Blog – ReCasa Financial Group

Zillow Gone Wild

Wed, 26 Mar 2025 15:29:43 GMT

Zillow Gone Wild

I may have found my newest addiction. Have you seen Zillow Gone Wild? Maybe it’s because I wanted to be an interior designer at one point, or because I currently work in the real estate industry, but this page is so much fun! I also feel late to the game since this account has been around since 2020 and even includes a television series.

In 2024, the first season aired which was based on the original Instagram account. If you missed the first season, you can enjoy the episodes on Max and discovery+. A second seasons is expected to be aired this year.

Zillow Gone Wild showcases insane real estate property listings. You never know what you are going to get. One property could have an off the wall exterior and interior, while others could look ordinary on the outside while have a unique inside. One house even had a night club in the basement.

The Zillow Gone Wild account, which can be found on their website, Facebook, Instagram, TikTok, YouTube, and X, showcases some of the most unique real estate properties.

Zillow Gone Wild

Zillow Gone Wild | Facebook

Zillow Gone Wild �� (@zillowgonewild) • Instagram photos and videos

Zillow Gone Wild (@zillowgonewild) | TikTok

Zillow Gone Wild - YouTube

Zillow Gone Wild �� (@zillowgonewild) / X

I have been looking at the properties but I keep going back to one specific home. I absolutely love this real estate property - 2716 Mechanics Ave, Savannah, GA 31404 | MLS #327204 | Zillow ! It is an old church located in Savannah, GA. The stained-glass windows are gorgeous.

Check out this house that has a kitchen range hood that looks like a nose - This Seattle House Has a Nose For Range Hood - Zillow Gone Wild
Check out the Texas bunker house for doomsday - Doomsday Bunker Listed In Liberty Hill, TX - Zillow Gone Wild
Check out the Wisconsin Barbie themed home - This Barbie Themed Pink Hudson Wisconsin Home Is Perfect - Zillow Gone Wild

It’s always nice to find something that you mindlessly enjoy. Which property is your favorite?

Weather and Housing Market

Fri, 28 Feb 2025 12:31:35 GMT

Weather and Housing Market

Over the last year, many cities have experienced weather that they are not accustomed to. According to NASA, 2024 recorded the warmest surface temperatures to date with a record of 15 consecutive months with high temps. In 2024, the United States experienced 27 major weather events according to Environment America .

According to Aceable.com , while weather events have some negative effects on real estate, there are also some upsides for real estate professionals including increased demand for displaced residents in neighboring areas.

Due to these natural environmental events, homebuyers and renters are moving away from coasts which means that those who want to live in these areas will have inventory to pick from. Many of these homebuyers and renters are only moving a few towns away from their original residence. Newsweek believes that by 2055, 55 million Americans will move within the US due to possible major weather events.

However, today, homebuyers are moving to Florida which is known for hurricanes and to Texas which is known for floods, hurricanes and tornados. Top places for people to move to in 2025 also include North Carolina, South Carolina, and Tennessee.

Read - 25 Fastest-Growing Places in the U.S. in 2024-2025 | U.S. News

As a real estate investor, it is important to consider location of your real estate investment property. What housing market trends are you seeing in your area?

Read - Preparing Property for Anticipated Severe Weather

Here’s to 2025!

Wed, 22 Jan 2025 18:25:29 GMT

Here’s to 2025!

Happy 2025! We hope to see more affordable real estate markets for buyers due to lower prices and an increase of homes for sale. The following cities are included in the top 10 metro areas where home values are forecasted to increase the most in 2025 according to Zillow .

· Miami, FL

· Charlotte, NC

· Indianapolis, IN

· Columbus, OH

· Buffalo, NY

· Richmond, VA

· Cincinnati, OH

Of the 10, these 7 are located within the footprint of our 100% purchase and rehab loan program.

According to FairFigure , the average time to rehab a home is 166 days with an average gross profit of $73,500 in 2024. Zillow predicts that there will be sales of 4.3 million existing homes in 2025, compared to 4 million in 2024. In the first six months of 2025, new rental construction is predicted to drop 21% compared to 2024.

According to Redfin , new builds made up 28% of homes for sale in September 2024, which was the lowest in three years. In 2024, “investor purchases slightly increased from 2023, hovering just above 17%.”

As a real estate investor, what are your hopes and predictions for 2025?

Happy Holidays and Happy New Year!

Fri, 27 Dec 2024 20:13:22 GMT

Happy Holidays and Happy New Year!

All of us at ReCasa Financial Group wish everyone a safe and happy holiday season. We look forward to celebrating our milestone year with you in 2025 and continuing to serve our investors and the communities they improve.”

Thankful

Fri, 29 Nov 2024 14:51:25 GMT

Thankful

November is a month to reflect on what there is to be thankful for. Whether it is personal and professional achievements or supportive family and friends, it is important to recognize the accomplishments and people whose impact has affected us in a positive way.

When ReCasa was founded in 2000, the goal was to provide real estate investors with the resources necessary to reach their short and long-term goals. By bucking industry trends and financing 100% of the purchase and renovation costs, our clients have been able to invest in real estate without tying up their own cash or straining their own personal cash flow. While a lot has changed in a quarter of a century, our goal remains the same. We are thankful for our clients, both new and old, who entrust us to help them on their journey to increase wealth through real estate. This would not be possible without the realtors, attorneys, title agents, mortgage brokers, bankers, appraisers, inspectors, contractors, and more who play a vital role in the process of buying, renovating, and selling or renting a property. Just as it does in one’s personal life, it takes a village to accomplish anything worthwhile and we at ReCasa are thankful for ours.

2025 will be a celebratory year for our company as we reach a historic milestone as one of the longest, continually operating private lenders in the purchase and renovation space. We look forward to sharing more about that and continuing to serve our clients with a personal touch as we move into the future. Thank you again to all that support us and we wish everyone a Happy Thanksgiving!

Front Door Trends

Thu, 24 Oct 2024 22:01:35 GMT

Front Door Trends

We are currently going through the process of replacing our home’s front door. Hot temperatures and humidity would cause the door frame to swell making the front door hard to close. Shutting our door hard in these situations and continuously slamming the door led to the bottom of our door bending backwards. My husband is mister fix it so he tried to repair the door, but there is no saving it. My husband assumed a wood door would be the best replacement, but after doing some research, there are better options.

A front door is usually the main focus for curb appeal. Curb appeal can increase a home's value by 5-11%. With the real estate market changing, it is a good idea to make sure your curb appeal is on par if you are looking to sell. Easiest way to update curb appeal is to paint your front door. According to Homes and Gardens , yellow, orange or black are current popular front door colors. Here are some other front door trends for 2024:

· Dark paint hues and bold colors

· Add a light to the exterior near the door

· Include glass

· Smart locks

· Long lasting material

· Wider entrance

· Decorative hardware and accessories

In a 2023, Zillow released a study involving 4,700+ current and potential home buyers. The study concluded that home buyers did not like the color gray for front doors. Homes with gray front doors sold for $3,365 less than a similar home with a different front door color, while saturated blue and olive green sold for about $1,300 less. Additionally, red doors caught eyes but homebuyers were unlikely to look further.

More and more home owners are choosing steel and fiberglass for their front doors. Fiberglass front doors are extremely durable, water-resistant, and energy-efficient. There are also eco-friendly materials such as bamboo and recycled metal.

What are your predictions for front door trends in 2025?

Interest Rates Have Decreased

Tue, 24 Sep 2024 23:49:19 GMT

Interest Rates Have Decreased

The moment everyone has been waiting for… mortgage interest rates are starting to lower. Interest rates decreased by a half percentage within the last week by the Federal Reserve. The 30-year mortgage rate is around 6.09%, down from a peak of 7.8%. Federal leaders believe, that by 2025, interest rates will be cut by another 1.5% points.

Keith Gumbinger, VP of HSH.com, an online mortgage company, believes that while getting mortgage rates to a range of upper 4% - lower 5% would benefit the real estate market, it could be a while before rates hit those rates.

This change is encouraging people to get back into the housing market. People who held off on looking to purchase a home are now shopping. Real estate professionals believe that bidding wars will begin. While it might not happen in the next few months, real estate professionals believe that the spring will be a great selling season.

According to Forbes, the real estate market is starting to show signs of leaning towards a buyers’ market. In addition to the change in interest rates, there are new MLS policies that will benefit both buyers and sellers that took effect August 17. 2024.

Read about the policy changes here - 9 Agent Takeaways from the NAR Settlement | Zillow Premier Agent

Have you noticed any changes in your area with the interest rate decrease?

Investment Property for Child’s Future

Sat, 17 Aug 2024 20:47:34 GMT

Investment Property for Child’s Future

Many parents invest in a 529 plan for their children. However, this isn’t the only way to plan for future costs that lie ahead. Investing in real estate is not only a way to increase wealth or supplement your retirement, but can also be a viable option to save for your children’s future.

How is this accomplished? If you purchase a rental property when your child is young, it could serve as a source of extra income for 15+ years. By the time your child reaches adulthood, your debt obligation on the property would likely be minimal. If the property is located near where they plan to go to college, they could live there, and after graduating, the property could serve as a first starter home for them. With ample equity, a HELOC could be taken out to address upgrades or other customizations that are desired. Or, the property could be sold with the proceeds being used for a down payment on another house. This would result in a win on many levels. The property provided additional income to the parents for years, and provided flexibility to help out a child get started on the right foot as they get older.

It is always a good idea to consider your options and think of all options to prepare for the future. Have you ever thought about parlaying a rental property into your child’s future?

Summer Maintenance Checklist

Mon, 22 Jul 2024 14:30:37 GMT

Summer Maintenance Checklist

Summer is a great time to complete property maintenance. While these can include touch-up painting, gardening, cement/asphalt repair, and power washing which improve curb appeal, there are other important items one should check off too. According to Grange Insurance, “regular home maintenance is crucial to ensure the safety and comfort of your living space.” In addition to addressing preventative maintenance on your own home, it can be equally as vital to do so on rental properties you own. This way you minimize the chance of a major issue arising due to neglect.

Grange Insurance came out with this summer home maintenance checklist for the interior and exterior of a real estate property.

Interior

o Have a professional HVAC inspection completed

o Flush the water heater tank and make sure it is working properly

o Test sump pump

o Inspect water softener, ice maker, and dishwasher supplies and drains

o Check for leaks from any possibly water source and clean any clogged drains

o Test smoke and carbon monoxide detectors

o Check fire extinguishers

o Assess fireplace flues

o Check crawl spaces, attics, and basement for damage

o Review and update emergency plans and kits

Exterior

o Inspect and repair shingles and check for water damage

o Clean and repair gutters and downspouts

o Inspect exterior for damage

o Conduct paint touch ups

o Pressure wash siding, patios and decks

o Ensure all landscape areas slop away from foundation

o Trim landscape away from house

o Clean and seal wooden surfaces

o Clean walkways and driveways

o Check windows and doors for proper sealing and insulation

Are there other tasks you would add to this list?

How to Stand Out Amongst Other Listings

Wed, 26 Jun 2024 20:35:13 GMT

How to Stand Out Amongst Other Listings

As a real estate investor, you have the option to sell your investment property or keep it as a rental. When deciding to list, how can you set your investment property apart so you can close quickly? It is important to set your property apart from other rehab investment properties but also new builds, as new builds account for almost one-third of current homes for sale.

Of course, fresh coats of paint and curb appeal can help make your property stand out amongst others, but other ways include

· Highlighting unique property features such as a fireplace or a special room

· Including a floor plan that will provide a detailed layout of the property in the listing

· Using social media including hashtags to reach more renters and/or homebuyers

· Using quality photos and engaging, enticing descriptions in the listing

Read here about how to write a real estate listing that will stand out… Creative Real Estate Listing Description: Examples, and How to Write Them - Orchard

Check out these unique properties…

11 Unique Home Features You Have to See to Believe | Zillow

11 Unique Homes with Features That Are Out of This World - Business Insider

Think about a real estate property that caught your eye. What drew you in? When making your next listing make sure to highlight your unique features of the property. What else has helped you previously when trying to stand out?

Small Towns Building Apartment Complexes When Rehab Properties are Wanted

Fri, 31 May 2024 15:14:18 GMT

Small Towns Building Apartment Complexes When Rehab Properties are Wanted

As land gets more valuable, communities that rest within a reasonable drive of major metropolitan cities are becoming more attractive to families. Marysville, Ohio is one example of this. Located 45 minutes from Columbus, it is a small town, but due to its proximity to a big city, has all of the amenities that a family seeks when deciding where to anchor.

In the past year, a young child in the community was diagnosed with cancer. Another child was recently diagnosed with a rare condition that requires significant intervention. The “small town” feel was evident. Between fundraisers to help the families affected, or neighbors lending a helping hand, the impact that community members have made has been felt and has brought people closer together.

Communities throughout the country similar to Marysville are faced with a dilemma as their population rises and they face a stress on their existing infrastructure. The goal is to stay in touch with its history of being a close knit, prideful community, while continuing to grow and develop as the years roll by. There are different ways for communities to address this. Do they build large apartment or condo complexes? Do they invest in green spaces and parks and new subdivisions where land allows? Or, do they entice people to renovate and improve existing housing stock to provide more desirable options for those looking to settle?

No matter what strategy these “outer ring” communities embrace, a freshly renovated property that is attractive to buyers or renters puts an investor in a favorable spot. As land development becomes difficult in metropolitan areas and people’s home searches expand further out, real estate investors have an opportunity to help improve communities that otherwise wouldn’t have registered to them in the past.

Are you seeing any of the same things in your region?

Is Mailbox Landscaping Important?

Wed, 01 May 2024 20:40:01 GMT

Is Mailbox Landscaping Important?

In Ohio, it is Spring which means people are starting to work in their yards and garden beds. While a good landscape helps increase a home’s value as much as 20%, many don’t include their mailboxes in the landscape idea. A mailbox can be the easiest landscaping project that can increase curb appeal. It can set the tone for the entrance to your home.

According to MarthaStewart.com , for some homebuyers, the mailbox is the first thing they notice about a potential home as they want to see its proximity to the street. There are many great ways to increase the curb appeal without spending tons of money. There is no need to purchase an expensive model mailbox. Some tips for maximizing curb appeal through your mailbox includes

1. Choose a simple mailbox that matches your home.

2. Plant low-growing evergreen shrubs, or plant seasonal plants that can be swapped out seasonally around the base of the mailbox.

3. Don’t have anything that will block the mailbox or the number such as high growing plants or flags.

4. Add on décor such as a small flower box, a solar lantern, or fancy numbers.

According to Fresh Patio , the simplest and cheapest way to landscape a mailbox is to add some pavers or mulch around the post.

View some great mailbox landscaping ideas here - 30 Mailbox Landscaping Ideas To Transform Your Home's Exterior (1millionideas.com)

As real estate investors, do you do create mailbox landscaping if it isn’t already there?

Neighbors Can Decrease Property Value

Sat, 30 Mar 2024 21:43:08 GMT

Neighbors Can Decrease Property Value

Hopefully, you have neighbors who take care of their real estate property, but if you don’t, what does that mean for your real estate property?

While many things can affect property value, the state of your neighboring properties may not be one that easily comes to mind. If a yard is overgrown, a house has unusual exterior colors, peeling paint, broken or boarded windows, signs of hoarding, or visible trash and junk, the property is likely harming the value of your own property. According to the Appraisal Institute, an unkept nearby property can lower a home’s value by 5-10%.

While reporting the property to the HOA, or addressing concerns with the property owner, are the most direct ways to deal with this problem, there may be additional options depending on where the property is located. Some local municipalities will respond to complaints, by investigating and addressing violations of code with the property owner.

While these type of neighbors aren’t the norm, as real estate investors, it is something that should be considered before buying a property. After completing the renovations to the property, your buying pool could be smaller if your beautifully renovated home is surrounded by an eye sore.

Have you ever dealt with hard neighbors? If so, how did you deal with them?

Spring Time Means Home Décor Updates

Thu, 22 Feb 2024 02:03:31 GMT

Spring Time Means Home Décor Updates

The first day of Spring is March 19, which means it is going to be here before you know it! While the weather might not be warm in some places by March, many homeowners take the time to update their homes, and make fixes and décor changes ahead of the Summer months.

According to Real Homes, there are 5 décor choices that should be left behind in 2023.

- Single purpose furniture

- Symmetry

- Bold paint colors

- Designated work from home areas

- Uninterrupted backsplashes

According to Good Housekeeping , the following ideas are bound to be popular in 2024.

- Unpainted natural wood finishes

- Brass accents or mixed metals

- Unique lighting

- Intense, pure colors and bold hues

- Wallpaper in unexpected places including hallways

- Tile that makes a statement

- Separate dining areas

Read about how housing décor has changed over the years - 100 Years of Interior Design Trends that Transformed Our Homes (bhg.com)

Attractive curb appeal, professional staging, and working with an experienced real estate agent will also give you the best opportunity to gain the most value when looking to sell or rent your property.

What updates are a must for your property?

2024 Real Estate Market Predictions

Mon, 22 Jan 2024 15:11:39 GMT

2024 Real Estate Market Predictions

In the last few years, high home prices have been a popular topic. Many homebuyers, including real estate investors, have wondered when the prices will start to approach affordable pricing. Many people worry about a housing crash, but real estate experts don’t believe one is in our future as the housing market and the economy look better compared to 2008.

While mortgage rates remained high most of 2023, the last few months we have started to see a decline. In 2023, mortgage rates hit their highest point of 7.79% in October and homes averaged $400,000 in the third quarter. It is no secret that mortgage rates and low housing inventory created struggles in the housing market. While it is currently a sellers’ market, there is the possibility that it could level out if rates continue to decline.

Experts believe that it will be a better year to purchase homes in 2024. According to NAR Chief Economist Lawrence Yun, 4.71 million existing homes will be sold in 2024. While home prices may remain high in some areas, many areas will hopefully see a slight decline in prices. Many also believe that the inflation will begin to return to normalcy which has an impact on mortgage rates and hopefully will keep them lower, to around 6%. However, it could be a while until we see a 4-5% mortgage rate.

According to Redfin, in 2023 millennials believed that owning a house would never be possible and that renting is the way to go. Millennials say that high prices and fees associated with buying a house such as property taxes, insurance and maintenance, and saving for a down payment make renting look more appealing. Do you believe this feeling will change in 2024?

As real estate investors, 2024 looks to be a good year as mortgage rates are expected to decline, and housing inventory and home prices increase. What do you expect for 2024?

Time Freedom

Thu, 28 Dec 2023 15:47:23 GMT

Time Freedom

There are many benefits to being a real estate investor. One of those benefits includes being able to make your own schedule. You decide when you work and when you don’t. It is a great career choice for anyone who has other priorities including caring for others. As a wife, mother of two humans and three dogs, I know how important it is to have the ability to choose your work schedule.

Yes, there are deadlines to meet in this career, but it also gives you the availability to take care of yourself or a sick family member. You are your own boss. Being a real estate investor, gives you the peace of mind that when things happen in life, you are able to do what is needed when it is needed. There is also the other aspect of time freedom in the idea of passive income from renting real estate investment properties.

I recently found a YouTube channel with the goal of helping “build your own time freedom.” John Blackman is software developer turned realtor and real estate investor.

Watch here - (385) Building Time Freedom - YouTube

Some benefits to creating your own work schedule include:

· Lower stress levels

· Increased productivity

· Better mental and physical health

· Improved time management skills

As a real estate investor, are you using your time freedom to your benefit?

Thank You

Thu, 30 Nov 2023 23:46:04 GMT

Thank You

As we near the end of another year, ReCasa Financial Group would like to express our gratitude to each person who takes part in making our business successful. We are thankful for each investment rehabber, each realtor, each loan broker, each title company, each insurance agent, and each person who has read our blog over the years.

We thank you for your cooperation during each email and phone call. We thank you for your quickness to answer questions and get us the information we request. We thank you for allowing us to be part of your investment business. We thank you for referrals. We thank those that work with us to bring our rehab loan program to those across the nation.

We pride ourselves on forming relationships with each partner. Each investor, realtor, mortgage broker, appraiser, title company representative is not another number to us. We want to form a working relationship that we can build on through each transaction.

Read ReCasa Financial Group here … ReCasa Financial Group Leadership

Our wish is that you, your family, and investment business has a very blessed, healthy and happy end of 2023. We look forward to continuing our work together in 2024 and beyond.

Housing Market

Wed, 25 Oct 2023 22:44:32 GMT

Housing Market

Many Americans are facing the challenges that come with an increased rate of inflation. The inflation rate was 3.7% as of September 2023. This has a direct impact on the housing market, as buying power drops, and homebuyers have to reassess what they can comfortably afford. Higher mortgage rates and higher home prices have caused affordability to drop to a 38-year low and mortgage rates are currently at a 23-year high. As of October 2023, a 30-year mortgage rate was higher than 7%.

At the start of September 2023, new listings rose 2% which has encouraged some real estate professionals that the drop in inventory could be improving. Low inventory has created a challenge for real estate investors, which face significant competition while on the search for a property. Not to mention, the cost of materials for a rehab project have increased which further cuts into a project’s profit margin.

Read about foreclosure rates here … Foreclosure Rates Soar In Q3 2023, Nearing Pre-Pandemic Peaks – NMP (nationalmortgageprofessional.com)

Zillow data predicts that housing prices could increase 5% in 2024.

According to Bankrate.com, “As of July 2023, the median sale price for an existing home in the U.S. was a steep $406,700, the highest July price the National Association of Realtors (NAR) has ever recorded and just $7,000 short of the all-time record.” Senior economist at Zillow, Orphe Divounguy, stated that the Federal Reserve’s campaign against inflation might end soon due to rising productivity, narrowing financial conditions, and minimal wage growth. Many real estate professionals believe that mortgage rates will lower slightly in 2024, but be similar to 2023. Next year may be a challenging market for buyers and sellers due to high mortgage rates, high home prices, and low inventory. Hopefully rates will lower as predicted and the housing market will change.

How has the current market effected your real estate investment business compared to previous years?

Forming Your Professional Team

Mon, 25 Sep 2023 16:48:24 GMT

Forming Your Professional Team

Recently, I had a conversation with a friend regarding the fact that it takes a village to raise kids. Not only do parents have teams of family and friends that they can lean on in times of need, children also require a team of doctors and professionals to help keep them healthy and on a positive trajectory. These include a pediatrician, dentist, and ophthalmologist, and others. Making sure that your children have a team of caregivers, teachers, and medical experts is necessary to give the child a chance for the best outcome in life. This is also evident in sports. A professional football team that has the best trainers, psychologists, analytics personnel, coaches and more typically yields wins on the field.

If teams are vital in these aspects of life, why not do the same with your real estate investment business? In order to better position your business, it is important to develop a roster of contractors, a real estate agent, a lending source(s), an insurance agent, accountant, and more.

In 2014, we posted an article to the blog talking about the importance of building your network. Almost a decade later, the message hasn’t changed. We invite you to read the article here - Building Your Team: Who the Seasoned Investor Knows (recasafinancial.com).

What other professionals would you add to your team?

Lahaina is Not for Sale

Mon, 28 Aug 2023 13:42:49 GMT

Lahaina is Not for Sale

Wildfires recently decimated the Hawaiian Island of Maui, with many lives lost and a virtual complete destruction of the town of Lahaina. While the full cause of the fires will be gleaned in the coming months, thousands of residents are without homes and an entire community faces the challenge of a massive rebuild.

An estimated 86% of structures burned down were residential, leaving families without homes. While on-site reporting has been limited, rumors of deep-pocketed real estate investors attempting to take advantage of grieving homeowners are circulating. These groups are reaching out to distressed property owners offering instant cash for their land. This has gotten the attention of local government.

Learn more here - Real estate developers try to capitalize off Maui wildfires - CBS News

Last March, Maui was struggling with a shortage of homes on the market causing bidding wars and causing selling prices to rise. According to the Realtors Association of Maui, the average price for a single-family home was $1,058,500 and $730,500 for a condominium.

As is clear to anyone who has visited the West side of Maui, Lahaina is sacred to the people who inhabit it. As the community deals with the aftermath of the death and destruction, hopefully people can maintain their land, have support to rebuild homes and businesses, and Lahainatown will one day again be the serene, seaside hub it was before.

Good Real Estate Investment Reads

Wed, 12 Jul 2023 13:55:10 GMT

Good Real Estate Investment Reads

It’s summer and that means it’s time for summer reading! If you don’t know about summer reading programs, all you need to know is the more you read, the more prizes you earn.

Many people know that there are many summer reading programs for children including Pizza Hut and Barnes & Noble, but what about adults? There are companies and organizations that put-on summer reading programs for adults. Some places that offer a summer reading program include:

Local libraries
The Ohio State University Alumni Association ( Brutus’ Summer Reading Challenge | Ohio State Alumni Association (osu.edu) – closed for this year, but make sure to save for 2024!)
Half Price Books ( Half Price Books - Summer Reading Camp Registration )

Adult summer reading programs are a great time for you to better yourself. You can use it as a chance to read books about real estate investing and win prizes. If you are participating in a summer reading program or just looking for a good book to read, here are some recommendations from Forbes and Business Insider.

The Millionaire Real Estate Investor by Gary Keller
One Rental at a Time: The Journey to Financial Independence through Real Estate by Michael Zuber
The Book on Estimating Rehab Costs: The Investor’s Guide to Defying Your Renovation Plan, Building Your Budget, and Knowing Exactly How Much It All Costs by J. Scott
The Book on Rental Property Investing by Brandon Turner
Real estate by the Numbers by J Scott and Dave Meyer
Buy, Rehab, Rent, Refinance, Repeat by David Greene

These books teach the importance of forming your investment team, managing your property, and exceeding your expectations in the real estate market. What real estate investing books would you add to this list?

Smart Home Devices

Thu, 29 Jun 2023 13:59:31 GMT

Smart Home Devices

The list of available smart home devices keeps growing. Smart home technology was created to make life simpler and safer, but many also have financial and environmental benefits. There are smart devices for almost every aspect of a home now. Generally speaking, these devices connect to the internet and can be controlled by a smartphone or the internet, and some even work with voice control. Not only can you turn on and off these smart devices with an app, but some can even be set to a schedule. Smart thermostats can learn behaviors of when to turn up and down the temperature due to when people are in the home and are out. Robot vacuums can map out a home’s layout to make sure all spots are covered.

The very first smart home devices were expensive, some required professional installation, and had many problems. Many did not purchase these items because of their price and the problems associated with the technology. Better smart home technology was developed with the growth of the internet and then wireless internet during the 90s and 2000s.

Real estate professionals believe that smart home technology is a great way for one house to stand out from another. The best time to add smart home technology to a property is during a renovation project.

Some easy upgrades to create a smart home include:

· smart lighting

· smart thermostats

· mart smoke detectors

· USB-C wall outlets

· smart garage doors

· smart door locks

· automatic blinds

· smart textiles

· smart ceiling fans

· smart water heaters

· smart sprinkler system

While there are more smart home devices that the homeowner or renter can purchase themselves, these are ideas of things you can add to the property to stand out from other real estate properties.

What are some of your favorite smart home devices? Do you add any to your rehab investment properties?

Local School Levies and Property Values

Tue, 23 May 2023 14:17:51 GMT

Local School Levies and Property Values

In 2023, our public school system proposed a school levy which recently failed. This levy was proposed in order to protect existing staff, programs, and current class sizes. This operating levy would provide funding for day-to-day expenditures such as salaries, utilities, transportation, activities and programming. Once the levy failed, people started asking more and more questions pertaining to the consequences of the failed school levy. Residents began worrying that the failed levy will create a decrease in property value. Is there a connection between property values and school performance?

With the failed levy, some families are starting to consider relocating to get a better education for their children as they fear their children will not get a good education and the personal help they may need to succeed academically.

Many families look at school ratings when determining where to move. While there are many factors that play a part in property value, there are also many factors that play a part in a good public school system too. People are unsure of whether property values are higher due to a good school district or whether schools have a higher ranking due to high property value. Whatever the case, most homebuyers are going to want to purchase properties within high-ranking school districts.

A public school’s ranking is determined by test score performances, graduation rates, class size, programs, activities, and school funding. Low school funding could potential mean larger class sizes which could potentially mean lower test ratings which would mean lower school ratings which could potentially mean lower property values as people would not want to move to these areas. According to a 2003 report by National Bureau of Economic Research, for every $1 spent on public schools, property values increase by $20.

At ReCasa Financial Group, we always recommend doing your research before purchasing a property, but you may want to dig a little deeper into the school systems before purchasing your next investment property.

Residential Investing is a Better Choice

Tue, 25 Apr 2023 23:48:43 GMT

Residential Investing is a Better Choice

Many questions need to be answered before investing in real estate. One of those questions is whether to invest in commercial real estate or residential real estate.

During COVID, many businesses were forced operate remotely. Some businesses found employee production remained at or above past levels and have continued some form of remote work to this day. As a result, some companies have sold, subleased, or reduced the physical space they operate their business from. Companies were able to save money by doing so, which in turn, caused issues for landlords who were left trying to backfill vacancies in a saturated commercial real estate market. With this trend likely to continue, investing in residential real estate is the route many investors take.

In Chicago, office space is being renovated to serve a residential use. This provides more housing in a land-locked area and will help the building owner fill the space.

Retail space is also on the decline. With online shopping the norm, retail companies have had to adjust their presence and measure their physical presence.

The pros for residential investing outweigh the commercial arena in the current climate:

· Lower tenant turnover

· Depending on the location, fewer restrictions regarding renovation

· Larger pool of potential buyers and renters

What pros would you add to investing in residential real estate over commercial?

Landlords Get Bad Reputations

Fri, 24 Mar 2023 14:46:07 GMT

Landlords Get Bad Reputations

Landlords tend to get a bad reputation, or at least you probably only remember bad things about landlords you’ve encountered over the years.

Basic responsibilities of a landlord are to provide a safe and healthy living condition at a market appropriate price. They should notify a tenant at least 24 hours prior if entry to the property is necessary, make repairs in a timely manner, give a tenant ample notice of an impending rent price change, and follow all requirements of their jurisdiction.

I recently found a social media account that highlighted ways a landlord showed appreciation for its tenants. Among them:

Send tenants that are parents flowers/gift card on Mother’s Day and Father’s Day.
Made alterations to their property to accommodate a tenant’s daughter who was having her leg amputated. Also, gave a rent payment holiday to help the family with its medical costs.
Deposit a portion of a tenants rent into a savings account to help the tenant when they want to purchase their own home.
Give tenants a one month payment holiday when they have a child.
One month hardship waiver. Tenants are given 1 month free when a demonstrated hardship arises in their life.
In March 2023, gave tenants a $100 gift card for groceries as the cost of food increase substantially.

Find his TikTok account here - niccunningham686 (@niccunningham686) | TikTok

This landlord wants his tenants succeed in life. He believes that if he takes care of his tenants and treats them with respect, then the property will be treated with respect. A happy tenant leads to lower turnover and, in turn, lower costs to the landlord.

What are your thoughts on this landlord’s offerings? Have you ever done anything similar?

Inflation and Real Estate Investing

Tue, 28 Feb 2023 14:51:52 GMT

Inflation and Real Estate Investing

If you have bought anything lately, I am sure you have noticed the inflation. One of the biggest talked about item is the price increase of eggs. A box of Girl Scout cookies is even cheaper than a dozen eggs!

While inflation has started to slow down, it is still noticeable. Inflation can create a positive and negative impact on real estate investing. The specific market and investment property type can affect if it is negative or positive. Whether becoming a landlord or rehabbing a fix and flip property, there are ways to adjust to inflation and investing.

With prices increasing, the best way to rehab a property is to purchase items for functionality and longevity over style. This should decrease the turnover rate of renters and decrease the number of repairs need to be made over the years. The way a real estate investor runs their investment business, will make or break it during this time of inflation.

Inflation should not be worrisome for real estate investors, but it is important to understand it and prepare for it. For owners of rental properties, inflation can be very beneficial. It is known that landlords increase the price of rent when prices of goods and services also increase.

Currently, mortgage rates are high which is usually a result of inflation. Some homebuyers are taking advantage of the theory, “buy now, refinance later.” On the other hand, there has been a decrease in mortgage applications. Good news is that rates are expected to fall this year.

How is inflation influencing your real estate investing?

Foreclosures

Wed, 25 Jan 2023 17:26:19 GMT

Foreclosures

Foreclosures are a great opportunity for real estate investors. They can require a lot of time investment and work, but can be a financial success as foreclosures usually are sold at below market value. Before purchasing a foreclosed property, do your research. Each state has their own rules and regulations pertaining to foreclosed properties.

Last year, 324,237 U.S. properties filed for foreclosure, while only 42,854 properties were repossessed. These numbers are still lower than pre-COVID numbers.

2022 foreclosure filings reported a 115% increase compared to 2021. However, the 2021 housing market was affected by COVID-19 as most foreclosures were stopped. If we compare 2022 to 2019, the last “normal” year in real estate reported by real estate professionals, foreclosure filings decreased 34%.

Keeping an eye on foreclosure rates will help those wondering if we are getting close to a housing market crash. What do you think will happen with foreclosures in 2023?

Preparing Property for Anticipated Severe Weather

Tue, 27 Dec 2022 21:58:02 GMT

Preparing Property for Anticipated Severe Weather

Ohio, along with many other states, was hit hard December 23 ^rd with snow and freezing temperatures. People across social media platforms were sharing helpful tips to prepare their homes for the change in weather as we all knew it was coming.

There are so many different weather situations that we should prepare our houses for in order to keep it safe, but do we know all of them? These tips are especially important for real estate investors with vacant properties. These properties may need a little extra preparation as someone won’t be there to help the property as soon as an issue occurs. It could be hours or days before an issue is noticed.

Cold Weather

· Clear gutters and downspouts of all blockages

· Store or cover outdoor furniture

· Wrap outdoor or unheated, exposed pipes

· Remove garden hoses from outside faucets and insulate outdoor faucets

· Drip water from indoor faucets

Tornado/ High Winds

· Tie down all loose outdoor items

· Seal windows and doors

· Keep all branches trimmed away from windows and roof

Hurricanes/ Flooding

· Protect windows with wooden boards

· Tie down loose outdoor items

· Point downspouts away from the property

· Clear gutters and downspouts of all blockages

· Have sandbags available to protect against flooding

It is always important to make sure that any damaged siding, roofing, and fencing is fixed in a timely manner so that it does not cause additional damage to your property or a neighboring property.

