minnesota real estate

Second Mortgage

A Second Mortgage: Should You Take It Out?

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We know from the economic meltdown that began in 2008 that using your house as an ATM may not be the best idea. A fat line of credit that can be accessed with a debit card or even checks can be quite tempting, but that doesn’t mean that you should automatically think about taking out a second mortgage loan to tap your equity—unless you have a good reason.

Taking Out a Second Mortgage: Not So Good Reasons

You should only borrow money if you need it. That may sound simple, but in some countries, people borrow money simply because they can. Even in the U.S. in the early 2000s, many people based their “wealth” upon the amount of money they could borrow. Some people with only $5000 in savings but with $100,000 of available credit thought they were well off because they had the ability to raise a substantial sum. Therefore, they acted upon any chance to borrow money and loaded up on credit lines. If you are borrowing money only because you can, that’s not a good reason.

Taking Out A Second Mortgage

Taking Out a Second Mortgage: Finances are Tight

This happens for a reason. If you spend more than you make, you will be cash-flow negative, and that will cause you to borrow. If you have amassed considerable credit card debt, it may be very tempting to take out a second mortgage at a lower combined interest rate and pay off those cards. Seven or eight percent is a lot better than 27.9 percent, but if you don’t cut up your cards after you have paid them off, you may not be able to resist the temptation to max them out again.

Finance are Tight

You Just Need Some Breathing Room

Breathing room is great, but if the forces that are suffocating you are not dealt with, you won’t make any progress. If your $800 monthly utility bill is killing you, turn down heat, turn up the A/C, quit watering your lawn or turn out the lights. If you don’t act, you’ll soon see another $800 energy bill, and you’ll have to figure out how to pay that. Borrowing against your home for monthly expenses that you can’t reduce is not a good idea. Instead of this, start looking for the best side hustles that allow for some extra income!

Economic Stimulus

Some Better Reasons for Taking Out a Second Mortgage

There are, however, some good reasons to borrow against your home:

  • You’re starting a business.
  • You want to go back to school and can’t get reasonable student aid or loans.
  • You want to help a family member.
  • You want to start a remodeling project that will increase your home’s value.
  • You want to assist your children with some expenses.
  • You found a great investment opportunity.

Like any other loan, make sure you shop around to get the best terms.

The Contract for Deed Crew

While we don’t do second mortgage loans, we at C4D can assist you with the purchase of your home. We are more flexible and understanding than a lot of banks, and we are experts at using the MN contract for deed as a path for true home ownership. If you have any questions, visit our site. We are here to help!

Costs of buying a house

5 Lesser-Known Costs of Buying a House

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Ready to buy your first home? Do you know the costs of buying a house? You’re probably not actually. That’s not to say that you shouldn’t do it, but you should know what you’re in for.

No one is going to tell you, the homebuyer, that buying a house is cheap, because no matter where you are or how big the house is, it’s likely that the costs of buying a house will add up to a huge number.

And that’s just the house itself. You’ve also probably got a mortgage, furniture and several other things that are going to bump up the overall price too.

There’s the stuff that most people are aware of, but there’s a lot of other costs too that maybe you haven’t thought of before.

You should be thinking about them though, no one likes surprise fees. So here’s five of these lesser-known costs that you should familiarize yourself with.

costs of buying a house

Closing Costs of Buying a House

Closing costs are an expense that a lot of people don’t even know exists, because it doesn’t come up until pretty much the last second.

This is the final thing that you have to pay just before you’re given the keys. It’s a collection of fees that come from your mortgage lender to secure the final transaction.

Closing costs will usually amount to almost 5% of the price that you pay for your home which is quite a bit when you think about it.

It usually includes things like credit report and home appraisal, stuff that isn’t factored in to the original price.

Don’t let this be sprung on you because as I said it’s ignored completely by the seller in some cases and it can slow down the proceedings if you’re not prepared for it.

You should always plan ahead and try to work out roughly how much the closing costs could amount to. Make sure you have some money left over for it.

Homeowner’s Insurance 

If you’re getting a mortgage to help with the costs of buying a house, which I’m assuming you are, then this is something that will probably come up.

Mortgage lenders will be thinking ahead. The last thing that they want is for one of their clients to have an uninsured house.

As you can imagine, this could get in the way of their repayments if worst comes to worst and so they won’t give out the loan unless you’ve got the insurance.

