Updated: Monday, July 06, 2020

Why Lenders Sell Loans

Without having the ability to sell mortgages, the lending industry would essentially shrivel up and die. Why? Think of it this way- say a bank had 10 million in the vault dedicated to home loans. If after making 10 1 million dollar loans, the bank has no more money to lend. Instead of selling the loan, the bank would recover its money by collecting principal interest payments each month, but that can take a long, long time to recover the issued funds.nbsp;

Instead, banks and mortgage companies in general operate from a standing line of credit. This process keeps the lender in the lending business and provides much needed liquidity in the secondary markets. The secondary market is where mortgages are bought and sold among various entities. Most conventional loans are sold and ultimately end up in the hands of Fannie Mae or Freddie Mac. That still doesnt mean youll send your mortgage payments to Fannie or Freddie; they just own the note. If someone sends a mortgage company to the bank, the bank acts as a servicer and collects a fee for managing the home loan for the owner of the note.

When lenders first accept a home loan application there is a fair amount of paperwork exchanged. Beyond the loan application and supporting documents such as tax returns and paycheck stubs, multiple disclosures are provided to the borrower explaining various parts of the loan process. One such part is whether the lender intends to sell the loan and provide historical information how many loans have been sold. This document is titled the Mortgage Servicing Disclosure Statement and there are different boxes to be checked stating the lender has sold 0-25, or 25-50 or even 100. Most conventional mortgages will show that most all loans generated are sold. Loans that arent sold fall into the portfolio category, so-called because the issuing lender does not intend to sell the loan but keep it in-house, or in its portfolio.nbsp;

Selling a loan doesnt affect the homeowner whatsoever, other than the monthly payments will likely be sent to a new servicer. Nothing in the loan changes and the party that buys the mortgage cannot change any aspect of the note. The terms are still hard-wired into the note, the only difference is where the monthly payments go to each month. So, when someone receives a goodbye letter, it just means someone else bought the outstanding mortgage.

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June Real Estate Roundup

Freddie Macs results of its Primary Mortgage Market Survey shows that "After the Great Recession, it took more than ten years for purchase demand to rebound to pre-recession levels, but in this crisis, it took less than ten weeks. The rebound in purchase demand partly reflects deferred sales as well as continued interest from prospective buyers looking to take advantage of the low mortgage rate environment."

30-year fixed-rate mortgage FRM averaged 3.13 percent with an average 0.8 points for the week ending June 25, 2020, down from last month when it averaged 3.15 percent. A year ago, at this time, the 30-year FRM averaged 3.73 percent.

15-year FRM this week averaged 2.59 percent with an average 0.8 points, down from last month when it also averaged 2.62 percent. A year ago, at this time, the 15-year FRM averaged 3.16 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage ARM averaged 3.08 percent this week with an average 0.5 points, down from last month when it averaged 3.13 percent. A year ago, at this time, the 5-year ARM averaged 3.39 percent.

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Solutions Solutions Solutions

Widespread acceptance of the value and practicality of working from home may have diluted the power of the long-standing real estate value mantra: location, location, location.

Significant societal change and moral reckoningnecessities for a long timeare gaining momentum and will work toward resolution. In the meantime, many real estate owners and wannabes need solutions now for weathering the pandemic and >

In these unsettling and unprecedented times, solutions matter. Homeowners, home buyers, and real estate investors value real estate solutionssolutions to real estate issues and real-estate-based solutions to a variety of other problems.nbsp;nbsp;

Effective forward thinking hinges on ingenious, individualized real estate solutions:

1. Safety and Convenience:

During the pandemic, consumers isolate at home. Home substitutes for the workplace and everything else. Visiting malls and grocery stores was transformed into online shopping, coupled with home delivery or curbside pickup. Post-pandemic, many will continue to let their fingers do the tapping from home rather than returning to retail aisles or work cubicles. How many aspects of real estate will remain online?

The variety of pandemic online shopping options has blossomed. Competition is stiff. Consumers abandon online shopping carts and head to the e-competition whenever a purchasing process is confusing, slow, tedious, or boring. With more real estate buying and selling processes finding their way online, consumers will expect the same degree of convenience, accuracy, and speed they experience with their other online activitiesor theyll move to the competition.

Your solutions: As a real estate professional, how have you redesigned your and your brokerage buyer-and-seller experiences to remove hassles and distractions? How do you ensure social distancing, video touring, virtual meetings, and other safety measures are efficient and effective without compromising speed and convenience?

2. Buyer Life>

Shift your marketing and promotion from dream home to home solution to weather these and future uncertain times. You know the types of financial and life>

A multiple-unit income property may provide a buyer with financial security if their employment becomes unstable or ends.
An income-generating home could provide top-up income or emergency financial backup if it were practical to take in boarders, operate an airbnb, or rent out a self-contained suite as needed.
A work-live space may provide security for small business owners or entrepreneurs.
A secondary suite or second home could also allow homeowners life>

Your solutions: What real estate solutions would properties in your area offer buyers who want to be prepared for uncertainties ahead and to benefit from a more secure life>

3. Seller Future Solutions:

Isolation issues that have arisen during the pandemic have revealed how practical multigenerational living can be. Separate living areas for different generations with communal areas for recreation and dining can make it easy to pool resources so real estate is more affordable for all:

If a suite or second house cannot be added to the current real estate, property owners may welcome the option of moving up to a larger home or property that can be shared with parents or grown children.
Some sellers may consider a move to a more natural settingperhaps in a less-expensive urban areawhich would incorporate recreational life> The persistence of virus infections in densely-inhabited urban areas may entice some city dwellers to >

Your solutions: How might the pandemic or the threat of new viral epidemics change location preferences for your target markets or within your selling territory?nbsp;nbsp;

4. Mortgage Solutions:

Mortgage rates are at historic lows, so mortgage renewal can make good financial sense and theres more

Low rates also make life> Your network of mortgage brokers and investors may also offer flexibility in arranging mortgages, especially for qualified buyers who lack traditional employment histories or who are self-employed.