For vacant properties, it is always a good idea to have ovens, microwaves and other electronics unplugged while no one is residing in the property.

As always, check your insurance policy to see if your property is covered for any special weather issues such as flooding, cold weather, and hurricanes.

Before big weather changes such as freezing temperatures, tornados and hurricanes, make sure that you have extra flashlights and/or candles and matches readily available, all electronic devices (phones and computers) are charged, vehicles are filled with gas incase you need to evacuate, and food you can eat without having to use an oven, stove or microwave.

What tips would you add to this list?

Thankful for Many Things

Sat, 26 Nov 2022 13:39:45 GMT

Thankful for Many Things

Being thankful is a great feeling. We have so much to be thankful in our lives even on our lowest days. November is great time to really think about those things you are thankful for in your life. The main items that people are thankful for include family, friends and their job. But what exactly about their job? Might be that they have one. But what about all the little things that go into you having the ability to maintain that job.

At ReCasa Financial Group , we have many things to be thankful for over the years. We are thankful for all of you. We are thankful for our new customers and our repeat customers. We are thankful the real estate brokers we work with to share our financing options across the nation. We are thankful for those clients who have brought us new business by sharing our company with friends. We are thankful for our inspectors, title companies, and closing companies that we work with consistently throughout the loan process.

We are thankful for the internet, email, phones, and fax machines to be able to conduct business from various locations. We are thankful for our co-workers who travel to check on properties or to hold meetings with potential clients and brokers. We are thankful for a building that we call our main headquarters. We are thankful that we are able to lend to clients in 16 different states. We are thankful for our co-workers near and far as they work hard to close loans throughout the year. We are thankful for our ability to lend our own money on investment loan programs to clients. We are thankful that our company has been doing business for 22 years. We are thankful for those who started with our company to bring it to what it is today. We are thankful to have leaders that have guided us in our positions to make this company successful.

Without all these people and abilities, ReCasa Financial Group would probably not be what it is today. So again, thank you. Remember to thank those in your life and your career life this holiday season.

Real Estate Market Changes

Mon, 24 Oct 2022 14:21:31 GMT

Real Estate Market Changes

With all the real estate market changes, the housing market is starting to level itself. Homebuyers are starting to gain the upper hand in negotiation. Home prices are dropping while interest rates are increasing. Homes are staying on the market longer than they were a year ago.

With the increase in mortgage rates, home purchases are slowing. With rates increasing, so is the cost of renting. In 2022, rent is projected to increase by 3.6%. Real estate experts believe that with the increase in rent, more homebuyers will be entering the market.

According to National Association of Realtors, real estate investors purchase 16% of homes in August 2022. This number of homes purchased increased from 14% in July and 15% in August 2021. In September 2022, the median sale price of a home increased by 13.9%.

Zillow reports that they expect home prices in the United States to increase 1.4% over the next year. During the summer of 2022, 117 housing markets across the United States saw a decrease in home values, while 779 markets saw an increase.

Freddie Mac reported that currently “60% of renters and 24% of homeowners spend more than 30% of their monthly income on housing.”

Freddie Mac believes that we will see the following within the next six months in the United States.

· 19% will purchase a home

· 16% of real estate homes will be sold

· 16% of homeowners will refinance

What are some of your predictions for the real estate market for the next six months?

Boost ROI with these 2023 Design Trends

Fri, 16 Sep 2022 17:06:08 GMT

Boost ROI with these 2023 Design Trends

As real estate investors, you know that renovating kitchens and bathrooms will give you the biggest return on investment, or ROI. This fact hasn’t changed in years. Interior design trends change every few years. If a property looks outdated, you may turn away potential homebuyers.

Real estate professionals are reporting that ceramic tile and some styles of granite (especially the darker, speckled granite) kitchen counter tops are outdated for the up coming year. As for bathrooms, 2023 trends include

· Double showers

· Wood looking materials

· Monochromatic color schemes

· Mast bathrooms with flowy and floral patterned wallpaper

Kitchens and bathrooms are not the only rooms that you can renovate to boost ROI. It should be a given, but a home’s curb appeal should be priority. If the home doesn’t draw attention from the road, then people will not be drawn to view the property. Landscaping, fixing rotting wood, cleaning siding, and touching up paint are some of the best exterior ways to boost ROI.

To learn about the paint colors for 2023, read this - Every 2023 Color of the Year We Know So Far (bhg.com)

According to HGTV , in 2023, we will see

· Translucent furniture being replaced by wood furniture and pearl looking furniture

· Less buffalo-checker and more maximalist furniture and bold patterned wallpaper

· Industrial looking light fixtures being replaced with sleek, curved lighting fixtures

· Matte-black hardware being replaced by those in metallic tones

Which 2023 real estate design trends will you be following?

Is a 2008 Housing Market Crash Happening Again?

Tue, 30 Aug 2022 17:11:40 GMT

Is a 2008 Housing Market Crash Happening Again?

In 2008, the United States experienced a housing market crash. This was the biggest change in the housing market since the Great Depression. With the current changes we are seeing in the real estate market today, some people are worried that we might be seeing another housing market crash of 2008. However, real estate experts believe that the current housing market is nowhere near the housing market of 2008.

Currently, the number of real estate sales continues to decrease month to month, but real estate experts believe this decline will slow.

Experts say that the 2008 housing crash was due to homeowners not being able to pay their mortgage as interest rates were too high. Many blame the adjustable rate mortgages (ARM). Today, many homeowners have been able to obtain low fixed interest rates on their mortgages. Today, 8% of mortgages are ARM, while in 2007 36% were ARM. Laws and regulations were put in place after the Great Recession to help prevent another similar event.

We all wish we could correctly predict the future, but there is no way of determining the future in real estate. We can look at the past and learn on how to handle the future. What did you learn from the 2008 housing crash that will help your real estate investment business?

Trees Add to Home Value

Fri, 22 Jul 2022 13:04:21 GMT

Trees Add to Home Value

While doing some research on which home projects are increasing a home’s value, I came across a very interesting article. According to Money.com, having a property with trees increases a home’s value between 3.5% to 15%. The average selling price of a home in the US is $407,600, so that is essentially a $14,000 to $61,000 increase. Trees are aesthetically pleasing and offer benefits to homeowners.

Read full article here - What Trees Add the Most Property Value to Your Home? | Money

According Arbor Day Foundation , trees can create many benefits for a homeowner, including…

· Add value to property

· Save on energy bills

· Help cool your property

· Lower heating costs by creating windbreaks

While trees can add to a home’s value, it can also lower it. This can happen when invasive root systems cause damage to the home’s foundation and/or plumbing. A tree that is situated poorly on the property can also cause more harm than good, if it blocking most of the natural light for the home, and thus indirectly causing higher electrical usage. Whether removing a problem tree or reshaping/trimming, it is important to assess the condition of trees on your property frequently.

If you plan on adding a tree to your property’s landscaping, make sure to get a species that will survive your planting zone and soil, and pick one that will be beneficial to you (shade, fast growth, privacy, color, etc.). A great option is to always pick a tree that is native to your area.

Will you be adding a tree to your investment properties?

Real Estate Market Seeing Changes

Thu, 23 Jun 2022 19:39:34 GMT

Real Estate Market Seeing Changes

In early 2022, the prices of homes were continuing to sky rocket. Affordability was a concern for many as prices soared with no end in sight. Since then, interest rates have increased and an inflationary environment has settled in. Even so, today’s real estate market is far better equipped to withstand itself than in 2007 when similar circumstances arose.

A more “even” field has arrived in the recent month, with buyers and sellers on more equal footing from a leverage standpoint. According to NerdWallet, the average interest rate on a 30-year home loan was 3.1% at the beginning of 2022. Now, these mortgage rates have risen to 6.2%, the highest since 2008. Predictably, with this increase, there is a decrease in the number of mortgage applications. Purchase applications saw a 16% dip in June from the year prior, and refinancing applications saw a 70% decrease from the previous year.

Properties are also tending to stay on the market longer. Some sellers are now taking offers below asking price in order to get their properties off the market. Since April, homebuyers are seeing a slight dip in the sale price they are expected to pay. This dip still keeps the price higher than home prices a year ago.

The number of new builds continue to decline. It is at the lowest it has been in 2 years.

According to CNN.com , with the decrease in home sales, some realty companies are starting to lay people off. With not as much inventory, they do not need an abundance of realtors.

Inflation is seen everywhere right now. As real estate investors, I am sure that you have noticed that the price of rehabbing supplies has increased from a few years ago. A rehab budget of $50,000 a year ago, may well be $60,000 now, squeezing profit margins and causing investors to avoid overpaying for a property.

With all of these economic changes in the past few months, what changes do you foresee in the next few months?

Real Estate Market

Tue, 24 May 2022 18:19:13 GMT

Real Estate Market

If you have purchased anything lately, you probably have noticed the increase in cost of items. Not only is there still an increase in the price of wood and other building materials, but now fuel and groceries are rising to astronomical levels and inflation is at a forty year high.

Real estate prices are continuing to rise as well. Mortgage rates continue to climb and currently sit at the highest level since 2009, and we should expect to see more increases over the next year. According to MSN.com , “The consumer price index remains high: 8.3% above year-ago levels.”

The United States continues to see a shortage of homes for sale. This shortage is impacting the increase in home sale prices. Houses that are put on the market are not staying on the market for long even with the high list prices and high mortgage rates. The average 30-year fixed mortgage rate went from 3.11% in December 2021 to 5.25% in five months. Real estate professionals predict that home sale prices will continue to increase through the end of the year.

Economists are predicting a recession in our future, but not until 2023. This possible recession could mean a possible decrease in home sale prices. However, experts believe that this recession will not be the 2008 recession we experienced.

Read more about the possible recession here - Fannie Mae predicts recession in late 2023 | Fortune

What are your recession predictions?

Short-Term Rental or Long-Term Rental

Tue, 19 Apr 2022 19:25:37 GMT

Short-Term Rental or Long-Term Rental

Our friends will be moving this summer from Ohio to New York. They move every few years due to the husband’s career, so moving is nothing new to them. They have planned to take a week in the next month or so to go out to New York to house shop. While they are there, they will need somewhere to stay. They started looking at hotels, but were shocked by the price, so they started looking into short-term rentals, or vacation rentals, instead. They realized that vacation rental properties were about the same price as staying in a hotel for the week, and some properties were even cheaper!

Renting a whole house compared to a hotel room, is a big deal for a family of 5. This will give them more room, as well as a full kitchen where they can save more money by eating in.

As a real estate rehab investor, you know that at the end of the renovations you will either need to sell or rent your property. For those real estate investors who want to rent, they need to decide if it will be a vacation rental like Airbnb and VRBO or a long-term rental. Vacation rentals in touristy areas like Outer Banks and Hilton Head tend to be more expensive for renters compared to somewhere like New Hartford, NY.

According to Earnest.com , the average vacation rental host profits $924 a month. This is usually a bigger monthly profit compared to long-term rentals. However, it is important to remember this varies depending on the property location and property type. Vacation rentals tend to be more work, and run a risk of not being rented for weeks or months. On the positive side, it can also be used as a vacation home for you and your family. Vacation rentals usually require more communication between the owner and the renters and the owners will need to clean the entire property between the renters. Unlike long-term rentals, owners do not run background checks on renters, which has its own pros and cons. It allows easier and quicker bookings, but also runs the chance that the rental could be damaged, but that is why most of these rentals require a down payment for incidentals.

Long-term rentals give the owners a chance to pick who they will rent to. Usually, the owners will run background checks on their renters. This gives owners the peace of knowing that their property should be taken care of and that they will get their rent payments. With long-term rentals, you know that the tenant will be there for a long period which usually means they require less work and have a consistent income, but the monthly income is reported to be about 30% lower than if it was a vacation rental. With long-term rentals, owners can also require that the renters take care of the property, such as caring for the lawns and flower beds, which takes work away from the owners.

While it seems that vacation rentals are a bigger risk, they tend to be more profitable. Is the risk worth it for you? As always, do your research when deciding which rental type is best for you.

Women in Real Estate

Thu, 24 Mar 2022 14:02:57 GMT

Women in Real Estate

March is National Women’s History month. According to United States Census Bureau, National Women’s History month dates back to March 8, 1857 when a group of women protested the poor working conditions within New York City factories. The first celebration in the United States occurred in 1909. It has evolved from recognition on a day, to a week, and in 1987, a month.

During National Women’s History month, we celebrate all the changes women have made over the years including wage equality, availability of education, the right to vote, career opportunities, and much more.

In 2020, NAR highlighted how women have become a leading force in the real estate industry. It wasn’t always this way. The Women’s Council of Realtors is rumored to have begun when women were denied certain real estate board positions. Today, there are several groups just for women in real estate.

Some fun facts about women in real estate include:

· 65% of all realtors are female.

· 19% of 2021 homebuyers were single women

· Women make up 84% of interior designers and decorators

In 2020, Million Acres listed 5 women that we should know in real estate investing . These are successful women that provide a terrific example to current and aspiring female real estate investors.

Jane Goldman is another woman in the industry who has excelled in her craft. According to Forbes , Jane is “America’s only female billionaire running a real estate firm.” Her real estate portfolio includes more than 400 properties.

What other women in real estate should we know about?

Unique Ways to Find Real Estate Properties

Sat, 19 Feb 2022 16:47:18 GMT

Unique Ways to Find Real Estate Properties

I live in Marysville, Ohio which is about 30 miles northwest of Columbus, Ohio. Marysville has an estimated 25,000 residents. Over the past few months, I have seen many "For Sale" signs go up in yards only to move into the “SOLD” status days later. With the current real estate market, it is not a shock that move-in ready homes are selling quickly.

But as a real estate investor , you want to find properties before they go on the market. An MLS listed property can still be a great deal, but find a property before listing, you may have less competition.

Recently a home was listed on a Marysville area Facebook group, and after 6 hours there were already 10 responses expressing interest. The house wasn’t scheduled to go on the market for another two days.

There are many ways for investors to find properties, besides the MLS. These include:

· Drive around and look

· Go to foreclosure auctions

· Check local tax records and tax lien sales for your county

· Work with real estate professionals, or wholesalers, who specialize in real estate investments

· Social media

Not only are people posting in my area’s Facebook groups that they will be putting their house on the market soon, but people are also posting when they are looking to move to the area. These posts can be beneficial for real estate investors to find homes to rehab as well as finding potential homebuyers/ renters after the rehab is complete.

What are some unique ways you have found a real estate investment property?

Changes in 2022 for Mobile Payment Apps

Mon, 24 Jan 2022 18:01:13 GMT

Changes in 2022 for Mobile Payment Apps

Mobile payment apps such as Venmo, Cash, Zelle and PayPal are now required to report commercial transactions totaling $600 or more per year to the IRS. This reporting change started as of January 1, 2022. Not only are these apps used for transferring money between friends and family, but some businesses use them as well.

These applications will now have to supply 1099-K forms to users who, in one year, make more than $600 in commercial transactions. These forms should be released by January 31, 2023 to those who meet this criteria. This reporting change is part of the American Rescue Plan Act that was passed in 2021. Previously, these payment apps were only required to report when a user had more than 200 commercial transactions totaling $20,000 or more per year.

These payment apps usually give each user the ability to mark if the payment is either friends and family or goods and services. A commercial transaction is considered any transaction where you will be making a profit. If you sell a couch to someone for less than you paid for it originally, then that is not considered a commercial transaction. However, you may want to keep reports to prove that you didn’t make money on the purchase in case you are audited. Though PayPal reports, “Users should select Goods and Services whenever they are sending money to another user to purchase an item, like a couch from a local ad listing or concert tickets, or paying for a service.” This may be because marking it goods and services provides support if something goes wrong with the transaction such as the buyer not receiving the item purchased. According to Venmo , “Senders can tag a purchase as ‘goods and services,’ whether it’s for a product you sell, a service you provide, or even an old couch you don’t want anymore. This helps create a safer marketplace by making both the buyer and the seller eligible for Purchase Protection if something goes wrong on either side.”

It is recommended to create two accounts for these mobile payment apps, one for personal use and one for commercial use.

Investment Locations and Property Types

Thu, 16 Dec 2021 20:10:17 GMT

Investment Locations and Property Types

As our seasoned real estate investors know, ReCasa Financial Group , believes it is important that real estate investors invest in properties close to where they reside. There are many advantages to being local, most importantly being able to regularly visit and manage the renovations.

Realtor.com recently released the top 10 housing markets for 2022. These cities include:

1. Salt Lake City, UT

2. Boise, ID

3. Spokane, WA

4. Indianapolis, IN

5. Columbus, OH

6. Providence, RI

7. Greenville, SC

8. Seattle, WA

9. Worcester, MA

10. Tampa, FL

As always, location can affect both value and desirability of a particular property. Depending on your investing strategy, an investor may want to target properties near college campuses which provide a continuous stream of potential tenants. While others that live near tourist destinations, may look for a property to renovate and market to short-term vacationers who are in town for a concert or sporting event.

Forbes released an article in August 2021 listing “four properties perfect for first time investors.” The four types of properties listed include:

· “Single-Family Homes Near an Elementary School”

· “Condos Near Universities”

· “REITs”

· “Properties With Two Separate Entrances”

While most investors focus on urban/suburban areas, there are some potential opportunities in rural areas as well. While the buyer/tenant pool is much smaller in small communities, there is usually less fully updated and renovated property too. As with all opportunity, determining profit margins early in the decision-making process is essential. No one wants to take on a project that is not worth it.

As a real estate investor, what types of properties do you target and have you ever considered projects outside your normal scope?

Properties with Video Doorbells

Fri, 19 Nov 2021 16:36:51 GMT

Properties with Video Doorbells

Real estate professionals predict that the widespread “seller’s market” will continue into 2022. With low available housing and low mortgage rates, it is no surprise that this is expected to continue.

As of July 2021, smart doorbells, or video doorbells, were reported as a 1.83-billion-dollar market. According to a report by Strategy Analytics, smart doorbells ranked high in popularity among other home devices.

How does this relate to a real estate showing? While a typical showing with a realtor may seem private, with the influx of video surveillance, there is a chance your every move is being monitored. In a hyper competitive market, a buyer wants to avoid doing anything that will prevent the seller from accepting their offer. Discussing your thoughts on the property and if it is a good fit for your family is best left until after the showing. The last thing a buyer wants is for a comment to be picked up on a doorbell camera or other device that may upset the seller.

Also, video doorbells are usually considered fixed property when selling a real estate property. If you do not want to have your video doorbell or other smart surveillance sold with your property, remove before any photos or showings are completed. This avoids a future argument on what does and does not convey.

Paranormal Activity and Real Estate

Mon, 25 Oct 2021 17:53:11 GMT

Paranormal Activity and Real Estate

For those homebuyers who believe in ghostly spirits, you may want to know if the property is occupied by paranormal, or “haunted”, before purchasing or renting a house. Interestingly, a select few states require that paranormal activity be disclosed during a transaction. It could even potentially increase the value of a home.

As of 2019, only Massachusetts, Minnesota, New Jersey, and New York have any mention of reporting paranormal activity detailed in their real estate disclosure laws. If your state does not require paranormal activity to be disclosed, you can always do your own research or talk to your realtor. If you ask open ended questions regarding paranormal activity at a specific property, the seller is required to tell the truth.

According to Forbes , Texas, Ohio, Illinois, Indiana, Pennsylvania, New York, and Virgina are among the top 10 most haunted states.

Read about the most haunted homes in each state of the 50 states… https://www.housebeautiful.com/lifestyle/g4790/most-haunted-home-50-states/

Homeowners have been known to try a wide array of cleansing methods to rid properties of spirits. These include saging, blessing the property by a clergy person, or if all else fails, calling in paranormal experts.

Find haunted places in your area… http://theshadowlands.net/places/

As a real estate investor, have you ever experienced strange or paranormal activity at an investment property?

End of 2021 Housing Market

Thu, 16 Sep 2021 16:40:34 GMT

End of 2021 Housing Market

Many people are wondering how long the real estate market will remain with record low mortgage rates and high home prices. We have no definitive answer, but many real estate professionals have made predictions. While the housing market as a whole may have one outcome, some specific regions can have other results. The housing market in a suburban area may differ slightly from the closest city. As a real estate investor, it is important to keep updated on the housing market in your region. A good source for this information is a local realtor. Make sure to add a trusted realtor to your real estate investing team.

Read more about building a real estate investing team here… https://www.recasafinancial.com/building-your-team-who-the-seasoned-investor-knows

According to Yahoo! Finance , “the number of homes for sale is up 30%” since Spring 2021. This spring’s home sales hit a low before starting to rise. On the other hand, home prices have only risen 18% over the last year.

The mortgage forbearance program is starting to phase out enrolled individuals over the next few months. This mortgage forbearance program allowed borrowers to pause mortgage payments during the pandemic. An estimated 1.6 million borrowers are enrolled in this program, and not all will be able to start repayment. Many homeowners will have to consider selling their properties which may create an increase in real estate inventory. Zillow predicted that 25% of the 1.6 million borrowers will most likely list their homes. That means possibly 400,000 homes will be added to housing inventory soon.

Read more about the forbearance program here… https://www.forbes.com/advisor/mortgages/what-happens-after-mortgage-forbearance-lifts/

Some people may think that this inventory increase could cause a housing market crash, but housing inventory is still 38% below pre-pandemic levels. However, the inventory spike could cause home prices to decrease.

What do you predict for the housing market during the remaining months of 2021?

Return On Investment

Wed, 18 Aug 2021 18:29:17 GMT

Return on Investment

As any seasoned investor will tell you, no two investment rehab projects are the same. Some repair lists come in over budget and others under budget. Some are large scale projects that take months to complete while others can be completed in a matter of weeks. All of these factors, coupled with the price the property is acquired for, go into calculating what an expected profit will be. Another factor in profit variation, is location.

According to WalletHub , during this year’s first quarter, the average real estate property flip in the United States resulted in a profit of $63,500. It also reported the following locations have seen the highest gross return on investment over the past year:

· Pittsburgh, PA

· Philadelphia, PA

· Cleveland, Ohio

· Wilmington, DE

· Buffalo, NY

The number of rehab projects an active investor completes each year is up to each individual, but studies show that the average number of flips completed in a year range between 2-7. At ReCasa Financial Group, most of our investor clients complete 2-3 projects in a year. Although we help both full-time and part-time real estate investors alike, our typical investor is a part-time real estate investor with a “day job” looking to earn extra income.

ReCasa Financial Group recommends that you determine your ROIC, or return on invested capital, by using the following formula.

Profit/interest = X

X (100) = ROIC %

With ReCasa Financial Group’s program, all charges and costs are rolled up into the loan amount. Assuming you draw out fully on the $74,500 you would pay interest of approximately $3,539 for that six-month loan term.

Of the purchase price of $100,000, $74,500 went to loan repayment, $3,539 in interest, and $6,000 in realtor fees. That leaves you with a $15,961 profit. Your ROIC would be 451%.

$15,961/ $3538.75 = (4.51) x 100 = 451% ROIC.” - What Will Your Investment Give You In Return , 2013

With today’s low interest rates, you could see a larger ROIC than ever before. ReCasa Financial Group continues to offer 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner-occupied properties. Let us help you earn a high ROIC.

Real Estate Improvements in 2021

Wed, 21 Jul 2021 19:25:41 GMT

Real Estate Improvements in 2021

As we have mentioned many times in previous years, renovating kitchens and bathrooms bring the biggest return on investment. This still holds true today. According to a report released by Remodeling Magazine, a midrange bathroom update can result in a 60% ROI.

While this insight hasn’t changed, the interior design aspects of a bathroom and kitchen have over the years. Now,

homebuyers are looking for spa like bathrooms.

Some 2021 bathroom improvements include

· double showers

· heated floors

· dimmer lights

· zero threshold showers

· automatic vent fans

Some 2021 kitchen improvements include

· quartz countertops

· heated floors

· adequate storage

Remodeling Magazine’s 2021 Cost vs Value report is very fascinating. “This site compares average costs for 22 remodeling projects with the value those projects retain at resale in 150 U.S. markets.” You can view the rehab projects by the entire nation, or filter it to specific region, city and zip. In addition to kitchens and bathrooms, replacing exterior doors including garage doors, and replacing siding and windows help increase your return on investment.

View the 2021 Cost vs. Value report here… https://www.remodeling.hw.net/cost-vs-value/2021/

As a real estate investor, what renovations have you found that have increased your ROI?

Homebuyers are Doing Whatever They Can to Purchase Properties

Tue, 22 Jun 2021 15:04:33 GMT

Homebuyers are Doing Whatever They Can to Purchase Properties

As you already know, the housing market is crazy right now. Desperate homebuyers have resorted to interesting tactics in hopes of securing the winning bid. Stories of people supplementing their offer with a personal note to the seller or offering significantly over list the day after listing aren’t new. However, more extreme measures that include adding cryptocurrencies to a bid and offering $1 million over asking price have infiltrated the news recently.

Read more unique housing offers here… https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html

I’m not sure anything beats the story of a Colorado property that went viral recently. Tenants of a 5-bedroom, 4 bath rental property were evicted by the property owner. When let in to the property to collect their belongings, the tenants destroyed the property, hammering holes into the walls and littering the interior with trash and graffiti. One would think the value of this property would drop significantly and make it difficult for the owner to get a reasonable price. Not exactly. Even with a repair list of almost six figures, this property was listed near market value for this neighborhood. The property went under contact after being on the market for a week.

Have you ever encountered “unique” home buying/selling stories in this market?

Cost of Lumber and Real Estate

Tue, 25 May 2021 17:54:14 GMT

Cost of Lumber and Real Estate

As the price of lumber continues to rise, the cost of new builds also rises. According to CNBC , new construction homes are said to be around $36,000 higher than usual. This increase may have homebuyers in the market for older homes with newer updates. While the pandemic caused lumber production to slow, the demand did not.

Many lumber producing companies have not caught back up to previous production levels. Lumber is not the only construction material that has seen an increase in price. Drywall and steel have also increased. Many items are also on back order . The rise in material costs combined with the shortage of available product have increased construction timelines. Even with low mortgage rates, homebuyers struggle to take on the increase in price and the time it takes to complete their new house.

While there was a slight dip in the existing home sales in April, homes are still being purchased right when they hit the market. NBC News reported, “According to Zillow, nearly half of the people who sold homes last month accepted an offer within a week.”

TikTok and Real Estate

Tue, 06 Apr 2021 17:19:01 GMT

TikTok and Real Estate

When the pandemic started, I got hooked on TikTok. If you haven’t joined TikTok, you are missing out. TikTok is a social media platform with a variety of video content. It gave me a place to escape from the stress of the real world. TikTok includes a variety of videos relating to real estate including home hacks, cheap redecorating tips, and much more.

Recently, a video appeared on my main feed that I thought was very shocking. The name on the profile is “Zillow Gone Wild.” The video content of the profile consists of real estate properties with interesting design and decor choices. This particular video showed a slideshow of photos of the home for sale, but once you see the bathroom you notice that is actually part bathroom, part kitchen.

Watch the video here - https://www.tiktok.com/@zillowgonewild/video/6940748024196992262?lang=en&is_copy_url=0&is_from_webapp=v1&sender_device=pc&sender_web_id=6946308940084282885

Do yourself a favor and enjoy your day by watching some of the TikTok videos.

Pandemic Changes in Real Estate

Wed, 10 Mar 2021 18:25:59 GMT

Pandemic Changes in Real Estate

Mortgage rates are expected to rise as the pandemic recovery starts. Real estate professionals believe that people will be eager to purchase homes soon to take advantage of the low rates before the rise begins.

Many lending companies have had to make some changes due to the pandemic. Conventional loans used to finance investment properties are predicted to get more expensive and harder to obtain. Recently, Fannie Mae released news that starting April 1, 2021, their lending criteria will be stricter for investment/ second home financing. Only 7% of Fannie Mae portfolio will be investments/ second homes. According to Housingwire.com, these changes come due to recent “amendments to our senior preferred stock purchase agreement.” Each loan application will be run through an underwriting program to determine if the applicate is eligible.

Read the full article here - https://www.housingwire.com/articles/fannie-mae-tightens-
standards-on-investment-properties/

ReCasa Financial Group funds all loans in house, so we continue to keep the same lending criteria we have had in place for years. We will review a file submission in a timely manner and personally communicate with the client through the closing process, draw request process. We are always on hand to meet the needs of investor clients looking to purchase and improve property.

Online Companies Purchasing Real Estate

Tue, 09 Feb 2021 18:32:10 GMT

Online Companies Purchasing Real Estate

Carvana is an online company that uses technology to purchase vehicles then resell them. This route creates less hassle for the seller since an instant offer is given once vehicle specifics are entered online. There are companies doing similar things with real estate properties. Zillow Offers and Opendoor are two examples.

While companies like Zillow Offers create an easy route and quick sale for real estate sellers, it could mean a lower profit. One of the big advantages to this route is that there is no face-to-face interaction, which is helpful with restrictions from the pandemic ongoing. There is also no need for open houses and showings. This can be helpful for those families with pets, little kids, and busy lives. At what point is it beneficial to sell your real estate investment property to a buyer like Zillow Offers?

Generational Wealth and Real Estate

Wed, 06 Jan 2021 18:38:02 GMT

Generational Wealth and Real Estate

Recently, I was speaking with my husband about creating generational wealth. We have two daughters and would love to have something set up for their financial future. The thought of using real estate as a vehicle to achieve that came to the forefront of my mind.

I realized that a family friend was doing just that. He and his two teenaged sons purchased an investment property. The three worked together to rehab the property, and they continue to work together to take care of the property. Whether rehabilitating to sell or retain as a rental, successful projects can, over time, exponentially improve one’s financial standing and help build wealth that can be passed on to future generations. This also teaches the next generation the importance of planning and gives them an example of ways to improve one’s financial self. It is never too early to teach your children smart financial habits.

Forbes published an article explaining how real estate builds generational wealth. While the article uses the Vanderbilt family and the Rockefeller family as examples, you can see how your results can be similar even on a smaller scale.

Read the article here - https://www.forbes.com/sites/forbesrealestatecouncil/2021/01/07/why-real-estate-is-one-asset-that-builds-generational-wealth/?sh=3a929c4f1f68

What better way to start 2021, than starting to create generational wealth through real estate investing!

Preparing for 2021

Mon, 14 Dec 2020 16:47:00 GMT

Preparing for 2021

Even through a national pandemic, the real estate industry continues to remain steady. With low mortgage rates, many homeowners were able to refinance in 2020. Some real estate investors who owned rental property, were able to receive support through local and federal programs that lessened the burden of tenants that couldn’t afford to pay.

The COVID-19 impact going forward remains a mystery. Will restrictions in some locations be in place until the spring? When will vaccine options be widely available? While we have no idea what is in store for 2021, it is always important to set goals for yourself, personally and professionally.

According to many real estate professionals, the 2021 outlook for the housing market is upbeat. Real estate professionals believe the demand for housing in conjunction with low mortgage rates, will keep the real estate industry strong. Those that put off the family move in 2020 may move forward with their plans next year. Also, the number of foreclosures on the market will increase in the next few months once moratoriums are lifted, which should provide investors opportunities to find suitable projects.

What are your goals for 2021? Have you thought about how your real estate investing strategy might change in 2021 and are you prepared for expected inventory to come available?

The post Preparing for 2021 first appeared on ReCasa Financial Group .

Seeing the Good in 2020

Wed, 11 Nov 2020 18:15:00 GMT

Seeing the Good in 2020

2020 has been an interesting year. When thinking about the past 11 months, many people think of the hard times, but we want to focus on the good. So many great things have happened so far in 2020. Communities have come together to thank people who worked on the front lines during this pandemic. Animal shelters have become empty as more and more people started adopting and fostering pets. Various companies have shifted productions to personal protective equipment and hand sanitizer. There are a few ways that 2020 may have tried to take us down, but as a nation, there are many ways we stood up to show that there is still good in the world. What are the good things that you can take from 2020?

2020 marked our 20 ^th year of being in business. ReCasa Financial Group would like to say thank you to our customers and their teams whom we have worked with to complete deals over the years. We are grateful that you have chosen to have ReCasa Financial Group as part of your real estate investing team. We wish you and your family a great rest of 2020 and an even better 2021.

The post Seeing the Good in 2020 first appeared on ReCasa Financial Group .

Real Estate and Virtual Staging

Mon, 19 Oct 2020 17:16:00 GMT

Real Estate and Virtual Staging

Recently, I was doing some research on the real estate market and COVID-19 when I came across an article focused on virtual staging for real estate investors . With the uncertainty of the pandemic it seems that more and more people are using virtual staging for their real estate property sales. Virtual staging is when a home’s interior is modified through a graphic editor. There are companies that will do virtual staging, but there are also apps you can use to do it yourself. Virtual staging can add furniture and décor to rooms, but it can also remove furniture already in a room. In many cases, virtual staging is less expensive than home staging.

According to the National Association of Realtors , 40% of real estate agents reported that a staged real estate property was effective in helping sales including a sales price increase of 1% to 5%. Staging helps potential home buyers visualize themselves in the space since people usually start their house shopping online.

Have you used virtual staging for any of your real estate
investment properties? If so, did you
find it beneficial?

Donating Items

Thu, 10 Sep 2020 14:03:00 GMT

Donating items

Some real estate investment properties need little rehabbing , while some require new appliances, floors, windows and much more. When you replace something in a rehab investment property, what do you do with the original item? What about items that were just left behind? Some items may be trash, but others may be in decent condition.

More and more people are starting to find old pieces of furniture and restoring them to resell. If this is not a good ROI project for you, then I believe the best option would be to donate these items. Some examples of items that can be donated include:

There are many different organizations that accept home
appliances and furnishings donations. The
following are a few great places to donate those items in good condition. As an added bonus, the following companies offer
to pick them up.

What organizations would you add to this list?

The post Donating Items first appeared on ReCasa Financial Group .

No Changes for ReCasa Financial Group

Thu, 20 Aug 2020 22:01:00 GMT

ReCasa Financial Group has been getting questions regarding how our rehab investment financing guidelines have changed since COVID-19. Fortunately, ReCasa’s guidelines have not changed, and interest rates are low!