It will protect you in the case of things like theft, fire and any kind of damage caused by storms and other natural occurrences.

So homeowner’s insurance is something that you’ll probably want to have anyway. Commonly this insurance will cost you a little bit more than $1,000 per year.

This depends on a few factors such as how old the house is and how much it cost in the first place. It’s definitely worth it though, and it will probably be a necessity.

Property Taxes on Buying a House

Property tax isn’t everywhere, but many local governments do have them in place for every homeowner in their area.

It’s become so widespread these days that you should probably just assume that it’s something you will have to spend money on.

In America, you can work out how much it will be in your area fairly easily. It exists for good reason.

Most of these smaller communities will use property tax to keep local schools, hospitals and various other infrastructures in good condition.

Much like homeowner’s insurance, this is another fee that will be different depending on where you are, how much the house cost and probably a few other, area-specific factors too.

Whether you pay it monthly or annually is also something that will depend on the area but sometimes that’s a matter of personal preference too.

Emergency Costs of Buying a House

This isn’t something that’s going to be a problem straight away like the other stuff that I’ve talked about, but it’s something that you need to plan ahead for.

Before you buy the house, you have no idea what sort of things could come up unexpectedly. And your insurance might not cover every single emergency.

For example, if your area has a massive power outage in the middle of Winter and it’s impossible for you and your family to stay there, homeowner’s insurance won’t pay for a hotel.

That’s just one example of the numerous things that you could end up having to shell out for at some point.

Some things that happened to you while you were renting that weren’t a big deal, could potentially be a big deal in a house that you actually own.

Do some research on possible emergencies, and ensure that you have some kind of emergency fund set up for yourself before you move in.

Buyer’s Demands

Now this particular cost is only going to apply to you if you eventually decide to sell. You might think that that’s never going to happen, but who knows what the future holds.

Even if it’s your dream house, there’s any number of reasons why you might actually want to sell it at some point.

And if you do, things will definitely have changed since the time you bought it. You must always keep your house in good condition.

If you slack on this, by the time you want to sell you could be looking at a price that’s significantly less than what you spent on it yourself.

You don’t want to have to spend like $10,000 to get the house fixed up and ready for selling, and you can avoid this by just dealing with it while you live there.

It will cost money. Over the time you own the house it will probably cost quite a bit. And there’s no real way of predicting what other factors will come into the price when it comes time to sell.

If you’re concerned that you won’t be able to afford to keep the house in check, you could always look for extra sources of income.

Maybe try investing. If you invest in high-dividend yielding stocks, you can guarantee yourself some extra cash every month.

It would definitely be helpful in the long-run for these kinds of expenses. It’s not something that many people think about for obvious reasons, but preparing for buyer’s demands is a good idea.

Wrapping Up

We’re not trying to scare you away from the idea of owning some property, because buying your first home really should be an exciting experience.

But it’s expensive. And it’s expensive in more ways than people realize. You can get ahead of the curve if you know what to expect.

Rent vs Own

Rent vs. Own: The Actual Monetary Difference

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Some consider rent vs. own to be the ultimate real estate question. For example, if you’re living in Dallas, should you just rent from a site like this because someone else is responsible for repairs, yard maintenance, storm damage, etc ., or should you take the plunge and become an owner so that you can build equity? Where is the tipping point? Where do the lines cross to indicate that it is more sensible to either rent or buy? Just because we are MN contract for deed specialists doesn’t mean that we blindly endorse one scenario over another, so let’s get started.

Let’s Take Autos as an Example

Rent vs. Own

A CPA friend of ours used to buy all of his cars. He took care of them, nursed them along, and replaced countless brake pads, tires, alternators, exhaust pipes, and more. He had a rule that he would finally try to sell the car when the rear-view mirror fell off. Our friend would buy the cars with a bank loan and was obligated for four years of monthly payments. During the first three years, the car was under warranty, so major repairs were not a factor. The new car warranty usually ran out after 36 months, however, so in year four, our friend was making payments and paying for certain repairs. After year four the car payments ended, but repairs became more frequent.

Our friend would take the four years of payments, add repairs, then subtract that from the price he ultimately received for his used car. Frankly, with some vehicles he won, and with others he lost. Eventually our CPA decided that we would never buy a car again because it was a depreciating asset, and he didn’t want to own depreciating assets.

