Thursday, November 24, 2016

Roxy's Real Estate News Blog: HOUSE FLIPPING ON THE RISE

Roxy's Real Estate News Blog: HOUSE FLIPPING ON THE RISE: Flipping is such a popular craze. Not sure about you but I am a regular on HDTV and I love Chip and Joanna Gains. This type of estate inve...


Flipping is such a popular craze. Not sure about you but I am a regular on HDTV and I love Chip and Joanna Gains. This type of estate investing strategy is not for everyone but if you are thinking about diving into this flipping home strategy you are not alone. 

The flipping market has been busy with some 51,434-single family homes and condos flipped in the second quarter of 2016, this is a six-year high. With an average $60K profit, it’s no wonder this strategy is HOT!

I have some points of interest you might want to consider if you have considered house flipping.

Most flipper investors or at least about 71% are using all cash to fund their deals. Most are using funds from investors that invest in people who buy houses to flip and they partner with them for a predetermined percentage of the profits plus interest on their funds. That’s one way, another is with a short-term bridge loan, this could be for a large amount to cover several properties and as each home is sold they are removed as security from the original bridge loan. There are many ways to fund these projects. I see many lenders wanting to get involved providing new programs with the flipping industry in mind. So don't stress about the money, it's available.

The most important thing is YOU!
This endeavor is not for everyone. You need to invest in yourself and get yourself educated before you just dive in, because this can be very risking if you don’t know what you are doing. I am not saying you need to go spend thousands of dollars on one of those Gurus that’s been flipping houses successfully for years. But instead go out there and buy real estate investing books, join some forum groups and talk to like-minded people. BiggerPockets is one of the best I know of and is very useful for many real estate investors for education, networking and deal-
making and will prove to be a great resource.

Do research on this industry and learn as much as you can. Learn marketing for leads and find out where the best areas for distressed homes are located, research county records for vacant homes that the city or county has in their inventory. Talk to Realtors! DO YOUR RESEARCH. Hopefully you will then know when you will make your first move and get started.  BE careful, most newbies realize very quickly this is not easy money and is a lot of hard work.

I do know a few flippers, I have helped them on the money side, they do love it and are making money. They started with one house and now are working several.  I know you can too, just be smart, get educated, start small, but do get started if this is what you want to do. Procrastination is your worse enemy for any kind of success. Get in the right mindset to succeed in your house flipping dream and get busy!

I found a couple article to help you start your research … go ahead and check them out!
And as my 10-year-old grandson claims you can learn just about anything on YouTube! So, don’t forget YouTube as a research source because he is correct.

Please leave your comments and questions, they are appreciated and encouraged. 
Join my blog on the right directly from your FB account and you will see my blog post first. 
Thank you for stopping by, have a great day! 

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Thursday, November 10, 2016

Thinking About Becoming an Investor of Multifamily-Housing Rental Property

NOW is an excellent time for becoming an investor of multifamily rental property. 
We are seeing a 6-year surge in apartment rentals. Why you say? Millennial renters, although we realized an increase in homeownership in 2016’s first two quarters we are seeing more and more households opting to rent instead of buying. There are many reason (see my last blog post) but overall this increasing market is looking more appealing to investor than ever before.

There are some HOT markets for buying multifamily units these are the top 5 in the nation.
  • Orlando, FL
  • Phoenix, AZ
  • Atlanta, GA
  • Fort Lauderdale, FL
  • Las Vegas, NV
If you are selling your multifamily units, you will do well if your property is in the Hottest selling market in the nation, these are the top 5 in the nation. 
  • New York City, NY
  • Pittsburg, PA
  • San Francisco, CA
  • Miami, FL
  • Nashville, TN
It is very important to do your due diligence and research the area and properties you are considering. Professional help from a Realtor can be useful but as an investor you don’t want to rely completely on anyone but yourself.

Location, Location, Location is always going to be the most important factor of any property you buy.