Some of ReCasa’s real estate rehab loan guidelines include:

Many financial institutions have had to make changes to their lending departments due to COVID-19. ReCasa Financial Group has been lending to real estate investors for over 20 years. We have survived a recession and now a pandemic. We are proud to say that our guidelines have not changed over the past few months, and that we are able to help many new clients as their original financing options are no longer available. We are also working with more and more brokers to help their clients receive the financing they need to invest in real estate across the country.

Call ReCasa Financial Group to receive the full rehab loan
package – 614.221.6770.

The post No Changes for ReCasa Financial Group first appeared on ReCasa Financial Group .

Painting Can Add Value to Real Estate Property

Tue, 21 Jul 2020 14:35:00 GMT

Many people know that updating a home’s kitchen and bathroom adds value, but there are other easier ways of doing so too. I recently watched a video that mentioned painting your home’s front door black or a shade of charcoal would increase the property’s value by $6,000, so I had to look into this rehab tip .

According to Zillow and their analysis of paint colors, the following are a few ways to paint your real estate property to increase the value.

What inexpensive and easy ways have you rehabbed your investment property to add value ?

The post Painting Can Add Value to Real Estate Property first appeared on ReCasa Financial Group .

Working Remotely

Wed, 10 Jun 2020 16:18:00 GMT

Working in the real estate investment industry, you may already be working from home. However, with the recent Coronavirus, you are probably working remotely more often than before. Previously, you may have met up with colleagues for coffee to discuss business, but now, you might be conducting these meetings over video conferencing.

Do you have a specific space in your home, like a home
office, to complete work?

As people have been working from home the past few months, it might show some companies that there are more benefits from working remotely than having an office building. My friend recently was told she would be working from home indefinitely as the company sold their office building. She had to transform one of the bedrooms in her home into a home office. Do you think more companies will follow this path and have employees work from home?

Zillow recently published a post regarding setting up the perfect home office. It is important to set up a space in your home specifically for working remotely. What tips would you give these people who now have to work full-time from home?

You can read the post here – ht tps://www.zillow.com/resources/stay-informed/2020/05/29/5-ways-to-make-your-home-office-work/

The post Working Remotely first appeared on ReCasa Financial Group .

Favored Investment Choice

Tue, 19 May 2020 19:01:00 GMT

When you work for someone, you usually get affirmation from time to time that you are doing a good job. When you are your own boss, it can sometimes be less clear. As real estate investors , you can certainly see that you are having success from your ROI results, but sometimes reassurance is needed.

I recently read this article detailing the importance of investing in real estate , and how many Americans agree that it is a reliable way to invest money . According to the article written by Sully Barrett, real estate investing remains the most favored way to invest money for Americans, compared to stocks, mutual funds, gold, bonds, savings accounts, and CDs. CNBC’s Barrett reported, “Real estate’s popularity has not waned; it has been the most favored investment since 2013 and the top investment choice since 2016.” While stocks have dropped during the coronavirus, real estate has been steady.

Read the article here – https://www.cnbc.com/2020/04/24/americans-down-on-stocks-say-real-estate-is-best-investment-gallup.html

In addition to real estate, do you invest your money
elsewhere?

The post Favored Investment Choice first appeared on ReCasa Financial Group .

Rehab Before and After

Fri, 24 Apr 2020 14:18:00 GMT

If you are on social media, you have probably seen the trend of photo sharing. People are sharing their senior high school photos to honor this year’s high school seniors. Photos of mothers and fathers and their children are being shared to compare their looks. People are sharing their first photo ever taken with their significant other and comparing it to a recent one.

ReCasa Financial Group has been financing rehab investment projects since our founding in 2000. We continue to offer our 100% rehab investment financing and our areas in which we lend continues to grow. Over these two decades, ReCasa Financial Group has financed thousands of real estate rehab investments and we have seen our share of property transformations.

We wanted to join in on the fun, and share a before and after photo from a rehab project that one of our investor clients recently completed. One photo below shows the before picture of a kitchen and the other photo shows the finished and staged kitchen. We would love to see some of your before and after photos as well. Which is your favorite before and after rehab investment project?

The post Rehab Before and After first appeared on ReCasa Financial Group .

Preparing for COVID-19

Mon, 16 Mar 2020 16:44:00 GMT

COVID-19 seems to be causing panic around the United States. In Ohio specifically, stores are running out of hand soap, hand sanitizer, disinfecting wipes, and toilet paper. Also, in Ohio, schools are shut down and sport events are limiting the number of attendees. Some companies are even sending employees home to work instead of being in the office. Schools and companies are taking steps to prepare themselves for this coronavirus . What is happening in your area?

As a real estate investor , how are you preparing your company for COVID-19? Of course, the top steps to follow to avoid this coronavirus include washing your hands and staying away from others when feeling sick. However, as a business owner what about making sure your employees remain healthy and your real estate investment business stays successful. Do you believe it is important to stock up on supplies? What happens if your employees take time off? How will you get your rehab completed in a timely manner to earn the highest ROI ? I have heard from many parents that they are concerned about what to do if daycares are shut down. Many parents are unable to take time off work and/or take their children with them to their place of employment. Owning your own business, how would you handle your children not being able to attend daycare?

There are some many factors to consider when preparing for something that is causing panic around the world. It never hurts to prepare yourself and your real estate investment business to the possibilities that could take place due to COVID-19. It may be important to take the next few days to set a plan in place to answer those what ifs surrounding this COVID-19.

Even though this article by the National Association of Realtors is directed towards realtors, there are many ideas available that could be beneficial to you too. – https://www.nar.realtor/coronavirus-a-guide-for-realtors

The post Preparing for COVID-19 first appeared on ReCasa Financial Group .

Real Estate and the Coronavirus

Tue, 18 Feb 2020 20:10:00 GMT

The coronavirus has been a news topic in the United States for a few months now. This recent coronavirus is a new type compared to the virus from the 1960s. This new strand of the coronavirus was first noted in China in December 2019.

Lately, the news has been reporting that the coronavirus is disrupting different industries around the United States, not just businesses in China. The Fox Business website published an article reporting how the coronavirus is affecting luxury real estate markets in New York and California, as China has been an important source for the luxury real estate market . The continuation of this virus could mean a bigger decline in sales. The current ban on any foreign nationals who visited China in the past two weeks in addition to canceled flights to the United States from China will keep impacting the real estate market.

Read the article here: https://www.foxbusiness.com/real-estate/coronavirus-new-york-california-luxury-real-estate

Realtor.com reported that mortgage interest rates have dropped due to the coronavirus. With this drop, many are refinancing their mortgage loans causing applications to be the highest in seven years.

Will the coronavirus affect your real estate investments ?

The post Real Estate and the Coronavirus first appeared on ReCasa Financial Group .

January Becoming Busy Real Estate Month

Fri, 17 Jan 2020 21:48:00 GMT

Spring has been known as the popular season for real estate shopping , but it seems that it is changing. Over the past few years, more and more people are starting their housing search earlier and earlier. The housing shortage is making the real estate market more competitive and causing homebuyers to start looking earlier than spring. According to Realtor.com, U.S. housing inventory is expected to be at a record low in 2020.

According to Realtor.com, January is starting to become a big month for real estate sales . It is reported that in 2019, “January was the busiest month on the site in 20 of the largest 100 metropolitan markets.” This number of views is up from January 2019, and is expected to increase in January 2021.

Read the full article here: https://www.realtor.com/research/january-housing-market-new-april/

Which month in 2019 was the most successful for you?

The post January Becoming Busy Real Estate Month first appeared on ReCasa Financial Group .

Planning for the Unexpected

Wed, 18 Dec 2019 14:00:00 GMT

As real estate investors, rehabbing your investment property could be as simple as updating the fixtures to as demanding as drywalling and replacing flooring. When planning the list of improvements for the property, do you plan for the unexpected? In unexpected situations, a real estate investor needs to be prepared for additional costs and time.

At ReCasa Financial Group , we encourage all our borrowers to have cash reserves available while rehabbing for any unexpected situations and any budget overages. With liquid reserves, borrowers are able to access funds immediately without having to increase the loan amount. This allows for the rehab project to continue without delay and saves the borrower money in the long run.

What are your experiences with unexpected budget shortfalls when it comes to rehab investing ?

The post Planning for the Unexpected first appeared on ReCasa Financial Group .

Project Destined

Thu, 14 Nov 2019 18:33:00 GMT

Many professionals are passionate about their career, and hope that younger generations will follow in their professional footsteps. With your real estate knowledge and experience, you are able to help mold the minds of others. Two real estate experts did just that. Cedric Bobo and Fred Greene are the co-founders of Project Destined.

“ Project Destined is 501(c)3 non-profit that administers a real estate based education program focused on empowering underserved communities through training in financial literacy, total health and leadership development.” Through this non-profit, inner-city students experience real world real estate investments within their own community. Currently, this program is only offered in certain areas including Memphis, Miami and New York City.

The program teaches real estate and financing topics to the students through an online platform. Then they form teams where each team concentrates on one real estate property . These teams create an investor pitch which they present to a panel of real estate experts. Not only are these students gaining real estate knowledge, experience and connections, but the winning team has the opportunity to earn a cash scholarship up to $5,000. According to CNBC , “Some of the kids from this program have gone on to get internships and even jobs in the real estate sector.”

Does your community offer anything similar to Project Destined? The Project Destined website allows you to vote for their next city where they will expand this non-profit.

The post Project Destined first appeared on ReCasa Financial Group .

Connecting with People Today

Fri, 18 Oct 2019 17:46:00 GMT

There are countless ways to connect with numbers of professionals in any industry. There are ways to connect in person and there are ways to connect online. You will have to put in the effort as good connections take work. With today’s technology, it is easier to meet more and more people in any industry. You can meet people not only from your location, but with people from around the world.

Learn what connections you should have as a real estate investor – /building-your-team-who-the-seasoned-investor-knows/

New connections can be great resources for real estate investors . People can be helpful for your business, or they may offer referrals. No contact is a bad contact to have. It is a good idea to find places where you can connect with people in your industry and places where there may be a mixture of professionals.

Below are some resources that we have found to be successful for us as a real estate financing company.

What additional resources should we know about?

The post Connecting with People Today first appeared on ReCasa Financial Group .

A Brady Bunch Renovation

Thu, 19 Sep 2019 23:33:00 GMT

Who watched Brady Bunch when they were younger? Well, did you hear what happened to the memorable Brady Bunch home? In November 2018, HGTV announced plans to restore the Brady Bunch house to the way it looked in the show. This exact home is the one used when the television show would display the exterior of the house. The inside of the house, was actually filmed on a set. In HGTV’s A Very Brady Renovation , some of the Brady Bunch worked with some of HGTV’s best including Drew and Jonathan Scott to renovate this iconic property.

Before pictures of the Brady Bunch home – https://www.onecountry.com/lifestyle/the-brady-bunch-house-pictures/

After pictures of the Brady Bunch home – https://hip2behome.com/2019/06/02/brady-bunch-house-renovation-complete/

How do you feel about this renovation ? Do you know what has happened to other iconic, television homes?

The post A Brady Bunch Renovation first appeared on ReCasa Financial Group .

Renovation Permits and Requirements

Wed, 14 Aug 2019 19:44:00 GMT

I currently reside in a 3-bedroom, 2.5 bath house. We have an unfinished basement and recently discussed the idea of finishing it to add two bedrooms and a living space. We began our research on requirements for residential renovations , such as adding additional sleeping and living space. Legal requirements vary by each state, so we needed to look at our specific area.

To start any basement or electrical renovations we were considering, we would need to get permits. According to Zillow , “A lot of people start by talking to an architect or a designer without understanding their options. These professionals will charge you for information that the city or county can tell you for free. Go to your governing municipality’s planning office, tell them what you’re think about doing and ask what your options are.” The municipality’s planning office would be able to tell you the proper steps in order to add additional living space to a current residential property .

In addition to these permits, this department should be able to tell you the requirements for a room to be considered a bedroom. Most areas have a specific room size requirement, egress requirements, and a height requirement. This is important to understand before listing a property as an additional room can increase the property’s value .

In most areas, if the proper permits are not issued, the owner can be charged a fee and may have to remove any and all renovations that were completed. Our county has a list posted of permits needed in order to start renovations on a residential property. Permits ensure building codes for constructions, plumbing, electrical, heating and cooling, and other property aspects meet the minimum standards, as well as to reassure future homeowners that they purchased a safe property.

What other steps are important to take before starting renovations?

The post Renovation Permits and Requirements first appeared on ReCasa Financial Group .

100% Rehab Investment Financing and Immediate Loan Draws Offered by ReCasa

Thu, 18 Jul 2019 17:30:00 GMT

You certainly know by now that ReCasa Financial Group is unique in private lending and hard money circles by offering 100% purchase and 100% rehab financing . What you may not know is that ReCasa also provides a first draw to investors the day after their loan closes. This prevents an investor from having to come out-of-pocket with initial costs related to the repairs. This allows for qualified investors to truly purchase, rehab, and then sell or rent a property with no money down and no personal money needed to begin the rehab process.

Waiting on loan draws can decline a real estate investor’s possible return on investment ( ROI ) because it delays their ability to complete the project. As a real estate investor, if you are not able to obtain your loan draws immediately after closing, you either have to wait to start rehabbing your investment property , or will need to use your own money. With ReCasa Financial Group’s rehab loan program, you can start growing your ROI instantly.

Read more about calculating ROI here – /what-will-your-investment-give-you-in-return/

As a real estate investor, what do you want from your rehab loan?

The post 100% Rehab Investment Financing and Immediate Loan Draws Offered by ReCasa first appeared on ReCasa Financial Group .

Homes Need Rehabbed to Adjust to Today’s World

Mon, 17 Jun 2019 20:27:00 GMT

Forbes recently released an article discussing the importance for real estate renovations on older homes and their success for real estate investors . Many of America’s homes were built years ago and are outdated for those looking to purchase a home today. According to the National Association for Home Builders , 52% of homes were built before 1980. These older homes are usually not energy efficient and usually do not have open floor plans, things that current house buyers are typically looking for in a new property. As a rehab investor , you should make your rehab investments adapt to today’s technology.

Read the Forbes article here – https://www.forbes.com/sites/forbesrealestatecouncil/2019/06/12/how-something-old-can-become-something-new-again/#1068ce3d7fb9

With the cost and regulations associated with new builds, rehabbed properties are becoming more successful, especially since new builds don’t always appeal to everyone. We have mentioned in previous posts that kitchen and bathroom renovations usually have the highest return on investment , but have you had success with updating home offices? “According to Gallup , 43% of Americans work remotely at least part of the time.” This is one of the points that Forbes mentions as something to consider when rehabbing an older investment property . What else have you noticed about rehabbing older homes?

The post Homes Need Rehabbed to Adjust to Today’s World first appeared on ReCasa Financial Group .

Customer Service is Important

Mon, 13 May 2019 21:02:00 GMT

When you research people and/or companies to work with, is customer service something you take into consideration? If not, it should be. It is important to work with people you trust and can get a hold of when needed. You should always look at recommendations when considering a new person or company to build a relationship with. Not only should you follow this for your rehab investment business, but for personal areas too.

You don’t want to work with realtors , brokers , home inspectors, insurance agents, and other real estate professionals that are impossible to get in touch with as this could hold up the process of investing in a property, which in the end could cost you more money.

One great aspect of working with ReCasa Financial Group is the company size. We may be a smaller company, but that makes us unique. When you call ReCasa to speak to someone regarding a loan, you do not go through a never-ending animated recording including pressing multiple numbers to be connected to someone (or if you are like me, pressing 0 until someone answers). When you call ReCasa, you will talk to a live person. We take pride in being able to speak with our customers and knowing our customers personally, instead of treating someone as a number. We are there to help real estate investors get the process of financing the rehab quickly.

Meet ReCasa Financial Group here – http://recasafinancial.com/meet-recasa/ .

We still do things similar to larger financing companies. We still fund large loan amounts. We still close a large number of loans each year. We also service all the loans, so you know who is handling all your paperwork. What do you know about the company servicing your real estate loans?

The post Customer Service is Important first appeared on ReCasa Financial Group .

Common Questions for ReCasa Financial Group

Tue, 02 Apr 2019 18:29:00 GMT

Lately, I have been getting questions from real estate brokers regarding brokering our 100% rehab financing . We love working with real estate mortgage brokers , as well as other real estate professionals . Mortgage brokers can earn up to 2 points on every funded loan with ReCasa Financial Group. Real estate investors create recurring business, so mortgage brokers can keep earning broker fees with repeat business. Also, we can personalize our rehab loan package with a broker’s contact information as soon as we build a working relationship with him or her.

Find out more here – /mortgage-brokers-can-earn-up-to-2-points-for-each-rehab-loan-closed-with-recasa-financial-group/

I have also been asked what happens to the rehab loan after the 9-month term. The easiest thing for a real estate investor to do, is to refinance the loan if they are unable to pay it off at the end of the term.

Find out more here – /exit-strategy-for-real-estate-investors/

What other questions do you have about building a relationship with ReCasa Financial Group?

The post Common Questions for ReCasa Financial Group first appeared on ReCasa Financial Group .

Unusual Items Found in Properties

Tue, 19 Mar 2019 20:49:00 GMT

Some abandoned and foreclosed properties contain items left behind from the previous owner. Furniture, clothes and trash are items that are commonly left behind, but have you ever found interesting items hidden within the house?

Some people have reported finding:

I have always hoped to find something interesting when moving into a new property, but so far, no luck. What is the oddest item you have ever found in a rehab property ?

Read one of the articles regarding unusual items found in real estate properties here:
https://www.houzz.com/magazine/you-wont-believe-what-these-homeowners-found-in-their-walls-stsetivw-vs~14620335

The post Unusual Items Found in Properties first appeared on ReCasa Financial Group .

Avoiding Frozen Pipes at Your Investment Property

Wed, 13 Feb 2019 20:22:00 GMT

A few weeks ago, Ohio experienced some very cold temperatures. Many renters and homeowners were nervous about the potential of frozen pipes. Of course, many people took proper steps to help with avoiding frozen pipes, including leaving cabinet doors open in cooler areas of the property and turning faucets on to a drip in cooler areas of the property.

Read The Rooter Works Plumbing & Drains ’ Facebook post of great ways to avoid frozen pipes.

Weeks later, I heard about a property in my town which is vacant that had an alarm sounding as well as water pouring from an outside spigot. Luckily, a neighbor noticed this and made a post on a social media site wondering if anyone know who owned the vacant house so they could alert the owners of what was happening. Many people gave the neighbor ideas on how to figure out who owned the property.

How do you protect your investment properties from something like this happening? Real estate investing is not your whole life, so you are not able to stay at your investment properties 24/7. Do you take any precautions in case something like the alarm and water spigot were to happen to your investment property? Do you introduce yourself to the neighbors and give them contact information if they were to witness anything unusual? Do you set up cameras around the property so you can keep an eye on everything? As always, it is important to have insurance on your investment property in case that is too late to prevent events like this.

Read our blog post, Protect Your Rehab Investments , to learn about insurance options for your investment properties.

The post Avoiding Frozen Pipes at Your Investment Property first appeared on ReCasa Financial Group .

Short-Term Rentals

Thu, 17 Jan 2019 19:00:00 GMT

We usually discuss rehab investments as properties that are sold or rented out to long-term tenants, and rarely discuss investment properties as short-term vacation properties . More and more people are turning towards homes instead of hotels for getaways. These types of properties can easily be found on websites such as Airbnb , VRBO and HomeAway .

It is important to look at the ROI for the property as a short-term rental house compared to having full time renters. Depending on your location and the number of current vacation home rentals, some properties will be more successful as a short-term rental. How do you determine how a property will be used? If you currently have an investment property as a short-term vacation property, what are the benefits of having one?

Recently, more and more cities are passing restrictions on short-term rentals . Some cities are looking to ban these types of rentals in residential areas due to housing shortages. What could this mean for the real estate investment industry ?

The post Short-Term Rentals first appeared on ReCasa Financial Group .

Preparing for Real Estate Investing in 2019

Thu, 13 Dec 2018 19:51:00 GMT

For many people, December is a hectic month filled with holiday preparations and celebrations. Between the busy times of the month, some real estate investors like to tie up loose ends for the year and start preparing for the upcoming year and their real estate rehab investments .

What do you consider your fiscal year to be? January to December? Or do you start from when you began your business? Whatever your fiscal year is, it is important to start and close the year similar each time.

Read the Forbes article about real estate investing and the end of 2018 here – https://www.forbes.com/sites/forbesrealestatecouncil/2018/11/28/set-up-for-success-in-2019-13-real-estate-investment-moves-to-make-before-2018-ends/#11e1577d6cf6

One of the most important parts of preparing for the next year of real estate investing , is to understand what is predicted for the real estate industry . According to Forbes , in 2019, “Mortgage rates will continue rising,” “Millennials will keep buying homes — despite those rising rates,” “Overall home sales will drop,” and “National rents will rise, but apartment construction could ease renters’ pains.”

Read full article here – https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#64abe5d70d9a

With these predictions for 2019, will you be making any changes to the way you invest in real estate?

The post Preparing for Real Estate Investing in 2019 first appeared on ReCasa Financial Group .

2018 Q2 and Real Estate Investing

Wed, 07 Nov 2018 19:23:00 GMT

ATTOM Data Solutions released a motivating article in September for real estate investors . Even though these statistics are in regards to the second quarter of 2018, the article reports interesting information regarding the real estate industry .

Some interesting takeaways from the article include:

– “Buyers have plenty of choices and only the top-quality homes are selling. This means investors need to fine tune their operations and pricing models and deliver model-like homes in order to compete.”

– “‘ Financing can be the answer to making more profit overall: an investor that nets $30,000 per flip after paying $5,000 to $10,000 for financing costs can make $90,000 on three flips with the same amount of cash required to make $40,000 on a single flip . For some experienced investors, it’s possible to do 20 to 30 flips per year with financing versus 10 or less using all cash.’”
– Read our blog post about this topic here – /what-will-your-investment-give-you-in-return/

– “States with the highest average gross flipping ROI in Q2 2018 were Louisiana (102.5 percent), Pennsylvania (100.3 percent), Ohio (81.4 percent), Maryland (76.1 percent), and Tennessee (74.9 percent).”

The article gives great information and graphics that pertain to the rehab investment industry . Read the full article here – https://www.attomdata.com/news/market-trends/flipping/home-flipping-report-q2-2018/ .

How do you think the rest of 2018 will play out for the real estate industry?

The post 2018 Q2 and Real Estate Investing first appeared on ReCasa Financial Group .

ReCasa Financial Group Testimonial

Mon, 15 Oct 2018 16:58:00 GMT

How many times do you seek recommendations for companies before you use them? Hopefully you have been taking our advice of doing your homework to research companies and professionals before using them. There are many sites dedicated to reviews of companies and professionals, and you can even resort to social media to find recommendations.

Recently, we received a testimonial from a mortgage broker , Justyn W. of NJ. He wrote, “ReCasa is absolutely one of our most valued resources for closing our deals. The program they offer is truly unique, but it’s not just about having the best program – it’s about actually getting deals funded, which they do.”

We would love for you to leave us a review here or on other sites , including our Facebook page . This will help us to better our services for you in the future.

The post ReCasa Financial Group Testimonial first appeared on ReCasa Financial Group .

Goals for Your Real Estate Investment Business

Tue, 04 Sep 2018 15:45:00 GMT

At the beginning of the year or fiscal year, did you make goals for your real estate investing business? Are you on track to meet your goals?

I read an article about a real estate investor who has set a goal to flip 300 Midwest properties within a year. He believes he can do it by hiring certain companies who can complete one project in one rehab property then move to the next property. He is hoping to find properties that he can add value to and sell quick.

Read the article here – http://www.chicagobusiness.com/residential-real-estate/guy-wants-be-king-flippers-midwest

Instead of number of rehabs completed within a year, you can set a goal by a certain ROI to reach. Goals for rehab investors that flip properties may be different from those who hold rehab properties . What other goals are good for real estate investors to set?

The post Goals for Your Real Estate Investment Business first appeared on ReCasa Financial Group .

Protect Your Rehab Investments

Thu, 09 Aug 2018 15:38:00 GMT

I have recently heard about a number of house fires in my area. When I was in grade school, our house caught on fire due to build up in our dryer. Luckily, we only had a little smoke damage, but it did put us out of our home for about 5 months. Whether it be from old wiring or leaving something on in the house accidentally, your investment property or your personal residence , house fires, big or small, are never easy. It is important to insure your real estate investment properties .

Here are some types of insurance coverage you might consider:

As landlords , do you require your tenants to have any insurance? What insurance do you carry for your rental properties ?

The post Protect Your Rehab Investments first appeared on ReCasa Financial Group .

Always Be Prepared To Buy

Wed, 18 Jul 2018 14:45:00 GMT

Some Ohio homes are currently selling within 24-48 hours. Most desirable, nationwide homes are gone within a week. This means that if you see a house you like, you need to act fast. Does this hold true for properties that need renovated? If this trend continues, this will be helpful for when you are renting or selling your investment property .

As we have mentioned in previous blog posts, it is important to have good connections with realtors . They can always give you a call when they find a property that they feel would be a good investment , even before the house goes on the market. In these situations, it is important to know how much home you can afford so you can jump on those properties. Being pre-approved for a loan will speed up the buying process , which means that you will have the possibility of a faster turn over rate.

Read our prequal blog post here – /benefits-of-a-pre-approval/

ReCasa Financial Group would be happy to prequalify you before you have your investment property picked out. Give Steve Radomile or Erik Williams a call at 614-221-6770 to find out more. We would be happy to supply you with a prequalification letter once approved, which can strengthen your offer when submitted to a seller or its agent.

The post Always Be Prepared To Buy first appeared on ReCasa Financial Group .

It’s Never Too Late

Tue, 26 Jun 2018 14:47:00 GMT

There are many reasons people to start investing in the real estate market . Some start investing as a way to save for retirement, others do it as a full-time business. According to Forbes.com , real estate is one of the top 4 places to invest in 2018. As mentioned in the article, there are many ways to invest in real estate, you just need to find the right fit for yourself and your lifestyle.

One local real estate investor personally lived in a property for 8 years then moved to a different home. He turned his first property into a rental . The profit he is earning from rent is going towards his retirement. He believes that real estate is the best way to invest his money for his future as well as his children’s.

It is never too late to start investing in real estate, whether it is to own multiple rental properties or to flip houses. If you haven’t already, read our previous post – /are-you-or-someone-you-know-missing-out-on-a-great-investment/ .

The post It's Never Too Late first appeared on ReCasa Financial Group .

What are You Reading?

Thu, 03 May 2018 17:46:00 GMT

If you have been reading our blog, you know that we find it very important that you do your homework when it comes to real estate investing . We post links to various websites with great information, but one thing we haven’t talked about is reading books. There are plenty of real estate how-to books and books written by successful real estate investors . Do you read any books pertaining to the real estate investment industry , how to, or self-improvement books? If so, we would love to know what books you have found helpful.

The post What are You Reading? first appeared on ReCasa Financial Group .

Bathroom Design Techniques You Should Avoid

Tue, 10 Apr 2018 19:13:00 GMT

As a real estate investor , you know that your biggest return on investment comes from rehabbing bathrooms and kitchens. Realtor.com posted an article, 9 Bathroom Decor Ideas Designers Really Wish You Wouldn’t Follow , that will help when planning your next rehab . These ideas may help you be more successful when selling your investment property . What other design techniques should real estate investors avoid when rehabbing investment properties?

The post Bathroom Design Techniques You Should Avoid first appeared on ReCasa Financial Group .

Building Relationships Through Real Estate Trade Shows

Tue, 20 Mar 2018 19:45:00 GMT

A couple of months ago, our rehab regional managers, Erik Williams and Steve Radomile, attended some real estate broker trade shows . They attended AAPL Annual Conference, Northeast Conference of Mortgage Brokers and Professionals, and NAMB National. They met with some brokers and made successful connections. As you know, in the real estate industry , it is important to build relationships with others in the business.

When attending trade shows, remember to…

Have you been to any trade shows that you found to be successful for your real estate investment business?

The post Building Relationships Through Real Estate Trade Shows first appeared on ReCasa Financial Group .

What if Real Estate Rehabbing was Part of the Olympics?

Fri, 23 Feb 2018 18:48:00 GMT

Have you been watching the Winter Olympics? It is fascinating to watch contestants from a variety of countries compete against each other in sports in which they are experts. These contestants are from all around the world and they all share one thing in common. As real estate brokers , realtors and investors you should consider yourself experts in the real estate industry and home remodeling . Just like Olympians, you prepare and train for your “sport”. You must study, plan and practice before entering the final project. If real estate business was part of the Olympics, what part of home remodeling would you compete in – kitchen rehab , bath remodel , dry wall instillation, home décor, staging?

The post What if Real Estate Rehabbing was Part of the Olympics? first appeared on ReCasa Financial Group .

Do You Find Inspiration from HGTV’s Fixer Upper?

Wed, 24 Jan 2018 19:57:00 GMT

Chip and Joanna Gaines of HGTV’s Fixer Upper , have started a huge following by many homeowners and renters . Many watch the television show and want to decorate their home’s interior as if Joanna Gaines was their interior designer.

This husband and wife duo has created a huge empire of flipping houses . Their television show is about a couple that finds a house to fix up. Chip and Joanna Gaines show them a few properties and describe how they will fix up the house. The homeowner decides which house they want to purchase. Once they close on the property, Chip and Joanna begin working on the house. Some of their design techniques include decluttering, open spaces, shiplap, white walls, updated front porches and back decks, and updated bathrooms and kitchens. In the end, the house is completely transformed to fit the owner. Chip and Joanna currently also have their own paint line and home décor line.

Read our blog post about ROI for Kitchens and Bathrooms here… /kitchens-and-bathrooms-remain-top-roi-improvements/

Many people are taking inspiration from their design techniques and incorporating them into their own homes including paint colors, lighting fixtures, décor and much more. As a real estate investor , do you use any of the trends from the show to rehab your properties? Unfortunately, Fixer Upper is in their last season. Do you think décor trends will change once the show is over?

The post Do You Find Inspiration from HGTV’s Fixer Upper? first appeared on ReCasa Financial Group .

Real Estate Investing in the Winter Months

Tue, 12 Dec 2017 16:10:00 GMT

Depending on where you reside, some real estate investors find the winter months to be difficult for their real estate investing business . Some rehab tasks are too hard to complete in the cold and sometimes real estate sales are not as competitive. On the flip side, if you buy an investment property in the winter, you can finish up the repairs and put the property on the market as the buying season starts in the Spring. As a real estate investor, how do you think the colder months affect your real estate investments ? How do you handle weather situations that cause a pause in your business?

The post Real Estate Investing in the Winter Months first appeared on ReCasa Financial Group .

What Scents are Best for Open Houses?

Thu, 09 Nov 2017 15:11:00 GMT

I have always heard that it is a good idea to bake cookies or any baked goods before having an open house or a real estate showing to give potential homebuyers a welcoming feeling. However, lately it is known just as a sales plow. This goes with candles and various scents as well. Some of these scents may be off putting to certain homebuyers, so it is good to tone down the smells in the house. According to Eric Spangenberg, Washington State University’s Dean of the College of Business, the best scents for real estate open houses include lemon, cedar, pine, and vanilla, while some of the worse include potpourri, gourmet foods, chocolate-chip cookies, and other baked goods. Many say your best bet is to stick to the smell of fresh air. As a real estate investor , what scents do you use for open houses? Have you known any to prove successful?

The post What Scents are Best for Open Houses? first appeared on ReCasa Financial Group .

ReCasa Financial Group Now Lending in Texas, Colorado, Virginia, Maryland and Florida

Mon, 23 Oct 2017 14:55:00 GMT

ReCasa Financial Group is expanding the number of states in which we offer 100% purchase and rehab financing !

We are now accepting loan requests in Texas (TX), Colorado (CO), Virginia (VA), Maryland (MD), and Florida (FL). This is in addition to the following states in which we already lend in: Ohio (OH), Pennsylvania (PA), New Jersey (NJ), New York (NY), North Carolina (NC), South Carolina (SC), Tennessee (TN), Kansas (KS), Missouri (MO), Indiana (IN), and Illinois (IL).

Our rehab loan finances 100% of the purchase, improvements, and soft costs on 1-4 family non-owner occupied properties. As always, we accept referrals from mortgage professionals !

If you are interested in more information or would like to begin the pre-approval process, please call 614-221-6770 or email Steve Radomile at sradomile@recasafinacial.com or Erik Williams at ewilliams@recasafinancial.com .

The post ReCasa Financial Group Now Lending in Texas, Colorado, Virginia, Maryland and Florida first appeared on ReCasa Financial Group .

Property Management Companies Help Real Estate Investors

Fri, 01 Sep 2017 14:53:00 GMT

Some real estate investors opt to have a management company handle their investment properties when they are kept for income, while others do it themselves or hire one employee to help with everything. Many real estate investors find property management companies helpful when their investment company is growing rapidly or they do it on the side as they do not have much free time, when they do not live near the investment property, and/or are not interested in the hands-on management.

Real estate management companies are helpful because

· They handle the application process and know the warning signs of a bad tenant

· They know the latest landlord-tenant laws

· They prepare the property for new tenants

· They determine the best rent rate, and handle rent payments and handle any late payments/ evictions

· They market your property effectively including writing ads and negotiating cheaper advertising rates

· They assist with taxes by acknowledging what can be tax deductions (Property management fees are tax deductible)

· They usually have an onsite maintenance team to handle problems and to update properties

As a real estate investor, do you use a property management company? Do you use them on 1-4 family properties, or larger properties? What do you find is the most useful aspect of having a property management company as part of your real estate investment team ?

The post Property Management Companies Help Real Estate Investors first appeared on ReCasa Financial Group .

Kitchens and Bathrooms Remain Top ROI Improvements

Mon, 14 Aug 2017 14:02:00 GMT

In the past, we have posted about certain property improvements that produce a high return on investment which has included updated kitchens and bathrooms, but a recent article from Angie’s List, shows a few additional improvements that can result in a successful ROI.

Read the full article here… http://www.sacbee.com/entertainment/living/home-garden/article161714703.html

These improvement suggestions were the results of surveying top remodelers and real estate professionals. These improvement suggestions include:

It seems that over the years, kitchens and bathrooms remain the top improvements to add ROI to a real estate property. According to HGTV.com , a minor bathroom remodel can have a 102% ROI and a minor kitchen remodel can have a 98.5% ROI.