He instead decided to lease all of his vehicles for three years max. He made 36 monthly payments but any repairs were covered by the new car warranty. Many times, he could even get along without having to replace the tires. He considered the monthly payment to be a “cost of driving,” and figured that he would have had that cost anyway since it was either payments, payments plus repairs or repairs only. At the end, if he owned a vehicle, his $18,000 purchase might be worth only a few thousand dollars, and he decided that owning a car was a futile exercise.

But What About Homes?

Some people apply the rental theory to homes. They don’t want to cut the grass. They don’t want to pay for repairs, and they don’t want to worry about the housing market. If you agree, by all means find a great rental property and let someone else worry about the taxes, upkeep and maintenance. If something breaks, call the landlord and spend your money on something else.

Check Out the Residential Difference

Rent vs. Own Homebuying

Image via Trulia

We do urge you to look at the other side, however, as there is a one huge difference: Homes increase in value. We of course can’t guarantee that every purchase is going to be a winner. But look at Austin, TX, for example where housing prices have increased over 30 percent in the last few years. And here is what Zillow currently reports about Minnesota:

The median home value in Minnesota is $225,300. Minnesota home values have gone up 8.0% over the past year and Zillow predicts they will rise 7.9% within the next year. The median list price per square foot in Minnesota is $177. The median price of homes currently listed in Minnesota is $265,000 while the median price of homes that sold is $237,300. The median rent price in Minnesota is $1,550.

Rent vs. Own: Compounding Benefits

When you buy, your monthly payment reduces the amount owed on your appreciating asset. You win both ways as your house becomes more valuable but you owe less. Your equity increases because you are paying down the loan, and because prices are rising. Furthermore, as you pay down your loan, the amount attributed to equity goes up, and the amount paid toward interest goes down. Get into that 10th ownership year and you may be surprised at the equity you have built, even if the housing market is not robust.

The Contract for Deed Crew Can Help

We can’t put money into your checking account (you can learn a ton of skills online to help you do that; example: how to start couponing). But remember, we can help you get a house.  That said, we like traditional financing and congratulate you if you have been approved. If not, let’s talk about what C4D can do for you. We are MN contract for deed experts, and as we have told you previously, we many times say yes when your bank has said no. Go here for more info.

Homebuying After Divorce

Buying A House After Divorce: Yes! It’s Possible.

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Buying a house after divorce is a huge issue for many people across the country. To start, divorce can cost you a fortune. What else you ask?

Well, let’s face it, divorce is rarely stress free, and your recent interaction with the family court system is probably something you never want to go near again. You’ve spent time away from work, agonized about visitation rights, thought endlessly about money making ideas and paid some hefty legal bills, but the fun is just beginning because your spouse is occupying the residence and now you need to buy another one.

Buying A House After Divorce

Why Is That a Problem?

If your name is on the deed and the mortgage, even though you may not be living in the house, you are 100 percent responsible for that monthly payment according to potential mortgage lenders. If your ex has been making that payment, lenders will want proof that he or she has been able to handle the obligation for the past 12 months, and will ask for documentation. Yep—more bank statements, ACH confirmations and cancelled checks for you to dig up.

The bank may even want to see proof of your ex’s income to make sure that you are not making house payments in her name. Then they will probably ask for information about where you are living even if you are renting. Who is paying for that? Can you produce the proper documentation that shows you can handle your monthly rent without assistance?

Co-Sign Home Loan

Even if you can definitively prove that your ex has successfully made 12 months of payments, you could still be denied because you are, in effect, still a co-signer on the mortgage. This can also lead to MN bad credit as your credit score could be impacted.

Alimony and Child Support

Child Support

Not your favorite words, we know, and any court-ordered payment amounts will count against your income and injure your debt-to-income ratios. A $1500 monthly payment can cause outright rejection, or at the least, may cause you to qualify for a much smaller loan amount.

Have You Ever Been Sued?

If you were involved in a divorce you probably were, and must answer this question affirmatively. The answer will need lengthy explanation and can open the door for other queries from the lender.

Divorce Decree

Of course, the lender is going to want to see your fully executed decree; they are not going to take your word for anything.

Joint Accounts

Student loans, credit cards, autos, furniture purchases and more can be considered joint accounts. Even if your ex splits these with you, you will need to get your name off of the ones he or she is now responsible for. Again, if you name is on it, the lender will assume you are responsible for the debt, and you may qualify for nothing.

