OK, so my daughter calls me this morning about 8:30 and says, "Oh yeah, you're invited to our inspection thingy today. It's at 10:30 on the visitor side of the football field. You don't have to come but you're invited"
Aaaaahhhh, kids. Of course I would love to be there!
The "inspection thingy" was the Annual Personnel Inspection and Pass-in-Review for the McEachern High NJROTC program. It was a beautiful day and a great experience to be there. What a truly outstanding group of young people!
The day was made even better when tori recieved a rank advancement (which she knew about but I didn't) and then she was surprised with a second award for having an outstanding uniform!
See all the photos in my Facebook album!
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Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
Visit my website
Call me for all of your Real Estate needs
770-656-9134
Copyright © 2008 By Bob Southard, All Rights Reserved
Follow Bob on Twitter , FaceBook, and LinkedIn
I hope to own a home one day...
Should I do a lease purchase?
I get this question all the time from prospective buyers who are looking for a way to become home owners. They see this as path where at least something they pay every month will go toward owning something. They pay a little bit down and pay a little extra rent each month and in return the seller will give them credit toward ownership or down payment. From a contractual standpoint there are actually a few different ways to do this but for this discussion I am sort of lumping them all together. From the buyers standpoint lease purchase, lease option, rent to own, or any of the other various agreements all represent the same thing.
So, should a prospective tenant/buyer enter in to this type of agreement? If I am advising the buyer then almost always, my answer is NO!
Why not? Well, the main reason is that most of them never end up closing as a full fledged sale. The buyers end paying a bunch of extra money and end up with nothing. Sometimes it's because the buyer ends up not being credit ready, sometimes they don't like the house or neighborhood, or maybe it turns out the house was overpriced and won't appraise for the agreed price.
In the last year or so I have seen another, scarier reason popping up. SELLER DEFAULT. The sellers collect the rent and purchase consideration but default on the mortgage payment attached to the home. The home goes to foreclosure and the buyer loses everything they have put in toward future ownership. In this situation there is very little the buyer/tenant can do. I suppose they could try to sue the seller/landlord but good luck with that. The real answer is that the buyer/tenant loses their money. Unfortunately I am getting more and more of these calls as well. Many of the buyer/tenants have paid out thousands of dollars and now they are losing it all.
Instead of paying in to a "savings account" with a perfect stranger, open a saving account with a local bank. That way you are in control of the money and not your landlord! Rent a home and put the extra money in to your own savings each month. If you want to be a home owner then you need to be responsible and don't leave the responsibility to the seller/landlord.
My general advice is to not intertwine the lease and purchase at all. If you are not ready to buy then just rent and leave any purchase intentions alone. Save your money and work on your credit. When you are really ready to buy you will have a choice of any property in your price range instead of the limited pool of lease purchase homes. You can pick any home you want instead of being tied to the home you rented in the hope of owning.
When should I do a lease purchase? I'm not 100% opposed to the concept, I just think that in almost every situation it is not the right type of arrangement for the buyer. If the amount of rent required is the same either way ( no added rent toward purchase), and if the amount of upfront money is small enough that that you are perfectly willing to lose or walk away from it, then maybe. Remember that your choices of homes will still be limited. Another situation that may be OK is if you have good credit but need to wait a short time to buy. Maybe until your previous home sells or you get a year end bonus.
Another scenario that might be OK is if it is truly an option to buy situation and you have posted little or no extra money. If you have little or no financial risk, and you have a choice to buy or not, and the price is fair, then there would be little reason not to take an option to purchase.
The bottom line ... if you are not ready to own - then rent. Save your money and pay your bills on time. In no time at all you'll have down payment saved up. FHA only requires 3.5% down. If your rent and bills are paid on time for 1-3 years you should have no problem qualifying for FHA and you get your choice of homes. You could be a home owner much sooner than you might think.
That's my opinion, I would love to hear yours!
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Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
Visit my website
Call me for all of your Real Estate needs
770-656-9134
Copyright © 2008 By Bob Southard, All Rights Reserved
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Yes I love my wife .....
We have both been working like crazy and we definitely don't get to see enough o each other. Sometimes we even have to resort to communicating by notes or email :-(
Anyway, the other night she was leaving me a note with a few things to do the next day and added .. write me a love poem. OK, I am absolutely no poet but I thought it was a wonderful idea. Well, it was a wonderful idea until I tried to implement it. It just kept sounding like Dr Suess loves Barbara.