What are your top improvements to produce high ROI?

The post Kitchens and Bathrooms Remain Top ROI Improvements first appeared on ReCasa Financial Group .

Drones are the New Trend for Real Estate

Mon, 17 Jul 2017 16:36:00 GMT

Some uses of the drone for real estate purposes include

How many are using drones for their real estate business? Do you find them helpful? Do you see this trend becoming the norm?

The post Drones are the New Trend for Real Estate first appeared on ReCasa Financial Group .

Mortgage Brokers Can Earn Up to 2 Points for Each Rehab Loan Closed with ReCasa Financial Group

Tue, 13 Jun 2017 15:26:00 GMT

As a lender , we get the common question “Can we get paid for referrals?” At ReCasa Financial Group , we work with licensed mortgage brokers so they can offer our 100% financing rehab loan to their clients. These mortgage brokers can earn up to 2 points on each rehab loan that closes with us. We take note of mortgage brokers and their clients, so that we do not take clients from mortgage brokers on additional loans closed. It is better if the mortgage broker contacts ReCasa Financial Group before the rehab investor starts any possible communication with ReCasa.

ReCasa Financial Group’s rehab loan program provides:

If you are interested in offering our rehab loan which is 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties in OH, PA, NY, NJ, NC, SC, TN, MO, KS, IN, & IL, give ReCasa Financial Group a call today at 614-221-6770. We would love to work with you and your clients!

The post Mortgage Brokers Can Earn Up to 2 Points for Each Rehab Loan Closed with ReCasa Financial Group first appeared on ReCasa Financial Group .

ReCasa Financial Group Offers Loan Servicing Options for Private Mortgage Portfolios

Thu, 18 May 2017 20:18:00 GMT

ReCasa Financial Group has always included additional aspects of real estate financing to their list of client offerings. Some of these facets include real estate loans ( 100% rehab investment financing and commercial financing option ), insurance, real estate investor education, and services offerings. ReCasa Financial Group offers loan servicing options for private mortgage portfolios for other private lenders . This loan servicing includes invoicing, payment monitoring, disbursing construction draws, and collecting on delinquent accounts. ReCasa is an expert in all aspects of loan servicing.

If you would like to learn more about our loan servicing option for private mortgage portfolios, feel free to give our office a call at 614-221-6770.

The post ReCasa Financial Group Offers Loan Servicing Options for Private Mortgage Portfolios first appeared on ReCasa Financial Group .

Homebuyers and Renters Looking for Sustainability and Environmentally Friendly Features

Fri, 21 Apr 2017 16:17:00 GMT

With Earth Day on April 22, it is a great time to think about how your real estate investment business is going green – both the rehabbing side and business aspect.

Regarding rehabbing properties , according to a recent Chicago Agent Magazine’s article, 9 stats that show homebuyers want green technology , “71 percent of homebuyers say energy efficiency promotion in listings was very or somewhat valuable” and “56 percent of Realtors surveyed said clients are at least somewhat interested in sustainability .”

Some of these real estate green features include solar panels, dual pane windows, energy star appliances, high efficiency water heaters, low flow toilets, showerheads, and faucets. What sustainability and environmentally friendly features have you added to your buy/hold or fix/flip properties? Do you see more homebuyers and renters looking for these features? Are these features adding value to your properties?

Are you changing any of your business aspects of your investing to help the Earth too?

Click here to read our previous blog post regarding going green here, /rehab-is-going-green/

The post Homebuyers and Renters Looking for Sustainability and Environmentally Friendly Features first appeared on ReCasa Financial Group .

Prepare for Taxes by Reading these Articles

Fri, 14 Apr 2017 20:26:00 GMT

10 Surprising Ways Real Estate Cuts Your Taxes , from Wise Bread , a bloggers forum that covers topics such as credit cards, personal financing, frugal living, life hacks, and much more, is a great read when preparing for taxes. As mentioned in this article, mortgage interest, real estate taxes, and mortgage insurance premiums are a few items that can be eligible for tax deduction .

If you haven’t already, we suggest going back to our previous blog posts over the years regarding taxes and reread them as well.

https://getrealestatefacts.wordpress.com/2016/03/21/preparing-for-taxes-as-a-rehab-investor/

https://getrealestatefacts.wordpress.com/2015/03/12/tax-deductions-for-real-estate-investors/

https://getrealestatefacts.wordpress.com/2013/02/12/tax-tips-for-real-estate-investors/

The post Prepare for Taxes by Reading these Articles first appeared on ReCasa Financial Group .

Rentberry Helpful for Investors?

Tue, 07 Feb 2017 20:29:00 GMT

Like we mentioned in our recent blog posts, How Will Interest Rates Affect Real Estate Investors in 2017 and Mortgage Rates and Applications Rise , mortgage rates are rising which may cause more people to rent. With the demand, should landlords use every means available to market their rental properties ? If so, what are these platforms? We know that there are Zillow and Realtor , but what about ones specific for renting?

After doing some research we came across Rentberry. A startup that began in early 2016. According to Rentberry.com , “Rentberry is a transparent home rental service and a price negotiation platform uniting tenants and landlords. It automates all the standard rental tasks from submitting your personal information, credit reports and custom offers, to e-signing rental agreements and online rental payments.” It also has a custom feature that allows potential renters to make bids on apartments.

Some investors have their own idea of a perfect website and/or app for their real estate investment business. Do you think Rentberry would be helpful? What other channels do you find helpful for your real estate investing ?

The post Rentberry Helpful for Investors? first appeared on ReCasa Financial Group .

Mortgage Rates and Applications Rise

Fri, 27 Jan 2017 20:28:00 GMT

To continue off last month’s post, How Will Interest Rates Affect Real Estate Investors in 2017? , mortgage rates are continuing to rise. According to Bankrate.com , as of Thursday, the average 30-year fixed-mortgage went up 9 points over the last week to 4.08%, and the 15-year fixed-mortgage went up 5 points to 3.21%. According to CNBC , even with the continuous rise in mortgage rates, people are still interested in buying homes. The number of mortgage applications has rose 4% from last week. Are you noticing any trends or changes in your area? If so, what are you seeing and how is it affecting the way you handle your rehab investment business ?

The post Mortgage Rates and Applications Rise first appeared on ReCasa Financial Group .

How Will Interest Rates Affect Real Estate Investors in 2017?

Mon, 19 Dec 2016 20:25:00 GMT

Currently mortgage rates are at the highest they have been in two years, according to CNBC . The federal interest rates are expected to increase in the future. This rise is due to the expectation of economy growth.

Home buyers will be paying a higher rate on a purchase , so they won’t have as much to complete repairs upon purchase. Does this make a completely renovated property marketed for sale by an investor more attractive to home buyers in the coming year?

With the rise in housing costs, rentals could be fought over. Property managers could benefit from higher occupancy rates and rent payments. Some also believe that within the next year, real estate loans with little down payment could become more readily available, which will help millennials. What do you think will happen for real estate investors in 2017? What is your game plan for 2017?

CNBC published a great article regarding this topic. Read the full post here… http://www.cnbc.com/2016/12/13/how-rising-rates-may-not-matter-for-housing.html

The post How Will Interest Rates Affect Real Estate Investors in 2017? first appeared on ReCasa Financial Group .

Do You Take Advantage of Black Friday Sales?

Wed, 16 Nov 2016 20:24:00 GMT

The post Do You Take Advantage of Black Friday Sales? first appeared on ReCasa Financial Group .

Rehab ROI Formulas

Mon, 24 Oct 2016 20:12:00 GMT

In 2013, we posted two different articles pertaining to these topics. If you haven’t yet, you should read them. You can use the formulas to determine if the next property will be worth the investment .

Click here for What Will Your Investment Give You in Return?…
https://getrealestatefacts.wordpress.com/2013/01/22/what-will-your-investment-give-you-in-return/

Click here for ReCasa Financial Group’s Property Bid Cheat Sheet…
https://getrealestatefacts.wordpress.com/?s=property+bid

How do you determine if you will get a good ROI ?

The post Rehab ROI Formulas first appeared on ReCasa Financial Group .

Are Condos a Good Rehab Real Estate Investment?

Fri, 23 Sep 2016 19:53:00 GMT

Before investing in condo, please remember these points.

Condos may be good for people who want to purchase a property and rent it out to occupants, but on the rehab side, condos may not be the best option.

What are your thoughts on rehabbing condos ?

The post Are Condos a Good Rehab Real Estate Investment? first appeared on ReCasa Financial Group .

Are You or Someone You Know Missing Out on a Great Investment?

Wed, 17 Aug 2016 19:53:00 GMT

Some people agree that real estate investing is the best way to invest your money compared to stocks and other retirement options . If you believe that flipping houses is a better investment for you but you have yet to start, now may be the perfect time to start rehabbing as rates are currently low.

U.S. News recently published an article regarding investing in real estate , Are You the Only One Not Investing in Real Estate ? It mentions the benefits of investing in real estate and how to get started. “The Bankrate Financial Security Index Survey released last week revealed 54 million Americans consider real estate to be the preferred cash investment for funds not needed for more than 10 years.” The article touches on many of the points we have discussed in previous posts including educating yourself and networking with the appropriate real estate professionals . We welcome you to read the article.

If you or someone you know is missing out on this great investment opportunity , please share this post with them.

The post Are You or Someone You Know Missing Out on a Great Investment? first appeared on ReCasa Financial Group .

Places for Real Estate Rehab Tips and Tricks

Mon, 18 Jul 2016 19:51:00 GMT

Where do you find your real estate rehab tips and tricks? There are various sources to find information regarding design techniques, industry updates, real estate financing , and more.

Some examples include:

Do you use any of these sources?

Make sure to:

The post Places for Real Estate Rehab Tips and Tricks first appeared on ReCasa Financial Group .

Staging Your Rehab Investment Property to Sell

Wed, 29 Jun 2016 19:38:00 GMT

As a real estate investor , you may have to make decisions when it comes to selling your rehab investment property . Staging may be one of those decisions.

When staging, make sure the home is well lit, decorations vary, and furniture is grouped in the middle of a room to make it look larger. Mirrors can be great additions to make rooms look larger and to reflect light to make rooms brighter.

Do you stage your property, or leave it empty? What tips do you have for other investors when it comes to staging?

The post Staging Your Rehab Investment Property to Sell first appeared on ReCasa Financial Group .

Is It a Seller’s Market?

Wed, 25 May 2016 19:37:00 GMT

Living in Columbus, Ohio, the phrase “ Seller’s Market ” has been used over and over lately. Real estate agents are marketing their business to homeowners (who might not even been looking to sell) because they have clients looking to purchase homes in certain areas.

The Indianapolis market is highly competitive. Homes are selling faster than they have in years. Many houses are getting multiple offers, so homebuyers are having to go well over the asking price.

According to CNBC and RentRange , “some of the most lucrative rental markets with rent gains of more than 17% annually and an average gross yield of nearly 11.27%” include Knoxville, TN; Syracuse, NY; and Charleston, NC & SC.

The post Is It a Seller’s Market? first appeared on ReCasa Financial Group .

Real Estate Investors Should Update Front Door and Landscaping to Help Sell Properties

Fri, 22 Apr 2016 19:30:00 GMT

Besides a “For Rent” or a “For Sale” sign in the front yard, curb appeal draws the attention of house hunters . Most homeowners know the basics of good curb appeal – cut grass and clear walkways and driveways, but have you ever considered something to draw the eye? What about a pop of color by painting the front door? Or planting colorful flowers or updating landscaping?

Landscaping can easily increase a property’s value from 5% to 11%. Make sure your landscaping matches the interior and exterior look of your house. You do not want conflicting design techniques. Make sure that the trees and flowers that are planted will receive the adequate amount of sunlight, and that they will bloom during the season in which you plan to rent or sell the property. Also, use a variety of plants to create diversity to make it interesting. What are some of your favorite plants to use at your investment properties ?

The post Real Estate Investors Should Update Front Door and Landscaping to Help Sell Properties first appeared on ReCasa Financial Group .

Preparing for Taxes as a Rehab Investor

Mon, 21 Mar 2016 12:54:00 GMT

As we have mentioned in previous blog posts, including Building Your Team: Who the Seasoned Investor Knows , it is important to add trusted professionals to your rehab investment team . One important team member to have is a CPA, or financial advisor. CPAs will be able to answer all your tax questions and direct you to get the most out of your tax return . Remember to keep all tax documents for up to at least 7 years.

CPAs will tell you to keep track of everything. Over documenting is better than missing something. It is important to keep all bills and receipts that pertain to your real estate rehab business . Your CPA will be able to tell you what is tax deductible and what category it should be placed under. To help with tax preparation, put your receipts into folders by category.

Read examples of tax deductions here .

Some self-employed individuals find it helpful to keep a calendar full of payments, purchases, miles, etc. This allows them to look back each month to see their business activity. How do you handle preparing for taxes?

The post Preparing for Taxes as a Rehab Investor first appeared on ReCasa Financial Group .

ReCasa Financial Group Can Help With More Than Rehab Financing

Fri, 26 Feb 2016 12:43:00 GMT

Ever wonder if ReCasa Financial Group offers real estate loans in addition to 100% financing for rehab investment properties? Good news! We do for those in Ohio, Pennsylvania, and Indiana.

If you need cash out, need to refinance because the loan has matured, need to pay off outstanding debts, and/or need a loan that does not fit the cookie cutter bank loan, ReCasa can help. The maximum term is 24 months, and the program includes purchase, refinance and construction costs.

Contact Erik Williams at ewilliams@recasafinancial.com or 614.221.6770 x 245 for your financing needs.

The post ReCasa Financial Group Can Help With More Than Rehab Financing first appeared on ReCasa Financial Group .

ReCasa Financial Group’s In-House Contact for Your Insurance Needs

Fri, 29 Jan 2016 09:31:00 GMT

Recently, Detwiler-Brofford Insurance , Inc. opened a new location at 130 East Chestnut Street, Suite 200, Columbus, OH 43215 . ReCasa ’s Product and Support Manager, Sonya Wasmer has an added position as an Insurance Producer with Detwiler-Brofford Insurance, Inc. Wasmer has 3 years of insurance experience, and over 16 years of exceptional customer service experience. She is excited to help clients save money by getting the best possible coverage and service. She will evaluate your specific situation and provide the best insurance value for you. Wasmer offers life insurance and property/casualty insurance for auto, home, dwelling fire, builder’s risk, along with any other assets you would like to protect for individuals, families and businesses in Ohio, Illinois, Indiana and Pennsylvania.

As real estate investors , a Builder’s Risk policy is ideal as it is an insurance policy that is designed to cover property in the course of construction. It covers the existing building, along with newly- renovated property . It is typically written in combination with General Liability , which is an insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable.

Please contact Sonya Wasmer for your insurance needs.

Sonya E. Wasmer
(614) 300-2883
sonya@detwilerinsurance.com
130 E Chestnut Street Suite 200
Columbus, OH 43215

The post ReCasa Financial Group’s In-House Contact for Your Insurance Needs first appeared on ReCasa Financial Group .

Tips for Selling Your Investment Property During the Winter

Fri, 11 Dec 2015 10:57:00 GMT

Some investors may take time off during the winter season because they are afraid of the winter real estate market , but it could be one of the best times to sell a property. Homebuyers looking to purchase a home during the winter are serious buyers and have limited inventory to choose from, allowing you, as the seller, to have an advantage. Below are a few useful tips to help you sell property during the winter season.

What other tips would you add to this list?

The post Tips for Selling Your Investment Property During the Winter first appeared on ReCasa Financial Group .

Rehab Investing Benefits Children

Wed, 25 Nov 2015 10:20:00 GMT

We all know that real estate investing can be financially beneficial, but if you are a parent or hope to be one someday, have you ever considered the benefit it could have on your children? You may have thought about ways to teach your children to save, but what about investing their money? The article below explains more about how real estate investing can teach your children about financial principles.

“Even if the concepts are simplified for their sake, you can explain to them how investing works and how it can grow their money for the future.”

5 Ways to Use Real Estate Investing to Teach Your Kids About Finance

Are there other ways that real estate investing can help you teach your children?

The post Rehab Investing Benefits Children first appeared on ReCasa Financial Group .

ReCasa Financial Group’s Rehab Investor Earns over $80,000 Profit on Flip

Thu, 15 Oct 2015 09:10:00 GMT

Rehab investing can be very rewarding through hard work. Most of our rehab investors are able to gain large returns on investments by doing their homework, and utilizing a team of successful real estate professionals .

Read about creating a successful real estate investing team here: https://getrealestatefacts.wordpress.com/2014/07/09/building-your-team-who-the-seasoned-investor-knows/

Recently, one of ReCasa Financial Group ’s real estate investors earned a large return on investment with his rehab project . This real estate investor purchased a 3,500 square foot residential property in a Philadelphia suburb that was significantly under market value. Not only was he able to flip the house in four months from the purchase date, but he was able to make more than $80,000 in profit . He cleaned up the exterior of the house, and updated the basement, windows, flooring, bathrooms, and kitchens. He also made some major updates due to water damage. He is currently looking to do his next real estate rehab investment .

What was your most successful real estate rehab investment?

If you are in need of financing for your next real estate investment, call ReCasa Financial Group to learn about one of your financing possibilities – 614.221.6770. ReCasa Financial Group offers free prequalification for 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties in OH, PA, NY, NJ, NC, SC, TN, KS, MO, IN & IL.

The post ReCasa Financial Group’s Rehab Investor Earns over ,000 Profit on Flip first appeared on ReCasa Financial Group .

Real Estate Tips for Selling in the Fall

Wed, 23 Sep 2015 15:24:00 GMT

Audience – Many families move during the spring/ summer to get adjusted before school starts. Millennials and empty nesters tend to move during the fall. It is important to consider your audience when looking for your investment property .

Read more about considering an audience for rehab investing here:
https://getrealestatefacts.wordpress.com/2014/12/16/are-you-buying-investment-properties-with-the-right-audience-in-mind/

Curb Appeal – Curb appeal is important as it is the first thing homebuyers and renters see. Clean up the clutter, walkways, gutters, and the yard including bushes and trees. Wash windows, decks, porches and windows, and use seasonal flowers to decorate the outside of the house.

Indoors – Keep the house cozy by using warm colored décor and smells of fall.

Don’t back down on real estate investing during the fall as it could be a very successful real estate season for you.

What other items would you add to this list to help your house sell in the fall?

The post Real Estate Tips for Selling in the Fall first appeared on ReCasa Financial Group .

Tips for Financing Your Next Real Estate Investments

Tue, 11 Aug 2015 10:23:00 GMT

Read about using other people’s money here: https://getrealestatefacts.wordpress.com/2013/01/22/what-will-your-investment-give-you-in-return/

Some real estate investors are financially capable of purchasing and rehabbing their investment properties, there are some downsides to the transaction to consider. Paying cash creates loss of liquidity, lack of leverage, and less money for rehab .

Below are some tips for financing your next real estate investment .

What tips would you add to the list?

If you are in need of financing for your next real estate investment, call ReCasa Financial Group , to learn about one of your financing possibilities – 614.221.6770. ReCasa Financial Group offers free prequalification for 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties in OH, PA, NY, NJ, NC, SC, TN, KS, MO, IN & IL.

The post Tips for Financing Your Next Real Estate Investments first appeared on ReCasa Financial Group .

Advantages of Investing Where You Reside

Wed, 29 Jul 2015 10:29:00 GMT

As real estate investors , you have the option to invest in properties around the world. After trial and error, you may have learned what type of properties produce the best ROI. Over the years of funding real estate investments , we have learned that some of the most successful real estate investment properties are located near the investor.

Real estate markets can be very different in as little as 10 miles depending on the MSA. Understanding the market in which you invest is important as to create realistic expectations and have an understanding of the potential ROI .

There are many advantages to investing where you reside, including being able to manage the property and the rehab . If you live near the property, you may not need to hire a property management group, which usually costs investors 15% of the property’s monthly rent. Living near the investment property gives you the ability to check in on contractors, track the project, sort out any issues and fix certain things around the investment property including lawn maintenance. Seeing the project and not relying on the contracts word of mouth, creates a better investment and a higher success rate. The contractors have no obligation to the lenders, the borrower does.

Another great advantage of investing near where you reside includes the ability to get involved with various groups in the area, including real estate groups, to network, find resources, and build a professional team.

At ReCasa Financial Group , we require the investor to reside within 60 miles of their investment property. This helps the investor financially as they are able to make sure rehab is on schedule and they will not go over the loan term.

What advantages can you add for living near your investment property?

The post Advantages of Investing Where You Reside first appeared on ReCasa Financial Group .

Credit Scores: Library Fines to Car Rentals

Mon, 06 Jul 2015 11:54:00 GMT

There are many items that can adversely affect your credit score that you are unaware of. Library fines lower credit scores for individuals. Here are some other activities that can lower your credit score.

A collection account can lower your credit score by 25-100+ points, and can stay on your credit report for up to 7.5 years from the bill’s due date. Credit reports and credit scores are tricky so it is important to learn as much as you can.

What items would you add to this list?

The post Credit Scores: Library Fines to Car Rentals first appeared on ReCasa Financial Group .

Is Refinancing Before Real Estate Investing Helpful?

Tue, 24 Mar 2015 11:22:00 GMT

As real estate investors , refinancing can help lower your total debt ratio and/or get cash out to increase liquidity. Lowering total debt can help you qualify for more or larger loans, and could improve your overall credit score . Getting cash out can help with financing additional real estate investments as equity is a good source for down payments. If refinancing is able to lower debt ratio and get cash out, it is very helpful in the real estate investing process. Also, down payments and reserves can be acquired by refinancing if there is lendable equity in the primary residence.

Not many people realize it, but refinancing for just 1% can make a large difference depending on your total mortgage amount ($300,000 debt lowered by 1% = $3,000 per year or $250 per month).

Before refinancing, determine how long you plan to live in the home, how long you have been paying on the mortgage, and if your credit is in good standing.

The post Is Refinancing Before Real Estate Investing Helpful? first appeared on ReCasa Financial Group .

Tax Deductions for Real Estate Investors

Thu, 12 Mar 2015 11:54:00 GMT

Many expenses for real estate investors are tax deductible . Many do not know the difference between repairs and improvements , but it is important to know this when it comes to filing your taxes. Repairs are fixes that keep the home in working condition and can be written off, but improvements, which add value, change a function in the home, or extend the life of the property, cannot. However, improvements can be deducted over years.

The wear and tear of the rental property can be a write-off too. However, only portions can be deducted over a number of years. This starts once the property is ready to be rented and should stop when the cost is recovered or you are done renting it, whichever comes first. This is the trickiest deduction, so it is important to have your CPA or tax expert handle this.

As real estate investors, what other expenses have you written off?

The post Tax Deductions for Real Estate Investors first appeared on ReCasa Financial Group .

Benefits of a Pre-Approval

Wed, 04 Mar 2015 10:21:00 GMT

How has getting a pre-approval/ prequalification letter helped you in your real estate investing?

To get a free pre-approval/ prequalification letter for your next rehab investment property, call ReCasa Financial Group today at 614.221.6770.

The post Benefits of a Pre-Approval first appeared on ReCasa Financial Group .

Millennials Expected to Change Homebuying Game in 2015

Tue, 24 Feb 2015 09:29:00 GMT

Read about millennials in 2014 here:
https://getrealestatefacts.wordpress.com/2014/11/18/young-home-buyers-are-renting/

As real estate investors , expect to have a larger audience with a higher demand for properties within the next 5 years. When thinking about rehabbing for millennials, it is important to know what they are looking for in a home, as they have different desires compared to homebuyers in the past. A majority of millennials prefer:

The purchase price plays a large impact on homebuying for millennials as they are known to have a large amount of debt including student loans. When working with realtors to market to millennials, remember to include these amenities and make the property listing mobile friendly.

Millennials grew up around technology advances, and due to that, they resort to various social media sites and websites sites for information, before turning to family and friends for feedback. They will also most likely do their own research before reaching out to a real estate agent.

What additional tips do you have regarding rehabbing for millennial homebuyers?

The post Millennials Expected to Change Homebuying Game in 2015 first appeared on ReCasa Financial Group .

Insurance Essentials for Real Estate Investors

Wed, 11 Feb 2015 15:21:00 GMT

Below is a helpful piece written by our guest blogger, Patrick Nelson of Dennis & Nelson Insurance, regarding important types of insurance that all successful real estate investors should consider.

Insurance Essentials for Real Estate Investors
By: Patrick Nelson of Dennis & Nelson Insurance

Investors in real estate have some unique exposures that need to be specifically addressed with insurance policies tailored for your situation. Whether you intend to rent them out, or flip them, here are some essential insurance coverages you should consider:

General Liability – A commercial general liability policy can cover all the various things you do. Whether it is premises liability for the properties you own, construction activities at properties you are rehabbing, or activities (and liabilities) you take on when leasing/renting properties. Make sure you talk to your agent about everything you do in conjunction with your business.

Dwelling Insurance – You need to cover the properties themselves. Keep in mind that a homeowners insurance policy typically includes coverage for other structures (detached garages, sheds etc) and personal property (stoves, refrigerators, furniture etc) but a dwelling policy typically does NOT include coverage automatically. If any of your properties have detached structures, they most likely will need to be listed (and valued) on the policy separately. If you have any furnished properties or provide appliances, you’ll also need to separately list an amount for those as well. Built-ins, furnaces and such are usually considered a part of the dwelling, but it’s worth asking to make sure. Also, make sure you understand whether your dwelling policy values your property at cash value or replacement cost. It makes a big difference, so be sure to understand what you are buying.

Builder’s Risk – If you take on rehabbing projects yourself, then you’ll want to have a builder’s risk policy in place. This will protect any construction materials you have on premises. Since they are not yet part of the dwelling and they don’t fall under the definition of “contents” you’ll need a separate policy for that.

Life Insurance – The name of the game in real estate is leverage. You probably have loans on many of your properties, and you are experienced at juggling your capital needs to make the most of your opportunities. Your spouse, heirs or court appointed executors may not have the experience required to keep all those balls in the air, however. Having a life insurance policy in place to cover the loans on your assets will make settling your affairs much easier.

Also, if you own properties with a partner or as part of a corporate structure, it might not be in the best interest of your business partners to have to liquidate properties in order to compensate your heirs. A properly structured life insurance policy can solve that problem.

Some other coverages you should or may want to consider:

Ordinance or Law – If your community has strict building codes, you will want to make sure your dwelling policy provides this coverage. In some communities, partial damage to a home can cause it to have to be brought to 100% of the building codes. This can add thousands of dollars to a project and even mean having to tear out things that are perfectly fine, in order to bring them up to code.

Directors & Officers – If you have a sophisticated corporate structure and have a “Board of Directors”, you should consider purchasing a policy to protect your Board from lawsuits with a “D&O” policy.

Umbrella Coverage / Excess Liability – If you have extensive assets to protect you may want to consider buying umbrella insurance. The standard commercial general liability policy usually provides $1 million of coverage. Sometimes this can be increased to $2 million or more. An Umbrella policy can provide an extra level of protection on top of your commercial liability policy. Common amounts are $1, $2, and $5 million and amounts over that can be negotiated if needed.

Insuring a real estate investor can be tricky and you need an insurance agency that has experience working with real estate investors. Dennis & Nelson Insurance Group has extensive experience working with real estate investors. Call us today at 740-982-3091, 740-450-0200 or 614-222-0911 to schedule an appointment.

www.dennisnelsoninsurance.com

Dennis & Nelson Insurance Group is independent and represent numerous insurance companies including Erie, Western Reserve, Progressive, and many more.

They offer a complete line of insurance products including personal auto, home, umbrella, SR-22 Bonds, Farm, Identity Theft, Flood and Renters, Commercial auto, property, umbrella, Bonding, Workers Compensation, General Liability and medical malpractice. They also offer health insurance (individual & group), employee voluntary benefits, Medicare Supplemental, Disability, Long-Term Care, Term and Whole Life, Annuities, Financial Services, and IRAs.

Dennis & Nelson Insurance Group also offers insurance to the transportation / trucking industry. We are truck insurance experts and offer Commercial / Business Auto, Liability, Physical Damage, Cargo and General Liability. We insure trucking companies and their employed drivers and owned trucks and trailers and we also insure independent truckers. We insure box trucks, semi trucks, flatbed trucks, front loaders, garbage trucks, pickup trucks, tank trucks, tractors, dump trucks, auto hauler trailers, flatbed trailers and many more.

The post Insurance Essentials for Real Estate Investors first appeared on ReCasa Financial Group .

Is the FHA Lower Annual Insurance Premium for Everyone?

Thu, 05 Feb 2015 10:34:00 GMT

As we mentioned in a previous post, Lower Annual Insurance Premiums on FHA Loans Create Savings for Homebuyers , the Federal Housing Administration (FHA) lowered their annual insurance premiums from 1.35% to 0.85% of the loan amount in an annual basis (from $112.50 per month to $70.83 per month for a $100,000 mortgage), however this loan is not for everyone.

If you applied for an FHA loan in June 2013 or after, this lower annual insurance premium may be able to improve your financing situation .

If you are located in Ohio , Pennsylvania or Indiana , please call us for a free evaluation of your specific situation before you do anything.

ReCasa Financial Group
614-221-6770
www.recasafinancial.com

ReCasa Financial Group 614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB PA: Licensed by the PA Department of Banking
130 E. Chestnut Street, Suite 200 Columbus, OH 43215
Graham Montigny NMLS # 195412 OH LO 002049.000 IN LO 195412 PA LO 35011
Michael Wolf NMLS # 85452 OH LO 001440.001
Michael Troutman NMLS # 319798 OH LO 037303.000

The post Is the FHA Lower Annual Insurance Premium for Everyone? first appeared on ReCasa Financial Group .

Homebuyers are Ready to Buy After Foreclosures and Short Sales

Wed, 04 Feb 2015 13:39:00 GMT

RealtyTrac’s article, 7.3 Million Boomerang Buyers Poised to Recover Homeownership in Next 8 Years , stated:

In 2015, the first wave of 7.3 million homeowners who lost their home to foreclosure or short sale during the foreclosure crisis are now past the seven-year window they conservatively need to repair their credit and qualify to buy a home.

As of August 2014, new changes were made to the mortgage waiting period for foreclosures and short sales for specific situations.

Conventional Loans

FHA Loans

Department of Veterans Affairs Loans

For additional information regarding specific waiting periods for conventional, FHA and/or Department of Veterans Affair loans, visit New Changes to Mortgage Waiting Period .

This is great news for the housing market and real estate investors . More homebuyers should be ready to purchase over the next 8 years as they slowly come out of the foreclosure or short term window. These “boomerang” homebuyers are characterized as being Generation X (35-44 year olds) and Baby Boomers. As investors, it is important to keep the home buying audience in mind to make the property rehab decisions.

How are you preparing for these “ boomerang ” homebuyers ?

The post Homebuyers are Ready to Buy After Foreclosures and Short Sales first appeared on ReCasa Financial Group .

Importance of Credit Scores in Real Estate Investing

Wed, 21 Jan 2015 16:09:00 GMT

As an organization that caters to rehab investors , and having funded thousands of real estate investment deals , ReCasa Financial Group can tell investors that the most important asset is their credit score . A credit score can have a lasting impact on your ability to grow your real estate business in addition to other aspects of your personal and business endeavors. Not only can it change a loan from being approved to denied, but it can affect other aspects of successful real estate investing .

Building and growing a real estate business can be challenging and requires the management of many variables. Managing the most important or valuable asset, the credit score, is something that you have control over. Taking the necessary steps to preserve and increase the score will result in significant savings that can be reinvested in the business and provide access to premium loan and insurance products.

What other reasons can you add to the importance of your credit score in real estate investing?

The post Importance of Credit Scores in Real Estate Investing first appeared on ReCasa Financial Group .

Lower Annual Insurance Premiums on FHA Loans Create Savings for Homebuyers

Thu, 15 Jan 2015 14:16:00 GMT

President Barack Obama announced January 7, 2015 that the Federal Housing Administration (FHA) will lower annual insurance premiums from 1.35% to 0.85% to make homeownership more affordable for over 2 million Americans in the next 3 years. Real estate professionals believe this will help many first-time homebuyers , a vast majority of FHA borrowers , as well as homebuyers looking to refinance . Even with this decrease, FHA will remain on a positive financial path. This program will only pertain to active FHA case numbers appointed on or after January 26, 2015.

CNBC’s article, FHA to lower cost of mortgage insurance , reported:

For the typical FHA applicant, the reduction in premiums means a savings of about $80 on their monthly payment, according to CoreLogic’s chief economist, Sam Khater.

A little more about FHA loans …

If you are interested in purchasing a home with a lower annual insurance premium, call ReCasa Financial Group ’s Graham Montigny or Michael Wolf today at 614-221-6770.

The post Lower Annual Insurance Premiums on FHA Loans Create Savings for Homebuyers first appeared on ReCasa Financial Group .

5 Renovations That Don’t Actually Add Value to a Home

Thu, 18 Dec 2014 14:44:00 GMT

Tim Smith writes for Modernize , a website dedicated to helping homeowners build their dream home. Before becoming a writer, Tim worked as a contractor. In his spare time, he enjoys water-sports, cooking, and spending time with his three kids. Below is a recent post written by Smith for real estate investors.

5 Renovations That Don’t Actually Add Value to a Home
By: Tim Smith

1. Converted Bedrooms
You might have a four-bedroom house and only need three of those bedrooms. It’s a great idea to convert one to a wine cellar, library, or workout room, right? Not if you plan to sell your home. In most cases, an additional bedroom will give your home more value than an interest-specific space that may or may not appeal to potential buyers.

2. High-End Appliances
This is largely dependent on the neighborhood where you live, but it typically doesn’t make sense to add high-end kitchen appliances and other luxury items. The reason? These types of renovations may add value to your home, but if you have the most expensive house in your neighborhood you may price out potential buyers and be unable to recoup your investment.

3. Adding Carpet
These days, the majority of buyers prefer hardwood, engineered hardwood, or tiled floors. Adding new carpet is an investment that will not add substantial value to your home. If you truly need to replace the flooring in your home before putting it on the market, consider an option other than carpet. Not only is wall-to-wall carpet expensive compared to other options, families with young children may be concerned about its durability and exposure to potential allergens.