Joint Bank Account

The Answer: Buying A House After Divorce

When traditional financing brings you roadblocks instead of the key to a new home, there can be answers, and MN contract for deed can be an excellent way to become a homeowner—even if you are in the midst of a divorce. Our experts at C4D, a local Minnesota company, have, over the years, worked out a method to make you a homeowner.

Using MN contract for deed, a legitimate and recognized alternative financing method, we can look past things that traditional lenders can’t. Yes, we still want income proof, you have to have a job, and have to be able to afford your payment. We, however, view these requirements differently than traditional lenders, and we helped many recently divorced persons again purchase homes.

Contact us today to find out the details!

Self Employed Home Loan

Getting A Mortgage Loan If You’re Self Employed

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The age-old self employed mortgage loan issue. You took the plunge and started your own business away from your family and you’re having success. Awesome, right!? Now you are no longer relying on a W2, so there are some hugely important things you MUST know when it’s time to apply for a mortgage.

It was undoubtedly a serious challenge to drive your business from inception to true profitability. You had to find your location—or build your virtual store—find vendors, get permits and licenses, hire your first employees, consult with lawyers and accountants, and then find and retain customers. Now that you are successful and you’re finally feeling better about surviving, why is it so difficult to get a home loan?

Banks Don’t Like You

self employed mortgage loan

Many entrepreneurs report that the initial visit to the mortgage lender’s office isn’t pleasant. Bank officers often cast a wary eye toward small business owners because:

  • Stated income can be difficult to prove.
  • Accounting records may be incomplete.
  • Bankers think small business owners can be riskier borrowers.
  • There is a perception that owner/operators conceal income and avoid taxes.
  • Business owners commonly sign personally for business debt.

But does that mean you’ll never own a home?

Let’s take a look at this scenario: let’s say you’re a small business owner in Denver, Colorado. You might think that you’re stuck renting that one-bedroom Denver apartment forever, since you’re unable to prove income to the bank. So, what are the issues?

Income Issues with Self Employed Mortgage Loan

If you work for someone else, your paycheck goes toward your rent or house payment, car payments, various insurance obligations, repairs, maintenance, etc. If you own a business, however, your business may provide you with a car, a computer, health insurance, life insurance, meals, travel and more.

Self Employed Home Loan

If you make $75,000 per year, for example, you can take your pay stubs to the bank and that will prove your gross income. If your business can produce $75,000 in gross profits, savvy business owners have their business make car and insurance payments directly, and by the time all owner benefits have been deducted, the business may show a much smaller profit, and the owner may legitimately report a smaller income amount. 

Explaining to the banker that your $20,000 income is really $75,000 because of all the benefits your business provides you is not always met with quick acceptance. 

Cold Hard Cash — Good For Self Employed Mortgage Loans?

Let’s face it, although some businesses are becoming cashless, there are usually opportunities for business owners to pocket cash without reporting it as income (make sure you know the rules). Unlikely that the bank will consider any unreported income as valid for the purposes of obtaining a loan.

Cash Money for Home Loan

Lots of Business Debt

While many think that entrepreneurs can obtain business loans without having to sign personally, this is usually not the case, and small business owners many times will have signed for substantial company loans. Banks typically treat these as personal obligations and can count them negatively when figuring debt to income ratios.

What Can You Do?

As you know, we agree that traditional mortgage financing is preferable, but when circumstances cause that route to be difficult, consider giving is a call at C4D. We are MN contract for deed experts and we understand that owning a small business should not be an obstacle to home ownership. We look beyond raw numbers to truly understand your financial situation, and we can work with a variety of circumstances. As our satisfied clients tell us, “Wow, you were able to help us when the bank said no!”

Buying A House Without A Realtor Is A Bad Idea

Buying A House Without A Realtor: Terrible Idea?

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Buying a house without a realtor. For some reason, this just doesn’t sound like one of your best ideas yet.

You may be the kind of person that wants to handle everything without assistance from brokers or agents. When you make a major purchase you always want to talk to the supervisor or store owner, and you may not like dealing with middlemen. When you are looking to buy a MN home, however, you really need to consider the use of a qualified Realtor, and here are some reasons why:

You May Have a Harder Time Finding Properties

Realtors have MLS access but you can’t just login online to view it. While Trulia, Redfin, and similar sites will eventually pick up MLS listings, there is nothing like going to the source and being able to view up-to-the-minute listed properties that are for sale. Your local real estate agent may also have a network where he or she is made quickly aware of any “coming soon” properties, and your Realtor can find out sooner if a house under contract may again become available because of failed financing or other issues. In addition, other Realtors may be more apt to divulge information to another Realtor than to you.

