HGTV-like Projects? With Funding?

How Smart is This?

The success of television shows, especially the ones on HGTV that focus on house purchase and renovations give an ambitious audience a sampling of what can be done with a little time, money, and a whole lot of patience.

One of the biggest obstacles that prevents most people from 'jumping in' is the lack of money to buy a piece of real estate and have the money needed to fund the renovation project.

A Practical Solution? 

The federal government offers a loan program that provides funding for the purchase of a house and includes money to repair or renovate it. It features a 30-year amortization, low interest rate that remains fixed for the life of the loan, and it even allows deferred payments for the first 6 months.

Even better: the down payment requirement is only 3.5% of the loan amount.

Scenario:

A large, vacant house (foreclosure?) is available that needs extensive repairs and renovations. Its current value is $110,000 but its projected value after the renovations have been completed is $249,000. The cost of the renovations is estimated to be $80,000 which includes a new kitchen, new appliances, new bathrooms, new plumbing, new wiring, new floors, new HVAC, new windows, new roof, fresh paint, and new landscaping.*

Purchase price: $110,000
Renovation cost: $80,000
Total down payment requirement: $6, 750

Loan amount: $183,250
Estimated payment: $1,350/mo.

Equity (profit) at completion of renovations: $65,750

Would you like to know more about this program? Call me at (804) 305-9553 for a friendly conversation and to explore the possibility of utilizing this unique government mortgage. Use my 30 years of experience as a licensed Realtor to simplify the complicated twists and turns of any real estate transaction. It costs you nothing!

Search the entire Richmond area MLS at: www.Richmond-HomeSearch.com


*This scenario is a realistic description of what can be accomplished under this program. All work is performed by licensed Contractors. Many possibilities similar to this one exist in the Metro Richmond market.

Thinking?

There's always many things to consider when selling a house, a commercial building, or raw land. Market conditions, property conditions, and property value are probably the most crucial issues that need to be addressed. The internet is full of good, useful information but most if it is provided by non-local sources; such as the content that's originated in another state. Example: the market conditions as well as the laws that govern real estate transactions in California are radically different from those in Virginia. How do you get good, relevant, and accurate information in the local area? You consult with an EXPERIENCED agent who is willing to offer suggestions, make recommendations, and who will assist you in getting you pointed in the right direction. Good agents will provide that service free of any charges.

When searching for a competent agent, here are 5 questions that should be asked during the interview process:

1. How long have you been in the business of Real Estate?

2. Is Real Estate your full time job or is it just a part-time interest? (75% of agents have other jobs)

3. How many listings have you sold in the past 5 years?

4. Do you work only with Sellers, or do you also work with Buyers?

5. How extensive is your network of seasoned professionals and how many contacts are in your marketing database?

Experience is simply the most important factor when trying to obtain practical information. A part-time agent who has been recently licensed may be very familiar with the geographical area, but hasn't got a clue on how to how to structure a successful transaction. Additionally, any agent who has another job outside of real estate simply cannot be committed your success. If they are unavailable because of their 'other' employment responsibilities, everyone has to wait until they become available again.

There are some real estate agents who work exclusively with Sellers. These types of agents list houses then intentionally sit back and wait for another agent who works with Buyers to show the house, negotiate with the Buyer, structure the transaction, and do the majority of the work. In other words, any agent can list the house, but precious few who will actually sell it. Wouldn't it make more sense to work with an agent who lists houses as well as works directly with home buyers?

Another huge factor that can make a difference is the support systems of each agent. Being well-connected to competent professionals will dictate the 'smoothness' of a transaction. There are approximately 75 people involved in one simple real estate transaction. Attorneys, Home Inspectors, Appraisers, Loan Officers, Contractors, Processors, Insurers, Surveyors, Warranty Companies, are all just a sampling of the important people whose efforts must be coordinated by the agent. Unfortunately, this where most transactions break-down. This is also where the good agents separate themselves from the others.

Do you need some help with a Real Estate related issue? Let's have a friendly discussion! Call me at (804) 305-9553.

Search the entire Richmond MLS at: http://www.richmond-homesearch.com