Your solutions: Encouraging buyers and sellers to build flexibility into their real estate and financial plans will help them embrace solutions for future emergencies that resolve many of the problems people have faced and will during this pandemic.

5. Environmental Solutions:

Climate issues have slipped out of the headlines during the pandemic, but questions regarding environmental issues like flooding and wildfires are still significant concerns in many areas.

Your solutions: Your local knowledge will reveal areas that are less prone to natural disaster and that may offer attractive solutions for nature-conscious families. Can you impact local buying patterns by revealing value in previously-overlooked areas?

Real estate markets will be tied to the pandemic until a vaccine removes life-threatening danger:

Many with cash on-hand and/or purchasing power will take on the investor role, particularly where foreclosures climb.
Others are searching for solutions to preserve their real estate holdings in the face of economic uncertainty.
Many buyers and sellers who were intent on a real estate transaction before the pandemic hit are still keen to act, but to proceed they need solutions to the financial and life>

Is it time to reconsider the target market and selling territory you concentrated on pre-pandemic?nbsp;

Significant changes in buying power may shift who will act in spite of global uncertainty.
Some previously-preferred neighborhoods may face long-term or permanent down-grading.
How will the real estate value mantra evolve as technology and digital transformation progresses?
What dramatic changes do you see based on your local knowledge and experience?

Yesterday has disappeared. How are you redesigning your tomorrows and those of your clients?

Who will consider your real estate solutions valuable?

For more on strategic communication, visit PJs blog: Whats Your Point?nbsp;

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You Can Buy A Home For $1, And 9 Other Reasons To Chuck It All And Move To Cinquefrondi, Italy

For just about 1, you can buy a home in the Italian town, located in the rural southern region of Calabria. We know what youre thinkingisnt Italy dangerous right now?nbsp;

Actually, the country has done a great job of getting a handle on the coronavirus. And Cinquefrondi has had zero reported cases. In fact, The rural southern region of Calabria as a whole was one of the regions least affected by the coronavirus outbreak in Italy, with a >

So why should you consider a move? Let us count the ways.

The purpose

The mayor of Cinquefrondi, Michele Conia, is committed to repopulating his town. The project is so important that he named it Operation Beauty, said Departures. In fact, he remarked, "Finding new owners for the many abandoned houses we have is a key part of the Operation Beauty [mission] that I have launched to recover degraded, lost parts of town."nbsp;nbsp;

The history

Cinquefrondi carries a rich history, dating back to Ancient Greece, said Greek Reporter. Its residents call themselves the Last Greeks and one can hear Ancient Greek words in their regional dialect. The town was a strategic outpost during the Greek expansion in the 8th and 7th centuries BC. Ruins of Greek fortresses and a strategic ancient Greek road built to connect the two seas are a remaining testament to that fact. One of the area landmarks, thenbsp;Aspromonte National Park, with its trekking paths across dry riverbeds, has its name from both Greek and Italian, literally meaning white mountain aspro in Greek and monte in Italian.

Youll get to tap into that Under the Tuscan Sun fantasy

Come onhavent you secretly wanted to move to Italy and restore a forgotten old space? You can buy one here for less than a cup of coffee.nbsp;

The houses currently being offered once belonged to farmers, shepherds, artisans and tanners, said Il Globo. Theres currently about a dozen available, but there are potentially more than 50 empty dwellings that Conia plans to hand over to new owners.

It wont cost a lot

Beyond the almost-nonexistent purchase price, there are, of course, those renovation costs. And when you see the pics of the available properties, with their crumbling facades, you might shudder. But the Mayor predicts that, with the small size of the available homes, the reno costs will be low.nbsp;Renovations shouldnt cost too much, though, as the homes on offer are quite small, at around 40 square meters about 430 square feet, said Greek Reporter. The mayor estimates that the costs will be between 10,000 and 20,000.

The beauty

The town is ensconced in rolling hills and surrounded by the picturesque Aspromonte National Park. And did we mention it looks out over both the Ionian and Tyrrhenian coasts and is just 15 minutes to the beach. Check out the towns Instagram for more beauty shots.

Its remote

Real estate searches in remote locales are way up as a social distance tool. Now this is the way to do remote

The town

Cinquefrondi is a charming old town in the toe of Italys boot, full of olive groves and arched alleys and ruins of Greek fortresses and pastel-hued homes. The town has recently undergone several infrastructure improvements. Roads, piazzas, old fountains, public parks and even a church have been neatly restored and painted in rainbow colors, said CNN. One renovated district known as the Future Hamlet now hosts social and cultural events, while a symbolic staircase of rights is there to remind visitors that locals have embraced the rule of law in a land often plagued by criminality and banditry.

