Tag: Buy

How To Sell and Buy a Home on Same Day

The fun begins and with a few other thingscoming up in the near future we decided it was time to downsize and move closer to whereboth of our moms are It was just very smooth from the very beginning.

We were able to just click together.

I believe that this process was probably oneof the easiest and best.

I really think the best was to go with youguys first because we have had a really good experience.

I really liked the marketing.

The very first thing that I like that youwere able to do an Ariel view.

I had never really seen something like thatbefore so I was really impressed with the Ariel view.

And then I was really impressed that you didthe walkthrough, the things you said, and the enthusiasm that was shown, and the thingsthat were showing so positive about our home.

And then the way you guys marketing thingsand kept things going kept things moving, kept in touch with us to say ok what we cando here to see if we can help.

And I really did appreciate how well thatmarketing went because I know that the marketing really helped us a lot and I know that itwould have been harder if we wouldn’t have had the good marketing service’s that youguys gave us.

Everybody that we have talked to have beenvery impressed with everything and how it’s going.

The timing has worked out perfect for sellingthis home and purchasing the other.

We were able to close on both residences atthe same time that was a big help.

I really can’t see anything that you guyscould do different because you were so friendly, you were so helpful, and you were accessibleto us, you helped us in any way possible.

I just like what you’re doing so far sodon’t break it what you got going is great.

Thanks JoelThanks Ann! Thanks Joel! Thanks everybody for all of your help to helpus be successful to sell and move.

Thank you very much.

Source: Youtube

Why Do Tenants Rent Instead of Buy?

Who in the world wouldrent a $40,000 home? Why wouldn't they just buy it? That's today's video.

Let's dive in.

Hey, everybody.

I'm Clayton Morris.

I'm the founderof Morris Invest.

I'm a long-time realestate investor.

And this channel isdevoted to helping you take action, go out thereand become a real estate investor.

And we focus here on the channelabout buy-and-hold real estate, because we want tocreate cash flow– passive income.

That's what this channelis all devoted around.

So today we're going totalk about a question I get a lot from differentpeople, who want to know, why would anyonewant to rent a home in the $40,000, $50,000 range? I mean, those are the typesof houses that I, personally, like to buy as a realestate investor– single family homes in theMidwest part of the country, or in the South,or in Pennsylvania, those types of areas– that then have ayard, a driveway, a three-bedroom, one-bath,two-bedroom, one-bath.

But they're affordable.

They're not San Francisco.

They're not Miami.

You know, they'renot $500,000 homes.

They're $40,000 homes.

Those are my favorite.

And, number one, the returnon investment is super high.

And, number two, it's,you know, affordable.

I am able to get alot of properties.

And I have a lotof great tenants who stay for a longtime in my properties.

But a question I get is, well,who would rent that home? Why wouldn't theyjust buy that house? Why would they rent from you? It's a great question.

We're going to diveinto three key areas as to why they wouldn'twant to own that property.

All right, numberone– the first reason why they wouldn't want to ownthat property– it's mindset, mindset.

They don't– not everyonethinks like you do.

Not everyone thinkslike I do, that, yes, we want to own our home, you know? You might have beenbrought up in a family that lived in a home that wasowned by your parents.

Well, maybe these folks don't.

You know, maybe they don't.

Maybe they weren'traised the same way.

And, therefore, theirmindset around home ownership is simply not the same as yours.

So that's one reason– mindset.

Number two reason whythey wouldn't want to own this property is money– down payment money.

Think about this, right– on a $40,000 home,you're going to have to come down with about20% down, if you're working with a bank.

What is that? That's $8,000.

Now that might not soundlike a lot of money to you.

But to someone who'sworking paycheck to paycheck as a blue-collar employee,works really hard– but they don't have $8,000sitting in the bank in order to make a down payment.

Think about that.

You might think to yourself–well, that's simple.

I'll do that anyday of the week.

Yeah, well, some people can't.

And, therefore, renting makesmore sense to that person.

And the third reason thatthese individuals wouldn't buy a house that's$40,000, $50,000 is because bankssimply won't lend.

That's the bottom line.

Banks don't like lendingon properties that are below $50,000, even $60,000.

