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Down Payment Assistance Grants Available

Source: El Paso County, Colorado • Single Family Mortgage Bond Program

Be it your first or your last, buying a home is no small accomplishment. And when you're a first timer, there's so much to learn and so little time, since your lease is expiring and/or you've suddenly realized you'd rather not commit another year of mullah to pay for someone else's mortgage/retirement plan.

Though a tad more difficult to qualify for than the subprime days of yesteryear, for those with verifiable income, relatively stable employment and a decent (not necessarily excellent) credit score, today's borrowing environment is full of unprecedented opportunity.

Here's how.

  1. Market values are climbing, which might mean we have come out of the down cycle. Consequently, barring another economic collapse of course, prices will continue to rise for the next 8 - 11 years of our current real estate economic cycle*.
    1. Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
      1. OK. So, the $100,000 house you just bought appreciates at 20%. In theory, this means the house will be worth about $120,000 year 2, $144,000 year 3,  $173,000 year 4 and so on.
  2. With 30 year fixed rate mortgages at about 4% annually, you are able to finance an asset at a lower interest rate than its projected appreciation! This is like your bank charging you less than the federal funds rate. Or like your three-year old used car being worth more today than it did new. You get the point?
  3. Market rents are pretty high and climbing, sometimes more than relative mortgage payments! For example, the Average Rent Price in Colorado Springs is $1,321***, the principal and interest payment for a $276,000 home, which is slightly above the average home price****.
  4. When you're a renter, consider your housing mullah turns into cosmic dust at about the 1st of each month, never to be seen again in this life, as opposed to the pixie dust that happens to homeowners when appreciation (and principal reduction) come together at about the same time, turning their home sweet home into a long term investment, even retirement tool.
  5. Many renters shy away from buying due to the cost, which includes a down payment, closings costs and other fees, all of which can add up. So for a little icing on the cake, consider the El Paso County Down Payment Assistance Grant contributes 4% of the purchase price towards down payment and closing costs.

Of course, there are property taxes, insurance, maintenance and other costs to consider with home ownership but overall, it's generally better to buy than rent, especially in our current environment.

If you're still reading you can go ahead and admit, it's time to buy a home. Conveniently located at the bottom right of this screen, use the contact form to setup your personalized consultation and see how easy it can be when you hire a knowledgeable professional to help.

Do it now, before the sky falls.

* REAL ESTATE CYCLES: THEY EXIST… AND ARE PREDICTABLE http://bit.ly/1q3duZF

** Colorado Appreciation Rates:  http://www.neighborhoodscout.com/co/rates/

*** Colorado Springs Rental Market Summary: http://www.realtor.com/local/Colorado-Springs_CO/rent-prices

**** PPAR Housing Statistics, Average and Median Sales Prices:  http://www.ppar.com/Statistics.aspx


Interest Rate Hike in 2015?

Silhouette of businessmen carrying Interest Rates word uphill

 

 

 

 

 

 

 

 

The U.S. Federal Reserve chairwoman described the central bank's positions in a speech Thursday.

Source: Janet Yellen Expects Interest Rate Hike in 2015

It's not that the sky's falling, but that it's important to illustrate the affect rising interest rates has on home affordability so buyers who are on the fence know the answer to that million dollar question, what is the "perfect time" to buy.

It appears we are in the best of all worlds - the economy has improved, home prices are rising and interest rates are at historic lows. So, why not now? To answer that, let's look at the effect a 1% change in interest rates will have on purchasing power.

According to the Pikes Peak Association of Realtors, the Average Home Price in the Colorado Springs market as of end of month August 2015 was $273,381. With the Average 30 yr Mortgage in the Colorado Springs market currently at 3.91%, amortized over 30 years a monthly payment on this average home is $1,291 per month, not including taxes and insurance. Whereas, a payment for the same house at 4.91% is $1,453, a monthly increase of $162 or $58,165 in added payments over the life of the fully amortized loan. And if affordability is an issue, consider this increase means less house for the money, as the max purchase price becomes $242,973 in this scenario.

Buying a home is no small decision with many factors to consider. However, those who are ready, willing and able to buy might want to consider pulling the trigger sooner than later as, be it in 2015 or later, interest rates will rise. To illustrate its inevitability, this old goat was originating mortgages with interest rates in the mid to high teens back in the 90's. Yes, before smart phones.

Interested in buying or selling a home? Use the form to the right to contact us for a no cost, no obligation consultation. We look forward to serving you!


Is Qualifying for a Mortgage Getting Easier?

There has been a lot of talk about how difficult it is to get a home mortgage in today’s lending environment. However, three recent reports have revealed that lending standards are beginning to ease. This is great news for both first time buyers and current homeowners looking to move or buy a se

Source: Is Qualifying for a Mortgage Getting Easier?

