Josh Perrington

Many of us have met at the Daily Grind on 419 in Roanoke for coffee, lunch, or fellowship and it’s become almost a home away from home for some. Countless relationships, ideas, and friendships have been forged at the very booth I’m sitting in as I write these thoughts.

If walls could talk…what would they say here? Would they talk about the frequent regulars like Heather Jacobson, John Lusher, Marty Martin, and Susan England? Or, would they tell about all of the creations that have come from these booths – like Project Give and other non-profit efforts? We’ll never know of many of the ideas, but rest assured they’re plentiful.

As I sit here observing, I see patrons visiting with each other. Some talking about the snow, some talking about their futures, some just being present, and a few truly diving deep into conversation as if no one else were here. Without Daily Grind, would any of this be happening? I suppose it would be taking place at Mill Mountain or MoJo Cafe, but there’s something special about this address. It’s not the coffee or the food, it’s the owners. On any given day, you can see Jeanie Patterson floating to engage with her “family”. Just ask. Most will tell you they come because of Jeanie. They come because they feel a part of their extended family, and rightfully so. Have a chat with Jeanie or Jim (husband) and both will admit their love for the people who occupy these seats and not for reasons you may think (profit, and such). They care because it’s in their DNA. Natural networkers, if you will.

So, should we be sad, full of remorse that our establishment is leaving? Nope.

The Staff (including Jeanie), is staying. And, let’s face it, we don’t come here for the coffee – we come here for the people. We come for the relationships. We’ll take a sabbatical for a few weeks, but then? Then…there’s this:

Enter Baha Bistro.

Word is…they’ll have FRESH tacos, nachos, salads, etc…and the best part? Margaritas. I can see Roanoke’s TwitterSphere going crazy for #MargaritaMondays already (I know you’re in @JohnLusher, I’ll probably be there too @joshperrington)…and let’s make that happen. Let’s pull together and support the efforts of Roanoke’s very own. Who better to initiate a recovery, than us.

As I wrap up, I realize this will be the last time I post from Daily Grind. The signs come down February 6^th, but the memories remain for a lifetime.

You will be missed, my friend.

If you’re reading this, your probably in one of the following stages in your life: Either you currently own a home & want to renovate, you’re thinking of buying a “fixer upper” as your home, you want to sell your house & buy a home that needs a little work, or your home is on the market, but it just won’t sell!

1^st things 1^st, let’s start by asking:

“What makes a Renovation Loan (FHA 203k) different from a Traditional mortgage?”

A “Traditional Mortgage” is one that the lender only approves based on the current value & condition of the property. If you find a home (foreclosure) that might truly be worth $300,000, but have arranged for a purchase at $210,000 (great deal btw!) the traditional lender will only lend up to the $210,000 your contract price. Now, say it’s not a necessary fix, but you want to upgrade the kitchen & add new windows. Even though there is already equity in the property, with a Traditional mortgage you would have to pay for the upgrades with your own money. Common sense may scream “There’s $90,000 worth of equity in the property, why can’t I just include it in the loan?!?!” The traditional lender doesn’t care…your contract price = the max loan amount.

Here’s the great part… using the same purchase scenario as above, a Renovation Loan (FHA 203k) WILL allow you to make all of the upgrades AND include them in your loan. A FHA 203k Renovation loan lends based on the AFTER-IMPROVED market value of your upgrades/renovation…not the current value. This changes the game completely!!! Instead of having to bring an extra $40,000 to closing (assuming that’s what the kitchen & windows cost), now it’s included in the loan and you keep your money in the bank! Let’s talk about a few more real world examples…

I own a home, but want to renovate…

Maybe you’ve been watching a lot of ABC’s “Home Extreme Makeover” and want to turn that old 70’s kitchen into the new bright, shining, stunning kitchen of 2008. You want to knock a few walls down, replace the flooring with hardwood, new appliances, granite countertops, etc… You have primarily two options. If you already have enough equity in the home, you can simply do what’s called a “Cash Out refinance” – which means we refinance the current mortgage and pull enough cash out to pay for the projected renovation…that simple. But, what if you don’t have enough equity in the property to pay for the renovation? That’s where the FHA 203k comes in… Say your home is currently worth $200,000 and you owe $190,000. You only have $10,000 worth of equity ($200k – $190k) which is not nearly enough to cover the projected $50,000 (example) cost of renovating. But, say the improvements will cause your home’s value to skyrocket to $270,000 once they’re complete, versus the current value of $200,000. We would lend on the AFTER-IMPROVED value and simply include the cost of renovation with your current mortgage balance for a total loan amount of $240,000 (original balance of $190k + $50k improvements)…and now instead of having $10,000 of equity…you have $30,000 (new value of $270k – new mortgage of $240k)!!