4. Internal Systems

While you should certainly plan to have heating, air conditioning, plumbing, and electrical systems up to date before you sell your home, doing so won’t add substantial value. The reason? Buyers expect these items to be in good working order before they decide to make a purchase.

5. Swimming Pools
While a pool may increase the enjoyment of your home for you and your family, it can actually be a liability for potential buyers. Families with very young children may be concerned about the safety issues around a pool, while others may not want the additional insurance expense that a pool brings.

In the end, the renovations you choose to make on your home should reflect the way that your family lives. However, if you plan to sell in the short-term, consider avoiding these expensive renovations.

The post 5 Renovations That Don't Actually Add Value to a Home first appeared on ReCasa Financial Group .

Are You Buying Investment Properties with the Right Audience in Mind?

Tue, 16 Dec 2014 11:26:00 GMT

According to survey participants, while every household is comprised of different characteristics,

And of this survey,

Homes.com and ForRent.com reported, half of the survey’s participants valued the most important aspect of a neighborhood to be the proximity to school/ work. In addition to proximity, some wanted safety, and access to public transportation, family and entertainment. 45% said they didn’t require any special features, while 25% said they would pay extra for covered parking. In addition to the covered parking, there were some desires for washer and dryer, air conditioning, and furnishing options. Along with these furnishing options included energy efficiency. According to the National Association of Home Builders , 94% want energy-star rated applicants, 91% want energy-star rates for the entire home, 89% want energy-star windows, and 88% want ceiling fans.

When looking for an investment property , keep these aspects in mind. Think about location and what rehab improvements you can make to the property in order to have the outcome you are wishing for.

What demographics have you been renting/ selling to? What do you find these people are looking for in a property?

The post Are You Buying Investment Properties with the Right Audience in Mind? first appeared on ReCasa Financial Group .

Short Sales Opportunities Fueling Housing

Wed, 10 Dec 2014 11:32:00 GMT

New Jersey, Illinois, and Ohio are amongst states that saw an increase in short sales during October 2014 compared to a year ago.

RealtyTrac’s Vice President Daren Blomquist reported that the U.S. recovery is being driven by real estate investors . It was stated that metro areas with a population of 500,000 or more that had an annual increase in median sales price included:

What do you predict will happen for real estate sales for the last months of 2014?

The post Short Sales Opportunities Fueling Housing first appeared on ReCasa Financial Group .

Successful Real Estate Investors Can Still Learn from Other Investors

Tue, 02 Dec 2014 11:29:00 GMT

Real estate investing can be very rewarding as long as you take proper steps. As successful real estate investors , it is important to conduct continuous research and have a full understanding of real estate investing from a wide variety of resources, including other real estate investors. Money Talks News’ Stacy Johnson wrote a piece regarding her experience with real estate investing and the important characteristics of successful real estate investors. Including:

As a real estate investor, you most likely have your own stories and tips that lead you to become the successful real estate investor they are today. Which of Stacy’s characteristics do you agree/ disagree with? What would you add to her list?

Read the article here: http://www.moneytalksnews.com/ask-stacy-can-make-money-flipping-houses/?all=1

The post Successful Real Estate Investors Can Still Learn from Other Investors first appeared on ReCasa Financial Group .

Young Home Buyers Are Renting

Tue, 18 Nov 2014 13:25:00 GMT

Young home buyers are holding off on purchasing their first homes causing the rental market to explode. According to a 2014 study, 39% of renters enjoy renting and continue to do so, and 42% do not wish to own their own home. In 2015, there is expected to be 41 million single-family rentals nationwide.

High student debt, bad credit scores, and trouble paying bills on time are providing obstacles for young home buyers. According to the U.S. Census Bureau, during the second quarter of 2014, homeownership fell to 64.7%, which was the lowest reported in 19 years. Property owners and managers reported a 41% increase in millennial renters over the past year. According to a report by The National Association of Realtors, first-time home buyers fell 5% to 33% in the last year, which was the lowest reported level since 1987.

An estimated 50% of first-time home buyers have to go to their parents for down payment assistance. Most young home buyers are stating that they would ask their parents for the down payment before giving up their cars. When getting the down payment from parents is not an option, these first-time home buyers are turning to other options: 37% plan to work a second job while 22% plan to use state or federal programs. According to Mortgage Professional America, a number of first-time home buyers would never give up their car, smartphone, cable, vacations, eating out, shopping, gym membership, and other leisure items for a down payment.

FHA loans are available for first-time home buyers. FHA loans offer down payments as low as 3.5% and allow for gift money to be used towards down payments. Our own Graham Montigny and Michael Wolf are able to help you with an FHA loan for those who live in Ohio, Pennsylvania or Indiana.

If you are interested in learning more about FHA loans, contact Graham Montigny at 614-309-0427 or gmontigny@recasafinancial.com, or Michael Wolf at 614-221-6770 or mwolf@recasafinancial.com.

ReCasa Financial Group 614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB PA: Licensed by the PA Department of Banking
130 E. Chestnut Street, Suite 200 Columbus, OH 43215

Graham Montigny NMLS # 195412 OH LO 002049.000 IN LO 195412 PA LO 35011
Michael Wolf NMLS # 85452 OH LO 001440.001

The post Young Home Buyers Are Renting first appeared on ReCasa Financial Group .

FHA Reinstating 90 Day Resell Regulation on Short Term Financing

Thu, 13 Nov 2014 10:11:00 GMT

This 90 day waiver was put in place to help restore neighborhoods after the recession. Since 2010, the waiver helped rehab and resell at least 102,000 homes, encouraged billions of dollars in investments , steadied sale prices, and supplied homes for first time owners. FHA will be terminating the waiver as its purpose has been fulfilled. Officials are fearful that if they keep it available, history will repeat itself.

This 90 day reinstatement could create some hiccups for real estate investors and could increase purchase prices for buyers. For real estate investors who can easily rehab a property under 90 days, it will become more expensive with additional holding costs – maintenance, utilities and taxes – which will later be put upon the buyer and will increase purchase prices.

ReCasa Financial Group ’s is a private lender with no 90 day restriction. ReCasa offers a rehab loan program with 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties. Call today – 614-221-6770.

The post FHA Reinstating 90 Day Resell Regulation on Short Term Financing first appeared on ReCasa Financial Group .

Number of Renovation Loans Increase

Tue, 04 Nov 2014 10:29:00 GMT

When buying a home that has gone vacant for many months or even years, be sure to get a property inspection up front. This will help establish the needed repairs and estimates from contractors for the appraisal. A home inspection prior to the appraisal will make the whole transaction go more smoothly. Also, pay special attention to any structural defects that may require repairs as the FHA stream line 203k rehab loan is only for cosmetic repairs. If structural repairs are required or planned, the standard 203k loan must be used, and that comes with a FHA administrator and added fees and rules.

If you are in need of a renovation loan up to $35k for a property with no structural repairs or changes, call Graham Montigny, CRMS at ReCasa Financial Group to apply, 614-309-0427.

The post Number of Renovation Loans Increase first appeared on ReCasa Financial Group .

Top Buyers’ & Sellers’ Markets

Tue, 28 Oct 2014 12:27:00 GMT

September 2014, Zillow released a report that listed the current top buyers’ markets and current top sellers’ markets across the United States. Among the cities for the top 10 sellers’ markets include Nashville, TN, while the buyers’ market includes Cleveland, OH; Philadelphia, PA; Chicago, IL; Pittsburgh, PA; New York, Northern NJ; and Cincinnati, OH.

The top sellers’ markets give sellers the most negotiating power and final sales prices are generally at or above asking price. As for the buyers’ markets, there is plenty of inventory, including foreclosures, for investors to purchase at lower prices.

What type of market are you seeing in your area?

The post Top Buyers’ & Sellers’ Markets first appeared on ReCasa Financial Group .

Highest Level for Existing Home Sales in 2014 So Far

Fri, 24 Oct 2014 10:35:00 GMT

The average sales price for existing homes in September 2014 was reported as $209,700, a 5.6% increase from September 2013. September 2014 marked the 31 ^st successive month of year-over-year price increase.

During September 2014, existing homes stayed on the market longer than August 2014 and September 2013. At the end of September 2014, the existing home sale inventory fell 1.3% to 2.3 million units, resulting in inventory being typically available for an average of 5.3 months.

Real estate investors accounted for 14% of the purchased existing homes in September 2014 while first time home buyers accounted for a historical low of 29%. Foreclosures accounted for 7% of sales and short sales accounted for 3%. These rates decreased from 14% a year ago. In September 2014, short sales averaged 116 days on the market, foreclosures averaged 59 days on the market, and non-distressed homes averaged 55 days on the market; 35% of September home sales were on the market for less than a month.

What are your real estate predictions for the end of 2014?

ReCasa Financial Group 614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB PA: Licensed by the PA Department of Banking
130 E. Chestnut Street, Suite 200 Columbus, OH 43215

Graham Montigny NMLS # 195412 OH LO 002049.000 IN LO 195412 PA LO 35011

The post Highest Level for Existing Home Sales in 2014 So Far first appeared on ReCasa Financial Group .

Rehab Updates that Can Save Money on Utility Bills

Thu, 16 Oct 2014 13:04:00 GMT

As real estate investors , it is important to not overlook less expensive updates. There are a number of updates one can do to an investment property for under $500. Several inexpensive renovations produce big returns, and will save homeowners money over time. Some of these include green renovations such as low-flow showerheads and toilets, updates to issues found during energy audits, and rain barrels.

Low-flow showerheads and toilets will save on water usage which will save on the water bill. Low-flow showerheads use 1.25 – 2.5 gallons per minute instead of old showerheads that use 5 gallons per minute. Even though there is a difference in the amount of water used, it will still allow homeowners to feel as if they are using the same amount of water. These showerheads on average save homeowners $150 a year on their water-heating costs, and low-flow toilets save about $90 annually.

Gaps in the foundation and around doors and windows of a home can cost an extra $350 annually on heating and cooling. The best way to find these gaps is to hire a professional to do an energy audit for a full diagnostic inspection. This inspection includes thermal or infrared scanners, blower door testers, and smoke puffers. Fixing gaps can lower heating and cooling bills. Installing programmable thermostats are a great addition to help lower heating and cooling bills too.

Rain barrels help to save on the water bill. On average, homeowners spend $150 on water to be used outside of their home. A 2,000-square-foot home produces 500 gallons of water for every inch of rain. Rain barrels can collect this water to be used to rinse off outside furniture, clean cars, water plants, and more outside duties. The U.S. Environmental Protection Agency estimates that 1,300 gallons of water can be saved during summer months by using a rain barrel.

What other rehab updates can help homeowners save money on utility bills?

The post Rehab Updates that Can Save Money on Utility Bills first appeared on ReCasa Financial Group .

Make-or-Break Amenities

Tue, 07 Oct 2014 10:49:00 GMT

The National Association of Home Builders reported the top 5 amenities that are not make-or-break features for the 2014 housing market . These amenities are nice to have, but homebuyers are not willing to pay extra for the following features.

The National Association of Home Builders also released the top 3 amenities every contractor and rehabber should put into a home. These amenities are popular as they will make the house feel more inviting and make living easier for homeowners .

As real estate investors , which amenities do you think homebuyers are looking for?

The post Make-or-Break Amenities first appeared on ReCasa Financial Group .

IRA Change Starting January 2015

Tue, 30 Sep 2014 15:02:00 GMT

Some real estate investors use their IRA accounts to purchase real estate properties . According to CNBC’s article Top 10 reasons you should never borrow from your 401(k) plan , here are some reasons why you should never borrow from your retirement account.

Furthermore, starting January 1, 2015, a new rule will affect rollovers of individual retirement accounts. Only one 60-day rollover will be allowed within a 365 day period. Those who do not follow the new rule could end up with tax consequences after rolling over their IRAs. Those under 59 ½ years-old could receive a 10% early withdraw penalty in addition to the taxes owed.

In 2011, the IRS collected $5.7 billion in penalties for early withdrawal from retirement accounts, meaning that with the 10% penalty for withdrawing, $57 billion was withdrawn early from retirement accounts.

Additionally, with the IRA change coming in January 2015, it is important to expand your borrowing options and learn the best loan for you and your investments.

Call ReCasa Financial Group today to learn the best borrowing option for you, 614-221-6770. ReCasa Financial Group lends to real estate investors for the purpose of purchase, refinance and rehab. Our rehab loan program offers 100% financing for the purchase, improvements and soft costs on 1-4 family non-owner occupied properties.

ReCasa Financial Group 614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB PA: Licensed by the PA Department of Banking
130 E. Chestnut Street, Suite 200 Columbus, OH 43215

Graham Montigny NMLS # 195412 OH LO 002049.000 IN LO 195412 PA LO 35011

The post IRA Change Starting January 2015 first appeared on ReCasa Financial Group .

New Changes to Mortgage Waiting Period

Wed, 17 Sep 2014 11:22:00 GMT

As one more sign of an improving real estate market at a national level, the wait times are being extended for those seeking a short sale. Fannie Mae thinks you should be able to get at least what you owe on the home in most markets across the country as long as you have done your part as a homeowner in keeping the home good repair. If not, do not expect them to want to do new business with you any time soon.

As of August 16, 2014, real estate investors who had a short sale in the past few years will now have to wait 4 years instead of 2 to get a new mortgage . The following are waiting periods to obtain certain mortgages under certain circumstances.

Conventional Loans

FHA loans

Department of Veterans Affairs Loans

The information listed above should be used as guides for wait time, but contact your lender or loan officer to know exact wait times for your specific situation.

The post New Changes to Mortgage Waiting Period first appeared on ReCasa Financial Group .

High-End Flips Producing High Return on Investments

Thu, 04 Sep 2014 10:00:00 GMT

Presently, some real estate investors are investing in high-end neighborhoods in order to earn large profits. According to RealtyTrac, the number of flips of high-end properties with a purchase price of $750,000 or more increased 21% since 2013, and purchase prices for flips between $750,000 and $1 million reported a 41% return on investment (ROI). Pittsburgh, PA was reported to have one of the best ROIs for real estate flips in the second quarter of 2014. Pittsburgh, PA averaged a 106% ROI . Also on this list was Chicago, IL (54% gross return on investment).

What is your experience investing in high-end properties?

The post High-End Flips Producing High Return on Investments first appeared on ReCasa Financial Group .

July 2014 Existing Home Sales

Tue, 26 Aug 2014 16:32:00 GMT

According to CNBC , “Americans resold their homes in July at the fastest pace in almost a year, a sign the housing market was gaining steam again.”

On August 21, 2014, the National Association of Realtors reported a 2.4% increase (5.15 million units annually) in existing home sales in July 2014. This sales increase was above expectations and marked the fourth straight monthly increase of existing homes. It was also the highest level since September 2013.

In July, existing homes on the market rose to 2.37 million which is the highest level since August 2012 and 5.8% more than July 2013. Median sales price was $222,900 which was 4.9% higher than in July 2013. These increases are thought to be due to the continuance of a Federal Reserve bond-buying program, lower mortgage rates , and job growth.

What are you expecting to happen for existing home sales for the rest of 2014?

The post July 2014 Existing Home Sales first appeared on ReCasa Financial Group .

Existing Home Sales

Thu, 21 Aug 2014 10:56:00 GMT

Median existing home prices rose 4.4% to $212,400 in the second quarter following an impressive 8.3% annual increase in the first quarter. From June 2013 to June 2014, the number of homes for sale rose 6.5% to 2.3 million. “At this slower but healthier rate, homeowners can continue steadily building equity . Meanwhile, for buyers, increased supply with moderate price gains is giving them better opportunities to choose,” NAR chief economist Lawrence Yun said.

What trends are you seeing in your area?

The post Existing Home Sales first appeared on ReCasa Financial Group .

Credit Score Changes Are Coming

Wed, 13 Aug 2014 14:09:00 GMT

According to WSJ Live and Yahoo!, Fair Isaac has announced that changes are coming for credit scores . These FICO changes should help to improve millions of credit scores. Any “resolved” records with collectors will not be included and unpaid medical bills will have less weight.

Many lending companies have been trying to find ways to stimulate consumer lending , and these changes should do just that. These FICO changes should give more people access to credit, meaning better chances for real estate loans . According to CNBC’s article Credit score changes will affect millions and the Journal , “Out of the 106.5 million Americans with a payment collection on their report, 9.4 million had no current balance, which means their credit scores will be bolstered by the new system.”

Watch the video here: Credit score changes will affect millions

The post Credit Score Changes Are Coming first appeared on ReCasa Financial Group .

Do’s and Don’ts While Your Mortgage or Refinance Loan is in Process

Wed, 06 Aug 2014 10:24:00 GMT

ReCasa Financial Group ’s loan officer and real estate financing expert , Graham Montigny, CRMS, created a list to help mortgage applicants when purchasing or refinancing . This is an important list of do’s and don’ts to follow. Following these guides will help the real estate loan process run more smoothly.

Don’t*

*You may need to do one of the Don’ts, but always consult your loan officer/ bank before doing any of the above.

What would you add to this list?

If you are interested in a real estate purchase or refinance , contact Graham Montigny, CRMS, 614-309-0427 or gmontigny@recasafinancial.com.

The post Do’s and Don’ts While Your Mortgage or Refinance Loan is in Process first appeared on ReCasa Financial Group .

Resources for the Successful Investor

Wed, 23 Jul 2014 15:04:00 GMT

There are a number of website resources for real estate investors , but how do you know which ones are credible? We recommend extensive research from multiple, trusted partners. On our website, www.recasafinancial.com, we list a number of helpful website resources for the real estate investor on the Resource page. Visit the link below to see what we have included.

http://recasafinancial.com/resources/

What other websites would you add?

The post Resources for the Successful Investor first appeared on ReCasa Financial Group .

A Look Back at Real Estate in 2013

Tue, 15 Jul 2014 15:37:00 GMT

Some investment properties are used for rentals properties . It is reported that the best counties to buy rental properties in the U.S. are located where unemployment rate is below 4.5%. These top areas include Anderson County, S.C.; Columbia, S.C.; Pittsburgh, PA; Columbus, Ohio; and Charleston, S.C.

How do your investment trends compare to those reported from 2013?

The post A Look Back at Real Estate in 2013 first appeared on ReCasa Financial Group .

Building Your Team: Who the Seasoned Investor Knows

Wed, 09 Jul 2014 16:03:00 GMT

Succeeding as a real estate investor may appear simple enough: buy a property, rehab it and make a satisfying profit. What could be easier? The answer lies in what separates the “newbie” from the “seasoned” real estate investor—the team they have built to support their business. It is vital that you assemble your team before you make your first purchase. This team will include an accountant, attorney, lender (s), real estate agent, contractors and an insurance agent .

As an investor, you need to be able to count on honest and accurate information to support every aspect of your business plan. Attending a real estate investor group is a great way to start your networking with the industry professionals.

Business Structure

It is pertinent to understand how best to protect your assets and interests by talking with an accountant and attorney. An accountant will help you determine which entity, if any, is best suited for you to create for your business plan. The key is to not over complicate your life with numerous unnecessary entities. A real estate attorney will be able to advise you of the legal protection and pitfalls that each of these business structures would provide based on your investing plan. Having counsel available for any legal issues that may arise during the course of your rehab is also advised.

Other People’s Money: The Lenders

A lesson that is echoed by experienced rehabbers is the use of “other people’s money”. Explore borrowing relationships with several different lending sources and prequalify to determine your creditworthiness. Pick a lender that best suits your individual and project needs. Does your lender provide money for the improvements? If so, to whom and how are they dispersed? What is the LTV for after-repaired value? Will this require you to bring money to closing? How does the lender arrive at after-repaired value?

The more prepared you are with your financial documents while researching lenders, the smoother your investigation will be. Tax returns, bank statements, profit and loss statements, pay stubs that are readily available make the lending process go smoothly and easier to obtain a pre-approval for a specific loan amount.

The Project

After selecting a business structure and securing financing, you can begin to identify potential properties. A key professional to assist you with these items is an experienced real estate agent or broker . No matter what fiduciary arrangement that you make with your agent, you will find that their experience in negotiations, writing contracts and research will prove to be invaluable. Your agent can not only help you locate and assign potential value to your rehab, but also pull sales comparables for you to gauge what your property could be worth when it is complete.

Accurate sales comparables are critical to understanding your potential profit. An accurate sales comparable compares recent sales of properties similar in terms of bedrooms, bathrooms, square footage and condition. You and your agent will also be discussing how long it may take to sell or rent your investment property based on trends within the immediate area of your rehab. Doing your homework is necessary; you must scrutinize your data to ensure success.

Who Completes the Work?

Even if you are completing the work yourself, it is always a good idea to have trusted contractors ready to step in and assist you with your project and any permit or code requirements that may arise. Be sure to be present for every bid proposal walk through. A contractor that understands your involvement with the project and your vision for the rehab will be able to give you a more accurate quote. Being present will also give you the opportunity to ask many questions about procedures and timetables for specific jobs. It is always a good idea to interview several contractors for each job. This will give you strength in negotiating a price for work as well as understanding the different methods available for the completion of your rehab . When the project has started your presence on the job site and your control of the repair funds will ensure that the contractors understand the nature of your professional relationship.

Protect Your Project

Finally, possibly the most important group of key professionals for you to interview is insurance agents. It is important to review and understand your specific coverage for your property. There are several types of insurance offered to rehabbers. Unfortunately if you have the wrong coverage, often times it is not realized until it is too late. An insurance agent who understands your rehab plan and is able to provide protection for the liabilities that invariably accompany a rehab project will be one of your more valuable team members.

Building your team with professionals you trust will ensure success and a clear exit strategy to mitigate risk.

The post Building Your Team: Who the Seasoned Investor Knows first appeared on ReCasa Financial Group .

Chicago is a “Seller’s Market”

Fri, 27 Jun 2014 11:30:00 GMT

According to CNBC, Chicago is currently a “ seller’s market .” Chicago’s biggest “seller’s markets” are those in which most of the area’s Fortune 500 employees reside. Chicago real estate inventory level had not seen a change between May 2013 and May 2014. The inventory currently averages 68 days on the market. Also, Chicago’s foreclosure rate is declining. These foreclosures are either sold or redeemed before the foreclosure process can be completed, and it is happening faster than new foreclosures can appear on the market.

“Right now, many North Side Chicago neighborhoods are experiencing a seller’s market. A majority of today’s home buyers want a home that has already been updated, which is fantastic for investors who are acquiring properties to flip . We need more high quality constructed and renovated homes on the market, in order to meet the current buyer demand,” Glynnis Johnson, @properties Real Estate Broker. According to Redfin, investors earn an estimated $86,700 per flip in Chicago.

Where are you investing? Do you believe your areas to be a “seller’s market”?

The post Chicago is a “Seller’s Market” first appeared on ReCasa Financial Group .

5 Ways to Save on Homeowners Insurance

Thu, 12 Jun 2014 11:18:00 GMT

According to Dennis & Nelson Insurance, there are 5 Ways to Save on Homeowners Insurance .

1. Increase Your Deductible
Increasing your deductible by just a few hundred dollars can make a significant difference in your homeowners insurance premium. Most deductibles start at $500—if you can afford to raise your deductible to $1,000 or even $2,500 you could save 20 percent or more on your rate.* Remember, raising your deductible means more out-of-pocket expenses should a disaster occur, but the lower rates may be well worth it.

2. Buy Your Homeowners and Auto Insurance from the Same Carrier
Purchase your homeowners insurance and car insurance from the same insurance carrier and you could save up to 15 percent on both premiums.* It’s called a multi-line discount, and just about any insurer that provides both home and car insurance will offer one.

3. Insure Your Home, Not the Land Under It
Homeowners often overpay for homeowners insurance by including the value of their land in their replacement cost coverage level. Remember that you only need to insure the home itself and your possessions, not your land. In the event of a total loss due to a fire or other disaster, your land will most likely be just fine.

4. Take Advantage of Discounts
There are multiple homeowners insurance discounts that you might not know about. And what you don’t know could cost you. Common discounts include:

5. Shop for the Best Homeowners Insurance Rate
Comparing homeowners insurance rates from multiple providers is the simplest, easiest way to save money on your policy.

Dennis & Nelson Insurance Group is independent and represent numerous insurance companies including Erie, Western Reserve, Progressive, and many more.

Dennis & Nelson Insurance – (614) 222-0911 – http://www.dennisnelsoninsurance.com/

The post 5 Ways to Save on Homeowners Insurance first appeared on ReCasa Financial Group .

Being a Successful Real Estate Investor

Thu, 05 Jun 2014 10:55:00 GMT

This specific real estate investor has been investing for 7 years. He has completed both buy and holds and fix and flips, but enjoys buy and holds more as they are a continuous source of income. Investing is a part-time income producer for him as he works another full-time job. He decided to start investing to help supplement his retirement savings. He completes most of the rehabbing himself but has numerous professionals on his team, such as realtors, rehab crews, and a rehab lender (ReCasa Financial Group). He encourages other investors to have real estate professionals be part of their team, “Experts are a must especially when you only invest part-time.” These real estate professionals have helped him become the successful investor he has worked towards. When asked what the key to becoming a successful investor, he stated “Never fall in love with a deal. There is always another one coming.”

What is your key to becoming a successful real estate investor?

The post Being a Successful Real Estate Investor first appeared on ReCasa Financial Group .

Real Estate Recovery Continues as Existing Home Sales Increase in April

Tue, 27 May 2014 15:38:00 GMT

According to the National Association of Realtors , existing home sales rose 1.3% in April 2014. The increase is good news for real estate investors and, real estate experts believe the increase trend will continue for the remainder of 2014. Watch the CNBC video below to learn more about existing home sales.

http://video.cnbc.com/gallery/?video=3000277929

The post Real Estate Recovery Continues as Existing Home Sales Increase in April first appeared on ReCasa Financial Group .

4 Tasks Investors May Forget When Building a Successful Real Estate Investing Business

Tue, 20 May 2014 10:17:00 GMT

There are a number of ways to run a successful real estate investment business, but there are few tasks investors may procrastinate on completing. Below are 4 tips written by financial advisors to help r eal estate investors prepare for the future of their business by completing these frequent tasks.

“The 4 ^th most frequent procrastination mistake we see for real estate investors includes interest rates. We spoke to a new client just a couple weeks ago who was paying north of 6% on their mortgage loan . With interest rates bouncing on the floor of historic lows this past several years, there is really no reason, what-so-ever, to have an excessively high mortgage rate . Today, you can easily find rates in the mid-to-low 4’s, but be cautious of ‘Rate Vultures,’ who tease you with ultra-low rates just to get you in their door. When it comes to mortgages, the numbers are pretty simple. One company might charge $250 for closing costs, but their rate might be a tad higher than the lender who charges a higher closing cost, but carries a lower, long-term rate. Bottom line, if your mortgage rate is too high, you’re paying too much money.

The 3 ^rd most frequent procrastination mistake we see revolves around property & casualty insurance. I personally work with a home & auto insurance company that works with many different insurance vendors. This means they can pick the lowest cost insurance for my house, life, rental property, personal articles, and office policies.

The 2 ^nd most frequent procrastination mistake we see on a regular basis are people who need to update their estate planning documents all the time! If you don’t have your basic estate planning documents updated and in-order, life (and death) can get miserable for you and/or your family. The basic documents almost everyone needs are 1) A Will, 2) Healthcare Directive, and 3) Powers of Attorney documents. The will tells your family where your money should go and who it should be handled by. The healthcare directive is in place to tell your family and medical professionals how you want your healthcare matters handled in the case that you cannot respond. The Powers of Attorney are used to ensure your financial affairs are handled efficiently if you become incapacitated and you’re unable to make decisions on your own. If you’re one of the roughly-50% of people who actually have these documents updated and in-order, just make sure your powers of attorney docs have ‘financial language’ in them. In this day and age of strict financial oversight, some financial institutions will not honor a general POA without this specific language.

Finally, the 1 ^st most frequent procrastination mistake we see is all about your hard-earned money! Make sure to put your money into various accounts including real estate investments , 401k’s, 403b’s, Deferred Comp plans, IRA’s, Roth IRA’s, TSA’s, Variable Annuities, Fixed Annuities, Individual/Joint accounts, Trust accounts, and/or other brokerage accounts. Doing so will allow you to earn interest on your hard-earned money.

It is absolutely crucial that you not only add these important items to your to-do list… but that you also push these tasks to the very top! If you’re not sure who to trust with your financial affairs, interview 2-3 professionals until you get a good feeling of who to work with. Once you’ve found someone you feel comfortable with, learn how to read your statements, view your accounts online, or check your account balances on your phone (whichever is easiest). Then, don’t be afraid to ask questions!

If you or someone you know has any questions regarding portfolio management, estate planning, or financial planning, please contact us and we’d be happy to confidentially discuss your/their personal situation further.

Libertas Wealth Management Group, Inc. 614-543-1350 http://libertaswealth.com/

The opinions mentioned in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Past performance is not guarantee of future results. Economic forecasts set forth may not develop as predicted. The views and opinions expressed in this commentary are those of Adam Koos and do not necessarily represent the views of TD Ameritrade and its affiliates. Investing involves risk including loss of principal.”

The post 4 Tasks Investors May Forget When Building a Successful Real Estate Investing Business first appeared on ReCasa Financial Group .

Exit Strategy for Real Estate Investors

Wed, 07 May 2014 11:15:00 GMT

Refinancing is an important and sometimes critical exit strategy for real estate investors . While some investors’ strategy is to buy and sell, there are no guarantees in the world of real estate investing. Keep the following tips in mind for an easier refinance.

Document Your Rehab
Keep records of your rehab project financially with receipts and pictorially with pictures of the improvements made. These items may be needed to help the appraiser justify the increased value of your rehabbed property to the lender.

Appraise before you list
Even if you plan to sell your project upon completion, have the property appraised before you list. Appraisers are required by law to list on the appraisal if the property is or has been recently listed for sale. If the property is listed before your appraisal, you could dramatically limit your refinance options.

Stay Current with Payments
Your new lender may request a Verification of Mortgage (VOM) from the rehab lender . The VOM requires the lender to provide a payment history. An on-time payment history will be necessary to get your project refinanced.

Maintain Your Credit Score
The most important asset a real estate investor has is their credit score . The market has tightened refinancing requirements and investors with low credit scores are being shut out. Do not take on more than you can handle financially or logistically.

Don’t deplete reserves
Nearly every lender will require the borrower to be able to document a certain amount of financial reserves for a mortgage approval.

Stated no longer
While a few stated programs do still exist, they are becoming increasingly scarce. Many of the remaining stated programs are reserved for borrowers with higher credit scores and those who can document large financial reserves. Some lenders will stipulate that you will need to prove a two year history of self-employment. When applying for a loan with full documentation, you will need to keep your debt ration within the lender guidelines. Your debt ratio is determined by the amount you owe as a percentage of your gross income.

While many investors plan to only buy and sell, keep in mind, a sale is not complete until the closing. Never count on a sale until the purchaser’s check clears your account.

At ReCasa Financial Group , we discuss your exit strategies before you start your rehab. Also, Ohio, Indiana and Pennsylvania investors, we have in-house brokers who are available to help with refinancing the rehab loan at the end of the loan term. We want to help you be successful till the very end! Call us today at 614-221-6770 to learn more.

The post Exit Strategy for Real Estate Investors first appeared on ReCasa Financial Group .

Top Markets for Rehab Investors

Mon, 21 Apr 2014 13:42:00 GMT

To be a successful rehab investor , it is important to know which markets are flourishing in order to help sell the property quickly. Realtor.com recently released a real estate report ranking the top 10 locations this year for first-time homebuyers . Realtor.com pulled data from their February 2014 figures and from the Bureau of Labor Statistics. The company studied location, price, inventory, and employment rates across 146 locations. This data was then evaluated against the needs and desires of the typical first-time homebuyer.

Amongst these top markets were some of the locations in which ReCasa Financial Group lends. These areas include:

Read the full report, Top 10 Markets for First-Time Home Buyers in 2014 .

The post Top Markets for Rehab Investors first appeared on ReCasa Financial Group .

Techniques for Getting a Home Loan

Wed, 16 Apr 2014 14:20:00 GMT

As brokers , bankers and realtors , we know that you work with more than real estate investors , so we wanted to share some helpful tips for you and your homebuyers. Below are home loan tips including credit, employment and income, and how to overcome certain denial reasons to get approved.

It is easy to obtain a good real estate loan, as long as you show good credit, on time payments, stable income and employment, and a reasonable debt-to-income ratio.

Have your clients experienced any minor bumps while obtaining a home loan? If so, how did you surpass the obstacle?

The post Techniques for Getting a Home Loan first appeared on ReCasa Financial Group .

Rehab TV Stars’ Answers for Rehabbers

Wed, 02 Apr 2014 16:18:00 GMT

The Property Brothers share best tricks when buying fixer-uppers

Where do you get your inspiration for rehabbing ?

The post Rehab TV Stars’ Answers for Rehabbers first appeared on ReCasa Financial Group .

Yahoo! News Home Flipping Tips

Tue, 25 Mar 2014 11:37:00 GMT

What You Should Know Before Dipping Into Home Flipping

If you too are finding it hard to get money for investment properties, call ReCasa Financial Group today to learn how you can get 100% financing for purchase, improvements and closing costs on 1-4 family non-owner occupied properties in OH, PA, IN, IL, KS, MO, TN, NC, SC, NY & NJ – 614.221.6770.

The post Yahoo! News Home Flipping Tips first appeared on ReCasa Financial Group .

Alternative Mortgage Programs – Subprime Lending

Wed, 19 Mar 2014 13:44:00 GMT

Although subprime lending had a bad reputation in the past, companies are becoming more strict regarding their lending criteria. Some companies are now referring to subprime as “another chance mortgages” or “alternative mortgage programs.” Currently, borrowers often are required to make down payments and supply comprehensive information regarding income, work history, and bill payments. Thus it would seem that income qualification is still important in the mortgage process.

As the real estate industry begins to show steady recovery, Wells Fargo believes that they are now able to open their doors to those of higher credit risks. This change in lending could boost the housing market demand . Borrowers who have had to wait out the recovery will now be able to obtain loans to purchase homes . In 2013, less than 1% of new home loans were with subprime borrowers, while 10 years ago, subprime borrowers averaged one quarter of loans originated.