 


How to Automate Your Finances and Save Money, Explained in One Graphic

Personal finance is simple, but it isn’t easy. Our greedy brains try to fight us every step of the way—which is why automating your finances is such a great way to save money. Ramit Sethi, author of I Will Teach You To Be Rich, puts everything you need to know in one simple graphic.http://lifehacker.com/i-will-teach-y... I Will Teach You To Be Rich: A Solid Intro to Money Management I Will Teach You To Be Rich: A Solid Intro to Money Management I Will Teach You To Be Rich: A Solid Intr We all have different goals in life, but most of us probably have one thing in common: we'd… Read more Read more

Source: How to Automate Your Finances and Save Money, Explained in One Graphic


Mortgage Bond

Mortgage ApprovedAttention renters! Are you ready for a place of your own? And, I don't just mean somewhere to live because, if you're a renter  you already have that! I mean a home that you can paint and fix-up the way you want, where you will have less neighbor worries and, there are so many more benefits to being a homeowner, not the least which is no longer paying someone else's mortgage or nest egg by helping to build their equity, but building your own instead.

Many people I talk to think they can't afford to buy a home. Well just today, July 22, 2015, a search for properties less than $90,000 in El Paso County resulted in 15 results. Now, keep in mind there are down payment requirements for most loans except VA, but a $90,000 loan amount at a 4% interest rate (which not everyone will qualify for) equals a monthly payment for principal and interest of $429.67 (not APR)! Add 1% for taxes and insurance and we're talking about a payment of roughly $505! As you see, with monthly payments this affordable, you just can't afford not to! Not to mention, there are some areas in El Paso County enjoying up to 14% appreciation, meaning if it's worth $100,000 today it's potentially worth $114,000 next year!

Look at the interest rates bank are paying for savings and compare...you'll find that, even at 2% there is no comparison!

And if that's not enough to get you off of the fence, let me nudge a bit and introduce the El Paso County Bond program, which offers down payment assistance equal to 4% of the mortgage amount. And you don't even have to be a first time home buyer to qualify! In case you missed it, this might mean zero down.

Do I have your attention yet? Use the contact form to the right and I'll be happy to help you stop paying rent and start paying yourself.

Source: El Paso County, Colorado • Single Family Mortgage Bond Program


Start A LLC

Asset ProtectionDoing business as an individual exposes one's personal assets such as houses, cars, bank accounts to  unnecessary risk, including litigation. Either caught unaware of these risks or so penny wise they're dollar foolish, many a would be successful entrepreneurs dreams are broken by the oversight.

Who was it that said, "There's got to be a better way"? Well, there is...

Do business as a business entity and you get to insert a layer of protection, call it a shield against the inherent risks of operating in a litigious society. To a large extent, that business entity then becomes the target of creditors, clients and/or others with legitimate claims against it and its business operations, not you and your yacht.  And the great news is that many states offer a self-serve method of forming a business entity for nominal filing fees. As of this writing, $50 and about 15 minutes of your time at the Colorado Secretary of State's office (online) will have you in business with your own LLC, printed Articles of Organization and all! You'll find a directory of other states with secretaries of state services online here. However, there is more to operating a company than its formation and you might want to consider more comprehensive options including legal counsel to make sure its operations are sound.

Why a LLC? LLC Benefits2

There are many benefits to doing business as a LLC, such as simplicity. No shareholders and other corporate formalities, just you and your partner/members doing what y'all do. The tax benefits include it being a pass-through entity, meaning the business profits are not taxed directly. Instead, distributions are reported by its owners/members on their respective personal returns only to be unceremoniously taxed. And of course, there is that layer of asset protection previously discussed.

Using LLCs as investment vehicles

house underwater2So here's the cool part. Know we're just a little...OK a lot biased towards real estate. And though we digress as that is not the cool part we're talking about, don't you think it made a great segue to the outstandingly stylish an investment vehicle the LLC makes for it? That you'll soon see but, first consider this.

You're going about your business, of real estate that is, when you come across this underwater house at 123 Sunken St. Not so surprisingly caught in its undercurrent, either its (hopefully) extremely distressed owners have or are in the process of frantically trying to swim away from it, alternately (hopefully not literally) drowning in it, or both and you can have it for a song...

...happens all the time.

What to do?! First, a little...OK a lot of due diligence and then we pen a subject-to deal leaning towards the conservative side of your findings, that's what! This is it how it looks...

..."Well, Mr. & Mrs. Sellers, here's a check from Mr. Investor's account for this underwater asset with who knows what barnacles attached to it. Have a nice life!"

Investment vehicle2Right? Uh, wrong! Make that check from 123 Sunken St LLC's account, thank you very much. This way, it is the business entity which you and your members/partners, etc make your livings from, reaping in its profits and/or yes, absorbing its liabilities. Don't be silly, looking all surprised; of course they exist! But at least this way you have a little...OK a lot of CYA going on in the form of an extremely handy shield between "they" and your ass-ets.

