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Last Updated on February 25, 2022 by Mark Ferguson

Finding a great rental property can be tough. In many markets, prices are increasing and being able to make money on a single-family house or multifamily building is difficult. One option is to buy the cheapest homes you can in your area and make them a rental. You can also buy a townhouse or condo and turn into a rental property since they are typically less expensive than a single-family detached home.

I think a townhouse or condo can be great investments, but you must look at the numbers closely. There are many costs associated with condos like HOA fees. The appreciation also may not be as much on condos and there are some very scary issues that can cause a great condo or townhouse investment to become a nightmare.

Why are condos and townhouses so much cheaper than houses?

Before I get into the pros and cons of condo and townhouse investments, I want to be clear on what a townhouse or condo is. A condo is a unit within a large complex of apartments or other condos. There may be units beside you, above or below you. You rarely have any yard except a shared space with other units.

A townhouse might have a small yard and may have neighbors beside the unit, but not above or below. Townhouses are typically worth more than condos because they have less connected neighbors and some land.

Both condos and townhouses are worth less than a single-family home that is otherwise similar.

How does an HOA work on a townhouse or condo?

Almost every townhouse and condo will have an HOA. The HOA takes care of the shared land in the complex and most HOAs take care of the exterior maintenance and landscaping. Many HOAs also pay for the water on a condo or townhouse and they may provide common amenities like a swimming pool, clubhouse or tennis courts. Some single-family neighborhoods have detached homes that are in an HOA as well. The HOA fees are usually much higher on a condo or townhouse because the HOA takes care of many more things. Here is a list of many things an HOA takes care of on a single-family detached home, patio home, and a condo or townhouse.

——————-Condo/Townhouse                 Patio Home               Single-Family

Common Amen.            Yes                                   Yes                           Yes

Landscaping                  Yes                                   Yes                            No

Water                              Yes                                   No                             No

Exterior maintenance  Yes                                   No                             No

Exterior Insurance        Yes                                  No                             No

Clubhouse/pool             Yes                                  Maybe                      Maybe

Trash/snow removal     Yes                                 Maybe                      No

If you are wondering what a patio home is, that is usually a single-family detached home that has an HOA that maintains the lawn. The condo and townhouses have much more involved HOAs, which makes them much more expensive.

In my area in Northern Colorado, I see HOA fees for most single-family detached homes $400 or less a year (if they have an HOA). HOAs on condos or townhouses can are usually at least $100 a month and in some cases $400 a month. HOA fees can be even higher in larger cities with complexes that have security and many more amenities. Only one of my rental properties has an HOA and it is $300 a year.

Is it a bad thing to have an HOA on a rental property?

I have no problem with having an HOA on one of my rentals. The HOA takes care of the common amenities in the neighborhood and I have never had a problem with them. The only other job of this HOA is to make sure all the homes in the neighborhood are in compliance with the rules and regulations of the HOA. Many HOAs don’t allow work trucks to be parked outside, or excessive junk to be stored in the yard. For many people, this is a good thing and for others a bad thing. As a landlord, I think of it as another set of eyes on the property and I think it is a good thing to know if the tenants have junk everywhere or are not mowing the yard.

I don’t think having a small HOA with few responsibilities is a bad thing. A larger HOA will provide many benefits as well. Even though a larger HOA will be more expensive, it will lower many costs for a landlord. The HOA will pay for exterior insurance and maintenance, which will reduce the landlord’s expenses. The HOA will handle yard maintenance and snow removal, which can lower the landlord’s expenses as well. In my case, I invest in single-family homes and I have the tenants take care of the lawn and pay all utilities themselves so that does not save me much money.

HOA special assessments

The problem with a large HOA is they can create special assessments if they need more money for any major repairs or financial problems. I know of a couple of landlords who had their HOA fees increase greatly in a one-year span because the HOA had to repaint the exterior of the entire complex. The HOA fees went from just over $100 a month to $200 a month for every condo in the complex. Another HOA imposed a $30,000 special assessment on every single condo in a complex to pay for improvements. This particular landlord was planning on flipping the condo and all his profit disappeared with this assessment.

The HOA cannot impose a special assessment or raise the HOA fees without agreement from the HOA members, but in many cases, the members don’t show up to HOA meetings to oppose the changes. If you are buying a condo or a townhouse that has a fixed HOA fee, that does not mean it cannot be raised or a special assessment is levied upon the property.

Will the HOA allow rental properties?

Another problem that can come up with HOAs and rental properties is that some HOAs may not allow rental properties! My office recently had a home listed that was in an HOA and the HOA decided they would no longer allow rentals. The property was used as a rental property so the owners decided to sell it. Then the tenants decided to stop paying due to covid and it was a nightmare for the owners.

Be aware that HOAs can decide to ban rentals although it is rare.

Will condos or townhouses appreciate as much as detached homes?

Another factor to consider when buying a condo or a townhouse is the value of the property. Condos and townhouses are cheaper than detached homes because they are cheaper to build and demand is higher for single-family homes. You also own more land and have lower HOA fees with a single-family house. When you have an HOA fee that also reduces how much a borrower can qualify for when they get a loan. Usually, the condos and townhouses with the highest HOA fees will be worth less than similar condos or townhouses with lower HOA fees, because more buyers can afford them. A $100/month HOA fee could reduce the amount a buyer can qualify for by as much as $20,000.

I don’t invest for appreciation, I invest for cash flow when I buy rental properties. That does not mean I do not consider possible appreciation or depreciation on the properties I buy. There are some people who prefer a condo to a detached home, but most people want a detached house. In my area condos are the first to start losing value in a down market and the last to increase in value in an appreciating market. While condos and townhouses can appreciate and often do, single-family detached homes tend to appreciate more. It is the land that is causing the appreciation and detached homes have much more valuable land.