However, despite the scenic natural surroundings, Cinquefrondis urban scenery is scarred by ramshackle dwellings, he told them. "We rise between the refreshing hills and two warm seas, a pristine river runs nearby and the beaches are just 15 minutes away by car. But a whole district of my town lies abandoned, with empty houses that are also unstable and risky."

You can see the properties that are currently available here.nbsp;

The food

The pizza. The pasta. The passion. You can; go wrong with Italian food no matter where you are. The Calabrian area of Italy is known for its great produce, fresh seafood, and abundant. Red wine. CNN calls is a foodie paradise. Among Cinquefrondis top gourmet specialties are spicy, reddish nduja salami made with tonnes of chili pepper, soppressata cold dry sausage with huge bits of lard and a special kind of pasta called struncatura made with the leftovers of wheat and flour served with olives, grated bread and anchovies. Desserts incude zeppole doughnuts made with potatoes and sugar, and handmade twisted nacatole biscuits. Mangia Mangia

Duh, its. Italy.nbsp;

Need we say more?

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When It Comes To Real Estate, Does Size Matter?

Think in terms of usable space, not square footage

You may have 3,000 square feet in your mind as your desired space. But whats really important is how that space is used. It might turn out that 3,000 square feet is too expensive. But even if its not, whats the layout like? Are there a bunch of unusable rooms? Maybe there are too many bedrooms at the expense of the living space. And you probably dont want to spend all your time cleaning rooms you dont even use?

You might be surprised to discover that the 1,800-square-foot new build is planned far better than the 2,600-square-foot older home, and that the open layout and use of space makes the house feel even bigger.

Then again

Think about the future

Are you just married? You might think a starter home with just a couple of bedrooms is all you need. But are you planning on having kids soon: It might behoove you to get a house thats ready for babies instead of thinking that you can move up in a couple of years.

Maybe youre an established family with a couple of kids who think a three-bedroom place would be perfect. But are you getting to the stage where you might have grandparents moving in or an older child returning to the roost? Perhaps an extra room is worth paying for.

Ask yourself what you really want

Its time to ask yourself some hard questions. Do you ever need alone time? Want a room you can go into and close the door to read a book? Do you need a man cave or a room you can use as a home theater?nbsp;

How about a dedicated home office or a guestroom? Determining your must-haves can help you decide how much house you want. Now its just a matter of seeing if you can afford it.

Speaking of

How much money is too much?

Its human nature to want as much as we can get. But can you really pay for it? Before you commit yourself to a larger home that comes with a larger payment, do some hard thinking about what you can comfortably afford. You dont want to bite off more than you can chew.

Consider the state of the world

For the past several years, the trend among many luxury homebuyers in the U.S. has been clear: bigger isnt necessarily better, said Realtor.com. As with so many other aspects of day-to-day life, the coronavirus pandemic has turned all that on its head. Preferences vary by price range and region, but buyers in every market are eyeing extra space. Versions of this trend are playing out in markets all over the U.S., making it an opportune moment for sellers looking to unload extra acreage, and a time for interested buyers to move quickly.

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Frequency of Recency in HOAs

This kind of thinking can be pervasive in the homeowner association environment.

In the heat of discussion, the most recent hot topic can loom large and perspective can be lost. Recency causes skewed decision making driven by passion. How does this phenomena manifest itself?

Consider the enactment of a rule designed to control the scofflaws. An example is the guy that has five vehicles and only one parking place. After repeated notices to thin out his car collection, the board decides to take radical action, enact a no-nonsense tow on sight rule. This approach, however, also applies to occasional offenders and guests. The towing policy is not necessarily a bad one, but needs to be approached with reason.

When it comes to rule making, rules need to be widely applicable. They should never be enacted to control the few. The few, frankly, could care less. When a narrow rule is enacted, the many that generally live in harmony with their neighbors are netted with the few that dont. This is a bad mix and is bound to create ill will or inconsistent enforcement of the rule.

Consider collections when they involve a habitual trouble maker. The board may react with "last straw" will and enact an iron clad collection policy punctuated by a foreclosure option. The manifestation of "recency" thinking again affects all members, including those that have a legitimate excuse for their delinquency job loss, disability, etc.. Bottom line: The board needs to be careful in its "one size fits all" rules and policies.

Consider reacting to a members bullying at a board meeting. One of the great advantages of a meeting agenda composed in advance is that the board is given the opportunity to reflect on upcoming discussions, even if theyre controversial. If member concerns are required to be on the agenda to get board action, impromptu tirades can be deflected to a future board meeting. In truth, tirade passion usually dwindles over time and the board ra>

Consider reaction to rumors. This is the most insidious recency of all because it is accomplished by stealth. If the accuser is confronted, they simply deny they said it or claim what was said was distorted or exaggerated. Trying to defend against rumors is like trying to catch the wind. Its at its worst when the rumor mill is churned by a board member who is privy to board discussions and philosophy. While the best approach is to try to ignore such undermining, its also good to confront directly and demand change.

