Thomas Murphy - Pine Shores Real Estate



Posted by Thomas Murphy on 4/11/2021

Image by Kevin Schneider from Pixabay

Some people just have an entrepreneurial spirit and a willingness to roll up their sleeves and get things done. But more than a few people feel restrained from maximizing their business potential because they don’t seem to have enough cash on hand.

The good news is that you don’t necessarily need deep pockets to venture into the house-flipping industry. An increased number of lenders recognize that house flippers can be a secure investment, under the right circumstances. Qualifying for a loan requires some due diligence and proof you can pay it back.

How To Get A House Flipping Loan

Traditional mortgage lenders are highly unlikely to float you a loan for this endeavor. If you think about it logically, a 15- or 30-year note doesn’t fit a relatively quick fix-and-flip scenario.

House flipping outfits typically work with hard money lenders. These resources generally approve loans with the idea that they will be paid off in a short period. In many ways, the business model employed by money lenders mirrors that of house flippers. You both want to invest, recoup your cash and enjoy a tidy profit. There are other sources to consider, such as:

  • Crowdfunding: Internet-based platforms provide opportunities to request funding from a pool of investors. These people all contribute a small portion, which minimizes their risk. The interest rates can be exceedingly high in some cases.
  • HELOC: House flippers can borrow against the equity in their home to invest in a house flipping project. A Home Equity Line of Credit does not necessarily set parameters on how the money is used.
  • Private Firms: Some companies lend money through non-traditional channels as a type of business transaction. They may charge higher interest than some banks. The added expense can be factored into the resale expenses.

To qualify for traditional loans, you need to meet certain requirements. These typically include reasonably good credit scores, assets and a sizeable down payment that demonstrates you have a large investment and interest in the project.

How Does A House Flipping Loan Work

One of the reasons that hard money lenders and others remain open to business speculation projects stems from the fact a tangible real estate asset will be in play. You can anticipate that part of the deal will seat the lender as the first lien holder. Should the real estate market dip or offers don’t cover your expenses, the lender can recover its loan at the closing. In essence, the property serves as a security deposit. Fix-and-flip loans are typically determined in one of the two following ways.

  • Loan-to-Cost: The borrower receives a percentage of the total cost. The other portion comes out of the house flipper's pocket. Fix-and-flip lenders allow broad flexibility about how you get startup money, unlike traditional banks.
  • Loan-to-Value: In this scenario, the loan generally equals a percentage of the total anticipated market value after renovations.

One of the promising aspects of securing a loan from these sources is that you do not necessarily need previous experience. A sound business plan, good credit score, down payment and an independent property valuation can persuade a loan officer you are worth the risk of an 18- to 36-month note.




Tags: loans   Flipping   House-Flipping  
Categories: Uncategorized  


Posted by Thomas Murphy on 4/4/2021

For those who want to conduct a successful home search, it is important to plan ahead as much as you can. Fortunately, there are lots of things you can do to get ready to pursue your dream home and speed up your house search.

Now, let's take a look at three tips to help you reduce the time it takes to discover your dream house.

1. Craft Homebuying Criteria

Homebuying criteria allows you to narrow your house search. Thus, if you make a list of home must-haves and wants today, you may be better equipped than ever before to streamline your quest to find your dream residence.

You also should consider where you want to reside. Because if you can hone your home search to your preferred cities and towns, you should have no trouble discovering your ideal residence in no time at all.

2. Prepare a Budget

A homebuying budget is essential, especially for a buyer who wants to accelerate the property buying journey. Thankfully, banks and credit unions are available that can help you put together a property buying budget.

Set up meetings with banks and credit unions in your city or town. Then, you can review a wide range of mortgage options and receive expert responses to your home financing concerns and questions.

It often helps to consider costs you may encounter during the homebuying journey too. From house closing costs to home inspection fees, you'll need to be able to cover various expenses as you try to acquire your dream residence. But if you start planning for assorted homebuying costs today, you can ensure that you'll have the funds available to cover these expenses.

