don’t have a household budget right now, you need to start one. Remember as a renter any maintenance issues that arise are taken care of financially by the landlord. However, when you are a homeowner, on top of your mortgage, insurance, and taxes, are you have to be ready and prepared to take on that financial responsibility. Having a clear understanding of your finances is necessary when you’re considering buying a home. Prior to speaking with a real estate agent, you should make a budget to see how much you can reasonably afford to pay. If you simply cannot afford the increased expenses that come with a house, it’s never a good time to buy, no matter what’s going on in the real-estate market.
Have you been saving? Do you have a down payment?
When buying a home you will have to get a loan and with getting a loan you will have closing costs and the down payment. You will have to come up with money up front, unlike renting where the deposit is minimal. Down payment amounts vary based on the type of loan you’re offered but remember that the more you put down, the lower your mortgage payments will be!
Do you have a backup or emergency fund?
Before you devote all your savings to a down payment, closing fees, and home upkeep, you need to take a look at the bigger picture. You need to build up your savings in case of financial setbacks that could cost big, like unexpected unemployment or serious illness.
Always remember it’s not just money that should affect your decision to buy a home…..
Happy house hunting! Please feel free to comment any of your questions.
by Ashley Hammons | Nov 8, 2017 | MLS
One of the perks of using a realtor in Greenville, Texas, is the syndication process our MLS uses! Take a look at the image below showing just some of the MLS home listings your home will be on when working with me.