When recent events stir the body politic, its usually time to put the matter on the slow track. Time heals all wounds and moderates hysteria of the moment. If the discussion takes on a personal aspect like, "You worthless ... ", its time to adjourn to another time and place so that reason, and not recency, prevails. There are few issues in an HOA that require immediate board action. When the effects of recency begin to taint board thinking, shake them off and slow down.

For more on Policy Making, see Regenesis.net .

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Don’t Want To Go To A Hotel: Bring The Hotel Bed Home With You

Westin

If youve slept in a Westin hotel room, you know how comfy their Heavenly Bed is. You can order the mattress and box spring, and all the accessories, to create this wonderland at home.nbsp;

Bed: 995 for a twin to 2,395 for California King

Details: 13-inch mattress with plush, pillow-top construction; choice of standard or low-profile box springnbsp;

Extras: Mattress pad, feather pillows, white stripe sheets sets, and a variety of other accoutrements also available.

Sheraton

Get thenbsp;Sheraton Sleep Experiencenbsp;for "a whole new level of comfort."nbsp;

Bed: 995 for a twin to 2,295 for California King

Details: The 13-inch plush mattress has pillow-top construction and is available in your choice of standard or low-profile box spring.nbsp;

Extras: Upgrade to the Signature Bed and Bedding Set to deck out the bed, priced from 2,826 to 3,8 or the Deluxe Bed and Bedding Set, which includes cotton sateen sheets and pillowcases and is curated with everything you need for luxurious sleeptop off your bed with four hotel pillows, a down alternative comforter and duvet cover, and our signature diamond down blanket, for 2,916 to 3,891.

Four Seasons

Everything about a stay at the Four Seasons is luxurious, and you can bring the experience home with you.nbsp;

Bed: Priced from 1,949 to 3,999.

Details: Available in three >

Extras: You can also purchase a replacement zippered firm mattress topper, priced from 549 to 649.

Hilton

Bring home the Serta bed that puts you right to sleep when you stay at Hilton hotels.nbsp;nbsp;

Bed: The Hilton Mattress and Box Spring is priced from 1,195 to 1,995.nbsp;

Details: Manufactured by Serta, this bed offers extra coil support and a plush top on both sides.

Extras: Upgrade to the Hotel Stripe Bed and Bedding Set for 2,698 to 3,446 or Cotton Bed and Bedding Set for 3,046 to 3,566.

Marriott

Marriots innerspring bed is a travelers favorite. And you can live it up every night.nbsp;

Bed: Mattress and box spring sets ranges from 1,3450 to 1,825.

Details: This 12-inch mattress comes with either a standard or low-profile box spring. Extras: Five different bedding sets are available, which can raise the price to as much as 2,937.

W Hotel

Bring the luxurious slumber of the W Hotel into your bedroom.

Bed: Choose the plush Pillowtop mattress or firmer Euro Top mattress for 1,299 to 2,120.

Details: Each mattress measures 13 with a standard of low-profile box spring.

Extras: Add a luxe bedding set, which brings the price to 3,066 to 3,797. The W Hotel bed collection also includes several platform beds to house your new mattress.

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Your Ultimate Guide to Kitchen Backsplash Materials

Tilesnbsp;

You have a few options when it comes to the type of tile you choose, ceramic, glass, or natural stone. Tile is a popular choice because its impermeable and does a great job of protecting the wall. Its also easy to keep clean.

To know what type of tile you should use, you need to consider the >

White ceramic tile can look great in both modern and retro-inspired kitchens.nbsp;Natural stone in marble can give your kitchen a luxurious feel. Glass can add a bright and funky feel.nbsp;

Glass

Instead of using glass tile, you could use a large sheet of tempered glass. This works great for adding protected lighting above your stove. It also allows you to use any wallpaper or paint you wish behind the glass.nbsp;

Chalkboard Paintnbsp;

A low cost and creative option is to paint your backsplash area with chalkboard paint. You can do this yourself as an easy DIY project. You can write notes, menu ideas, or create a shopping list thats easily seen.nbsp;

When youre ready for a clean slate, all you have to do is wipe it clean. One downside, though, is that the black paint may close your kitchen in and make it feel smaller.nbsp;

Mirror

If your kitchen is on the smaller side, then using a mirror as a backsplash can open up the space. They will reflect the light and make it bounce around the room. The more light, the more inviting the space.nbsp;

The surface of the mirror will be easy to clean, though it will end up taking more effort to keep clean as any little bit of grease or dirt will show.nbsp;

Wallpapernbsp;

This material provides you with a fast any easy option but not the greatest amount of protection. You also need to think about how moisture will affect the wallpaper and cause it to peel.nbsp;

Stainless Steelnbsp;

Lining your backsplash with stainless steel will give it a modern feel and tie all of your stainless steel appliances together. Its ideal because its durable, easy to clean, and resistant to high temperatures.nbsp;

Just be careful with acidic foods. The acid will ruin the finish if not immediately cleaned.nbsp;

Choose From These Backsplash Materials

Consider one of thesenbsp;backsplash materials for your kitchen. Think about the amount of cooking you do and the level of durability and protection you need.nbsp;

Some materials such as chalkboard paint or wallpaper you can apply yourself. Others, such as tile, marble, and stainless steel are best left to the professionals.nbsp;

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What Rooms to Focus on When Flipping a House For Cheap

Create a Multifunctional Spare Room

Many homes today have a spare room that tends to be slightly smaller than the others. In older homes, this room might have once been used as a sitting room to visit with guests. Newer homes often advertise this room as an office. Since the room is smaller, it is easy to do a fast renovation such as adding a fresh coat of paint. You can also upgrade the windows and add a decorative door that allows it to be used for anything from a home office to a kids playroom.