I didn't want to entertain or humor her. I wanted to make a serious statement about how much I really love her.
She mentioned today that if I didn't finish the poem it's OK since I'm not not much of a writer.....
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Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
Visit my website
Call me for all of your Real Estate needs
770-656-9134
Copyright © 2008 By Bob Southard, All Rights Reserved
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Sometimes the best blog answers make the best posts. The question was posted over on the Zillow boards about where an individual should invest $20,000 if they have it to invest.
Here is my answer ...
Carlton,
Any investment should be looked at as a long term investment. That goes for real estate, stocks, or anything else. If you don't have the stomach for the current roller coaster then stay in cash.
Don't invest in anything you don't understand. Some people understand the stock market and I think most people have a decent understanding of residential real estate.
Owning Real estate as an investment is very hands on. There are tenants and maintenance issues to deal with. But you should get a higher return on real estate.
Why?
Real estate is I.D.E.A.L
I- It provides INCOME from the rental. That income can cover all or most of the ongoing monthly cost of ownership. The tenants end up paying for your home
D- DEPRECIATION - In todays market some of the depreciation is real. But really this refers to the many tax advantages of owning rental property
E- EQUITY is built up over time as you make payments.
A- APPRECIATION Over the long term real estate DOES go up in value. Remember that you need to be in any investment for the long term.
L- LEVERAGE - Your $20,000 can buy you $20,000 worth of stock or make a 20% down payment on a $100,000 home. 5 years from now if both have gone up by 10% then you made $2000 on the stock or $10,000 on the $100,000 dollar house.
So for stock to do what a real estate investment does for you
1.You would buy the stock on a 20% margin and finance the rest
2.The stock would pay dividends high enough to cover all or most of the financed payment
3.Your balance would go down each month on the financed amount
4.Uncle Sam would let you write off the interest and other expenses
5.The stock would go up in value over time. Of the five this is the only one that is realistic.
So invest $20,000 in a $100,000 home and deal with tenants, vacancy, and management. If it goes up by 10% in the next 5 years you make $10,000 plus any equity build plus any tax advantages minus any management or vacancy costs.
Invest $20,000 in the stock market and it goes up 10% in the next 5 years and you make 2,000 with no real headaches.
Ultimately that is a personal decision that you need to make yourself. I know which way I would lean!
Call if I can help.
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Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
Visit my website
Call me for all of your Real Estate needs
770-656-9134
Copyright © 2008 By Bob Southard, All Rights Reserved
Country Walk
Chili Cook Off / Super Bowl Party
Powder Springs, Ga. - The Country Walk Super Bowl Party and Chili Cookoff was a great time for all who attended. We had 6 pots of great tasting chili competing for the grand prize plus neighborhood bragging rights. This years winner was something just a little different … Barbara’s award winning “white chili”. Thanks to everybody that attended and participated
After the Chili Cookoff we all migrated in to the clubhouse to watch the big game. Chef Rian MacDonald prepared a great spread of food and snacks and some of our neighborhoods brought some goodies as well. Good food, good commercials and it was even a pretty good football game!
Special thanks to CW residents Johnny Reagan of JJRocks DJ services and to Chef Rian MacDonald and his wife Lauren for all of the help. It was a big that would not have been possible without them.
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Country Walk is a fantastic, active, swim/tennis neighborhood located in the heart of Powder Springs, Ga.
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Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.
Visit my website
Call me for all of your Real Estate needs
770-656-9134
Copyright © 2008 By Bob Southard, All Rights Reserved
Follow Bob on Twitter , FaceBook, and LinkedIn
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Bob & The AgentBobSells Team helps buyers and sellers in all of Cobb, Cherokee, North Fulton, Forsyth, Paulding, and Douglas Counties. www.AgentBobSells.com
About Bob Southard
Bob began his real estate career in 1980. While still in college at Georgia State University, Bob attended a Robert Allen "Nothing Down" seminar. Shortly thereafter he bought his first of several little or no down payment properties, an apartment house in Kennesaw. This was followed by several single family homes and a couple of duplexes and triplexes in NW Atlanta.