My home’s on the market, but it just won’t sell…

Often times, when prospective buyers are walking through “Open Houses” or visiting potential new homes they are stalled by the blemishes or older characteristics…even though the property may be wonderful for them. It’s difficult for them to maybe see the true potential simply because the windows need to be replaced, or the HVAC system is old, maybe the plumbing needs updated, or even the roof needs replaced – but the current seller may not have the funds needed to make those improvement prior to selling.

Think about your home through the eyes of a new buyer… Are there traits that may need to be updated? If so, have your Realtor partner with an FHA 203k Renovation expert to draft a glimpse of what the property could be like AFTER the improvements, that a prospective buyer may want, are complete. Show them the pot of gold at the end of the rainbow! Educate the buyers that their improvements CAN be included now in their purchase! YOU WOULD BE AMAZED AT HOW MANY REALTORS DO NOT KNOW THIS OPTION EXISTS!!!

I’m thinking of buying a “fixer-upper”…

Just as we talked about above, this is a great option! With a traditional mortgage, you would have to pay for any of the improvements with cash out-of-pocket in order to buy a property that needed some TLC.

Now, instead of using out-of-pocket cash to make the improvements, use the Renovation Loan to purchase & allow the equity to work for you!

What can the FHA 203k Renovation Loan be used for?

There is a LONG list of eligible improvements allowed for the 203k. Pretty much, the only things that wouldn’t be allowed are luxury items that can’t be included as a permanent piece of the property (i.e. 60” Plasma TV’s, etc…). But, here are a few that can be included:

• Bathroom remodels
• New Siding
• Attic build-outs
• Adding a 2nd floor
• Granite countertops
• Bedroom Remodels
• Upgrading HVAC
• Going GREEN! (Solar panels, energy efficient appliances, etc…)
• Many, Many, Many MORE!!!!

Now, What’s the Loan Process Like?

Apply for Pre-Approval!!!! I honestly can not stress this step enough. I’ve seen it many times…couples get excited about renovating, they’ve designed the kitchen, picked out the appliances, selected the contractor…only to then find out they can not be approved. Granted, the requirements are less stringent than a conventional mortgage…but that does not mean everyone will be approved. So please, do yourself a favor & talk with a 203k Mortgage Planner first…plus…I like joining in on the fun of watching you go through the designing process…

Here’s what needs to happen (preferably in this order):

• Call me or email me & we’ll take care of your Pre-Approval
• On-site consultation with Appraiser, Contractor, & Mortgage Planner
• Receive bids & Architectural designs (if needed)
• Property Appraised
• Loan submitted, underwritten, & conditions cleared
• Loan closed & repairs begin
• Total Loan Time: 30 – 45 Days!!!!

The process for qualification, approval, and fund disbursement is really quite easy on your part. If you look at the process through the eyes of the lender, it becomes more of a common sense approach than anything else. If you were the lender and planning to give money to a family, you would want to know that someone in that family has a stable job, has shown their ability to pay loans in the past, and has enough resources currently to stay on time with their payments. That’s it! Obviously, there are a few other small items that would need to be addressed, but leave that to us…

Wrapping up…

This loan absolutely has the potential to create personal wealth and a huge amount of equity from day one. Even more significant, it gives a sense of hope & renewal to families in an economic environment that does not foster such characteristics at the moment. I’m passionate about helping others turn the house they have…into the home they want!

Feel free to call or email us anytime with questions…we’re here to help.

Cheers!

It took all of about 30 seconds to become addicted to reading friends’ status updates. Not something I’m proud of, mind you…yet, lately, has proven to be not-so-unusual…and facebook knows this.

Aside from rummaging through friends’ photos like you’re spying on them from the outside, status updates provide a glimpse into the “Jone’s” lifestyle…which hike they went on this weekend, who’s house they watched the Hokies game at, where they took their kids for their birthday party, what they ate for breakfast, etc… We’ve all seen them, but now the game has changed!

Facebook recently announced its newest capability – which now enables tagging of status updates for Friends, Pages, Events & Groups. Many of my friends have been asking “Why is that so important…seriously, who cares?”. Answer: we ALL should care, and here’s why:

Facebook has become famous for its ability to allow photo tagging of friends, causing an extreme viral effect. We’ve all experienced it. We try to maintain semi-professional facebook page, while Timmy (the friend you haven’t seen in 20 years) thinks it’s hilarious to tag you & post a photo he generated from yearbookyourself.com to your page. Meanwhile, every single one of your coworkers, clients, and friends have all seen it before you have a chance to untag…been there, done that.