Cook Up a Sale with a Gorgeous Kitchen

Todays modern open floor plans make it impossible to hide a poorly designed kitchen. In most cases, you can expect that the kitchen will be one of the first things that buyers will ask to see. Even when a kitchen is hidden from public view, buyers want to know that theyll have a comfortable place to prepare meals and gather with their friends. Kitchen remodeling is a must for any time that you are flipping a house. Upgraded countertops, cabinets and floors go a long way toward getting people interested in your house.

Dazzle Buyers with a Stunning Master Bathroom

The master bathroom falls close to the kitchen when it comes to areas that people notice. Check out the hottest bathroom trends before you plan a remodel, and try to incorporate a few into your plans. Adding double sinks or a soaking tub will have buyers imagining themselves >

There is an art to making money as a house flipper. Learning where to save on costs and when to invest is as simple as understanding the preferences of the average buyer. When you think about it, it just makes sense to spruce up the areas of a house where people spend the most time. Choosing to upgrade a kitchen or bathroom may require a little extra work, but it can pay off by giving you a much higher profit margin in the end.

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Unique Ways To Finance Your Home And Save Money

With some due diligence and research, you may find you have other ways of helping pay for your home that you would have never thought of before. There are companies who offer customers flexible financing options that will work for your budget. Below are some alternative ways to finance your home and save money on utilities.

Ask Family For Helpnbsp;

If you are not wanting to ask a bank for a loan, maybe you have family who could help you out instead. Many first-time home buyers choose to ask their parents for a loan when purchasing their first home. If your parents are financially in a position to offer you money, it should be considered. Be sure to have all of the agreed-upon terms written down and signed.nbsp;

Seller Financing

In some cases, it may make more sense to find a home where the seller is offering to finance the buyer. This typically happens when the seller is having trouble getting their home sold. While this is not typically the best deal for sellers, it can offer a lot of benefits to a buyer. You may find yourself able to close much faster than with a mortgage from a traditional bank. Typically, the downside to this type of deal is having to pay higher interest rates. This will allow the seller to make up for the risk of financing the mortgage themselves.nbsp;

Rent-To-Own

Another popular option for financing a new home is a rent-to-own program. These programs are very straightforward and allow prospective home buyers to rent a home theyre interested in for a specified amount of time. Once your time is up, you will be able to choose whether or not you want to buy the home. The downside to this type of program is that the payment is often higher than typical home prices in the area.

If you choose not to buy the home, the money you paid will not be given back. However, if you choose to buy the home after the rental time is over, the money you spent on rent will be applied toward the final purchase price of the home. This deal works best for someone looking to buy a home within the next few years and they are unable to come up with a down payment at the time. It is also perfect for people who are working on raising their credit score to get approved for a low-interest mortgage.

FHA Financing

An FHA loan is insured through the Federal Housing Administration. This allows lenders the ability to offer home buyers better deals with low down payments, easy credit qualifications and lower closing costs. If youre looking to buy a home when are low on cash and have a bad credit score, an FHA loan is a good option to consider, especially if you are a first-time home buyer. If you consider this type of loan, you will be limited to purchasing properties that are FHA approved and will be required to purchase mortgage insurance.

Solar Loansnbsp;

Once you purchase your home and find a way to finance it, you should always be on the lookout for ways to save money and afford your rent. A solar loan is a great option to consider if you are interested in solar energy. These types of loans can be secured against your home. Once the solar panels are installed, the money you save on your electricity can be used towards your mortgage payment.

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Looking To Flip? Don’t Do It Without These Tips

Dont expect to be in an out in a week

According to the recent ATTOM Data Solutions first-quarter 2020 U.S.nbsp;Home Flipping Report, Home flippers who sold homes in the first quarter of 2020 took an average of 174 days to complete a flip, up from an average of 169 in the fourth quarter of 2019 but down from 180 days in the first quarter of last year.

Will it take you that long? Maybe, maybe not. It depends on a whole lot of factors, like the condition of your home, how much work needs to get done, and how fast you can make it all happen. You may think you can turn it around in a month, and you may be right. Then again, that 174 days may look like nothing by the time youre done. The trick is to be realistic, and even to overestimate the time it will take to get any permits, do any needed repairs, get your inspections, and get the home soldespecially if you have an investor who is expecting to be paid back quickly.

And keep in mind that, The longer it takes you to flip a house, the more youll pay in carrying costs, which include utilities, financing, and property taxes, said Lending Home.

Make sure you have enough money

According to Fit Small Business, Costs vary based on where the home is located, property type, and the extent of the renovations needed, but the total cost to flip a house is usually around 10 of the purchase price.

But that doesnt mean your flip will come in right at 10. If you dont have a proper contingency fund, anything that goes wrong could put you over budget and sink any potential profit.nbsp;

Take down that wall at your own risk

Yes, it will open up the space and make it look lighter, brighter, and larger. And yes, youll probably also find horrible plumbing issues or faulty electricity or the need for a 10,000 beam to support the structure as soon as you do. Opening up the floorplan of an older home to make it more attractive to todays homebuyers is a great idea, as long as youre prepared for the potential problems.