How can FHA rules affect condo prices?

FHA will loan on condos and townhouses, but they have very strict rules. FHA will not allow a buyer to use an FHA loan to purchase a condo in a complex if there are too many investors in that complex. If there are more than 50 percent investors in a particular complex FHA won’t lend to anyone in that complex. FHA is a very popular loan and it can greatly decrease values in a complex if the units cannot be sold using FHA. Here are some more requirements for FHA loans being used on condos. Even though conventional loans do not have to abide by FHA rules, some banks will also have guidelines similar to FHA to lend on a condo.

Is it smart to buy a condo or townhouse for a rental property?

As you can see there are many factors you must consider when investing in a condo or a townhouse. The number one factor should be cash flow and how much money you will make. You have to remember to factor in the HOA fees and the possibility that they may increase in the future. If you buy a condo in a complex that is older and will need work soon, you may see a huge increase in HOA fees or a special assessment. If many investors decide to buy units in a complex it could greatly lower the value of every unit due to FHA rules and don’t expect as much appreciation.

I think you can make money with condos, but given similar returns between a condo or townhouse and a single-family detached home, I will take the detached home every time.

My book, Build a Rental Property Empire, goes over my personal rental property strategy in depth. It covers how to find deals, finance rentals, manage them, and much more! It is available as a paperback and ebook on Amazon or as an audiobook on Audible.

Build a Rental Property Empire

Categories Rental Properties

Source: investfourmore.com

Apache is functioning normally

By Peter Anderson 2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited December 4, 2017.

This past month or so we’ve been highlighting savings tips for the summer, and we’ve talked about things like saving on food, saving at the movies, saving on summer travel and so much more (see the links below).

Before we end this summer savings series, however,  I thought it would be nice to highlight some of the summer savings tips that were submitted by our readers during our contest. There are some good ones here:

Summer Savings Tips From Our Readers

Here are a few of the tips our readers sent in on ways to save money this summer.

  • Joey – My summer savings tip – Use coupons when buying my groceries. Every little saving makes a difference.
  • The Happy Rock – Get your air conditioning unit checked and tuned up to help save on energy costs.
  • otherdeb – Know that bicycle that’s been moldering against your back porch/in your attic/in your garage, etc? Get it out, get it checked over, and start using it for local errands!
  • Rachel – For a cheap sun burn treatment that won’t require an extra trip to the pharmacy, freeze some of the lotion you already have on hand on a piece of tin foil. Once it’s frozen, it cools and soothes the burn and also moisturizers to ease peeling and blistering. Works great too for those who are allergic to Aloe Vera like me! Source: top10pharma.net
  • Sam – Turn you thermostat up to 80 and use your ceiling fans or box fans.We also turn off the AC at night and just use our ceiling fans.
  • finaidgirl – Since we’re moving 1000+ miles with a car and moving truck, I’m concentrating on more gas-friendly driving habits, like driving the speed limit or slower, braking more slowly and steadily, not idling, and paying to tune up the car before the trip to prevent any big issues from happening on the way.
  • RachaelfromNJ – Sometimes items that you own just need a good cleaning and they will look like brand new. Alot of men don’t realize that their baseball caps can be cleaned, in the dishwasher. Go to any Walmart, Target, Footlock, or any store that sells hats and you can get this plastic thing to put the hat in and all you have to do is place it in the dishwasher to clean it. It will make the hat nice and clean and save your man alot of money in buying a new hat everytime it gets dirty!
  • ThatOneCaveman – Vacation in or near your hometown. There are often a lot of cheap or free ways to entertain yourself – you just have to look for them. We’ll be visiting a few local museums (free entrance + free air conditioning), the zoo, the lake, and a few parks this summer – all for free!
  • Cindy – I’m saving money in a number of ways this summer. The first way is riding my motorcycle to work every day it’s not raining. I use about half the gas I would in my small car.
    Some of my co-workers, who live closer than I do, are riding thier bikes to work. That’s free and they’re getting excercise to boot, a double benefit.
  • Diana Corlett – Combine going green with economizing. Be inventive…come up with new ways to use and re-use. Repair what you have instead of throwing it away and buying new. Make a hobby out of garage sales…you never know what treasure you might find.
  • Christin – Dry your laundry on a rack outside. This saves $$ and your clothes will last longer too!
  • Mercedes – This summer I have decided to quit driving my kids around for activities and stay local. I have been lucky to have found things to do in the small town that I live. So far I love this simple summer life. I am kicking back and enjoying the nice weather without a hectic lifestyle.
  • Melinda – Continue to start our summer vacation (December here) 2 weeks before summer school holidays officially begin. No crowds at the amusement parks, lower airfares & greater discounts on accommodation
  • Morgan – Go on a long walk with your significant other on a nice summer evening. This is a great way to get exercise, communicate, and not spend money.
  • Bunny – Use ceiling fans instead of AC. Dry your laundry outside under the sun. Go to the parks for nice family outings.
  • EL – My summer savings tip is to use the community pool, if you have one. It’s a great, cheap outing for hot days, great exercise, and keeps you from using the air conditioner.
  • Lauren – I’ve planted a vegetable garden to help save money at the grocery store, not only for the summer, but into the fall and winter months as well thanks to the joy that is freezing and canning!
  • CelticBuffy – 1)Keep the ceiling fans going to make the house feel cooler.
    2)Close the curtains on sun-facing windows to cut down on the amount of heat coming into the house
    3) Grill out or eat “cool” evening meals as using the oven can really heat up the house.
  • Mrs.Micah – My tip is to try wearing as little as possible indoors to help keep the need for a/c down. We didn’t turn ours on until mid-June when a heat wave hit DC and I found this a useful part. Of course, if you have kids what you can get away with is probably warmer than what you can if you don’t have kids. And it requires shutting the blinds/curtains, but that’s probably a good idea anyway for reducing heat in the house.
  • Donna V -My husband and I have been trying to save money on our date nights this summer. We love going to the movie theater and have saved money by going on Saturday before noon when tickets are $4-5 depending on the theater.
  • Shawna – My tip – hang dark colored sheets/blankets over your windows to prevent the sun from coming in and warming it up too much inside (and prevent the AC from running too much). I take push pins and put one on each side of the window at the top, then I take binder clips and put one on each side of the blanket and hang them that way so that it is easy to take them down. The setting sun really heats up some of my rooms and I do this with success.
  • Christopher – Go out and have a family day. Go to the zoo, the park, the beach, or another inexpensive place. Pack a picnic lunch to avoid the overpriced concession stands. Play games like volley ball or baseball, build a sand castle, or ride the swings.

