Joseph Harrison

Another financing method for those homebuyers looking to move up the property ladder. Suppose you've been looking at homes in the area, almost haphazardly, without any serious motivation to buy any time soon, but then one day the misses (aka "The Boss"....aka "Your Wife") falls in love with this beautiful home. You like the home too, but there's one problem. You've got to sell your home to be able to buy this new home the wife demands.

So you call your mortgage broker to discuss your predicament and he tells you about this financing instrument called a "Bridge Loan".

Now according to Investopedia: A Bridge Loan is a A short term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.

There are two types of Bridge Loans:

• A bridge loan that pays off the existing mortgage and gives the borrower money to make the down payment on the new loan. Typically, with this type of loan the borrower is not required to make monthly payments. When the first home sells the borrower pays off the bridge loan along with accrued interest. With this option, the borrower has only one monthly mortgage payment, the payment on the new home's mortgage. If it takes a long time to sell the home the bridge loan may require interest only payments at some point in time, typically after six months.

• A bridge loan that borrows against the equity in the first home to provide the down payment for the second. As with the first type of bridge loan, borrowers typically do not have to make monthly payments on the bridge loan, simply paying it off with accrued interest when the house sells. Unlike the first scenario, however, with this type of bridge loan the borrower must still make monthly payments on their first home's mortgage as well as monthly payments on the mortgage for the second home. This type of bridge loan is not for the faint of heart or financially strapped.

Bridge loans are not my advisable solution, but are a viable solution for some. The cost of a bridge loan is substantial in terms of fees and closing costs. The best deal on a bridge loan is usually going to be found through a lender who is providing both the bridge loan and the mortgage loan for the second home.

The most important thing is to fully understand any loan you are considering. I advise all my clients to speak in depth with a financing expert before they make a decision. I can provide excellent references to utilize should the need arise. Feel free to give me a call for suggestions of who you might talk to regarding your financing concerns.

Joe Harrison

Avalon Properties Group

Cell:912-230-4294

Office:912-280-0304

www.RealEstateofGlynn.com

If you own rental property, this is one of those things you should know about!

Section 1031 of the U.S. Internal Revenue Code allows investors (that you if you own a rental) to defer capital gains taxes on the exchange of like-kind properties.

Ok, so what does this mean?

First, let's explain what would happen if you were to sell you rental property and bank the money.....You get taxed... big time! (Typically 15-20%)

What's your other option? Answer: "An Exchange"

Here's how:

• All sale proceeds (difference in selling price and amount owed) go to an escrow account maintained by your attorney
• You then have 45 days to come up with a short list of replacement properties
• You can "identify" up to three properties at fair market value or you can identify more properties providing their total fair market value is not more than twice the value of the relinquished property. For instance, if you sell a home for $750,000 you can identify 17 replacement properties provided their total value is not more than more than $1.5 million
• You must make an actual purchase within 180 days after the original property transferred (property must be used in trade, business, or as an investment)

What does this accomplish: Essentially you can defer paying state and federal capital gains taxes and depreciation recapture until you die and your estate passes to your spouse, charity, children, or grandchildren.

Pretty cool right!

Joe Harrison

Avalon Properties Group

Cell: 912-230-4294

Office: 912-280-0304

www.RealEstateofGlynn.com

The FHA 203K is a mortgage loan that is insured by the Federal Housing Administration and allows for the rehabilitation and repair of a single family property.

Traditionally if you bought a fixer upper, you would have to obtain financing to purchase the property (acquistion), then obtain additional financing for the repair of the property (construction), and finally obtain a permanent mortgage when the work is complete to pay off the interim loans. This would often involve short amortization periods and high interest rates.

With the 203K, the borrower can get one mortgage loan at a long term fixed rate to finance the acquisition and the rehabilitation of the property.

The mortgage amount is based upon the projected value of the property with the work completed.

The FHA 203K will allow you as a homebuyer to finance up to an additional $35,000 into your mortgage for the repairs and improvements, as identified by a home inspector or FHA appraiser. All standard FHA underwriting guides apply in regards to credit, income, and asset documentation.

Eligible Improvements Include:

1. Repair/Replacement of roofs, gutters and downspouts

2. Repair/Replacement/upgrade of existing HVAC systems

3. Repair/Replacement/upgrade of plumbing and electrical systems

4. Repair/Replacement of flooring

5. Minor remodeling, such as kitchens, which does not involve structural repairs

6. Painting, both exterior and interior

7. Weatherization, including storm windows and doors, insulation, weather

stripping, etc.