Consider bringing in a partner

Want to flip homes but dont have the money for a down paymentor the credit to swing a loan? Many a flipper starts out in a partnership with someone who puts up the cash and splits the profit after the property sells. This is especially useful if you plan to buy homes at auction and need a lot of money upfront.

Start small

Buying a homenbsp;that just needs some cosmetic repairs and some TLC can drastically improve your return on investment, said Lending Home. New investors can learn as they go by starting with a home that just needs a little love, and work their way up to homes that need significant repairs.

Learn some trades

Is your intention to do all the repair and renovation work yourself on your flips? Be sure to prepare ahead of time. You dont want to be learning on the job with money on the line.nbsp;

Put together a team in advance

If youre planning to have others make the fixes, locate and hire them before you close escrow. Time is money.

Dont overpay

If youre eager to start your first flip, you might jump at a listing that costs more than it shouldat least where your profit margin is concerned. This can be especially true if you go to an auction and get caught up in the frenzy. Its important to set a limitand stick to itbased on what you can legitimately afford, and your expectations for your profit margin.

If youre not sure how to set your profit margin, consider the 70 percent rule.

The 70 percent rule states that an investor should pay 70 percent of the ARV of a property minus the repairs needed, said Invest Four More. The ARV is the after repaired value and is what a home is worth after it is fully repaired.

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HOA Powder Problem

Several conditions must occur for efflorescence to appear. The soluble salts must be present in the bricks, mortar, or transported by water into the masonry from another source. There must be sufficient water to carry the salts in solution to the surface of the masonry. Then, evaporation causes the salts to come out of solution and be left behind as the salt deposits.

Soluble salts come from many elements or minerals found in the materials from which bricks and mortar are made. The sand used in mortar can have significant quantities of soluble salts. To reduce the efflorescence effect in mortar, experienced masons use only washed sand, which reduces the soluble salt content. But even with careful selection of materials, soluble salts can also be present in the soil behind a wall or in the water used to mix the mortar.

Efflorescence will often stop on its own when the supply of soluble salt in the bricks or mortar becomes exhausted. It can also stop if the source of water which dissolves the soluble salts is cut off. The process can also stop if the water in which the salts are dissolved is prevented from getting to the surface of the masonry. However, if a wall is used for retaining purposes, the process is impossible to stop unless the back side of the wall is waterproofed to prevent water intrusion.

There are several options to remove the deposits, which include using a stiff brush followed by flushing with water. However, this process can sometimes dissolve the salts and cause them to soak back into the wall. Using a weak solution of muriatic acid on some types of salts sometimes works, however, acid solutions can cause severe burns to skin and eyes. This should only be attempted by experienced contractors.

Homeowner associations deal with a variety of building maintenance issues. This is one that should be included on the To Do List. For step-by-step instructions how to stop water from getting into and behind brick, block or stone walls, see the Sealing Masonry Ebook .

For more on Maintenance Issues, see Regenesis.net .

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Buyer Beware: What You Need To Know About Warranty Companies

We were, frankly, pleasantly surprised by how easy the process was and also chalked it up to financial karma for having paid 60 every month for the last six years just to have the peace of mind of a warranty, plus 75 for each service call.nbsp;

Those calls were few and far between, save for an annual air-conditioning issue and the occasional other appliance/plumbing concern. To our very unpleasant surprise, the company canceled our existing deal when our contract ended. Apparently, we had made too many service calls. This was, of course, code for We had to replace your refrigerator and we need our 2,000 back.

We were invited to reinstate our coveragefor 2 times what we had been paying per month.

Welcome to the world of home warranties.nbsp;

The truth is, we had minimal problems in the six years leading up to our refrigerator replacement. The tradespeople were generally fine, the service was as expected, and the fixes were typically timely. Being dumped by our company and having to scramble for new coverage wasnt fun, but it definitely wasnt the worst that can happen with home warranties. If youve bought a new home and are considering whether you should renew your warranty after your initial period is over, or are buying/have bought an older home and are mulling a warranty, here are a few things to think about.

The cost

For many people, the fact that they can pay a small amount every month that protects them against a potentially huge expense like an air conditioning issue, provides peace of mind. But ask yourself this: Are you better off putting that 60 or so in an interest-bearing account and saving for a what-if?

Also, just because you have coverage doesnt mean everything will be taken care of by the company. Some problems wont be covered by the warranty, whether because the homeowner didnt purchase coverage for that item or because the warranty company doesnt offer coverage for that item, said Investopedia. Also, home warranties usually dont cover components that havent been properly maintained. Furthermore, if the warranty company denies a claim, the homeowner will still have to pay the service fee and will also be responsible for repair costs. In addition, warranties have numerous exclusions, as well as dollar limits per repair and per year.

The coverage

Many companies have tiered offerings and the lowest tier is just basic coverage. The cost of a home warranty ranges from 350 to 600 a yearmore if you want enhanced coverage for such things as washers and dryers, pools and septic systems, said Bankrate. In addition to the annual premium, expect to pay a fee for service callsanywhere from 50 to 125, depending on the type of contract you purchase.