It's really hardto find banks that are willing to do thaton a primary residence.

So it can be reallydifficult.

And, especially, if you do have that$8,000 as a down payment, they're going to, obviously,check credit score, verify employment, doall of those things.

And, still, they don'tlike to be in that $40,000, $50,000 range for purchasing,for your primary residence.

I don't know why.

It's the same thing withrental ownership of a property.

If you're trying to buya property like that as a landlord, and youlive 50 miles away, you're also going to run intoroadblocks and headaches trying to work with banks inorder to finance a property that affordably, that cheap.

It just doesn't makethat much money for them, to be honest with you.

They're going to financea $40,000 property? That's peanuts to them.

Why would they do it? To them, it's riskier.

They don't want to be inthe home ownership business, so they don't want to haveto go through a foreclosure, take that property back,and, at $40,000 or $50,000, it just does not makemuch sense to them.

I've talked tobankers about this.

And that's the bottom line.

So those are three reasons– mindset.

They just don't thinkabout home ownership, maybe, the way that you do.

So, you know– and theydon't want to own the home.

Maybe they want to move a lot.

That's what they like to do.

Number two– down payment money.

Simply don't havethat money to do a big down payment on aproperty and own that house.

And three– the banks.

Banks simply won't lendon properties that cheap.

Add them all up, andthere's your answer– it's not that easyto buy those homes.

And, therefore, whyshouldn't we buy them? And why shouldn't wehave them out there– great property forgreat tenants to live in that we own and we createcash flow for ourselves? It's a win-win for everyone.

There you go.

I hope you foundthis video helpful.

We have tons of greatvideos here on the channel.

We have all kinds ofplaylists that you can click on and go seeon how to set up and get private money;how to get started with turn-key real estate; youname it, we've got it here.

And don't forget, ifyou're not a subscriber, click the big subscribebutton right here and become part of ournetwork of investors who are learning andgoing out there and taking action and becoming areal estate investor.

We'll see you nexttime, everyone.

Source: Youtube

How to Decide Whether to Buy or Rent a Home

How to Decide Whether to Buy or Rent a Home.

Owning your own home is the American Dream, but don't jump into such a major commitmentbefore you're ready.

With careful consideration, you can decide whether it is best for youto buy or rent a home.

You will need Short-term future plan Savings account statement Handymanskills Basic math skills Commitment Money for closing costs and agent fees (optional)and knowledge of tax deductions (optional).

Step 1.

Think about how many years you planon staying in your home.

If you aren't sure that you'll be in the home for at least 3years, you'll likely be better off renting than buying.

Step 2.

Check your availablesavings to see how much money you have available for a down payment.

If your available downpayment is less than 20 percent of the purchase price, you'll likely have higher monthly payments,and renting may be a better option — at least until you can save more money.

Be sure thatyou have enough to cover closing costs and real estate agent fees in addition to thepurchase price when buying a new home.

Step 3.

Think about whether you have skills orenough money to handle incidental repairs like a broken air conditioner or clogged plumbing.

Renting means that these responsibilities are the landlord's; when you buy, the responsibilityis all yours.

Step 4.

Compare the rent ratio by dividing the purchase price of a new homeby the annual cost of renting a home.

Consider buying if the ratio falls below 20.

Considerrenting if the ratio is above 20.

Step 5.

Calculate the tax breaks that you would receivefrom buying your home by estimating how much interest you would pay on a mortgage and howmuch property tax you would pay within a year.

Determine whether this break is large enoughto warrant buying a home.

Determine whether the tax deduction for purchasing your homeexceeds the standard deduction that everyone — including renters — is allowed to take.

Step 6.

Decide if you're mentally ready to commit to a large, long-term purchase.

Buyinga home means that you can't pack up and move whenever you want.

If you're ready for thiscommitment, and your finances are all in line, it might be time to find an agent and startshopping for your dream home.

Did you know The White House features 132 rooms, 35 bathrooms,and 6 levels in the residence area.

Source: Youtube

Planning to buy a house? Think again! Buy Vs Rent Analysis

To rent or to buy a house is a dilemma mostpeople face.

Let's try to address this from a purely financial point of view.

Meet Joe and Alice.