Fueling that investment vehicle

Oh, yes. Now the fun part. Just how do we fill that shiny, new real estate LLC with the fuel it needs to make it to its destination anyway? Well, there are always life savings and/or AKA home equity loan. No? We can always beg Uncle Tom and them to buy into the dream...again...maybe not. Well, there's always that hard money and private money and...

Ooh! Ooh! What about business credit?!

Yes, business credit! You might be wondering, "How in the world will I get, much less use business credit to invest in real estate?"

How It Works Real Estate

With an LLC's Articles of Organization (or other business entity) in hand...

MWCC Process2Just like that. Any questions?

Of course. It's either this:

Qualify for Working CapitalOr that:

Qualify as Startup

Oh! And our vendor gets 8%, only when their smart work is done, while you get the credit you deserve to do what you will - except it's like cash.

That's it! How we roll, in pictures.

Hit us up using the contact form to the right with any more questions or to get started. We'll come running.

Supermarket


The Keys to Real Estate

house underwater2Credit reset a headache for mortgage market - New York Post

Yes, they're still out there. Underwater homes like this one, worth less than what's owed. And as presumably once advised, many once lured by attractive, extremely low introductory rates may soon meet the adjustable rate part of their mortgage when financial markets do what they do, adjust.

It happens all the time.

Don't get me wrong, adjustable rate mortgages are a fantastic tool, but only when used wisely.  I learned this the hard way in the early 2000's, after getting a friend into an Option ARM with a 2% teaser rate that would soon adjust so far above that it made the mortgage unaffordable. She ended up having to refinance with another lender, again paying the closing costs, commissions and other fees that come with. Of course, disclosures were made, but it is easy to glass over details when we can get what we want at a payment (notice I didn't say price) we can afford, a "let the cards fall where they may" approach. Needless to say, things were a bit tense after that and, besides the one about doing business with friends and family, there's another cautionary tale within, which is to thoroughly understand contracts entered into. Too many similarly face sudden increases in monthly housing costs they can't afford, becoming the next to face the all too familiar foreclosure crisis as a result.

Price IndexBut like every commodity, real estate values (or lack thereof) are cyclical. One truth of it is that real estate is a stable, profitable investment by any measure; another is that people buy and sell real estate through all cycles. And, when you've worked with everyone from the novice to the savvy investor and from the distressed to the homeowner recovering from said distress since 1997, you realize there are keys to meet every goal and overcome any problem. The question is...

...which, if any, is yours?

Supermarket

  • Real estate locating, analysis, acquisition, sales and management
  • Foreclosure help
  • Commercial lending
  • Private and hard money
  • Credit services
    • Restoration
    • Business credit
  • Incorporation
  • And more

Be it from the start of a dream to invest in real estate to the recovery from a nightmare certainly, there's an aisle in this market for most.

Now, you might be thinking, "That sure is one good-looking mascot, how does he do it all?" or "How do I keep the ball rolling?" Thought you'd never ask! Submit the consultation request to your right to get all the details you need to keep that ball rolling and then some. And so will clicking there. That'll get it rolling too...

Click There...


Credit Restoration

Injured Piggy Bank

Imagine being able to walk into any credit granting business with the confidence of approval. Now realize that over 50% of Americans lack that confidence. The fact is that credit affects every aspect of life today. Employers, insurance companies, potential suppliers, vendors, landlords, banks...you name it, they'll want to know your credit standing. Not only does credit have an immediate impact on your quality of life, the impact to your retirement life will be equally impactful.

Don't worry, our credit restoration service are just what the doctor ordered! We have access to quality providers of credit restoration services. One is a rock solid network of attorneys that charges an affordable monthly fee for as long as you're a client. And another charges a flat fee per file removed. The best part of this is you don't pay until it's fixed!

Are you in need of credit care? Visit http://realestatesupermarkets.com/creditamerica or http://realestatesupermarkets.com/lexington. Or please contact us at info@realestatesupermarkets.com. You may also use the contact form to the right and one of our consultants will soon be in touch.

Until then, be well!


HUD Section 8 Housing Program

Housing

HUD's Section 8 Public Housing Program offers a true win-win solution to America's housing needs. Capping rent charged to the highest of the following:

- 30% of monthly adjusted income (annual income less deductions and allowances per dependent that - can be as high as $480
- 10% of monthly income
- welfare rent, if applicable
- No more than $50 minimum rent

Section 8 housing provides low income families the opportunity to live in quality housing while providing a strong incentive for property owners to own and maintain them.

HUD's Public Housing Program/U.S. Department of Housing and Urban Development (HUD)


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