If you are interested in subprime lending, call ReCasa Financial Group today at 614.221.6770. We can help you obtain the loan that is perfect for you.

The post Alternative Mortgage Programs – Subprime Lending first appeared on ReCasa Financial Group .

ReCasa Financial Group is Hiring!

Wed, 12 Mar 2014 15:18:00 GMT

ReCasa Financial Group is a rapidly growing real estate financing company. We are expanding and have openings with our company! We are currently looking for Regional Managers to handle our rehab loan program and Residential Loan Officers. If you are interested or know someone who would make a great fit, please visit our website http://recasafinancial.com/careers/ or click on the links below to read full descriptions.

Regional Manager Position

Residential Loan Officer Position

We welcome you to apply for the position, or pass these listings on to family and friends that may be interested.

The post ReCasa Financial Group is Hiring! first appeared on ReCasa Financial Group .

Real Estate Agents Make Perfect Real Estate Investors

Tue, 04 Mar 2014 13:29:00 GMT

In addition to saving time and making money, having your real estate license can help you in various ways.

These are just some of the reasons why real estate agents should become investors, even if it is just rehabbing a few properties a year.

The post Real Estate Agents Make Perfect Real Estate Investors first appeared on ReCasa Financial Group .

Year-End Home Flipping Report & Distressed Properties Report

Tue, 25 Feb 2014 14:20:00 GMT

RealtyTrac recently released its year-end 2013 Home Flipping Report. The report states that 156,862 homes were flipped in 2013. These homes were purchased then sold within six months. This number of flipped homes is up 16% from 2012 and 114% from 2011. The average profit for all homes flipped in 2013 is $58,081, while it was $45,759 in 2012.

Rehabbed properties are becoming a big success for real estate investors . During 2013, 21% of all rehabbed properties were previous foreclosures, and 4.6% of home sales were rehabbed single-family properties . The number of rehabbed single-family properties sold increased from 4.2% in 2012 and 2.6% in 2011.

It was reported that home prices went up an estimated 10% between December 2012 and December 2013. In December 2013, 16.2% of all home purchases were distressed properties. According to RealtyTrac’s Year-End 2013 U.S. Residential & Foreclosure Sales Report, more than one-quarter of foreclosed homes in the 10 largest U.S. cities are still being processed. It looks like there will still be a number of distressed properties in 2014.

How is the increase of rehabbed properties helping the housing recovery?

The post Year-End Home Flipping Report & Distressed Properties Report first appeared on ReCasa Financial Group .

Older Homes Call for Rehabbing which is Good for Real Estate Investors

Mon, 10 Feb 2014 09:33:00 GMT

With a low number of new builds , many homebuyers will be looking at older homes. As homebuyers consider these older homes for purchase, they will be thrown off with the need for updates such as energy efficient features and new amenities. Homebuyers will want older homes that have been rehabbed for modern day. This means it is a perfect time for rehab investors .

Read our post What Today’s Homebuyers are Looking for in a Home to discover additional rehabbing ideas.

The post Older Homes Call for Rehabbing which is Good for Real Estate Investors first appeared on ReCasa Financial Group .

Rehab is Going Green

Tue, 04 Feb 2014 10:37:00 GMT

Environmentally friendly rehab investment properties should save homeowners or renters money on various aspects of home ownership. With environmentally friendly features such as insulating the property well, temperatures become even throughout the property with less draft and better humidity control. Environmentally friendly products such as low-flow commodes, solar panels, energy efficient appliances, ceiling fans, bamboo flooring, and large windows for natural lights are a few additional ways to create an environmentally friendly property.

What are you doing to make your rehab investments green?

The post Rehab is Going Green first appeared on ReCasa Financial Group .

Mortgage Applications Increase Starts Optimistic Outlook for 2014

Wed, 29 Jan 2014 10:40:00 GMT

According to data reported by Fannie Mae in their December 2013 National Housing Survey:

The National Housing Survey, a quarterly survey, polled 1,005 Americans by telephone with over 100 questions. Questions regarding owning, renting , pricing, the economy, finances , and more were asked. Fannie Mae has been conducting this survey for several years.

Do you agree with the majority of those polled? What do you think 2014 holds for the progression of the housing recovery?

The post Mortgage Applications Increase Starts Optimistic Outlook for 2014 first appeared on ReCasa Financial Group .

Why Mortgage Brokers Are Great for Finding Loans

Wed, 15 Jan 2014 14:30:00 GMT

When homebuyers are shopping, some use banks for home loans , but why not consider a mortgage broker ? There are many different reasons why choosing a mortgage broker can be more successful than choosing a bank.

What benefits do you believe come with working with a mortgage broker? What outstanding mortgage brokers have you used in the past?

If you are looking for a real estate loan in Ohio, Pennsylvania or Indiana, we have great mortgage brokers that can help you! If you want find your options, call us today at 614.221.6770!

The post Why Mortgage Brokers Are Great for Finding Loans first appeared on ReCasa Financial Group .

What Today’s Homebuyers are Looking for in a Home

Tue, 07 Jan 2014 16:39:00 GMT

In order to be successful in the real estate investing industry, it is important to analyze multiple perspectives when it comes to rehabbing . As rehabbers , you should also think like a homebuyer to determine which properties to rehab and how to rehab them. Below are a few details.

Winter is always a hard season to sell real estate . Consider the following tips when placing your home on the market. In order to grab a shopper’s attention, curb appeal needs to be right. While some find it hard to create good curb appeal during the winter, it can easily be done by creating a beautiful and inviting entrance with a porch light and a decorative front door, cutting back dead plants, shoveling snow on driveways and walkways, and raking up leaves. You may also want to stage the house for selling. You can do this by adding the necessary pieces of furniture and wall decorations. Using only the necessary pieces will make rooms feel large. Also, make sure that the house is properly lit inside and outside. During the winter, there is not much natural light, so it is important to use lamps and other lighting.

These are just a few ideas, what additional characteristics do you believe home buyers are looking for when shopping for a home?

The post What Today’s Homebuyers are Looking for in a Home first appeared on ReCasa Financial Group .

How to Control the Selling of Your Investment Property

Tue, 17 Dec 2013 09:36:00 GMT

Many rehabbers put most of their focus and effort into the buying and rehabbing aspects of their investment projects , consider it completed, and let the selling process happen instead of controlling it. We advise our real estate investors to play a larger role in the selling process of their investment properties . Consider creating a sales strategy for selling the investment property.

The most important step to controlling the selling side is to do your homework. Don’t rely on the information gathered at the purchase of the rehab project but rather research again current selling prices of recently sold houses around your .

Another key step is to be a shrewd negotiator when offers come in. Be open to all offers yet be clear on any critical information delivery to other agents. Communicate any hot buttons such as type of offer, contingencies, timing and any other issues which will help to move the offer along smoothly. Do not rush an offer to allow the proper time to give a thoughtful response.

What is approach do you use when you sell your investment property?

The post How to Control the Selling of Your Investment Property first appeared on ReCasa Financial Group .

2014 Real Estate Expectations

Tue, 10 Dec 2013 10:49:00 GMT

In September 2013, homes listed on Zillow were selling 30 days faster than September 2012. These homes averaged 86 days on the website, and in September 2012, they averaged 116 days. Since the beginning of 2010, homes spent an average of 119 days. This decrease is pressuring buyers to act more quickly. The Conference Board, a nonprofit association of businesses, reported that the percentage of buyers who intend to purchase in the next 6 months was the highest since 2000.

Home prices are expected to slowly and steadily rise compared to previous years. In 2014, home prices are expected to raise 3-5%. Homes are still affordable even with this price increase as they are still below the 2006 peak by about 31.5%.

This increase in homes selling quickly and in home prices is pushing buyers and real estate investors to act quickly in the market.

What expectations do you have for 2014?

The post 2014 Real Estate Expectations first appeared on ReCasa Financial Group .

ReCasa Financial Group is Hiring!

Fri, 06 Dec 2013 14:36:00 GMT

ReCasa Financial Group is looking for new talent as we expand our company!
Two new opportunities are available – Regional Manager and Residential Loan Officer!

Regional Manager Position

Residential Loan Officer Position

We welcome you to apply for the position, or pass these listings on to family and friends that may be interested.

The post ReCasa Financial Group is Hiring! first appeared on ReCasa Financial Group .

Tips and Tricks to Save Money and Energy This Winter

Tue, 03 Dec 2013 15:22:00 GMT

As winter approaches, it is important to consider weatherizing your properties, whether your primary residence or an investment property . Below are some tips and tricks for saving money by lower energy usage and protecting the property.

What other tips and tricks can you add to this list?

Many municipal utility companies offer free or low-cost energy audits. If your provider offers this, take advance of it and make sure your home is ready for the winter!

Be sure to share these energy-saving tips your tenants and assist them in making the necessary moves. It is also a good way to inspect the working order of the mechanicals in your investment properties.

The post Tips and Tricks to Save Money and Energy This Winter first appeared on ReCasa Financial Group .

Increase in Population of Renters and Rent Price

Tue, 19 Nov 2013 11:20:00 GMT

The population of renters is growing and so is the price of renting. Over the past five years, rents rose 7.6% and are expected to rise 16% by the end of 2017. The current average rent is $1,049, and it is expected to reach $1,215 by end of 2017.

With the housing recovery, property foreclosures , strict real estate lending standards, rising home prices, and a growing number of retirees and empty nesters, more people are renting, and apartment builders are unable to keep up with the demand. The high demand of rental properties is good for real estate investors looking to buy and hold, since real estate builders are not meeting the demand and renters are seeking renovated properties to rent.

How are you handling the increased demand for rental properties?

The post Increase in Population of Renters and Rent Price first appeared on ReCasa Financial Group .

Home Prices Rise, Home Sales Drop – But For How Long?

Tue, 12 Nov 2013 09:49:00 GMT

As the prices rose, home sales dropped. In September 2013, pending home sales dropped 5.6%, although the overall rate is still higher than December 2012. Many factors played an impact in this drop, but higher prices are partially to blame. Estimates are at least one-third of home buyers in September were investors .

Despite this decline in home sales, there is still the belief that the housing recovery will continue, with an expected 10% increase in home sales within the year. According to MarketWatch, rates for 30-year fixed-rate mortgages have declined over the recent weeks, making the upcoming months the perfect time to buy.

How do you believe increasing home prices and declining home sales will affect real estate investing?

The post Home Prices Rise, Home Sales Drop – But For How Long? first appeared on ReCasa Financial Group .

What Do You Know About Mortgages? Part 2

Tue, 05 Nov 2013 13:07:00 GMT

Mortgages are rarely fully understood by home buyers since most home purchases only happen every 5-7 years. Many home buyers do not keep up to date on mortgages, as they are only interested in them around the time they want to buy. To help educate, Zillow has created a list of the top 10 mortgage misunderstandings. Here are the final 5 in the list. Don’t forget to read the first 5 if you missed them last week.

6. “When taking out a mortgage with your spouse, lenders will look at each of your credit reports equally when determining the interest rate you qualify for.”

Credit reports are pulled from the three major credit reporting agencies: Experian, Equifax and TransUnion. When applying for a mortgage with a spouse, credit reports are pulled for both parties. The lender will look at the middle score of each set and lower score of all reports to determine the interest rate of the mortgage loan . This means that the one with the lowest score will affect the interest rate the most.

7. “You cannot get a home loan with less than a 5 percent down payment.”

Many home buyers believe that you need to have anywhere from 10-20% down to purchase a home. However, the Federal Housing Administration ( FHA ) loan is available to everyone, especially those who cannot make a large down payment. Other agencies offer similar loans as well, such as the Department of Veteran Affairs (VA) and the United States Department of Agriculture (USDA). These do not require a large down payment.

8. “If you go through a short sale or foreclosure, you must wait 7 years before getting another home loan.”

The waiting period for a foreclosure is usually between 3-7 years depending on the down payment and loan type. The most important factor when getting a loan is your credit score, and it can be difficult to improve your score in a few years. However, some situations are different so it is important to speak with multiple lenders.

9. “If you are underwater on your home loan, you are unable to refinance.”

Currently, there are two special government programs that help underwater home loan borrower s, the Home Affordable Refinance Program (HARP) and FHA Streamline Refinance. HARP is available to home owners who have a loan backed Fannie Mae or Freddie Mac, while FHA Streamline Refinance is available to home owners who have a Federal Housing Administration (FHA) loan. Both programs help home owners lower their interest rates and payments.

10. “You can only refinance your home loan once every 12 months.”

Most loans today are backed by Fannie Mae or Freddie Mac allowing home owners to refinance as often as they would like as long as it is just to refinance to lower interest rates, not to get cash out. It is important to take into consideration the length of time expected to be in the home as well as how long it will take to cover the costs of refinancing.

Mortgage misunderstandings can hurt you. It is important to have a full understanding of your mortgage and what is available to you, before making a final decision. Which misunderstanding caught you by surprise?

If you are interested in obtaining a mortgage or refinance loan in Ohio, Pennsylvania or Indiana, call ReCasa Financial Group today at 614.221.6770. Our mortgage and refinance specialists have a great understanding of the permanent financing world.

The post What Do You Know About Mortgages? Part 2 first appeared on ReCasa Financial Group .

Congratulations to Alex, Our Deal of the Quarter Winner October 2013

Fri, 01 Nov 2013 14:36:00 GMT

Congratulations to our Deal of the Quarter Winner, Alex! We are so proud of his great success with his recent rehab project.

The post Congratulations to Alex, Our Deal of the Quarter Winner October 2013 first appeared on ReCasa Financial Group .

What Do You Know About Mortgages? Part 1

Tue, 29 Oct 2013 10:35:00 GMT

Mortgages are rarely fully understood by home buyers since most home purchases only happen every 5-7 years. Many home buyers do not keep up to date on mortgages, as they are only interested in them around the time they want to buy. To help educate, Zillow has created a list of the top 10 mortgage misunderstandings . Here are the first 5 in the list.

1: “Your interest rate reflects the true cost of your mortgage.”

The annual percentage rate ( APR ) actually “reflects the true cost your mortgage.“ The APR includes various aspects of the loan including interest rate, points and other fees, which in theory makes it higher than your interest rate. Compare APRs for mortgages rather than interest rates to get a better understanding of the mortgage.

2. “Mortgage rates are only released once per day.”

Throughout the day, mortgage rates constantly change. These adjustments make it important for home buyers to shop around for rates and obtain loan quotes.

3. “All lenders are required by law to charge the same fees for appraisals and credit reports.”

No law requiring lenders to charge the same amount for appraisals and credit reports is currently issued. Various pricing for appraisals and credit reports allow for competition between lenders .

4. “I must get my mortgage through the same lender I was pre-approved with.”

A pre-approval is issued by lenders as a conditional agreement of the estimated the loan size that the company will lend to the borrower. Most pre-approvals require verification of income and a credit check. A home buyer is able to receive multiple pre-approvals in order to choose the best loan.

5. “You will almost always get the best mortgage interest rates at the bank where you have a checking account.”

It is doubtful that a bank will give you the best mortgage interest rate just because you bank with them. However, some banks do give discounts to their customers. Home buyers should include a quote from their bank as well as other resources to determine the best rate.

Remember, it is important to shop around for loans and receive multiple quotes as there are varying aspects of each loan for each lender.

Which misunderstanding did you have regarding mortgage loans?

Don’t get stuck in a mess of mortgage misunderstandings, tune in next week to read the final 5.

The post What Do You Know About Mortgages? Part 1 first appeared on ReCasa Financial Group .

Fracking Lowers Mortgage Lending Chances

Tue, 22 Oct 2013 13:09:00 GMT

According to MPA , real estate lenders across the United States have a low approval rate of mortgages for properties located near hydrochloric fracturing. Hydrochloric fracturing, or fracking, is the fracturing of rock by a pressurized liquid.

Individual mortgage institutions are enacting policies to protect themselves even more, as Federal Housing Administration (FHA) and Department of Housing and Urban Development (HUD) will not support if surface or sub surface gas rights have been leased within 300 feet of a residential property or property boundary lines.

MPA reports that New Jersey’s Sovereign Bank started to include Mineral, Oil and Gas Rights Riders with their loan packages for locations where fracking is already happening. If the property owner transfers any of the rights or allows any surface drilling activity, the rider states that the mortgage will be automatically revoked, and they must prevent renewal or growth of current lease from the time of signing the contract. A mortgage default could likely happen by signing a gas lease without lender consent.

Please share your thoughts and experiences with us on fracking and/or real estate investing.

The post Fracking Lowers Mortgage Lending Chances first appeared on ReCasa Financial Group .

Credit Score Misunderstandings: Part 2

Tue, 15 Oct 2013 14:07:00 GMT

Credit scores have been around for years, yet credit is still highly misunderstood. Credit score misunderstandings can hurt your chances of obtaining any loan, including real estate loans . According to Liz Weston of MSN Money , there are 10 highly misunderstandings.

Here are the final 5 of the 10 highly misunderstandings. If you missed last week’s first 5, you can read them in the GET REAL Estate Financing’s blog post, Credit Score Misunderstandings: Part 1 .

Misunderstanding #6: Paying off debt is bad.
Paying down debt will help your credit score as it will increase the gap between your credit limit and the amount you have used.

Misunderstanding #7: Overdue medical bills are not bad.
Any overdue bill will hurt your credit score, including medical bills. If a medical bill is turned over to a collection agency , your credit score could drop drastically.

Misunderstanding #8: Closed accounts will disappear from credit reports.
Negative accounts can stay on credit reports and decrease your credit score for a number of years; while a good account could stay on your report forever, helping your score.

Misunderstanding #9: Checking your credit hurts.
Getting your credit report from federally or legitimately mandated sites do not affect your credit score. As previously mentioned, you are able to obtain your credit report annually for free. With doing so, you are able to see if there are any mistakes on your report which then you can fix in order to increase your score.

Misunderstanding #10: No need for credit scores to get a loan.
For most lenders, credit scores are important. When looking for a loan, if your credit score does not meet their lending criteria , you may get denied or ask for a large amount of money down.

While some people may never want to get a loan, credit scores are still important for other financial aspects including insurance premiums, renting, and down payments. Take care of your credit score to better your life financially.

Do you have any to add to the list of credit score misunderstandings? What credit score misunderstandings have affected you and your real estate investments?

The post Credit Score Misunderstandings: Part 2 first appeared on ReCasa Financial Group .

Credit Score Misunderstandings: Part 1

Tue, 08 Oct 2013 10:41:00 GMT

Here are the first 5 misunderstandings. Tune in next week for the final 5.

Misunderstanding #1: No need to agonize about your credit scores.
Many believe that responsible financing will result in high credit scores, or that scores are only important to lenders. However, credit scores do not measure your income or wealth, but are based on how you use credit. Even if you do not use credit, your score can be low or nonexistent.

Misunderstanding #2: Do not close a credit account.
The only times you do not want to close a credit account is a) if you do not have other forms of credit on your credit report, or b) you are in the process of looking for a major loan. If you do not fall under these two, then closing one credit account should not have a big impact on your credit score.

Misunderstanding #3: Multiple credit cards are bad.
Numerous credit cards are not always a bad thing. If you have multiple credit accounts , it is seen as positive to lenders as others have entrusted you with their money.

Misunderstanding #4: Obtaining a credit score is free.
Once a year, you are able to acquire your credit report for free, but not your credit score. If it seems that you received your credit score for free, chances are that it was a addition to costly credit monitoring or that the score is not the once lenders use, a FICO score .

Misunderstanding #5: Debt creates good scores.
Keeping a balance on credit accounts has little effect on your credit score, but paying off monthly balances will give you a good score.

Which of the above misunderstandings have you heard conflicting information about?

The post Credit Score Misunderstandings: Part 1 first appeared on ReCasa Financial Group .

The Government Shutdown & Real Estate Investing

Mon, 07 Oct 2013 13:48:00 GMT

The federal government shutdown began October 1, 2013. The shutdown has already affected borrowers, the housing market and the national economy. According to Mark Zandi, Moody’s Analytics chief economist, the shutdown could cause severe consequences if it is not resolved and the debt ceiling is not raised by October 17th, the day when the government is expected to run out of money.

As the federal government shutdown continues, real estate deals are becoming delayed. The IRS is closed which affects lenders’ ability to verify borrowers’ income via a 4506, a necessary step now in most conventional mortgage lending. The IRS will not process any forms during the shutdown, and loans where tax transcripts are required, such as jumbo loans, are particularly tenuous. Expect delays even after the government reopens due to the lack-log in 4506 requests submitted during the shutdown.

What are your thoughts about the government shutdown and real estate investing ?

The post The Government Shutdown & Real Estate Investing first appeared on ReCasa Financial Group .

Fannie Mae Guidelines Change: How many mortgages do I have now?

Tue, 01 Oct 2013 09:40:00 GMT

This article is written by ReCasa Financial Group ‘s Graham Montigny CRMS.

Fannie Mae , who allows up to ten total mortgaged properties , made a recent change to its guidelines regarding how it counts the number of mortgaged properties each applicant has if the homes are held in the name of an LLC or Partnership. Prior to this change, commercial debt in the name of the LLC or Partnership for a 1-4 family residential home, even if personally guaranteed, was not deemed to be a personally mortgaged property.

Now, mortgage debt for a 1-4 family home owned by an LLC or Partnership, even if a commercial mortgage and not appearing on a personal credit, IS considered a mortgaged property. Wait, it gets worse. If the LLC or Partnership has a commercial blanket mortgage with 12 residential 1-4 family homes held in the blanket mortgage, it now counts as 12 total mortgaged properties. Before the change to the guidelines, it did not count at all.

Corporations, S and C types, however do not have this burden of commercial mortgaged property debt. As a mortgage broker , my active real estate investors who originally formed their businesses as LLC’s are being compelled to change their business structure to an Inc.

Sadly, for those with existing LLC 1-4 family debt there are added steps required before the mortgage debt will not be considered part of the ten total allowable mortgaged properties. The existing vesting of the home must be changed with the county to the Inc, as well the modified underlying note and mortgage with the existing creditor. Once all homes are vested and the debt is held in the Inc. company name, then the homes are not considered a personally mortgaged property.

In some areas, above and beyond the hassle and cost of the various corporate filings, there will be transfer taxes that have to be paid to execute the title change and that can amount to tens of thousands of dollars.

As this change is recent, many CPAs and attorneys are not aware of the new lending rules and may state that this is not required. Please check for yourself. Fannie Mae posts it guidelines for all to read.

https://www.fanniemae.com/content/guide/sel073013.pdf

Go to page 253 and read the section on Multiple Financed Properties for the Same Borrower.

Likely, there will be legal and tax consequences for changing business entity types and we encourage everyone to please seek the appropriate legal and tax advice. This information is offered as mortgage qualifying advice, not legal or tax advice. Having helped my own clients with this change, I am glad to offer insights to the process.

The post Fannie Mae Guidelines Change: How many mortgages do I have now? first appeared on ReCasa Financial Group .

August 2013 Real Estate Foreclosure Decline

Tue, 24 Sep 2013 11:06:00 GMT

Real estate foreclosures are expected to drop to an estimated 52,000 a month in early 2014, which is considered to be a normal amount. While the national level of foreclosures is declining, certain states foreclosure number is still high, which could cause a delay in the appearance of normal amount of foreclosures.

RealtyTrac reports that the following states in which ReCasa Financial Group lends were on the top 10 list for largest number of real estate foreclosures in August 2013:

How are the declining foreclosures effecting your real estate investing?

The post August 2013 Real Estate Foreclosure Decline first appeared on ReCasa Financial Group .

Are All-Cash Buyers Good or Bad Opportunities for the Real Estate Industry?

Tue, 17 Sep 2013 10:23:00 GMT

According to the National Association of REALTORS , 33% of home sales are completed by all-cash offers. All-cash offers may seem like a great opportunity, but there are some down falls.

Pros:

Cons:

While all-cash purchases can be helpful to rehabbers ’ real estate investment strategy , it is important to remember that as a rehabber, you get a better return on invested capital by going a different route.

What are other pros and cons that you find associated with all-cash buyers?

The post Are All-Cash Buyers Good or Bad Opportunities for the Real Estate Industry? first appeared on ReCasa Financial Group .

Life Insurance and Your Real Estate Investments

Tue, 10 Sep 2013 13:46:00 GMT

Life insurance is a unique asset. Because of its potential high yield and its tax-favored benefits, it can be used to solve some of life’s perplexing financial problems including real estate investments and your real estate investing business.

Death Benefit Uses for Life Insurance:

While life insurance products are primarily used for death benefit protection, they are also commonly used for long-term accumulation goals.

Other Uses for Life Insurance:

Some Considerations in the Purchase of Life Insurance

As a real estate investor , which of the previously mentioned benefits is the biggest reason for you to get/have life insurance?

Call Dennis & Nelson Insurance today to learn about the options for Life Insurance.
614.222.0911
http://www.dennisnelsoninsurance.com/

The post Life Insurance and Your Real Estate Investments first appeared on ReCasa Financial Group .

Banks Won’t Lend, ReCasa Financial Group Will

Tue, 03 Sep 2013 11:27:00 GMT

According to mortgage industry expects, “there is a strong market for private lenders due to the current lending restrictions with traditional institutions.” While banks are stepping back from lending to real estate investors , business owners, builders, developers, and others, these individuals are still in high demand for financing. Because of this, mortgage originators are turning to other resources for loans.

When looking for real estate financing, it is a good idea to research your options, whether it be a bank, hard money lender, or private lender. ReCasa Financial Group is one option. ReCasa Financial Group has been around since January 2000. ReCasa Financial Group offers great benefits for their loans including:

Although hard money lenders get a bad rep, they can be another good source for mortgage originators. Unlike ReCasa Financial Group, hard money lenders went out of business from 2008 to 2013. Compared to ReCasa Financial Group, hard money lenders are:

Mortgage originators, as well as other real estate professionals looking for financing, need to expand their options. Brokers can be compensated for their closed rehab loans with ReCasa Financial Group. If you are looking for real estate financing, give ReCasa Financial Group a call today at 614.221.6770 to learn about what we have to offer.

The post Banks Won’t Lend, ReCasa Financial Group Will first appeared on ReCasa Financial Group .

Can a Bank Deposit Hurt Your Chances of Being Approved for Real Estate Financing?

Tue, 27 Aug 2013 11:13:00 GMT

It is known that every penny shown in your back account can help you qualify for a mortgage , but that is not always true. A large deposit of money into a bank account can actually harm your chances of being approved for a home purchase or refinance .

Real estate investors should know that their bank account statements will need to be reviewed in order to be approved for a real estate loan . However, few investors expect the hassle that comes with this step when they are asked to prove deposit sources.

Real estate lenders should not ask for documentation to prove obvious deposits such as employment income or an IRS tax refund. Your bank statement will show the deposit source for these types of deposits. On the other hand, if there is a large deposit that has no source stated the lender will most likely question the deposit and will need proof of deposit source. Large deposits that are not from your employer or a tax refund, like a check or cash from a friend after lending him money, will appear on the bank statement as an “ATM/Cash Deposit.” All “ATM/Cash Deposits” will require proof of deposit source. There is no way to determine what is a large deposit, so the best bet is to not make any “ATM/Cash Deposits” during the processing of getting a real estate loan.

Real estate lenders need proof of deposit source to clarify that no other credit accounts were opened, no cash advances or loans. Any new credit accounts opened between the time of application and funding will need to be reconsidered as they will affect your debt to loan ratio and real estate financing approval. Be honest about any credit account with your lender, as it will jeopardize your acceptance and the real estate lender will find out about the credit accountant.

What tips can you give other real estate investors when it comes to applying for a real estate loan ?

The post Can a Bank Deposit Hurt Your Chances of Being Approved for Real Estate Financing? first appeared on ReCasa Financial Group .

Pittsburgh has Potential to Become Up and Coming City for Real Estate

Tue, 20 Aug 2013 10:55:00 GMT

Pittsburgh’s population steadily declined from 1950 to 2010 from about 677,000 to about 306,000. Job sources declined as the population dropped. However, over the past few years, it has been reported that the population has started to grow and has started to transform from a manufacturing area to a more comprehensive market. The city hosts many large companies including U.S. Steel, PPG Industries, PNC Financial Services, and Google.

With the future intended investments and the population growth in Pittsburgh, it is projected to become an up and coming city. As real estate investors in Pittsburgh, are you seeing any adjustments in the real estate industry that is associated with these investments and changes?

As a real estate lender for Pittsburgh, PA , we are excited to hear the growth of the city and look forward to helping future real estate investors . If you are interested in learning more about what ReCasa Financial Group offers to their investors, please call 614.221.6770.

The post Pittsburgh has Potential to Become Up and Coming City for Real Estate first appeared on ReCasa Financial Group .

Housing Characteristics for the Next Generation of Potential Home Buyers

Tue, 13 Aug 2013 11:20:00 GMT

Housing near shops and mass transit are becoming the popular areas for the next generation of potential real estate buyers . This shift in housing will bring a big change to the real estate market . The Urban Land Institute conducted a survey regarding the generation’s desire for urban living.

The survey results stated:

With this information, we should expect to see great things in the real estate industry. What are the characteristics of the housing areas in which you are looking to purchase your next real estate investment property?

The post Housing Characteristics for the Next Generation of Potential Home Buyers first appeared on ReCasa Financial Group .

Now It Is Easier to Purchase and Refinance

Tue, 06 Aug 2013 16:00:00 GMT

Many individuals have had a hard time receiving a mortgage and/or refinancing over the past few years due to lending criteria. With current economic developments and government program adjustments, individuals are expected to find it easier to get mortgages and/or refinances. Recent data reports that the average lending credit score as of a year ago was 720, while today it has dropped to around 680.

For homeowners who owe more on their property than the property’s value , it has been hard to refinance. These individuals are seen as a risk. However, according to the U.S. Department of Housing and Urban Development (HUD), property values are rising. With values rising, homeowners have a better chance of refinancing with their home’s equity.

One government program, HARP , was designed to help underwater homeowners refinance to a lower interest rate. This program was originally set to end on December 2013, but it has been extended to December 31, 2015. In addition to HARP, there are other government programs to help in these circumstances, such as the Home Affordable Modification Program (HAMP) and the Streamlined Modification Initiative (SMI) . With improvements in the real estate industry, individuals may be able to find it easier to be approved for mortgages.

What is holding you back from purchasing and/or refinancing a real estate property?

If you are looking to purchase or refinance a home, call ReCasa Financial Group today at 614.221.6770, to see what programs are available to help you.

The post Now It Is Easier to Purchase and Refinance first appeared on ReCasa Financial Group .

Is Real Estate Investing the Best Way to Invest?

Tue, 30 Jul 2013 11:44:00 GMT

Home flipping rocketed during the first part of 2013. According to RealtyTrac , the number of homes rehabbed in the beginning of the year rose 19% from a year ago and 74% from the first half of 2011. With this increase came an increase in profit. Real estate investors made an average $18,391 in gross profit per rehabbed home . This was a 9% gross return, and a 246% increase from one year ago.

During the first half of 2013, real estate investors earned an estimated $20,000 on single family homes . As the year goes on, we are expecting to see an increase in real estate investing .

According to Yahoo! Finance , some of the locations in which ReCasa Financial Group lends, saw an average gross profit of between $13,996 and $39,458, and a gross profit between 10% and 32%. These locations include:

You can see the full report on Yahoo! Finance .

Regarding real estate investing, what have you seen happen in the first part of 2013?

ReCasa Financial Group lends to real estate investors in OH, PA, IN, IL, NY, NJ, NC, SC, TN, KS & MO for the purpose of rehab. We offer 100% financing and free prequalification with the rehab program. We have the ability to “cash” an investor out and provide rehab financing if they use cash, or can provide a proof of funds letter to investors who do not wish to use cash.

The post Is Real Estate Investing the Best Way to Invest? first appeared on ReCasa Financial Group .

Buying Remains Cheaper Than Renting

Tue, 23 Jul 2013 09:59:00 GMT

While taking into consideration all of the additional expenses of owning your own home, such as insurance, a down payment, purchase costs, and maintenance on top of the mortgage itself, buying is still cheaper than renting . On average, mortgage rates across the United States remain below 10.5% (which has been the trend since May 1990) there is an advantage of buying and owning over renting.

For 78 of the top 100 largest metro cities, the tipping point where renting becomes cheaper is mortgage interest rates of 10% or higher. In fact, 5 of the 10 top metro cities with the highest mortgage-rate tipping points are areas in which ReCasa Financial Group lends to real estate investors. These cities and their tipping rates include:

Even with these low interest rates, there is still a balance between buyers and renters . As a real estate investor , are you seeing more individuals looking to rent or to buy?

The post Buying Remains Cheaper Than Renting first appeared on ReCasa Financial Group .

Foreclosures on the Rise, Rentals Increasing

Tue, 16 Jul 2013 11:28:00 GMT

While home builders are under delivering, the supply of inventory is low. This means existing homes and rentals are going faster, allowing multi-family properties rent to increase by 15% in the past year.

Currently, an estimated 6 million properties are in foreclosure in the United States. With the rise of foreclosures, the need for rentals will also rise. When foreclosures take place, those individuals need to find a new home causing them to turn to renting.

As a rehabber, how does the current inventory shortage affect your real estate investing?

The post Foreclosures on the Rise, Rentals Increasing first appeared on ReCasa Financial Group .

8 Improvement Ideas for Rehabbers to Succeed at Flipping – Part 2

Tue, 09 Jul 2013 10:16:00 GMT

Here is the second part to our two part series, 8 Improvement Ideas for Rehabbers to Succeed at Flipping . If you missed the first 4, feel free to go back and read them after these.

5. Decorating

Decorating the home may be the biggest obstacle. Buyers want to see themselves in the home. What you as the rehabber might find appealing, buyers may not. Instead they will see the cost of redecorating the space. Your best bet is to paint the walls with a neutral color; don’t go for the bright colors… it might scare them away. Some rehabbers like the option of staging a home . This can help as long as you do it correctly. You do not want to over stage. Large furniture will take up room and make the space feel small. Lighting and mirrors can be used to add dimension to a room.

6. Square Footage

Homes need to fit modern lifestyles and interests. While rooms with no real purpose are a plus for homeowners (as they can do what they wish with them), buyers can be turned off by them. These rooms may be perceived as wasted space, and the missing square footage takes away from the property’s value . Changing a space back into its proposed function can be a vast project, for buyers who will focus on the cost of the change. It is best to designate a purpose for each room and make sure buyers understand it’s purpose.