Joe wants to rent a house while Alice is thinking of buying one.

Image we have 2 similar houses available — one for renting and the other for buying.

Joehas to pay a thousand dollars a month to rent the house.

Alice, on the other hand, needsat least 300 thousand dollars to buy the house.

For the sake of simplicity let's assume thatAlice can get the mortgage for 6% interest rate – which is true in many developed countries.

And the loan she has taken is a repayment mortgage.

Which means her monthly mortgagepayment will include interest plus a small part of the principal amount.

Let's say sheis planning to pay back the loan in 30 years and she also needs to contribute about thousandfive hundred dollars towards maintenance.

We also assume that the property price goesup by 2 % a year.

You may noticed that in some parts the growth is much more than that.

But according to research over a large period of time, the rate is usually between 2 to3 percent.

If we use these assumptions, Alice will haveto pay about thousand five hundred dollars every months as repayment.

On top of thatshe also needs to pay for the house insurance.

Joe, on the other hand, pays 1000 dollarsas rent.

He also saves some amount of money in the bank.

For argument sake, let's considerthis amount to be the difference between the rent and Alice's repayment amount.

Since rentis likely to go up every year, we need to consider a 3% increase in rent every year.

Quite often, people decide to sell their old house and move to a new one.

In our case,let's say Alice wants to get a buy a bigger house in 10 years.

Considering the appreciation of the value of her house, her house will be worth around370,000 dollars.

Since she still owes money to the bank, she will be left with only 110,000dollars Joe on the other hand will have savings ofabout 130,000 after 10 years.

Which means he made 20,000 dollars more by renting.

Does this mean that renting is always better than buying?Not really! Let's consider the case of Bob, who also boughta similar house at the same time Alice bought hers.

But he bought the house in another partof the city.

And the house increased by 3% in value per year – that is an increase ofjust one percent than the house bought by Alice.

When he sells the house after the same10 years, he will make around 150,000 dollars.

He made 20,000 dollars more than Joe by buyingthe house! So if you ask me whether you should buy orrent, I would say it really depends on your situation.

There are certainly advantages and disadvantages to both.

If you rent you have more freedomto move to another location.

And if you buy you will have more freedom to modify yourhouse according to your taste.

You can also see that if you invest the moneyinstead of saving, it will also change the scenario.

Source: Youtube

Rent or Buy a House?

To buy, or not to buy.

That is the question.

Should you continue to rent? Or should youbuy your first home? This can be a challenging decision.

But it need not be.

In the nextfew minutes we'll show you simple way to determine exactly when to make the move to home ownership.

Let's start with a quick comparison of the advantages of both options.

Renting has twoprimary advantages: mobility and simplified financial obligations.

Buying a home has different advantages.

Each mortgage payment builds equity in your house;House payments remain essentially fixed, even as other prices rise; Your tax bill will likelybe lower; and your home improvements build upon your investment.

But when is it best to switch from renting to buying your first home? From a financialpoint of view, it essentially comes down to two factors:The minimum number of years you plan to own the house, and the size of your down payment.

We'll illustrate this with a spreadsheet we created in Google Drive.

(You can get your own copy of the spreadsheet by clicking on the link listed in the descriptionsection below and copy it into your own Google Drive.

)The cells with no shading contain the all information we need for our calculations.

The default values are typical of those for buying a starter home with a cost of $100,000.

A summary of the analysis is best illustrated by two graphs.

The first graph shows the projectedexpenses for both renting and homeownership over the coming years.

The curves show thatthe projected accumulated expenses for house ownership start out higher, but eventuallydrop below the rental expenses at some point in the future.

There are several reasons for this.

First, as soon as you buy a house, you incur thefuture cost of selling it.

Even though this expense won't be paid until the house is sold,we count it as an expense right up front.

It's this expense that makes homeownershipinitially cost more than renting.

In most cases, accumulated renting expenseswill eventually exceed the costs of owning a home.

This is because less money is spenton mortgage loan interest as you build home equity.

On the other hand, rental costs generallycontinue to rise at the rate of inflation.

By looking at this graph, it's clear thatyou will need to hold onto your house for at least a few years to break even.

So ifthere is a high likelihood of you moving soon, it's better to continue renting and save fora larger down payment.