So there you have it!  Submit your own tips in the comments below!

Money Saving Posts From The Summer Savings Series

Have your own tips?  Leave a comment with your tip, or a link to your own post!

Related Posts

Source: biblemoneymatters.com

Apache is functioning normally

By Peter Anderson Leave a Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited May 17, 2013.

My wife and I just spent some time in San Francisco this past week. I was there for work during the week, and then my wife joined me there on the weekend.

We had a wonderful week doing the tourist thing, visiting all the well known San Francisco landmarks from Ghirardelli Square and Fisherman’s Wharf to the Golden Gate Bridge.

The picture below is a panorama composite of 3 photos showing the famous “Postcard Row” houses on Alamo Square.

Neither one of us had ever been to San Francisco, and we weren’t sure what to expect. We were pleasantly surprised, and we found it to be a beautiful city, with tons of things to do, great food, and very friendly people.

The weather was picture perfect, in the 60s and sunny all week. From talking to some folks who live there, this kind of weather is pretty much the norm here. For us Minnesotans who are used to the single digit temperatures in February, it was a virtual heat wave.

Traveling To San Francisco Can Be Expensive

We do have one confession to make – we spent way too much on eating out while we were there. San Francisco is an expensive city – and if you’re not careful you can find you’ve spent yourself into the poorhouse. Luckily we had budgeted for this vacation so we didn’t break the bank, but beware!

If you’re thinking of taking a vacation in San Francisco, don’t hesitate – just book it. It is one of America’s great cities, and you won’t regret a moment you spend there.

Money Saving Tips In San Francisco

If you do go to San Fran, here are a few tips to save some money on your vacation:

  • Avoid the rental car: If you can, avoid getting a rental car because parking can cost an arm and a leg in San Fran. If you’re planning on traveling outside of the city proper, you may need to get a rental car, but don’t forget to find and stack discounts on your rental!
  • Buy a transit card pass: Buy a Muni transit card pass to get discounted public transport rides while you visit.
  • Plan your trip in advance: Make sure to plan your trip in advance to find the best deals on your airfare and hotel. Use tools like the Bing airfare predictor to figure out the best time to purchase your airfare. Use online aggregators to find a discounted hotel deal.

  • Stay outside of downtown for a more affordable hotel: Hotel prices in San Fran can be extremely pricey. To find a better deal look outside of the central downtown area. Also make sure to search aggregators like Priceline, Hotwire and others.
  • Eat more fancy lunches than dinners: Want to eat at a fancy restaurant? Try having lunch there instead of dinner. It’s often quite a bit less expensive.
  • Make sure to visit free attractions: There are a lot of things you can do for free in San Francisco, including visiting Chinatown, Fisherman’s Wharf, the Golden Gate Bridge and Golden Gate Park. It’s a beautiful city and sometimes it can be a lot of fun just to stroll through an eclectic neighborhood and people watch!
  • Get discounted attraction tickets: If you buy multiple attraction tickets you can often get a big discount. Not only that, but some attractions like Alcatraz have several companies doing boat tours to the island. Make sure to shop around before you leave to find the best deal.
  • Enjoy!

There are a ton of ways to save while you’re on vacation. Just make sure to plan ahead, shop around and take advantage of money saving tips and tricks to have a frugal and under budget vacation!

Related Posts

Source: biblemoneymatters.com

Apache is functioning normally

Last Updated on February 25, 2022 by Mark Ferguson

As a REO agent one of my main tasks is to complete Broker Price Opinions or BPOs. When I get a new REO assignment I have to complete a BPO and in some cases multiple BPOs on that property. I also complete paid BPOs on many properties that are not my listings. On paid BPOs most companies will pay between $40 and $80 per order. Completing a great BPO will help you get more REO listings and get you more business with paid BPO companies. It takes time to learn to complete a good BPO in a timely manner.

What is a Broker Price Opinion?

A BPO is a report compiled by a licensed real estate agent that is similar to an appraisal. A BPO is not an appraisal and appraisals can only be completed by licensed appraisers. In fact some states have made it illegal for real estate agents to complete BPOs, so always check with your state laws before completing BPOs.

Here is what will be needed for each BPO:

  • Exterior or interior pictures depending on the type of BPO. Interior BPOs require the agent to inspect the interior of the property and usually pay more than exterior BPOs. Exterior BPOs require pictures of the property be taken from the street.
  • Three comparable sold properties and three listed comparable properties. You will have to find comps that are similar to the subject property and enter data for those comps into the BPO form.
  • Subject property data also has to be entered into the form which includes: square footage, room count, type of property, tax id numbers, location (rural, suburban, urban), condition and amenities (AC, deck, pool, etc)
  • You will have to enter extensive comments on the BPO as well that describe the property you are valuing, the comparable properties, the neighborhood, the market and how you came up with you value.
  • Many BPO forms require the agent to make adjustments to the comparable properties. If the subject has different features than the comparable properties you would adjust the sold or listed price of the comparable property like an appraiser would. If the subject has AC and the comp does not, you would have to add value to the comp property for it not having AC.
  • Some companies also require the agent to upload MLS sheets or public records information to confirm the information the agent entered was correct.

