Income does not have to keep you from buying a home. NC Finance Agency offers many programs to get you on the way to home ownership.
North Carolina Finance Agency
http://www.nchfa.com/Homebuyers/index.aspx
NACA's Best in America Mortgage Offers:
A HUD home is a residential property owned by HUD due to a foreclosure of a FHA-insured mortgage. Almost anyone can purchase a HUD home. They are initially offered to purchasers who are buying the home as their primary residence. If properties remain unsold for a period of time called the (priority period) it becomes available to all buyers which include investors.
HUD homes can be very good opportunities for first-time home buyers and investors as they are sold below market rates in most cases. It allows a first-time home buyer to purchase a home at a reduced rate and usually receive repair credits to make necessary repairs to the home. Investors benefit by being able to purchase homes for rental or re-sale purposes. This is a complex process to the general public and HUD requires that all purchases be made through a registered real estate professional.
You must follow all of the steps any home buyer would follow in addition to the HUD electronic bidding process (which is handled by your real estate professional). You must be pre-approved for a loan, be informed of your rights, become familiar with loan programs, search for a home, place a bit and get a home inspection.
Once a home is selected, you will work out the details of your offer with your real estate professional. The offer will be submitted electronically and your realtor will be notified if your offer is accepted. You will be given adequate time to have all inspections performed, but all HUD homes are sold AS IS.
You may visit homes for sale on this web site: www.hud.gov/homes/index.cfm
1. Failure to Determine Your Time Need- Cash flow, capital appreciation, tax benefits, loss of management, equity pay-down and pride of ownership are just some of the things that need to be addressed before you make that investment. A service-minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you've got all your bases covered.
2. Not Checking out the Seller or Seller's Agent's Numbers- Claims of extremely high rates of return run rampant in real estate investment. Don't get caught up in the excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything! Make sure you have the right agent. It's like having a good insurance policy against overlooking all the seemingly insignificant but very important details.
3. Forgetting You're Buying a Business- Owning investment property carries great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property and time management all need careful consideration. Remember this is not a "hands-off" business.
4. Avoid Negative Cash Flow- Property that eats cash every month can drain your working capital. This creates stress, frustration and can become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.
5. Failure to do a Thorough Inspection- Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or recurring problems. Don't overlook anything! A value-driven real estate professional will help you find the right inspector and can help you avoid costly mistakes. When investing your hard-earned money, be sure and use sound business judgment!
6. Failing to Have Adequate Insurance- Investment property brings liability. Tenants, cars, parking lots, property liability - the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.
7. Inspect, Approve, and Confirm All Documents- The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance.. don't attempt to do it alone. The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.
8. Get a Bill of Sale For All Property Involved- Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed... know who owns what!
9. Charge Fair Rents- Vacancies, turnovers and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It's a lot less costly in the long run to take care of the little problems before they become big problems. Vacant property is your Achilles heel.
10. Select Qualified, Good Tenants From the Start- Take the time to check references. Previous landlords, employers, financial references, credit, judgments are all vitally important. If there are any questions, investigate fully. Drive by their previous residence. A little work up-front can save tremendous problems later on down the line.
11. Make Sure You get Estoppel Letters- Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the seller's interpretation.
12. Don't Spend Positive Cash Flow- Most of successful investors have free and clear properties. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule. This decreases your debt load and increases your equity... which builds your net worth.
Investment property can be one of the most rewarding aspects of your financial portfolio. Be certain to have all your "ducks in a row" before you invest. Do your homework! Consult with a professional real estate agent and relieve yourself of the hidden troubles that can plague first time investors.
I hope these tips have been of value to you. It is my ultimate desire to help you achieve your real estate investment goals and provide you with the most professional, efficient and effective service possible! If you have any questions or there is any way I can help, please give me a call.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