This brings us to the second primary factor–yourdown payment.

A higher down payment means a smaller mortgage, which lowers your interestpayments, thereby lowering your overall house expenses.

Further, if your down payment is less than 20% of the house price, your loan will likelyrequire the additional expense of private mortgage insurance (or PMI) as part of yourmonthly house payment.

Now that we know the two primary factors impactingyour decision, let's look at the second graph in the spreadsheet.

One axis represents theamount of your down payment.

The other, is the minimum amount of time you plan to ownyour home.

If your situation puts you within the shaded region, it's better to continuerenting.

But if you determine that your situation puts you outside of the shaded region, it'stime to consider buying a home.

For example, this graph shows if you put 20% down, youshould plan to own the house for at least 2.

5 years.

You may have noticed that throughout our analysis, we have assumed that the values in our spreadsheetremain the same over time.

But in the world of real estate, nothing remains the same.

Inflation, mortgage rates, and home prices vary significantly over time.

So is the whole analysis hopeless and just a matter of luck? Fortunately not.

A homeownerhas one significant hedge against all these variables.

That hedge is "time.

" Accordingto the famous Case-Shiller index, given enough time, housing prices will on average trackinflation.

Therefore, in most cases, you can avoid a loss due to short-term depressed housingprices by simply holding onto your home longer.

As you have seen, the rent or buy decisiondoesn't need to be overly complicated.

By focusing on two important factors, you canstart charting your course to home ownership.

If you liked video and want to continue tolearn more about various aspects of home buying, please subscribe to the home buyer channel.

If your business involves home buying or financing, we encourage you to embed this video intoyour website.

Use the comment section to let us know whatyou think of this video and what other types of home buying topics you would like to seein the future.

Source: Youtube

Should I rent or buy a house?

Let's face it! Figuring what stocks to invest in buying gold or deciding which car to buyare all big financial decisions.

But buying a house is by far thebiggest of them all.

At current real estate and rental rates, home is where the hurt is.

The biggest question then is should you pay rent or buy your own place.

The answer is simple if you thinking long-term paying rent could make a huge dent in your savings.

But if you're thinking short term just thecost of the house you want to buy could end in a hugesigh of defeat.

Or is it that simple? No, but its not trigonometry either.

You will need to answer a few basic questions.

For starters: How much would you pay to rent and what does it cost if you buy? Isn't it better to just buy a house sinceyou buy one at some point anyway? With rising rentals aren't you better off paying an EMI? How long are you planning to live there? What if you relocate? Are you missing out on yet anotherreal estate boom? What if you realise after buying that the price hasn't gone up much? When it comes to housing decisionyou'll probably hear many opinions from different people.

We realise that you house isn't built with money alone.

While it is a decision close to your heart, Our well-researched tools, blog posts and videos help you navigate this decision.

How's that for some good timely advice?.

Source: Youtube

Is it Better to Rent or Buy a House?

Kris Krohn here with REITV.

And I get asked by a lot of people "Should I actually use a bank and buy my house or should I just rent?".

And today, we're gonna answer that question.

Should you rent or own your own home? You know, it's an excellent question.

Based on the way the banks do the system, I mean, they're gonna make you pay for that house three times over 30 years.

And the idea of paying for the house three times, meaning all that interest is deeply front-loaded,I mean, banks just, well, they take you to the bank! You ever wonder why they hand you a sucker on the way out? No, I'm just kidding now.

If you wanna win against banks, I do thatby getting really, really good deals when I buy a house.

So, the deeper the discountI get that house with, if I buy it, you know, with a 20% discount or a 30% discount, ora 15% discount, then really what I'm doing is I'm leveraging a lot of equity.

These people don't stay in the same house for 30 years! And that means that if for the first five years of a mortgage are just gonna be paying interest anyway, when you sell it, you might as well allow yourself to capture any of that appreciation, as well as that deep discount.

And if you do that, you'regonna keep yourself protected.

In the event that you do hold on to the house long-term, well, you'd be glad that you bought it instead of rented it.

I mean, renting isjust throwing ALL of your money away.

And with the bank, at least you're only throwing some of it away.

So, do I buy, do I rent? Well, it really depends.

