Little Green Houses

Now you know what you need to get started in investment real estate: Little Green Houses!  Now let's expound on HOW?!  I mentioned earlier that there are "creative" ways to purchase your first investment property, now I will expound on those ways along with the more traditional ones.

• Cash is King (whether it's your own or borrowed from a rich friend or relative) You may be able to secure a better "deal" with this method.  Often sellers are more negotiable when a buyer pays cash, because it can close faster and with less issues.

• 20% cash down and finance the rest through your favorite mortgage banker. This option would be for a buyer who has 20% of the purchase price in liquid funds of thier own.  How do you get cash like this you say?  Start saving or sell things you don't use/need anymore.

• 20% down with Other People's Money (OPM)!  How do I get OPM, you say?  Either from a friend or relative, Home Equity Loan or Line of Credit on your personal house, or from another investor/business partner. 

• 10% down!  My favorite banker, Anne Kehoe from Wells Fargo Home Mortgage, introduced me to a program where you can put as little as 10% down on an investment property if it is a HomePath property!  This means that it is owned by Fannie Mae.  To view a list of eligible homes in the area visit http://www.homepath.com/ . To find Anne go to www.wfhm.com/wfhm/anne-kehoe

• Contract for Deed.  This is how I bought my very first investment property!  They are difficult to find because many sellers are not able to offer a contract for deed. But if you are unable to obtain a traditional mortgage this is another avenue.  As long as the terms are right and the house is a good fit.  It works well for people who have a good down payment, but for some reason cannot get financed.  (For me it was because I was self employed and could not show 2 years of income at the time.)

• Credit card.  I do not recommend this method but I have to tell you that I used it once!  I bought a lot at the county land auction for $13,400 with a credit card check.  It was a promotional no interest, no payment for 6 months and I had a limit of $13,600!  I knew that I could pay it off from another sale that was coming up within that 6 months so I took the plunge.  USE THIS METHOD WITH EXTREME CAUTION!!!

If you or someone you know has always dreamed of investing in real estate NOW is the time.  First of all, prices are down and rates are still incredibly low!  If you'd like to get started NOW, contact me TODAY! Or you can always check out my website to view all of the area listings at: www.realliving.com/mandy.gazelka  Happy hunting!

Getting your home to shine

When selling your home in the current market it has to be the best in it's price range in order to get it sold in a reasonable amount of time.  In a world where everyone wants more for less, in order to get the best price possible for your home, it has to shine!  As I was cleaning my own home I began to think of what my home would look like if it were on the market and what things I would need to do to prepare to sell.  Looking around my kitchen I looked over at my fridge (top), covered in precious artwork done by my 2 little girls.  While I love every single one of those masterpieces, if I were selling, I would take them down (bottom) for showings or during the duration of my listing as I'm sure it would be distracting for potential buyers to see the beautiful paintings, to-do lists, and calendars.  The same goes for too many family photos.  While you want to make your home look like a happy place to live you also want the buyers to look at your house, not your life.  The only time I would recommend photos would be if you lived on a lake or in the country where you were able to capture pictures of the wildlife or big fish you caught on your lake!

If the thought of even getting to the place where you are ready to worry about these "little things" scares you, it may be time to hire a professional.  Like I said in a previous post, cleaning, de-cluttering, doing small repairs and painting are the the most important and most cost effective ways to increase your home's value and decrease it's time on the market.  In the busy world we live in where not everyone has time to get these projects done, a great place to turn would be a home stager.  In the Bemidji area I would recommend checking out Kendra Fuller at Urban Essence Interiors on facebook or on the web at http://www.urbanessenceinteriors.com/  By hiring a stager/painter you can check off half of your to-do list while getting top notch advice.  Not everyone has the same tastes in decorating so having gender and taste neutral style can help potential home buyers have a vision of what the home would look like if they were to live there. If you are a seller this is exactly what you want; people to "mentally move-in" to your home!

Statistics show that staged homes spend 50% less time on the market.  Average days on market in the Bemidji area so far this year is 180 days.  Cutting that in half could save you a lot of headaches. Also, a staged home can sell for up to 7% more than a non-staged home.  The cost of staging your home now will be much less than a price reduction later.  So whether you are a DIYer or you need a helping hand, taking the time to prepare your home for sale is a must!  Don't forget you can always call or email me with questions or for a free consultation.  Happy Selling!