How long does it take to complete a BPO?

When I complete BPOs I can finish the report in about 20 to 30 minutes and that includes pulling comps and entering data. I have done thousands of BPOs and I am much faster than most people who are just starting out. At this point in my real estate career I have my assistants complete the BPOs and they have gotten as fast as me. When they first started to complete BPOs it would take them over an hour in many cases to complete the report.

As my team did more and more BPOs they got faster and faster completing the reports. They learned to pull comp data quicker, enter data quicker and write comments quicker. If you are getting paid $50 a BPO and it takes you two hours to complete, it may not be worth your time, because you have to drive to the property and inspect it as well. If you can complete the report in 30 minutes or less and you are getting a lot of orders, you can make a good living completing BPOs.

Driving to complete inspections on BPOs can take up a lot of time. If you are getting one or two orders a week and the properties are 20 miles away that is a lot of time and gas. You have to make sure you are considering the drive time when you accept BPOs. I would not accept orders over 30 minutes away unless the BPO company would agree to pay more or I had multiple orders in the same area. When I started getting a lot of orders I would wait a day or two to complete pictures so that I could drive by as many properties as I could in one trip to save time.

If you get a new REO assignment and have to complete a BPO, I would go to the property as soon as possible and complete the BPO as soon as possible.

How much do you get paid for BPOs?

Most clients will pay about $50 for an exterior BPO and about $75 for an interior BPO. Some companies pay less and some pay more. The prices for BPOs has gone down over the last few years as BPO companies try to save time and money. Some companies pay as little as $30 for an exterior order. I will not accept any orders that are less than $40 and those orders have to be very close to me. For interior orders I have to get at least $70 for it to be worth our time.

In some cases the properties will be in very rural areas and the BPO companies will be willing to negotiate. I have been paid $150 for orders before that were an hour away from me. For me to drive that far, it is not worth $150, but in some cases the BPO companies will let you hire a runner to take pictures for you. If you are doing interior inspections you have to be a licensed agent.

How much can you make completing Broker Price Opinions?

Making $50 a couple of times a week does not add up very fast, but you can complete a lot of orders when you get used to the work. One year I completed over 1,000 BPO orders and grossed close to $50,000 just from BPOs alone. I was not doing BPOs full-time, I also was listing and selling REOs. The BPO income was a bonus on top of the income I was making from the REOs. You probably won’t be able to complete 1,000 BPOs in your first year doing them. It takes time to build up business, find clients and prove you can do a good job. But, getting BPO business is much easier than getting REO listings. Completing BPOs and good BPOs can lead to REO listings.

How can completing BPOs lead to REO listings?

On every REO listing an agent receives they must complete a BPO. They do not get paid for doing the BPO, because it is considered part of the job of listing the property. Many companies and banks that have REO listings, also use agents to complete BPOs not associated with REO listings. If you do an awesome job completing BPOs for a company, you will have the best shot of selling REOs for them if they need an agent in your area.

When you complete BPOs for companies that only do BPOs and do not have REO listings you still are helping yourself. Your name is on each BPO you complete and that BPO eventually makes its way to the owner of the property. There is a pretty small chance the owner of the property whether it is a bank, hedge fund, or the government will use the agent just because they completed a BPO, but it had happened. Getting your name out there as much as possible is one of the best ways to get REO clients.

One of the biggest challenges for agents to get REO business, is the banks and asset management companies want to use experiences REO agents. If you have never listed a REO property it is hard to get any REO listings. If you can’t get any REO listings, it is very tough to get experience. If you complete BPOs, that shows you are in the REO industry and gives you a much better chance of getting REOs, than if you have no experience at all.

How to find REO and BPO companies

If you are looking to get into the REO or BPO business, I created a kit to help you get more business. The REO and BPO Starter Kit is for agents who are looking to start doing REOs or BPOs or agents looking to increase business. The kit comes with video training, a detailed guide on how to get REOs and a list of companies to sign up with. I just added a brand new guide that shows you exactly how to complete an awesome BPO, which is included.

Build a Rental Property Empire

Categories Real Estate Agent

Source: investfourmore.com

Apache is functioning normally

Last Updated on February 25, 2022 by Mark Ferguson

Many young adults and even kids have asked me if it is worth it to go to college to be a real estate agent. That is a very tricky question to answer, because the answer is different for different people. I went to college and then became a Realtor, but I did not use much of what I learned in college to sell houses. However, I am glad I went to college, because of what I learned in business. I also met a lot of great people and it helped me mature. If I had not gone to college I probably would not be as successful as I am now, but I also did not know for sure I wanted to be a real estate agent. In fact at that point in my life I knew I did not want to be a Realtor!

Why did I go to college and what did I major in?

My parents both went to college and my dad graduated with a chemistry degree. My sister who is ten years older than me went to college and eventually ended up with a doctorate in physics. It was expected that I would go to college and get a degree in something. In fact, it never even crossed my mind that I would not go to college. I was always good at math, but I was by no means a straight A student. I did not have the greatest attention span in school and I had a few embarrassing moments in class when I woke up from a day-dream realizing the teacher was repeatedly calling my name waiting for an answer to some unknown question.

Because I was good at math I thought civil engineering would be a good fit for me. I ended up being accepted to the University of Colorado in civil engineering and thoroughly hated it as soon as I started. I realized when I was in engineering school that I was really good at basic math and numbers, but I was not good at high level math like calculus or at least I did not have the attention span to learn it. I decided my freshman year that I did not want to spend the rest of my life doing high level math problems and transferred to business school.

I decided an emphasis in finance would be a good choice in business school, because I liked money (I really did not think things through when I was younger). Business school was a breeze after going through engineering. I took summer school to catch up after changing majors and ended up graduating in four years.