7. Baths

Who would want to have a dirty bathroom? If the bathroom is outdated, there are simple ways to update the look and feel. No matter your budget, a rehabber can renovate small items to make the bathroom look clean and inviting. It is reported, that rehabbers can expect an 80% return on investment if you were to revamp the bathroom from ceiling to floor. If they are working with a small budget, make sure the bathroom is clean, smelling fresh, and well-decorated.

8. Designs

Keep in mind that when you conduct design renovations , not everyone wants artsy or futuristic designs. It is harder to find someone with these specific wants than those looking for basic design elements. Buyers who want something more mainstream will only think about the projects and cost of replacing these items. It is a good idea to keep with basic design elements that will welcome all types of buyers.

That completes our top 8 list of improvements. What would you add to this list?

The post 8 Improvement Ideas for Rehabbers to Succeed at Flipping - Part 2 first appeared on ReCasa Financial Group .

You’re Invited to Indiana’s Real Estate Expo!

Wed, 03 Jul 2013 10:03:00 GMT

You’re Invited to Meet
ReCasa Financial Group’s
Graham Montigny and Erik Williams!

Indiana Real Estate Expo 2013
Maximize Your Resources

Admission is FREE
July 18, 2013 4:00 – 9:00pm
The Ritz Charles Carmel, IN
Hosted by Central Indiana Real Estate Investors Association

Stop by ReCasa Financial Group ‘s booth to get answers to
your real estate financing questions!

PURCHASE – REFINANCE – REHAB

614.221.6770

The post You're Invited to Indiana's Real Estate Expo! first appeared on ReCasa Financial Group .

8 Improvement Ideas for Rehabbers to Succeed at Flipping – Part 1

Tue, 02 Jul 2013 13:50:00 GMT

As has been true for the past years, buyers have the upper hand when it comes to a real estate purchase, which creates obstacles for rehabbers to overcome. Rehabbers need to balance between prudent choices while investing in features that buyers might desire. This will help real estate investors become more successful in terms of return on investment when flipping .

Below is the first in our two part series, 8 Improvement Ideas for Rehabbers to Succeed at Flipping , that we want to share with you.

1. Landscaping

As the saying goes, “First impressions are everything.” The first thing buyers see is the outside of the property. It is critical that the rehabber draws in buyers. If buyers do not like the look from the outside, then they will have a negative perspective going forward while touring the interior. You want all potential buyers to fall in love with the place from the curb. The landscaping helps to welcome buyers into the home. Landscaping can be a simple fix if you make the effort to keep the grass cut, flowerbeds weed free and mulched, and place a few plants and flowers around the outside of the home.

2. House Exterior

In conjunction with landscaping, the rehabber needs to consider the overall exterior of the house, as this is part of the curb appeal. Dirty windows, chipped or faded paint, broken items, and signs of neglected maintenance will decrease the value of a home. It is important to have functioning gutters and downspouts, in order to divert water away from the foundation to protect property. Other things to consider are any structures such as fences, decks and sheds. Are these additions helping or hurting you? Addressing these exterior items will not only increase your value , but will show potential buyers that you take care of your investment .

3. Water

Pools, hot tubs, waterfalls, and ponds may seem like a great addition to any rehab project , but to buyers they might be seen as another expense to maintaining the property. Buyers will not only need to pay for the running of each item, but also for the upkeep overtime. These items can also be seen as a potential danger to families with young children. If the buyers fall in love with the home, but dislike the water features, they may ask for it to be removed which will become an additional unwanted expense for the rehabber. If the buyers really want a water feature, they will be able to add it in themselves. This is a luxury option that the rehabber should leave up to the buyer.

4. Kitchens

Kitchens are one of the most important aspects of a home. Families want to envision hosting parties and teaching their children how to cook in a beautiful kitchen. Kitchens can be an expensive renovation , but the good news is that it is reported that you can recoup up to a 90% return on investment . Large budgets for kitchens can include all new appliances, cabinets, counter tops, and flooring. If you want to opt for a smaller budget , fresh paint, new door handles, and updated lighting are always easy. A kitchen renovation can have a large impact on the buyer’s view of the home.

What improvement tips do you have for other rehabbers? Tell us about them and help other real estate investors become successful!

Remember to come back next week to read about the remaining 4!

The post 8 Improvement Ideas for Rehabbers to Succeed at Flipping - Part 1 first appeared on ReCasa Financial Group .

Share Your Thoughts On Real Estate Investing

Tue, 25 Jun 2013 09:07:00 GMT

We want to hear from real estate investors! Please take this short, 10 question survey to help us, ReCasa Financial Group , better understand you and your real estate investments.

Take the Survey Now

The post Share Your Thoughts On Real Estate Investing first appeared on ReCasa Financial Group .

Judicial State Real Estate Foreclosures Had a 17% Sales Rate Increase

Tue, 18 Jun 2013 13:01:00 GMT

From March to April this year, judicial state real estate foreclosures had a 17% sales rate increase. This real estate increase was the highest sales rate boost since the standstill in 2010. According to Lender Processing Services (LPS), judicial states currently have a three times larger real estate inventory than non-judicial states, while national inventory has reached seven times more than the 2010 point. Amongst the judicial states are ReCasa Financial Group ’s markets of Illinois, Indiana, Kansas, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and South Carolina.

According to LPS statistics, overall housing progresses are promising.

While some real estate investors have already lowered their interest rate from refinancing, LPS reports that an estimated 9 million could still benefit from refinancing their real estate properties .

What are you personally experiencing in terms of inventory of foreclosed homes? Let us know.

Do you have a high interest rate on an existing investment property? Let us help you.

The post Judicial State Real Estate Foreclosures Had a 17% Sales Rate Increase first appeared on ReCasa Financial Group .

Top Real Estate Rehab Cities in the United States

Tue, 11 Jun 2013 12:45:00 GMT

Looking for the best city to rehab a real estate property ? RealtyTrac released a report with the top cities for real estate rehab investments . Among the top cities include ReCasa Financial Group markets Chicago, Illinois; Cleveland, Ohio; St. Louis, Missouri; and Cincinnati, Ohio.

As prices continue to rise, real estate investors are becoming more confident in the real estate market . These top cities are perfect for rehabbers , as builders seem to avoid these areas. RealtyTrac looked at homes built before 1960 with an estimated home value of under $100,000 as these types of real estate properties are best candidates for profitable rehab investments . RealtyTrac found more than 51,000 prospective fixer-uppers in these top cities.

How would you describe the success of the real estate industry today? Which real estate properties do you find are the best candidate for profitable rehab investments ?

The post Top Real Estate Rehab Cities in the United States first appeared on ReCasa Financial Group .

Central Ohio Home Sales Increased in April

Tue, 04 Jun 2013 09:46:00 GMT

It was reported by the Columbus Board of Realtors that last month 2,390 single-family houses were sold in the Central Ohio territory. This number rose from 1,834 in April 2012. The median cost of the home crept down from 140,000 a year ago to $137,900. Also in April 2013, there were 3,965 new real estate listings , the highest in the past three years.

As a rehabber in the Columbus area, how has increase in sales impacted your business?

Follow the link for more information on the report from the Columbus Board of Realtors .

The post Central Ohio Home Sales Increased in April first appeared on ReCasa Financial Group .

Real Estate Purchases and Refinance Changes as of June 3, 2013

Tue, 28 May 2013 13:12:00 GMT

Looking to purchase or refinance your real estate property? A few FHA changes will be taking affect on June 3 ^rd , which could have a large impact on your real estate financing decisions.

According to the U.S. Department of Housing and Urban Development’s (HUD) Mortgagee Letter 2013-04, those who will purchase or refinance after June 3 ^rd will have to pay mortgage insurance for 11 years or for the life of the loan, unless the purchaser puts down 10%. The length of the insurance payment differs depending on the type of loan. If the purchaser puts down the 10%, the annual mortgage premium can be eliminated after 11 years.

It is important to get an FHA case number before June 3 ^rd , as to not run into these new regulations and to secure the previous regulation of eliminating the mortgage insurance payments once the home’s equity reaches 22%.

For those looking to purchase or refinance, please take these changes seriously and act soon. In addition to these new statements, mortgage interest rates are increasing and are expected to reach mid 4% by the end of 2013.

If you are looking to purchase or refinance in OH, PA, or IN, please call ReCasa Financial Group today!

Shane Forrestal: OH
614.221.6347
sforrestal@recasafinancial.com
NMLS # 900083 OH License LO 042287.000

Graham Montigny: OH, PA, IN
614.309.0427
gmontigny@recasafinancial.com
NMLS# 195412 OH License LO 002049.000 IN LO 195412 PA: 35011

ReCasa Financial Group
614.221.6770
130 E. Chestnut Street, Suite 200
Columbus, OH 43215
OH: MB.803923.000 IN: 08-0038 LB PA: Licensed by the PA Department of Banking

The post Real Estate Purchases and Refinance Changes as of June 3, 2013 first appeared on ReCasa Financial Group .

New Jersey Added to ReCasa’s List of States for Rehab Financing!

Thu, 23 May 2013 14:09:00 GMT

ReCasa Financial Group is now offering rehab financing in New Jersey !

Call today to learn about ReCasa Financial Group ‘s 100% financing for rehab investments .

Steve Radomile
614.221.6770
sradomile@recasafinancial.com

The post New Jersey Added to ReCasa's List of States for Rehab Financing! first appeared on ReCasa Financial Group .

Do You Know the Quitclaim Risks?

Tue, 21 May 2013 09:32:00 GMT

For years real estate gurus have been recommending that real estate investors place their properties in a business entity, like a LLC or trust, to shield them and their other assets from potential liabilities associated with a real estate holding.

This is sound advice from a legal and liability stand point. However, this strategy can limit the investor’s access to real estate loans or can increase their cost since the cheapest loan product, Fannie Mae compliant paper, does not lend to business entities, only individuals.

Investors and certain gurus have the solution. Get the loan in your individual name and then Quitclaim the property to your business entity. As long as you are making the loan payment, the lender does not care and you will accomplish your objective of shielding yourself from risk.

You may be trading one risk for another!

Conceptually, imagine you lend someone money for a property and take such property as collateral for the loan. Suppose you find out that the borrower has transferred your collateral to a business entity. Would you feel secure? Well neither do the lenders! A Quitclaim deed does not guarantee the property is free of debt or liens. You have legally breached the agreement with your lender when you Quitclaim a property.

There are two primary sections of the mortgage documents that you violate with a Quitclaim, “Due on Sale” and “Events of Default”. Below are excerpts from real mortgage documents :

DUE ON SALE – Lender may, at Lender’s option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender’s prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A “sale or transfer” means the conveyance of Real Property or any right, title or interest in the Real Property.

EVENTS OF DEFAULT – Grantor will be in default under this Mortgage if any of the following happen: transfer of title or sale of the dwelling. Upon occurrence of an Event of Default and at any time thereafter, Lender may exercise any or one or more of the following rights and remedies: Accelerate Indebtedness, Collect Rent, Reimbursement of Attorney’s and other fees and expense.

For violating the agreement a lender can require full payment of the loan and the lender could demand reimbursement for all expenses and potentially enforce the “Default Interest” rate.

The financing landscape has changed. Lenders are closing and being taken over by the government, other lenders or financial institutions. Many of the loans are now handled by “Servicing Companies” who are under severe scrutiny for their actions and inactions. All constituents are following the “Letter of the Law” to minimize exposure, risk and protect their collateral interests in real estate mortgage.

With the witch hunts that regulators, service companies, lenders, banks and their attorneys are conducting due to the financial crisis, do you want to take the chance that they enforce their legal rights per the documents with your Quitclaim transaction?

Proper insurance combined with an umbrella policy can cover most of your risks.

Which is more risky? Insurance or Quitclaim? Are you feeling lucky?

The post Do You Know the Quitclaim Risks? first appeared on ReCasa Financial Group .

Fannie Mae Purchase Contracts – Deed Restrictions

Tue, 14 May 2013 10:45:00 GMT

The purchase contract that Fannie Mae requires buyers to use when purchasing their properties contains a clause in which the buyer agrees to receive a deed containing deed restrictions. The deed restrictions can effectively prevent how the real estate investor is able to finance his or her rehabs . The deed restrictions prevent buyers from selling the property for greater than 120% of the original purchase price for a period of 3 months from the date of their purchase. Furthermore, it prevents the buyer from mortgaging the subject property in the principal amount of greater than 120% of the purchase price for a period of 3 months from the date of their purchase.

However, many real estate agents are unaware that you can request this clause to be amended or removed. The seller may not accept the changes, and they are solely allowed to make this decision. Yet, we have seen this done successfully in most circumstances and Fannie Mae seems to be more accommodating than perhaps the agents are aware. Negotiating away this deed restriction is easier done on the front end of the contract talks rather than springing it on the asset manager down the road, especially if there were originally multiple offers, as is the case lately. It requires patience, strong negotiation skills, and persistence, but if the project is a good one, it is well worth the effort. As they say, the answer is no, unless you ask!

Have you experienced these restrictions before? If so, how did you handle them?

The post Fannie Mae Purchase Contracts – Deed Restrictions first appeared on ReCasa Financial Group .

Tips for Future Real Estate Investing

Tue, 07 May 2013 09:26:00 GMT

The real estate crash from 2006 – 2011 taught real estate investors practical lessons. As the real estate industr y recovers, more and more investors are looking for homes to purchase and flip for profit. According to RealtyTrac , rehabbers averaged $37,375 per flip in 2012, and real estate flipping is on the rise.

Regardless if you are an experienced rehabber or just getting into the business, we would like to share a few helpful house flipping tips and information presented by Yahoo! Finance . This list includes the best places for real estate , how to finance a real estate investment , how to stick to a budget, and tips to be prepared for after the sale. What experiences and tips can you add to this list?

The New Rules of House Flipping

The post Tips for Future Real Estate Investing first appeared on ReCasa Financial Group .

ReCasa’s Deal of the Quarter Winner – April 2013

Mon, 29 Apr 2013 14:42:00 GMT

Congratulations to ReCasa Financial Group ‘s Deal of the Quarter Winner, Gary L.!
We want to congratulate Gary on a successful real estate investment!

The post ReCasa's Deal of the Quarter Winner - April 2013 first appeared on ReCasa Financial Group .

Recovering Credit Waiting Period

Tue, 23 Apr 2013 11:05:00 GMT

The 2007-2008 great recession and the real life consequences of short sales, foreclosures, bankruptcies and other bad credit issues is slowly fading away. Many former home owners would like to purchase again, but are unsure if they can apply for a new mortgage with any likelihood of success.

Depending on the loan program selected and the cause of the credit issue, there are different waiting periods before one can apply to buy. The waiting period is tied to the application date, not the closing date. We cannot accept an application and just wait for the time to pass, and then close. The waiting period must pass before an application may be started.

Please note that guidelines do change. We have included an up to date Recovering Credit Waiting Period chart below. Is it time for you to be approved?

The post Recovering Credit Waiting Period first appeared on ReCasa Financial Group .

20 MARKETS WHERE BUYING RENTALS STILL MAKES SENSE (AND DOLLARS)

Tue, 16 Apr 2013 10:30:00 GMT

On April 3, 2013, RealtyTrac released a new report listing the top 20 cities nationwide for purchasing single family rentals. Amongst those cities, were Toledo and Dayton, Ohio, and Kansas City, three cities in which ReCasa Financial Group lends 100% financing for rehab projects . This list is determined by the “median sales price and the average rental rates for 3-bedroom homes.” This report takes a look further into these locations and compares their cap rates and cash flow.

Read the full report by following the link below.

20 MARKETS WHERE BUYING RENTALS STILL MAKES SENSE (AND DOLLARS)

The post 20 MARKETS WHERE BUYING RENTALS STILL MAKES SENSE (AND DOLLARS) first appeared on ReCasa Financial Group .

Contractors – Who can I trust?

Tue, 09 Apr 2013 10:25:00 GMT

Seasoned real estate investors and newbies face the same challenge in finding reputable contractors that will show up and do quality work at a reasonable price and timely manner.

Referrals from friends, relatives or business acquaintances tend to be the most common way to find a contractor. This can be a time consuming process and results may vary in terms of the contractor’s performance on your project versus the work they did on your friend’s project.

The cyber world has brought us a couple of options that bring some credibility to finding a trustworthy service provider. These services have leverage over the contractor’s performance based on you being empowered to provide feedback and ratings of their performance.

Both Angie’s List and Build Zoom have web sites that help you find contractors, but more importantly, they solicit ratings of the contractor’s performance from the people who use them. This provides an incentive for the contractor to perform and make things right on each and every project. Their reputation can mean higher ratings, which equates to more business for them!

Build Zoom has a similar model, but has not been in business as long and is not as large as Angie’s List. However, it is focused on the home pro and contractor industry and in addition to reviews, provides information on the licensing status of the service providers. The site also provides photos of examples of work completed in some instances.

Keep these sites in mind when choosing contractors. We always recommend three quotes for each project. It may take additional time to schedule appointments, but will more than pay for itself in terms of the quality, timeliness and potentially the cost of the repairs or renovations. Three quotes will also make sure you are not missing items and prompts questions and ideas.

One of the negative aspects of these sites could be cost. The highest rated contractors are typically going to have the greatest demand and can command a higher rate for their services. Minimizing costs on projects is important. However, the savvy investors know how to factor quality and timeliness into the value equation to maximize the profitability of the project. Examples of factors that could make a more reliable and slightly more expensive option more valuable is when contractor A is $1,000 cheaper, but is an unknown quantity and ends up taking 3 months longer than the more expensive option or does poor work that requires you to get it redone.

The sites mentioned in this article may be helpful in identifying reputable contractors.

The post Contractors – Who can I trust? first appeared on ReCasa Financial Group .

PROPERTY BID CHEAT SHEET!

Tue, 02 Apr 2013 10:58:00 GMT

Savvy investors have strictly followed the philosophy of “You make money when you buy the property!”

The improvements are just part of the blocking and tackling.

With high competition for properties in attractive areas, it will take hard work and many offers to land the property that has a high probability of generating attractive profits or building immediate substantial equity that enhances cash flow!

To efficiently process a larger volume of opportunities you will need to systematize your approach.

The first step is to use a spreadsheet or piece of paper to create a template of the formula for success. When investing in rehab projects , it is best to work backwards to solve for the “Maximum Purchase Price” for each property.

Step 1 – You identify a property. It is presented by a realtor, referred to you or you drive by it. First thing you must do is set a market value expectation for the property. What are homes with similar amenities, (bedrooms, baths, garage, square footage, etc.) selling for in the area. Most accurate estimate of value will be to get at least four sales comparables that are within one-half of one mile and have sold within the past six months. If you have trouble finding these types of sales comparables, so will an appraiser when you go to sell the property or refinance it. This might be a reason to lower your LTV% (loan to value) target. Add up the purchase prices of those properties and calculate the average. This will be your estimated market value or what you think you could sell the property for in the present.

Step 2 – Determine scope of work that will be required for entire project. It is recommended that you get three estimates for the work. This will help you identify the full list of improvements needed and provide additional ideas from the contractors. The more detail the better for each improvement item and quote. This will be deemed the improvement amount.

Step 3 – Set a target maximum loan to value (“LTV”) which builds in the inverse of the amount of gross profit that will be in the transaction. 65% to 70% LTVs are safe targets for most areas and will provide flexibility for unforeseen issues, longer sales times, realtor fees and seller concessions.

We are now ready to set up our template as follows:

Numeric Example:
123 Elm Street – Asking Price $69,000
Sales Comparable 1         $105,000
Sales Comparable 2         $90,000
Sales Comparable 3         $110,000
Sales Comparable 4         $95,000
Market Value                    $100,000 ($105,000 + $90,000 + $110,000 +95,000 = $400,000/4)
Maximum LTV                   70%
LTV Discount Amount    $70,000 ($100,000 * 70%)
Less Improvements        $20,000
Maximum Offer Price    $50,000 ($70,000 – $20,000)

To be successful you need:

1.) To be disciplined on following the formula and bidding based on results. Do not fall in love with a house or let your ego make you want to win the bid! This is an investment and business transaction. Emotions will cost you money!

2.) Establish a relationship with a realtor who is willing to provide the sales comparables and submit numerous offers. Their assistance is invaluable. You can reward them be being loyal and giving them your listings. Alternatively, you could also get your realtor license.

3.) Build a stable of contractors that are reliable and responsive. Asking them to walk through numerous properties to provide bids will give you a better idea of how they will operate.

4.) Make sure you understand deed restrictions. Some sellers, like HUD, will limit the amount of debt you can put on the property. This could eliminate your ability to obtain loans for the repairs.

5.) Remember, larger proportion of improvements means higher risk due to potential surprises, (the more moving parts the more parts that could be broken), and longer renovation period. During construction these projects are non-earning assets. Meaning, you are not collecting any rent and you are not pocketing the profit from the sale. The longer the renovation period, the more that can go wrong. Think break in, storm damage, fires, bursting pipes and vandalism.

This approach and formula works for rehab projects that are being sold and for projects that are held for rentals . When sold, the real estate investor collects their profits at closing. When kept as a rental, the real estate investor collects cash flow over time and has a larger built in equity position which typically lowers borrowing costs and enhances the cash flow.

MAKE YOUR MONEY WHEN YOU BUY THE PROPERTY!

The post PROPERTY BID CHEAT SHEET! first appeared on ReCasa Financial Group .

Your Credit Score – Can Cost You Dearly!

Tue, 26 Mar 2013 10:49:00 GMT

For years ReCasa Financial Group associates have been preaching the importance of credit scores to our current and prospective clients. From our perspective, the credit score is a real estate investor’s most important asset!

Most understand how a credit score can impact the cost and availability of loans . However, many do not realize that credit scores impact several other areas including insurance .

Credit scores are used by insurance companies in their decision making process to approve or renew policies and to set premiums if they do approve the client and their property. You can be declined for insurance, just like a loan, if your score does not meet the provider’s criteria.

Insurance companies are experts at analyzing data. They have found a strong correlation between credit scores and claims. Simply put, clients with poor credit file more claims than those with strong credit scores. Insurers figure that if you are responsible when handling your financial matters then you will take better care of problems with your home or car that may lead to a higher probability of filing a claim. Think of a leaky roof and what type of damage that could lead to if not repaired immediately.

Many investors use loans to finance their real estate holdings . The lenders require insurance. The premium or cost of insurance can be dramatically impacted by your credit score, up to 40% in some instances. Paying higher rates impact real estate investors dramatically since they may hold 5, 10, 50 properties that require insurance.

There are number of factors that insurers use to determine the premiums or rates they will charge a client and they can be very different for each carrier. But, they are consistent in one way. Even if you have a perfect record and have not filed a claim in years, or ever, but your credit score declines you could be faced with large increases for renewal and could be declined for auto, home and real estate coverage.

Purchasers of insurance may not agree or like the insurance carrier’s inclusion of credit scores in their analysis of risk. Numbers don’t lie. There is a higher probability that people with credit issues will file more claims or even false claims.

Protect your credit score! The exponential cost of higher interest rates for loans and insurance premiums for multiple properties makes that score even more valuable for real estate investors than the normal consumer.

The post Your Credit Score – Can Cost You Dearly! first appeared on ReCasa Financial Group .

How Much Does Your Interest Cost You?

Tue, 19 Mar 2013 12:09:00 GMT

When considering rehab financing , there are many variables you need to take into consideration. We all tend to get caught up in points and terms, and seem to disregard other pertinent information. One of the most important aspects of a real estate loan is the interest rate. Specifically, on a loan based on draws ( rehab loan ); the interest rate can make or break you. Some hard money will charge you interest on the entire loan amount, while others only charge you for what you use. Let’s see how the two compare to each other with an example of a loan for a property with a purchase price of $70,000, rehab costs of $30,000, and a completed project in 9 months.

Option A – Interest paid on full loan amount or commitment at 9.5% (Some Hard Money Lenders)

Option B – Interest paid on outstanding amount at 9.5% (Specialty Lenders like ReCasa Financial Group )

Let’s see if there is a cost difference between the ways interest is charged:

Just by using a different real estate lender at the same interest rate, you saved $1,032 in interest charges. Keep in mind that this was for a $100,000 loan at a 9 month term, thus your savings could potentially be greater for a larger loan amount . Note that these calculations will vary by draw schedule and loan amounts.

Now you can see that points and terms are not the only thing you should be concerned about. How your interest is calculated can maximize profits!

The post How Much Does Your Interest Cost You? first appeared on ReCasa Financial Group .

Some Real Estate Investors are on Target

Tue, 12 Mar 2013 09:34:00 GMT

On March 6 ^th , RealtyTrac released a list of the top 15 cities for buying short sales and another list for the 15 best markets for buying bank-owned properties. Noted in these lists are various cities and states in which ReCasa Financial Group lends , including Ohio (where ReCasa is headquartered), North Carolina, Tennessee, and Illinois.

While the short sale list is dominated by cities in California, the top 5 cities for the best markets to buy bank-owned properties include three Ohio cities, Cleveland (No. 1), Dayton (No. 2), and Columbus (No. 4). Third place was given to Charlotte, NC.

Read the full report below.

Better to Buy Bank Owned or Short Sale?

The post Some Real Estate Investors are on Target first appeared on ReCasa Financial Group .

Real Estate Refinancing

Thu, 07 Mar 2013 16:04:00 GMT

The combination of high demand for rentals , good inventory at attractive prices, and low interest rates have made it a potential once in lifetime buying opportunity for rehab and turn-key investors that are focused on building a rental portfolio to create wealth and financial freedom. ReCasa Financial Group has a number of lenders with appetites for investment propert y loans with 30 year fixed rates that can lock in strong cash flow for years to come.

Is a ‘refi apocalypse’ upon us?

Recasa Financial Group License Info
NMLS# 9722, OH: MB.803923.000, IN: 08-0038 LB, PA: licensed by the PA Department of Banking
Graham Montigny: NMLS # 195412, OH License LO 002049.000, IN LO 195412, PA: 35011

The post Real Estate Refinancing first appeared on ReCasa Financial Group .

Delayed Financing

Tue, 26 Feb 2013 09:14:00 GMT

Read Wealthy House Hunters Are Using Delayed Financing To Beat The Competition .

Today, there is no cash-out waiting period. Furthermore ReCasa Financial Group offers both the traditional Delayed Financing as well as an enhancement to allow investors who need to make repairs to the property to borrower monies necessary to complete. For more information please contact 614-221-6770 or visit our website www.recasafinancial.com .

The post Delayed Financing first appeared on ReCasa Financial Group .

Someone You Need to Know – Top 10% Most Viewed on LinkedIn

Tue, 19 Feb 2013 09:28:00 GMT

Connect with Graham Montigny

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Tax Tips for Real Estate Investors

Tue, 12 Feb 2013 10:03:00 GMT

Mortgage Qualifying Today and Tomorrow
By: Graham Montigny, CRMS
Product Manager at ReCasa Financial Group

A tax professional is trained and motivated to do two things, get tax forms right and minimize tax liability. They are not trained to make sure that tax returns are constructed in such a way that maximizes income for mortgage loan qualifying purposes. Most real estate investors are not tax experts. They just sign the tax documents where indicated by their CPAs and then send in the tax returns. This can unknowingly have a negative impact on their access to low cost financing.

An active real estate investor needs and requires access to capital, otherwise they are stuck using cash, personal credit, and other expensive arrangements not entirely under their control. To maintain adequate access to low cost funds all lenders will be very interested in the ability to repay the loan and will insist on verification. The days of “stated income” and “no income” loans are a thing of the past for residential real estate loans. The main source of information that most lenders rely on is what is submitted to the IRS, or more simply the tax returns averaged over two years, the amount one claims as income, the amount and classification of expenses, and how one pays for operational costs. ALL of this information matters when it comes to maximizing your “mortgage” income .

Let’s start with the basics and several tips:

1: Whether owned in a personal name or a business entity, establish a business checking account for your real estate activities .

2: An absolute must is to make certain that the bank you choose provides an online functionality that allows you to print copies of any and all transactions made . Fannie Mae (FNMA) requires ALL deposits in excess of 15%, in single or in aggregate, of standard payroll deposits to be verified and proven. If your bank does not have a website that is robust enough, this task can be almost impossible to achieve, especially if your tenants pay in cash. By splitting out the business activity from personal, the personal checking account can be used solely for loan approval reasons without having to verify every non-payroll deposit.

3: Do not co-mingle funds . Keep personal accounts for personal reasons and business accounts for business reasons. Have the business pay all its debts from the business account. If you need to move money from one account to the other, be sure to write yourself an invoice and retain for record keeping, calling it a loan from or to owner, share holder, or member. Loans are not income. Repayment of the loan from or to a stock holder is only taxable income in the amount of interest paid. Re-paid principle is not income. If you dig into your own pocket, make sure the business pays you back.

4: Establish some business credit cards even if they are in your own name . Make certain that 100% of the credit card payments are paid by the business account.

For example, an applicant approached me frustrated because he believed to have had great credit, cash in the bank, and to have MADE money with his dozen rentals on top of his day job, but all the banks had turned him down for debt ratio. I asked for his last two years of tax returns so I could help. He had 14 credit cards, all with balances and totaling about $78,000 in debt. His minimum payments were $2,340 per month. My knowledge of taxes allowed me to notice that in his deductions, not only was he claiming mortgage interest, but “other” interest as well.

When I inquired what all this “other” interest was he explained, “Oh, whenever I get a home I give it a credit card. That credit card pays for repairs and other expenses for that house, and that house’s rent covers the mortgage and its credit card.” I asked do you have a business checking account for the rentals.

He did. I asked could we prove the business account made the last 12 payments in a row on these credit cards, which we could with his on line bill pay. Because he properly set up and documented his business expenses, we were able to make that $2,340 leave his debt ratio and he went from 88% debt ratio, denied to 32% debt ratio approved. Loan officers matter too. An active real estate investor’s tax returns are usually beyond the ability of most mortgage originators to underwrite and they simply forward the tax returns with minimal review and no explanation. You need an experienced specialist to make sure all allowable income is counted and all allowable add backs, like one-time expenses, repairs and upgrades or depreciation are included for loan qualification purposes.

5: Document depreciable improvements, add to acquisition costs and write offs . Depreciate everything you can, as much as you can. You never write a check to depreciation and we call that income for loan qualifying purposes. I regularly see taxes with no depreciation claimed on a property bought 3 years ago with $40,000 in rehab costs. Help your CPA by letting them know what repairs and upgrades you made on the property during the year. Many expenses incurred after purchase can be added to the basis price and depreciated such as a furnace, air conditioner or a roof.

For example, I was reviewing my applicant’s taxes and saw $18,000 in “supplies” for that tax year. That is $1,500 a month! I asked what this was and she explained it was the supplies for rehab of the home. It was for windows, roofing, etc. She coded these expenses as “supplies” in her accounting program and her CPA did not inquire. Were it properly documented this cost of rehab would not be held against her income for that tax year and would have lowered her debt ratio more than 25%. The method of expensing did achieve absolute tax minimization but at the detriment of her ability to get approved for a loan. She could also be faced with penalties and fees if ever audited.

6: Do not claim mileage in excess . It is an easy way to lower your tax liability but there is no way we can wash it out or add it back to your income. If you claim it, it is an expense.

Once you find that mortgage individual who knows how to review tax returns, be sure to show your taxes to them before filing. The industry has stopped allowing an applicant to amend their taxes and apply for a loan using the amended tax returns. Once you file, you own it for two years as the industry averages the last two years income in review of the ability to pay.

Let’s finish with this thought.

If that $6,000 income tax refund you get in April causes you to be ineligible for a new loan in your own name for the next two years, overall how expensive was that refund? How do you grow your real estate business without access to loans? Think, how many deals you cannot do, all for a $6,000 tax refund?

If you would like to speak to an expert on qualifying for a mortgage , please feel free to contact me, Graham Montigny CRMS, at 614-309-0427.

*The above is not legal advice or tax advice. The above IS mortgage qualification advice.

The post Tax Tips for Real Estate Investors first appeared on ReCasa Financial Group .

Tomorrow: DIY Series Made for Contractors, Remodelers & Home Pros

Tue, 05 Feb 2013 08:58:00 GMT

Register Now!
The First “Everything Revealed” DIY Series Made for Contractors, Remodelers & Home Pros

Many contractors have leveraged their expertise and connections to fuel their expansion into real estate investing . Replacement contractors, remodelers, general contractors, HVAC, roofers and designers are examples of industry specialists that can use the cyber world to generate business for their “day job.” Real estate investors that are doing rehab projects in essence act as a general contractor for themselves.

The post Tomorrow: DIY Series Made for Contractors, Remodelers & Home Pros first appeared on ReCasa Financial Group .

How to Increase the Return on Your Investment Property

Tue, 29 Jan 2013 11:15:00 GMT

Most real estate investors continuously ask themselves how they can create more return on their investments, but hardly come up with an approachable answer. Top Five Strategies to Increase Your Investment Property’s Return from the blog Real Estate News & Analysis , provides five great tips to help investors earn the greatest return. These steps are easy, affordable, and motivational, and help keep the business organized. What tips do you find helpful?

The post How to Increase the Return on Your Investment Property first appeared on ReCasa Financial Group .

The First “Everything Revealed” DIY Series Made for Contractors, Remodelers & Home Pros

Wed, 23 Jan 2013 14:50:00 GMT

Many contractors have leveraged their expertise and connections to fuel their expansion into real estate investing . Replacement contractors, remodelers, general contractors, HVAC, roofers and designers are examples of industry specialists that can use the cyber world to generate business for their “day job.” Real estate investors that are doing rehab projects in essence act as a general contractor for themselves.

This FREE webinar can provide valuable information for the home service pros and real estate investors who are considering using online marketing or improving it in order to grow and build wealth and financial fr eedom .

Register Now!
The First “Everything Revealed” DIY Series Made for Contractors, Remodelers & Home Pros

The post The First "Everything Revealed" DIY Series Made for Contractors, Remodelers & Home Pros first appeared on ReCasa Financial Group .

What Will Your Investment Give You In Return?

Tue, 22 Jan 2013 16:36:44 GMT

What Will Your Investment Give You In Return?

One of the most important tools to use when analyzing real estate investment opportunities is return on invested capital (ROIC) which is also known as “Other People’s Money.”

