Killeen, TX

It is very important to have a family budget if you have not done this already. I was talking to one of my clients, a young husband and wife with no kids, who were making the average median income but was not saving any of it. Their average income for a family of two was $45,000 yearly, yet they had no savings. They had no credit cards, no car payments and about to have one mortgage note. I know this may seem far fetch but it is the truth. They ignored the importance of writing it all down. Trust me when I say that setting up a family budget would be one of the wisest things you can do to make you alert of your spending habits.

In addition, it is also important to pay yourself first. This principle is a proven strategy of wealth building. Just think of it as a bill you have to pay each month. When you treat your savings with the same integrity as you do your creditors, you begin to create financial wealth. By practicing this principle, it becomes mandatory instead of optional. This means that you should deduct between 5% and 15% of your paycheck as savings. This should be considered your top priority as your financial future is just as important as your creditors. Just imagine if my clients where doing this monthly, they would have save from their salary of $3750 x.15 =$562 monthly x12=$6750 yearly x 5 years, the outcome $33,750. The earlier you start in life the more secure your financial future.

Only after paying yourself first should you pay your monthly bills. This ensures you save every month. Again, by paying yourself first you build your wealth. For example, if you paid yourself only $200.00 per month, through the power of compound interest you could retire in 30 years with $215,000.

With job industry on the decline and more and more people losing their jobs, if you are not practicing this "must do" I suggest you start now.

Can you imagine the clutter in many people homes and garages? I know there are people out there who are tired of garage sales, that is why when storing it is essential that you choose a great storage company. In Killeen Texas there are many storage companies to choose from, but when finding the one right there are key elements to look for and a lot to be mindful of.

First, is making sure the company offers great customer service and reasonable pricing. Also make sure you call in advance to get adequate pricing over the phone and directions before heading out.

It is also important that you know what you are storing such as furniture, how many boxes, any big appliance pieces like washer and dryer. This would give the storage associate a generalization of what you have and how much storage space you would need.

Another critical step is asking about security and any possible break ins that may have occurred in the past. You also want to find out about any compensation the company may have for damaged items if there was a storm or any other natural disaster. If there is no compensation, find out about storage insurance.

Many storage companies have move in specials and discounts for military and seniors. You may want to find out about any promotions at the time.

Also, it is important to note any late fees and the dates fees are assessed. It is also good to find out about payment options, whether on-line payments is possible, monthly re-occurring debit/credit and pre-payment.

Many storage companies offer month to month lease but you will also need to ask about terms of their lease to make sure you don't get stuck in a 3-6 month or more contract.

Lastly, the cleanliness of the facility would tell you a lot about the service provided, make sureyou store your items at a pest free, clutter free storage facility.

It is important that many of us understand what our role is in selling real estate. I think that success is determined not by your sales volume but by the many people you help accomplish their dream of home ownership because, happy buyers generate more referrals. As a Realtor, I realize that you can’t make all clients happy. Some clients are simply there to test your willingness to continue in this profession and others are there to remind you why you are in this profession in the first place. I must say, I love helping people and yes, some may frown on it and chastise some Realtors who actual enjoy making a living out of what they do, but nonetheless I love helping people. For this same reason I decided to go in this business so I can help struggling families find an affordable home. So I ask for what reasons are you in the business?

What is an affordable home you might say, well I consider an affordable home, a place where someone look forward to going home after work, a place where your bills do not supersede your ability to enjoy life. A place where relationships are foster between a husband, a wife and their children because they can enjoy time spent instead of worrying about an overdrawn bank account and buying groceries. An affordable home is a home where lawn maintenance, gardening and cleaning the sidewalk gives you joy in the pride of home ownership. An affordable home is a place where memories are built for a lifetime because you are not reluctant to open your mail on evenings because of fear of foreclosure. An affordable home is not hiding the car in the garage because of fear of repossession.

I consider an affordable a right of passage, where you see your children become prominent leaders in life and never having to worry about moving because of bad schools. Affordable homes are many things but I know what it is not, it is not bankruptcy, foreclosure, credit card debts and excessive car payments. Because when buying an affordable home from me, I teach my clients that spending more than you can afford is not the healthiest way to enjoy life but it is rather a recipe for disaster. I teach you that an affordable home is a home with sweat equity, where tax credits are given, bills are paid on time and lavish spending is not true happiness. You see when buyers don't buy homes they can afford, they are bond by the sufferings of society.

It is true that buying a home doesn’t eliminate all of our problems but I am here to say that buying an "affordable home" helps to reduce many.

Before looking at properties, determine first what the current market rents are for the property type you have in mind in your area.

An experienced real estate agent or property appraiser should be able to tell you this.

You can then determine what your net income on the property would be each month (also remember the tax benefits, if any) after factoring in regular and unforeseen maintenance expenses.

Determine also your long-term strategy for owning the property.

Will you be willing or able to break even, or potentially take a loss on the property each month, anticipating a high sales price in the future? Will you be able to hold the property during times of declining property values, as we are experiencing now?

Getting a Mortgage

Mortgage lenders will typically charge a higher interest rate (one or more percent) on an investment property than they would on a property that a borrower will live in.

This is partly due to the fact that both renters and the rental market itself can be unpredictable.

In calculating their risk, things that lenders look at when considering to lend on a rental property are:

How much money will the borrower be putting down? Typically lenders want between 10% and 25% (for first time investors) to show the borrower has a vested interest in the property and wants to make it work.

Landlord experience: How long has the borrower been managing rental properties, if at all?

Income and assets: Will the borrower have enough money in the bank to cover the mortgage, taxes, and other expenses if the property is vacant for an extended period? Typically lenders want six months in reserves.