The rules

Your ba>

Most major home warranty providers include air conditioning as one of their covered systems. In most cases, a home warranty company is going to do everything it can to repair an AC system before replacing it, said Consumer Affairs. Be sure to check your contract for fine print on what AC components may or may not be covered. Also check for the maximum coverage limit listed in your contract for AC units. Remember, you will be responsible for paying for any cost above this dollar amount if your AC needs to be replaced. If you know your home is at risk of needing repairs or replacement of costly items like an AC unit, its worth it to look for a provider that has a generous per item coverage limit.

Other options

Ask a friend, or give it a Google search and youll find lots of tales about frustrated and irritated homeowners ranging to horror stories about their home warranties. Ultimately, the choice is yours when it comes to opting for oneor not.

There are some other options you might want to explore before locking yourself into a contract. Before buying a home warranty, learn what coverage you may already have, said Money Talk News. For example, if youre buying a newly built home, know that: The home appliances and systems typically have one-year warranties. Most states require builders to warranty the homes structural elements for up to 10 years. Also, when you buy new furnishings and appliances, use a credit card that extends the products warranty. That can add as much as an extra year of protection.

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What You Need To Do About Refinancing Today

It might take a while

If youve refinanced before, you may have been able to wrap up in 21 or 28 days. And you still might. Or it could take you a bit longer. According to The Mortgage Reports, refis were taking between 35 and 45 days last year, and the glut of new loans is putting a strain on the system, thereby causing delays.nbsp;

Rates may fluctuate

Rates as of this moment we are at historic lows. Could they go lower? Its possible. Could they rise? Thats also within the realm of possibility. Talk to your lender about when and if you should lock your rate.

A lock-in or rate lock on a mortgage loan means that your interest rate wont change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application, said the Consumer Finance Protection Bureau CFPB. Mortgage interest rates can change daily, sometimes hourly. If your interest rate is locked, your rate wont change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer. If your rate is not locked, it can change at any time.

You might not get the lowest ratenbsp;

Those sub-3 rates youre hearing about may not be available to you. Theyre reserved for those with the best credit. If you dont have at least a 700 score, dont expect to get that kind of rate without a buydown.

You might need an appraisal

Then again, you might not. It all depends on the type of loan youre getting. If youre refinancing from one FHA loan to another, youll probably only need an exterior appraisal. In this case, an appraiser will come and measure and take pictures of the outside of your home only.nbsp;

But, if youre refinancing out of an FHA loan into a conventional loan, for example, you can expect to have an appraiser td a thorough examination of the interior of your home, too. If youre doing a streamline refi, you likely wont need an appraisal at all.

You might get money back

Doing a cash-out refi isnt the only way to get some money out of your home. Talk to your lender about when to close so you get some money back. With our recent refinance, we closed at the end of the month and were able to skip two payments. We also had our existing escrow account credited back to us. That was about an 8000 swing.

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Forbearance: Tread Lightly

A forbearance is a formal agreement between the lender and the borrower. Borrowers cant decide to take a mortgage payment holiday on their own. Doing so would start the foreclosure clock ticking. And lenders are loathe to foreclose. Its the very last thing on their list when trying to work with struggling homeowners. Lenders have employees whose sole job is to provide workout solutions for those having problems making the mortgage payment.nbsp;

A forbearance agreement can be arranged if the borrowers meet certain standards such as documenting their situation as well as the lender seeing there is light at the end of the financial tunnel. If both can be met, a forbearance may be an option. Such an agreement will allow the borrowers to suspend the monthly mortgage payment for a specific period. Yet with a forbearance, the payments dont go away, they payments accrue during the forbearance period. If the mortgage payment is 2,500 and the agreed upon period is for six months, that means at the end of six months, not only will payments resume but theres a 15,000 bill that comes due. Thats the tough part. If someone is having difficulty paying 2,500 where will the 15,000 come from? There are other options such as a Loan Modification that can help and recent changes to agency guidelines may arrange for the past due amounts be added back to the existing mortgage.

Another major consideration with a forbearance agreement is the hit credit reports and credit scores take. On the credit report, late payments will be listed. Late payments on a mortgage does most of the damage to credit scores. Further, if a forbearance agreement is executed, that too will be listed on the credit report. While the borrowers get a breather on making the monthly payment, the credit report will list the forbearance filing. And, at the same time, many lenders who see a forbearance listed on a credit report wont approve a new loan, be it for a purchase or a refinance for up to a year. Or even longer, its enti>

Deciding whether or not to ask for a forbearance agreement should be made alongside your loan officer or financial professional. There are consequences of such a filing that many may not know about. Yes, there is a payment reprieve and foreclosure is avoided, but the filing will negatively impact a credit report. There can be other options available for struggling homeowners. This isnt something to do on your own volition. Theres a lot more help out there than you might think.

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Resuming Work and Working to a Definite Resolution

The need has added importance as we transition from quarantine to trying to improve the quality of life of our fellow citizens. The need is urgent because lawyers are oftentimes intermediaries between the real estate industry and insurers.