I mean, for me, it's all about a financial game plan.

Buying with the right strategywill always get you further ahead than renting.

So for me, it's gonna be buying.

I sure hope you enjoyed today's video as we talked about should you buy, should you rent.

Hopefully you are clear on your answer.

If you'd like to get clear on other real estate answers, then go ahead and Subscribe! In fact, if you really liked the video, give me a thumbs up! If you didn't like the video, give me a thumbs up anyway! It'll MOTIVATE me to produce better videos for YOU.

Source: Youtube

Buy or Rent a House? (Home Buying 1/6)

Meet Emily.

Emily has been renting an apartmentwith her wife Olivia for the past seven years.

Recently, Olivia has made it clear to Emilythat she wants to move to the suburbs where there are better schools for their twin girls.

While this appeals to Emily, there’s just one problem.

She’s just not sure whether or not she shouldbuy or rent a home.

What should they do? Luckily for Emily, we’ve got her covered.

The first thing Emily needs to understandis that buying a home is often more expensive than renting one.

Emily is stunned.

Why is that? Well, the reason is simple.

In addition toa hefty down payment, large monthly mortgage costs and the one-time closing fees associatedwith buying a home, you’ll also have to foot the expenses your landlord is currentlycovering, like maintenance, property taxes, and insurance.

As you can imagine, this canlead to a pretty expensive monthly payment relative to renting.

Plus, residential real estate isn’t reallya very good of an investment.

From 1890-1990, home prices on average only increased about0.

3% a year after inflation.

To put this in context, the U.

S stock market returns about7% a year after inflation on average.

This huge difference allows a renter to buildwealth more easily than a buyer.

All the renter needs to do is take the cash they’d saveby renting and invest it with a robo-advisor for a 7% post inflation return.

If that soundsdifficult, don’t worry, our two videos “How to Invest” and “401(k) and IRA 101”,will teach you everything you need to know.

By now, rather understandably, Emily is confused.

Everyone has always told her that buying a home is a great move.

Were they all just wrong? The response is simple.

Of course not.

Homes do have value: their loan interest istax-deductible, they can provide a stable place to raise a family, and they can providetheir owners with flexibility and a strong sense of pride.

The trick is to avoid deludingyourself into thinking buying a home is always a slam-dunk financial decision.

It’s justmore complicated than that.

That’s why we highly recommend calculatingthe financial tradeoffs using our recommend calculator.

That way, you’ll be able tounderstand the full scope of the situation and make an informed decision.

Hopefully you and Emily now better understandthe rent vs.

buy decision.

Be sure to check out our next video, which covers the basicsof mortgages, and be sure to check out our website, where you can find great real estateagents, mortgages, and more educational content.

Source: Youtube

How To Sell and Buy a Home on Same Day

The fun begins and with a few other thingscoming up in the near future we decided it was time to downsize and move closer to whereboth of our moms are It was just very smooth from the very beginning.

We were able to just click together.

I believe that this process was probably oneof the easiest and best.

I really think the best was to go with youguys first because we have had a really good experience.

I really liked the marketing.

The very first thing that I like that youwere able to do an Ariel view.

I had never really seen something like thatbefore so I was really impressed with the Ariel view.

And then I was really impressed that you didthe walkthrough, the things you said, and the enthusiasm that was shown, and the thingsthat were showing so positive about our home.

And then the way you guys marketing thingsand kept things going kept things moving, kept in touch with us to say ok what we cando here to see if we can help.

And I really did appreciate how well thatmarketing went because I know that the marketing really helped us a lot and I know that itwould have been harder if we wouldn’t have had the good marketing service’s that youguys gave us.

Everybody that we have talked to have beenvery impressed with everything and how it’s going.

The timing has worked out perfect for sellingthis home and purchasing the other.

We were able to close on both residences atthe same time that was a big help.

I really can’t see anything that you guyscould do different because you were so friendly, you were so helpful, and you were accessibleto us, you helped us in any way possible.

I just like what you’re doing so far sodon’t break it what you got going is great.

Thanks JoelThanks Ann! Thanks Joel! Thanks everybody for all of your help to helpus be successful to sell and move.

Thank you very much.

Source: Youtube