The question you may find yourself asking is, “How do I compare projects and choose a financing methodology that will maximize my return?” ROIC is the answer! Below you will find a comparison on ROIC using your own cash verses financing. Unless you have unlimited cash reserves, ROIC is a necessary tool for any investor to determine how to maximize the available investment money.

For our example, the property in question is valued at $100,000 after completion, and we are calculating a six month loan term. The purchase price is $40,000 and the cost of improvements is $25,000. As of now, you will require $65,000 of your own cash to fully fund the project. Let us assume you sell the property for $100,000. There are charges, fees and soft costs involved in most transactions. For simplicity, I am going to use the same charges for both examples, a $6000 realtor fee, a $1500 title fee and $2000 for closing costs.

Your Cash: $65,000

Fees: $9500

$74,500

With a selling cost of $100,000, you have netted $25,500. With your invested capital at $74,500 we can calculate your ROIC. With a net profit of $25,500 and an invested capital of $74,500, your ROIC would be 34.2%

Sale Amount $100,000

Interest $3,539

Realtor Fee $6,000

Loan Repayment $74,500

$15,961

$25,500 /$74,500 = (.342) x 100 = 34.2% ROIC.

Now use the same figures, but with ReCasa Financial Groups program that utilizes the powerful benefit of leverage. All charges and costs are rolled up into the loan amount. Assuming you draw out fully on the $74,500 you would pay interests of approximately $3539 for that six month loan term.

Of the purchase price of $100,000, $74,500 went to loan repayment, $3539 in interest, and $6000 in realtor fees. That leaves you with a $15,961 profit. Your ROIC would be 451%.

$15,961/$3,538.75 = (4.51) x 100 = 451% ROIC.

With the example above, you can see that with your own cash, you are getting a ROIC of 34.2%. However, by simply using the power of leverage, you get a 451% ROIC. That is more than 13 times the ROIC!

Many investors focus primarily on profit. Successful investors are confident in their ability to generate a profit on a real estate investment, and have learned that in order to build substantial wealth; the ROIC calculation is the best tool!

November Marks Nine-Month High for U.S. Home Repossessions

Tue, 15 Jan 2013 13:00:00 GMT

November was a busy month for real estate statistics with many peaks and valleys. November topped the nine-month high for U.S. home repossessions , while foreclosure numbers started to decline to the lowest point seen in six years.

According to RealtyTrac Inc., in November 2012,

With a decrease in foreclosure starts and an increase of lenders regaining their properties, banks are starting to complete more foreclosures on homes with unpaid mortgages over a year or two. However, banks and mortgage providers prefer short sales as an alternative.

Currently there is almost 1 million homes in the U.S. that are in some point of the foreclosure process, and there are several factors that are known to delay the process. A few years ago foreclosures were more severe. Today, federal and state lawmakers are putting forth efforts to delay the foreclosure process or make finance alterations a more likely choice for homeowners.

Some homeowners have avoided foreclosure due to the improving real estate market and growing home prices in 2012.

The top ten states for the highest foreclosure rates include Florida, Nevada, Illinois, California, South Carolina, Ohio, Arizona, Georgia, Michigan and Indiana.

The post November Marks Nine-Month High for U.S. Home Repossessions first appeared on ReCasa Financial Group .

Hard Money

Tue, 08 Jan 2013 10:48:00 GMT

Hard money can be a great solution for real estate investors that cannot qualify for cheaper loan options, but are confident that they have found a great project that will yield a good profit despite the higher cost of the hard money loan.

It is imperative that the investor truly understands the “Terms and Conditions” of the loan. It is highly important to know if interest is calculated on the outstanding loan balance or commitment amount, what type of fees will you be charged if loan is not paid off at end of initial maturity, what is reported on your credit report, what inspection, release, application and other fees are there associated with the loan, and what happens if you cannot get loan paid off in a year or more.

We always advise clients to ask many questions to know what will happen if the project goes as expected and the loan is paid off in agreed upon time frame. However, it is even more important to understand what happens if there are delays or bumps in the road.

Read this article to learn about hard money lenders versus hard money partners.

Hard Money Lenders vs. Hard Money Partners

The post Hard Money first appeared on ReCasa Financial Group .

Getting a Mortgage When You Are Self Employed

Tue, 18 Dec 2012 09:37:00 GMT

Getting a mortgage when you are self employed brings extra challenges to the borrower . The amount of documentation and paperwork requested may seem excessive. All the paperwork is intended to verify that you can operate a business, cover expenses, and still make an acceptable enough profit to pay personal debts. When you are self employed, you get paid last and everyone else gets paid first.

The first and best practice self employed individuals can implement is not to co-mingle funds or debts . Business credit cards often appear on personal credit reports, which may be unavoidable. To help avoid this, make certain that the card is used only for business purposes and only paid by the business. This simplifies things for IRS and mortgage reasons, and thus simplifies the world. Also, with proof of 12 payments from the business, personal debt on the credit report is not considered in the debt ratio as the business is actually the one paying.

Second, keep good records . You will be required to verify the last two years income plus a year to date income report. Invest in an accounting program and this sort of financial report will be very easy to do. The accounting programs today follow a checkbook lay out. If you can work a checkbook, you can learn to work a business accounting program. Be ready for lots of questions and verifications as to whose debt is whose, the borrower or the business.

If there are onetime expenses, whether an unanticipated cost or large capital investment, be sure to break these out from general expenses on your taxes. It does not change the tax liability at all, but it clearly shows to an underwriter that it was an isolated expense/investment. Since it is not an operating cost, it is not held against the income of the business. Repeat costs, operating expenses, and recurring capital improvements are what matters when determining the income generated from the business .

Some expenses are paper costs only, such as depreciation, business use of home, amortization, and depletion. The self employed borrower should maximize these expenses when filing tax returns for the maximum extent possible .

Be ready to prove and document when you enter the process. With some patience and persistence, credit worthy self employed borrowers, no matter how complicated their situation, do finally close. For those self employed, the only documentation used to prove income today are federal tax returns . If you did not claim, you did not make it.

What other tips do you have for getting a mortgage when you are self employed?

The post Getting a Mortgage When You Are Self Employed first appeared on ReCasa Financial Group .

I Paid Cash, How Do I Get My Money Back?

Tue, 04 Dec 2012 10:48:00 GMT

Other investors pay cash for housing if the home requires renovation before it can be occupied. FHA will not do investor rehab loans; Fannie Mae’s HomePath is cumbersome for investors to use. Many real estate investors are not aware that investment rehab lenders, like ReCasa Financial Group , still exist and allow the buyer to acquire homes that need work, with a mortgage so that when rented and ready for permanent financing, the loan is NOT cash out, but a rate/term refinance.

Wealthy House Hunters Are Using Delayed Financing to Beat The Competition

The post I Paid Cash, How Do I Get My Money Back? first appeared on ReCasa Financial Group .

Help! I Paid Cash! How Do I Get My Money Back?

Tue, 27 Nov 2012 11:37:00 GMT

The post Help! I Paid Cash! How Do I Get My Money Back? first appeared on ReCasa Financial Group .

Issues Impacting Real Estate Industry

Tue, 20 Nov 2012 10:13:00 GMT

There are many factors that are out of a real estate investors control that can

impact the values, demand and ultimately prices for properties and rents.

Successful real estate investors focus on what they can control.

Targeting stable neighborhoods and working harder to find properties at a price that they can make money and build wealth.

Read the article below and let us know which issue is having the most impact on you.

Issues Impacting Real Estate Industry

The post Issues Impacting Real Estate Industry first appeared on ReCasa Financial Group .

Do Not Cost Yourself Money

Tue, 06 Nov 2012 10:43:00 GMT

Many investors try to avoid paying service providers for many of the repairs required in rehab or rental properties. Ultimately, this can end up costing them more money in the long run. Electricians, plumbers and HVAC technicians are examples of trade people that have significant training, and in many instances, certifications or licenses. It is worth spending the extra money for their expertise.

The attached article gives good advice on what should be done by a specialist, and what can be done by the investor. What do you think?

Renovations you should — and shouldn’t — do yourself

The post Do Not Cost Yourself Money first appeared on ReCasa Financial Group .

ReCasa Financial Group’s Deal of the Quarter Winner!

Mon, 05 Nov 2012 13:37:00 GMT

The post ReCasa Financial Group’s Deal of the Quarter Winner! first appeared on ReCasa Financial Group .

Real Estate Investor Learns Lessons Early

Tue, 23 Oct 2012 09:33:00 GMT

You make your money when you buy the property!

To insure that you make money when flipping a property you must be diligent in searching for the right property that has the appropriate financial metrics that show you can make money. This can be time consuming and frustrating! You may experience many property visits and offers before you get one at a price that will make it successful for you. A relationship with a realtor that specializes in investor properties is priceless.

Additionally, you must be hands on with rehab projects . This does not mean you must do the work, but it is imperative that you are at the property daily, or at least several times a week to make sure work is being completed in a timely manner and the quality of work meets your standard. Delays in work cost you money! Shoddy work costs you money!

NO ONE CARES ABOUT YOUR MONEY LIKE YOU DO!

Real estate investor learns lessons early on flipping properties successfully

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Always Pay Contractors When the Job is Finished

Tue, 09 Oct 2012 11:06:00 GMT

The post Always Pay Contractors When the Job is Finished first appeared on ReCasa Financial Group .

What is Your Secret to Getting Your Property to Sell?

Tue, 25 Sep 2012 09:39:00 GMT

As an investor, what is the most outrageous thing you have done to help your property sell?

Read this article to see what these people did, then tell us what you have done.

Drought-Stricken Lawns Get a Makeover With Green Paint

The post What is Your Secret to Getting Your Property to Sell? first appeared on ReCasa Financial Group .

Fannie Mae Purchase Contracts – Deed Restrictions

Tue, 11 Sep 2012 10:55:00 GMT

The purchase contract that Fannie Mae requires buyers to use when purchasing their properties contains a clause in which the buyer agrees to receive a deed containing deed restrictions . The deed restrictions can effectively prevent how the investor is able to finance his or her rehabs . These restrictions prevent buyers from selling the property for greater than 120% of the original purchase price for a period of 3 months from the date of their purchase. Furthermore, it prevents the buyer from mortgaging the subject property in the principal amount of greater than 120% of the purchase price for a period of 3 months from the date of their purchase.

So, if you intend to complete the rehab quickly and re-sell the subject property, then this deed restriction would not allow a sale for more than 20% above what you paid for it within the first 3 months. If you intend to get a rehab loan for 20% more than the purchase price of the property, the title cannot be fully insured, and the rehab lender will not fund the loan amount necessary to complete the project.

However, many real estate agents are unaware that you can request this clause to be amended or removed. The seller may not accept the changes, and they are solely allowed to make this decision. Yet we have seen this done successfully in most circumstances and Fannie Mae seems to be more accommodating than perhaps the agents are aware. It requires patience, strong negotiation skills, and persistence, but if the project is a good one, it is well worth the effort. As they say, the answer is no, unless you ask!

Have you experienced these restrictions before? If so, how did you handle them?

The post Fannie Mae Purchase Contracts – Deed Restrictions first appeared on ReCasa Financial Group .

To Entity or Not to Entity

Tue, 28 Aug 2012 10:22:00 GMT

While the decision to establish an entity such as a corporation, trust or the most common for real estate, a limited liability company, in which to make real estate investments, may seem like a prudent decision to an investor. It is important for investors to understand the ramifications of such a move in the current market environment . As with many decisions in life, awareness of potential unintended consequences up front can help minimize headaches in the future.

Certainly, the appeal of the anonymity and liability protection afforded by making real estate investments in entities are real and do not need to be reviewed here. Many real estate investing gurus have profited from selling video tapes, compact discs, and seminars espousing these very benefits. Those advocates rarely take the perspective of a lender or other skeptics, and point out the potential downfalls of such a move. They include:

All hope is not lost, since certain goals can be achieved through alternative means. For example, to the extent owning real estate in entities helps shield individuals from potential liability, such as the mailman slipping and falling, protection against this can be obtained through proper landlord policies and an umbrella insurance policy.

In short, be sure to think through all of the potential ramifications of whether to make your real estate investments in the name of an entity or as an individual. Notwithstanding what the gurus say (and sell) in their tapes and seminars, always remember The Golden Rule. And if the folks with the “gold” who are making you a loan to buy properties take steps to undermine the effect of your entity, then the use of it may turn out to be more hassle than it’s worth.

The post To Entity or Not to Entity first appeared on ReCasa Financial Group .

Navigating the “New” Real Estate Environment

Tue, 14 Aug 2012 11:16:00 GMT

Best of Times…. Opportunities

Worst of Times…. Challenges

Evolution

Rehab investors must rethink their models and strategies to adapt to the new real estate realities. Several items to consider include, but are not limited to:

Darwin said it best with this quote, “It is not the strongest of the species that survive, nor the most intelligent, but the one most adaptable to change.”

I am sure there are other items to consider in this new frontier. Basically, all of us need to evolve in order to be successful in this new environment. What would you add?

The post Navigating the “New” Real Estate Environment first appeared on ReCasa Financial Group .

Real Estate Investing “Get Rich Quick” Schemes (Series of Seminars in Cleveland, Akron and Youngstown)

Tue, 07 Aug 2012 10:02:00 GMT

After completing thousands of rehab loans with our clients there are several lessons we have learned.

Real Estate investors do not “get rich quick.” Successful investors build wealth over time.

Investors do not need to spend large sums of money to learn about the real estate investment industry. Networking, asking many questions, and learning from many realtors, contractors and lenders like ReCasa is free and will get you the education you need to successfully complete the first several projects. The best way to learn is by doing!

Be wary of “Wholesale” real estate investment offers especially if you are the buyer of a property from a “Wholesaler.” We have statistical evidence that show when a wholesaler is involved in a transaction over 86% of the time there is an issue for our clients. Read this article to learn about the potential pitfalls of pursuing a “Wholesale Sales” strategy.

A flurry of alerts about traveling house-flipping seminars: Plain Dealing

The post Real Estate Investing “Get Rich Quick” Schemes (Series of Seminars in Cleveland, Akron and Youngstown) first appeared on ReCasa Financial Group .

ReCasa Financial Group’s Deal of the Quarter Winner!

Tue, 07 Aug 2012 09:45:00 GMT

The post ReCasa Financial Group's Deal of the Quarter Winner! first appeared on ReCasa Financial Group .

Once in a Lifetime Buying Opportunity for Real Estate Investors!

Tue, 31 Jul 2012 09:32:00 GMT

We have been saying for some time now that the combination of low property prices, historically low interest rates, and high rental demand has created a once in a lifetime buying opportunity for real estate investors!

That window of opportunity may be starting to close!

Housing Passes a Milestone

The post Once in a Lifetime Buying Opportunity for Real Estate Investors! first appeared on ReCasa Financial Group .

Important Net Investment Income Tax Changes Coming

Thu, 19 Jul 2012 11:41:00 GMT

Important Net Investment Income Tax Changes Coming January 1, 2013

Due to Federal Health Care Reform Bill

“The 3.8% tax is imposed only on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return).” Read more about it here .

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“Top 10 Mistakes that Make Deals Go Bad” Series – Part 5

Tue, 17 Jul 2012 09:18:00 GMT

# 2 Do a Deal to Keep a Contractor Busy

Our experience over the past decade of lending money to rehab investors has shown that doing a project to keep a contract busy is one of the least profitable ways to invest in real estate . This reasoning almost always backfires on the investor, both on the current project and on future projects. Good construction crews are hard to find; however keeping them busy does not make them better. The investor runs the risk of overpaying and creating idle, unmotivated workers by haphazardly doing a project to keep contractors busy, thus reducing profits. Contractors, like all people, need the proper incentives to produce good outcomes. Projects started to keep busy have vague timetables and less specific objectives, which often do not work out in the end. Making your contractor “fat” will provide the opposite reaction you are looking for, and might create a bad habit that becomes harder to feed.

Instead of making busy work for your contractors, incent them to do better than expected quality work in less time. Then maybe give them a little extra compensation for a job well done. They will thank you and come back anytime you have a worthy project ready to rehab .

#1 Fall in Love with the Place

The number one error real estate investors make is becoming emotionally involved, they forget it is a business . This is a business. Run it like one. This means unpleasant decisions must be made and implemented from time to time. You might not like evicting a tenant, but the right business decision calls for it. Yes, your tenants are humans with real feelings, but they are not your family. Family gives family a place to stay in a bind, a real estate investors rents for income. Do not adopt your tenants.

Avoid falling in love, not in life, but in real estate . This is a business. You cannot fall in love with a property. When you are in love you are irrational and will do any and all manners of things to get your heart’s desire. The second you hear your inner voice say you HAVE to have this property, you should go back and re-examine the transaction very closely to make sure logic is in agreement with emotions.

A business requires regular attention, and the right business attitude. Pay attention, do the work, keep it professional, and it will stay profitable.

The post “Top 10 Mistakes that Make Deals Go Bad” Series – Part 5 first appeared on ReCasa Financial Group .

“Top 10 Mistakes that Make Deals Go Bad” Series – Part 4

Tue, 10 Jul 2012 10:16:00 GMT

#4 Over Improving for the Neighborhood

An investor’s ability to recoup the costs of expenses of a home improvement can widely vary and depend on many important factors. If you cannot recover the costs of improvements then you have over-improved the house. The first factor is the future use of the property. Is the property an upscale home in an executive style community with the intent to re-sell to a retail buyer? Then there is less risk in over-improving. If the property is intended for rental use then long lasting materials and less expensive finishes may be more in order.

The type of improvement also has a bearing on the ability to recover costs. It is well known that kitchen and bath upgrades yield good returns when done well. Appliances, countertops, cabinets and flooring can widely vary in quality and price, and generally the investor can expect an equivalent return to the investment made. Exterior repairs such as windows, siding or a new roof can also yield good returns, especially when their current state of being are a detraction from the appearance of the house. The return here might not be quite a strong as interiors since these items are necessary and a certain quality is generally assumed. Again, rentals need replacement when functionally obsolete to prevent damages to the property.

Adding square footage is also good but be careful that the addition is not atypical for housing in the area. A five bedroom house may not get the same bang per extra bedroom in a generally three bedroom community as the fourth does. Rooms carved out of spaces which may not improve the overall layout of the interior might not be beneficial either. Remember, appraising property is difficult enough in today’s real estate environment. If an appraiser cannot compare the improvement to something else that has resold they will generally underestimate its value.

Finally, and most obviously, while the need to make an improvement may be the driving factor in make a home repair ; the quality of the improvements weighs heavily on the ability to recoup the costs. Poor craftsmanship, cutting corners, improper installation, and sloppy finished can have the opposite effect of the intended repair, and could end up costing you even more to correct, reverse, replace or remove after construction.

Rule #3 Forget this is a Business

One of the surest paths to failure is to forget that your real estate portfolio is a business. A sympathy attack for a tenant with a hard luck story costs you money just as if you owned a gas station and you sold your gas for $1.00 less per gallon than it cost you to a customer because he had a good story. You will be out of business quickly both ways.

Real estate becomes emotional. A commercial tenant’s dreams and livelihood are the business. A residential tenant’s home is in play. Losing either is traumatic, but that is not the landlord’s business. A landlord is not family and should not take on the costs of providing subsidized housing to some non-family member.

The landlord’s business is providing a useful property to the tenant at an agreed rate for the usage, or rent. A land lord is not in the social work business, homeless relief, or other charitable enterprise. A landlord needs to remember that this is a business first and foremost. Lose sight of the purpose of a business, to make an acceptable profit for its owners, and you lose your profit margins. Always remember this is a business and run it as such.

The post “Top 10 Mistakes that Make Deals Go Bad” Series – Part 4 first appeared on ReCasa Financial Group .

“Top 10 Mistakes that Make Deals Go Bad” Series – Part 3

Tue, 03 Jul 2012 12:38:00 GMT

#6 Rehabbing Grandfathered Usage Properties

A grandfathered property tends to be a nonconforming property for which the original zoning or ordinance was not in compliance, thus the use of the property has remained the same since subsequent zoning changes were placed on the books. Some basic categories of grandfathered properties include nonconforming use of land, nonconforming structures, nonconforming use of structures, and nonconforming characteristics of structures. There is also a parallel line of thought dealing with historical properties which comes to bear in certain municipalities with older building’s and more extensive building’s records or housing authorities.

There are several risks for investors of grandfathered or historical properties:

An example comes to mind of an old house bought by an investor using a turnkey plan in a major Midwest city. This investor had used the turnkey program on several other properties in close proximity to the subject property of this tale. In this case, the property was grandfathered to codes requiring the original windows remain with the existing structure. The investor had authorized the order of new windows to be replaced throughout the entire house. Once some new windows were installed, the housing authority shut down the project because of the violation. It was explained that only the glass inside the existing window panes could be replaced, thus the investor had unused windows which they could not use, plus the expense of replacing glass into window panes, adding tremendous expense to the project.

Invest in grandfathered property carefully (and do your homework too)!

#5 Fight Your Own Formula for Success

Successful real estate investors develop a system, or a formula, they apply when making the most crucial decision in any real estate transactions , such as how much to pay. The formula must be specific to the area and the investor’s expertise.

Re-sell and rehabilitation purchases are the ultimate gate keepers to success. A rehabilitation project investor must know the cost of projects before starting and have a very strong knowledge of the re-sell market for that property.

When buying for cash flow, you ARE purchasing the cash flow so that is the most important variable in the proper price to pay. The more desirable the area, the more rent it will bring. For instance in a less than great area, a 4 unit that generates $2,000 per month, total rents might be worth $2,000 x 36 = $72,000. That exact same 4 unit in a better area generates $2,000 in rents but due to jobs, schools, location, etc… it warrants a 60 month multiplier, or $2,000 x 60 = $120,000.

Develop your formula, apply it, and do NOT fight it. Walk away when the formula tells you to. Remember, no deal is better than a bad deal.

The post “Top 10 Mistakes that Make Deals Go Bad” Series – Part 3 first appeared on ReCasa Financial Group .

“Top 10 Mistakes that Make Deals Go Bad” Series – Part 2

Tue, 26 Jun 2012 10:13:00 GMT

#8 Having a Greed Attack

Webster’s Dictionary defines greed as “A selfish and excessive desire for more of something (as money) than is needed.” The two words that stand out seem to be more money . It is interesting that money is the example Webster’s chose to use. To a rehabber , more money sounds like a pricing decision for the finished product (the house) whether it is for sale or for rent. That decision could come as early as the acquisition stage when you are trying to determine a comparable price for the finished product. Eventually, if greed bears its ugly head, it will come to roost when you list the finished house for sale or for rent.

What’s wrong with more money? A very popular credit card company has made that very principal the topic of a massive advertising campaign involving one of America’s funniest comics and an adorable infant girl. But that’s all about rewards points for credit cards users; we are focusing on the affect on rehab investors .

Greed can be seen as a good thing in a world in which time stands still; otherwise, greed should be seen as time’s evil nemesis. If you are holding out for a price above reasonable, you stand to wait more time to get it. Basic supply and demand economics are in play here. However, economics also teaches that there are many costs to time; two of which should be illustrated to show why greed, or certainly too much of one thing, can actually work against for profit endeavors like rehabbing and investing .

Time has carrying costs – ask yourself how much does it cost to prolong the continued activity? Is your rehab project financed? Then you are paying interest to your lender , property taxes to the government, and insurance premiums to your agent, all of which costs money. Completed projects which remain vacant also cost money to maintain including the costs of utilities for basic services. Hopefully there are not too many other fixed expenses (as salaries!) resulting from carrying an inventory of unsold houses or vacant rentals.

Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative that is not chosen. In other words, it is the sacrifice related to the second best choice available. Opportunity costs deals with concepts about scarcity and the most productive use of resources. Are your contractors at this job when they could be at another? What is the listing agent or property manager doing? And if you answer “That’s me” to any of the above, what else could you be doing with your time? If your time is not being spent on the highly priced project you have got, it could be finding that next great deal. You can’t be in two places at once.

# 7 Repairing Fire Damage without Permits

Fire damage is a specialty. Good money can be made in fire damaged homes, but NOT being trained can and will lead to unexpected surprises, delays and losses.

The first thing to be aware of when considering a fire damaged home as an investment is that the local fire, police, code enforcement, and zoning are all aware of the fire. Fires draw attention. Because the authorities are aware of the condition of the home, past zoning issues will need to be repaired as well as the recent fire damage. This can and will add thousands, or worse, to a project if old issues are required to be fixed before getting permission for occupancy. Permits will be required and inspections are a must, adding cost and time to the project.

Fire can cause damage not visible to the eye. Fire can get between walls and damage the framing with minimal evidence from either side of the wall. Without looking behind the drywall or plaster, there is no way to know.

Fire is hot. Water is cold. When the two meet regularly, the pipes will burst from the pressure of the steam build up and leak, driving up the water bill. If this occurs outside the foundation, there is no easy way to be sure short of a very large water bill, a very wet spot or a professional plumber.

Remember that there may be more to the repairs than may meet the eye when considering a fire damaged property. Zoning and code attention will apply so know what you are getting into and how to get out of it when entering into a fire damage real estate investment transaction.

The post “Top 10 Mistakes that Make Deals Go Bad” Series – Part 2 first appeared on ReCasa Financial Group .

“Top 10 Mistakes that Make Deals Go Bad” Series – Part 1

Tue, 19 Jun 2012 13:06:00 GMT

#10 Relying Solely on Seller’s Research

What a way to kick off our Top Ten Ways to Make a Deal Go Bad (for you, the rehabber, that is)!

In any arms-length, investment real estate transaction, it should be assumed the buyer and seller of the real property are at complete and opposite odds with one another.

Buyers and seller opinion of condition is also at diametrically opposing views. The seller will have the house in best possible condition, possibly covering up defects and hiding blemishes. The rehab investor will want to peel back all layers to expose any flaws with the property and completely understand the scope of the work that needs to be done.

Remember the buyers golden rule: us versus them. Act professionally but be diligent in your buying process and assume the seller’s motivation is not your own.

#9 Commingle Personal and Business Money and Debt

When running a business the line between business and personal regularly gets fuzzy. Underwriters HATE fuzzy. If there is any vagueness to the situation they will always assume the worst. This is most pronounced when it comes to debts. Business debt, even if on your personal credit report, needs to be only business debt and only paid from a business checking account. If this is NOT done then the business debt will be held against the useable income for loan approval. The best plan of action is to have accounts 100% dedicated to the business, only using them for business reasons, and have other accounts that are 100% personal. Good record keeping and proof of what is personal and what is business will increase your income useable for mortgage qualification, lower your debt ratio and make your CPA happy at the end of the year.

Co-mingling personal and business assets needs to be avoided also. Keep business accounts and personal accounts separate. Deposit all business income into the business account and then pay yourself with a check drawn on the business account. This accounting method places the income where it was derived and eliminates any fuzziness in debts, assets and income when your loan file gets reviewed for approval.

The post "Top 10 Mistakes that Make Deals Go Bad" Series - Part 1 first appeared on ReCasa Financial Group .

Top 10 Mistakes that Make Deals Go Bad

Tue, 12 Jun 2012 11:42:00 GMT

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Easy Money!

Tue, 29 May 2012 09:26:00 GMT

One of the mistakes that many rehab investors make is using consumer debt for business purposes because it is “Easy.”

On the surface, the lowest hanging fruit for a rehab investor is the credit card or Home Equity Line of Credit (“HELOC”). Often these consumer credit facilities are used for repairs and even purchases of real estate. Why go through the hassle of gathering information and approaching lenders for a loan that they will charge points, fees and potentially higher interest on, when you already have or can easily obtain a credit card or HELOC? The short answer is that using consumer financing for business purposes does not work long term. In fact , it can be lethal for you as a business operator and a consumer.

A credit score is determined using five main methods of analysis, payment history, amount you owe, length of credit history, new credit, and type of credit. Amount you owe or utilization is impacted the most by using consumer debt for business purposes.

Amount You Owe

The second largest impact on your credit score is the amount you owe in relation to the credit limit. It is also known as the utilization rate. If you have borrowed and are near or at your credit limit, this damages your score. In fact, any balance above 40% of the limit has a negative impact on the score. This is important for rehabbers because financing rehab projects takes a great deal of capital, which will most likely exceed that ratio. High unemployment and the decrease of home values have prompted many lenders and banks to cut credit limits in order to minimize risk, resulting in an immediate increase of utilization rates.

Why Does It Matter?

Utilization rate accounts for 30% of your credit score. According to FICO Score Simulator, maxing out your credit cards could drop your credit rating from 700 down to 590 or worse, assuming that you still pay your bills on time and all other factors remain positive. According to myFico , “Carrying extremely high balances on all of your revolving accounts (i.e. credit cards, equity, and personal lines of credit) makes you look ‘maxed out’ on your available credit. It is often considered a high-risk trait by lenders and the FICO score.” In short, lenders (and credit scorers) don’t like high balances.

Make sure you understand how a loan or line of credit is being reported to the credit agencies. Many “Business” lines of credits and loans actually use the credit score of the business entity owner(s) and reports to the agencies. This means it has the same impact as a consumer loan.

So how do credit-reporting agencies distinguish between a shopping spree and a rehab project ?

Well, they don’t. It is hard to blame them, however. This is because they report on 190 million consumers. Extremely few of these 190 million people are rehabbers, so it is impossible for credit bureaus to track the difference between consuming and investing on credit cards. When you purchase and pay for improvements on a property with your credit card, the agency cannot distinguish between that luxurious vacations, extravagant jewelry, expensive clothes, and pricey dinners.

Why are these credit scores important? It can make the difference between being able to obtain a loan and getting denied. Also, even if your score only drops several points, it can result in higher interest rates.

The post Easy Money! first appeared on ReCasa Financial Group .

Pennsylvania Real Estate – Title Insurance Price Change

Thu, 17 May 2012 10:12:00 GMT

Attention Pennsylvania Real Estate Investors , The Pennsylvania Department of Insurance has issued a change in the closing cost rates that will take effect on July 1, 2012. The department has agreed to a new price structure for title insurance that will allow for easier calculations for title insurance and will increase rates for title insurance. Note that if you are to close at the end of June but are delayed in to the month of July, you will be subjected to the higher rates.

For more information, read Jeff Geoghan’s “ Watch out for changing title insurance rates ” an article from Central Penn Business Journal .

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Your Most Important Asset

Tue, 15 May 2012 10:52:00 GMT

Most real estate investors are quick to answer the question, “What is your most important asset?” with the response “Real estate holdings.” Others will mention cash reserves. Working for an organization that caters to only rehab investors , and having completed thousands of deals, we can tell investors that the answer is their credit score!

Mortgage lenders , banks, utility companies, prospective employers, insurance companies, trade creditors, and more use credit scores. A credit score can have a lasting impact on your ability to grow your real estate business in addition to other aspects of your personal and business endeavors. Your credit score is your most valuable asset. It must be protected and nurtured or it will cost you money and opportunities.

Access to Loans

A credit score can make the difference between being able to obtain a loan and getting denied. Even if your score only drops several points, it can result in higher interest rates. As far as lenders are concerned, lower credit scores equate with higher chances of delinquency, which translates into a higher risk premium on your loans or flat denial of your application. Delinquency is defined as any default, bankruptcy, non-payment or 30-days past due payment.

According to myFICO , a website dedicated to FICO Scores, the following are the delinquency rates for different categories of FICO Scores. A FICO Score is used to establish mortgage rates, car loans, and credit card terms. A FICO Score is devised based on credit history, and helps lenders appraise credit risk.

Assume for a moment that you are the lender and it is your money being lent.

Armed with the “Delinquency Rate” chart, to who would you lend? The answer is obviously that person with the higher credit score meaning lower probability of delinquency. Who would you give the “best” rate to and who would get the “highest” rate?

Insurance Premiums

Yes, insurance companies use credit scores to determine if they will even provide insurance to a client, the types of coverages that they will make available, and the cost. Insurance companies have thousands of historical data points and statistical evidence that shows a correlation with “Bad or Lower” credit scores and the probability that an insurance claim will be filed. The insurance companies take the logical approach that if the probability of a claim being filed is high, then coverage will be denied or reduced and premiums will be raised. This can occur even after you have an established relationship with a provider if your score drops.

Trade Creditors

Suppliers of building products and many utility companies use the credit score as the primary tool in evaluating whether they will extend credit and how much. The alternative is to require cash payments or deposits for those products and services.

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“You make your money when you buy the property!”

Tue, 01 May 2012 10:15:00 GMT

It took me several years to truly understand what “You make your money when you buy the property” meant. After seeing my first real estate investor client successfully complete over 100 projects and make money on all of them, and hearing a similar mantra from other top notch investors, I began to understand.

There are basically five “variables” in the rehab real estate profit equation.

And it all equals…

The successful investors start with a target Profit figure and work backwards. A Profit target can be a minimum dollar amount or a percentage. In either case, they make sure there is wiggle room for unexpected negative changes in any of the other expense variables. The percentage or dollar amount target can be influenced by factors like the investor’s experience, appetite for risk, neighborhood, and size of project or amount of improvements required. It may take longer to find the right project that meets or exceeds your target, but that is much better than the alternative of cutting it too close and making little or no money or possibly taking a loss.

Since you do not know what the Sales Price will exactly be, the best way to estimate is to determine the market value of similar homes. Sales Comparables or a “Subject To Appraisal” can provide this data.

Title Companies, Realtors, Insurance Agents, Lenders, and Auditor Sites can provide the information you need to determine a Soft Costs total. Remember, that several of these Soft Cost items are impacted by the passing of time. Taxes, Insurance and interest expense grow the longer the property is in your hands. Use Days On Market (DOM) data to help you calculate those figures and it is not a bad idea to add a couple months to the average.

Improvement Costs can be obtained by getting 2 – 3 estimates for all the improvements required. Additionally, walking the project with different contractors typically provides great ideas and different perspectives on what needs to be done and how. If in doubt, spend the money for a professional inspector.

We now have all of the required variables to calculate our maximum Purchase Price .

Sales Price – Profit Target – Soft Costs – Improvements = Maximum Purchase Price .

Now the negotiations begin. The negative aspect of this approach is that it takes work, time and in most cases many offers. However, the positive is that you have dramatically increased your probability of a profitable project by “Making your money when you buy it!”

The post “You make your money when you buy the property!” first appeared on ReCasa Financial Group .