Buying A House and Knowing The Price

Area Knowledge

Especially if you are new to a city, you need a Realtor’s intrinsic neighborhood knowledge. Many of us know someone that recently moved to a city and chose a certain neighborhood only to realize a year later that they would have liked to have located in a different part of town.  A good Realtor can help guide you to the neighborhoods that match your lifestyle.

The Offer (When Buying A House Without A Realtor)

Do you offer 97 percent of the purchase price? 95 percent? Are you in a bidding war? Should you offer more than the asking price? Should you ask for paid closing costs? What does the inspection period mean? Do you realize, that in some states, you can lose your earnest money deposit even if your financing is not approved? Realtors are experts, and will guide you through the offer process. Take a look a standard offer to purchase form, and ask yourself if you really know how to fill in all of the blanks properly. A Realtor will have had lots of experience with contingencies, and will help you understand all fees involved in a purchase contract.

Buying A House Without A Realtor

Be Realistic About the Deal

While you may think it’s a good idea to haggle about the final $1000 of a $350,000 deal, your Realtor may tell you otherwise. Realtors have a good sense of what will be accepted and more, importantly, what may aggravate a seller. When you deal with sellers without a Realtor, you may be working blind.

Financing Issues When Buying Without A Realtor

If you have MN bad credit, or are having trouble buying a home because of massive student loan debt, a good Realtor can steer you to non-traditional financing sources. We at C4D are experts in MN contract for deed sales, and many Realtors come to us with deals that have been difficult to finance elsewhere. While we all know that traditional mortgage financing is preferable, many times we can help get you into your dream home when others have not been successful.

Actionable Tips For First Time Home Buyers in 2018

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Whew! It seems everything has accelerated in the past couple of years. You graduated from college, got married, landed a nice job, and now there is a child on the way. Your apartment in Chicago on the 32nd floor is just not going to do it anymore, so it’ s time to think about purchasing your first home. Where to even start? Well, how about starting right here. Here are some great tips for first time home buyers.

Tips for First Time Home Buyers: Your Realtor

First Time Homebuyer Broker

Establish a relationship with a buyer’s agent. You’re looking to your agent for tips for first time home buyers, so after you explain your needs and price range, this person will find properties for you to view, make the appointments, keep a record of what you have seen, negotiate deals and write up offers to purchase. And guess what, there is no cost to you, since the seller pays all commission expenses!

Next Tip: Clean Up Your Credit History

Bad MN credit can be a problem as it can injure your ability to get good bank financing at the lowest possible rate. Go to Credit Karma, look at your credit score, view your credit report, and dispute any errors you find.

Tip #3: Pay Down Those Cards

As any Minnesota mortgage lender will tell you, if you have a high credit utilization rate, your projected monthly mortgage payment will be higher. Savvy first time home buyers plan well in advance to reduce credit card balances.

Tip #4: Work on Those Student Loans

As Student Loan Hero tells us:

“Spending a few more years getting your student loans or other debts paid down could mean that you would qualify for a lower interest rate or a higher loan amount. Once you have a better credit history and more secure income history, you will have more options available when you finally are ready to take that leap into homeownership.”

Become aware of the many repayment options available to MN student loan holders, and strengthen your monthly cash flow.

Tips for First Time Home Buyers - Student Loans

First Time Home Buyer Tip #5: Save for that Down Payment

You will be asked to show that you have anywhere from three to ten percent or more down-payment money available. While some lenders allow you to accept this money as a gift from your relatives, others like to see that you have saved it. Few lenders, however, will accept a borrowed down payment. You can also look into something like a home improvement loan as well.

Tip #6: Be Realistic and Discerning

Our friends at U.S. News tell us:

“When you look at houses, focus on the right things. Don’t be distracted by the owner’s odd décor, paint colors, dirty carpet or anything that is easy to change. Granite countertops and stainless-steel appliances are easy to add later. You can’t easily add another bedroom, a better location or a more functional floor plan.”

Tip #7: Be Serious and Ready to Go

Don’t casually look for houses without having a plan to move if you find your dream house. You could find a gem on day one, but be stuck for six months in an apartment lease. Great opportunities may present themselves fleetingly, and you need to be ready. But be prepared to take some time to shop around for home insurance — don’t forget about this!