What did I learn as a business finance major?

Most of business school taught the common path to success. Get a corporate job, save your money, invest it in the stock market and retire when you are 65. If you wanted to be a cut above the rest you could work 80 hours a week, climb the corporate ladder and hope to become a CEO or high level corporate officer and make big money. The catch was you still had to work 80 hours a week even after you made it!

What I was taught in business school did not make a lot of sense, because the chances of making it big seemed so small and the rewards not that great in the corporate world. Then I took an entrepreneur class and I loved it! I was put in a group of five people and we had to do a computer simulation running a company. I took over the simulation and made all the decisions for our team as far as manufacturing, budget, marketing and basically everything. I loved it and I did not care that I was doing all the work for our team, because our team was number one in the class by a mile most of the year.

In the end we ended up being third because the simulation had a flaw. In the simulation if a company sold all of its inventory, all of its land and all of its manufacturing facilities, the stock skyrocketed. Basically a company sold all its assets, received a stockpile of cash and the stock price was suddenly worth ten times what the cash was worth even with no inventory, no manufacturing facilities and no way to make more money. I explained to the teacher (actually teacher’s assistant) why a company with no possible way to make money in the future should have stock value so high, but she did not understand. Even with the disappointment in not winning, I knew I loved running a business and I was good at it.

What did I end up doing after graduating?

After college I still did not know exactly what I wanted to do. I could not find a company that would let me be their CEO right off the bat and I did not have any ideas for starting a business. While I figured out what I should do, I moved back to my home town and worked part-time with my dad in real estate. I got my real estate license, helped him flip houses and 14 years later I am sure glad I made that choice.

I did not find success in real estate right away. In the beginning I treated it as a job and put in the hours without thinking much about what I was doing and why. When I started to think about being an agent as a business, planning my work and setting goals my career took off. Once I started to treat things as a business I started using my contacts from college and ended up hiring my college roommate as my team manager. I contacted my college and have thought about working with them and their real estate department. When I meet someone from my college it also creates an instant connection.

Although college did not directly teach me how to be a real estate agent, it helped me be successful in many ways.

  • I learned a lot about business and investing
  • I learned how little I wanted to be in the corporate world
  • I met a lot of very smart people and made many lifelong connections
  • I matured a lot before I started my career
  • As an alumni I have more contacts and better ability to network with others

Is it worth it to go to college to be a real estate agent?

Going to college or not is a huge life decision and one I cannot make for you. In order to make a decision like this please write out all your options, pros, cons and the costs. It will make it much easier to make the decision when everything is written out and you can see the benefits and down falls. Here are things to consider:

  • Do you love real estate and do you have any experience in it? If you have never been in the industry or around a real estate office you may not like it. Not everyone is cut out to be a real estate agent and some people may enjoy the corporate world or something else much more.
  • How much will each option cost? College is very expensive. I was lucky because my parents helped me pay for school and I went to an in-state college with lower tuition. Tuition was also much less 15 years ago than it is today. Real estate school is much cheaper and in most cases much faster to complete.
  • What are the licensing requirements in your state? Some states require a college degree and some are considering making it a requirement. Check what the requirements are in your state before you make a decision.
  • What type of real estate agent do you want to be? If you want to be a residential Realtor, college will not help you get a job. But if you want to be a commercial agent, a college degree will help you get a real estate job and be much more beneficial.
  • How mature are you? This is a hard thing to assess on yourself. We all think we are mature beyond our age, but most of us are delusional when we are young. Ask your parents, ask your family, ask your friends and anyone else to honestly asses how mature you are and if you are ready to start a career or not.  If you are not ready to take a career serious, but you start anyway there is a good chance you will not have much success. You might end up blaming the lack of success on the career and not yourself. College may be a good thing for those that need more time (I did).

After you have answered these questions you may or may not start to get a clear idea of what is best for your situation. If you still do not know what to do, there is another option.

Can you go to college and start a real estate career?

You don’t have to pick being a real estate agent now or going to college and being one in four years. You can choose a hybrid option that may be the best choice for most people. Many colleges have a real estate program or at least some real estate classes. You can enroll in college, choose real estate as a minor (it is usually not a major option) or at least take real estate classes for your electives. I would suggest something business related as a major, because the accounting, economics and entrepreneurial classes will be huge benefits to any career.

Besides taking real estate classes you could also start looking for internships or part-time jobs immediately. Look for real estate offices who may need front desk help or any kind of help. Start learning the business from people in the business. This is also a great opportunity to see if you like the business. If you find the right company they might help you get your license and you may even decide you don’t need your degree. Or you might work all through college earning extra money and gaining experience. You might also realize you hate real estate and you had better go to college to get a degree for another line of work.

Conclusion

There is no right answer when it comes to going to college and real estate. I am glad I went to college, but I also did not know what I wanted to do after high school. If you know you want to be an agent and nothing else, maybe you don’t need college. Maybe you can spend a year getting your license and working in a real estate office to make sure it is the right career for you. If it is the right career you just saved a lot of money and time! If you aren’t sure about real estate or want the college experience try the hybrid approach and get as involved as you can in real estate while going to school.

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Source: investfourmore.com

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Big-city amenities, small-town comfort, and a quick commute to Salt Lake and Ogden can all be found in Davis County. If you’re looking to move into this cozy-chic area, we’ve got your guide!

Cities to Fall in Love With

Davis County is the state’s third-largest—home to Layton, Farmington, Bountiful, Kaysville, and Clearfield. There are also a few smaller communities including Fruit Heights, Sunset, Woods Cross, West Point, Syracuse, South Weber, Clinton, and Centerville. This diverse city has plenty to offer for everyone! From thrill seekers to history buffs, you’ll want to check out this northern attraction.