In Robert Allen`s New York Times best selling book Creating Wealth, Mr. Allen had this to say about Bob Southard, "......I don`t have any doubts about this young mans future".
Robert Allen,Creating Wealth, Simon and Schuster, 1983
In 2003 Bob passed the Georgia real estate exam with a score of 98 of 100. Since then Bob has helped many families with their home buying and selling needs. He specializes in first time home buyers and sellers in all of Cobb and Paulding county. He is the Team Leader for the AgentBobSells Team and prides himself in "Putting People First".
Bob is a member of the Cobb Association of Realtors, and a lifetime member Marietta Jaycees. He and his wife Barbara are Members of McEachern United Methodist Church. They reside in Powder Springs, Ga with their 3 daughters and 1 son.
Bob Southard has been involved in real estate most of his adult life. His passion is to help families become homeowners whether they are buying their first home or their tenth. He is now Team Leader of the AGENT BOB SELLS TEAM. To learn more about Bob and the AgentBobSells Team click on this link: AgentBobSells
Follow Bob on Twitter , FaceBook, and LinkedIn
Buyers
Whether you're looking for your first home, your dream home or an investment property, I'm committed to providing you with the highest quality buyer service. When making the type of investment that buying a home requires, you deserve to have all the latest market information and the very best advice, both of which I can provide you with. To find out more click on this link: Agent Bob Helps Buyers
Sellers
The decision to sell a home is often dependent on many factors. Whatever your reasons are for selling, my proven effective marketing strategies will ensure that you get the highest possible price for your home. I guarantee to provide you with professional, ethical and confidential service and keep you fully informed every step of the way. To find out more click on this link: Agent Bob Helps Sellers
Testimonials There are many things I can say about the high quality of service I provide to my home seller and home buyer clients, but probably none would be as credible as testimonials from some of my recent clients themselves. So please take a moment to read the following testimonials. I hope they indicate my experience and integrity, as well as make it clear how much I enjoy helping people with their real estate needs. I would be happy to email you additional testimonials if you are interested. *********************************************************** "Ok, here is my real testimony... The process was extremely easy and efficient. Bob offered great advice without being pushy and, I got a great rate!" Janet Huffman, Powder Springs, Ga. "I don't think we could have done it without you. We OWN our own home thanks to you and your hard work. Thanks so very much." Chris and Rhonda Pearman, Douglasville, Ga. "Russ is self employed so we were worried that the mortgage process might be difficult. Bob was great to work with and the entire process was very smooth." Russ and Lori Owens, Dallas, Ga. "The entire process went very smooth, with no last minute surprises." Andrew and Bridget Doss, Acworth, Ga. "Thanks for putting up with us all these months. We love the house ... thank you so much Bob." Earnest and Sonya Davidson, Marietta, Ga. "Thanks, Bob. I'll definitely keep you in mind. I appreciate your over-the-top service on my townhouse sale." Deborah Hill, Sandy Springs "I just wanted to thank you again for helping us find our home. We were unfamiliar with the Dallas area, and if it wasn't for you and the MLS we never would have found our house. You made the whole process easy and relatively stress free. Thank you for your patience and expertise. Thank you for answering our 20 million questions. You are very good at your job." Charlie, Stephanie, and Megan Reddick, Dallas, Ga "Thank you so much for everything you did for us before, during, and after we bought our house. We love it and so do our family and friends! ... I will definitely send people your way if I hear of any !" Denise ( and Jade) Kettles, Powder Springs, Ga.
Here is a recent testimonial fro m a client whose home was previously listed with another agent. It was on the market at $149,900 for 183 days with no offers. We sold it in 46 days for $159,300!
"I just want you to know I am so appreciative of the outstanding job you did in getting my house sold. If it had not been for your professionalism and market knowledge I have no doubt that the house would still be on the market. You did and outstanding job and were always available when I needed to speak to you. I feel you went above and beyond what was expected and for that I am truly grateful. I don't know what else to say other than I rate you above excellent in every aspect of the sale and I will recommend you highly to anyone that you might need a recommendation for. I hope all is well with you and your family and hope you have a great 4th of July and have know doubt that with your level of excellence and professionalism you will continue to be a top performer in your endeavors. Thank you so much again !!!"
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