Now, though, facebook has taken it up a notch (a giant one, at that). Riding Twitter’s coattails by copying the already popular “@” Mentions style, will prove to pay off. This is fantastic for businesses & nonprofits who have already embraced Social Media Platforms as a way of attracting & engaging customers/supporters. Fantastic b/c it has unlimited potential for creating massive amounts of buzz…whether good or bad.

Example #1: I go to Debbie's Cakes & have her make a SpongeBob Squarepants cake for my daughters and she does a great job. I might post something like “Just picked up the SpongeBob cake for my daughters…WOW! Not only was she just as good as Ace of Cakes…she was drastically cheaper!”

or…

Example #2: Maybe I go to a local restaurant & receive not only the worst service, but also something…other than what I ordered in the food. The viral effect could be MUCH worse. “Seriously “local restaurant”? A roach in our spaghetti?!?! – never again eating there!”

Either example creates an instant viral tsunami that’s virtually uncontrollable. Just think…if you have 300 facebook friends who just saw either update & 20 of them decided to repost & tag? That’s a possible 4,300 sets of viewing eyes! (Assuming each of the “reposting” 20 friends have at least 200 friends each. (20 * 200 = 4,000. 4,000 + 300 original viewers = 4,300) Viral in it’s purest form!

The wording doesn’t change, but the effects do. It used to be (just last week) that someone would post a positive, or negative, update and we would all just read the name and move on…sometimes throwing in our 2 cents. Now, by tagging, we can just click on @MichaelHyatt and put a face to the name instantly. Thus, aiding in brand creation for that person, company, group, or non-profit…whether they want it or not.

Plus…it’s crazy simple. Facebook has done all the work for you. In your “What’s on your mind” box, type the “@” symbol and directly after – start typing a friends name. In the pic below, I’m typing that I just finished coffee with Ryan Salvi and his name starts to auto-populate.

Here, feel free to try: Go to your status update box and type “Just read a great blog about facebook changing the game…thanks @joshperrington!” - then post, that simple. You’ll love it…

As we’ve all heard “May the force be with you”…this new facebook tool is not to be taken lightly. As always, the power’s all yours…just use it wisely.

Disclaimer: @MichaelHyatt is an amazing individual & was merely used for purposes of explaining the example!

There has been much speculation surrounding the topic of the $8,000 Tax Credit for 1st Time Homebuyers. Let's set the record straight:

2009 American Recovery and Reinvestment Act
$8000 Tax Credit

A refundable first-time homebuyer tax credit of up to $8,000 is the centerpiece of housing incentives found in the 2009 American Recovery and Reinvestment Act.

The new credit is designed to boost sales in the nation's sagging housing market by offering a strong incentive to first-time homebuyers. Lawrence Yun, chief economist for the National Association of Realtors, predicts 300,000 home purchases will be made in 2009 as a result of the tax credit.

The new credit improves on a first-time homebuyer credit passed in 2008. That credit had to be paid back over a period of 15 years, making it more of a loan than a true credit.
The greatest part of this tax credit is that homebuyers can take the credit on their 2008 tax return even when they have purchased the home in 2009. Homebuyers can take advantage of this filing exception in one of three ways:

1. Closing on the home prior to April 15, 2009
2. Getting an extension to file taxes later in the year or
3. Filing an amended return.

Specifics are below:

· The Tax Credit is for up to 10 percent of the purchase price, up to a maximum of $8,000.

· For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000.

· The Tax Credit does not have to be repaid unless the home is sold within three years.

· Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.

· The Tax Credit is available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.

· Restricted by income; The Tax Credit phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.

· The credit can be taken on 2008 taxes even when the purchase is made in 2009.

Until next time...

Josh Perrington
540.598.7985

PS: We work with many of the Roanoke area's most credible Realtors. If you need help finding a Realtor - feel free to let us know & we can help suggest a few we would recommend...

Fall, is an understatement...plummet might be more appropriate. This week has definitely been one for the books... If you haven't heard, mortgage rates have taken a serious dive & are now hovering around 4.75% for a 30 yr fixed...how insane is that!?!? They were just @ 6% a few weeks ago. And why isn't this plastered all over the news? See my post, for a glimpse of things to come: "600 Billion Reasons We're Headed for Great Things!"

Just this morning we helped one of our Roanoke, VA clients consolidate a few credit cards, personal debts, and her mortgage for a monthly savings of $836! The exciting part isn't the fact they're saving money (maybe it is)...it's the financial plan we've help create to get them through retirement & their children to college.

Call or email & let's grab coffee to talk about how the market affects you. As always, we're here to help...

Cheers! - Josh

P.S. - Pass the word...the market's changing!