A History Worth Documenting

Davis County was founded back in 1850 and still pays homage to its roots in several places, whether you want to step back in time at Pioneer Village in Farmington or catch a history lesson at the Layton Heritage Museum, Bountiful Historical Museum, or The Whitaker in Centerville. The area is rich with learning opportunities and chances to learn more about your new neighborhood.

The Main Attraction

There are so many things to love about Davis County, but we have to say the thing we love the most is the family-centric feel.

Growing Together

Davis county has plenty to do for young families, and one of the biggest draws is the educational system. The Davis School District is a proud Best in State award holder. With over 50+ elementary schools and eight high schools, you’re sure to find the right fit for your children

After the K-12 years pass, there’s no need to go far for a post-secondary education. Weber State is nearby but so are Salt Lake Community College and the University of Utah. If you’re looking for something a little different, Davis Technical College is a great option!

Eat Your Heart Out

No, really. There are tons of places to visit for foodies of all kinds. Got a sweet tooth? Check out Mrs. Cavanaugh’s Chocolates and Ice Cream. If you’re into local dinner fare, check out Arella Pizzeria, Pace’s Dairy Ann, or Holy Smokes BBQ. Feeling adventurous? Visit Argentine Corner or Fuji Sushi.

Lunch anyone? Two stops that cater solely to midday meals include the county’s top rated restaurant on Yelp, Vitos, and Beehive Bakery and Cafe in Bountiful. If you have artisan breads (or donuts and pastries) on your mind, Bunbasketand Parson’s Bakeryare sure to please.

It’s a Davis County Thing

Some things happen only once a year. In Davis County, these include the annual bison roundup on Antelope Island(fall), baby animals day at the USU Botanical Center in spring, and summer’s Davis county rodeo and fair. Opportunity doesn’t stop in mid-winter either. While some people choose to huddle close to a fireplace in their own home, it’s equally as cozy watching migrating bald eagles at Farmington Bay. Just be sure to bundle up.

Drive Easy

Davis County may be one of the LEAST out of the way places in the world. With most communities positioned on the I-15 corridor, it’s a quick trip to work from anywhere in Davis County, whether you work in Salt Lake, Ogden, or somewhere in between.

Hate to drive? You’ll be covered with FrontRunner, and its stations in Wood Cross, Layton, Clearfield, and Farmington. Stop for a morning beverage on your way at the very local World’s End Coffee.

On top of convenience, the Farmington UTA stop is right next to one of the most innovative shopping/transit communities in the area, Station Park. There you’ll find shops, restaurants, and office space, all walking distance of Frontrunner’s Farmington Park and Ride.

The Great Outdoors

Someone tell you to take a hike? There are literally more than 500 miles of trails in Davis County. Favorites include Antelope Island (the first-day hike on January 1is a chilly blast of fun for the new year!) and Adams Canyon Trail and waterfall—or even the trail system bordering the Legacy Highway.

Like all of the Wasatch Front, skiing is a short drive away for Davis County’s 300,000+ residents. Best bets on a crowded day: Snowbasinand Powder Mountain. Reach the pair by heading east on I-84.

Utah’s top amusement park, Lagoon, calls Farmington its home. While you won’t find rides running mid-winter, Lagoon has spring, fall and summer hours. Best bet for residents: Get a season pass that gets you in all season long. You’ll want to go more than once.

You can also play a round of golf at a number of challenging courses in the area, including Valley View Golf Course, Oakridge Country Club (current home of the Utah Championship), Glen Eagle Golf Club, or eight others. Find a complete list of Davis County courses here.

Fun Doesn’t Have a Bedtime

Time of day doesn’t matter—in Davis County, you’ll find opportunities to relax day or night. For example, schedule a time to visit a Sego Lilyspa or ramp up the action with the kids at Classic Fun Center in Layton. As the sun goes down, take in a live performance at Kaysville’s Hopebox Theater or a big-name, outdoor concert at the (Foreigner, Styx and Chicago can’t be wrong). You can also wrap up a busy day with a movie at one of the seven theaters in the area, followed by a bite to eat and a drink at Rooster’s in Layton—with some of the most unique micro-brewed beers in the state.

Join the Davis County Family

Does one of the many thriving cities in Davis County speak to your soul? Start browsing homes for sale in the area now or learn more about how to buy with Homie!

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Source: homie.com

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Posted on: December 4, 2018

VA loans are a great mortgage option for many military families. We launched the MilitaryVALoan.com Show with our guest host Bernard Edwards to learn from real estate professionals that serve veterans and their families about what it’s like to use a VA loan when purchasing or refinancing a home.

In this episode, Bernard Edwards speaks with real estate professional Chad Vasquez who shares some of the lesser known details about home buying with a VA loan.

Get started on your home buying goals today.

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>>View first episode: Bernard Edwards interviews VA loan consultant William Doom

A VA loan requires no down payment, but you will be charged a VA funding fee.

“With the VA loan, many know one of the benefits is that it requires no money down,” says Vasquez, “but, what surprises them is being charged the VA funding fee.”

A VA funding fee is a one-time, upfront payment required for all VA home loans. This fee helps sustain the program as it is self-funded and doesn’t use taxpayer dollars or other VA program funding. Your funding fee will be determined by the loan amount, your service history, including length and time of service, and the type of loan. Funding fees vary from 0 to 3.3 percent of the loan.

Vasquez also notes: “The good news is that the amount can be added to your loan, so the fee isn’t out of pocket.”

>>Related: 2018 VA Funding Fee Chart

Appraisals may be harder to get for VA loans than conventional loans.

“The VA appraiser is going to make sure that the property is in a certain condition — it can’t have a hole in the roof or extreme peeling paint. This is to protect the veteran and ensure they’re purchasing something of good quality,” says Vasquez.