8. Purchase and installation of appliances, including free-standing ranges,

refrigerators, washers/dryers, dishwashers and microwave ovens

9. Accessibility improvements for persons with disabilities

10. Connection to public water or sewage system

11. Repair/replace/add exterior decks, patios, porches, sidewalks, driveways

12. Basement finishing and remodeling, which does not involve structural repairs

13. Basement waterproofing, including mold removal

14. Window and door replacements and exterior wall re-siding

15. Septic system and/or well repair or replacement

All in all, it's just another tool in your belt. Potential buyers shouldn't write off the homes in need of repairs, especially with the advantages of the "streamline (K)" mortgage that is available through FHA. Call or email me today with any further questions. I've probably got just the "fixer upper" for you!

Joe Harrison

Avalon Properties Group

912-230-4294

Joseph-Harrison@Live.com

www.RealEstateofGlynn.com

So you've decided to put your home on the market. Most sellers have a pretty good idea of what they would like to get for the sale of their home. Sometimes it doen't always correspond with what they could realistically receive for the home, but that's human nature. We all want to make the highest possible return on our investments.

My warning comes to those who decide to go against the tide and set their price too high. This could be a serious and costly mistake.

The following factors should be taken into consideration when setting a price:

1. Buyer's Frame of Mind- If the home is priced to high, it won't even be considered by potential buyers. You may have the mentality of "if they offer less, I'll probably take it", but that offer may never come because the potential buyer will pass on viewing your home because it is out of their price range. Essentially, your home will look to expensive to consider.
2. Comparable Sales- Buyers compare the price of your home to what the price of everything else on the market is. Your best guide in setting a price involves looking at homes of similar location and features that have sold within the last three months. This will give you a realistic expectation of the price you should expect to receive for your home. Your real estate agent can furnish you with all of this data. You will also want to look at the prices of currently listed competitive properties to help determine your price.
3. Market Conditions- We've all heard the phrases "buyer's market" or "seller's market" -- If real estate is booming, you will likely sell your home in days. When economic conditions are as rough as they are right now, you could be in it for the long haul. In a buyer's market, one can easily expect his/her home to be on the market for months. So, if it is important to sell fast, you need to offer an attractive price for the home at the outset.
4. Incentives- What could make your home more attractive to a potential buyer? Offering incentives, such as paying all or some of the closing costs in the transaction. Other incentives can be to the selling broker who brings the buyer, such as "$1500 bonus to the broker who brings an acceptable offer before July 31st." I've even seen sellers offer bonuses such as a vehicles, boats, and various furnishings to potential buyers. Anything that adds value in the eyes of the buyer can be used as an incentive to purchase.

If you take all of these factors into consideration, I have no doubt you will be able to sell your home at a satisfactory price and amount of time.

Feel free to contact me for advice and comparable sales data, if this is an endeavor you are considering undertaking.

Joe Harrison

Avalon Properties Group

Cell: 912-230-4294

Office: 912-280-0304

www.RealEstateofGlynn.com

Marshes of MacKay is a very beautiful neighborhood in Brunswick, GA. The subdivision is located off of Highway 17 in North Glynn County, about midway between the old waterfront city of Darien and all the shopping and entertainment of central Brunswick.

What I find great about this neighborhood is the beautiful homes, spacious lots, and mature landscaping. I talked with a resident the other week about how he was sold on this neighborhood primarily because of the beautiful oaks and lush greenery that abounds in the area. When he and his wife were in search of a home a couple years ago, they looked at a lot of property, particulary some newly developed property in these "cookie cutter" neighborhoods with little scrub pines and ornamental yard trees. He expressed to me that he felt much more "at home" in this type of neighborhood.

Another great feature is the wonderful people in this neighborhood. I have assorted friends and even family that live in this neighborhood. They love it! Everyone has a sense of privacy, but there is also a large sense of community. Neighbors help one another out! Unlike someplaces I've lived in my life-- where you'd be lucky to get a friendly "hello" after years of living next to the person.

Anyways, my point with this post.... I've got a great new listing at 73 Marsh Trace ( if you go to the back of the neighborhood and hang a left on Marsh Trace--- go until you almost reach the cul de sac and you'll see my sign on the right)

It's a beautiful lot that is just waiting to be built upon. Not ready to build today? That's alright, it's still worth a gander... perhaps you could "sit on it" until you're done drawing up those house plans for that home you've always dreamed of having. A home built custom for you.

So, check it out! There is a trail on the lot that allows you to walk into the interior lot and see what the landscape is made up of. I'd be glad to meet you out there and show you where the stubs are located so you can get an idea of the dimensions of the lot. The lot is .673 acres- that's 2/3 of an acre, plenty of room to spread out.

Exclusively listed by Joe Harrison of Avalon Properties Group

Call : Cell- 912-230-4294 or Office- 912-280-0304

73 Marsh Trace for only $38,900