There are several tips about finding the best location.
  •        Finding the best property in the best neighborhood, or the worse property in the best neighborhood, because rehabbing a rundown property can make for a great investment if the location is in a well sought out area.
  •        Check with the Police or go to the library to see about the crime rate in the area before you buy. No one wants to rent in a high crime area.
  •        Check the schools and find out their state racking. Are they within walking distance from the property you are looking to buy.
  •        Parking is another very important factor, does your potential property have tenant parking for one or two vehicles or is it street parking only.
  •        You will need to know what the average rents in the neighborhood are producing. 
Investing in multi-family property can be very lucrative, but they can also be financially draining. Do your homework, find good professionals to work with you, a Realtor and a good loan broker, I am available if you need either.  Most investments properties require more money down then regular residential loans.
You will want to learn about managing a rental property and know the tenant/landlord laws in your state. You will need to decide if you will manage or you plan to hire a managing company to run your properties.

Get the facts and know what you are doing BEFORE you invest!

Here are some websites and organizations that can provide information.

Thank you for visiting my blog, please leave your comment and questions! Join my blog on the right to receive a notice when I have a new post.

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926

Tuesday, November 8, 2016

Student Loan Debt is Primary Reason for Putting off Homeownership

Many older millennials are carrying a debt of $70,000 to $100,000 in student loans. But each generation is effected with student debt. More then half of each generation of non-owners are delaying their homeownership plans because of student debt.

The added student loan debt is cutting into the ability to qualify for a home loan as well as making it difficult to save for a down payment. This burden is also being passed onto parents with adult children unable to leave home. Parents are also taking on student loan debt to minimize their children’s debts.

Student debt is a national issue and a common problem with 70% of college students borrowing money for college. The average graduate completes school owing more then 40,000 with payment over $300 per month. This effects the ability and buying power for car loans, home loans and is driving the use of credit cards up and is effecting our nations economy.  

Hopefully in the next year we will find a way to relieve the need for large student debt. I heard some great alternative ways to pay it back may be in the works. There are also ways for student loans to be would be a great relieve if future employers would help where they can. 

Don't be the ONE
As a mortgage loan professional, I strongly recommend if you have student debt to keep on top of it, communication with your lender is critical. Having multiple payments due on several loans can be hard to keep track of thus causing you to miss or pay them late adversely affecting your credit. I recommend that you consolidate all your loans into one loan for easier management and lower payment overall. 
I see more people with credit issue due to student debt than any other reason. It’s crazy hard to get them cleared up and back on track. So please don’t ignore and put off dealing with your student loans.

When you are ready to purchase a home, or would like to see where you stand, give me a call or send me an email. We can work together to get you prepared to be in position to buy!
I believe in many cases if someone is thinking about buying a home and have student loan debt they are just discouraged and need guidance on how to make it work. More education about home buying and preparedness is needed. This education is available FREE! Just call me

For more information, the following paper is availabl

Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C.
Click here to review

Your comments and questions are welcomed and encouraged, thank you for visiting my blog

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926

Saturday, November 5, 2016

USDA Loans MORE Affordable and BEST 100% Financing in the Marketplace

USDA loans are a GREAT way for anyone to purchase a home,
but especially first time homebuyers when coming up with a down payment is next to impossible for many.
Just last month USDA lowered the USDA Guarantee fee from 2.75% to 1% and the annual fee from .50% to .35% this incredible decrease will make it possible for even more buyers to qualify with lower monthly payments.
Ok so what is a USDA loan anyway? It is a US Department of Agriculture backed loan for suburban and rural home buyers, it’s a 100%... that’s right NO money down mortgage loan and part of the Rural Development Guaranteed Housing Loan Program. With reduce mortgage insurance premiums and lower then market interest rates.
I’ve been originating mortgage loans for over 20 years and this loan is by far the best, even better then FHA, that require 3.5% down payment and upfront fees of 1.75% and an annual fee of .85 for loans above 95%LTV.
There are income limits with a USDA home loan, tied to the area’s median income levels and is defined by those earning up to 115% of the county in which the property is located. Most people will find they fall within these income limitations.
The property must be eligible as well but you can easily check for income and property eligibility by clicking on this link.
USDA Property and Income Eligibility

In most cases depending on your area, owning a home and having a USDA loan could be cheaper then renting. 

If you have questions about either USDA or FHA loans give me a call or shoot me an email.
Ready to get pre-approved, let's get started. 

Your comments and questions are always welcomed and encourage. 
Thank you for visiting my blog.

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926