“The most unique thing I’ve seen required for a VA loan is that the door between the garage and kitchen must be a fire-rated door. This isn’t required for other home loans, but it’s a good safety feature.”

Edwards adds: “For some, it may seem that VA appraisals are a bit harder to pass, but that’s actually great for you as a homeowner. It’s extra assurance of what you’re purchasing that other loan types don’t give.”

Get started on your home buying goals today.

Bernard A. Edwards, the host of “The MilitaryVAloan.com Show” is the founder of Troops To Agents, which empowers veterans and spouses to become successful real estate professionals. He also is launching The Military Transition Camp, dedicated to helping military members design every aspect of their post-uniform life: mindset, health, purpose, career, money, fitness, emotion, relationships, and spiritual growth. Follow him on LinkedIn or Instagram for behind the scenes footage and insights from his interviews and travels. Service history: Technical Sergeant (E-6) Retired; 16 years of service; U.S. Air Force.

FULL VIDEO TRANSCRIPT:

Bernard Edwards: Hey everybody. It is the Military VA Loan Show and I’m here with none other than Chad Vasquez. We’re going to talk a little bit about real estate, about VA loans, and on this show, how we always do, about becoming a homeowner with your military VA loan. Chad, you’ve been in real estate working for how many years now?

Chad Vasquez: Coming up on three years in Hawaii, so I’ve got a little bit of knowledge on how things go here on the island.

Bernard: What was the first year, besides when you had your actual license, when you experienced using a VA loan?

Chad: Using VA loans to buy my first home was in Texas. Then, I actually came to Hawaii and started doing real estate. It’s a little different here, but using your VA loan is an incredible opportunity.

Bernard: Nice. When you first used it in Texas, you weren’t working in the business as much at

that time. You knew that you wanted to get into real estate, you wanted to be able to

invest. What was that experience like? What were some of the surprises that you had?

Chad: That’s a great question. With the VA loan everyone knows some of the benefits are that it’s no money down. That’s one of the fantastic things. One of the surprises in the VA loan is there’s actually a VA funding fee. That’s something that everyone pays so that the Veteran’s Affairs can actually insure those no money down home loans. It can be around 1.5% the first time. It actually goes up each time you use the VA loan. The good news is that actual amount gets put into your loan, so it’s also not out of pocket.

Bernard: Nice.

Chad: But that was a surprise.

Bernard: Nice. Yeah, and one thing that Chad just mentioned is that a lot of people get it, they have this idea that the VA is the one that’s actually giving you the loan, but the VA is actually insuring the loan and with that we don’t have to pay private mortgage insurance, which is something that’s common in the civilian sector.

Chad: Correct.

Bernard: And another thing that we’re able to save money each month. You’ve had quite a few clients, tons of clients each year that have that military background. For them, what’s the process been like as far as obtaining their VA loan?

Chad: Really good question. Usually we either talk to them first or a VA qualified lender does, but either way talking to a real estate agent to get some good advice. We’re always going to give you information, the knowledge that we have about the local housing market, so you can make the best choices for you and your family. That’s the most important. Equally to talking to a real estate agent, is talking to a good knowledgeable VA lender — somebody who does a lot of VA loans, somebody who can help you with that process.

Bernard: Yeah, it’s definitely, there’s some unique things to all different types of loans out there, conventional loans, FHA loans, VA loans, and you do, like Chad’s saying, you do want to have somebody that specializes in that, that’s shown proven success in your particular market because each market could be a little bit different. I mean here on island we have kind of different pockets of the island, and even the way that things might work on one corner of the island versus another may be a little bit different and you do want to work with someone who’s really versed. What are some of the unique things, say, when it comes to home inspections and appraisals that you’ve seen with the VA loan?

Chad: Nice. So here when the VA or Veteran’s Affair appraiser comes out to make sure the value of the home is equal to the size of the loan you’re getting, they’re going to make sure that the property is in a certain condition. That means it can’t have like a hole in the roof, it can’t be having really bad peeling paint, things like that they’re going to hit on the inspection just to make sure the veteran is protected, they’re getting something of a good quality. Some of the unique things we’ve seen is, for example, the door between the garage and the kitchen has to be a fire rated door for the VA. It doesn’t have to be for other home loans, but that’s a good safety feature as well.

Bernard: Great. That’s one thing I’ve noticed is that, yes, for some people they may seem that the VA appraisals and inspections are a little more harder to pass, but that’s great for you as a homeowner ,because that’s extra assurance that you’re getting versus one of these other loans that doesn’t do all that policing for you. You have to go out and find and add these things, whereas the VA loan process they’re really having your back and ensuring that that property that you’re going to get is an investment. There might be some minor things, carpet, cosmetic type things that aren’t able to pass, but really big items that are knocking down the value of your property, those things are not going to pass. That’s the VA having your back.

Chad: Yup.

Bernard: Now, for you, I get to interview real estate professionals from all walks of life, and one of the awesome things about you, you’re a veteran and you’re currently serving in the Guard. Can you tell us a little bit about your military career from active duty to now what you’re doing?

Chad: Absolutely. I was active duty Marine Corps infantry back in 2000 when I joined the first time. After I got out there was a break in service. When we moved back here to the island of Oahu in Hawaii there are all five military branches here, so I actually wanted to go back and do reserve time. So I’m now currently in the United States Air Force Reserve. That helps a lot too because I actually can keep a pulse on things that are changing with the military. There’s things that have changed even in the last 10 years that weren’t the same when I got out.

Bernard: That’s awesome. Well, Chad thank you so much for stopping by.

Chad: My pleasure.

Bernard: Thank you for your service. Check us out on militaryvaloan.com where we’ll be coming at you with more questions and answers.

Chad: Thank you very much. Aloha.

Bernard: Thank you.

Source: militaryvaloan.com


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Source: mint.intuit.com

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Turn your apartment into Santa’s workshop to provide proof that Santa is real this holiday season. Here’s how.