3. Hire a Real Estate Agent

If you are unsure about how to discover your dream home as quickly as possible, there is no need to worry. Real estate agents are available in cities and towns nationwide, and these housing market professionals will do whatever it takes to help you accelerate your home search.

A real estate agent is a homebuying professional who is happy to assist you in any way possible. He or she will craft a personalized homebuying strategy for you and help you narrow your house search. Plus, a real estate agent will set up home showings, help you weigh the pros and cons of different houses and ensure you can submit a competitive offer to purchase your dream residence.

Let's not forget about the assistance that a real estate agent will offer before you finalize your home purchase, either. A real estate agent can provide plenty of recommendations and suggestions to help you prepare for your home closing. Furthermore, he or she will go above and beyond the call of duty to help you minimize stress in the days leading up to your house closing.

Ready to acquire your ideal house? Use the aforementioned tips, and you can boost the likelihood of enjoying a fast, worry-free homebuying experience.




Categories: Uncategorized  


Posted by Thomas Murphy on 3/28/2021

Many sellers rely on agents to help them to deal with the task of selling their home. If youíre looking to buy or sell a home, a real estate agent isnít required. There are many advantages and disadvantages to selling your home as a ďFor Sale By OwnerĒ (FSBO). Read on to discover the good and bad of selling your home on your own. 


The Pros


Avoid Paying Commission


Real estate commission is the main reason that many sellers choose to go it alone. Youíll pay about 6% commission on the sale of your home between buyers and sellers agents. When figuring out the asking price for your property, this number that youíll pay for a commission is included. This sale price also should be enough to pay off the remaining balance on the property. If you donít have a lot of equity in your home, an FSBO may be your only option if you canít afford the commission. Another option is to wait to sell your home until you have built up enough equity for the transaction to make sense for you. 


You Can Find Other Resources To Help You Sell The Property


There are so many resources available to FSBOs in todayís market. Yards signs arenít the only thing that sellers can use to get people interested in their property. Many websites and resources assist people taking the FSBO approach. You still may not be able to get your property listed everywhere if youíre not a real estate agent. 


Cons


You Wonít Be Able To List The Property Fully


Only licensed real estate agents have access to the MLS, where buyers' agents and other websites pull available properties.  Not having access to this can be a deterrent to the marketing of your home. You could miss out on getting many home showings that you otherwise would if your house was listed on the MLS. 


Thereís No One To Help You With Paperwork And Negotiations


Real estate agents certainly earn their commission. There is a lot of work in both selling and buying a home. If you hire an agent, heíll be taking phone calls, sending off forms, and dealing with the negotiations on the property. An agent will also coordinate home showings and have the ability to show your property when youíre unavailable. If you go it alone, you wonít have that assistance and may be a bit overwhelmed during the selling process.


A real estate agent also understands the lingo better than someone who has been outside of the business. There are many advantages to paying his fee if you decide to hire him for the sale of your home.           






Posted by Thomas Murphy on 3/21/2021

If you find your dream house, there is no need to leave anything to chance. But if you submit a "lowball" homebuying proposal, you risk missing out on the opportunity to acquire your ideal residence.

Putting together a competitive offer to purchase can be easy. Now, let's take a look at three tips to help you craft an aggressive homebuying proposal.

1. Study the Housing Market

The housing market fluctuates constantly. If the real estate market favors buyers today, it may shift into sellers' favor tomorrow, or vice-versa. As such, you should study the housing market, determine whether it favors buyers or sellers and craft a homebuying proposal accordingly.

Oftentimes, it helps to look at the prices of recently sold houses in your area, as well as how long these homes were listed before they sold. With this housing market data in hand, you may be better equipped than ever before to differentiate a buyer's market from a seller's market. And as a result, you can boost the likelihood of submitting a competitive homebuying proposal.

2. Know Your Budget

If you know how much you can spend on a house, you can minimize the risk of submitting an offer to purchase that stretches beyond your financial limits.