According to Justin Daily of Daily
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Why Two-Toned Kitchens Are a Growing Design Trend

Instead, you have a slew of options when it comes to cabinet design and storage. You might swap upper cabinets for open shelving, for instance. You could pop one set of hardware on top cabinets and another unique option for lower cabinets. Or, grab a paintbrush and paint them two different colors.nbsp;

Two-toned cabinetry has become a huge trend, mainly because they look great. Heres why you should consider transforming your kitchen with a few coats of paint on a select few cabinets:nbsp;

Whats a Two-Toned Kitchen?nbsp;

You can probably picture what a two-toned kitchen looks like simply, you paint some cabinets in one color and a handful of others in a different hue. Designers divide up the space in multiple ways. Sometimes, for instance, theyll paint the island a bolder or more saturated color. Then, theyll brush a neutral tone on the rest of the cabinets. Or, you cannbsp;try painting upper cabinetsnbsp;one shade, and lower cabinets in another.nbsp;

Sometimes, the two-toned >

Why Should I Paint My Cabinets This Way?nbsp;

A two-toned kitchen design makes your space stand out, but there are more reasons to choose two different cabinet colors for your space. Here are a few more reasons why its a good idea:nbsp;

Two Tones Create Contrast

You dont want your kitchen blending together. Cabinets, countertops, walls and flooring that all come in similar shades wont make much of a statement. Instead, your homes culinary centerpiece will just appear a bit dull or run-of-the-mill.nbsp;

If you mix it up by, say, painting the island a darker hue than the rest, though, you will create just enough contrast to make your kitchen pop. And, since contrast is one ofnbsp;the biggest trends in kitchen designnbsp;right now, your two-tone cabinets can make things fresh and modern, too.nbsp;

Two Tones Draw the Eye to a Design Highlight

Some designers use two-tone cabinets to draw the eye to a design feature that they want to showcase. For example, lets say youve chosen a different countertop material for your island. It might not stand out enough on its own, but placing it on a lighter or darker cabinet than the rest of the kitchen will say, "Look here." Then, everyone will notice the stunning stone atop the painted wooden base.nbsp;

On that note, painted upper cabinets can draw the eye upward to accentuate the height of the room. Or, if you have a large kitchen, painted cabinets at the back can highlight the depth. Painted uppers can flaunt a unique light fixture, pot rack or skylight, as well.nbsp;

Two Tones Exude a Modern but >

You dont have to change anything about your kitchen except the paint, and youll instantly have a space thats up to date. Thats because the two-tone conceptnbsp;works with any design >

If youre looking for a quick way to breathe new life into your kitchen, then try two-toned cabinets before helming a full reno. It can be a quick weekend overhaul, and it doesnt break the bank. After a few days, youll have a space that feels completely different.nbsp;

The Two-Toned Cabinet Effect

If youre looking for a way to spruce up your kitchen, look no further than your cabinet colors. Sure, a two-toned look is trending, but its a fresh coat of paint is a >
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Here Are All the Tools You Need for Laying Tile Like a Pro

Laying tile like a pro does require some special equipment though. Youll want to make sure youre prepared with the following tools to make your tiling job look professional.nbsp;

1. Rubber Buckets

Sure, you could use a plastic bucket for your mortar, but a rubber bucket is much easier to clean. Even if the mortar dries, you will get a rubber bucket clean much easier than a plastic bucket.

2. Mortar Mixer

A mortar mixer will properly mix your mortar and ensure that no air is trapped in the mortar, which could decrease its strength. Mixers can also be used to mixnbsp;other adhesives, resins, and paints. Be sure you use the right size paddle for the amount of mortar mix being used.nbsp;nbsp;

3. Trowels

Trowels are used to apply the mortar that will adhere the tiles to your surface.nbsp;Choose the right size of trowel so you get proper coverage and also pay attention to the shape. U-notched and square-notched trowels are two common types, so its important to have both on hand.nbsp;

4. Manual Tile Cutter

A manual tile cutter allows you to cut with just one hand and makes precise and clean cuts. Manual cutters are light and easy to carry and are what you want when you are working with glass mosaic tile in particular, as it wont affect the quality of the glass surface.

Look for a cutter that has different cutting measurements and you should also consider a double guide cutter.nbsp;nbsp;

5. Tile Saw

If you want to make precise cuts on your tile and make sure they all fit together perfectly, an electric tile saw is what you need. This guide has more information on choosing the right workforce tile saw.nbsp;

6. Tile Spacers

Tile spacers allow you to get perfect spacing between each of your tiles. 2mm tile spacers are the most commonly recommended, but the size you need will depend on your tile and what you are tiling. Make sure your spacing is precise and dont >

7. Tile Levelingnbsp;Kit

A tile levelling kit helps ensure that the tiles are all installed at the same height and are level. These kits also include tile nippers, which help you distribute the weight of the tile and make sure that it is level when it adheres to the mortar.nbsp;

8. Grout Floats

Last but not least is a grout float. Without grout, your tile project will appear unfinished. The grout will fill in the spaces between the tiles and locks them together. The grout float is the tool used to apply the grout to your tiles. Some are meant to get to hard to reach areas like corners and others are better for spreading grout on a larger area. Its worth it to have multiple floats for different purposes.

Laying Tile Like a Pro

Once you have all of these tools, youll be laying tile like a pro in no time. The right tools often make all the difference in making the project go smoothly and resulting in satisfaction with your work.nbsp;

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