The ho-ho-holidays are here and it’s time to start making a list and checking it twice. The little ones are anxiously awaiting Santa’s arrival to see if they made the naughty or nice list and parents want to keep that magic alive and prove that Santa is real.

So, how do you make your kids believe that Santa did in fact make a special trip from the North Pole to your apartment? From special wrapping paper to reindeer tracks, we’ve prepared a (nice) list of ways for you to prove that Saint Nick and his elves are real.

How to make it look like Santa visited your apartment with 11 easy hacks

The lore of Santa Claus is one of the most beloved Christmas traditions. It’s more than just the gifts he leaves behind; it’s the anticipation and the magic of believing he is real. Caregivers and parents alike can use a few pro hacks to bring remnants of Santa’s workshop to the apartment.

1. Eat the cookies

It might be the oldest trick in the book, but it’s crucial that you have the kids leave out a plate of Santa’s favorite cookies on Christmas Eve and then leave an empty cookie plate behind come Christmas morning.

If you have kids that are skeptical, consider leaving out cookies you dislike and would never eat. When the cookie plate has been licked clean, the kids may believe that it was indeed St. Nicholas as you would never eat a sugar cookie with extra frosting and sprinkles.

2. Coordinate with your apartment neighbors to leave clues around the complex

When you live in an apartment, you might not have full access to a yard to leave proof of Santa outside. However, you can coordinate with other parents or neighbors on your floor or in your building to leave undeniable proof that Santa is real.

For example, you work together to leave a trail of Santa’s footprints down the hall. Or, you could all go to the common outdoor area and plot to make it look like the reindeer watched over the sleigh in the night.

Regardless of what you do, coordinating with other neighbors in the apartment is a fun way to extend the pretense that Santa is real.

3. Make Santa’s footprints

If you have a fireplace or chimney in your apartment, you can make fake Santa footprints and leave them near the fireplace and Christmas tree. If you don’t live in a place with a fireplace, don’t sweat it! You can leave footprints close to the Christmas tree and presents or even get extra festive and leave a trail from one door to the next in the hallway to show that he visited everyone in the building.

All you need to do is take some flour or powdered sugar, dip a large shoe in it and pat it down like footprints up and down the hallway. Your children will know that mom and dad never have messy feet or shoes in the house so it’s obviously Father Christmas leaving snowy footprints behind.

4. Sprinkle red glitter outside

We all know that Rudolph guided the sleigh that snowy night, so it’s fun to leave a little proof of that special reindeer’s visit. Take some red glitter and sprinkle it outside in spots where the reindeer sleigh was parked. You can take your kids outside and show them the remnants of Rudolph’s red nose.

5. Make sled tracks in the snow

If you live in a city where you’ll have a white Christmas, you can leave sleigh tracks in the snow as proof that Santa is real. Take a 2×4 and drag it through the snow to make it appear as if the sleigh touched down, parked for a bit and then took off again. When you live in an apartment, you’ll want to do this magic trick in a common area and explain to the kids that he parked here so he could deliver the gifts to all of the children in the building.

6. Feed the reindeer

We leave out cookies and milk for Saint Nick, but the reindeer get hungry, too. On Christmas Eve, leave out a box of carrots or celery for the reindeer. When the kiddos are fast asleep, chomp up and split out some veggie remnants so it looks as if the flying creatures had a midnight snack. This is another hack that’s great to coordinate with other apartment caregivers.

7. Send a note from Santa himself

All of the children write and send Santa a letter with their wish lists, but how often does Santa respond? In the weeks leading up to Christmas Day itself, get a holiday postcard and mail it to your own house addressed to your children. Have a friend or neighbor write the note so it’s different handwriting and have the postcard say that Santa received the wishlist and he and his elves are busy making the presents. This can be a fine way to go the extra mile and build anticipation for Christmas Day.

8. Play “Elf on the Shelf”

Leading up to Christmas Day, you can participate in the fun game of Elf on the Shelf. The pesky little creature from the North Pole can leave little treats around your apartment in the 12 days leading up to Christmas. Your kids will love searching for and finding that tricky elf each day counting down to Christmas.

9. Jingle bells on Christmas Eve

If you’ve ever seen The Polar Express, you know that the sound of bells is significant. When your children are tucked into bed and dozing off, ask a neighbor to jingle some bells near the window or door that the children can hear. The children will see that both parents are in the house and have a clear picture in their heads of the sleigh landing nearby and Mr. Claus eagerly waiting to place the presents under the tree.

10. Use Santa’s special wrapping paper

At Santa’s workshop, there is a special wrapping paper, of course. When you’re leaving gifts for your kids, make sure to use different wrapping paper and hide the remnants of Santa’s wrapping paper. You can wrap all of the gifts from you in one kind and from Santa in another. And for kids who are scrutinous of everything, make sure you sign gifts from Santa in very different handwriting so the sleuths won’t figure it out.

11. Catch Santa in the act

Last but not least — maybe most extravagant — is to actually catch Santa in the act. This trick requires a lot of careful planning and support, but it can be exciting if you do it just right.

You can use apps like Capture the Magic or I Caught Santa or do it yourself, but the point is to have someone dress up as Santa and have your children actually see him in the act of leaving presents under the Christmas tree. How can you deny Santa’s existence when you see him with your own two eyes? Have the kids snap a picture, too, as proof that Santa is real.

Did Santa Claus visit your home before returning to the North Pole?

Most children want to believe that Santa is real for as long as possible. And parents love to see the magic of Christmas come alive on Christmas morning. Whether you try one or all of these hacks to provide proof that Santa is real, you’re bound to have a magical experience on Christmas morning as your kids are busy checking out what the elves made for them this year. Cheers to another happy holiday season!

Source: rent.com