Tip #8: Check Out the Neighborhood at Different Times of Day

That nice, quiet three-bedroom dream home may turn out to be a nightmare if you only saw it on a quiet Sunday afternoon. Check traffic patterns and activity at different times before you make an offer.

Tip #9: Talk to the Neighbors

Homebuying Neighbors

No one can give you a more realistic view of the area than someone that has lived there for years. Knock on doors, talk to people you see, and frankly ask them if the neighborhood is a good place to live. You’d be surprised at the genuine answers you will receive.

Be sure you check in on the home and neighborhood safety as well. You don’t want to become just “another statistic.”

Final First Time Home Buyer Tip: Don’t Give Up

If you have found your dream home, but have been turned down for conventional financing, there are alternatives. C4D, our company that specializes in helping those with bad credit in Minnesota, may be able to help you find your path to home ownership through a contract for deed. Go here to find out more about this legitimate and widely used method that can get you into a home even if you have credit issues.

And if you’re looking for even more tips for first time home buyers, you can check out some more great information from our friends over at Bankrate. They have a fantastic blog post which shares many more tips for first time home buyers. You can check it out here.

Tips to Become the Top Realtor in Your Area in 2018

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How to be successful in real estate? This is an extremely common question in the industry. Many real estate pros watch glamorous TV shows like Million Dollar Listing New York, House Hunters, Designed to Sell and many more. These same people would love to achieve the amount of success as many of the real estate superstars on TV. So what does it take? Is it luck? Right place and right time?

Well, there’s lots of competition in the Minnesota and Minneapolis real estate space but by following some proven business practices, you can rise to the top. From client/customer service to quality networking, let’s look at the things that can make you a top MN realtor.

How To Become Successful In Real Estate

The “t” word—transparency—has almost become a cliché, but beginning with the first Minnesota Realtor client meeting you need to be honest and forthright about expectations and costs. If the stats show that it may take 47 days to move a client’s property, don’t give then the impression that you can sell it in a week, unless, of course, you really can.

New sellers may not fully understand the commission process, and you should take some time to explain it. There may be confusion about how you share your commission and who you share it with. With median housing prices rising, the standard six percent commission can easily reach $20,000 or more, and if you have to split your commission with another broker and/or you company, your clients should understand that you don’t pocket the entire amount.

Look Like a Professional

While business casual may be sufficient in your area, showing up at a client meeting in cutoffs and a t-shirt is probably not the way to go. Then again, some will advise to dress how your clients dress. Either way, you know if you have a huge prospecting meeting that you should probably throw on your business suit and dress as professionally as possible. Projecting a professional image is critically important for real estate professionals.

Return Calls and Emails Promptly

As you undoubtedly understand, great Realtors are always working, and their clients want immediate answers. When there is a pending offer, clients on either side can get extremely hyper, and they probably won’t adhere to “normal business hours.” Have a thorough voicemail message that explains exactly when your clients can expect a return call:

“Hi – it’s Maryann. You have reached my voicemail because I’m speaking with another client or in a meeting. If you are calling before 7:00 p.m., I will return your call today. Otherwise, expect a call from me tomorrow. Please do not hesitate to text as I may be able to respond quicker that way. Also, feel free to email me at maryann@gmail.com. Regardless, I guarantee a response within 18 hours.”

This may seem basic and academic but it’s very important to do correctly.

Real Estate & Digital Media

You need a website, but a bad site with a terrible user experience and functionality may be worse than having none at all. As commonplaces.com says,

“Your website is no longer a URL at which you park the existence of your online business. It’s often the first and most powerful presentation of your business – who you are as a company, what you offer, and why your products and services are better than all the rest.”

Make sure that you find a quality developer, especially one that has experience with Realtor websites. And if you need more advice on the big picture of real estate digital media, below is a video from Million Dollar Listing star Ryan Serhant and social media influencer Gary Vaynerchuk on the state of real estate in 2018.

Social Media Presence & Brand Building

Gone are the days when a home buyer just opens up a newspaper, looks for properties, calls an agent from a phonebook and makes an offer. Buyers today are looking online more than ever. From review websites like Yelp to social media profiles like Twitter, Facebook, Instagram, LinkedIn and YouTube it is imperative that Realtors use social media to communicate with potential buyers. For example, if you worked at PlateJoy, you’d want positive platejoy reviews, right? The same goes for Realtors.