To establish a homebuying budget, it generally is a good idea to get pre-approved for a mortgage. Banks and credit unions can teach you everything you need to know about different mortgage options and help you select the right mortgage. Plus, if you have any questions as you evaluate your mortgage options, banks and credit unions are happy to respond to your home financing queries.

3. Collaborate with a Real Estate Agent

If you hire a real estate agent, you can submit a competitive offer to purchase on any house. In fact, a real estate agent can offer in-depth housing market insights to help you put together an aggressive homebuying proposal that may receive an instant "Yes" from a seller.

A real estate agent is a homebuying expert who understands what it takes to purchase a home in any housing market. He or she first will meet with you, learn about you and your homebuying goals and create a personalized property buying strategy. Next, a real estate agent will help you pursue houses in your preferred cities and towns until you find one that matches your expectations. And after you discover your ideal residence, a real estate agent will make it simple for you to submit an offer to purchase that fulfills the needs of all parties involved.

Of course, if your offer to purchase your dream home is accepted, a real estate agent will guide you through the final steps of the homebuying process. Or, if your homebuying proposal is rejected, a real estate agent will help you reenter the housing market.

Avoid the danger of submitting a lowball offer to purchase your dream house Ė use the aforementioned tips, and you can craft a competitive homebuying proposal and move one step closer to acquiring your ideal home.





Posted by Thomas Murphy on 3/14/2021

Image by skeeze from Pixabay

When looking for a luxury home, you can look for the most expensive neighborhood in the United States, or you can choose a luxury neighborhood in the part of the country you want to live in. Before you move to a different state, be sure you'll like the part of the country you choose.

Luxury Home Price Variances

Depending on where you choose to live, the cost of luxury varies — and it varies widely. You’ll find luxurious neighborhoods in Rapid City, South Dakota for a median price of $242,200. The most expensive luxury neighborhood is in zip code 94027 — Atherton, California. This luxury neighborhood has a median home price of $7,313,400.

Other luxury neighborhoods include:

  • 96821 — Honolulu, Hawaii, with a median price of $1,370,900;

  • 85253 — Paradise Valley, Arizona, with a median price of $1,588,200;

  • 60610 — Chicago, Illinois, with a median price of $1,885,900;

  • 06830 — Greenwich, Connecticut, with a median price of $2,056,900;

  • 33921 — Palm Beach, Florida, with a median price of $4,394,000; and

  • 81611 — Aspen, Colorado, with a median price of $4,869,200.

  • You can live in a luxury neighborhood for less money if you choose a state with a lower luxury median price. You’ll find that the cost of living is also less in those states. However, make sure the area you choose has the amenities you want. If you are expecting to have theme parks, upscale shopping and other amenities, you might want to choose a larger city, even though the median luxury price is much higher.

    What to Look For in a Luxury Home

    In some cases, luxury costs under $300,000 – and in other cases, it’s not luxury until you hit several million dollars. Regardless of the median luxury home price, always check what prices homes sold for in the neighborhood and the quality of the materials used to build the home. Other items to check include:

  • Are the appliances upgraded?

  • Did the builder use high-quality fixtures, including faucets and toilets?

  • Are the cabinets real wood?

  • Is the flooring top quality tile, wood or some other covering?

  • Is the carpet high-quality or “builder’s quality?”

  • What kind of windows are in the house? Are they at least double-pane windows?

  • Is the trim in the house made of real wood, stone or some other quality material?

  • Is the yard well-maintained?

  • Does the house have large bedrooms and closets?

  • Does the house have extras, such as a pantry, bonus rooms or a pool?

  • When you check for comparables, don’t forget to allow for those extras. The home you are looking at might not have the same amenities as another home in the neighborhood that is going for the same price. This leaves things open for negotiations if not having something, such as a pool, is not a deal-breaker.




    Tags: neighborhood   luxury   Buyers  
    Categories: Uncategorized