by Ashley Hammons | Apr 3, 2018 | Uncategorized
The Difference between a Short Sale and a Foreclosure
Fortunately we are starting to see less distressed properties for sale in most markets across the board. Distressed properties are defined as homes whose owners cannot maintain them. Typically these properties suffer from neglect and are in poor condition.
Distressed homes statistics are different in every market. Our local market, Dallas, Fort Worth, has seen a slight decrease in the number of these homes available on the market. Often buyers are confused about the common terms used; short sale, foreclosure, distressed are all terms found in listings and can be confusing.
First of all, the term “distressed” is a catchall term for any property that is not being sold in a more traditional manner. It certainly includes both short sales and foreclosures, but can also be used to describe a severely damage property which might not be able to obtain conventional financing due to lack of livability.
Short Sale
A short sale is a home where the seller owes more than the home is worth and is asking their mortgage holder to accept less than they owe in the sale. The purchase price must have their lender approval.
Foreclosure
A foreclosure is a home which was lost by the previous owner and is now being offered for sale by the bank that held the old mortgage note.
by Ashley Hammons | Apr 2, 2018 | Uncategorized
One of the most common real estate investment transactions is the 1031 Exchange. Simply
put, a 1031 Exchange (also called a “like-kind” exchange) is the swap of one investment asset
for another which defers capital gains taxes on profits.
A like-kind asset refers to selling one class of investment for a similar type of asset. For
example, an investor currently holds several multi-family properties, such as duplexes, and
wishes to sell them all in order to purchase a larger multi-family property, such as an
apartment complex. This would qualify as a like-kind exchange.
There are specific IRS rules which must be carefully adhered to in order to qualify for the
deferred capital gains tax. The sale must take place through an intermediary. Title companies
are one such option and when coupled with the use of a real estate agent, the easiest. The
new asset must also be identified within 45 days of the sale of the current asset and the sale
must conclude within 180 days. Finally, the asset must be held for over 1 year before it is
eligible for use in a 1031 exchange.
Serious investors use the 1031 exchange to buy and sell assets as new opportunities present
themselves, while shielding themselves from immediate capital gains liability.
by Ashley Hammons | Mar 30, 2018 | Uncategorized
Greenville home for sale
Inventory Is Low?
You’ve heard the rumors; it’s a “Seller’s Market.” Well if you are actively
searching for a new home, you know that it’s true. The low inventory of homes
for sale has made things difficult for buyers. There just aren’t many homes for
sale out there and when a nice listing does come to market, it’s met with multiple
offers…..often with offer prices over asking.
If you’re a buyer in this market, you might feel overwhelmed but remember that
with a solid strategy, you can still find your dream home, even when inventory is
low.
The highest offer price in the world is worthless if the transaction doesn’t close.
Here are a few tips for buyers looking in a tight market:
• Talk to a lender before you shop so you’re prepared
• Be prepared to pull the trigger
• Write a competitive offer
• Keep contingencies to a minimum
• Write a clean offer; Make it easy for the sellers to just say yes
When inventory is low, it’s each to feel like the best homes are already gone, but
by working with your agent, you can put yourself in the best position to have your
offer accepted.
by Ashley Hammons | Mar 29, 2018 | Uncategorized
It’s never too late to begin investing in real estate…..it’s never too early either. Real estate offers a solid investment opportunity which can provide not only an income stream but long
term value appreciation as well. Regardless of the ups and downs of the market, people will always need housing, so real estate will remain a good way to create wealth.
By understanding some of the basics of real estate investing, you can begin to create your own plan. Here are 5 tips for first time real estate investors.
1. Use Leverage – . Learn about options other than your own savings for these costs.
2. Budget for the Unexpected – Have a fund available to draw on for the unexpected. Even the most carefully planned project can have unexpected costs.
3. Invest for the Long Term – Real estate investing should not be viewed as a “get rich quick” scheme.
4. Don’t Over Extend – After evaluating the risk, be honest about your ability to handle the negative possibilities the opportunity could present.
5. Be Patient – Wait for the right opportunity.
Real estate offers solid investment opportunities. A first time investor can realize profit and
positive cash flow with careful planning and research.
by Ashley Hammons | Mar 27, 2018 | Uncategorized
Why Millionaires Love Real Estate
Serious investors already know the value of a diversified portfolio. In addition to stocks and bonds, real estate should be included in your investment mix. One way to accomplish this is to purchase, hold, rent or flip actual physical property, as part of your investment strategy. Real estate is a solid asset which can provide annual income, asset appreciation and/or quick profit. Millionaires understand the value of real estate and how it can be used to increase wealth and as a hedge against the volatility of other investments, such as stocks and bonds. Real estate holdings can provide immediate and long-term benefits:
• Cash Flow – Rental income is one of the primary reasons investors purchase property.
• Asset Appreciation – Property value appreciation is another advantage of investment
property. While rents pay the mortgage and ownership costs, property values are on the
rise, increasing the asset worth.
• Fast Capital – Buy and flip properties are a great way to quickly add capital to your
portfolio.
Those who understand wealth-building strategies know the value of real estate as a part of a
balanced investment portfolio. Along with short-term opportunities, real estate can offer an
asset with cash flow and appreciation, unlike the volatile stock and bond markets.