Digital Media For Real Estate

Some tips include:

  • Posting photos on Instagram to generate leads
  • Creating a content presence on Facebook
  • Tweeting to promote listings to your audience
  • Guest posting to collaborate with other local real estate pros
  • Sharing your content on LinkedIn with your industry connections
  • Reply to everyone and create a sense of community

Monthly Newsletter

It’s critically important for clients and potential clients to know how to find you. Start compiling an email list from day one, and send out a carefully crafted and informational newsletter. Again, you may think that this is Realtor 101, but you might be surprised at the number of your colleagues that fail to do this, start and then stop, or send out junk. A great monthly blog sent out in your newsletter will keep your name fresh.

Monthly Real Estate Newsletter

How To Be Successful In Real Estate: Financing

Of course, you know the deal isn’t done until funds have been wired. Savvy Realtors immediately begin building their financing network, and they know who will work hard to get marginal MN bad credit loans approved. You need to assemble your financing team, and have a go-to lender available for each particular situation, and here’s where we can help. We at C4D are MN contract for deed specialists, and every day we work with clients to make the home ownership dreams a reality. If you have difficult or even rejected financing deals, let us take a look and see if we can help. Please contact us for further information.

The American Dream: Immigrant Homeownership

 1000 500 Sam Radbil
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The housing market needs immigrants, and the gap between native-born and immigrant homeowners has been shrinking for several years. But housing for immigrants is a tough subject to navigate. And the biggest question is … is it possible for more immigrants to become homeowners in 2018?

There are many ways to enter the U.S. legally. For example, student visas are relatively easy to get if you are enrolled in a US educational institution. Since foreign tuition rates may be higher, many universities recruit foreign students and will actually help them receive visas.

If you are a non- US citizen starting a business and you plan to invest money in it and therefore create American jobs, there are visas available. You can get a visitor’s visa–for vacation purposes–or you can apply for an immigrant visa. You may be able to get a green card that allows you to work in the US. If you do remain in this country after your visa has expired, however, you become undocumented, and that can lead to difficulties.

I’m Staying Here Anyway

Whether you have a green card, a student visa, a business or professional visa, or whether you may be here illegally, you may decide that you want to buy a house. Maybe you’re tired of renting, are pretty sure that you are not going to have legal trouble if you stay, and like most Americans, you want to build future equity. You may have read that even financially secure US citizens may have trouble getting mortgages. If that’s the case, should you as a non-US citizen even consider buying a house, and furthermore, can you even do it?

Yes! It Can Be Done

President Trump’s failed university offered this advice to its students in a 2010 blog brought to us by The Weekly Standard.

“First of all, you do not have to have a social security number to buy or sell a home in the U.S. Some mortgage lenders require one; however, there is not a law requiring one. You do need to have some form of government issued identification, even if it is from another country (such as a passport or driver’s license).

Those without a social security number will need an ITIN (individual taxpayer identification number) number which is issued by the IRS to foreign nationals for paying taxes on money they earn in the U.S. (The author) noted that while it is difficult for illegal immigrants to get mortgage loans, several banks have programs designed for those immigrants. ‘Lastly, it is not illegal to own real estate in the U.S. even if one is in the country illegally,’ she wrote. ‘If getting a mortgage is not an option, one can always pay cash.’”

Housing for Immigrants

Problems That Can Arise If You Don’t Have the Cash

While a cash purchase may be completely legal, obtaining a mortgage–if you don’t have the cash–can be difficult for the following reasons:

  • Hard to prove foreign income.
  • Banks may not believe your foreign accountant.
  • Lenders may fear that you will be deported.
  • Thin credit or no credit history.
  • Bad credit MN.
  • No ITIN or SSN.
  • Low credit score.
  • Other legal issues.
  • Massive student loan debt.

Immigrant Housing No Cash

Housing for Immigrants: What Now?

So, you’re here, you’ve found a great home, you have a job, you can afford a modest mortgage payment but you just can’t convince a lender to take that risk and allow you to become a homeowner. Now is the time to think non-traditional financing. With a contract for deed, you can pay for your home on installments, and after you have completed all of your payments, you will own the property. These transactions can be accomplished by two willing parties without concern of bank denial. There are even reputable Minnesota lenders like C4D that can help you do this.

Rent-To-Own

Contract for deed’s cousin, rent-to-own might also be a viable option. NOLO says, “A rent-to-own agreement is made up of two agreements: a standard lease agreement, and an option to purchase; these may be incorporated in one document or two separate documents.” In this scenario, a portion of your rent goes toward a down-payment that you can use to obtain future financing.

Rent To Own for Immigrants

Exotic and Risky?

Don’t let a conservative banker derail your plans for home ownership. Of course, alternative home financing plans can be costlier and have some inherent risks. Didn’t you take a risk, however, when you came to the US in the first place?

Just Do It

As we have shown, they are ways to purchase a home even if you’re not a US citizen. Make sure you understand all of the options available to you and start with a bank or mortgage broker, and if that doesn’t work, consider MN contract for deed or rent to own, even if you have bad credit or immigration issues.

For more immigrant housing resources, view the links below:

Should I Buy A House?

Are You (Actually) Ready To Buy A House?

 1000 500 Sam Radbil
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Should I buy a house? This is the question that almost every 20- or 30-year-old must answer at some point in time. But are you getting terrible advice from parents and friends? Or do they actually know what they’re talking about? But is buying what’s best for you individually? There are so many questions to answer.

And to add to the endless questions, your parents did it, your friends and co-workers are doing it, everyone says it’s the American dream, but buying a home is a major obligation, and while there are great reasons for joining the club, there are equally important reasons for waiting.

Let’s first look at the top five reasons you should NOT buy your first home just yet:

Should I Buy A House?

Why You Should NOT Buy

  1. Everyone is telling you to do it

Just because you just got married, graduated from college, got a great job or turned 30 doesn’t mean that you automatically need to buy a home. Individual circumstances are always different, and don’t take the home ownership path just because someone else tells you it’s time to do it.

  1. You got a new job and must move

It can be stressful to suddenly find out that you have to move because of employment changes. Still, that’s not a good reason to think you have to immediately re-create your present living circumstances by buying a house. Those that quickly buy houses in an unfamiliar city sometimes find out that if they would have waited, they would have chosen a different neighborhood. Furthermore, if you think you may be transferred again within the next five years, renting may be a better option.

  1. You got pre-qualified for a mortgage

Don’t borrow money just because you can. If you qualify for a mortgage today and are financially prudent, you will probably qualify in the future without much difficulty. While mortgage qualification is paramount, it should never be the only reason to purchase a home.

  1. You are loaded with debt

 Millennial Debt

*Check out how many Millennials are NOT buying homes because of debt!

If you are just getting by and carry large credit card balances, high-payment car loans and a lot of student loan debt, you may want to make sure that you can afford a mortgage payment + taxes + insurance + maintenance + furnishings. If you can’t, then wait until you can.

  1. You found a fixer-upper!

Too much HGTV may be bad for your financial health. While it’s fun to watch the Property Brothers fight through yet another renovation, reality TV sometimes skips a lot of steps and if find out you need a supporting beam and don’t have $10,000 to pay for the work, you might have been better off renting.

OK, so that takes care of the reasons not to but a home; now look at these reasons to jump into home ownership:

Why You Should Buy

Buying A Home

  1. You are finally ready

If you have saved a downpayment, your overall debt situation is good, you don’t like giving the landlord money every month with no return for you, and you really like cutting the grass, you might be ready to buy a home.

  1. You want to build equity

Go to bankrate.com and calculate an amortization schedule. Even though your equity may be slow to build, a portion of every mortgage payment will go toward your principal balance. A 30 year mortgage means just that—after 30 years you will own your home and your mortgage will be gone.

  1. You’re in control at work

You know when you have job security and also when things may be tenuous. If the future looks great, you have one less thing to worry about, and it may be the right time to become a homeowner.

  1. Mortgage interest deduction

Even though the latest tax bill dinged the mortgage interest deduction for the rich and famous, you can still benefit if you itemize deductions. Remember however, that the standard deduction has been significantly increased, so talk to your accountant about this one. Ask about property tax deductions also.

  1. We fear change

Home ownership takes a big “what if” out of the picture. As long as you make your payments, you can stay in your home. If you rent, you could be facing a different situation at lease-end, or if, for example, your apartment building is sold. Homeownership brings needed stability as it’s great knowing that you are in control.

But Wait — You Have Options!

Remember, bank mortgages aren’t the only way to finance homes. There are rent-to-own plans and better yet, MN contract for deed situations available. Alternative and non-traditional financing are two great paths to homeownership, so if you do have bad credit, large student loan balances, judgments, levies or just general bad credit, find a company like C4D that can help you.